Understanding the Impact of Reviews on Consumer Product Choices Under Negotiated Pricing

Published Online:https://doi.org/10.1287/mnsc.2020.02658

References

  • Archak N, Ghose A, Ipeirotis PG (2011) Deriving the pricing power of product features by mining consumer reviews. Management Sci. 57(8):1485–1509.LinkGoogle Scholar
  • Berry S, Levinsohn J, Pakes A (1995) Automobile prices in market equilibrium. Econometrica 63(4):841–890.CrossrefGoogle Scholar
  • Binmore K, Rubinstein A, Wolinsky A (1986) The Nash bargaining solution in economic modelling. RAND J. Econom. 17(2):176–188.CrossrefGoogle Scholar
  • Capgemini (2015) Capgemini’s 2015 Automotive Online Research Report reveals consumers’ increasing demand for a more personalized car buying experience. Accessed August 3, 2018, https://www.capgemini.com/us-en/news/capgemini-cars-online-2015-report-highlights-growing-consumer-demand-for-a-more-personalized-car-buying-experience/.Google Scholar
  • Chen Y, Xie J (2008) Online consumer review: Word-of-mouth as a new element of marketing communication mix. Management Sci. 54(3):477–491.LinkGoogle Scholar
  • Chen Y, Yang S, Zhao Y (2008) A simultaneous model of consumer brand choice and negotiated price. Management Sci. 54(3):538–549.LinkGoogle Scholar
  • Chevalier JA, Mayzlin D (2006) The effect of word of mouth on sales: Online book reviews. J. Marketing Res. 43(3):345–354.CrossrefGoogle Scholar
  • Consumer Reports (2013) Tips on how to bargain and save money - consumer reports. Accessed August 3, 2018, https://www.consumerreports.org/cro/magazine/2013/08/how-to-bargain/index.htm.Google Scholar
  • D’Haultfoeuille X, Durrmeyer I, Février P (2019) Automobile prices in market equilibrium with unobserved price discrimination. Rev. Econom. Stud. 86(5):1973–1998.CrossrefGoogle Scholar
  • Ellis CJ, Fender J (1985) Wage bargaining in a macroeconomic model with rationing. Quart. J. Econom. 100(3):625–650.CrossrefGoogle Scholar
  • Erdem T, Keane MP (1996) Decision-making under uncertainty: Capturing dynamic brand choice processes in turbulent consumer goods markets. Marketing Sci. 15(1):1–20.LinkGoogle Scholar
  • Erdem T, Keane MP, Sun B (2008) A dynamic model of brand choice when price and advertising signal product quality. Marketing Sci. 27(6):1111–1125.LinkGoogle Scholar
  • Federal Trade Commission (2019) Buying a new car. Accessed August 13, 2022, https://consumer.ftc.gov/shopping-and-donating/buying-and-owning-car.Google Scholar
  • Ghose A, Ipeirotis PG, Li B (2012) Designing ranking systems for hotels on travel search engines by mining user-generated and crowdsourced content. Marketing Sci. 31(3):493–520.LinkGoogle Scholar
  • Ghose A, Ipeirotis P, Sundararajan A (2007) Opinion mining using econometrics: A case study on reputation systems. Zaenen A, van den Bosch A, eds. Proc. 45th Annual Meeting Assoc. Comput. Linguistics (Association for Computational Linguistics, Stroudsburg, PA), 416–423.Google Scholar
  • Grennan M (2013) Price discrimination and bargaining: Empirical evidence from medical devices. Amer. Econom. Rev. 103(1):145–177.CrossrefGoogle Scholar
  • Gumbel EJ (1961) Bivariate logistic distributions. J. Amer. Statist. Assoc. 56(294):335–349.CrossrefGoogle Scholar
  • Hausman J, Leonard G, Zona JD (1994) Competitive analysis with differenciated products. Ann. Econom. Statist. (34):143–157.Google Scholar
  • Honka E (2014) Quantifying search and switching costs in the US auto insurance industry. RAND J. Econom. 45(4):847–884.CrossrefGoogle Scholar
  • Huang G (2020) When to haggle, when to hold firm? Lessons from the used‐car retail market. J. Econom. Management Strategy 29(3):579–604.CrossrefGoogle Scholar
  • Huang Y (2019) Learning by doing and the demand for advanced products. Marketing Sci. 38(1):107–128.LinkGoogle Scholar
  • Huang N, Sun T, Chen P, Golden JM (2019) Word-of-mouth system implementation and customer conversion: A randomized field experiment. Inform. Systems Res. 30(3):805–818.LinkGoogle Scholar
  • J.D. Power (2015) 2015 China automotive user media research. Accessed August 3, 2018, https://www.jdpower.com/business/press-releases/2015-china-auto-media-study-ams.Google Scholar
  • Jindal P, Newberry P (2018) To bargain or not to bargain: The role of fixed costs in price negotiations. J. Marketing Res. 55(6):832–851.CrossrefGoogle Scholar
  • Kwark Y, Chen J, Raghunathan S (2014) Online product reviews: Implications for retailers and competing manufacturers. Inform. Systems Res. 25(1):93–110.LinkGoogle Scholar
  • Lee Y-J, Hosanagar K, Tan Y (2015) Do I follow my friends or the crowd? Information cascades in online movie ratings. Management Sci. 61(9):2241–2258.LinkGoogle Scholar
  • Li X, Hitt LM (2010) Price effects in online product reviews: An analytical model and empirical analysis. Management Inform. Systems Quart. 34(4):809–831.CrossrefGoogle Scholar
  • Liu Y (2006) Word of mouth for movies: Its dynamics and impact on box office revenue. J. Marketing 70(3):74–89.CrossrefGoogle Scholar
  • Liu Y, Feng J, Liao X (2017) When online reviews meet sales volume information: Is more or accurate information always better? Inform. Systems Res. 28(4):723–743.LinkGoogle Scholar
  • Lu SF, Rui H (2018) Can we trust online physician ratings? Evidence from cardiac surgeons in Florida. Management Sci. 64(6):2557–2573.LinkGoogle Scholar
  • Lucking-Reiley D, Bryan D, Prasad N, Reeves D (2007) Pennies from eBay: The determinants of price in online auctions. J. Industry Econom. 55(2):223–233.CrossrefGoogle Scholar
  • McFadden D (1989) A method of simulated moments for estimation of discrete response models without numerical integration. Econometrica 57(5):995–1026.CrossrefGoogle Scholar
  • Nash JF Jr (1950) The bargaining problem. Econometrica 18(2):155–162.CrossrefGoogle Scholar
  • Netzer O, Feldman R, Goldenberg J, Fresko M (2012) Mine your own business: Market-structure surveillance through text mining. Marketing Sci. 31(3):521–543.LinkGoogle Scholar
  • Nevo A (2001) Measuring market power in the ready-to-eat cereal industry. Econometrica 69(2):307–342.CrossrefGoogle Scholar
  • Pavlou PA, Dimoka A (2006) The nature and role of feedback text comments in online marketplaces: Implications for trust building, price premiums, and seller differentiation. Inform. Systems Res. 17(4):392–414.LinkGoogle Scholar
  • Petrin A, Train K (2010) A control function approach to endogeneity in consumer choice models. J. Marketing Res. 47(1):3–13.CrossrefGoogle Scholar
  • Ratchford BT, Srinivasan N (1993) An empirical investigation of returns to search. Marketing Sci. 12(1):73–87.LinkGoogle Scholar
  • Seiler S, Yao S, Wang W (2017) Does online word of mouth increase demand?(and how?) Evidence from a natural experiment. Marketing Sci. 36(6):838–861.LinkGoogle Scholar
  • True Car (2018) U.S. new auto revenue tops China by 39%. https://www.prnewswire.com/news-releases/us-new-auto-revenue-tops-china-by-39-300047224.html.Google Scholar
  • White MC (2012) 12 things you should always haggle over. Accessed August 3, 2018, https://business.time.com/2012/08/13/12-things-you-should-always-haggle-over/.Google Scholar
  • Wu C, Che H, Chan TY, Lu X (2015) The economic value of online reviews. Marketing Sci. 34(5):739–754.LinkGoogle Scholar
  • Yan D, Pena-Marin J (2017) Round off the bargaining: The effects of offer roundness on willingness to accept. J. Consumer Res. 44(2):381–395.CrossrefGoogle Scholar
  • Zettelmeyer F, Morton FS, Silva-Risso J (2006) How the Internet lowers prices: Evidence from matched survey and automobile transaction data. J. Marketing Res. 43(2):168–181.CrossrefGoogle Scholar
  • Zhang L, Chung DJ (2020) Price bargaining and competition in online platforms: An empirical analysis of the daily deal market. Marketing Sci. 39(4):687–706.LinkGoogle Scholar
  • Zhang X, Manchanda P, Chu J (2021) “Meet me halfway”: The costs and benefits of bargaining. Marketing Sci. 40(6):1081–1105.AbstractGoogle Scholar
  • Zhao Y, Zhao Y, Helsen K (2011) Consumer learning in a turbulent market environment: Modeling consumer choice dynamics after a product-harm crisis. J. Marketing Res. 48(2):255–267.CrossrefGoogle Scholar
  • Zhu F, Zhang X (2010) Impact of online consumer reviews on sales: The moderating role of product and consumer characteristics. J. Marketing 74(2):133–148.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.