Do positive reviews of a previous‐generation product benefit a next‐generation product?

Drawing on consumer inferences theory, our research examines the spillover effects of positive reviews from a multi‐generation product perspective and mainly explores the moderating role of time interval and price growth rate. The results show the spillover effects of positive reviews would be affec...

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Bibliographic Details
Published in:Journal of consumer behaviour 2021-11, Vol.20 (6), p.1617-1628
Main Authors: Shi, Yan, Zou, Bo, Yao, Xiao‐xu, Li, Chun‐hong
Format: Article
Language:English
Subjects:
Generations
Growth rate
Prices
Sales
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Summary:Drawing on consumer inferences theory, our research examines the spillover effects of positive reviews from a multi‐generation product perspective and mainly explores the moderating role of time interval and price growth rate. The results show the spillover effects of positive reviews would be affected or even changed by entering timing and prices of new products. We find that the number of a previous‐generation product's positive reviews has an inverted U‐shaped relation with sales performance of a next‐generation product when the time interval between the two generational products is short. Further, we reveal that this relation is positive when the time interval between the two generations is long. Moreover, the positive influence of the number of a previous‐generation product's positive reviews on the sales performance of a next‐generation product will be weaker as the price growth rate of a next‐generation product rises. We test our hypotheses using online sales data of the Chinese mobile market. Our empirical analysis contributes to the research of multi‐generational products and online reviews, and enriches the consumer inferences theory.
ISSN:1472-0817
1479-1838
DOI:10.1002/cb.1977