IDEAS home Printed from https://ideas.repec.org/a/inm/orisre/v35y2024i2p747-765.html
   My bibliography  Save this article

The Impact of Online Q&As on Product Sales: The Case of Amazon Answer

Author

Listed:
  • Warut Khern-am-nuai

    (Desautels Faculty of Management, McGill University, Montreal, Quebec H3A 1G5, Canada)

  • Hossein Ghasemkhani

    (Krannert School of Management, Purdue University, West Lafayette, Indiana 47907)

  • Dandan Qiao

    (Department of Information Systems and Analytics, National University of Singapore, Singapore 117417, Singapore)

  • Karthik Kannan

    (Eller College of Management, University of Arizona, Tucson, Arizona 85721)

Abstract

This paper uses data from two online shopping platforms to investigate the impact of questions and answers on product sales. This research question is important as online marketplaces are increasingly incorporating questioning and answering (Q&A) capabilities. However, the economic implications of these Q&A capabilities have yet to be explored and discussed in the literature. We use a difference-in-differences approach to empirically examine the effect of questions and answers that exist on only one platform on the sales of experience goods. Interestingly, we find that answers, particularly the depth of answers, have a positive impact on sales. In addition, the fraction of questions with at least one answer has a positive and significant impact on product sales as well. Our further analyses on textual content suggest that fit-oriented questions and quality-oriented questions impact sales differently and that positive answers and negative answers also impact sales in different ways. Our findings suggest that platform sellers should pay particular attention to questions that their products receive, as answered questions increase product sales.

Suggested Citation

  • Warut Khern-am-nuai & Hossein Ghasemkhani & Dandan Qiao & Karthik Kannan, 2024. "The Impact of Online Q&As on Product Sales: The Case of Amazon Answer," Information Systems Research, INFORMS, vol. 35(2), pages 747-765, June.
  • Handle: RePEc:inm:orisre:v:35:y:2024:i:2:p:747-765
    DOI: 10.1287/isre.2023.1233
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/isre.2023.1233
    Download Restriction: no

    File URL: https://libkey.io/10.1287/isre.2023.1233?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
    ---><---

    References listed on IDEAS

    as
    1. T. Ravichandran & Chaoqun Deng, 2023. "Effects of Managerial Response to Negative Reviews on Future Review Valence and Complaints," Information Systems Research, INFORMS, vol. 34(1), pages 319-341, March.
    2. Soojung Kim & Sanghee Oh, 2009. "Users' relevance criteria for evaluating answers in a social Q&A site," Journal of the American Society for Information Science and Technology, Association for Information Science & Technology, vol. 60(4), pages 716-727, April.
    3. Xianghua Lu & Sulin Ba & Lihua Huang & Yue Feng, 2013. "Promotional Marketing or Word-of-Mouth? Evidence from Online Restaurant Reviews," Information Systems Research, INFORMS, vol. 24(3), pages 596-612, September.
    4. 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.
    5. Monic Sun, 2012. "How Does the Variance of Product Ratings Matter?," Management Science, INFORMS, vol. 58(4), pages 696-707, April.
    6. Yipu Deng & Jinyang Zheng & Warut Khern-am-nuai & Karthik Kannan, 2022. "More than the Quantity: The Value of Editorial Reviews for a User-Generated Content Platform," Management Science, INFORMS, vol. 68(9), pages 6865-6888, September.
    7. Anindya Ghose & Panagiotis G. Ipeirotis & Beibei Li, 2012. "Designing Ranking Systems for Hotels on Travel Search Engines by Mining User-Generated and Crowdsourced Content," Marketing Science, INFORMS, vol. 31(3), pages 493-520, May.
    8. Jie Lou & Yulin Fang & Kai H. Lim & Jerry Zeyu Peng, 2013. "Contributing high quantity and quality knowledge to online Q&A communities," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 64(2), pages 356-371, February.
    9. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    10. Jie Lou & Yulin Fang & Kai H. Lim & Jerry Zeyu Peng, 2013. "Contributing high quantity and quality knowledge to online Q&A communities," Journal of the American Society for Information Science and Technology, Association for Information Science & Technology, vol. 64(2), pages 356-371, February.
    11. Banerjee, Shrabastee & Dellacros, Chrysantos & Zervas, Georgios, 2021. "Interacting user-generated content technologies: How questions & answers affect consumer reviews," Other publications TiSEM 8666065b-00ff-4352-b458-1, Tilburg University, School of Economics and Management.
    12. Reza Mousavi & Bidyut Hazarika & Kuanchin Chen & Muhammad Razi, 2021. "The Effect of Online Q&As and Product Reviews on Product Performance Metrics: Amazon.com as a Case Study," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 20(01), pages 1-16, March.
    13. Erik Brynjolfsson & Yu (Jeffrey) Hu & Michael D. Smith, 2003. "Consumer Surplus in the Digital Economy: Estimating the Value of Increased Product Variety at Online Booksellers," Management Science, INFORMS, vol. 49(11), pages 1580-1596, November.
    14. Paulo B. Goes & Chenhui Guo & Mingfeng Lin, 2016. "Do Incentive Hierarchies Induce User Effort? Evidence from an Online Knowledge Exchange," Information Systems Research, INFORMS, vol. 27(3), pages 497-516, September.
    15. Nachiketa Sahoo & Chrysanthos Dellarocas & Shuba Srinivasan, 2018. "The Impact of Online Product Reviews on Product Returns," Information Systems Research, INFORMS, vol. 29(3), pages 723-738, September.
    16. Mochen Yang & Yuqing Ren & Gediminas Adomavicius, 2019. "Understanding User-Generated Content and Customer Engagement on Facebook Business Pages," Information Systems Research, INFORMS, vol. 30(3), pages 839-855, September.
    17. Davide Proserpio & Georgios Zervas, 2017. "Online Reputation Management: Estimating the Impact of Management Responses on Consumer Reviews," Marketing Science, INFORMS, vol. 36(5), pages 645-665, September.
    18. Urbany, Joel E & Dickson, Peter R & Wilkie, William L, 1989. "Buyer Uncertainty and Information Search," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 16(2), pages 208-215, September.
    19. Warut Khern-am-nuai & Karthik Kannan & Hossein Ghasemkhani, 2018. "Extrinsic versus Intrinsic Rewards for Contributing Reviews in an Online Platform," Information Systems Research, INFORMS, vol. 29(4), pages 871-892, December.
    20. Karthik Kannan & Rajib L. Saha & Warut Khern-am-nuai, 2022. "Identifying Perverse Incentives in Buyer Profiling on Online Trading Platforms," Information Systems Research, INFORMS, vol. 33(2), pages 464-475, June.
    21. Jain, Shaili & Chen, Yiling & Parkes, David C., 2014. "Designing incentives for online question-and-answer forums," Games and Economic Behavior, Elsevier, vol. 86(C), pages 458-474.
    22. Judith A. Chevalier & Yaniv Dover & Dina MayzlinDina Mayzlin, 2018. "Channels of Impact: User Reviews When Quality Is Dynamic and Managers Respond," Marketing Science, INFORMS, vol. 37(5), pages 688-709, September.
    23. Lu Yan & Yong Tan, 2014. "Feeling Blue? Go Online: An Empirical Study of Social Support Among Patients," Information Systems Research, INFORMS, vol. 25(4), pages 690-709, December.
    24. Pradeep K. Chintagunta & Shyam Gopinath & Sriram Venkataraman, 2010. "The Effects of Online User Reviews on Movie Box Office Performance: Accounting for Sequential Rollout and Aggregation Across Local Markets," Marketing Science, INFORMS, vol. 29(5), pages 944-957, 09-10.
    Full references (including those not matched with items on IDEAS)

    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. Dominik Gutt, 2018. "In the Eye of the Beholder? Empirically Decomposing Different Economic Implications of the Online Rating Variance," Working Papers Dissertations 40, Paderborn University, Faculty of Business Administration and Economics.
    2. 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.
    3. Carlson, Keith & Kopalle, Praveen K. & Riddell, Allen & Rockmore, Daniel & Vana, Prasad, 2023. "Complementing human effort in online reviews: A deep learning approach to automatic content generation and review synthesis," International Journal of Research in Marketing, Elsevier, vol. 40(1), pages 54-74.
    4. Marios Kokkodis & Theodoros Lappas, 2020. "Your Hometown Matters: Popularity-Difference Bias in Online Reputation Platforms," Information Systems Research, INFORMS, vol. 31(2), pages 412-430, June.
    5. Dandan Qiao & Shun-Yang Lee & Andrew B. Whinston & Qiang Wei, 2020. "Financial Incentives Dampen Altruism in Online Prosocial Contributions: A Study of Online Reviews," Information Systems Research, INFORMS, vol. 31(4), pages 1361-1375, December.
    6. Jing Wang & Gen Li & Kai-Lung Hui, 2022. "Monetary Incentives and Knowledge Spillover: Evidence from a Natural Experiment," Management Science, INFORMS, vol. 68(5), pages 3549-3572, May.
    7. Khim-Yong Goh & Cheng-Suang Heng & Zhijie Lin, 2013. "Social Media Brand Community and Consumer Behavior: Quantifying the Relative Impact of User- and Marketer-Generated Content," Information Systems Research, INFORMS, vol. 24(1), pages 88-107, March.
    8. Shan, Wei & Qiao, Tong & Zhang, Mingli, 2020. "Getting more resources for better performance: The effect of user-owned resources on the value of user-generated content," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    9. Duan, Yongrui & Liu, Tonghui & Mao, Zhixin, 2022. "How online reviews and coupons affect sales and pricing: An empirical study based on e-commerce platform," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    10. Li, Yimeng & Xiong, Yu & Mariuzzo, Franco & Xia, Senmao, 2021. "The underexplored impacts of online consumer reviews: Pricing and new product design strategies in the O2O supply chain," International Journal of Production Economics, Elsevier, vol. 237(C).
    11. Schulz, Petra & Shehu, Edlira & Clement, Michel, 2019. "When consumers can return digital products: Influence of firm- and consumer-induced communication on the returns and profitability of news articles," International Journal of Research in Marketing, Elsevier, vol. 36(3), pages 454-470.
    12. Tim Meyer & Anna Kerkhof & Carmelo Cennamo & Tobias Kretschmer, 2022. "Competing for Attention on Information Platforms: The Case of News," CESifo Working Paper Series 9832, CESifo.
    13. Ao Shen & Peng Wang & Yongyuan Ma, 2022. "When crowding‐in and when crowding‐out? The boundary conditions on the relationship between negative online reviews and online sales," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2016-2032, September.
    14. Cheng Zhao & Chong Alex Wang, 2023. "A cross-site comparison of online review manipulation using Benford’s law," Electronic Commerce Research, Springer, vol. 23(1), pages 365-406, March.
    15. Brett Hollenbeck & Sridhar Moorthy & Davide Proserpio, 2019. "Advertising Strategy in the Presence of Reviews: An Empirical Analysis," Marketing Science, INFORMS, vol. 38(5), pages 793-811, September.
    16. 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.
    17. Chih-Hung Peng & Dezhi Yin & Han Zhang, 2020. "More than Words in Medical Question-and-Answer Sites: A Content-Context Congruence Perspective," Information Systems Research, INFORMS, vol. 31(3), pages 913-928, September.
    18. Christian Matt & Thomas Hess, 2016. "Product fit uncertainty and its effects on vendor choice: an experimental study," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(1), pages 83-93, February.
    19. Yang Liu & Juan Feng & Xiuwu Liao, 2017. "When Online Reviews Meet Sales Volume Information: Is More or Accurate Information Always Better?," Information Systems Research, INFORMS, vol. 28(4), pages 723-743, December.
    20. 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.

    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:inm:orisre:v:35:y:2024:i:2:p:747-765. 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.