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Decision-making mechanism of online retailer based on additional online comments of consumers

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  • Liu, Yong
  • Gan, Wen-xue
  • Zhang, Qi

Abstract

With improving capability of providing online comments, more and more e-business firms have been developing their online platforms that enable consumers to offer their comments and user experiences. However, there might be conflicting information contained in initial and additional consumer comments, and that information have different value perceptions for potential consumers. Therefore, it is of great significance for online retailers to investigate subsequent rounds of comments and their relationship with potential consumers' purchasing decisions. Enriching the relevant literature, we develop an analytical model to analyze the impact of online retailers' after-sales service on their profits, leading to discussions of the decision-making mechanism of online retailers. The results show that product pricing is influenced by consumers’ perceived utility through after-sales service, and product-demand mismatch and after-sales service quality play important roles in the performance of the online retailer and the after-sales service expand the amount of positive additional comments, and earn the retailer more profits.

Suggested Citation

  • Liu, Yong & Gan, Wen-xue & Zhang, Qi, 2021. "Decision-making mechanism of online retailer based on additional online comments of consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    • Handle: RePEc:eee:joreco:v:59:y:2021:i:c:s0969698920313977
    DOI: 10.1016/j.jretconser.2020.102389
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    References listed on IDEAS

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