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Article
The effect of online consumer reviews on new product sales
International Journal of Electronic Commerce
  • Geng CUI, Lingnan University, Hong Kong, and Guangdong University Foreign Studie, China
  • Hon Kwong LUI, Lingnan University, Hong Kong
  • Xiaoning GUO, University of Cincinnati, United States
Document Type
Journal article
Publication Date
1-1-2012
Keywords
  • New product sales,
  • online product reviews,
  • panel data analyses,
  • search vs. experience products,
  • word of mouth
Disciplines
Abstract
This study examines the effect of online reviews on new product sales for consumer electronics and video games. Analyses of panel data of 332 new products from Amazon.com over nine months reveal that the valence of reviews and the volume of page views have a stronger effect on search products, whereas the volume of reviews is more important for experience products. The results also show that the volume of reviews has a significant effect on new product sales in the early period and such effect decreases over time. Moreover, the percentage of negative reviews has a greater effect than that of positive reviews, confirming the negativity bias. Thus, marketers need to consider the distinctive influences of various aspects of online reviews when launching new products and devising e-marketing strategies.
DOI
10.2753/JEC1086-4415170102
E-ISSN
15579301
Publisher Statement

Copyright © 2012 M.E. Sharpe, Inc.

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Citation Information
Cui, G., Lui, H.-K., & Guo, X. (2012). The effect of online consumer reviews on new product sales. International Journal of Electronic Commerce, 17(1), 39-58. doi: 10.2753/JEC1086-4415170102