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Journal of Retailing and Consumer Services 68 (2022) 103066

Contents lists available at ScienceDirect

Journal of Retailing and Consumer Services


journal homepage: www.elsevier.com/locate/jretconser

Measuring the impact of online reviews on consumer purchase decisions –


A scale development study
Semila Fernandes a, b, Rajesh Panda c, V.G. Venkatesh d, *, Biranchi Narayan Swar e,
Yangyan Shi f, g, **
a
Symbiosis Institute of Business Management, Bengaluru, India
b
Symbiosis International (Deemed University), Pune, India
c
Xavier Institute of Management, XIM University, Bhubaneswar, India
d
EM Normandie Business School, METIS Lab, France
e
Management Development Institute, Murshidabad, India
f
School of Economics and Management, China University of Geosciences, Wuhan, China
g
Macquarie Business School, Macquarie University, Sydney, Australia

A R T I C L E I N F O A B S T R A C T

Keywords: Consumers’ exposure to online reviews influences their online retail shopping behavior. They search for reviews
Consumer psychology while evaluating products for purchase decisions. Past studies have indicated that online reviews affect the
Retailing credibility and trust of the sellers and the products they sell on online platforms. Keeping this in view, the current
Scale development
paper aims to develop and validate a scale to understand the impact of online reviews on consumer purchase
Purchase decision. online reviews
Word-of-mouth.
decisions. Data were collected from 431 young online shoppers for this research. The initial exploratory factor
analysis (EFA) results helped identify four factors, viz. source credibility, volume, language and comprehension, and
relevance which constitute the scale. The scale was validated by confirmatory factor analysis (CFA). The study’s
findings fill the gap of having a standardized scale that online retailers can use as indicators to assist consumers
in their online decision-making. The discussions and implications support consumers’ susceptibility to online
reviews, an essential source for product and brand information in facilitating online consumers’ purchase
decisions.

1. Introduction (Morrison, 2015). A ‘sales assistant’ assists a consumer by searching for


product-attribute information; similarly, online customer reviews help
In October 2020, research by Wall Street Journal revealed surprising consumers identify information about a product that best matches their
factual statistics every business would want to know and the importance needs (Schneider and Zielke, 2020). Most consumers like to go through
of online reviews (The Wall Street Journal, 2020). Firms need to capi­ other consumers’ opinions about retailers’ products or services before
talize on their understanding of online reviews as online shoppers finalizing their purchase decisions.
consider online reviews as channels of getting product information The study is motivated by a specific behavior of consumers in the
while making purchase decisions (Fu et al., 2020). Newspaper articles online environment - consumers spend more on products with excellent
viz. business news daily in November 2021 also guided firms towards online reviews indicating the economic value of online reviews (Thakur,
the dynamics of responding to an online review (Business News Daily, 2018). Extant literature underpins the importance of online reviews and
2021). Unlike offline purchases, customers cannot touch or feel the identifies a few variables that consumers rely on while making online
product online and depend on consumer reviews (Schneider and Zielke, purchases (Li et al., 2020). Additionally, the context of this study is India
2020). A Google study based on 57 million online customer reviews which is an emerging market. India is the second-largest online market
indicated that these reviews influenced consumers’ purchase choices globally, with 622 million internet users, and it is projected that this

* Corresponding author.
** Corresponding author. School of Economics and Management, China University of Geosciences, Wuhan, China.
E-mail addresses: semila123@gmail.com (S. Fernandes), rajeshpanda.80@gmail.com (R. Panda), vgv1976@gmail.com (V.G. Venkatesh), drbiranchi.marketing@
gmail.com (B.N. Swar), ys102@hotmail.com (Y. Shi).

https://doi.org/10.1016/j.jretconser.2022.103066
Received 26 February 2022; Received in revised form 22 May 2022; Accepted 23 June 2022
Available online 9 July 2022
0969-6989/© 2022 Elsevier Ltd. All rights reserved.
S. Fernandes et al. Journal of Retailing and Consumer Services 68 (2022) 103066

number will increase to 900 million by 2025 (IAMAI-Kantar, 2021). This studies that confirm the reliability and validity of the instrument.
shows that India will be a lucrative market for online retailers to sell Finally, we present how marketers can apply for online reviews in our
their products and services with the growing online population. relevant discussions in Section 4. Section 5 contributes to the study,
Besides, 70 percent of customers refer to online reviews before including theoretical and managerial implications. Section 6 concludes
finalizing their purchase decisions, and 63 per cent of customers are with limitations and future research agenda.
more likely to buy the product if it has higher product ratings and
positive reviews (Rauschnabel et al., 2019; MacDonald, 2018). Young 2. Theoretical and literature background
shoppers are the predominant group who buy online (Lissitsa and Kol,
2016; Singh et al., 2018). A recent study posited that a younger group of 2.1. Electronic-word of mouth and online reviews
consumers looked for online reviews and agreed that online shopping
was more convenient. Customers considered ‘reviews’ and ‘ratings’ as Word-of-Mouth (WOM) is a dominant force in influencing con­
two essential sources of information (Shin and Darpy, 2020). Such re­ sumers’ decisions. Electronic-WOM (e-WOM) is gaining prominence and
views and opinions on the web and e-commerce portals have been is recognized as the new communication medium (Choi and Maasberg,
referred to as e-WOM (electronic Word of Mouth). 2021). e-WOM refers to informal means of communication directed to­
Online reviews support consumers in gaining product-related infor­ wards consumers adopting internet-based technology, which compre­
mation, thereby increasing their confidence during online purchasing. hends various websites and media forms, including online customer
These reviews are offered as an alternative by e-commerce firms to reviews (Gottschalk and Mafael, 2017). These consumer-generated on­
physically or visually interact with the product (Changchit et al., 2022). line reviews for products and services are increasing in importance and
Extant literature reveals that although users have been accustomed to popularity (Lee and Choeh, 2018). Research has indicated that e-WOM is
online reviews, it remains far from deliberating how users perceive frequently generated through social media and online shopping plat­
online reviews (Changchit et al., 2022). The motivation to share and forms. Research scholars have confirmed that these platforms of e-WOM
post reviews is dependent on the consumer behavior and psychological influence purchase decisions (Duarte et al., 2018). e-WOM in online
aspects of an individual, which is more challenging to measure and shopping platforms is generated through online reviews by existing
observe (Iacobucci, 2010). Extant literature has attempted to identify buyers. These online customer reviews are recognized as one of the
individual constructs and variables that enhance e-WOM (Augusto and pivotal forms of e-WOM. It has also been seen that when consumers are
Torres, 2018). Researchers have separately analyzed the variables that making product decisions, they rely more on online reviews (Choi and
explain the usefulness of online reviews, such as. quality, quantity, star Maasberg, 2021). Moreover, consumers look for the total number of
ratings, credibility, reviewer identity (Filieri et al., 2020; Nieto-Garcia online reviews as qualifying items, reflecting upon the popularity and
et al., 2019). However, studies suggest that individual attributes such as awareness of that product or service (Chen et al., 2017).
star ratings, review language, positive and negative reviews, recently Consumer-generated online reviews gauge the persuasion of e-WOM
received reviews, and style of writing reviews are not ideal indicators for with a specific focus on the perceived effectiveness and trustworthiness
customers’ perceived satisfaction and quality. At a macro level, the key of reviews (Srivastava and Kalro, 2019).
challenge for retailers is to examine these attributes together in purchase
decisions. Among the various research papers that have worked on on­ 2.2. Attributes of online reviews and consumer purchase decisions
line reviews, the methods adopted for measuring these individual items
of online reviews are correlation (Racherla et al., 2013), Factor analysis, Online content in the form of online reviews is becoming increas­
multiple regression & ANOVA (Schuckert et al., 2015), machine learning ingly popular in Internet-Based Marketing (Choi and Maasberg, 2021).
techniques (Leung et al., 2013) and questionnaire-based studies (Iaco­ Online reviews significantly influence consumers’ purchase intention
bucci, 2010). However, literature has recommended validating these (Huang et al., 2019). Reviews usually reflect upon arguments that the
attributes through a measurement model to build the credibility of on­ consumers categorize into pros and cons or positive arguments and
line reviews (Schuckert et al., 2015). To the best of our knowledge, there opposing arguments (Risselada et al., 2018). Negative reviews discon­
is no such scale that comprehensively measures online reviews through a firmation has more significant and stronger effects than positive reviews
standardized scale (Schuckert et al., 2015; Kim and Song, 2018; Kyr­ disconfirmation (Li et al., 2020). In addition to the number of online
iazos, 2018). To study this gap, the current study endeavors to explore reviews, the type of reviews also impacts f consumers, potentially
the following research question: Which reliable and valid indicators yielding better purchase intention results. Studies showed that online
highlight the influence of online customer reviews? This research answers reviews generated through internet forums are perceived to be much
the question in three steps: identifying the research gaps and employing more credible and trustworthy than the corporate websites generated by
focus group discussions (FGDs) to generate new items and validate the the marketer. Consumers go through online reviews across multiple sites
items identified through literature, exploratory factor analysis (EFA) and internet forums (Thakur, 2018). These number/quantity of reviews
followed by confirmatory factor analysis (CFA) to systematically purify and their types/quality positively influence the credibility and trust of
and validate the factor structure therebyproposing a new standard the seller/product (Ismagilova et al., 2020). As the number of reviews
measurement scale. increases in the online environment, obtaining specific information
The work contributes to the retailing domain in multiple ways. becomes difficult, and hence consumers look out for heuristic cues like
Firstly, it develops and proposes a comprehensive measurement scale to the star ratings to simplify their search and evaluation process (Yi and
measure online reviews. Secondly, this pioneering work in consumer Oh, 2022; El-Said, 2020).
retailing proposes new items such as ‘trusting the reviews from a verified Recent/current reviews reflect upon the evidence about the products
customer’ and ‘the style of writing reviews’ that impact customers’ and services, thereby showcasing higher credibility (Shareef et al.,
product purchase journeys. This will improve the measurement of online 2019). The study conducted by Shaheen et al. (2019) found that the
reviews in marketing. This robust, validated scale helps analyze the usefulness of online customer reviews and credibility induces the
broad items and fine-tune them to reflect a few specific dimensions. This adoption of reviews and the propensity to trust online retailers. Simi­
scale will enable new theoretical underpinnings and help researchers larly, consumers believe negative reviews to be much more authentic
compare the scale across cultures and markets. than positive reviews, even in online buying behavior. Negative reviews
The paper has six sections. Section 1 includes the introduction; have a more substantial influence on consumers’ assessment of services
Section 2 includes the theoretical and literature background. Section 3 or products and purchase intention against a positive message (Weis­
elucidates the methodology and the scale development procedure. Our stein et al., 2017). Research has also indicated that the attributes of
empirical scale development and validation process comprise three online reviews such as the richness of the review, review ratings, their

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S. Fernandes et al. Journal of Retailing and Consumer Services 68 (2022) 103066

relevance (Nieto-Garcia et al., 2019), and the reviewers’ identity dis­ Table 1
closures and their level of expertise (Munzel, 2016; Chen et al., 2017) Summary of recent notable works.
depict positive influence towards an online purchase decision. Re­ Sl. Authors/Year Concept Key Findings
searchers have also discovered that consumers value the online gener­ No
ated reviews only when the reviewer has an experience of using the 1 Choi & Maasberg Effects of product Online reviews had a
product or service (Stein and Ramaseshan, 2016). Empirical studies (2021) reviews persuasive impact on
have also posited how online reviews are written, which subtly affects consumers’ processing of
consumers’ purchase decisions (Dixit et al., 2019). The semantic con­ information.
2 Hsieh and Li Susceptibility towards Trustworthiness, fairness,
tent, language, and style of writing consumer reviews influence online (2020) Source Credibility and justifiability of the
consumer sales. Linguistic style and Content are inseparable and rein­ source were significant.
force the impact of online reviews, thereby making the review clearer 3 Mariani. and Online reviewers’ Review ratings, review
and more unambiguous, and appealing to the reader (Stein and Ram­ Predvoditeleva behavior comments, helpful votes,
(2019) and length of the textual
aseshan, 2016).
review positively impact
The literature supported the relationship between pre-purchase in­ review continuity and
formation (online reviews) and purchase decisions (Saha and Sahney, frequency.
2022). Furthermore, the data collected from inbound tourists in China 4 Mariani and Type of Reviewers Helpful reviewers are those
also reflected the influence of online reviews on the sale of consumer Predvoditeleva who post reviews and
(2019) actively travel more.
products (Siddiqi et al., 2020). The studies also recognized the role of 5 Nieto-Garcia et al. Reputation and Message and messenger
online reviews, both valence and volume, in creating trust among con­ (2019) expertise of the determine review
sumers while shopping. The study revealed that reviews enhance the Reviewer, star ratings, usefulness.
effect of a positive summary review on trust (Sebastianelli and Tamimi, and length of reviews
6 Heng et al. (2018) Social media platforms Results indicated that
2018). In the hotel industry, the positive valence rate of reviews and the
as a source of review quality and source
number of reviews significantly impact online hotel booking (Fu et al., knowledge on brands were essential items
2021). Studies have also demonstrated the impact of online reviews on influencing the credibility
travelers’ online hotel booking intentions. Researchers identified mul­ of the consumer towards
tiple attributes of online reviews, such as usefulness, reviewer expertise, assessment of online
review.
timeliness, volume, and valence (negative and positive) (Zhao et al.,
7 Hajli (2018) Information credibility Online WOM was found to
2015). The results revealed a significantly negative relation between be a credible and helpful
negative online reviews and online booking intentions. However, posi­ piece of information.
tive online reviews upon booking intentions in isolation might not in­ 8 Chen et al. (2017) Identity of reviewers on Quantitative variables of
the social media reviews, viz. overall review
fluence purchase, and hence there is a need to explore additional
platform ratings, hotel stars,
attributes that drives purchase decision (Zhao et al., 2015). Moreover, reviewer identity, etc., are
studies posited that an increase in online reviews alone has no signifi­ helpful on social media.
cant impact on selling online (Davis and Khazanchi, 2008). In the case of 9 Chen et al. (2017) e-WOM and When e-WOM valence was
online shopping, negative online reviews impact consumers’ purchase association-based positive, corporate posting
strategy for corporate on consumers’ CSR
decisions more than positive reviews (Jin, 2007).
posting on social media associations was
Consumers can evaluate better when reviewers indicate their per­ significant.
sonal identity/real name with a photo (Kim, 2020; Mariani and Pre­ 10 Hsu et al. (2017) Online reviews on Lower purchase intention
dvoditeleva, 2019). A positive relationship between reviewer expertise purchase intention was observed when
subjects were exposed to
and people’s purchase intentions was observed in extant literature (Tan
harmful online customer
et al., 2008). It has thus been important for reviewers to fully identify reviews.
their individuality while posting online content to qualify the source as 11 Zhao et al. (2019) Online textual reviews Length of the reviews
credible, although it is not mandatory (Ismagilova et al., 2020). Profile reduces customer
photos of the reviewers also help improve the credibility of their reviews satisfaction levels.
12 Weisstein et al. Negative online WOM Consensus in online
(Kim et al., 2020). Thus, consumers’ purchase decisions are influenced
(2017) communication negative WOM
when there is an interaction between the facial expression of the communication impacts
reviewer and the content of online reviews, which provides a strength of potential evaluations of the
intention to purchase the product (Heng et al., 2018). Table 1 provides a firm.
13 El-Said (2020) Responding to single A complaint framework
summary of recent notable works.
star reviews was developed for lower-
Overall, the above review establishes that online reviews (a promi­ star rating reviews.
nent form of e-WOM) are an essential force that influences consumers’
online purchases. Consumers frequently refer to online reviews and are
primarily dependent on the type of responses shared by the reviewers. 3. Research methodology
The researchers indicated that the reviewer’s expertise, star ratings,
length of reviews, the credibility of information, reviewers’ behavior, 3.1. Scale development procedure
and the reviewer’s identity are the key factors that impact potential
evaluations of consumers’ purchase journey. However, such variables The research article adopts recognized procedures of Churchill
have not yet been grouped to constitute a scale for measuring online (1979) and Brod et al. (2009) to construct the measurement scale: a
reviews. This study identifies relevant variables and develops a mea­ qualitative and quantitative study involving a consumer survey followed
surement model to propose a scale for online reviews based on the by a purification study and data validation. Fig. 1 below depicts the
literature review. research scheme adopted for the scale development procedure.

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S. Fernandes et al. Journal of Retailing and Consumer Services 68 (2022) 103066

Fig. 1. Research Scheme for Scale development.

Several inquiry types are imperative to develop generalizability and customer loyalty (El-Adly, 2019). Researchers have argued that in
improve the scale’s validity (Spake et al., 2003). On that recommen­ addition to the semantic content of the messages, linguistic styles also
dation, the present study focuses on three phases as below: shape shoppers’ choice decisions (Tran and Strutton, 2020).
The first phase – Qutative Study: Variables to be part of the study were Further, clear and unambiguous reviews appeal to the readers,
identified through literature. This was followed by Four mixed-sex Focus reinforcing the influence of the reviews (Stein and Ramaseshan, 2016).
Group Discussions (FGDs) with 10–12 shoppers each, which helped Finally, shoppers go through online customer reviews across multiple
explore variables and check the applicability of variables identified websites, chats, and internet forums to support their purchase decisions
through literature. (Goes et al., 2014). As prompted by extant studies, the factors that in­
The second phase – Purification: Exploratory Factor Analysis (EFA), fluence consumers’ online shopping environment are stated below:
was conducted with 380 respondents, which resulted in four-
dimensional factors – Source Credibility, Volume, Language Comprehen­ 1. I look for reviews that describe the benefit/problem of the
sion, and Relevance. The same factor structure was confirmed through product (Kawaf and Istanbulluoglu, 2019).
Confirmatory Factor Analysis (CFA). 2. I look for reviews at multiple sites to confirm the review scores
The third phase– Validation: CFA was administered with a new set of (Goes et al., 2014).
278 participants, and the 17-item scale termed ‘Online Review’ was 3. The average score/star rating is essential for a product (El-Said,
validated. 2020).
4. I prefer that the reviews included are appealing and straightfor­
3.2. Qualitative inquiry approach ward (Tran and Strutton, 2020).
5. I prefer that reviews supported by relevant arguments are critical
The qualitative inquiry approach was followed by reviewing extant (Risselada H. et al., 2018).
literature and involving focus group discussions (FGDs). This approach 6. If the number of reviews are less, I hesitate to consider the re­
helped in item generation. The literature-generated item pools are re­ views while buying the product (Grewal et al., 2020).
flected in the statements below: Studies have indicated that consumers 7. Negative reviews influence more than positive reviews (Weisstein
pay attention to online customer reviews (Kim and Song, 2018). These et al., 2017).
online generated reviews reflect upon the arguments that shoppers 8. I trust the information more when I believe the reviewer has
categorize into positive and negative arguments based on the pros and adequate knowledge/expertise of the product (Vermeulen and
cons of the reviews (Risselada H. et al., 2018). Additionally, the number Seegers, 2009).
of reviews is considered anchored by consumers who provide aggregate 9. I look for extreme views (5-star or 1-star) while evaluating a
review content rather than individual reviews (Grewal et al., 2020). It is product (Sen and Lerman, 2007).
not only about the number of reviews, but consumers search for heu­ 10. The reviews are more credible if the name/image of the reviewer
ristic cues in the form of star ratings that will simplify their search and is available (Munzel, 2016).
evaluation process (El-Said, 2020; Herhausen et al., 2015). 11. I believe reviews impact my decision to purchase or not to pur­
On another side, extreme views depicted through ratings (5-star or 1- chase a product (Kim and Song, 2018; Hsu et al., 2017).
star) matter to the shopper when evaluating their choices (El-Said, 12. I look for the seller’s response instead of the customers’ reviews
2020). In comparison, recent or current reviews are more credible in (Munzel, 2016).
providing evidence about the products they search for (Shareef et al., 13. The review is more helpful if the message is clear and unambig­
2019). Research has posited that consumers value those uous (Lu et al., 2018).
online-generated reviews reviewed based on their product use and 14. Recent reviews are more important than older ones (Lee et al.,
experience (Ahani et al., 2019). Studies have reported that when re­ 2017).
viewers reveal their identity or their real name and photo, consumers 15. I believe the review is more credible when the reviewer is the
are better positioned to evaluate their product and service choice as they product’s user (gender/age-specific products) (Mariani and Pre­
get connected and relate to the overall experience (Munzel, 2016). dvoditeleva, 2019).
Consumers get positively influenced by these attributes of online
customer reviews where reviewers’ identity disclosures and level of 3.3. Assessment of face validity
expertise are revealed (Mariani and Predvoditeleva, 2019). Literature
has depicted that consumer weighs negative messages much more than Face validity is recognized as a practice of editing and generating
positive messages in their evaluation criteria (Weisstein et al., 2017). items by involving an expert panel. It enhances the correctness/appro­
Hence, the sellers and managers need to respond immediately, effec­ priateness of each item before getting into the content validity stage
tively, and authenticate these negative messages to generate positive (Hardesty and Bearden, 2004). Face validity step of 15 items involved a

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S. Fernandes et al. Journal of Retailing and Consumer Services 68 (2022) 103066

panel of experts comprising twelve industry experts (having experience respondents to assess the dimensionality of the items identified.
from 10 to 22 years) and three marketing researchers. It involved a
Delphi process to help establish the relevance of items. All the experts
3.5. Scale purification approach
agreed on the identified variables. Eighty percent of them confirmed the
items and the impact of online recommendations on the consumer
A scale-purification framework is a widely accepted approach in
purchase journey. They indicated the need to classify items to measure
empirical consumer behavior studies that distinguishes the dimension­
online reviews’ overall significance in product sales. Further, experts
ality of the constructs and item levels using statistical criteria. Those
recommended focused group discussions (FGDs) to gain more insights
criteria assess the quantitative data involving standardized techniques,
into variables and examine the content validity.
including exploratory factor analysis and comparing the cut-off values of
alpha coefficient; and confirmatory factor analysis (Wieland et al.,
3.4. Focus group discussions (FGDs) – overview, characteristics of
2017).
participants, and methodology

Four mixed-sex FGDs were held with 10–12 shoppers each. These 3.6. Stage 1: Exploratory Factor Analysis (EFA)
FGDs helped to have a deeper understanding on the research topic and
identify variables not addressed in the literature. The members for the EFA data was collected from 431 consumers aged 18–45 years in
FGDs were selected using the convenience sampling method by visits to Bangalore, Karnataka. Bangalore was chosen because of the rapid
universities, shopping complexes, and housing associations after taking growth of online shopping (Joshi et al., 2021). Out of 431 responses, 380
appropriate consent from the establishments of these sites. Each focus were retained for the final analysis; 51 missing and inconsistent re­
group had the basic parameters defined based on gender, education, sponses were eliminated. The sample size of 380 was appropriate,
marital status, and occupation covering a good mix of students, business especially for EFA with factor loadings greater than equal to 0.50 and no
professionals, and those in service (blue-collar and white-collar jobs) cross-loadings and reliability of greater than equals 0.70. Convenience
aged 18 and 45 years. This young segment was chosen because it is the samples were identified through housing complexes, shopping malls,
critical audience for e-tailers to understand online shopping behavior and educational campuses. The qualifying question to the respondents
(Arul Rajan, 2020). The total participants were 44, of which 25 were was: “What forms of online customer reviews do consumers rely on during
female and 19 were male. product purchase decisions?”. This confirmed that the sample has
Discussions covered the following main topics regarding e-shopping knowledge and awareness of online reviews and identifies the variables
and online reviews: related to online customer reviews in the consumer decision-making
journey. The same approach was adopted for selecting and approach­
• Factors that help influence online shopping ing respondents online. A self-administered questionnaire collected the
• The convenience of using online reviews/online texts data for both offline (310) and online participants (121). The ques­
• Impact of reviews on actual product purchases tionnaire contained 19 items, and the participants appraised the items
• Details on how consumers evaluate online reviews on a 5-point Likert-type, i.e., agree/disagree response scale, which was
• Sentiments of online reviews deemed suitable for self-administered online questionnaire studies (Hair
et al., 2010). This Likert-scale design ranges from agreement or
In the open discussion, the group members provided broad concerns disagreement with level of quality 5 = Strongly Agree, 4 = Agree, 3 =
over the underlying online reviews, their desires and interests, and sug­ Neutral, 2 = Disagree and 1 = Strongly Disagree.
gested strategies they would recommend or avoid when purchasing The 5-point response scale is the simplest of all, which allows the
goods and services in the online shopping channel. The participants also interviewer to complete reading the statements or collecting informa­
deliberated on additional insights on consumers’ behavioral mindset tion on all the scale descriptors in a short period and provides flexibility
toward referring to online reviews during e-shopping beyond the topics to respondents for the midpoint (option 3) if they are unsure of the
mentioned above. More than half of the participants (59 percent) would
prefer to trust online reviews if a credible source has contributed to Table 2
them. Around 68 percent of the participants expressed their belief in Demographic profile of the respondents.
reviews written unbiasedly. Regarding the type of reviews, 73 percent of Sl. Description Frequency %
participants reported that the top positive and negative reviews would No
help them evaluate their online product. Additionally, half of the par­ 1 Gender Male 241 63.42
ticipants (50 percent) were inclined towards an online product purchase Female 139 36.57
if the language and style of writing reviews were precise. Such feedback 2 Marital Status Married 248 65.2
guided the authors to a reality of the consumer perspectives and iden­ Unmarried 132 34.7
3 Age (in years) 18–22 63 16.58
tified four specific items. Through this exploratory phase, the following
23–27 135 35.53
four items/variables were recognized and were appended to the list of 28–32 87 22.90
15 items identified through literature: 32–36 61 16.05
>36a 34 8.9
b
16. I believe the style of writing reviews should be unbiased or 4 Monthly Income (USD = USD, 334 88 23.2
United States dollars) USD, 669 111 29.2
impartial. USD, 1,338 130 34.2
17. The information or message in the topmost negative reviews and >USD, 1,338 51 13.4
topmost positive reviews are helpful in my purchase decision. 5 Occupation Student 53 13.94
18. I trust the review only if it comes from a verified customer (The Business 27 7.10
Service 259 68.15
online retailer mentions he/she is a verified customer).
Others 41 10.79
19. The language style of reviews must be precise rather than 6 Education Graduate 112 29.47
metaphorical. Post-Graduate 234 61.58
Postgraduate & 34 8.95
In the next stage, these 19 items generated through extant literature above

and substantiated by FGDs were administered using a survey instrument a


Less than or equal to 45 years.
involving a 5-point agree/disagree Likert scale among the study b
USD equivalent to Indian Rupee.

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S. Fernandes et al. Journal of Retailing and Consumer Services 68 (2022) 103066

response. A 5-point Likert-scale design is also a good measurement (Gallagher et al., 2008; Kline, 2015). Empirical measures of the model
model with significantly higher reliability (Adelson and McCoach, estimation were evaluated through internal consistency reliability,
2010). The demographic profile of the respondents is mentioned in convergent and discriminant validity as proposed by Hair et al. (2010) in
Table 2. their book Multivariate Data Analysis. The factor loadings having values
The data received on the 19 items from the participants were greater than 0.5 are considered practical and acceptable for the analysis
analyzed through exploratory factor analysis (EFA). They were verified (Hair et al., 2010). The results of CFA and reliability values are depicted
for reliability using the established principal axis factoring procedure in Table 3. The Cronbach’s α(alpha) value is 0.962. The three items
with varimax rotation and the eigenvalue method, which helped deter­ loading on factor 2 (Volume) have a Cronbach’s α (alpha) value of 0.959.
mine the list of factors (Hair et al., 2010). Varimax rotation, a common The three items loading on factor 3 (Language and Comprehension) have a
form of Principal component analysis or factor analysis, resulted in four Cronbach’s α (alpha) value of 0.977, and the four items loading on factor
factors with factor loadings of 0.5 and higher being considered practical 4 (Relevance) have a Cronbach’s α value of 0.959 (additional informa­
and acceptable for the analysis (Hair et al., 2010). Upon evaluation, the tion is illustrated in Table 3), which were considered acceptable (α >
items with loadings less than 0.5 and did not adequately load on either 0.70) (Nunnally, 1978; Kline, 2011) and hence confirming the reliability
of the factors were removed. Two items, the information or message in the of scale dimensions.
top positive and top negative reviews are helpful in my purchase decision The validity on the construct level was statistically examined by
(Item 17), and the language style of reviews must be precise rather than computing discriminant validity and convergent validity (Fornell and
metaphorical (Item 19), were dropped from the study because of low Larcker, 1981). Convergent validity was assessed, and the reliability at a
factor loading in EFA (with factor loadings 0.5 and lower). The results of level greater than 0.7 was identified as significant (as depicted in
the EFA analysis involving the 17 items led to the identification of a Table 4) for all items of the measurement model. Model evaluation was
four-factor structure. The four extracted factors can be named Source also conducted through discriminant validity, where the correlation
Credibility, Volume, Language Comprehension, and Relevance. The between the factors was measured, and all the conditions were met as
item-factor relationship resulted in forming factor 1 having items viz. I per the recommendations for use by Fornell and Larcker criteria, 1981
trust the information more when I believe the reviewer has adequate knowl­ (as depicted in Table 5). To support the Fornell and Larcker criterion for
edge/expertise of the product (Item 8); I believe the review is more credible discriminant validity, the heterotrait-monotrait ratio of correlations
when the reviewer is the user of the product (gender/age-specific products) (HTMT) was computed. HTMT is a measure of similarity between latent
(Item 15); I trust the review only if it comes from a verified customer (The variables (Henseler et al., 2015). If the HTMT is less than 0.9, then
online retailer mentions he/she is a verified customer) (Item 18); The reviews discriminant validity can be regarded as established (Horstmann, 2017),
are more credible if the name/image of the reviewer is available (Item 10); I which confirms the authenticity and validity of the measurement model
look for reviews at multiple sites to confirm the review scores (Item 2); I (Quoquab and Mohammad, 2020) (Refer to Table 6).
believe the reviews that are supported by relevant arguments are critical The measurement model consisting of the 17 variables/items iden­
(Item 5) and I look for reviews those describe the benefit/problem of the tified through the item-generation stage offers an acceptable model-fit
product (Item 1). index as recommended by the thresholds proposed by Hair et al.
Further, the above items indicate that online customer reviews are (2010) and Byrne (2010), 2013; Hu and Bentler (1999) (as depicted in
perceived to be much more credible and trustworthy; hence the Table 7). Thus, the authors finalized and proposed the Online Customer
construct is Source Credibility. The item-factor relationship resulted in Review (OCR) Scale, as elucidated in Table 3.
factor 2 having items viz. If the numbers of reviews are less, I hesitate to
consider the reviews while buying the product (Item 6); I look for extreme 3.8. Scale validation approach
views (5-star or 1-star) while evaluating a product (Item 9), and the average
score/star rating is essential for a product (Item 3). As these items validate The measurement model was validated using the same procedure
that the numbers of customer reviews/star ratings of online reviews are involving the CFA technique on an independent and new data set
the qualifying criteria that simplify consumer’s search and evaluation comprising 278 respondents. The loadings of the factors for the purifi­
process, the authors chose to identify this factor as Volume. The item- cation and validation phase are summarized in Table 8. The scale’s
factor relationship resulted in containing factor 3 having items viz. reliability was assessed through the coefficients of Cronbach’s alpha.
The review is more useful if the language of reviews is simple and appealing The coefficients of the measurement scale were computed as 0.951 for
(Item 4); The review is more helpful if the message is clear and unambiguous factor 1 (Source Credibility), 0.953 for factor 2 (Volume), 0.955 for factor
(Item 13), and I believe the style of writing reviews should be unbiased or 3 (Language and Comprehension), and 0.936 for factor 4 (Relevance) (as
impartial (Item 16). These items provided evidence that the language and indicated in Table 9), which met the acceptable level of being more
the semantic content of reviews appeal to the user towards online con­ significant than 0.70. This established the reliability of the scale di­
sumer sales, and hence we chose to recognize the factor as Language and mensions. The measurement scale also showed acceptable convergent
Comprehension. The item-factor relationship resulted in forming factor 4 validity (see Table 9) and discriminant validity threshold values (see
having items viz. I look for the response of the seller in lieu of the customers’ Table 10). The HTMT values also supported the establishment of
reviews (Item 12); Negative reviews influence more than positive reviews discriminant validity (see Table 11). The empirical findings of CFA
(Item 7); I believe reviews impact my decision to purchase or not to purchase confirmed the four-factor structure validation of the proposed. The
a product (Item 11) and Recent reviews are more important than older ones goodness of fit statistic fit provided a good fit (see Table 12). The results
(Item 14). These items indicate that consumers relied on the positive/ of the validation structure conducted using the CFA technique indicated
negative type of customer reviews to reinforce their online purchase that the model fit was adequate and has achieved a satisfactory model fit
choice, and therefore the authors decided to term this factor as with field data (Somers et al., 2003).
Relevance.
4. Discussion
3.7. Stage 2: confirmatory factor analysis (CFA)
The present study aims to propose a structured scale for online re­
In Stage 2, the empirical results of EFA were confirmed using an views. Such a scale is necessary as online reviews have significantly
iterative process involving Confirmatory Factor Analysis (CFA) fit influenced product and brand sales (Li et al., 2020). With the advent of
indices (Anderson and Gerbing, 1988) and chi-square testing (Voss et al., online retailing and various shopping platforms, consumers are now
2003). CFA for the 17 items was conducted using the IBM SPSS AMOS shopping online and looking for opinions of other shoppers posted on
program which tests the factorial validity of the measuring instrument online shopping sites, platforms, and blogs (Fernandes et al., 2021; Micu

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Table 3
Confirmatory factor analysis (CFA).
Sl. Items/Variables Sources* Mean Standard Factor Reliability
No. score Deviation (SD) Loadings (Cronbach alpha)

Factor 1: 0.962
Source Credibility
1 I trust the information more where I believe the reviewer has Hsieh & Li (2020) 3.2895 1.00678 0.846
adequate knowledge/expertise for the product.
2 The review is more credible when the reviewer is a product user Mariani & Predvoditeleva 3.3974 1.10527 0.788
(gender/age-specific products). (2019)
3 I trust the review only if it comes from a verified customer (The Exploratory Study 3.3211 0.96212 0.964
online retailer mentions he/she is a verified customer).
4 The reviews are more credible if the name/image of the reviewer is Munzel (2016) 3.3237 1.01854 0.879
available.
5 I look for reviews at multiple sites to confirm the review scores. Goes et al. (2014) 3.2763 1.03244 0.882
6 I believe the reviews that are supported by relevant arguments are Risselada H. et al., 2018 3.2289 1.06650 0.888
important.
7 I look for reviews that describe the benefit/problem of the product. Munzel (2016) 3.3500 0.96979 0.976

Factor 2: 0.959
Volume
8 If the reviews are fewer, I hesitate to consider the reviews while Grewal et al. (2020) 3.5842 0.89606 0.907
buying the product.
9 I look for extreme views (5-star or 1-star) while evaluating a Sen & Lerman (2007) 3.5474 0.92766 0.933
product.
10 The average score/star rating is important for a product. El-Said, 2020 3.6000 0.93481 0.986

Factor 3: 0.977
Language and Comprehension
11 The review is more useful if the language of reviews is simple and Tran and Strutton, 2020 3.3263 1.09874 0.952
appealing.
12 The review is more helpful if the message is unambiguous. Stein and Ramaseshan, 3.3447 1.11104 0.969
2016
13 I believe the style of writing reviews should be unbiased or Exploratory Study 3.3500 1.11886 0.980
impartial.

Factor 4: 0.959
Relevance
14 I look for the seller’s response in lieu of the customers’ reviews. Munzel (2016) 3.4816 0.92584 0.798
15 Negative reviews influence more than positive reviews. Weisstein et al. (2017) 3.5184 0.93152 0.962
16 I believe reviews impact my decision to purchase or not to purchase Kim and Song, 2018; Hsu 3.5816 0.92241 0.958
a product. et al., 2017
17 Recent reviews are more important than older ones. Lee et al. (2017) 3.5289 0.93972 0.979

(*The items/variables have been aptly modified based on a qualitative study, which involved discussions with the industry/subject matter experts and participants of
the study).
Source: Contribution by authors.

Table 4 Table- 6
Convergent Validity Estimates (Purification phase: 1st stage data collection). HTMT computations.
Constructs Composite Reliability AVE Reliability Convergent HTMT Values
(CR) Validity

SC 0.962 0.794 ✓ ✓ V 0.169


V 0.959 0.888 ✓ ✓ LC 0.317 0.334
LC 0.977 0.935 ✓ ✓ R 0.219 0.295 0.770
R 0.959 0.860 ✓ ✓ SC V LC

Note: As per the recommended value for convergent validity, CR must be 0.70 or
higher, the Average Variance Explained (AVE) must have the cut-off value of
0.50 or higher, and the CR value must be greater than AVE (Hair et al., 2010). Table 7
CFA results: Measuring model fit (purification phase).
a
Indicators CFA Threshold Source
Table 5 Results Value
Discriminant Validity Estimates (Purification Phase: 1st stage data collection).
CMIN/df 2.181 Three or lower Hair et al. (2012); Byrne (2010)
Latent Constructs AVE SC V LC R GFI 0.934 0.90 or higher Somers et al. (2003)
SC 0.794 0.891 NFI 0.972 0.90 or higher Hair et al. (2012); Hu and Bentler
V 0.888 0.186 0.943 (1999)
LC 0.935 0.309 0.351 0.967 SRMR 0.0259 0.08 or lower Kline (2011)
R 0.860 0.205 0.303 0.765 0.927 RMSEA 0.056 0.08 or lower Brannick (2003)
CFI 0.985 0.90 or higher Hu and Bentler (1999)
Note: The values/elements across the diagonal, indicated in bold, are the √AVE, NNFI (TLI) 0.982 0.90 or higher Hu and Bentler (1999)
and the off-diagonals are the correlations between constructs. AGFI 0.910 0.80 or higher Byrne (2010, 2013)
a
The model fit indicators are within the acceptable threshold values.

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Table 8 et al., 2019). These reviews’ exposure and subsequent influence have
A comparison of Factor Loadings in Purification and Validation Phases. also been referred to as e-WOM (Shankar et al., 2020). In the absence of
Purification phase Validation phase face-to-face interaction, customers evaluate the reviews based on their
perceived credibility (Heng et al., 2018). Literature suggests that
SC1←SC 0.846 0.828
SC2←SC 0.788 0.735 consumer-generated online reviews are gaining importance and popu­
SC3←SC 0.964 0.950 larity (Lee and Choeh, 2018) and influencing purchase decisions
SC4←SC 0.879 0.836 (Duarte, e Silva & Ferreira, 2018). Consumer endorsements on online
SC5←SC 0.882 0.872 platforms are trustworthy compared to seller-generated information
SC6←SC 0.888 0.856
SC7←SC 0.976 0.966
(Hajli, 2018). However, there are many factors relating to online re­
V1←V 0.907 0.911 views, like contributing to writing online reviews (Thakur, 2018),
V2←V 0.933 0.903 several reviews (Grewal et al., 2020), star ratings (Li et al., 2020),
V3←V 0.986 0.984 reviewer expertise (Vermeulen and Seegers, 2009), quality of reviews
LC1←LC 0.952 0.954
(Risselada et al., 2018) etc. that impact the review credibility. Hence the
LC2 ← LC 0.969 0.939
LC3 ← LC 0.980 0.914 current study establishes that customer reviews are pivotal in online
R1 ← R 0.798 0.701 purchases by studying various variables that contribute to the reliability
R2 ← R 0.962 0.946 of the reviews and proposes a scale to describe the elements of online
R3 ← R 0.958 0.939 reviews and their impact on the consumer purchase decision. The
R4 ← R 0.979 0.970
research adopted the scientific and systematic approach to developing
the scale using 17 items. These 17 items were identified through liter­
ature and refined through Focus Group Discussions and Factor Analysis.
Table 9 Based on the CFA output and subsequent validation, the study proposes
Convergent Validity Estimates (Validation Phase: 2nd stage data collection). an Online Review Scale corroborating four constructs: Source Credibility
Latent Composite AVE Reliability Convergent with seven items, Volume with three items, Language and Comprehension
Constructs Reliability (CR) Validity with three items, and Relevance with four items.
SC 0.951 0.750 ✓ ✓
V 0.953 0.871 ✓ ✓ 4.1. Source credibility
LC 0.955 0.876 ✓ ✓
R 0.936 0.802 ✓ ✓
Source Credibility refers to the trust customers attach to the review’s
writer (Hsieh and Li, 2020). Online platforms have multiple sellers of the
same product at different prices. Such platforms allow customers to
Table 10
share feedback, grievances, and appreciation of the products and ser­
Discriminant validity estimates (validation phase).
vices that customers purchase online. Online shoppers trust a review if
Latent Constructs AVE SC V LC R they believe the author of the review is an actual user of the product and
SC 0.750 0.866 if she/he has mentioned the benefits or the problems of the product
V 0.871 0.216 0.933 (Ismagilova et al., 2020). The reliability is higher if the reviewer is a user
LC 0.876 0.295 0.369 0.936
of the product rather than merely the buyer (Thakur, 2018). This sug­
R 0.802 0.222 0.348 0.733 0.896
gests that if a product is meant for women, a review by a man will seem
Note: The values indicated across the diagonals (identified in bold) are the less reliable to the prospective customers even if he is the actual pur­
√AVE, and the off-diagonals are the correlations between the constructs. chaser of the product. Customers also check the reliability of the re­
viewers, whether she/he is verified customers by the e-retailer or the
platform (Mariani and Predvoditeleva, 2019). This reduces the possi­
Table 11
bility of robots or fake customers providing reviews of the products
HTMT values (validation phase).
where they are not the actual buyers. Consumers’ reliance on online
HTMT Values
reviews is also based on the reviewer’s reputation and expertise. If the
review provides valid information and product benefits and reflects the
V 0.196 expertise or knowledge of the reviewer, then customers trust such re­
LC 0.295 0.355
views (Li et al., 2020). The construct Source credibility with seven items
R 0.240 0.346 0.737
SC V LC forms an essential part of the OCR Scale.

4.2. Volume
Table 12
CFA results: Measuring model fit (validation phase). Though unique review content is helpful, the total number of reviews
works as an anchor by providing aggregate review content (Grewal
Indicators *CFA Results Cut off Criteria
et al., 2020). Hence, in addition to reliable reviews, online shoppers also
AGFI 0.886 0.80 or higher look for the Volume (number) of reviews for a particular product on the
CMIN/df 2.096 Three or lower
NFI 0.957 0.90 or higher
site. Though the review length may or may not facilitate consumers in
GFI 0.916 0.90 or higher their decision-making journey (Li et al., 2020), the total number of re­
RMSEA 0.063 0.08 or lower views helps them evaluate the product and trust the overall score if the
NNFI (TLI) 0.972 0.90 or higher number of reviews are more. Moreover, positive or negative reviews do
SRMR .0335 0.08 or lower
influence the conversion to product sales. Positive reviews evoke active
CFI 0.977 0.93 or higher
consumer purchase decisions (Weisstein et al., 2017). Even if the review
(* All the model fit indicators are as per the acceptable threshold/cut off values). is positive or has emotional content (Guo et al., 2020), if the number of
reviews is perceived to be less, customers are averse to accepting it (Yi

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and Oh, 2022). This imposes that a few good reviews may not be suf­ pioneering work that measures the effectiveness of online consumer
ficient to influence customer decisions. If the number of reviews is more, reviews. This has contributed to developing and validating an Online
customers tend to associate more trust. While evaluating reviews, it may Review scale with 17 items and investigated the impact of online
be easy to look at the average score/rating to make an overall impression customer reviews on the consumer purchase decision. The scale mea­
of the product (Rauschnabel et al., 2019). However, customers are not sures the helpfulness of online reviews in consumer purchase behavior.
persuaded by the average score only, and they look for extreme positive The study’s empirical results indicated that the developed scale has a
and negative views (Cao et al., 2011). A few extreme negative views can reliable measurement model (Hair et al., 2012).
dissuade a customer from buying a product with an acceptable average Second, with the growing use of online platforms for purchase and
rating (Li et al., 2020). Consumers consider review ratings as anchors to the spread of the internet, shoppers are using various forms of infor­
minimize the risks associated with choosing the right product (Yi and mation channels to make the best shopping decision. The study shows
Oh, 2022). Consumers also find the number of reviews to be ‘helpful’ as that while making a purchase decision, consumers give importance to
they tend to derive aggregate information from all the reviews (Grewal online reviews, reducing their search efforts and minimizing the risk
et al., 2020; Yi and Oh, 2022). while choosing a product or service. In this context, the study’s out­
comes contribute to developing a theoretical understanding of con­
4.3. Language and comprehension sumers’ purchase decisions by using the scale of the online review with
few new dimensions. It focuses on the importance of four factors or di­
In the absence of face-to-face contact with a reviewer, the language mensions such as source credibility, relevance, volume, and language in
and writing style influence the review’s trustworthiness (Stein and analyzing consumer purchase decisions.
Ramaseshan, 2016). The third construct identified in the OCR Scale is Third, the study provides new perspectives and directions to online
Language and Comprehension. Customers rely more on the reviews where reviewers by adding new variables. The findings of the study added two
the language is simple, appealing, and easy to understand. Customers new variables to the online review scale: ‘the style of writing reviews
tend to disbelieve a review if they feel the customer is biased by the should be unbiased or impartial’ (for ‘the language and comprehension’
language used in the review. Hence, customers can make out disgruntled dimension) and ‘customers trust the reviews if it comes from a verified
and unjust customers if they have used improper language and such customer’ (for “source credibility’ dimension).
reviews tend to be less authentic. Finally, this adds value to the existing or traditional consumer
Moreover, if the rating by the reviewer does not support the decision-making literature by providing further scope to study the
description, customers tend to rely less on such reviews. Clear and un­ interrelationship and influence among these constructs. Subsequent
ambiguous reviews are perceived to be more reliable and positively studies can also explore the consequences of using these identified
reinforce buying decisions (Lu et al., 2018). So this suggests that if the constructs to manage reviews. The EFA, CFA, reliability, and validity
reviewer uses simple language, uses a tone that does not reflect biases tests specified that the scale developed is a sound and dependable
against the product, and the message is simple to understand, customers empirical model (Byrne, 2013). The study provided a comprehensive
tend to trust such reviews. theoretical understanding of the usage and impacts of online customer
reviews and is a base for quantitative and experimental studies.
4.4. Relevance

Online reviews may contain information about product descriptions, 5.2. Managerial implications
service experience, grievances, complaints, or appreciations as felt by
the reviewer. However, all this information may not be pertinent to all Firms should actively weave their products, services, and brands into
the customers. Hence, apart from Source Credibility, Volume of reviews, this online review discourse. This study has various implications for
and the Language of the reviews, what matters is the Relevance of the managers. First, the literature observes that the attributes of online
review to the customer and the response of the seller/retailer to negative customer reviews such as review quality (richness), review ratings, the
reviews. So, a seller’s response to negative reviews helps customers relevance of the reviews (Nieto-Garcia et al., 2019), and the reviewers’
make an informed decision by reducing the adverse effect if the response identity disclosures and their level of expertise (Mariani and Pre­
is acceptable. Customers rely more on recent reviews than older reviews dvoditeleva, 2019) depict positive influence towards consumer online
(Kawaf and Istanbulluoglu, 2019). Some e-retailers also display the purchase decision. This helps both consumers in their decision-making
recent reviews at the top or give options to customers to select a time and online retailers regarding product design, display, and managing
period to access the reviews. Like negative word of mouth in the physical relationships. Secondly, online retailers and marketplaces can use the
place, negative online reviews dissuade a customer more than a positive ‘Online Review’ scale to get more customer insights into how customers
review can influence (Li et al., 2020). Hence negative reviews are more gather information, arrive at purchase decisions, and retailers/brands
relevant to customers than positive ones. Moreover, deceptive or fake can manage online services accordingly. The scale can segment con­
reviews may also lead into negative WOM and dissuade consumers from sumers who are most likely to get influenced by online reviews. Thirdly,
purchasing (Munzel, 2016). This indicates that e-retailers and online it is observed that consumers decide their buying decisions based on
platforms must strategize their response to negative reviews and solve various types of online information, such as positive or negative types of
customer complaints to build the trust and confidence of both existing online reviews and the number of online reviews. Before making their
and prospective customers. purchase decisions, consumers check the information about the com­
In summary, customers check the credibility of the source of the pany and ratings about the products on their respective websites (Stuppy
reviews and look for a higher number of reviews to trust the rating/score et al., 2020). Our result also showed that consumers look for extreme
during the online purchase. Simultaneously, the language and relevance reviews (5-star or 1-star) while evaluating a product or brand, consistent
of the review also influence the consumer purchase decision in with the findings of Sen and Lerman (2007). Hence, the proposed scale
enhancing the reliability of the reviews. will help retailers understand consumer tendencies toward the suscep­
tibility of online reviews, and thereby their behavior can be monitored
5. Contributions and evaluated to devise appropriate programs. Fourthly, consumers are
generally influenced by the primacy effect, which might influence them
5.1. Theoretical contributions if the online information is negative. This research will enable online
retailers to target the segments that value negative reviews more than
The study has notable theoretical contributions. First, it is the positive reviews in their purchase decision.

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