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The effect of online reviews on product sales: A joint sentiment-topic analysis |
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| Authors: | Xiaolin Li Chaojiang Wu Feng Mai |
| Affiliation: | 1. Department of e-Business and Technology Management, College of Business and Economics, Towson University, Towson, MD, 21252, United States;2. Decision Sciences and MIS, LeBow College of Business, Drexel University, United States;3. School of Business, Stevens Institute of Technology, United States |
| Abstract: | This research examines the business impact of online reviews. It empirically investigates the influence of numerical and textual reviews on product sales performance. We use a Joint Sentiment-Topic model to extract the topics and associated sentiments in review texts. We further propose that numerical rating mediates the effects of textual sentiments. Findings not only contribute to the knowledge of how eWOM impacts product sales, but also illustrate how numerical rating and textual reviews interplay while shaping product sales. In practice, the findings help online vendors strategize business analytics operations by focusing on more relevant aspects that ultimately drive sales. |
| Keywords: | eWOM Electronic word-of-mouth Star rating Textual sentiment Topical sentiment Product reviews Sales Joint sentiment-topic analysis JST Mediation analysis |
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