Editorial: Who Is Afraid to Give Freedom of Speech to Marketing Folks?
Marketing Science
Service Escape: Profiting from Customer Cancellations
Marketing Science
Invited Commentary---Internet-Based Service Institutions
Marketing Science
Editorial: Who Is Afraid to Give Freedom of Speech to Marketing Folks?
Marketing Science
International Journal of Electronic Commerce
International Journal of Electronic Commerce
Voluntary Quality Disclosure and Market Interaction
Marketing Science
Image Effects and Rational Inattention in Internet-Based Selling
International Journal of Electronic Commerce
Quality Disclosure Formats in a Distribution Channel
Management Science
Pricing, Frills, and Customer Ratings
Marketing Science
Preview Provision Under Competition
Marketing Science
How Does Popularity Information Affect Choices? A Field Experiment
Management Science
Firm Strategies in the “Mid Tail” of Platform-Based Retailing
Marketing Science
Exogenous Learning, Seller-Induced Learning, and Marketing of Durable Goods
Management Science
The Strategic Impact of References in Business Markets
Marketing Science
How Does the Variance of Product Ratings Matter?
Management Science
To whom should I listen? Finding reputable reviewers in opinion-sharing communities
Decision Support Systems
The impact of electronic word-of-mouth communication: A literature analysis and integrative model
Decision Support Systems
Timing and basis of online product recommendation: the preference inconsistency paradox
HCI'13 Proceedings of the 15th international conference on Human Interface and the Management of Information: information and interaction for learning, culture, collaboration and business - Volume Part III
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Product reviews by third parties are growing in popularity. This paper examines when and how a manufacturing firm should adapt its marketing strategies to such reviews. For example, should a firm receiving an unfavorable review reduce its price or adjust its advertising? Should a winning product of a product review (e.g., "editor's choice") boost its advertising expenditure to spread the good news? How should firms' strategic responses to product reviews differ across different types of product reviews (description vs. recommendation) and different advertising media (the reviewer's publication vs. other media)?We develop a theory to address these issues and derive firms' optimal responses to product reviews under different product/market/review/media conditions. We show that firms should chooseadvertising rather thanprice as a strategic variable in response to product reviews when enough consumers value horizontal product attributes. Surprisingly, we find that using a review-endorsedadvertising format (i.e., advertisements containing third-party award logos) to broadcast its victory can hurt the winning product of a product review. Also, it is not necessarily wise for the winning products to boostadvertising expenditures to spread the good news. Data from two industries--printers and running shoes--are used to illustrate some of our findings.