Paying online community members to write product reviews backfires badly: study
Monday, May 1, 2017 - 15:32
in Mathematics & Economics
Online user reviews have become an essential tool for consumers who increasingly rely on them to evaluate products and services before purchase. The business models of online review platforms such as Yelp and TripAdvisor, and e-commerce sites such as Amazon and Expedia critically depend on them. Should such sites pay users to encourage them to write reviews? According to a forthcoming study in the INFORMS journal Marketing Science, a leading academic marketing journal, that is a bad idea. Paying users suppresses the number of reviews on social platforms, especially among those users who are socially well-connected and likely to be more influential.