The informational role of average rating and variance of customer ratings in the differential patterns of consumer behavior

Abstract

BACKGROUND:

Different preferences of the customers and their product judgments have been widely neglected in the literature despite their significant influence on decision-making. Hence, decision-makers must recognize customers’ rating evaluations based on their satisfaction that interact with their different behaviours (quality- and prestige-seeking).

OBJECTIVE:

Our objective was to ascertain the different behaviors of the customers that influence their product judgment in ratings which change the informational role of the ratings.

METHODS:

This study was empirically conducted based on survey results from 20000 mobile phone customers and showed their different behaviours in their rating evaluations by using a non-recursive SPSS model.

RESULTS:

The results of our study reveal that: the rating evaluation of quality-seeking customers is carried out with a higher average rating and a lower variance, for prestige-seeking customers are carried out with a higher average rating and a higher variance. Overall, the variance of ratings distribution varies towards two groups of the customers while their ratings evaluations carried out with similar average ratings, in the context of customers’ rating evaluation and their different behaviour.

CONCLUSIONS:

This study has provided preliminary evidence for different behavioral customer rating evaluations which is crucial in both business owners and potential consumers’ decision-making process.