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Reviewing the simple things – How ease of evaluation affects online rating behavior

Author

Listed:
  • Janina Seutter

    (Paderborn University)

  • Jürgen Neumann

    (Weidmüller)

Abstract

Online reviews play a considerable role in reducing the information asymmetry between sellers and potential consumers. Despite the rich body of literature on online reviews and rat-ing behaviors, little is known about the influence that the ease (or difficulty) involved in eval-uating a product or service—or their attributes—has on ratings. Indeed, certain product or service characteristics are easier to review and evaluate than others. In this paper we investi-gate the potential rating differences that arise from the ease of evaluation, both on a category and on an attribute level. In two distinct studies we analyze datasets from, respectively, Yelp (category level) and Google Maps (attribute level) and conduct linear regression with fixed-effects. Our results suggest that ratings of easy-to-evaluate product and service categories are more extreme than ratings of difficult-to-evaluate categories. This does not hold for attributes, however. The contrast between category and attribute level reveals that the impact of ease of evaluation cannot be fully explained by expectation-(dis)confirmation theory. Hence, we briefly discuss alternative theoretical explanations. Our results have important practical impli-cations for platforms offering goods and services that differ in their ease of evaluation, to re-dress the biases created by these differences in rating behaviors.

Suggested Citation

  • Janina Seutter & Jürgen Neumann, 2024. "Reviewing the simple things – How ease of evaluation affects online rating behavior," Working Papers Dissertations 120, Paderborn University, Faculty of Business Administration and Economics.
  • Handle: RePEc:pdn:dispap:120
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    File URL: http://groups.uni-paderborn.de/wp-wiwi/RePEc/pdf/dispap/DP120.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    online reviews; ease of evaluation; supervised text classification; fixed-effects-regression;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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