{"title":"Dynamic interplays between online reviews and marketing promotions","authors":"Yufei Zhang, Clay M. Voorhees, G. Tomas M. Hult","doi":"10.1007/s11747-024-01025-w","DOIUrl":null,"url":null,"abstract":"<p>Customer reviews, price discounts, and free shipping are powerful drivers of online purchases. Prior research demonstrates their direct effects on consumer behavior, usually with the assumption that they operate independently. By examining the interplays of online reviews and marketing promotions, this study offers a richer, more comprehensive perspective on how these drivers work together to shape consumers’ preferences and influence product sales. The authors examine these effects using both an online experiment (Study 1) and an analysis of a secondary data set (Study 2). Results demonstrate that when developing promotional schedules for e-commerce sites, managers must account for both the volume and valence of their products’ reviews; failing to address these dynamics may lead to reduced profit margins. A key insight is the limited performance of price discounts when a critical number of reviews accumulates, resulting in margin erosion without demand creation. The implications of these results are discussed.</p>","PeriodicalId":17194,"journal":{"name":"Journal of the Academy of Marketing Science","volume":null,"pages":null},"PeriodicalIF":9.5000,"publicationDate":"2024-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of the Academy of Marketing Science","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1007/s11747-024-01025-w","RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
Customer reviews, price discounts, and free shipping are powerful drivers of online purchases. Prior research demonstrates their direct effects on consumer behavior, usually with the assumption that they operate independently. By examining the interplays of online reviews and marketing promotions, this study offers a richer, more comprehensive perspective on how these drivers work together to shape consumers’ preferences and influence product sales. The authors examine these effects using both an online experiment (Study 1) and an analysis of a secondary data set (Study 2). Results demonstrate that when developing promotional schedules for e-commerce sites, managers must account for both the volume and valence of their products’ reviews; failing to address these dynamics may lead to reduced profit margins. A key insight is the limited performance of price discounts when a critical number of reviews accumulates, resulting in margin erosion without demand creation. The implications of these results are discussed.
期刊介绍：
JAMS, also known as The Journal of the Academy of Marketing Science, plays a crucial role in bridging the gap between scholarly research and practical application in the realm of marketing. Its primary objective is to study and enhance marketing practices by publishing research-driven articles.
When manuscripts are submitted to JAMS for publication, they are evaluated based on their potential to contribute to the advancement of marketing science and practice.
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