How online review richness impacts sales: An attribute substitution perspective

Abstract

AbstractRicher forms of online reviews such as videos or follow‐on reviews convey ‘additional information and can attract consumers’ attention. However, prior studies focused mostly on the relationship between aggregated online reviews and sales. This paper investigates the impact of online review richness (i.e., reviews containing videos or follow‐on reviews) on sales. Leveraging attribute substitution theory, we conjecture that online review richness can provide heuristic cues in the online shopping environment to help consumers make better purchase decisions. Using data from JD.com, we found that reviews containing either videos or follow‐on reviews positively affect sales. In addition, different product types can also serve as heuristic cues to replace target cues, which can further affect how different forms of online review richness affect sales. We found that the impact of online review richness on sales is stronger for utilitarian products than for hedonic products, and stronger for negatively commented products than for positively commented products. Moreover, we conducted two online experiments and confirmed that the causal relationship is from online review richness to sales. The research findings offer practical implications for online retailers and constitute one of the first steps toward a better understanding of the relationship between online review richness and sales.