The Effect of Word of Mouth on Sales: Online Book Reviews
AbstractWe examine the effect of consumer reviews on relative sales of books on Amazon.com and BarnesandNoble.com. We find that 1) reviews are overwhelmingly positive at both sites, but there are more reviews and longer reviews at Amazon.com, 2) an improvement in a book's reviews leads to an increase in relative sales at that site, and 3) the impact of 1-star reviews is greater than the impact of 5-star reviews. The results suggest that new forms of customer communication on the Internet have an important impact on customer behavior.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10148.
Date of creation: Dec 2003
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Publication status: published as Chevalier, Judith and Dina Mayzlin. “The Effect of Word of Mouth on Sales: Online Book Reviews." Journal of Marketing Research (August 2006).
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- Dina Mayzlin & Judith A. Chevalier, 2003. "The Effect of Word of Mouth on Sales: Online Book Reviews," Yale School of Management Working Papers ysm413, Yale School of Management.
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L8 - Industrial Organization - - Industry Studies: Services
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-12-07 (All new papers)
- NEP-COM-2003-12-07 (Industrial Competition)
- NEP-NET-2003-12-07 (Network Economics)
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