The Impact of On-Line Consumer Reviews on Value Perception

Abstract

This study combines the dual-process theory (DPT) and the uncertainty reduction theory (URT) to examine how on-line consumer reviews affect consumer uncertainty reduction and value perceptions in order to understand whether consumer attitudes will be influenced by on-line consumer reviews and if relationships are built between consumers and companies as a result. The results indicated that argument quality, recommendation sidedness, source credibility, confirmation of prior beliefs, and recommendation ratings have a positive effect on the uncertainty reduction of consumers towards the businesses under consideration. Since uncertainty reduction has an effect on value perception, this study suggests that companies provide on-line consumer reviews on their websites to increase consumer uncertainty reduction and to improve consumer value perception of their companies.