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Non-numerical and social anchoring in consumer-generated ratings

Author

Listed:
  • Yigit Oezcelik
  • Michel Tolksdorf

Abstract

Inaccurate online ratings can be harmful to both consumers and firms. We perform an experiment to assess the effect of the anchoring bias on consumer ratings. Our rating task is a framed variation of the slider task. We diverge from the literature by implementing non-numerical (visual) anchors. We compare three anchoring conditions, with either high, low, or socially derived anchors present, against two control conditions – one without anchors and an unframed slider task. High and socially derived anchors lead to significant overrating compared to both control conditions. We find no difference between low anchors and the control condition without anchors, whereas both exhibit overrating compared with the unframed slider task. Participants place higher trust in socially derived anchors compared with high and low anchors. When there is a social context, the trust participants exhibit towards the socially derived anchors explains the anchoring bias.

Suggested Citation

  • Yigit Oezcelik & Michel Tolksdorf, 2023. "Non-numerical and social anchoring in consumer-generated ratings," Working Papers 202319, University of Liverpool, Department of Economics.
    • Handle: RePEc:liv:livedp:202319
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    References listed on IDEAS

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    More about this item

    Keywords

    Anchoring; online ratings; laboratory experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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