Online Product Reviews-Triggered Dynamic Pricing: Theory and Evidence

被引：73
作者：
Feng, Juan [1 ]
Li, Xin [1 ]
Zhang, Xiaoquan [2 ]
机构：
[1] City Univ Hong Kong, Dept Informat Syst, Coll Business, Kowloon, Hong Kong, Peoples R China
[2] City Univ Hong Kong, Dept Decis Sci & Managerial Econ, Sch Business, Hong Kong, Peoples R China
来源：
INFORMATION SYSTEMS RESEARCH | 2019年 / 30卷 / 04期
基金：
中国国家自然科学基金;
关键词：
pricing; online product reviews; analytical model; empirical study; WORD-OF-MOUTH; CONSUMER REVIEWS; RECOMMENDER SYSTEMS; INTERNET; SEARCH; MODEL; SALES; COMPETITION; REPUTATION; QUALITY;
D O I：
10.1287/isre.2019.0852
中图分类号：
G25 [图书馆学、图书馆事业]; G35 [情报学、情报工作];
学科分类号：
1205 ; 120501 ;
摘要：
Prior works offer compelling evidence that, on the demand side of the market, user-generated online product reviews play a very important role in informing consumers' purchase decisions. On the supply side, however, the interplay between online product reviews and firm strategies is less understood. We build an analytical model that differentiates products based on consumers' preference for tastes (horizontal differentiation) or quality (vertical differentiation) and show that a firm is able to not only manipulate its pricing to influence online product reviews (thus influencing sales) but also, adjust pricing dynamically in response to online word of mouth. Our model derives rich and testable results on possible price trajectories. To offer empirical support for the analytical predictions, we conduct a panel data study of prices and reviews. We adopt a difference-in-differences framework to address endogeneity challenges.
引用
收藏
页码：1107 / 1123
页数：17
相关论文
共 99 条
[11]  
Bertsimas Dimitris., 2006, Dynamic Pricing: A Learning Approach, Applied Optimization
[12]  
Bickart B, 2011, J INTERACT MARK, V15, P31
[13]   Seller Strategies for Differentiation in Highly Competitive Online Auction Markets [J].
Bockstedt, Jese ;
Goh, Kim Huat .
JOURNAL OF MANAGEMENT INFORMATION SYSTEMS, 2011, 28 (03) :235-267
[14]   Consumer surplus in the digital economy: Estimating the value of increased product variety at Online booksellers [J].
Brynjolfsson, E ;
Hu, Y ;
Smith, MD .
MANAGEMENT SCIENCE, 2003, 49 (11) :1580-1596
[15]   Frictionless commerce? A comparison of Internet and conventional retailers [J].
Brynjolfsson, E ;
Smith, MD .
MANAGEMENT SCIENCE, 2000, 46 (04) :563-585
[16]  
Brynjolfsson E., 2014, The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies
[17]   Why market shares matter: An information-based theory [J].
Caminal, R ;
Vives, X .
RAND JOURNAL OF ECONOMICS, 1996, 27 (02) :221-239
[18]   Online consumer review: Word-of-mouth as a news element of marketing communication mix [J].
Chen, Yubo ;
Xie, Jinhong .
MANAGEMENT SCIENCE, 2008, 54 (03) :477-491
[19]   The Role of Marketing in Social Media: How Online Consumer Reviews Evolve [J].
Chen, Yubo ;
Fay, Scott ;
Wang, Qi .
JOURNAL OF INTERACTIVE MARKETING, 2011, 25 (02) :85-94
[20]   The effect of word of mouth on sales: Online book reviews [J].
Chevalier, Judith A. ;
Mayzlin, Dina .
JOURNAL OF MARKETING RESEARCH, 2006, 43 (03) :345-354
12345678910