User reviews and uncertainty assessment: A two stage model of consumers' willingness-to-pay in online markets
Document Type
Article
Publication Date
4-1-2013
Abstract
We develop a two-stage conceptual consumer decision model from the risk perspective to understand the role of online user reviews in consumers' Willingness-To-Pay (WTP). In stage one, consumers assess product uncertainty with product reviews. In stage two, they assess seller uncertainty with seller reviews, conditional on their assessment of product uncertainty in stage one. We further develop an operationalization of our conceptual model using the expected utility theory and derive hypotheses on the effects of online user reviews on consumers' WTP. We test our hypotheses using data from an experimental study and an empirical study. © 2013 Elsevier B.V. All rights reserved.
Publication Source (Journal or Book title)
Decision Support Systems
First Page
175
Last Page
185
Recommended Citation
Wu, J., Wu, Y., Sun, J., & Yang, Z. (2013). User reviews and uncertainty assessment: A two stage model of consumers' willingness-to-pay in online markets. Decision Support Systems, 55 (1), 175-185. https://doi.org/10.1016/j.dss.2013.01.017