How Do Word-of-Mouth Reviews Affect Product Sales? Applying the Stock Market Analogy to Online Stores

Authors

Knowledge@SMU

Publication Type

Journal Article

Publication Date

9-2007

Abstract

Online word-of-mouth communication -- such as product reviews by consumers -- has become a major information source about product quality. Singapore Management University information systems professor Nan Hu and his team investigated both quantitative and qualitative aspects of online reviews using Amazon.com as their study base. They found that, besides review scores, consumers do pay attention to other contextual information such as a reviewer’s reputation and exposure. Hu’s research also showed that the longer an item is on the market, the smaller the impact of online reviews on sales.

Disciplines

Business | Marketing

Copyright Owner and Holder

Copyright © Singapore Management University 2012

Licece/Creative Commons Licence

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

Article ID

1089

Subject(s)

Marketing

Citation

Knowledge@SMU. How Do Word-of-Mouth Reviews Affect Product Sales? Applying the Stock Market Analogy to Online Stores. (2007).
Available at: https://ink.library.smu.edu.sg/ksmu/305