Book reviews posted on the websites of online retailers such as
Amazon and
Barnes & Noble
have a significant influence on the ultimate success or failure of new titles,
research has claimed.
A study by the Center for
Customer Insights at the
Yale School of Management on
the effects of consumer reviews on online book sales concluded that this
community content has an impact on consumers' purchases.
The study, by professors Judith Chevalier and Dina Mayzlin, aimed to
determine whether differences in customer reviews across the two US websites
affect sales.
Chevalier and Mayzlin chose random samples of titles from
Global Books in
Print and
Publishers Weekly
bestseller lists. The book and review data was collected from the Amazon and
Barnes & Noble websites.
For each book, the researchers looked at price, shipping time, sales rank,
the number of reviews, and the average number of stars assigned by reviewers.
The addition of favorable reviews at one site increased book sales at that
site relative to the other retailer. The researchers also found that negative
'one-star' reviews carry more weight with consumers than positive 'five-star'
reviews.
The impact of a negative review is more powerful in decreasing book sales
than a positive review is in increasing sales. The authors attributed this to
the credibility consumers place on the reviews.
For example, multiple glowing reviews for a book may be perceived as hype
generated by an author or publisher.
Overall, reviews are overwhelmingly positive at both sites, but reviews at
Amazon were found to be longer and more detailed. Although the results stop
short of showing that the retailers profit from providing customer reviews, the
authors assert that it is plausible.
"Our results show that customers behave as if the fit between customer and
book is improved by using reviews to screen purchases," said Professor Mayzlin.
"Since Amazon has a lot of reviewing activity, and its reviews are on average
quite positive and lengthy, we can speculate that the total number of books sold
at Amazon is higher than it would have been without the customer review feature.
"
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