Investigating the Influence of Product Reviews on Perceived Uncertainty in Online Transactions

Customers' concerns about the potential risks in online transactions hinder the development of e-commerce. Researchers have devoted a lot of effort to looking for a way to alleviate the uncertainty pertaining to these risks. Online customer reviews designed to deliver information in addition to a manufacturer's product description, have attracted researchers' attention. In this study, we assume that the risks in an online transaction originate specifically from sellers' hidden information and hidden actions. With the aid of customer reviews of products, we want to measure how this uncertainty and these risks can be alleviated. In addition, we measure the effects of customer reviews with different argument qualities and different star ratings.