How Online Reviews Interact with a Firm?s Free Version Strategy
被引:6
作者:
Cao, Huanhuan
论文数: 0引用数: 0
h-index: 0
机构:
Zhejiang Univ Technol, Sch Management, 18th Chaowang Rd, Hangzhou 310014, Zhejiang, Peoples R ChinaZhejiang Univ Technol, Sch Management, 18th Chaowang Rd, Hangzhou 310014, Zhejiang, Peoples R China
Cao, Huanhuan
[1
]
Jiang, Jinhu
论文数: 0引用数: 0
h-index: 0
机构:
Xi An Jiao Tong Univ, Sch Management, 28th Xianning West Rd, Xian 710049, Shanxi, Peoples R ChinaZhejiang Univ Technol, Sch Management, 18th Chaowang Rd, Hangzhou 310014, Zhejiang, Peoples R China
Jiang, Jinhu
[2
]
Geng, Xianjun
论文数: 0引用数: 0
h-index: 0
机构:
Tulane Univ, Freeman Sch Business, 6823 St Charles Ave, New Orleans, LA 70118 USAZhejiang Univ Technol, Sch Management, 18th Chaowang Rd, Hangzhou 310014, Zhejiang, Peoples R China
Geng, Xianjun
[3
]
机构:
[1] Zhejiang Univ Technol, Sch Management, 18th Chaowang Rd, Hangzhou 310014, Zhejiang, Peoples R China
[2] Xi An Jiao Tong Univ, Sch Management, 28th Xianning West Rd, Xian 710049, Shanxi, Peoples R China
[3] Tulane Univ, Freeman Sch Business, 6823 St Charles Ave, New Orleans, LA 70118 USA
This study developed a game-theory model to explore interactions between online reviews and free version strategies. Results show that a firm could have four strategies as a strategic tool to respond best to availability of online reviews depending on the relative strength of network effect, cannibalization effect, and dispersed effect. Moreover, when offering a free version is the best strategy both with and without online reviews, online reviews and the free version strategy could still be both complementary and substitutive. This result provides possible theoretical explanations for mixed empirical conclusions regarding whether online reviews complement or substitute free version strategies.