Differential Effects of Multi-dimensional Review Evaluations on Product Sales for Mainstream vs. Niche Products

 Despite a large body of literature on online reviews, none have considered the nuanced impacts of how multi-dimensional reviews affect products sales differently for mainstream vs. niche products. This study aims at filling this knowledge gap by conducting complementary studies in two product categories (i.e., automobile and laptop) with different methods (a field study and three lab experiments). Our paper reveals three key insights to the emerging literature and phenomenon on multi-dimensional review systems: (a) the inter-dimensional rating variance is more negatively related to product sales for a mainstream product than for a niche product in the same category; (b) the intra-dimensional rating valence on the dominant dimension of a product is more positively related to product sales for a niche product than for a mainstream product; and (c) the intra-dimensional rating variance on the dominant dimension of a product is more negatively related to product sales for a niche product than for a mainstream product. Our research provides important managerial implications to both product providers and review platforms.