Product reviews are critical high-scope non-marketing cues for consumers to obtain useful product information from various perspectives. However, the effects of inconsistent reviews among multiple sources on new product sales are underexplored. Based on the cue-diagnosticity framework, this research investigates how multi-source review inconsistency (MSRI) affects purchase intention and new product sales in the context of the U.S. automobile industry when firms signal product quality through advertising as a low-scope cue. Using multi-methods of an experiment and secondary data analysis, the results show the negative effects of MSRI on purchase intention and new product sales and explain the mechanisms through information diagnosticity. Further, the findings show how advertising as a low-scope cue can mitigate the effect of multi-source inconsistency on new product sales.
AfzalWaseemRolandDanielAl-SquriMohammad NasserInformation asymmetry and product valuation: an exploratory studyJournal of Information Science3522009192–20310.1177/0165551508097091
2.
AikenK. DamonBoushDavid M.Trustmarks, objective-source ratings, and implied Investments in Advertising: investigating online trust and the context-specific nature of internet signalsJournal of the Academy of Marketing Science3432006308–32310.1177/0092070304271004
3.
AkdenizBillurCalantoneRoger J.VoorheesClay M.Effectiveness of marketing cues on consumer perceptions of quality: the moderating roles of brand reputation and third-party informationPsychology & Marketing301201376–8910.1002/mar.20590
4.
AndersonEric T.SimesterDuncan I.Reviews without a purchase: low ratings, loyal customers, and deceptionJournal of Marketing Research5132014249–26910.1509/jmr.13.0209
5.
BaekHyunmiAhnJoongHoChoiYoungseokHelpfulness of online consumer reviews: Readers’ objectives and review cuesInternational Journal of Electronic Commerce172201299–12610.2753/JEC1086-4415170204
6.
BasuroySumanChatterjeeSubimalAbraham RavidS.How critical are critical reviews? The box office effects of film critics, star power, and budgetsJournal of Marketing6742003103–11710.1509/jmkg.67.4.103.18692
7.
BasuroySumanDesaiKalpesh KaushikTalukdarDebabrataAn empirical investigation of signaling in the motion picture industryJournal of Marketing Research4322006287–29510.1509/jmkr.43.2.287
8.
BeattySharon E.SmithScott M.External search effort: an investigation across several product categoriesJournal of Consumer Research141198783–9510.1086/209095
9.
BenedicktusRay L.BradyMichael K.DarkePeter R.VoorheesClay M.Conveying trustworthiness to online consumers: reactions to consensus, physical store presence, brand familiarity, and generalized suspicionJournal of Retailing8642010322–33510.1016/j.jretai.2010.04.002
10.
BusseMeghan R.KnittelChristopher R.ZettelmeyerFlorianPain at the Pump: The Differential Effect of Gasoline Prices on New and Used Automobile MarketsNational Bureau of Economic Researchw15590200910.3386/w15590
11.
WangYangChaudhryAlexanderWhen and how Managers’ responses to online reviews affect subsequent reviewsJournal of Marketing Research5522018163–17710.1509/jmr.15.0511
12.
ChenYuboFayScottWangQiThe role of Marketing in Social Media: how online consumer reviews evolveJournal of Interactive Marketing252201185–9410.1016/j.intmar.2011.01.003
13.
ChenJieTengLefaYuYingYuXueerThe effect of online information sources on purchase intentions between consumers with high and low susceptibility to informational influenceJournal of Business Research6922016467–47510.1016/j.jbusres.2015.05.003
14.
ChenYuboXieJinhongOnline consumer review: word-of-mouth as a new element of marketing communication mixManagement Science5432008477–491https://www.jstor.org/stable/20122400
15.
ChevalierJudith A.MayzlinDinaThe effect of word of mouth on sales: online book reviewsJournal of Marketing Research4332006345–35410.1509/jmkr.43.3.345
16.
ChintaguntaPradeep K.GopinathShyamVenkataramanSriramThe effects of online user reviews on movie box office performance: accounting for sequential rollout and aggregation across local marketsMarketing Science2952010944–95710.1287/mksc.1100.0572
17.
ClemonsEric K.GaoGuodong GordonHittLorin M.When online reviews meet Hyperdifferentiation: a study of the craft beer industryJournal of Management Information Systems2322006149–17110.2753/MIS0742-1222230207
18.
CoxDena SaliagasLocanderWilliam B.Product novelty: does it moderate the relationship between ad attitudes and brand attitudes?Journal of Advertising163198739–4410.1080/00913367.1987.10673084
19.
CuiGengLuiHon-KwongGuoXiaoningThe effect of online consumer reviews on new product salesInternational Journal of Electronic Commerce171201239–5810.2753/JEC1086-4415170102
20.
DellarocasChrysanthosZhangXiaoquan MichaelAwadNeveen F.Exploring the value of online product reviews in forecasting sales: the case of motion picturesJournal of Interactive Marketing214200723–4510.1002/dir.20087
21.
DickAlanChakravartiDipankarBiehalGabrielMemory-based inferences during consumer choiceJournal of Consumer Research171199082–9310.1086/208539
22.
DonathJudithSignals in social SupernetsJournal of Computer-Mediated Communication1312007231–25110.1111/j.1083-6101.2007.00394.x
23.
DuanWenjingBinGuWhinstonAndrew B.The dynamics of online word-of-mouth and product sales—an empirical investigation of the movie industryJournal of Retailing8422008233–24210.1111/j.1083-6101.2007.00394.x
24.
DuncanRoger S.The effect of gasoline prices on automobile salesThe American Economist241198062–6610.1177/056943458002400111
25.
EaglyAlice H.ChaikenShellyAn attribution analysis of the effect of communicator characteristics on opinion change: the case of communicator attractivenessJournal of Personality and Social Psychology3211975136–14410.1037/h0076850
26.
EliashbergJehoshuaShuganSteven M.Film critics: influencers or predictors?Journal of Marketing612199768–7810.1177/002224299706100205
27.
ErdemTülinKeaneMichael P.SunBaohongA dynamic model of brand choice when Price and advertising signal product qualityMarketing Science27620081111–112510.1287/mksc.1080.0362
28.
FaberRonald J.O'GuinnThomas C.Effect of media advertising and other sources on movie selectionJournalism Quarterly6121984371–37710.1177/107769908406100219
29.
FanZhi-PingCheYu-JieChenZhen-YuProduct sales forecasting using online reviews and historical sales data: a method combining the bass model and sentiment analysisJournal of Business Research74201790–10010.1016/j.jbusres.2017.01.010
30.
FilieriRaffaeleWhat makes online reviews helpful? A Diagnosticity-adoption framework to explain informational and normative influences in e-WOMJournal of Business Research68620151261–127010.1016/j.jbusres.2014.11.006
31.
FlanaginAndrew J.MetzgerMiriam J.Trusting expert-versus user-generated ratings online: the role of information volume, valence, and consumer characteristicsComputers in Human Behavior29420131626–163410.1016/j.chb.2013.02.001
32.
GasparRuiLuísSílviaSeibtBeateLimaMaria LuísaMarcuAfroditaRutsaertPieterConsumers’ avoidance of information on red meat risks: information exposure effects on attitudes and perceived knowledgeJournal of Risk Research1942016533–54910.1080/13669877.2014.1003318
33.
GodesDavidMayzlinDinaUsing online conversations to study word-of-mouth communicationMarketing Science2342004545–56010.1287/mksc.1040.0071
34.
HanYoung JeeNunesJoseph C.DrèzeXavierSignaling status with luxury goods: the role of brand prominenceJournal of Marketing744201015–3010.1509/jmkg.74.4.015
35.
HerrPaul M.KardesFrank R.KimJohnEffects of word-of-mouth and product-attribute information on persuasion: an accessibility-Diagnosticity perspectiveJournal of Consumer Research1741991454–46210.1086/208570
36.
HochStephen J.DeightonJohnManaging what consumers learn from experienceJournal of Marketing53219891–2010.1177/002224298905300201
37.
HollenbeckBrettMoorthySridharProserpioDavideAdvertising strategy in the presence of reviews: an empirical analysisMarketing Science3852019793–81110.1287/mksc.2019.1180
38.
HorskyDanSimonLeonard S.Advertising and the diffusion of new productsMarketing Science2119831–1710.1287/mksc.2.1.1
39.
HuNanKohNoi SianReddySrinivas K.Ratings Lead you to the product, reviews help you clinch it: the dynamics and impact of online review sentiments on products salesDecision Support Systems57201442–5310.1016/j.dss.2013.07.009
40.
HuNanLiuLingZhangJie JenniferDo online reviews affect product sales? The role of reviewer characteristics and temporal effectsInformation Technology and Management932008201–21410.1007/s10799-008-0041-2
41.
JiménezFernando R.MendozaNorma A.Too popular to ignore: the influence of online reviews on purchase intentions of search and experience productsJournal of Interactive Marketing2732013226–23510.1016/j.intmar.2013.04.004
42.
KalishShlomoA new product adoption model with Price, advertising, and uncertaintyManagement Science311219851569–158510.1287/mnsc.31.12.1569
43.
KirmaniAmnaThe effect of perceived advertising costs on brand perceptionsJournal of Consumer Research1721990160–17110.1086/208546
44.
KirmaniAmnaRaoAkshay R.No pain, no gain: a critical review of the literature on signaling unobservable product qualityJournal of Marketing642200066–7910.1509/jmkg.64.2.66.18000
45.
KirmaniAmnaWrightPeterMoney talks: perceived advertising expense and expected product qualityJournal of Consumer Research1631989344–35310.1086/209220
46.
KlebbaJoanne M.UngerLynette S.The impact of negative and positive information on source credibility in a field settingAdvances in Consumer Research10198311–16
47.
KostyraDaniel S.ReinerJochenNatterMartinKlapperDanielDecomposing the effects of online customer reviews on brand, Price, and product attributesInternational Journal of Research in Marketing331201611–2610.1016/j.ijresmar.2014.12.004
48.
LanganRyanBesharatAliVarkiSajeevThe effect of review valence and variance on product evaluations: an examination of intrinsic and extrinsic cuesInternational Journal of Research in Marketing3422017414–42910.1016/j.ijresmar.2016.10.004
49.
De Langhe, Bart, Fernbach, P. M., & Lichtenstein, D. R. (2016), “Navigating by the stars: investigating the actual and perceived validity of online user ratings,” Journal of Consumer Research, 42, 6, 817–833. doi:https://doi.org/10.1093/jcr/ucv047.
50.
LaurentGillesKapfererJean-NoelMeasuring consumer involvement profilesJournal of Marketing Research221198541–5310.1177/002224378502200104
51.
LiXinxinHittLorin M.Self-selection and information role of online product reviewsInformation Systems Research1942008456–47410.1287/isre.1070.0154
52.
LiShanjunLinnJoshuaSpillerElishebaEvaluating “cash-for-clunkers”: program effects on auto sales and the environmentJournal of Environmental Economics and Management6522013175–19310.1016/j.jeem.2012.07.004
53.
LiuYongWord of mouth for movies: its dynamics and impact on box office revenueJournal of Marketing703200674–8910.1509/jmkg.70.3.074
54.
MaXiaoKhansaLaraDengYunKimSung S.Impact of prior reviews on the subsequent review process in reputation systemsJournal of Management Information Systems3032013279–31010.2753/MIS0742-1222300310
55.
MaheswaranDurairajChaikenShellyPromoting systematic processing in low-motivation settings: effect of incongruent information on processing and judgmentJournal of Personality and Social Psychology611199113–2510.1037/0022-3514.61.1.13
56.
MeadeA.W.CraigS.B.Identifying careless responses in survey dataPsychological Methods1732012437–455
57.
MiyazakiAnthony D.GrewalDhruvGoodsteinRonald C.The effect of multiple extrinsic cues on quality perceptions: a matter of consistencyJournal of Consumer Research3212005146–15310.1086/429606
58.
MoeWendy W.TrusovMichaelThe value of social dynamics in online product ratings forumsJournal of Marketing Research4832011444–45610.1509/jmkr.48.3.444
59.
MoonSangkilBergeyPaul K.IacobucciDawnDynamic effects among movie ratings, movie revenues, and viewer satisfactionJournal of Marketing7412010108–12110.1509/jmkg.74.1.108
60.
MoonSangkilKimJunheeBayusBarry L.YiYoujaeConsumers’ pre-launch awareness and preference on movie salesEuropean Journal of Marketing505/620161024–104610.1108/EJM-06-2015-0324
61.
MoorthySridharRatchfordBrian T.TalukdarDebabrataConsumer information search revisited: theory and empirical analysisJournal of Consumer Research2341997263–27710.1086/209482
62.
MudambiSusan M.SchuffDavidResearch note: what makes a helpful online review? A study of customer reviews on Amazon.comMIS Quarterly3412010185–200https://www.jstor.org/stable/20721420
63.
ParkSe-BumParkDo-HyungThe effect of low-versus high-variance in product reviews on product evaluationPsychology & Marketing3072013543–55410.1002/mar.20626
64.
PunjGirishBrookesRichardThe influence of pre-decisional constraints on information search and consideration set formation in new automobile purchasesInternational Journal of Research in Marketing1942002383–40010.1016/S0167-8116(02)00100-3
65.
PunjGirish N.StaelinRichardA model of consumer information search behavior for new automobilesJournal of Consumer Research941983366–38010.1086/208931
66.
PurohitDevavratSrivastavaJoydeepEffect of manufacturer reputation, retailer reputation, and product warranty on consumer judgments of product quality: a Cue Diagnosticity frameworkJournal of Consumer Psychology1032001123–13410.1207/s15327663jcp1003_1
67.
QiuLingyunPangJunLimKai H.Effects of conflicting aggregated rating on eWOM review credibility and Diagnosticity: the moderating role of review valenceDecision Support Systems5412012631–64310.1016/j.dss.2012.08.020
68.
RaoAkshay R.MonroeKent B.The effect of Price, brand name, and store name on Buyers’ perceptions of product quality: an integrative reviewJournal of Marketing Research2631989351–35710.1177/002224378902600309
69.
ReinhardtRonnyGurtnerSebastianDifferences between early adopters of disruptive and sustaining innovationsJournal of Business Research6812015137–14510.1016/j.jbusres.2014.04.007
70.
ReinsteinD.A.SnyderC.M.The influence of expert reviews on consumer demand for experience goods: a case study of movie criticsJournal of Industrial Economics531200527–5110.1111/j.0022-1821.2005.00244.x
71.
RijnsoeverVanFrankJ.CastaldiCarolinaDijstMartin J.In what sequence are information sources consulted by involved consumers? The case of automobile pre-purchase searchJournal of Retailing and Consumer Services1932012343–35210.1016/j.jretconser.2012.03.008
72.
SawhneyMohanbir S.EliashbergJehoshuaA parsimonious model for forecasting gross box-office revenues of motion picturesMarketing Science1521996113–13110.1287/mksc.15.2.113
73.
SenecalSylvainNantelJacquesThe influence of online product recommendations on Consumers’ online choicesJournal of Retailing8022004159–16910.1016/j.jretai.2004.04.001
74.
SkowronskiJohn J.CarlstonDonal E.Social judgment and social memory: the role of Cue Diagnosticity in negativity, positivity, and extremity biasesJournal of Personality and Social Psychology5241987689–69910.1037/0022-3514.52.4.689
75.
SrinivasanNarasimhanRatchfordBrian T.An empirical test of a model of external search for automobilesJournal of Consumer Research1821991233–24210.1086/209255
76.
SunMonicHow does the variance of product ratings matter?Management Science5842012696–70710.1287/mnsc.1110.1458
77.
TopalogluOmerDassMayukhThe impact of online review content and linguistic style matching on new product sales: the moderating role of review helpfulnessDecision Sciences1–27201910.1111/deci.12378
78.
ZhouShihaoQiaoZhileiQianzhouDuAlan WangG.FanWeiguoYanXiangbinMeasuring customer Qgility from online reviews using big data text analyticsJournal of Management Information Systems3522018510–53910.1080/07421222.2018.1451956
79.
ZhuYongminLiuMiaomiaoZengXiaohuaHuangPeiThe effects of prior reviews on perceived review helpfulness: a configuration perspectiveJournal of Business Research1102020484–494
80.
ZhuFengZhangXiaoquanImpact of online consumer reviews on sales: the moderating role of product and consumer characteristicsJournal of Marketing7422010133–14810.1509/jm.74.2.133
