IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v136y2021icp209-218.html
   My bibliography  Save this article

The impact of online review variance of new products on consumer adoption intentions

Author

Listed:
  • Wu, Yuanyuan
  • Liu, Tianjiao
  • Teng, Lefa
  • Zhang, Hui
  • Xie, Chenxin

Abstract

Contributing to the literature on online review variance, we investigate consumer adoption intentions in three studies looking at various perspectives regarding new products. Study 1 demonstrates that really new products (RNPs) with low review variance lead to higher adoption intentions, while incrementally new products (INPs) with high review variance lead to higher adoption intentions. Study 2 shows that risk perceptions and uniqueness perceptions are the mechanisms underlying the interaction effect between product newness and online review variance. Study 3 considers cultural values to explore the premise’s boundary, finding that indulgent consumers tend to prefer INPs with high variance reviews while restrained consumers are more likely to adopt RNPs with low variance. These findings offer theoretical and managerial implications for managing the online review variance of new products.

Suggested Citation

  • Wu, Yuanyuan & Liu, Tianjiao & Teng, Lefa & Zhang, Hui & Xie, Chenxin, 2021. "The impact of online review variance of new products on consumer adoption intentions," Journal of Business Research, Elsevier, vol. 136(C), pages 209-218.
    • Handle: RePEc:eee:jbrese:v:136:y:2021:i:c:p:209-218
    DOI: 10.1016/j.jbusres.2021.07.014
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S014829632100494X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2021.07.014?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Michel Borgh & Jeroen Schepers, 2018. "Are conservative approaches to new product selling a blessing in disguise?," Journal of the Academy of Marketing Science, Springer, vol. 46(5), pages 857-878, September.
    2. Dwivedi, Abhishek & Nayeem, Tahmid & Murshed, Feisal, 2018. "Brand experience and consumers’ willingness-to-pay (WTP) a price premium: Mediating role of brand credibility and perceived uniqueness," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 100-107.
    3. Kent D. Miller & Frances Fabian & Shu‐Jou Lin, 2009. "Strategies for online communities," Strategic Management Journal, Wiley Blackwell, vol. 30(3), pages 305-322, March.
    4. Sparks, Beverley A. & So, Kevin Kam Fung & Bradley, Graham L., 2016. "Responding to negative online reviews: The effects of hotel responses on customer inferences of trust and concern," Tourism Management, Elsevier, vol. 53(C), pages 74-85.
    5. Ashwani Monga & Rajesh Bagchi, 2012. "Years, Months, and Days versus 1, 12, and 365: The Influence of Units versus Numbers," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 39(1), pages 185-198.
    6. Agnieszka Zablocki & Bodo Schlegelmilch & Michael J. Houston, 2019. "How valence, volume and variance of online reviews influence brand attitudes," AMS Review, Springer;Academy of Marketing Science, vol. 9(1), pages 61-77, June.
    7. Zoey Chen & Jonah Berger, 2013. "When, Why, and How Controversy Causes Conversation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 40(3), pages 580-593.
    8. Xinxin Li & Lorin M. Hitt, 2008. "Self-Selection and Information Role of Online Product Reviews," Information Systems Research, INFORMS, vol. 19(4), pages 456-474, December.
    9. Niraj Dawar & Phillip M Parker & Lydia J Price, 1996. "A Cross-Cultural Study of Interpersonal Information Exchange," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(3), pages 497-516, September.
    10. Wang, Fang & Menon, Kalyani & Ranaweera, Chatura, 2018. "Dynamic trends in online product ratings: A diagnostic utility explanation," Journal of Business Research, Elsevier, vol. 87(C), pages 80-89.
    11. Simonson, Itamar & Nowlis, Stephen M, 2000. "The Role of Explanations and Need for Uniqueness in Consumer Decision Making: Unconventional Choices Based on Reasons," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 27(1), pages 49-68, June.
    12. Campbell, Margaret C & Goodstein, Ronald C, 2001. "The Moderating Effect of Perceived Risk on Consumers' Evaluations of Product Incongruity: Preference for the Norm," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 28(3), pages 439-449, December.
    13. Moro, Sérgio & Pires, Guilherme & Rita, Paulo & Cortez, Paulo, 2020. "A cross-cultural case study of consumers' communications about a new technological product," Journal of Business Research, Elsevier, vol. 121(C), pages 438-447.
    14. Moreau, C Page & Markman, Arthur B & Lehmann, Donald R, 2001. ""What Is It?" Categorization Flexibility and Consumers' Responses to Really New Products," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 27(4), pages 489-498, March.
    15. Jacob Goldenberg & Donald R. Lehmann & David Mazursky, 2001. "The Idea Itself and the Circumstances of Its Emergence as Predictors of New Product Success," Management Science, INFORMS, vol. 47(1), pages 69-84, January.
    16. Tian, Kelly Tepper & Bearden, William O & Hunter, Gary L, 2001. "Consumer's Need for Uniqueness: Scale Development and Validation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 28(1), pages 50-66, June.
    17. Cheng, Yi-Hsiu & Ho, Hui-Yi, 2015. "Social influence's impact on reader perceptions of online reviews," Journal of Business Research, Elsevier, vol. 68(4), pages 883-887.
    18. Wang, Feng & Liu, Xuefeng & Fang, Eric (Er), 2015. "User Reviews Variance, Critic Reviews Variance, and Product Sales: An Exploration of Customer Breadth and Depth Effects," Journal of Retailing, Elsevier, vol. 91(3), pages 372-389.
    19. Monic Sun, 2012. "How Does the Variance of Product Ratings Matter?," Management Science, INFORMS, vol. 58(4), pages 696-707, April.
    20. Simonson, Itamar & Nowlis, Stephen M., 2000. "The Role of Explanations and Need for Uniqueness in Consumer Decision Making: Unconventional Choices Based on Reasons," Research Papers 1610, Stanford University, Graduate School of Business.
    21. Kelly L. Haws & Cait Poynor, 2008. "Seize the Day! Encouraging Indulgence for the Hyperopic Consumer," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(4), pages 680-691, September.
    22. Tata, Sai Vijay & Prashar, Sanjeev & Gupta, Sumeet, 2020. "An examination of the role of review valence and review source in varying consumption contexts on purchase decision," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    23. Reimer, Thomas & Benkenstein, Martin, 2016. "When good WOM hurts and bad WOM gains: The effect of untrustworthy online reviews," Journal of Business Research, Elsevier, vol. 69(12), pages 5993-6001.
    24. Storey, Chris & Easingwood, Christopher J., 1999. "Types of New Product Performance: Evidence from the Consumer Financial Services Sector," Journal of Business Research, Elsevier, vol. 46(2), pages 193-203, October.
    25. Gregan-Paxton, Jennifer & John, Deborah Roedder, 1997. "Consumer Learning by Analogy: A Model of Internal Knowledge Transfer," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(3), pages 266-284, December.
    26. Jiménez, Fernando R. & Mendoza, Norma A., 2013. "Too Popular to Ignore: The Influence of Online Reviews on Purchase Intentions of Search and Experience Products," Journal of Interactive Marketing, Elsevier, vol. 27(3), pages 226-235.
    27. Khare, Adwait & Labrecque, Lauren I. & Asare, Anthony K., 2011. "The Assimilative and Contrastive Effects of Word-of-Mouth Volume: An Experimental Examination of Online Consumer Ratings," Journal of Retailing, Elsevier, vol. 87(1), pages 111-126.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Fu & Wei, Haiying & Wang, Xingyuan & Zhu, Zhenzhong & Chen, Haipeng Allan, 2023. "The influence of online review dispersion on consumers’ purchase intention: The moderating role of dialectical thinking," Journal of Business Research, Elsevier, vol. 165(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zheng, Lili, 2021. "The classification of online consumer reviews: A systematic literature review and integrative framework," Journal of Business Research, Elsevier, vol. 135(C), pages 226-251.
    2. Dörnyei, Krisztina Rita & Lunardo, Renaud, 2021. "When limited edition packages backfire: The role of emotional value, typicality and need for uniqueness," Journal of Business Research, Elsevier, vol. 137(C), pages 233-243.
    3. Liu, Fu & Wei, Haiying & Wang, Xingyuan & Zhu, Zhenzhong & Chen, Haipeng Allan, 2023. "The influence of online review dispersion on consumers’ purchase intention: The moderating role of dialectical thinking," Journal of Business Research, Elsevier, vol. 165(C).
    4. Nima Jalali & Sangkil Moon & Moon-Yong Kim, 2023. "Profiling diverse reviewer segments using online reviews of service industries," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(2), pages 130-148, June.
    5. Wang, Feng & Liu, Xuefeng & Fang, Eric (Er), 2015. "User Reviews Variance, Critic Reviews Variance, and Product Sales: An Exploration of Customer Breadth and Depth Effects," Journal of Retailing, Elsevier, vol. 91(3), pages 372-389.
    6. Dominik Gutt & Jürgen Neumann & Steffen Zimmermann & Dennis Kundisch & Jianqing Chen, 2018. "Design of Review Systems - A Strategic Instrument to shape Online Review Behavior and Economic Outcomes," Working Papers Dissertations 42, Paderborn University, Faculty of Business Administration and Economics.
    7. Jake Hoskins & Shyam Gopinath & J. Cameron Verhaal & Elham Yazdani, 2021. "The influence of the online community, professional critics, and location similarity on review ratings for niche and mainstream brands," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1065-1087, November.
    8. Guangming Xie & Wenbo Du & Hongping Yuan & Yushi Jiang, 2021. "Promoting Reviewer-Related Attribution: Moderately Complex Presentation of Mixed Opinions Activates the Analytic Process," Sustainability, MDPI, vol. 13(2), pages 1-28, January.
    9. Román, Sergio & Riquelme, Isabel P. & Iacobucci, Dawn, 2023. "Fake or credible? Antecedents and consequences of perceived credibility in exaggerated online reviews," Journal of Business Research, Elsevier, vol. 156(C).
    10. Agnieszka Zablocki & Bodo Schlegelmilch & Michael J. Houston, 2019. "How valence, volume and variance of online reviews influence brand attitudes," AMS Review, Springer;Academy of Marketing Science, vol. 9(1), pages 61-77, June.
    11. Sahi, Gurjeet Kaur & Devi, Rita & Gupta, Mahesh C. & Cheng, T.C.E., 2022. "Assessing co-creation based competitive advantage through consumers’ need for differentiation," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    12. Gierl, Heribert & Huettl, Verena, 2010. "Are scarce products always more attractive? The interaction of different types of scarcity signals with products' suitability for conspicuous consumption," International Journal of Research in Marketing, Elsevier, vol. 27(3), pages 225-235.
    13. Wang, Fang & Menon, Kalyani & Ranaweera, Chatura, 2018. "Dynamic trends in online product ratings: A diagnostic utility explanation," Journal of Business Research, Elsevier, vol. 87(C), pages 80-89.
    14. Xie, Guangming & Lü, Kevin & Gupta, Suraksha & Jiang, Yushi & Shi, Li, 2021. "How Dispersive Opinions Affect Consumer Decisions: Endowment Effect Guides Attributional Inferences," Journal of Retailing, Elsevier, vol. 97(4), pages 621-638.
    15. Floyd, Kristopher & Freling, Ryan & Alhoqail, Saad & Cho, Hyun Young & Freling, Traci, 2014. "How Online Product Reviews Affect Retail Sales: A Meta-analysis," Journal of Retailing, Elsevier, vol. 90(2), pages 217-232.
    16. Xitong Li, 2018. "Impact of Average Rating on Social Media Endorsement: The Moderating Role of Rating Dispersion and Discount Threshold," Information Systems Research, INFORMS, vol. 29(3), pages 739-754, September.
    17. Chinonso E. Etumnu & Kenneth Foster & Nicole O. Widmar & Jayson L. Lusk & David L. Ortega, 2020. "Does the distribution of ratings affect online grocery sales? Evidence from Amazon," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 501-521, October.
    18. King, Robert Allen & Racherla, Pradeep & Bush, Victoria D., 2014. "What We Know and Don't Know About Online Word-of-Mouth: A Review and Synthesis of the Literature," Journal of Interactive Marketing, Elsevier, vol. 28(3), pages 167-183.
    19. Vandecasteele, Bert & Geuens, Maggie, 2010. "Motivated Consumer Innovativeness: Concept, measurement, and validation," International Journal of Research in Marketing, Elsevier, vol. 27(4), pages 308-318.
    20. Kim, Jungkeun & Spence, Mark T. & Marshall, Roger, 2018. "The Color of Choice: The Influence of Presenting Product Information in Color on the Compromise Effect," Journal of Retailing, Elsevier, vol. 94(2), pages 167-185.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:136:y:2021:i:c:p:209-218. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.