The Effect of Online Consumer Reviews on New Product Sales

Geng Cui, Hon-Kwong Lui, and Xiaoning Guo
International Journal of Electronic Commerce,
Volume 17 Number 1, Fall 2012, p. 39-58.

Abstract: This study examines the effect of online reviews on new product sales for consumer electronics and video games. Analyses of panel data of 332 new products from over nine months reveal that the valence of reviews and the volume of page views have a stronger effect on search products, whereas the volume of reviews is more important for experience products. The results also show that the volume of reviews has a significant effect on new product sales in the early period and such effect decreases over time. Moreover, the percentage of negative reviews has a greater effect than that of positive reviews, confirming the negativity bias. Thus, marketers need to consider the distinctive influences of various aspects of online reviews when launching new products and devising eā€marketing strategies.

Key Words and Phrases: New product sales, online product reviews, panel data analyses, search vs. experience products, word of mouth.