The internet and consumer reviews become ever more
important.
The number of reviews and the length of a reviews of a
product positively influences the sales of this product.
The average rating of a product positively influences
Consumers don’t rely on simple cues and read reviews. They get overloaded with information.
This can result in cognitive fatigue and confusion. They alter their decision making process due to
H1:The average rating of a product given by consumers
has a positive effect on the sales of this product.
H2: First, an increase in the average number of
characters of a review increases the effect of the
average rating, after some ideal number of characters of a review, this effect decreases.
H3: First, an increase in the number of reviews
Number of reviews Average length of a review Sales Control variables (e.g. features and
price) Average rating
H3
Models Variables
Model 1 Model with all variables not controlling for endogeneity
Model 2 Model with all variables controlling for endogeneity
Model 3 Model with the main effect of the number of reviews not controlling for endogeneity Model 4 Model with the main effect of the number
of reviews controlling for endogeneity Model 5 Model with the average rating as a
Model 1 Model 2
Variable Beta Std. error Beta Std. error
Constant 8.701*** 2.058 11.866*** 2.375 Brand Samsung 0.408 1.367 0.627 1.396 Brand Apple -2.58*** .294 -2.18*** .338 Brand HP -0.749 .861 -0.479 .725 Storage Size -0.002 .001 -0.001 .001 Price 0.001*** .000 0.001*** .000 Average Rating -0.286 .550 -0.277 .536 Number Reviews 0.005 .030 0.042 .033 Number Reviews2 .000 .000 1.77E-05 .000
Avg Rating*Number Reviews -0.007 .008 -0.011* .008 Avg Rating*Number Reviews2 -1.88E-05 3.691E-5 -3.86E-06 3.275E-5
Number Char .000 .005 0.001 .004 Number Char2 -5.59E-07 2.563E-6 -7.75E-07 2.216E-6
Avg Rating*Number Char 6.61E-05 .001 -1.94E-05 .001 Avg Rating*Number Char2 1.73E-07 7.069E-7 1.74E-07 6.200E-7
Copula 1 -2.441 4.423 Copula 2 0.884 4.135 Adjusted R2 .629 .658
Model 3 Model 4
Variable Beta Std. error Beta Std. error
Constant 8.389*** .518 11.443*** .680 Brand Samsung .312 1.245 .584 1.311 Brand Apple -2.849*** .323 -2.556*** .291 Brand HP -.446 .844 -.196 .675 Storage Size -.002 .002 -.002 .002 Price .001*** .000 .001*** .000 Average Rating -.269 .177 -.195 .151 Number Reviews -.008*** .002 .002 .003 Copula 1 -1.072*** .233 Adjusted R2 .577 .623
Model 5
Variable Beta Std. error
Constant 8.213*** .332 Brand Samsung 1.264 1.151 Brand Apple -2.888*** .509 Brand HP -.061 .573 Storage Size -.001 .001 Price .001*** .000 Average Rating 0-1 .700 .527 Average Rating 1-2 .197 .333 Average Rating 2-3 -.513 .365 Average Rating 3-4 -1.397*** .343 Average Rating 4-5 -1.086* .570 Adjusted R2 .522
H1: Partly supported, only high values of the
average rating positively influences sales.
H2 and H3 are not supported, possibly
because a tablet is a search good.
A consumers only needs a quick
conformation of their own idea, they check the average rating. They don’t read the
reviews.
The number of reviews the average rating is
Firms should contact consumers to give an
average rating instead of writing a whole reviews, for search goods.
Firms do not have to control the length of a
reviews and the total number of reviews of a product, for search goods.
Research whether H2 and H3 does hold for
