The effect of consumer ratings and attentional allocation on product valuations

Abstract

AbstractOnline marketplaces allow consumers to leave reviews about the products they purchase, which are visible to potential customers and competitors. While the impact of reviews on valuations of worth and purchasing decisions has been intensively studied, little is known about how the reviews themselves are attended to, and the relation between attention and valuations. In three studies we use eye-tracking methodologies to investigate attention in subjective monetary valuations of consumer goods. We find that, when evaluating consumer goods, individuals’ attention to ratings are related to their frequencies, attention to positive or negative information is related to subjective valuations, and that perspective (owner vs. non-owner) influences the type of information attended to. These findings extend previous research regarding the valuations of risky prospects as implemented in abstract monetary gambles and suggest that similar cognitive processes might underlie both types of tasks.