The Influence of Online Product Review Variance on Consumer Evaluations: An Examination of Intrinsic and Extrinsic Cues

Abstract

This research examines the potential for variance in online product reviews to have differential effects on consumers’ product evaluations depending upon the type of intrinsic and extrinsic cues employed by the consumer. Drawing on the accessibility-diagnosticity framework, we predict that higher levels of variance among product review ratings (e.g. 1-star vs. 5-star) will have a deleterious effect on consumers’ product evaluations; however this effect may be offset depending upon the type of intrinsic and extrinsic cues involved in consumer’s evaluation of the product. Our results suggest that in the absence of additional diagnostic information, greater variance among product review ratings creates uncertainty, thereby diminishing purchasing intentions. Evidence is also found for an interaction between the online reviews variance and product attribute type, such that when review variance is low, no difference is observed between search and experience attributes; however when variance is high, the diagnosticity of search attributes is diminished, resulting in lower purchase intentions. From an extrinsic cue perspective, our study finds that only the credibility of the reviewer source and not brand equity, serves to offset the negative influence of product review variance on consumers’ purchase intentions.