Tag Archives: complementarity

On the Spillover Effects of Online Product Reviews on Purchases: Evidence from Clickstream Data (ISR 2021)

Kwark, Young.*, Gene Moo Lee*, Paul A. Pavlou*, Liangfei Qiu* (2021) “On the Spillover Effects of Online Product Reviews on Purchases: Evidence from Clickstream Data“. Information Systems Research 32(3): 895-913. (* equal contribution)

  • Data awarded by Wharton Consumer Analytics Initiative
  • Presented in WCBI (Snowbird, UT 2015), KMIS (Busan, Korea 2016), Minnesota (2016), ICIS (Dublin, Ireland 2016), Boston Univ. (2017), HEC Paris (2017), and Korea Univ. (2018)
  • An earlier version was published in ICIS 2016
  • Research assistants: Bolat Khojayev, Raymond Situ

We study the spillover effects of the online reviews of other covisited products on the purchases of a focal product using clickstream data from a large retailer. The proposed spillover effects are moderated by (a) whether the related (covisited) products are complementary or substitutive, (b) the choice of media channel (mobile or personal computer (PC)) used, (c) whether the related products are from the same or a different brand, (d) consumer experience, and (e) the variance of the review ratings. To identify complementary and substitutive products, we develop supervised machine-learning models based on product characteristics, such as product category and brand, and novel text-based similarity measures. We train and validate the machine-learning models using product pair labels from Amazon Mechanical Turk. Our results show that the mean rating of substitutive (complementary) products has a negative (positive) effect on purchasing of the focal product. Interestingly, the magnitude of the spillover effects of the mean ratings of covisited (substitutive and complementary) products is significantly larger than the effects on the focal product, especially for complementary products. The spillover effect of ratings is stronger for consumers who use mobile devices versus PCs. We find the negative effect of the mean ratings of substitutive products across different brands on purchasing of a focal product to be significantly higher than within the same brand. Lastly, the effect of the mean ratings is stronger for less experienced consumers and for ratings with lower variance. We discuss implications on leveraging the spillover effect of the online product reviews of related products to encourage online purchases.

The Spillover Effects of User-Generated Online Product Reviews on Purchases: Evidence from Clickstream Data (ICIS 2016)

Kwark, Y., Lee, G. M., Pavlou, P. A., Qiu, L. (2016). The Spillover Effects of User-Generated Online Product Reviews on Purchases: Evidence from Clickstream DataProceedings of International Conference on Information Systems (ICIS 2016), Dublin, Ireland.

We analyze the spillover effect of online product reviews on purchases using clickstream data from a large retailer by investigating (a) whether the products are complementary/substitutive; (b) whether the products are from the same or a different brand, and (c) which media channel (mobile or PC) is used. To identify complementary/substitutive products, we used a text-mining approach of topic modeling on product descriptions to quantify the functional similarity of pairwise products. Our empirical analysis shows that the mean rating of online reviews of substitutive products has a negative role in purchasing, while the rating of complementary products has a positive role. Also, we find the negative spillover effect among substitutive products of different brands to be significantly greater than those of the same brand and for consumers who used mobile devices versus traditional PCs. Our study has implications on leveraging the spillover effect of online product reviews on substitutive/complementary products.