History Matters: The Impact of Online Customer Reviews Across Product Generations

Published Online:https://doi.org/10.1287/mnsc.2021.4061

References

  • Aronson L, Niehaus B, Hill-Sakurai L, Lai C, O'Sullivan PS (2012) A comparison of two methods of teaching reflective ability in Year 3 medical students. Medical Ed. 46(8):807–814.CrossrefGoogle Scholar
  • Ausubel LM, Deneckere RJ (1989) Reputation in bargaining and durable goods monopoly. Econometrica 57(3):511–531.CrossrefGoogle Scholar
  • Bartlett FC (1932) Remembering: An Experimental and Social Study (Cambridge University, Cambridge, United Kingdom).Google Scholar
  • Bass FM, Bultez AV (1982) Technical note—a note on optimal strategic pricing of technological innovations. Marketing Sci. 1(4):371–378.LinkGoogle Scholar
  • Besanko D, Winston WL (1990) Optimal price skimming by a monopolist facing rational consumers. Management Sci. 36(5):555–567.LinkGoogle Scholar
  • Bond EW, Samuelson L (1984) Durable good monopolies with rational expectations and replacement sales. RAND J. Econom. 15(3):336–345.CrossrefGoogle Scholar
  • Borkovsky RN (2017) The timing of version releases: A dynamic duopoly model. Quant. Marketing Econom. 15(3):187–239.CrossrefGoogle Scholar
  • Brynjolfsson E, Hu Y, Smith MD (2003) Consumer surplus in the digital economy: Estimating the value of increased product variety at online booksellers. Management Sci. 49(11):1580–1596.LinkGoogle 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 P-Y, Wu S-y, Yoon J (2004) The impact of online recommendations and consumer feedback on sales. Proc. Internat. Conf. Inform. Systems (ICIS 2004) (Association for Information Systems, Atlanta), 711–724.Google Scholar
  • Cheung CM, Lee MK (2012) What drives consumers to spread electronic word of mouth in online consumer-opinion platforms. Decision Support Systems 53(1):218–225.CrossrefGoogle 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
  • 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):944–959.LinkGoogle Scholar
  • Choi JP (1994) Network externality, compatibility choice, and planned obsolescence. J. Indust. Econom. 42(2):167–182.CrossrefGoogle Scholar
  • Clemons EK, Gao GG, Hitt LM (2006) When online reviews meet hyperdifferentiation: A study of the craft beer industry. J. Management Inform. Systems 23(2):149–171.CrossrefGoogle Scholar
  • Coase RH (1972) Durability and monopoly. J. Law Econom. 15(1):143–149.CrossrefGoogle Scholar
  • Cox DF, ed. (1967) Risk Taking and Information Handling in Consumer Behavior (Harvard University, Boston).Google Scholar
  • Danaher PJ, Hardie BG, Putsis WP Jr (2001) Marketing-mix variables and the diffusion of successive generations of a technological innovation. J. Marketing Res. 38(4):501–514.CrossrefGoogle Scholar
  • Dellarocas C, Narayan R (2006) A statistical measure of a population’s propensity to engage in post-purchase online word-of-mouth. Statist. Sci. 21(2):277–285.CrossrefGoogle 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.CrossrefGoogle Scholar
  • Dhebar A (1994) Durable-goods monopolists, rational consumers, and improving products. Marketing Sci. 13(1):100–120.LinkGoogle Scholar
  • Dhebar A (1996) Speeding high-tech producer, meet the balking consumer. Sloan Management Rev. 37(2):37–49.Google Scholar
  • Duan W, Gu B, Whinston AB (2008a) Do online reviews matter?—an empirical investigation of panel data. Decision Support Systems 45(4):1007–1016.CrossrefGoogle Scholar
  • Duan W, Gu B, Whinston AB (2008b) The dynamics of online word-of-mouth and product sales—an empirical investigation of the movie industry. J. Retailing 84(2):233–242.CrossrefGoogle Scholar
  • Ellison G, Fudenberg D (2000) The Neo-Luddites lament: Too many upgrades in the software industry. RAND J. Econom. 31:253–272.CrossrefGoogle Scholar
  • Floyd K, Freling R, Alhoqail S, Cho HY, Freling T (2014) How online product reviews affect retail sales: A meta-analysis. J. Retailing 90(2):217–232.CrossrefGoogle Scholar
  • Forman C, Ghose A, Wiesenfeld B (2008) Examining the relation- ship between reviews and sales: The role of reviewer identity disclosure in electronic markets. Inform. Systems Res. 19(3):291–313.LinkGoogle Scholar
  • Frey D, Schulz-Hardt S, Stahlberg D (2013) Information seeking among individuals and groups and possible consequences for decision-making in business and politics. Witte EH, Davis JH, eds., Understanding Group Behavior, Vol. 2. Small Group Processes and Interpersonal Relations (Lawrence Erlbaum Associates, Inc., Mahwah, NJ), 211–225.Google Scholar
  • Fuchs W, Skrzypacz A (2010) Bargaining with arrival of new traders. Amer. Econom. Rev. 100(3):802–836.CrossrefGoogle Scholar
  • Fudenberg D, Tirole J (1998) Upgrades, tradeins, and buybacks. RAND J. Econom. 29(2):235–258.CrossrefGoogle Scholar
  • Ghose A, Sundararajan A (2006) Evaluating pricing strategy using e-commerce data: Evidence and estimation challenges. Statist. Sci. 21(2):131–142.CrossrefGoogle Scholar
  • Godes D, Mayzlin D (2004) Using online conversations to study word-of-mouth communication. Marketing Sci. 23(4):545–560.LinkGoogle Scholar
  • Godes D, Mayzlin D (2009) Firm-created word-of-mouth communication: Evidence from a field test. Marketing Sci. 28(4):721–739.LinkGoogle Scholar
  • Godes D, Silva J (2012) The sequential and temporal dynamics of online opinion. Marketing Sci. 31(3):448–473.LinkGoogle Scholar
  • Goolsbee A, Chevalier J (2002) Measuring prices and price competition online: Amazon and Barnes and Noble. NBER Working Paper No. 9085, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Gopal A, Goyal M, Netessine S, Reindorp M (2013) The impact of new product introduction on plant productivity in the North American automotive industry. Management Sci. 59(10):2217–2236.LinkGoogle Scholar
  • Greene WH (2003) Econometric Analysis (Pearson Education, Upper Saddle River, NJ).Google Scholar
  • Gul F, Sonnenschein H, Wilson R (1986) Foundations of dynamic monopoly and the Coase conjecture. J. Econom. Theory 39(1):155–190.CrossrefGoogle Scholar
  • Hardie BG, Johnson EJ, Fader PS (1993) Modeling loss aversion and reference dependence effects on brand choice. Marketing Sci. 12(4):378–394.LinkGoogle Scholar
  • Ho-Dac NN, Carson SJ, Moore WL (2013) The effects of positive and negative online customer reviews: Do brand strength and category maturity matter? J. Marketing 77(6):37–53.CrossrefGoogle Scholar
  • Hu N, Liu L, Zhang JJ (2008) Do online reviews affect product sales? The role of reviewer characteristics and temporal effects. Inform. Tech. Management 9(3):201–214.CrossrefGoogle Scholar
  • Hu N, Pavlou P, Zhang J (2009) Identifying and overcoming self-selection biases in online product reviews. Working paper, Fox School of Business, Temple University, Philadelphia.Google Scholar
  • Huber J, Puto C (1983) Market boundaries and product choice: Illustrating attraction and substitution effects. J. Consumer Res. 10(1):31–44.CrossrefGoogle Scholar
  • Huber J, Payne JW, Puto C (1982) Adding asymmetrically dominated alternatives: Violations of regularity and the similarity hypothesis. J. Consumer Res. 9(1):90–98.CrossrefGoogle Scholar
  • Kahn C (1986) The durable goods monopolist and consistency with increasing costs. Econometrica 54(2):275–294.CrossrefGoogle Scholar
  • Kahneman D, Tversky A (2013) Choices, values, and frames. MacLean LC, Ziemba WT, eds. Handbook of the Fundamentals of Financial Decision Making, World Scientific Handbook in Financial Economics Series, vol. 4 (World Scientific, Hackensack, NJ), 269–278.CrossrefGoogle Scholar
  • Kornish LJ (2001) Pricing for a durable-goods monopolist under rapid sequential innovation. Management Sci. 47(11):1552–1561.LinkGoogle Scholar
  • Kreps D (1988) Notes on the Theory of Choice (Westview Press, New York).Google Scholar
  • Krishnan V, Ramachandran K (2011) Integrated product architecture and pricing for managing sequential innovation. Management Sci. 57(11):2040–2053.LinkGoogle Scholar
  • Kumar N, Benbasat I (2006) Research note: The influence of recommendations and consumer reviews on evaluations of websites. Inform. Systems Res. 17(4):425–439.LinkGoogle Scholar
  • Kumar V, Pansari A (2016) Competitive advantage through engagement. J. Marketing Res. 53(4):497–514.CrossrefGoogle Scholar
  • Kunda Z (1990) The case for motivated reasoning. Psych. Bull. 108(3):480–498.CrossrefGoogle Scholar
  • Kurz-Milcke E, Gigerenzer G (2007) Heuristic decision making. Marketing J. Res. Management 3(1):48–56.Google Scholar
  • Levinthal DA, Purohit D (1989) Durable goods and product obsolescence. Marketing Sci. 8(1):35–56.LinkGoogle Scholar
  • Li X, Hitt LM (2008) Self-selection and information role of online product reviews. Inform. Systems Res. 19(4):456–474.LinkGoogle 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
  • Maddala GS (1992) Introduction to Econometrics (MacMillan, New York).Google Scholar
  • Mas-Colell A, Whinston MD, Green JR (1995) Microeconomic Theory, vol. 1 (Oxford University Press, New York).Google Scholar
  • Moe WW, Schweidel DA (2012) Online product opinions: Incidence, evaluation, and evolution. Marketing Sci. 31(3):372–386.LinkGoogle Scholar
  • Moe WW, Trusov M (2011) The value of social dynamics in online product ratings forums. J. Marketing Res. 48(3):444–456.CrossrefGoogle Scholar
  • Moon S, Bergey PK, Iacobucci D (2010) Dynamic effects among movie ratings, movie revenues, and viewer satisfaction. J. Marketing 74(1):108–121.CrossrefGoogle Scholar
  • Moorman C (2014) CMO Survey Report: Highlights and Insights. Accessed July 10, 2017, https://cmosurvey.org/wp-content/uploads/2017/04/The_CMO_Survey-Highlights_and_Insights-Aug-2014.pdf.Google Scholar
  • Moul CC (2007) Measuring word of mouth’s impact on theatrical movie admissions. J. Econom. Management Strategy 16(4):859–892.CrossrefGoogle Scholar
  • Murray KB (1991) A test of services marketing theory: Consumer information acquisition activities. J. Marketing 55(1):10–25.CrossrefGoogle Scholar
  • Novemsky N, Kahneman D (2005) The boundaries of loss aversion. J. Marketing Res. 42(2):119–128.CrossrefGoogle Scholar
  • Padmanabhan V, Bass FM (1993) Optimal pricing of successive generations of product advances. Internat. J. Res. Marketing 10(2):185–207.CrossrefGoogle Scholar
  • Ramachandran K, Krishnan V (2008) Design architecture and introduction timing for rapidly improving industrial products. Manufacturing Service Oper. Management 10(1):149–171.LinkGoogle Scholar
  • Ross I (1979) An information processing theory of consumer choice. J. Marketing 43(000003):124.CrossrefGoogle Scholar
  • Sankaranarayanan R (2007) Innovation and the durable goods monopolist: The optimality of frequent new-version releases. Marketing Sci. 26(6):774–791.LinkGoogle Scholar
  • Smith JB, Bristor JM (1994) Uncertainty orientation: Explaining differences in purchase involvement and external search. Psych. Marketing 11(6):587–607.CrossrefGoogle Scholar
  • Stock JH, Watson MW (2015) Introduction to Econometrics (Addison-Wesley, Boston).Google Scholar
  • Stokey NL (1981) Rational expectations and durable goods pricing. Bell J. Econom. 12(1):112–128.CrossrefGoogle Scholar
  • Sun M (2012) How does the variance of product ratings matter? Management Sci. 58(4):696–707.LinkGoogle Scholar
  • Tang T, Fang E, Wang F (2014) Is neutral really neutral? The effects of neutral user-generated content on product sales. J. Marketing 78(4):41–58.CrossrefGoogle Scholar
  • Tirunillai S, Tellis GJ (2014) Mining marketing meaning from online chatter: Strategic brand analysis of big data using latent Dirichlet allocation. J. Marketing Res. 51(4):463–479.CrossrefGoogle Scholar
  • Trusov M, Bucklin RE, Pauwels K (2009) Effects of word-of- mouth vs. traditional marketing: Findings from an Internet social networking site. J. Marketing 73(5):90–102.CrossrefGoogle Scholar
  • Tversky A (1972) Elimination by aspects: A theory of choice. Psych. Rev. 79(4):281–299.CrossrefGoogle Scholar
  • Villanueva J, Yoo S, Hanssens DM (2009) The impact of marketing induced vs. word-of-mouth customer acquisition on customer equity growth. J. Marketing Res. 45(1):48–59.CrossrefGoogle Scholar
  • Waldman M (1993) A new perspective on planned obsolescence. Quart. J. Econom. 108(1):273–283.CrossrefGoogle Scholar
  • Wooldridge JM (2003) Introductory Econometrics: A Modern Approach (Nelson Education, Toronto).Google Scholar
  • Wu F, Huberman B (2008) How public opinion forms. Papadimitrou C, Zhang S, eds. Internet and Network Economics, Lecture Notes in Computer Science, vol. 5385 (Springer, Berlin), 334–341.CrossrefGoogle Scholar
  • Wu C, Che H, Chan TY, Lu X (2015) The economic value of online reviews. Marketing Sci. 34(5):739–754.LinkGoogle Scholar
  • Yazdani E, Gopinath S, Carson S (2018) Preaching to the choir: The chasm between top-ranked reviewers, mainstream customers, and product sales. Marketing Sci. 37(5):838–851.LinkGoogle Scholar
  • Zhang XXM (2006) Tapping into the pulse of the market: Essays on marketing implications of information flows. Doctoral dissertation, Massachusetts Institute of Technology, Cambridge, MA.Google 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.