Abstract
This thesis investigates the online consumer review (OCR) mechanism and process by positioning OCRs within the existing state and non-state regulatory structure, identifying limitations and problems of OCRs from multiple perspectives, and suggesting possible ways of addressing these limitations and problems. It examines the OCR mechanism to understand where it fits as a regulatory tool within the existing government and non-state set of regulatory arrangements, using the sustainable governance (Webb, 2005) concept and framework as a lens for analysis. The thesis suggests that OCRs are a new non-state way of regulating business behavior in which an online platform is created by a firm, and this platform provides a structured process for individual consumers to make and publish reviews of individual businesses, who then respond to these reviews in an effort to maintain or increase their profitability. The thesis then identifies key problems with the OCR approach and explores how conventional state-based approaches to consumer information (e.g. laws) and non-state approaches (e.g., multi-stakeholder standards) can address these problems, and by so doing, move from the current ad hoc state/non-state approach for the dissemination of consumer information about businesses to a more systematic and coordinated approach, in keeping with the concept of sustainable governance. The thesis draws on a literature review as well as surveys and semi-structured interviews to support its analysis.
Highlights
This thesis investigates the online consumer review (OCR) mechanism and process by positioning Online Consumer Reviews (OCRs) within the existing state and non-state regulatory structure, identifying limitations and problems of OCRs from multiple perspectives, and suggesting possible ways of addressing these limitations and problems
The thesis suggests that OCRs are a new non-state way of regulating business behavior in which an online platform is created by a firm, and this platform provides a structured process for individual consumers to make and publish reviews of individual businesses, who respond to these reviews in an effort to maintain or increase their profitability
Unlike conventional regulatory approaches, with OCRs, the structured provision and dissemination of consumer information is undertaken by private sector OCR platforms, channeling performance reviews provided by consumers, and as such it represents an innovative non-state regulatory approach
Summary
This thesis investigates the online consumer review (OCR) mechanism and process by positioning OCRs within the existing state and non-state regulatory structure, identifying limitations and problems of OCRs from multiple perspectives, and suggesting possible ways of addressing these limitations and problems. The potential contribution of this research to the scholarly literature is an improved understanding of how (a) OCRs regulate business conduct; (b) OCRs are part of a broader interconnected ensemble of state and non-state regulatory arrangements all targeting the provision of reliable and accurate consumer information concerning businesses, in keeping with the concept of sustainable governance; and (c) various state and non-state mechanisms and approaches can addressing some of the current limitations associated with OCRs
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