The impact of online reviews on product returns

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaofei Li ◽  
Baolong Ma ◽  
Hongrui Chu

PurposeThe value of online reviews has been well documented by academics and practitioners. However, to maximise the benefits of consumer reviews, online sellers must avoid the negative consequences associated with customer feedback, such as reputation loss, or product returns after purchase. In developing a better understanding of the relationships between online reviews and their potential for negative impacts, this research aims to explore product returns. Through a quantitative model, this research demonstrates why online reviews can result in product return behaviours.Design/methodology/approachThe hypotheses were tested via two studies. In Study 1, the authors examine the direct effects of review valence and review volume on product returns by analysing secondary data on 4,995 stores on China's Taobao.com. Study 2 further extends and validates the findings of Study 1 with a survey sample of 795 participants across several online shopping platforms. This analysis examines the mechanics and conditions that influence the relationships between online reviews and product returns through partial least squares-structural equation modelling (PLS-SEM).FindingsThe results show that both review valence (i.e. average star ratings) and the number of reviews can increase the probability of product returns due to the high expectations that result from positive online reviews. Further, the effect of review valence on product returns is stronger for first-time purchasers at a store. In terms of mitigation, the analysis shows that bilateral communications between sellers and buyers can temper the unrealistic expectations set by positive reviews, leading to fewer product returns.Originality/valueThis research adds to the literature on online reviews by exploring the negative consequences of online reviews and the role they play in online purchasing decisions. The findings also provide direct evidence as to why online reviews can result in more product returns, adding clarity to extant research which contains conflicting conclusions as to how online reviews affect product return behaviours.

2019 ◽  
Vol 31 (9) ◽  
pp. 3465-3483 ◽  
Author(s):  
Uttam Chakraborty

Purpose This study aims to evaluate the vitality of source, receiver and message factors on credibility assessment of online hotel reviews. Further, the current study determines the effects of perceived credibility of online reviews (PCOR) on hotel booking intentions (HBI). Design/methodology/approach The current study performs reliability analysis to determine the internal consistency of the measurement scales and to ensure the uni-dimensionality of the measurement scales the present study performs exploratory factor analysis. Further, the present study performs structural equation modeling to identify the relationships between the variables. Findings Two-sided online reviews have a more significant positive impact on PCOR as compared to the effects of receiver, review quality, review consistency and negative-sided online reviews. Originality/value This is one of the first study that analyses the impact of source, receiver and message on PCOR. Moreover, the present study offered theoretical justification behind the factors that affect the authenticity of online hotel reviews and its effects on HBI.


2018 ◽  
Vol 35 (1) ◽  
pp. 93-112 ◽  
Author(s):  
Tribikram Budhathoki ◽  
Julien Schmitt ◽  
Nina Michaelidou

Purpose To better understand the disparity of private label performance across countries, the purpose of this paper is to investigate the role played by national culture. Two types of impact are considered: a direct influence of cultural dimensions on the performance of private labels in a country and an indirect one where national culture favours the development of modern retailers, which, in turn, benefits private label performance. Design/methodology/approach Using the five dimensions of the Hofstede model to describe national culture, this paper performs a structural equation modelling incremental building model approach using secondary data collected from a sample of 65 countries. Findings The results show that individualism (positively) and long-term orientation (negatively) directly impact private label performance. Moreover, four dimensions (individualism, masculinity, power distance and uncertainty avoidance) are shown to have a significant indirect impact on private label performance via the mediation of retail market development, positively for individualism and negatively for the three other dimensions. Practical implications The findings provide retailers with important insights into the critical decisions of the selection of new markets and adaptation of the private label strategy according to the culture of the country. Originality/value This research pioneers by being the first to determine the impact of all the dimensions of the Hofstede cultural model on private label performance, use a very large number of countries to test this impact and study the role of important retail market factors in this phenomenon.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Belal Albashiti ◽  
Zeeshan Hamid ◽  
Mohammed Aboramadan

Purpose Building on conservation of resources theory and unfolding theory of turnover, this paper aims to propose a model of the effects of despotic leadership on employees’ job satisfaction and turnover intention in the hospitality industry. In this model, the authors theorize psychological distress to play an intervening role among the aforesaid linkages. Design/methodology/approach The data were collected in three-waves from 212 employees working in Palestinian restaurants. A covariance-based matrix in structural equation modeling was used to verify the proposed linkages in the study. A marker variable was used to control the common method bias. Findings The results showed that despotic leadership has a direct negative effect on job satisfaction and a positive indirect effect on turnover intentions. Besides, psychological distress showed to play significant mediating effects among the aforementioned relationships. Practical implications This study gives insights to the hospitality industry on how despotic leadership can be destructive and lead to negative consequences. Originality/value This study is unique, as it is the first study conducted on despotic leadership in a hospitality setting. The study responded to scholarly calls made to enrich the literature pertaining to despotic leadership and its outcomes.


2017 ◽  
Vol 29 (11) ◽  
pp. 2847-2866 ◽  
Author(s):  
Karin Weber ◽  
Graham L. Bradley ◽  
Beverley Sparks

Purpose Owners, managers and employees may be criticized personally and professionally by consumers in online reviews, and may suffer emotional and burnout consequences. The purpose of this paper is to examine the impact of customer-generated negative online reviews on hospitality employees. Design/methodology/approach This research analyzed the effects of traditional face-to-face customer-related social stressors, as well as a newly added negative online review (NOR) stressor, on anger and burnout in a sample of 418 US hospitality workers. Findings Structural equation modeling revealed that, after taking into account the contribution of customer-related social stressors, receipt of NORs predicts anger and anger mediates the relationships between NOR-receipt and two indices of burnout. Practical implications This research extends our understanding of social stressors that apply to workers in the hospitality industry. It offers strategies for managing the threats and optimizing the opportunities, provided by negative online reviews. Originality/value This study is one of the first studies that provide evidence of the personal impact of NORs on hospitality industry employees, thereby extending our understanding of social stressors that apply to workers in this industry.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rahul Bodhi ◽  
Tripti Singh ◽  
Yatish Joshi

PurposeEmployees have gradually adopted social media sites and their applications that have been associated with enhanced communication and collaboration at the workplace. However, social technologies have both positive as well as negative consequences. The current study examines the impact of loneliness on employees' psychological well-being (PW); subsequently, the mediating role of social media use intensity (SMI) at the workplace. It also examines the moderating role of gender and management status of employees.Design/methodology/approachThe present study conducted an online and offline survey using a cross-sectional design. Data were collected from 206 working professionals from the IT industry in India. Structural equation modelling was applied to analyse data.FindingsResults revealed that employee loneliness is positively associated with SMI. Employee's SMI was positively associated with enhanced PW. Unexpectedly, employee loneliness is positively and significantly related to PW. However, the moderating roles of gender and management status of employees were not supported.Practical implicationsThe current study can help managers, policymakers and organizations better understand the role of employee social media use in the workplace. Using the insights and understanding offered by the study, social media can be effectively utilized in the workplace. The study recommends that organizations may allow the use of social media at the workplace. Social media resources may also be helpful in improving employee communication and digital literacy.Originality/valueThe current study is a pioneer work and contributes to the literature by examining the relationship between loneliness, SMI and PW. This study has essential theoretical and managerial contributions.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maria Giovina Pasca ◽  
Roberta Guglielmetti Mugion ◽  
Martina Toni ◽  
Laura Di Pietro ◽  
Maria Francesca Renzi

PurposeBike sharing (BS) is a phenomenon of growing interest in the sustainable mobility field. In recent years, many governments have implemented concrete actions to diffuse the services in cities, trying to encourage citizens' sustainable behavior. Several mobile applications (apps) related to the mobility sector have embedded gamification mechanics applied in non-gaming contexts, able to create and increase user engagement and to manage users' behavior (Deterding et al., 2011). The main purpose of this study is to understand whether app perception influences gamification, and how gamification improves service quality and user loyalty in BS systems.Design/methodology/approachTo examine the impact of gamification on service quality and loyalty, the study performed secondary data collection and qualitative analysis with in-depth interviews. Thereafter, a quantitative analysis was conducted, and the theoretical model was analyzed through structural equation modeling (SEM).Findingsfindings showed that the use of gamification mechanics in BS services improves users' loyalty and directly influences service quality. The gamification tool improves users' engagement, transferring rules, facilitating the achievement of goals and quality standards and enhancing the BS usage.Originality/valueThis study uniquely contributes an understanding of the effect of gamification on service quality and loyalty in BS usage. It also provides some insight for companies and policymakers into implementing gamification mechanics in order to address new challenges for quality management.


2019 ◽  
Vol 13 (2) ◽  
pp. 142-161 ◽  
Author(s):  
Uttam Chakraborty

Purpose This study aims to highlight the importance of brand equity dimensions which act as a mediator between online reviews and consumer’s purchase intention. In particular, the present study tries to determine which the Aaker’s (1991) brand equity dimensions have the mediating roles between source credible online reviews and purchase intention. Design/methodology/approach Data were collected from select e-commerce site’s brand community on Facebook social media platform through Google form application. The present study first determines the reliability of the variables. To check the unidimensionality of the variables, exploratory factor analysis has been performed. This study makes use of structural equation modeling bootstrapping method to examine the mediating effects of brand equity dimensions between source credible online reviews and purchase intention. Findings Data analysis reveals that marketers should concentrate more on brand awareness and perceived value, which ultimately influence the purchase intention of the consumers. Originality/value This paper is one of the first that examines the mediating effects of consumer-based brand equity dimensions between source credible online reviews and consumer’s purchase intention. Further, the present study integrates source credibility theory and attribution theory to develop the research model.


2018 ◽  
Vol 5 (2) ◽  
pp. 37-49
Author(s):  
Wahyu Yulianto

The study purpose is to analyse the impact of training, competence, motivation and leadership towards performance either directly or through job satisfaction as a mediator variable. As many as 55 staff are considered as respondents in this research, and census method is used as the sampling method. Primary data in this study were collected through questionnaires and analyzed using Likert Scale. Secondary data are obtained from the organization structure Sukamandi Apparatus Training Centre (BDA), performance appraisal, staff attendance, information system and personnel management. Structural Equation Modeling Analisis of Moment Structures (SEM-AMOS) is used to process and analyze data. This study shows staff with high education, competence and leadership have a significant effect on performance, While the job satisfaction is significant in mediating the influence of training, competence and leadership on performance. Next on the employee with low education, training, competence, motivation and leadership have a significant influence on performance, while job satisfaction is significant in mediating the effect of competence and leadership on staff performance.   Keywords:  training, competence, motivation, leadership, job satisfaction, performance


2020 ◽  
Vol 31 (3) ◽  
pp. 465-487 ◽  
Author(s):  
Carla Ruiz-Mafe ◽  
Enrique Bigné-Alcañiz ◽  
Rafael Currás-Pérez

PurposeThis paper analyses the interrelationships between emotions, the cognitive information cues of online reviews and intention to follow the advice obtained from digital platforms, paying special attention to the moderating effect of the sequencing of review valence.Design/methodology/approachThe data were collected from 830 Spanish Tripadvisor users. In a two-step approach, a measurement model was estimated and a structural model analysed to test the proposed hypotheses. SmartPLS 3.0 software was used. The moderating effect of sequencing of reviews is tested.FindingsThe data analysis showed a bias effect of review sequence on the impact of online information cues and emotions on intention to follow advice obtained from Tripadvisor. When the online reviews of a restaurant begin with positive commentaries, their perceived persuasiveness is a stronger driver of the pleasure and arousal elicited by online reviews than when they begin with negative reviews. On the other hand, the perceived helpfulness of online reviews only triggers arousal when the user reads negative, followed by positive, comments. The impact of pleasure on intention to follow the advice provided in an online travel community is higher with positive-negative than with negative-positive sequences.Originality/valueWhile researchers have demonstrated the benefits of customer reviews on company sales, a largely uninvestigated issue is the interplay between emotions and cognitive information cues in the processing of online reviews. This is one of the first studies to examine the moderating effect of conflicting reviews on the impact of emotions and cognitive information cues on consumer intention to follow the advice obtained from digital services.


2014 ◽  
Vol 25 (2) ◽  
pp. 245-269 ◽  
Author(s):  
Nancy W. Nix ◽  
Zach G. Zacharia

Purpose – Supply chains are embedded in a larger network of enterprises where firms exchange offerings, often compete for the same customers, and constantly innovate to improve their performance. In these dynamic environments, firms are increasingly dependent on the knowledge and expertise in external organizations to innovate, problem-solve, and improve performance. Firms are increasingly collaborating to exchange and pool skills and knowledge and deploy resources and capabilities not found in their own firm. This research using both structured interviews and survey data seeks to determine what are the direct benefits and the ancillary benefits of collaboration. The paper aims to discuss these issues. Design/methodology/approach – A mixed methodology approach was utilized, using qualitative structured interviews leading to developing a research model and then an empirical survey of 473 participants who are involved in their respective organization's collaboration projects. The data were analyzed using structural equation modeling to examine relationships between collaborative engagement, knowledge gained, operational outcomes and relational outcomes. Findings – The results of the study indicate that collaborative engagement has a direct effect on knowledge gained, operational outcomes and relational outcomes in collaboration. The ancillary benefit of collaboration is the learning that takes place leads to improved operational outcomes and relational outcomes. Research limitations/implications – In this research study all the constructs are only examined from a single perspective. This can be a limitation as it would be of greater value to collect data from all the members involved in the collaboration. Originality/value – Collaboration has been well studied in many fields but this research suggests an important ancillary benefit that needs to be considered when deciding to collaborate is the knowledge and learning that happens during a collaboration.


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