Abstract
By using user-generated content (UGC), specifically customer ratings, this paper disentangles the role of different dimensions of perceived product quality in influencing consumer choice in the context of the U.S. automobile industry. We use a structural estimation model with endogenous prices and heterogeneous customer preferences to show that design is the most salient factor of perceived product quality in determining an automobile's market share. Our results have important implications on an automobile manufacturer's internal resource allocation strategy. We also highlight the changing role of on-line product review forums in the automobile industry's value chain.
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