The Impact of User Review Volume on Consumers' Willingness-to-Pay: A Consumer Uncertainty Perspective

Yinglu Wu and Jianan Wu

Journal of Interactive Marketing, 2016, vol. 33, issue C, 43-56

Abstract: Numerous studies have investigated the impact of review volume and review variance on product price, but their findings are mixed. The perspective of mismatch cost framework (e.g., Sun 2012) argues that, at the market level, the impact of review variance on product price varies with review valence due to diverse product tastes across individuals. The perspective of classic expected utility framework (e.g., Wu and Ayala Gaytán 2013; Wu et al. 2013) further argues that heterogeneous risk attitudes across individuals directly drives the varying impact of both review volume and variance on willingness-to-pay, regardless of review valence. Although both frameworks have gained good empirical support, neither of them probed whether the impact of review volume or review variance varies within an individual.

Keywords: Online user review; Willingness-to-pay; Prospect theory (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joinma:v:33:y:2016:i:c:p:43-56

DOI: 10.1016/j.intmar.2015.11.001

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