Socially Nudged: A Quasi-Experimental Study of Friends’ Social Influence in Online Product Ratings

References

• Angrist JD, Pischke JS (2010) The credibility revolution in empirical economics: How better research design is taking the con out of econometrics. J. Econom. Perspect. 24(2):3–30.Crossref, Google Scholar
• Antweiler W, Frank MZ (2004) Is all that talk just noise? The information content of Internet stock message boards. J. Finance 59(3):1259–1294.Crossref, Google Scholar
• Banerjee AV (1992) A simple model of herd behavior. Quart. J. Econom. 107(3):797–817.Crossref, Google Scholar
• Bapna R, Umyarov A (2015) Do your online friends make you pay? A randomized field experiment in an online music social network. Management Sci. 61(8):1902–1920.Link, Google Scholar
• Bikhchandani S, Hirshleifer D, Welch I (1992) A theory of fads, fashion, custom, and cultural change as informational cascades. J. Political Econom. 100(5):992–1026.Crossref, Google Scholar
• Bollen K, Pearl J (2013) Eight myths about causality and structural equation models. Morgan SL, ed. Handbook of Causal Analysis for Social Research, Handbooks Sociol. Soc. Res. (Springer, Dordrecht, Netherlands), 301–328.Crossref, Google Scholar
• Bolton GE, Katok E, Ockenfels A (2004) How effective are electronic reputation mechanisms? An experimental investigation. Management Sci. 50(11):1587–1602.Link, Google Scholar
• Bramoullé Y, Djebbari H, Fortin B (2009) Identification of peer effects through social networks. J. Econom. 150(1):41–55.Crossref, Google Scholar
• Brock WA, Durlauf SN (2001) Interactions-based models. Heckman JJ, Leamer E, eds. Handbook of Econometrics, Vol. 5 (North-Holland, Amsterdam), 3297–3380.Crossref, Google Scholar
• Brown JR, Ivković Z, Smith PA, Weisbenner S (2008) Neighbors matter: Causal community effects and stock market participation. J. Finance 63(3):1509–1531.Crossref, Google Scholar
• Burnkrant RE, Cousineau A (1975) Informational and normative social influence in buyer behavior. J. Consumer Res. 2(3):206–215.Crossref, Google Scholar
• Burtch G, Hong Y, Bapna R, Griskevicius V (2017) Stimulating online reviews by combining financial incentives and social norms. Management Sci., ePub ahead of print March 3, https://doi.org/10.1287/mnsc.2016.2715.Link, Google Scholar
• Cai H, Chen Y, Fang H (2009) Observational learning: Evidence from a randomized natural field experiment. Amer. Econom. Rev. 99(3):864–882.Crossref, Google Scholar
• Campbell DT, Stanley JC (1963) Experimental and Quasi-Experimental Designs for Research (Houghton Mifflin, New York).Google Scholar
• Chen Y, Xie J (2005) Third-party product review and firm marketing strategy. Marketing Sci. 24(2):218–240.Link, Google Scholar
• Chevalier JA, Mayzlin D (2006) The effect of word of mouth on sales: Online book reviews. J. Marketing Res. 43(3):345–354.Crossref, Google Scholar
• Chintagunta PK, Gopinath S, Venkataraman S (2010) The effects of online user reviews on movie box office performance: Accounting for sequential rollout and aggregation across local markets. Marketing Sci. 29(5):944–957.Link, Google Scholar
• Cialdini RB, Goldstein NJ (2004) Social influence: Compliance and conformity. Annual Rev. Psych. 55(1):591–621.Crossref, Google Scholar
• Cohen JB, Golden E (1972) Informational social influence and product evaluation. J. Appl. Psych. 56(1):54–59.Crossref, Google Scholar
• Conley TG, Udry CR (2010) Learning about a new technology: Pineapple in Ghana. Amer. Econom. Rev. 100(1):35–69.Crossref, Google Scholar
• Crandall D, Cosley D, Huttenlocher D, Kleinberg J, Suri S (2008) Feedback effects between similarity and social influence in online communities. Proc. 14th ACM SIGKDD Internat. Conf. Knowledge Discovery Data Mining (ACM, New York), 160–168.Google Scholar
• Dellarocas C (2006) Strategic manipulation of Internet opinion forums: Implications for consumers and firms. Management Sci. 52(10):1577–1593.Link, Google Scholar
• Dellarocas C, Wood CA (2008) The sound of silence in online feedback: Estimating trading risks in the presence of reporting bias. Management Sci. 54(3):460–476.Link, Google Scholar
• Dellarocas C, Zhang XM, Awad NF (2007) Exploring the value of online product reviews in forecasting sales: The case of motion pictures. J. Interactive Marketing 21(4):23–45.Crossref, Google Scholar
• Deutsch M, Gerard HB (1955) A study of normative and informational social influences upon individual judgment. J. Abnormal Soc. Psych. 51(3):629–636.Crossref, Google Scholar
• Duan W, Gu B, Whinston AB (2008a) The dynamics of online word-of-mouth and product sales—An empirical investigation of the movie industry. J. Retailing 84(2):233–242.Crossref, Google Scholar
• Duan W, Gu B, Whinston AB (2008b) Do online reviews matter? An empirical investigation of panel data. Decision Support Systems 45(4):1007–1016.Crossref, Google Scholar
• Duflo E, Saez E (2003) The role of information and social interactions in retirement plan decisions: Evidence from a randomized experiment. Quart. J. Econom. 118(3):815–842.Crossref, Google Scholar
• Duggan M, Smith A (2013) Social media update 2013. Accessed December 15, 2014, http://www.pewinternet.org/2013/12/30/social-media-update-2013/.Google Scholar
• Dulleck U, Kerschbamer R (2006) On doctors, mechanics, and computer specialists: The economics of credence goods. J. Econom. Literature 44(1):5–42.Crossref, Google Scholar
• Forman C, Ghose A, Wiesenfeld B (2008) Examining the relationship between reviews and sales: The role of reviewer identity disclosure in electronic markets. Inform. Systems Res. 19(3):291–313.Link, Google Scholar
• Foster G (2006) It’s not your peers, and it’s not your friends: Some progress toward understanding the educational peer effect mechanism. J. Public Econom. 90(8–9):1455–1475.Crossref, Google Scholar
• Godes D (2011) Commentary—Invited comment on “opinion leadership and social contagion in new product diffusion.” Marketing Sci. 30(2):224–229.Link, Google Scholar
• Godes D, Mayzlin D (2004) Using online conversations to study word-of-mouth communication. Marketing Sci. 23(4):545–560.Link, Google Scholar
• Godes D, Silva JC (2011) Sequential and temporal dynamics of online opinion. Marketing Sci. 31(3):448–473.Link, Google Scholar
• Goes PB, Lin M, Au Yeung C (2014) “Popularity effect” in user-generated content: Evidence from online product reviews. Inform. Systems Res. 25(2):222–238.Link, Google Scholar
• Gu B, Park J, Konana P (2012) The impact of external word-of-mouth sources on retailer sales of high-involvement products. Inform. Systems Res. 23(1):182–196.Link, Google Scholar
• Hu N, Pavlou PA, Zhang J (2009) Why do online product reviews have a J-shaped distribution? Overcoming biases in online word-of-mouth communication. Comm. ACM 52(10):144–147.Crossref, Google Scholar
• Hu N, Bose I, Gao Y, Liu L (2011) Manipulation in digital word-of-mouth: A reality check for book reviews. Decision Support Systems 50(3):627–635.Crossref, Google Scholar
• Huang N, Hong Y, Burtch G (2017) Social network integration and user content generation: Evidence from natural experiments. MIS Quart. 41(4):1035–1058.Crossref, Google Scholar
• Irwin JR, McClelland GH (2001) Misleading heuristics and moderated multiple regression models. J. Marketing Res. 38(1):100–109.Crossref, Google Scholar
• Kuksov D, Xie Y (2010) Pricing, frills, and customer ratings. Marketing Sci. 29(5):925–943.Link, Google Scholar
• Kutner M, Nachtsheim C, Neter J (2004) Applied Linear Regression Models, 4th ed. (McGraw-Hill/Irwin, Boston).Google Scholar
• Lazarsfeld PF, Merton RK (1954) Friendship as a social process: A substantive and methodological analysis. Berger M, Abel T, Page C, eds. Freedom and Control in Modern Society (Van Nostrand, New York), 18–66.Google Scholar
• Lee YJ, Tan Y, Hosanagar K (2014) Do I follow my friends or the crowds? Examining informational cascades in online movie reviews. Management Sci. 61(9):2241–2258.Link, Google Scholar
• Lewis K (2011) The co-evolution of social network ties and online privacy behavior. Trepte S, Reinecke L, eds. Privacy Online (Springer, Berlin Heidelberg), 91–109.Crossref, Google Scholar
• Li X, Hitt LM (2008) Self-selection and information role of online product reviews. Inform. Systems Res. 19(4):456–474.Link, Google Scholar
• Liu D, Brass D, Lu Y, Chen D (2015) Friendships in online peer-to-peer lending: Pipes, prisms, and relational herding. MIS Quart. 39(3):729–742.Crossref, Google Scholar
• Liu Y (2006) Word of mouth for movies: Its dynamics and impact on box office revenue. J. Marketing 70(3):74–89.Crossref, Google Scholar
• Lu X, Ba S, Huang L, Feng Y (2013) Promotional marketing or word-of-mouth? Evidence from online restaurant reviews. Inform. Systems Res. 24(3):596–612.Link, Google Scholar
• Malthouse EC, Haenlein M, Skiera B, Wege E, Zhang XM (2013) Managing customer relationships in the social media era: Introducing the social CRM house. J. Interactive Marketing 27(4):270–280.Crossref, Google Scholar
• Manski CF (1993) Identification of endogenous social effects: The reflection problem. Rev. Econom. Stud. 60(3):531–542.Crossref, Google Scholar
• Marquardt DW (1970) Generalized inverses, ridge regression, biased linear estimation, and nonlinear estimation. Technometrics 12(3):591–612.Crossref, Google Scholar
• Marsden PV, Friedkin NE (1993) Network studies of social influence. Sociol. Methods Res. 22(1):127–151.Crossref, Google Scholar
• Mas A, Moretti E (2009) Peers at work. Amer. Econom. Rev. 99(1):112–145.Crossref, Google Scholar
• Mayzlin D, Dover Y, Chevalier J (2014) Promotional reviews: An empirical investigation of online review manipulation. Amer. Econom. Rev. 104(8):2421–2455.Crossref, Google Scholar
• McPherson M, Smith-Lovin L, Cook JM (2001) Birds of a feather: Homophily in social networks. Annual Rev. Sociol. 27:415–444.Crossref, Google Scholar
• Moe WW, Schweidel DA (2012) Online product opinions: Incidence, evaluation and evolution. Marketing Sci. 31(3):372–386.Link, Google Scholar
• Moe WW, Trusov M (2011) The value of social dynamics in online product ratings forums. J. Marketing Res. 48(3):444–456.Crossref, Google Scholar
• Moe WW, Schweidel DA, Trusov M (2011) Cutting through online chatter: White noise or resonating insights? Sloan Management Rev. 53(1):14–16.Google Scholar
• Moretti E (2011) Social learning and peer effects in consumption: Evidence from movie sales. Rev. Econom. Stud. 78(1):356–393.Crossref, Google Scholar
• Nielsen (2014) The U.S. digital consumer report. Accessed December 15, 2014, http://www.nielsen.com/us/en/insights/reports/2014/the-us-digital-consumer-report.html.Google Scholar
• Pavlou PA, Gefen D (2004) Building effective online marketplaces with institution-based trust. Inform. Systems Res. 15(1):37–59.Link, Google Scholar
• Resnick P, Zeckhauser R (2002) Trust among strangers in Internet transactions: Empirical analysis of eBay’s reputation system. Baye MR, ed. The Economics of the Internet and e-Commerce, Adv. Appl. Microeconomics, Vol. 11 (JAI Press, Amsterdam), 127–157.Crossref, Google Scholar
• Sacerdote B (2001) Peer effects with random assignment: Results for Dartmouth roommates. Quart. J. Econom. 116(2):681–704.Crossref, Google Scholar
• Salganik MJ, Dodds PS, Watts DJ (2006) Experimental study of inequality and unpredictability in an artificial cultural market. Science 311(5762):854–856.Crossref, Google Scholar
• Schlosser AE (2005) Posting versus lurking: Communicating in a multiple audience context. J. Consumer Res. 32(2):260–265.Crossref, Google Scholar
• Shapiro C, Varian HR (1999) Information Rules: A Strategic Guide to the Network Economy (Harvard Business Review Press, Boston).Google Scholar
• Snijders TAB, Steglich CEG, Schweinberger M (2006) Modeling the coevolution of networks and behavior. van Montfort K, Oud J, Satorra A, eds. Longitudinal Models in the Behavioral and Related Sciences (Routledge, New York), 41–72.Google Scholar
• Soetevent AR (2006) Empirics of the identification of social interactions; An evaluation of the approaches and their results. J. Econom. Surveys 20(2):193–228.Crossref, Google Scholar
• Steglich C, Snijders TAB, Pearson M (2010) Dynamic networks and behavior: Separating selection from influence. Sociol. Methodology 40(1):329–393.Crossref, Google Scholar
• Summers LH (1991) The scientific illusion in empirical macroeconomics. Scandinavian J. Econom. 93(2):129–148.Crossref, Google Scholar
• Susarla A, Oh JH, Tan Y (2012) Social networks and the diffusion of user-generated content: Evidence from YouTube. Inform. Systems Res. 23(1):23–41.Link, Google Scholar
• Thaler RH, Sunstein CR (2008) Nudge: Improving Decisions About Health, Wealth, and Happiness (Yale University Press, New Haven, CT).Google Scholar
• Trusov M, Bodapati AV, Bucklin RE (2010) Determining influential users in Internet social networks. J. Marketing Res. 47(4):643–658.Crossref, Google Scholar
• Tucker C (2008) Identifying formal and informal influence in technology adoption with network externalities. Management Sci. 54(12):2024–2038.Link, Google Scholar
• Van den Bulte C, Lilien GL (2001) Medical innovation revisited: Social contagion versus marketing effort. Amer. J. Sociol. 106(5):1409–1435.Crossref, Google Scholar
• Watts DJ, Dodds PS (2007) Influentials, networks, and public opinion formation. J. Consumer Res. 34(4):441–458.Crossref, Google Scholar
• Wu F, Huberman BA (2008) How public opinion forms. Papadimitriou C, Zhang S, eds. Internet and Network Economics, Lecture Notes Comput. Sci., Vol. 5385 (Springer, Berlin Heidelberg),334–341.Google Scholar
• Xu SX, Zhang XM (2013) Impact of Wikipedia on market information environment: Evidence on management disclosure and investor reaction. MIS Quart. 37(4):1043–1068.Crossref, Google Scholar
• Yin D, Mitra S, Zhang H (2015) When do consumers value positive versus negative reviews? An empirical investigation of confirmation bias in online word of mouth. Inform. Systems Res. 27(1): 131–144.Link, Google Scholar
• Yoganarasimhan H (2012) Impact of social network structure on content propagation: A study using YouTube data. Quant. Marketing Econom. 10(1):111–150.Crossref, Google Scholar
• Zhang J (2010) The sound of silence: Observational learning in the U.S. kidney market. Marketing Sci. 29(2):315–335.Link, Google Scholar
• Zhang J, Liu P (2012) Rational herding in microloan markets. Management Sci. 58(5):892–912.Link, Google Scholar
• Zhang XM, Wang C (2012) Network positions and contributions to online public goods. J. Management Inform. Systems. 29(2):11–40.Crossref, Google Scholar
• Zhang XM, Zhu F (2011) Group size and incentives to contribute: A natural experiment at Chinese Wikipedia. Amer. Econom. Rev. 101(4):1601–1615.Crossref, Google Scholar
• Zhu F, Zhang XM (2010) Impact of online consumer reviews on sales: The moderating role of product and consumer characteristics. J. Marketing 74(2):133–148.Crossref, Google Scholar