Investigating the influence of regulatory focus on the efficacy of online review volume versus valence

Abstract

Purpose Valence and volume of online reviews are generally considered to influence sales positively. However, existing findings regarding the relative influence of these two components have been inconclusive. This paper aims to explain some of these inconsistencies by examining the moderating role of regulatory focus (both as a chronic disposition and as a situational focus induced by the product category) in the relationship between online review volume/valence and consumers purchase decisions. Design/methodology/approach Two studies were conducted. Study 1 used a 2 (Volume: high/ low) * 3 (Valence: high/medium/low) within-subject experimental design. Study 2 analyzed real-world data from Amazon.com. Logistic and panel regression analyses were used to test the research hypotheses. Findings The studies confirmed the hypothesized effect of regulatory focus on online review valence and volume effects. Specifically, Study 1 showed that online review valence was more impactful for consumers with a promotion focus than for consumers with a prevention focus. The opposite was true for online review volume effects, where consumers with a prevention focus were influenced more by volume in their decision-making compared to consumers with a promotion focus. Study 2 showed that the pattern of results we found in Study 1 also applied to situational regulatory focus induced by the product category. The effect of review volume on sales rank was stronger for prevention-oriented products, whereas the effect of valence was stronger for promotion-oriented products. Research limitations/implications In Study 1, one product category was involved in the study (Digital camera). Involving more different product categories will add reliability to the results of current research. Also, it can offer external validity to current research results. In Study 2, there was no exact measurement for sales, as Amazon.com does not share that kind of information. Instead, Sales Rank was used as a proxy variable. Future research could look into the websites that offer access to the exact sales information. Practical implications The current research findings suggest the need for companies to adapt their consumer review management strategy to the regulatory orientation of their target market and products. When a promotion-focused mindset is targeted, strategies for increasing the favorability of product reviews should be used, in contrast, tactics for increasing the quantity of reviews may be more suitable when a prevention-focused mindset is involved. Originality/value To the best of the authors' knowledge, this research is the first to investigate the interaction between regulatory focus of consumers and products and online review components.