User reviews and uncertainty assessment: A two stage model of consumers' willingness-to-pay in online markets

Authors:
Jianan Wu;Yinglu Wu;Jie Sun;Zhilin Yang
Affiliations:
E. J. Ourso College of Business, Louisiana State University, Baton Rouge, La 70803, USA;E. J. Ourso College of Business, Louisiana State University, Baton Rouge, La 70803, USA;E. J. Ourso College of Business, Louisiana State University, Baton Rouge, La 70803, USA;College of Business, City University of Hong Kong, Hong Kong, China
Venue:
Decision Support Systems
Year:
2013

Citing 17
Cited 0

Risk, return, and utility

Management Science
Cross-Cultural Differences in Risk Perception, But Cross-Cultural Similarities in Attitudes Towards Perceived Risk

Management Science
On risk, convenience, and Internet shopping behavior

Communications of the ACM
The Digitization of Word of Mouth: Promise and Challenges of Online Feedback Mechanisms

Management Science
A Fuzzy Set Model of Search and Consideration with an Application to an Online Market

Marketing Science
The roles of players and reputation: evidence from eBay online auctions

Decision Support Systems
Strategic Manipulation of Internet Opinion Forums: Implications for Consumers and Firms

Management Science
Effects of a reputation feedback system on an online consumer-to-consumer auction market

Decision Support Systems
A trust-based consumer decision-making model in electronic commerce: The role of trust, perceived risk, and their antecedents

Decision Support Systems
Do online reviews matter? - An empirical investigation of panel data

Decision Support Systems
An Empirical Investigation of Third-Party Seller Rating Systems in E-Commerce: The Case of buySAFE

Journal of Management Information Systems
Reputation distribution and consumer-to-consumer online auction market structure: an exploratory study

Decision Support Systems
The Effects of Online User Reviews on Movie Box Office Performance: Accounting for Sequential Rollout and Aggregation Across Local Markets

Marketing Science
Evidence of the effect of trust building technology in electronic markets: price premiums and buyer behavior

MIS Quarterly
Internet exchanges for used goods: an empirical analysis of trade patterns and adverse selection1

MIS Quarterly
How Does the Variance of Product Ratings Matter?

Management Science
On product uncertainty in online markets: theory and evidence

MIS Quarterly

Quantified Score

Hi-index	0.00

Visualization

Abstract

We develop a two-stage conceptual consumer decision model from the risk perspective to understand the role of online user reviews in consumers' Willingness-To-Pay (WTP). In stage one, consumers assess product uncertainty with product reviews. In stage two, they assess seller uncertainty with seller reviews, conditional on their assessment of product uncertainty in stage one. We further develop an operationalization of our conceptual model using the expected utility theory and derive hypotheses on the effects of online user reviews on consumers' WTP. We test our hypotheses using data from an experimental study and an empirical study.