easy essay reviews

easy essay reviews

The Impact of Online Customer Reviews on Consumer Decision-Making

1. Introduction to Online Customer Reviews

As electronic commerce becomes an increasingly important aspect of the global market, consumers are often forced to cross the boundaries of trust and risk in making a decision to purchase an item online. One of the aspects that contributes to building trust and decreasing the perceived risk is the presence of online customer reviews (OCRs) of the product, which enable customers to evaluate the product features based on the first-hand experience of customers who have previously purchased the product. Customer reviews are considered a form of word-of-mouth communication valuable to customers. Research on the characteristics and impact of these online customer reviews has become a rapidly growing area of interest, due to the importance and potential of their applications for marketing managers. The major motivation for firms to sell their products is not easily tested by examining their performance, because firms are reluctant to reveal the impact of customer reviews on consumer decision-making. The reluctance of firms and marketing managers to reveal the impact of customer reviews also limits the amount of research on this phenomenon.

2. Factors Influencing the Credibility of Online Reviews

The objective was to gain insight into what consumers perceived as the key factors affecting the credibility of customer online reviews to disseminate to the retailers. The findings indeed indicated the existence of differences between online reviews of goods and services across the Internet and reviews of fine jewelry found on the retailers’ websites for consumers in Hong Kong. Factors such as reviewer and review characteristics, extremity of the review when using a qualitative approach were examined to see what indeed drove a potential consumer’s credibility judgment of customer online. The International Journal of Management & Marketing Research factors affecting the perceived credibility of online customer reviews, Page 1. Review of several existing studies has indeed indicated that online customer reviews are generally seen as quite legitimate.

Even though online customer reviews have been proven to be quite credible, scholars have still found certain specific features that may influence the legitimate nature of a review. Discrepancies among previous studies have made it difficult to, in fact, elaborate on what really increases online customer review assistance. In addition, few or no studies have undertaken a haircut in the context of fine jewelry shopping. This study, therefore, took a more careful approach to review credibility and presented the unique accounts uncovered from the interviews in this setting, which may yield practice implications for the marketers.

3. The Influence of Online Reviews on Consumer Behavior

Each consumer has different informational needs with unique product service requirements; sections of external sources of consumer perceived risk have different downward influences on purchasing intentions. In high perceived risk, a good number of consumer reviews can stimulate the desire to gather information, suggesting valuable feedback satisfies the utility and reliability of information and affects positive purchase decisions. For example, product quality is a significant contributor to customer perceived risk for online shopping. Consumers evaluate product value based on high-quality online review content and enjoy the convenience the timely added content may provide to make an online shopping meal. Because negative online product reviews can destroy the confidence of online referred customers and increase the risk of withdrawal, reliable websites play important roles in adding new positive online consumer reviews and inducing purchases.

Online reviews can affect consumer decision-making, but different consumer backgrounds can also result in differences in the influence of web reviews. A recent study noted that consumer willingness to purchase products was related to different environmental settings and demonstrated that perceived purchase risk and website reputation had potential moderators in the interactive process for consumer purchasing behavior. Perceived risk may force consumers to seek relevant, pertinent, and accessible information through different web links before making an effective purchase decision. In e-commerce, website reputation becomes a major factor influencing consumer purchasing utility, product service encounters, and the value exchange relationship between consumers and sellers.

4. Strategies for Businesses to Manage and Leverage Online Reviews

As every coin has two sides, online customer reviews also have a dark side, which can impact the recipient and also the whole economy. We also represent the negative impact of online customer reviews. Some research focusing on how businesses can manage and project online reviews is also identified. While most existing literature on e-commerce tends to focus on the upstream dimensions of this virtual interaction, this paper focuses on the actions customers can perform to exaggerate the importance of this interaction and its rating asymmetry. To guide future online review research, we propose several research direction suggestions that will contribute to bridging the aforementioned identified research gaps within the literature. The first contribution of this paper is thus to develop a new conceptual approach to differentiating the effect of online product reviews on consumer decision-making, focusing on the result of the purchase itself rather than on the initial impact of the product reviews or transaction intention on the e-vendor visited by potential customers.

To be seen and accessible in the digital domain, companies must carefully consider customer reviews. Online reviews hold significant influence in the process of consumer decision-making. As the first comprehensive review of the impact of online product reviews in e-commerce, the purpose of the paper is to provide a conceptual analysis to deepen our understanding of the effect of online product reviews on consumer decision making. This paper identifies the impact of online product reviews in five key decision-making stages: (1) consideration of e-vendors by potential customers; (2) generation of interest in a product; (3) evaluation of the product against the customer’s criteria; (4) the moment of purchase intention; and (5) overall satisfaction with a product. The review also summarizes the motivations and behavior of those who share online reviews, and compares online reviews with traditional word-of-mouth communication.

5. Conclusion and Future Research Directions

Since positive reviews drive consumer decision-making, marketers are motivated to provoke evaluations in their favor. Findings have implications for the strategic management of online review ratings and review content. Customer reviews not only directly affect purchase decisions by significantly enhancing consumers’ cognitive absorption, they may also influence promotional activities, such as word-of-mouth or attitudes towards brands. However, feedback from a consumer’s social network may have a more intentional aspect than feedback from a review. Online consumers who seek consumer opinions and recommendations often unintentionally bump into reviews by other persons, which could create confusion. Therefore, many companies post customer reviews on their websites to exploit the potential pull effect of consumer opinions. Individual experiences from other consumers who know the product rating directly influence hesitations, the growth of the latent demand, and brand management.

This study explores the impact of positive reviews and cognitive absorption on three types of reliance on OLG, namely, attitude towards brand, cognitive involvement, and word-of-mouth. Findings show that positive reviews lead to greater reliance on OLG and outcomes of reliance on OLG vary among studies. When comparing the three types of outcomes, researchers may find that the use of OLG does not necessarily result in positive brand attitude or the intent to purchase the product. Future research can consider more usage intention related constructs including brand awareness or perceived trialability. Researchers should also investigate how cognitive absorption influences the relationship between positive reviews and heuristic processing of advertising or consumers’ responses to non-review online content.

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