The paradox of (dis)trust in sponsorship disclosure: The characteristics and effects of sponsored online consumer reviews

• Published in: Decision Support Systems 2019-01, Vol.116, p.114-124
• Main Authors: Kim, Su Jung, Maslowska, Ewa, Tamaddoni, Ali
• Format: Article
• Language: English
• Subjects: Attitude; Attitudes; Bayesian analysis; Consumers; Decision analysis; Decision support systems; Decision theory; eWOM; Online consumer reviews; Persuasion knowledge; Purchase intention; Sponsorship disclosure
• ISSN: 0167-9236; 1873-5797
• DOI: 10.1016/j.dss.2018.10.014

Online consumer reviews (OCRs) have become one of the most influential persuasive messages with respect to purchase decisions. Knowing this, marketers have started incentivizing consumers to write reviews, hoping that they can increase the volume of positive reviews. However, little research exists on the content characteristics and effects of sponsored OCRs. This paper examines the different characteristics and effects of sponsored and organic OCRs, and the mechanisms by which consumers recognize and process these two types of reviews, using mixed methods in two studies. The findings of a text mining analysis (Study 1) suggest that sponsored reviews provide more elaborate and evaluative content; however, they are perceived as less helpful than organic reviews. The findings of a randomized experiment (Study 2) suggest that sponsorship disclosure increases suspicions about the reviewer's ulterior motives and decreases consumers' attitudes and purchase intentions when a review is positive. Sponsorship disclosure does not hurt attitudes or purchase intentions when a review is negative. •This study addresses the issues of sponsorship in the context of online reviews.•Sponsored reviews, reviews written by consumers who are offered a form of compensation, have been considered as biased and dishonest without empirical data that examined their content.•Analyses of online reviews data revealed that sponsored reviews are more elaborate, objective, complex, positive, and less extreme than organic reviews. (Study 1)•Despite the seemingly elaborate and evaluative content, sponsored reviews are perceived as less helpful possibly due to the presence of a sponsorship disclosure statement.•An online randomized experiment showed that sponsorship disclosure increases suspicions about a reviewer's ulterior motives and hurt consumers' attitudes or purchase intentions when a review is positive. (Study 2)