Differential effects of online signals on sales performance of local brand clothing products

Abstract

PurposeBusinesses need to make quick decisions and adjustments to fulfill the growing online demand. Previous studies examined various factors affecting the online sales performance of products such as books, electronics and movies; however, they paid limited attention toward the local brand clothing products. The current study investigates the importance of different kinds of seller-generated and consumer-generated signals such as price, discount, product ratings, review volume, review sentiment, number of questions and interaction between some of these factors for predicting the sales performance of clothing products.Design/methodology/approachThe multiple linear regressions has been employed to investigate the influence of various predictor variables on sales performance. The study also examines the importance of these predictor variables by using different machine learning models, including random forest (RF), neural networks and support vector regression (SVR).FindingsThe findings of the study emphasize the importance of price and discount rates offered on the product. The quantitative characteristics of reviews, such as review volume and average rating, have been found to be more important predictors than sentiment strengths. However, the sentiment strength of reviews with higher helpfulness scores plays a significant role in predicting sales performance.Originality/valueThe study highlights the varying importance of seller-based and consumer-based signals in predicting sales performance. It also investigates the interaction effect of these two kinds of signals. The consumer-generated signals have been further divided into two components based on social influence theory, and the interaction effects of these components have also been examined.