The more they know: Using transparent online communication to combat fake online reviews

Abstract

Technological advances and shifts in consumer preference continue to further the critical roles that digital platforms and online word-of-mouth play in organizational success. Within this context, a key concern is the growing proliferation of fake online reviews, which mislead consumers and damage businesses’ reputations, resulting in additional platform maintenance expenditures to curb this problem. This article demonstrates that a successful avenue to turn these expenses into effective investments is to embrace a culture of transparency by effectively communicating the platforms’ actions online. To this end, we first provide evidence of the danger posed by fake reviews. Using data from Amazon.com and ReviewMeta, we show that reviews suspected as fake and deleted by Amazon’s algorithms are, counterintuitively, more likely to be perceived as helpful by consumers. In addition, two experiments reveal that including subtle messages into the review section of an online retailing website, messages that communicate a company’s efforts to remove fake reviews, can successfully improve both perceptions of consumer helpfulness and purchase intention. Finally, a four-stage framework, VIEW—verify, inform, explore, and watch—provides a roadmap for managers of online review platforms to combat the problem of fake reviews.