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More Is Less: Only Moderate Polarized Online Product Reviews can Affect Sales

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  • Li Yang

Abstract

It is widely proved that positive online word-of-mouth (WOM) can boost sales and negative online WOM harm sales. Then will more positivity or negativity of messages in online product reviews text have greater impact on product sales? This research attempts to tackle this ignored research question. The answer is counter-intuitive- it depends on how positive or negative they are! The results of a two-way fixed-effects panel data analysis based on the data about tablet market in Amazon and a novel sentiment analysis technique demonstrate that the most and least polarized online product reviews actually have no effect on sales and only moderate positive / negative reviews can affect sales. Such effects can be explained by the optimal arousal theory and attribution theory. Inspired by the findings, three strategies for user-generated content (UGC) management are proposed.

Suggested Citation

  • Li Yang, 2018. "More Is Less: Only Moderate Polarized Online Product Reviews can Affect Sales," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(4), pages 192-192, March.
    • Handle: RePEc:ibn:ijbmjn:v:13:y:2018:i:4:p:192
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    References listed on IDEAS

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    Cited by:

    1. Hye-Ryeong Shin & Jeong-Gil Choi, 2021. "The Moderating Effect of ‘Generation’ on the Relations between Source Credibility of Social Media Contents, Hotel Brand Image, and Purchase Intention," Sustainability, MDPI, vol. 13(16), pages 1-16, August.
    2. 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.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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