IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v68y2022ics0969698922001096.html
   My bibliography  Save this article

The impact of customer-generated evaluation information on sales in online platform-based markets

Author

Listed:
  • Kim, Da Yeon
  • Kim, Sang Yong

Abstract

As the online platform-based market expands, research into the impact of consumer-accessible information in this market on performance has received significant attention in recent years. In this study, we focus on customer-generated evaluation information (CGEI). The purpose of this study is to demonstrate the effect of CGEI—both quantitative (i.e., star rating, star rating volume) and qualitative (i.e., customer review content) aspects—on actual sales in an online platform-based market. We analyze the regression of quantitative GCEI on sales and for qualitative GCEI we apply the Latent Dirichlet Allocation (LDA) topic modeling. We discover that star ratings do not always lead to increased sales, implying that star ratings and sales have an inverted U-shaped relationship. Furthermore, the results demonstrate that star rating volume has a positive effect on sales. We reveal that the review contents of product quality and added value have a positive effect on sales, whereas those of seller service have no effect on sales. This study provides some insight into how customer-generated information can increase actual sales in online platform-based markets.

Suggested Citation

  • Kim, Da Yeon & Kim, Sang Yong, 2022. "The impact of customer-generated evaluation information on sales in online platform-based markets," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:joreco:v:68:y:2022:i:c:s0969698922001096
    DOI: 10.1016/j.jretconser.2022.103016
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698922001096
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2022.103016?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Reinartz, Werner & Wiegand, Nico & Imschloss, Monika, 2019. "The impact of digital transformation on the retailing value chain," International Journal of Research in Marketing, Elsevier, vol. 36(3), pages 350-366.
    2. Denny, Matthew J. & Spirling, Arthur, 2018. "Text Preprocessing For Unsupervised Learning: Why It Matters, When It Misleads, And What To Do About It," Political Analysis, Cambridge University Press, vol. 26(2), pages 168-189, April.
    3. Le, Loc Tuan & Ly, Pham Thi Minh & Nguyen, Nhan Thanh & Tran, Lobel Trong Thuy, 2022. "Online reviews as a pacifying decision-making assistant," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    4. Dwivedi, Yogesh K. & Ismagilova, Elvira & Hughes, D. Laurie & Carlson, Jamie & Filieri, Raffaele & Jacobson, Jenna & Jain, Varsha & Karjaluoto, Heikki & Kefi, Hajer & Krishen, Anjala S. & Kumar, Vikra, 2021. "Setting the future of digital and social media marketing research: Perspectives and research propositions," International Journal of Information Management, Elsevier, vol. 59(C).
    5. Rettinger, David A. & Hastie, Reid, 2001. "Content Effects on Decision Making," Organizational Behavior and Human Decision Processes, Elsevier, vol. 85(2), pages 336-359, July.
    6. Guo, Junpeng & Wang, Xiaopan & Wu, Yi, 2020. "Positive emotion bias: Role of emotional content from online customer reviews in purchase decisions," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    7. Chrysanthos Dellarocas, 2003. "The Digitization of Word of Mouth: Promise and Challenges of Online Feedback Mechanisms," Management Science, INFORMS, vol. 49(10), pages 1407-1424, October.
    8. Ananth Srinivasan Kripesh & H. Mahesh Prabhu & K.V. Sriram, 2020. "An empirical study on the effect of product information and perceived usefulness on purchase intention during online shopping in India," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 21(4), pages 509-522.
    9. Ming-Hui Huang & Roland T. Rust, 2017. "Technology-driven service strategy," Journal of the Academy of Marketing Science, Springer, vol. 45(6), pages 906-924, November.
    10. Wu, Lei-Yu & Chen, Kuan-Yang & Chen, Po-Yuan & Cheng, Shu-Ling, 2014. "Perceived value, transaction cost, and repurchase-intention in online shopping: A relational exchange perspective," Journal of Business Research, Elsevier, vol. 67(1), pages 2768-2776.
    11. Matthew D. Rocklage & Derek D. Rucker & Loran F. Nordgren, 2021. "Mass-scale emotionality reveals human behaviour and marketplace success," Nature Human Behaviour, Nature, vol. 5(10), pages 1323-1329, October.
    12. Floyd, Kristopher & Freling, Ryan & Alhoqail, Saad & Cho, Hyun Young & Freling, Traci, 2014. "How Online Product Reviews Affect Retail Sales: A Meta-analysis," Journal of Retailing, Elsevier, vol. 90(2), pages 217-232.
    13. Sungsik Park & Woochoel Shin & Jinhong Xie, 2021. "The Fateful First Consumer Review," Decision Analysis, INFORMS, vol. 40(3), pages 481-507, May-June.
    14. Lurie, Nicholas H, 2004. "Decision Making in Information-Rich Environments: The Role of Information Structure," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(4), pages 473-486, March.
    15. Filieri, Raffaele, 2015. "What makes online reviews helpful? A diagnosticity-adoption framework to explain informational and normative influences in e-WOM," Journal of Business Research, Elsevier, vol. 68(6), pages 1261-1270.
    16. Chris Nosko & Steven Tadelis, 2015. "The Limits of Reputation in Platform Markets: An Empirical Analysis and Field Experiment," NBER Working Papers 20830, National Bureau of Economic Research, Inc.
    17. Seshadri Tirunillai & Gerard J. Tellis, 2012. "Does Chatter Really Matter? Dynamics of User-Generated Content and Stock Performance," Marketing Science, INFORMS, vol. 31(2), pages 198-215, March.
    18. Engler, Tobias H. & Winter, Patrick & Schulz, Michael, 2015. "Understanding online product ratings: A customer satisfaction model," Journal of Retailing and Consumer Services, Elsevier, vol. 27(C), pages 113-120.
    19. Irina Grinberg & Sanjib Bhuyan & Yanhong Jin & Lei Wang, 2015. "Examining the Awareness and Persuasive Effects of Online WOM," International Journal of Online Marketing (IJOM), IGI Global, vol. 5(1), pages 1-19, January.
    20. Nisar, Tahir M. & Prabhakar, Guru & Ilavarasan, P. Vigneswara & Baabdullah, Abdullah M., 2020. "Up the ante: Electronic word of mouth and its effects on firm reputation and performance," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    21. Cai, Hongbin & Jin, Ginger Zhe & Liu, Chong & Zhou, Li-an, 2014. "Seller reputation: From word-of-mouth to centralized feedback," International Journal of Industrial Organization, Elsevier, vol. 34(C), pages 51-65.
    22. Hajli, Nick & Sims, Julian & Zadeh, Arash H. & Richard, Marie-Odile, 2017. "A social commerce investigation of the role of trust in a social networking site on purchase intentions," Journal of Business Research, Elsevier, vol. 71(C), pages 133-141.
    23. Jiang, Cuiqing & Rashid, Rao Muhammad & Wang, Jianfei, 2019. "Investigating the role of social presence dimensions and information support on consumers’ trust and shopping intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 263-270.
    24. Dellarocas, Chrysanthos, 2003. "The Digitization of Word-of-mouth: Promise and Challenges of Online Feedback Mechanisms," Working papers 4296-03, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    25. Uzir, Md. Uzir Hossain & Al Halbusi, Hussam & Thurasamy, Ramayah & Thiam Hock, Rodney Lim & Aljaberi, Musheer A. & Hasan, Najmul & Hamid, Mahmud, 2021. "The effects of service quality, perceived value and trust in home delivery service personnel on customer satisfaction: Evidence from a developing country," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    26. Amar Cheema, 2008. "Surcharges and Seller Reputation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(1), pages 167-177, February.
    27. Rangaswamy, Arvind & Moch, Nicole & Felten, Claudio & van Bruggen, Gerrit & Wieringa, Jaap E. & Wirtz, Jochen, 2020. "The Role of Marketing in Digital Business Platforms," Journal of Interactive Marketing, Elsevier, vol. 51(C), pages 72-90.
    28. Lee, Ju-Yeon & Fang, Eric & Kim, Jisu J. & Li, Xiaoling & Palmatier, Robert W., 2018. "The Effect of Online Shopping Platform Strategies on Search, Display, and Membership Revenues," Journal of Retailing, Elsevier, vol. 94(3), pages 247-264.
    29. Li, Kunlin & Chen, Yuhan & Zhang, Liyi, 2020. "Exploring the influence of online reviews and motivating factors on sales: A meta-analytic study and the moderating role of product category," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    30. Bettman, James R. & Johnson, Eric J. & Payne, John W., 1990. "A componential analysis of cognitive effort in choice," Organizational Behavior and Human Decision Processes, Elsevier, vol. 45(1), pages 111-139, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kim, Da Yeon & Kim, Sang Yong, 2023. "Investigating the effect of customer-generated content on performance in online platform-based experience goods market," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    2. Park, Jeongeun & Yang, Donguk & Kim, Ha Young, 2023. "Text mining-based four-step framework for smart speaker product improvement and sales planning," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    3. Kim, Nayeong & Lee, Dongmin & Cho, Seonghwan & Moon, Junghoon, 2023. "The effect of exclusive distribution on the sales of ready-made meals in online retail," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    4. Li, Xinwei & Xu, Mao & Zeng, Wenjuan & Tse, Ying Kei & Chan, Hing Kai, 2023. "Exploring customer concerns on service quality under the COVID-19 crisis: A social media analytics study from the retail industry," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kim, Da Yeon & Kim, Sang Yong, 2023. "Investigating the effect of customer-generated content on performance in online platform-based experience goods market," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    2. Ana Babić Rosario & Kristine Valck & Francesca Sotgiu, 2020. "Conceptualizing the electronic word-of-mouth process: What we know and need to know about eWOM creation, exposure, and evaluation," Journal of the Academy of Marketing Science, Springer, vol. 48(3), pages 422-448, May.
    3. Yani Wang & Jun Wang & Tang Yao, 2019. "What makes a helpful online review? A meta-analysis of review characteristics," Electronic Commerce Research, Springer, vol. 19(2), pages 257-284, June.
    4. Pauwels, Koen & Aksehirli, Zeynep & Lackman, Andrew, 2016. "Like the ad or the brand? Marketing stimulates different electronic word-of-mouth content to drive online and offline performance," International Journal of Research in Marketing, Elsevier, vol. 33(3), pages 639-655.
    5. Xiang Hui & Tobias J. Klein & Konrad Stahl, 2021. "When and Why Do Buyers Rate in Online Markets?," CRC TR 224 Discussion Paper Series crctr224_2021_267v1, University of Bonn and University of Mannheim, Germany.
    6. Wang, Fang & Menon, Kalyani & Ranaweera, Chatura, 2018. "Dynamic trends in online product ratings: A diagnostic utility explanation," Journal of Business Research, Elsevier, vol. 87(C), pages 80-89.
    7. Verma, Deepak & Prakash Dewani, Prem & Behl, Abhishek & Pereira, Vijay & Dwivedi, Yogesh & Del Giudice, Manilo, 2023. "A meta-analysis of antecedents and consequences of eWOM credibility: Investigation of moderating role of culture and platform type," Journal of Business Research, Elsevier, vol. 154(C).
    8. Song, Yongming & Li, Guangxu & Li, Tie & Li, Yanhong, 2021. "A purchase decision support model considering consumer personalization about aspirations and risk attitudes," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    9. Zhen Li & Fangzhou Li & Jing Xiao & Zhi Yang, 2020. "Topic Features in Negative Customer Reviews: Evidence Based on Text Data Mining," The Review of Socionetwork Strategies, Springer, vol. 14(1), pages 19-40, April.
    10. Yucheng Zhang & Zhiling Wang & Lin Xiao & Lijun Wang & Pei Huang, 2023. "Discovering the evolution of online reviews: A bibliometric review," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-22, December.
    11. Tobias Gesche, 2022. "Reference‐price shifts and customer antagonism: Evidence from reviews for online auctions," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 31(3), pages 558-578, August.
    12. Khim-Yong Goh & Cheng-Suang Heng & Zhijie Lin, 2013. "Social Media Brand Community and Consumer Behavior: Quantifying the Relative Impact of User- and Marketer-Generated Content," Information Systems Research, INFORMS, vol. 24(1), pages 88-107, March.
    13. Duan, Yongrui & Liu, Tonghui & Mao, Zhixin, 2022. "How online reviews and coupons affect sales and pricing: An empirical study based on e-commerce platform," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    14. Lingfang (Ivy) Li & Steven Tadelis & Xiaolan Zhou, 2020. "Buying reputation as a signal of quality: Evidence from an online marketplace," RAND Journal of Economics, RAND Corporation, vol. 51(4), pages 965-988, December.
    15. Böheim, René & Hackl, Franz & Hölzl-Leitner, Michael, 2021. "The impact of price adjustment costs on price dispersion in e-commerce," International Journal of Industrial Organization, Elsevier, vol. 77(C).
    16. Gesche, Tobias, 2018. "Reference Price Shifts and Customer Antagonism: Evidence from Reviews for Online Auctions," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181650, Verein für Socialpolitik / German Economic Association.
    17. Dominik Gutt & Jürgen Neumann & Steffen Zimmermann & Dennis Kundisch & Jianqing Chen, 2018. "Design of Review Systems - A Strategic Instrument to shape Online Review Behavior and Economic Outcomes," Working Papers Dissertations 42, Paderborn University, Faculty of Business Administration and Economics.
    18. Guha Majumder, Madhumita & Dutta Gupta, Sangita & Paul, Justin, 2022. "Perceived usefulness of online customer reviews: A review mining approach using machine learning & exploratory data analysis," Journal of Business Research, Elsevier, vol. 150(C), pages 147-164.
    19. Daniel Blaseg & Christian Schulze & Bernd Skiera, 2020. "Consumer Protection on Kickstarter," Marketing Science, INFORMS, vol. 39(1), pages 211-233, January.
    20. Apostolos Filippas & John J. Horton & Richard J. Zeckhauser, 2020. "Owning, Using, and Renting: Some Simple Economics of the “Sharing Economy”," Management Science, INFORMS, vol. 66(9), pages 4152-4172, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:68:y:2022:i:c:s0969698922001096. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.