IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v39y2017icp201-207.html
   My bibliography  Save this article

Examining impacts of negative reviews and purchase goals on consumer purchase decision

Author

Listed:
  • Weisstein, Fei L.
  • Song, Lei
  • Andersen, Peter
  • Zhu, Ying

Abstract

Extensive literature has studied the impact of positive online reviews on consumers’ purchase decisions. Research on the role of negative reviews in consumer price perception is heavily under-investigated. This study examines effects of negative reviews on consumer price perception and subsequent purchase behavior while considering the moderating effect of purchase goals. Results from two experiments show that the proportion of negative reviews has stronger negative impacts on purchase decision for consumers with a purchase goal than those without. This research contributes to growing knowledge about negative online reviews and consumer goal literature and offers practical implications for online retailers.

Suggested Citation

  • Weisstein, Fei L. & Song, Lei & Andersen, Peter & Zhu, Ying, 2017. "Examining impacts of negative reviews and purchase goals on consumer purchase decision," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 201-207.
    • Handle: RePEc:eee:joreco:v:39:y:2017:i:c:p:201-207
    DOI: 10.1016/j.jretconser.2017.08.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698917303120
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2017.08.015?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. Choy Johnn Yee & Ng Cheng San, 2011. "Consumers' Perceived Quality, Perceived Value and Perceived Risk Towards Purchase Decision on Automobile," American Journal of Economics and Business Administration, Science Publications, vol. 3(1), pages 47-57, January.
    2. Babin, Barry J & Darden, William R & Griffin, Mitch, 1994. "Work and/or Fun: Measuring Hedonic and Utilitarian Shopping Value," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(4), pages 644-656, March.
    3. Yijuan Chen & Xiangting Hu & Sanxi Li, 2014. "On firm choice between online and physical markets," ANU Working Papers in Economics and Econometrics 2014-619, Australian National University, College of Business and Economics, School of Economics.
    4. Nikolay Archak & Anindya Ghose & Panagiotis G. Ipeirotis, 2011. "Deriving the Pricing Power of Product Features by Mining Consumer Reviews," Management Science, INFORMS, vol. 57(8), pages 1485-1509, August.
    5. 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.
    6. Engler, Tobias H. & Winter, Patrick & Schulz, Michael, 2015. "Understanding online product ratings: A customer satisfaction model," Journal of Retailing and Consumer Services, Elsevier, vol. 27(C), pages 113-120.
    7. ., 2014. "Online and Local Booksellers," Chapters, in: Common Innovation, chapter 9, pages 74-80, Edward Elgar Publishing.
    8. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    9. Wang, Yong Jian & Minor, Michael S. & Wei, Jie, 2011. "Aesthetics and the online shopping environment: Understanding consumer responses," Journal of Retailing, Elsevier, vol. 87(1), pages 46-58.
    10. Andrew E. Wilson & Michael D. Giebelhausen & Michael K. Brady, 2017. "Negative word of mouth can be a positive for consumers connected to the brand," Journal of the Academy of Marketing Science, Springer, vol. 45(4), pages 534-547, July.
    11. David Godes & Dina Mayzlin, 2004. "Using Online Conversations to Study Word-of-Mouth Communication," Marketing Science, INFORMS, vol. 23(4), pages 545-560, June.
    12. Zaichkowsky, Judith Lynne, 1985. "Measuring the Involvement Construct," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 12(3), pages 341-352, December.
    13. Duan, Wenjing & Gu, Bin & Whinston, Andrew B., 2008. "The dynamics of online word-of-mouth and product sales—An empirical investigation of the movie industry," Journal of Retailing, Elsevier, vol. 84(2), pages 233-242.
    14. Bambauer-Sachse, Silke & Mangold, Sabrina, 2011. "Brand equity dilution through negative online word-of-mouth communication," Journal of Retailing and Consumer Services, Elsevier, vol. 18(1), pages 38-45.
    15. Chris Forman & Anindya Ghose & Batia Wiesenfeld, 2008. "Examining the Relationship Between Reviews and Sales: The Role of Reviewer Identity Disclosure in Electronic Markets," Information Systems Research, INFORMS, vol. 19(3), pages 291-313, September.
    16. Rao, Akshay R & Monroe, Kent B, 1988. "The Moderating Effect of Prior Knowledge on Cue Utilization in Product Evaluations," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(2), pages 253-264, September.
    17. Yong Zhang & Francis Chin & Hing-Fung Ting, 2014. "Online pricing for bundles of multiple items," Journal of Global Optimization, Springer, vol. 58(2), pages 377-387, February.
    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. 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. Du, Jiangang & Zhu, Liya & Ma, Yuanning & Zhang, Yu, 2024. "Beyond weekdays: The impact of the weekend effect on eWOM of hedonic product," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    3. Bai, Yanzhuang & Li, Tingwu & Zheng, Chundong, 2022. "Is there any value in the online reviews of remedial satisfied customers? An empirical study in the hospitality industry," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    4. Fan Zou & Yupeng Li & Jiahuan Huang, 2022. "Group interaction and evolution of customer reviews based on opinion dynamics towards product redesign," Electronic Commerce Research, Springer, vol. 22(4), pages 1131-1151, December.
    5. Kaushik, Kapil & Mishra, Rajhans & Rana, Nripendra P. & Dwivedi, Yogesh K., 2018. "Exploring reviews and review sequences on e-commerce platform: A study of helpful reviews on Amazon.in," Journal of Retailing and Consumer Services, Elsevier, vol. 45(C), pages 21-32.
    6. Le Bo & Yimo Chen & Xiaoli Yang, 2023. "The Impact of Contradictory Online Reviews on Consumer Online Purchase Decision: Experimental Evidence From China," SAGE Open, , vol. 13(2), pages 21582440231, June.
    7. Prateep Puengwattanapong & Adisorn Leelasantitham, 2022. "A Holistic Perspective Model of Plenary Online Consumer Behaviors for Sustainable Guidelines of the Electronic Business Platforms," Sustainability, MDPI, vol. 14(10), pages 1-38, May.
    8. Ismagilova, Elvira & Dwivedi, Yogesh K. & Slade, Emma, 2020. "Perceived helpfulness of eWOM: Emotions, fairness and rationality," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    9. Petcharat, Thanatchaphan & Jattamart, Aungkana & Leelasantitham, Adisorn, 2023. "A conceptual model to imply a negative innovation assessment framework on consumer behaviors through the electronic business platforms," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    10. Büyükdağ, Naci & Soysal, Ayşe Nur & Ki̇tapci, Olgun, 2020. "The effect of specific discount pattern in terms of price promotions on perceived price attractiveness and purchase intention: An experimental research," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    11. Fernandes, Semila & Panda, Rajesh & Venkatesh, V.G. & Swar, Biranchi Narayan & Shi, Yangyan, 2022. "Measuring the impact of online reviews on consumer purchase decisions – A scale development study," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    12. Moon, Sangkil & Jalali, Nima & Erevelles, Sunil, 2021. "Segmentation of both reviewers and businesses on social media," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    13. Nabhassorn Atchariyakarn & Jing Zhang, 2021. "A systematic review of perceived value toward online review on s-commerce platform," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(3), pages 46-52, April.
    14. Jeseviciute-Ufartiene Laima, 2019. "Consumer Involvement in the Purchasing Process: Consciousness of the Choice," Economics and Culture, Sciendo, vol. 16(1), pages 126-136, June.
    15. Elizabeth Kempen & Lorna Christie, 2022. "Designing to Attract in an Emerging Market: Applying Behavioural Reasoning Theory to South African Consumer Reactions to an Ultra-High Temperature Milk Product Line Extension," Journal of Marketing and Consumer Behaviour in Emerging Markets, University of Warsaw, Faculty of Management, vol. 1(14), pages 4-21.
    16. Shankar, Amit & Jebarajakirthy, Charles & Ashaduzzaman, Md, 2020. "How do electronic word of mouth practices contribute to mobile banking adoption?," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    17. Li, Kunlin & Chen, Yuhan & Zhang, Liyi, 2020. "Exploring the influence of online reviews and motivating factors on sales: A meta-analytic study and the moderating role of product category," Journal of Retailing and Consumer Services, Elsevier, vol. 55(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. Marchand, André & Hennig-Thurau, Thorsten & Wiertz, Caroline, 2017. "Not all digital word of mouth is created equal: Understanding the respective impact of consumer reviews and microblogs on new product success," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 336-354.
    2. 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.
    3. Zhen Li & Aoi Shimizu, 2018. "Impact of Online Customer Reviews on Sales Outcomes: An Empirical Study Based on Prospect Theory," The Review of Socionetwork Strategies, Springer, vol. 12(2), pages 135-151, December.
    4. Yabing Jiang & Hong Guo, 2012. "Design of Consumer Review Systems and Product Pricing," Working Papers 12-10, NET Institute.
    5. 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.
    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. 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.
    8. Sulin Ba & Yuan Jin & Xinxin Li & Xianghua Lu, 2020. "One Size Fits All? The Differential Impact of Online Reviews and Coupons," Production and Operations Management, Production and Operations Management Society, vol. 29(10), pages 2403-2424, October.
    9. Young Kwark & Gene Moo Lee & Paul A. Pavlou & Liangfei Qiu, 2021. "On the Spillover Effects of Online Product Reviews on Purchases: Evidence from Clickstream Data," Information Systems Research, INFORMS, vol. 32(3), pages 895-913, September.
    10. Hyejin Mun & Chul Ho Lee & Hyunju Jung & Ceran Yasin, 2023. "Clash of reputation and status in online reviews," Information Technology and Management, Springer, vol. 24(1), pages 55-77, March.
    11. Hernández-Ortega, Blanca, 2020. "When the performance comes into play: The influence of positive online consumer reviews on individuals' post-consumption responses," Journal of Business Research, Elsevier, vol. 113(C), pages 422-435.
    12. 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.
    13. Yabing Jiang & Hong Guo, 2015. "Design of Consumer Review Systems and Product Pricing," Information Systems Research, INFORMS, vol. 26(4), pages 714-730, December.
    14. 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.
    15. Hu, Ye & Li, Xinxin, 2011. "Context-Dependent Product Evaluations: An Empirical Analysis of Internet Book Reviews," Journal of Interactive Marketing, Elsevier, vol. 25(3), pages 123-133.
    16. Ji Wu & Haichuan Zhao & Haipeng (Allan) Chen, 2021. "Coupons or Free Shipping? Effects of Price Promotion Strategies on Online Review Ratings," Information Systems Research, INFORMS, vol. 32(2), pages 633-652, June.
    17. Zhen Li & Fangzhou Li & Jing Xiao & Zhi Yang, 2020. "Topic Features in Negative Customer Reviews: Evidence Based on Text Data Mining," The Review of Socionetwork Strategies, Springer, vol. 14(1), pages 19-40, April.
    18. Kordrostami, Elika & Rahmani, Vahid, 2020. "Investigating conflicting online review information:evidence from Amazon.com," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    19. Li, Yiming & Li, Gang & Tayi, Giri Kumar & Cheng, T.C.E., 2019. "Omni-channel retailing: Do offline retailers benefit from online reviews?," International Journal of Production Economics, Elsevier, vol. 218(C), pages 43-61.
    20. Tao Lu & May Yuan & Chong (Alex) Wang & Xiaoquan (Michael) Zhang, 2022. "Histogram Distortion Bias in Consumer Choices," Management Science, INFORMS, vol. 68(12), pages 8963-8978, December.

    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:joreco:v:39:y:2017:i:c:p:201-207. 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: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    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.