Online Review Influence on the Retail Industry: Theoretical Extension and Analysis

Online Review Influence on the Retail Industry: Theoretical Extension and Analysis

Pooja Misra, Swarnava Dutta, Debajit Kumar Bhatta
Copyright: © 2024 |Pages: 16
DOI: 10.4018/IJEBR.338278
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Abstract

The research undertaken investigates the effect of online reviews on purchase emotions of young consumers with reference to National Capital Region of India. Quantitative aspects of online reviews, like reviewer quality, reviewer exposure, product attributes, and temporal effects have been considered. Based on literature review, the S-O-R model has been further built on and constructs of A.I.S.A.S. model, i.e., attention and trust, action and share have been incorporated to evaluate buying pattern and behaviour they follow related to online review. Interestingly, when consumers read online reviews, they concentrate not only on review scores but also refer to other textual information like a reviewer's trust and the content associated with it such as various pictures and videos. It is also seen that the market responds more favourably to reviews written by reviewers with better reputations and better exposure, i.e., the influencers. The study also aims to explore the strength of the relationship between the identified independent constructs of online reviews and buying behaviour of an individual.
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1. Introduction

Online e-commerce channels, their ease of use feature and amazing visual displays play a significant role in the process of customers firming up on their purchase intentions. There are various demographic features that affect purchase intent which might include age, gender, income, internet adaptability etc. India in today’s date is an economy fast on the rise with a demographic dividend in its favour and a large size of population between 25-35 years of age. The youth today has exposure to multiple channels of products both online and offline. Consumers frequently form an emotive connect to the merchandise and direct it in the reviews. It is of benefit to the retailers and business owners to pay attention to the written feedback and read online reviews to comprehend the customers’ wants and demands. It has been seen that a higher importance is given to online reviews if consumer’s outlay is serious.

According to PwC’s retail survey, “54% of 23,000 online shoppers surveyed in 25 countries go online to buy products on a weekly or monthly basis. 67% said their shopping behaviour is affected when they read or write comments on social media” (PriceWaterhouseCoopers, 2016). As per a survey by Power Reviews “95% of the people surveyed said they read the online reviews and comments about products and that it affects whether or not they purchase that product” (Sparker, 2020) . Consumer evaluation implies that they need to know about the visual of the product and is the product able to satisfy the need appropriately. Thus, the impact of the review can lead to influencing those consumers who are at the principal phase of the purchase procedure or still deciding on their purchase intention.

Shopper learning alludes to the fact that consumer reviews help them gain information, experience and help improve their purchase conduct during the buy. Purchasers' perspectives are influenced by number and appraisals of online surveys. Online reviews of reliability and usefulness can be understood as a kind of customer learning behaviour. Observing consumer purchasing process from the point of customer learning can turn out to be crucial. It can be predicted that these reviews have a considerable impact on the purchase intention of consumers. Therefore, it is vital for businesses to comprehend the foundation of these online articulations and strategize accordingly.

Social media strongly influences consumer buying decisions and analysis of the same is most likely to help in developing strategies for one’s venture. The younger generation i.e. the youth audience prefers products with finer attributes and higher number of consumer ratings vis-à-vis the older generation who are likely to be influenced by a strong negative review. A better ratio of good to bad feedback will maximize sales and minimize the potentially damaging impact of disapprovals. Incentivizing customers is a great way for businesses to boost the number of positive feedbacks. Consumers themselves say that the favorable way to incentivize them is to allow them to participate in a prize draw or offer 15-20% off in their next purchase. For example, Burger King offers a discount of 10% on every order if they can convince the customer to fill up the online review form through their official website.

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