Quotation Dorner, Verena, Giamattei, Marcus, Greiff, Matthias. 2020. The Market for Reviews: Strategic Behavior of Online Product Reviewers with Monetary Incentives. zfbf Schmalenbachs Zeitschrift für betriebswirtschaftliche Forschung - Schmalenbach Business Review (sbr) - 72 (3), 397-435.


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Abstract

Customer reviews reduce search cost and uncertainty about a product’s quality. Hence, the quantity and quality of reviews has positive impacts on purchase intentions, sales, and customer satisfaction. In order to increase review quality, retailers and online platforms employ different monetary incentives. We experimentally compare two different incentive schemes: an incentive scheme in which reviewers receive a flat salary, which is independent of review quality, and a tournament incentive scheme in which the reviewer who wrote the most helpful review receives a bonus payment. Helpfulness ratings are assigned by the other reviewers. In our experiment, adverse consequences arise under the tournament incentive scheme. Strategic considerations give rise to strategic downvoting, so that reviewers assign low helpfulness ratings to others’ reviews in order to maximize their expected payoffs. Review writing behavior remains unaffected: the tournament incentive scheme does not affect review quality. However, it does destroy the signaling power of helpfulness ratings.

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Publication's profile

Status of publication Published
Affiliation External
Type of publication Journal article
Journal zfbf Schmalenbachs Zeitschrift für betriebswirtschaftliche Forschung - Schmalenbach Business Review (sbr) -
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, INF-A, STRAT-B, WH-B
Language English
Title The Market for Reviews: Strategic Behavior of Online Product Reviewers with Monetary Incentives
Volume 72
Number 3
Year 2020
Page from 397
Page to 435
Reviewed? Y
DOI https://doi.org/10.1007/s41464-020-00094-y
Open Access Y
Open Access Link https://link.springer.com/content/pdf/10.1007/s41464-020-00094-y.pdf
JEL JEL C91, D12, D16, D47, M21

Associations

People
Dorner, Verena (Details)
External
Giamattei, Marcus (Bard College Berlin; Unvi. of Passau, Germany)
Greiff, Matthias (Clausthal University of Technology, Germany)
Organization
Institute for Digital Ecosystems IN (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5367 Management information systems (Details)
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