The influence of the online community, professional critics, and location similarity on review ratings for niche and mainstream brands

Abstract

Distinctions in the attributes of niche versus mainstream brands are leveraged to explain differences in the drivers of online review ratings. Specifically, we examine how customer review valence, professional critics review valence, community characteristics, location similarity, and reviewer characteristics may impact a reviewer’s rating. We use a unique dataset on the U.S. beer product category to address our research questions and find that niche brands are more impacted by OWOM activity across the board because consumers are less likely to have established brand awareness and brand imagery formed. Likewise, a reviewer is prone to rating a local niche brand more favorably. Professional critics are generally less influential than the online community for the typical focal reviewer. A prior review from the online community becomes particularly influential when its expertise is high and/or when the prior reviewer has shared geographic locational traits with the focal reviewer. Reviewers that engage more with products/brands tend to align sentiments with professional critics, while those that engage more with the online community tend to align sentiment with that community. Utilizing insights from these results, we provide several guidelines for brand managers in devising appropriate social media strategies.