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Subdivided or aggregated online review systems: Which is better for online takeaway vendors?

  • Hongpeng Wang
  • Rong Du
  • Jin Li
  • Weiguo Fan
Article
  • 80 Downloads

Abstract

This paper examines the role of a subdivided or aggregated online review system to help online takeaway vendors select the most appropriate information strategy. First, we develop two models to depict the interaction between online vendors’ information strategies and consumers’ responses. Second, we take the multidimensional product attributes with their corresponding weights into consideration and illustrate that the sensitivity to product misfits, instead of the relative importance of product attributes, dominates profit maximization. Third, we make a comparison to find the most appropriate scenario to adopt a full or partial information strategy. When a large number of consumers satisfy the delivery time performance, an aggregated review system will be a better choice. Otherwise, vendors are advised to host a subdivided review system. Finally, we universally identify a variance boundary in the rating-star review system, which not only prevents consumers from expressing their real feelings but also makes observing consumer feedback and strategic adjustments inconvenient for online vendors.

Keywords

Online review systems Information strategies Multidimensional attributes Variance boundary 

Notes

Funding

Funding was provided by National Natural Science Foundation of China (Grant No. 71771184), Humanities and Social Science Talent Plan (Grant No. ER42015060002), Natural Science Basic Research Plan in Shaanxi Province of China (Grant No. 2017JQ7012), Chinese Fundamental Research Funds for the Central Universities (Grant No. JB180602) and Innovation Fund of Xidian University.

Compliance with ethical standards

Conflict of interest

On behalf of all authors, the corresponding author states that there is no conflict of interest.

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  1. 1.School of Economics and ManagementXidian UniversityXi’anChina
  2. 2.Department of Management Sciences, Tippie College of BusinessUniversity of IowaIowa CityUSA
  3. 3.Institutes of Science and DevelopmentChinese Academy of SciencesBeijingChina

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