Predicting online e-marketplace sales performances: A big data approach

Confirming the predictive power of product review volume and rating on sales.Examining product type, answers, discount and information usefulness as moderators.Using big data architecture to collect data for model testing. To manage supply chain efficiently, e-business organizations need to understand their sales effectively. Previous research has shown that product review plays an important role in influencing sales performance, especially review volume and rating. However, limited attention has been paid to understand how other factors moderate the effect of product review on online sales. This study aims to confirm the importance of review volume and rating on improving sales performance, and further examine the moderating roles of product category, answered questions, discount and review usefulness in such relationships. By analyzing 2939 records of data extracted from Amazon.com using a big data architecture, it is found that review volume and rating have stronger influence on sales rank for search product than for experience product. Also, review usefulness significantly moderates the effects of review volume and rating on product sales rank. In addition, the relationship between review volume and sales rank is significantly moderated by both answered questions and discount. However, answered questions and discount do not have significant moderation effect on the relationship between review rating and sales rank. The findings expand previous literature by confirming important interactions between customer review features and other factors, and the findings provide practical guidelines to manage e-businesses. This study also explains a big data architecture and illustrates the use of big data technologies in testing theoretical framework.

[1]  Eric K. Clemons,et al.  When Online Reviews Meet Hyperdifferentiation: A Study of Craft Beer Industry , 2006, Proceedings of the 39th Annual Hawaii International Conference on System Sciences (HICSS'06).

[2]  Matthew K. O. Lee,et al.  The impact of electronic word-of-mouth: The adoption of online opinions in online customer communities , 2008, Internet Res..

[3]  Jonah Berger,et al.  Positive Effects of Negative Publicity: When Negative Reviews Increase Sales , 2009, Mark. Sci..

[4]  Geng Cui,et al.  Terms of Use , 2003 .

[5]  Peter H. Bloch,et al.  After the New Wears Off: The Temporal Context of Product Involvement , 1986 .

[6]  David Schuff,et al.  What Makes a Helpful Review? A Study of Customer Reviews on Amazon.com , 2010 .

[7]  R. Marshall,et al.  Price threshold and discount saturation point in Singapore , 2002 .

[8]  Anindya Ghose,et al.  Examining the Relationship Between Reviews and Sales: The Role of Reviewer Identity Disclosure in Electronic Markets , 2008, Inf. Syst. Res..

[9]  L. McNeill,et al.  Sales promotion in Asia: successful strategies for Singapore and Malaysia , 2013 .

[10]  Alain Yee-Loong Chong,et al.  Demand chain management: Relationships between external antecedents, web-based integration and service innovation performance , 2014 .

[11]  Ming Li,et al.  An approach of product usability evaluation based on Web mining in feature fatigue analysis , 2014, Comput. Ind. Eng..

[12]  Lihua Huang,et al.  Promotional Marketing or Word-of-Mouth? Evidence from Online Restaurant Reviews , 2013 .

[13]  Jen-Hung Huang,et al.  Herding in online product choice , 2006 .

[14]  Fernando R. Jiménez,et al.  Too Popular to Ignore: The Influence of Online Reviews on Purchase Intentions of Search and Experience Products , 2013 .

[15]  Andrew Whinston,et al.  The Dynamics of Online Word-of-Mouth and Product Sales: An Empirical Investigation of the Movie Industry , 2008 .

[16]  Wei Chen,et al.  The influence of user-generated content on traveler behavior: An empirical investigation on the effects of e-word-of-mouth to hotel online bookings , 2011, Comput. Hum. Behav..

[17]  Huaiqing Wang,et al.  On the model design of integrated intelligent big data analytics systems , 2015, Ind. Manag. Data Syst..

[18]  Alain Yee-Loong Chong,et al.  Predicting consumer product demands via Big Data: the roles of online promotional marketing and online reviews , 2017, Int. J. Prod. Res..

[19]  Robin S. Poston,et al.  Effective Use of Knowledge Management Systems: A Process Model of Content Ratings and Credibility Indicators , 2005, MIS Q..

[20]  Albert L. Lederer,et al.  A resource-based view of electronic commerce , 2006, Inf. Manag..

[21]  Pierre Chandon,et al.  A Benefit Congruency Framework of Sales Promotion Effectiveness , 2000 .

[22]  D. Gefen,et al.  Consumer trust in B2C e-Commerce and the importance of social presence: experiments in e-Products and e-Services , 2004 .

[23]  Jasmina Berbegal-Mirabent,et al.  Antecedents of online purchasing behaviour in the tourism sector , 2016, Ind. Manag. Data Syst..

[24]  Eugene Ch'ng,et al.  The bottom-up formation and maintenance of a Twitter community: Analysis of the #FreeJahar Twitter community , 2015, Ind. Manag. Data Syst..

[25]  Dimple R. Thadani,et al.  The impact of electronic word-of-mouth communication: A literature analysis and integrative model , 2012, Decis. Support Syst..

[26]  JoongHo Ahn,et al.  Normative Social Influence and Online Review Helpfulness: Polynomial Modeling and Response Surface Analysis , 2015 .

[27]  Tung Bui,et al.  Harnessing the Influence of Social Proof in Online Shopping: The Effect of Electronic Word of Mouth on Sales of Digital Microproducts , 2011, Int. J. Electron. Commer..

[28]  Scot Burton,et al.  Distinguishing Coupon Proneness from Value Consciousness: An Acquisition-Transaction Utility Theory Perspective , 1990 .

[29]  David Schuff,et al.  What Makes a Helpful Review? A Study of Customer Reviews on Amazon.com , 2010 .

[30]  P. Nelson Information and Consumer Behavior , 1970, Journal of Political Economy.

[31]  Raji Srinivasan,et al.  Social Influence Effects in Online Product Ratings , 2012 .

[32]  M. Deutsch,et al.  A study of normative and informational social influences upon individual judgement. , 1955, Journal of abnormal psychology.

[33]  Etta Y. I. Chen,et al.  Consumers' Online Information Search Behavior and the Phenomenon of Search vs. Experience Products , 2004 .

[34]  Paul A. Pavlou,et al.  Swift Guanxi in Online Marketplaces: The Role of Computer-Mediated Communication Technologies , 2014, MIS Q..

[35]  David L. Mothersbaugh,et al.  Information content and consumer readership of print ads: A comparison of search and experience products , 2004 .