Product Reviews and Competition in Markets for Repeat Purchase Products

  title={Product Reviews and Competition in Markets for Repeat Purchase Products},
  author={Xinxin Li and Lorin M. Hitt and John Zhang},
  journal={J. of Management Information Systems},
this paper examines how information provided by online reviews influences firms’ pricing strategy for repeat purchase products. It is commonly understood that online reviews can reduce consumer uncertainty about product characteristics and, therefore, have the potential to increase product demand and firm profits. However, when considering repeat purchase products, online reviews have an additional effect in that they can alter consumers’ propensity to switch among products, which can intensify… CONTINUE READING

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