Credibility of online reviews and its impact on brand image

Abstract

Purpose Brand image is considered as a signaling phenomenon because high brand image ensures quality product that can reduce consumer’s uncertainty. A strong brand image induces consumers to pay higher prices, which in turn provides competitive advantage and market success to a company. Online reviews, blogs and texts on brand usage experiences are more effective than oral communication to build a strong brand image. Online reviews on products create distinct places for brands in the consumer’s mind, and thus ultimately affect images of the brands. Therefore, the purpose of this study is to investigate the effects of online reviews on functional and hedonic brand images in the context of consumer electronic products in India. Design/methodology/approach The present study adopts a novel approach to collect data. The data have been collected from select e-commerce sites’ brand pages on Facebook through Google form application. A number of respondents are 1,038. Structural equation modeling technique has been used to examine the effects of online reviews on functional and hedonic brand images. Findings The data analysis reveals that source and review quality have more significant effect on credibility evaluation of online reviews as compared to the effects of review consistency and receiver. Moreover, credible online reviews have more impact on hedonic brand image rather than functional brand image in the context of consumer electronics product in India. Originality/value The present study combines Yale attitude change model and attribution theory to examine the effects of online reviews on brand image.