Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 1, 2020 erstellt
Beschreibung:
Representative online customer reviews are critical to the effective functioning of the Internet economy. In this study, I investigate the representativeness of online review distributions to examine how extremity bias and conformity impact it, and explore whether online review solicitations alter representativeness. Past research on extreme distribution of online ratings commonly relied solely on observed public online ratings. One strength of the current paper is that I observe the private satisfaction ratings of customers regardless of whether they choose to write an online review or not. I show that both extremity bias and conformity exist in unsolicited online word-of-mouth (WOM) and introduce online review solicitations as a mechanism that can partially de-bias ratings. Solicitations increase all customers' engagement in online WOM, but if solicited, those with moderate experiences increase their engagement more than those with extreme experiences. Consequently, while extremity bias still exists in solicited online WOM, solicitations significantly increase the representativeness of rating distributions. Surprisingly, the results demonstrate that without conformity, unsolicited online WOM would be even less representative of the original customer experiences. Further, I document that both solicited and unsolicited reviews equally overstate the average customer experience (compared to average private ratings) despite stark differences in their rating distributions. Finally, I establish that solicitations for reviews on the company-owned website, on average, decrease the number of one-star reviews on a third-party review platform