DIFFERENTIAL EFFECTS OF MULTIDIMENSIONAL REVIEW EVALUATIONS ON PRODUCT SALES FOR MAINSTREAM VS. NICHE PRODUCTS

Despite a large body of literature on online reviews, none have considered the nuanced impacts of how multidimensional reviews affect product sales differently for mainstream vs. niche products. This study seeks to fill this knowledge gap by conducting complementary studies in two product categories (i.e., automobiles and laptops) with different methods (a field study and three lab experiments). Our paper reveals three key insights into the emerging literature and phenomenon on multidimensional review systems: (1) the interdimensional rating variance is more negatively related to product sales for mainstream products than for niche products in the same category, (2) the intradimensional rating valence on the dominant dimension of a product is more positively related to product sales for niche products than for mainstream products, and (3) the intradimensional rating variance on the dominant dimension of a product is more negatively related to product sales for niche products than for mainstream products. Our research provides important managerial implications for both product providers and review platforms.