Enhancing online reviews: exploring the impact of characteristic-based review system on customer engagement for offline sellers

Abstract

Abstract This study explores the impact of a characteristic-based review system (CRS) compared with a conventional rating review system on customer engagement for offline sellers within the framework of a map-based platform. This study uses a quasi-experimental approach, the difference-in-differences method, to investigate actual data collected from a map-based platform in South Korea. The results demonstrate a notable improvement in customer engagement metrics facilitated by a CRS. Compared with the conventional rating review system, an 8.55% increase in the time customers stay, a 7.68% increase in the number of visits, a 17.23% increase in instances of sharing seller information, and a notable 11.4% increase in the number of times the destination guidance feature is used are observed. The nuanced feedback mechanism of the CRS and spatial context within the map-based platform contribute to a more informed and location-specific customer decision-making process. This study offers theoretical insights into the impact of CRSs on customer engagement, introduces expanded metrics, and underscores the importance of the spatial context. It also provides practical implications for platform operators, offline sellers, and customers, emphasizing the potential benefits of implementing a CRS to improve credibility and engagement in online reviews.