The Credibility of Online Reviewers on Search, Experience and Credence Services

Abstract

Checking online reviews before purchasing has become a no-brainer today, with 86% of consumers reading reviews before visiting a local business (BrightLocal, 2018). More than just a way of knowing what to expect, reviews can also encourage consumption (Chevalier & Mayzlin 2006), or encourage consumers not to consume: 43% of consumers will not use a business if it has less than 4 stars (BrightLocal, 2018). Previous research demonstrated that reading online reviews before purchasing is a way to reduce purchase risk by seeking more information from a third party (Chakravarty, Liu, and Mazumdar 2010). Consumers appreciate being able to read Online Customer Reviews (OCR) because they find them to be a more credible source of information than the usual sales pitch (Dewenter and Heimeshoff 2015). More than useful, customer reviews are also extremely powerful, being a one-to-many means of communication, between one writer and many readers (Litvin et al., 2008).