Abstract
Previous studies have demonstrated that online reviews play an important role in the purchase decision process. Though the effects of positive and negative reviews to consumers’ purchase decisions have been analyzed, they were examined statically and separately. In reality, online review community allows everyone to express and receive opinions and individuals can reexamine their opinions after receiving messages from others. The goal of this paper is to study how potential customers form their opinions dynamically under the effects of both positive and negative reviews using a numerical simulation. The results show that consumers with different membership levels have different information sensitivities to online reviews. Consumers at low and medium membership levels are often persuaded by online reviews, regardless of their initial opinion about a product. On the other hand, online reviews have less effect on consumers at higher membership levels, who often make purchase decisions based on their initial impressions of a product.
Highlights
The impact of online product reviews on e-commerce can be significant since potential online customers often refer to online reviews from previous customers before making their purchase decisions (Banerjee, Bhattacharyya, & Bose, 2017; Liu, 2006)
Persuasion knowledge development can increase individuals’ information processing capabilities (Deborah, John, & Whitney, 1986; Tee & Ong, 2016). This study uses this theory to discuss the effect of online review valence on individual opinion evaluation and attitude formation toward a product
The results show that at lower membership levels, individual opinion fluctuated depending on the contents of the online reviews, and will not remain in a stable state
Summary
The impact of online product reviews on e-commerce can be significant since potential online customers often refer to online reviews from previous customers before making their purchase decisions (Banerjee, Bhattacharyya, & Bose, 2017; Liu, 2006). 2009), adoption of online reviews (Cheung, Luo, Sia, & Chen, 2009; Park & Kim, 2008; Park & Lee, 2008) and has attracted growing attention (Zhang, Zhao, Cheung, & Lee, 2014) Among these studies, dual-process theories (i.e., elaboration likelihood model (ELM) and heuristicsystematic model (HSM)) discuss how individuals establish assessments and make decisions during information processing (Eagly & Chaiken, 1993; Cheung & Thadani, 2012; Zhang et al, 2014; Kou, Peng, & Wang, 2014a). The goal of this paper is to study the dynamic information process of consumers and analyze what is an individual’s final attitude when affected by both positive and negative comments.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
