From Consumption to Online Review Posting: Examining the Influential Factors of Conversion Rate

Abstract

ABSTRACT Online reviews reflect consumer needs and generate an electronic word-of-mouth (eWOM) effect influencing businesses’ financial performance. Existing literature on online reviews largely assumes consumers have a consistent conversion rate of writing and posting online reviews after a consumption experience. Using dual-source data of consumers’ footprints and online restaurant reviews, we challenge this assumption and quantify the online review conversion rate by depicting a comprehensive pathway from consumers’ visitation to their review writing. We find that consumer overall satisfaction has a nonlinear impact on the online review conversion rate. Extremely dissatisfied consumers are more likely to post online reviews to complain than generally dissatisfied consumers. In contrast, generally satisfied consumers are more likely to post online reviews than extremely satisfied consumers. Additionally, consumer engagement in the platform stimulates their online review behavior. Further, consumers’ geographical distance from providers has a U-shaped impact on online review conversion rate. Local nearby consumers and consumers from a relatively long distance have a higher chance to post online reviews than consumers from a moderate distance. Moreover, price promotions from providers facilitate consumers’ review behavior. The findings guide businesses to prioritize reading and responding to online consumer reviews based on these influential factors. Companies thus can use more targeted actions to encourage consumers to post positive reviews and spread a positive eWOM effect to attract consumers and enhance financial performance