Online reviews, customer Q&As, and product sales: A PVAR approach.

Abstract

Online reviews and customer Q&As have emerged as two vital forms of electronic word-of-mouth (eWOM) that significantly influence consumer decisions in e-commerce. Yet, a comprehensive understanding of the individual and combined roles of these eWOM types in shaping market dynamics remains elusive. This study addresses this research gap by tracking and analyzing three months of eWOM and sales data for 120 laptops on Amazon, comprising 7,205 online reviews, 6,365 customer Q&A questions, and 7,419 answers. Leveraging the Panel Vector Autoregression (PVAR) model and STATA16.0 software, we unravel the intricate dynamics between online reviews, customer Q&As, and laptop sales. The empirical results reveal distinctive influence mechanisms of online reviews and customer Q&As on product sales, with review volume and answer valence positively affecting sales. Importantly, answer volume was found to stimulate online reviews and enhance their valence. Our study elucidates the interplay among online reviews, customer Q&As, and product sales, underscoring the need for future research on multi-type eWOM. Further, the insights gleaned offer valuable guidance for online platforms and retailers to strategize their eWOM management.