Homogenous or heterogeneous? Demand effect of reviewer similarity in online video website

Abstract

PurposeNowadays, online platforms which provide products or services try to implement their homegrown communities to facilitate users' social interactions. Reviewers' activities in these communities can reflect their interests. Based on the theory of homophily, the authors aim to explore the impacts of the reviewer preference similarity and opinion similarity on the rate of product diffusion.Design/methodology/approachFirst, the authors construct reviewer similarity network based on their common interests and propose typical network metrics to measure reviewer preference similarity. Second, the authors measure reviewer opinion similarity with natural language processing. Finally, based on a panel data from an online video platform in China, both the fixed-effect and random-effect panel data models are constructed.FindingsThe authors find that reviewer preference similarity has a positive effect on the product diffusion, whereas reviewer opinion similarity has a negative effect on the diffusion. Furthermore, temporal distance moderates the relationship between reviewer similarity and the product diffusion. As a double-edged sword, review preference similarity hinders product diffusion in the initial phase, whereas benefits it in the later phase. Reviewer opinion similarity is always detrimental to product diffusion, especially in the initial phase.Originality/valueThis paper extends the understanding of homophily from the micro peer level to the group level by constructing reviewers' similarity network and highlights the important role of reviewer preference similarity and opinion similarity in product diffusion. The results also provide important insights for managers to design and implement diversity strategies for better product adoption in the community context.