How self-selection Bias in online reviews affects buyer satisfaction: A product type perspective

Online reviews play a crucial role in shaping buyers' purchase decisions. However, previous research has highlighted the existence of self-selection biases among buyers who contribute to reviews, which in turn leads to biased distributions of review ratings. This research aims to explore the further influences of self-selection bias on buyer satisfaction through agent-based modeling, considering two product differentiations: search and experience differentiation, as well as vertical and horizontal differentiation. Our findings reveal that self-selection bias can have varying positive and negative effects on the usefulness of online reviews in suggesting product quality (i.e., review utility) to buyers, thus affecting buyer satisfaction. While self-selection bias tends to decrease review utility in most scenarios, interestingly, it can also increase review utility by enabling a "screening" function of online reviews in addition to its normal "measuring" function. We also find that the varying effects of selfselection bias on buyer satisfaction are contingent upon the type of products under scrutiny and the interaction of different types of self-selection bias. This research makes valuable contributions to the existing literature on online reviews by introducing a novel theory to explain the effects of self-selection bias on buyer satisfaction.