When Are More Information Details Less Useful? A Comparison of Product Contextualization in Customer Images and Review Texts

Abstract

Product reviews, a type of user-generated content (UGC), are found to affect sales; however, their impact on product returns has not been fully explored. Research has revealed that inflated ratings and catchy product images may increase returns, which spells trouble for sellers. To address the issue, we examine how product contextualization in customer-posted images and review texts helps online shoppers assess a product's functionality and aesthetics and, in turn, reduce returns. Using the archival data from an online outdoor gear and clothing retailer, we reveal that contextual cues in UGC help decrease product returns. When comparing the roles of image with text, we explore distinct mechanisms for shoppers’ utilization of contextual cues to assess each type of product feature. For functionality, the level of detail in writing suggests that contextual information for these attributes (e.g., the warmth, stretchability, and water-resistance of a jacket) is likely better delineated in text than image since many of them are measurable (e.g., temperature), can be depicted in subtleties (e.g., running vs. jogging), and, sometimes, on a time dimension (e.g., a two-hour rain). As a result, shoppers’ product evaluation and return decisions are more likely to be influenced by such content. However, our data analysis shows the opposite. Although shoppers perceive verbal contextual cues for these product features as more accurate, detailed, and sufficient, they prefer to use images to assess such attributes because the cost of processing visual information is lower. Regarding aesthetics, since buyers often adopt a sensory-based strategy to evaluate these features (e.g., the design of a shirt), images are likely to be a preferred choice. We find evidence for this argument. Yet, when a product's aesthetics are closely tied to its geometric fit (e.g., sleeve length), contextual cues in the text have a stronger effect on returns. We offer business insights on leveraging UGC to enhance operating cost management by reducing product returns.