The Impact of Topological Structure, Product Category, and Online Reviews on Co-Purchase: A Network Perspective

Abstract

Understanding the relationships within product co-purchasing is crucial for designing effective cross-selling and recommendation systems in e-commerce. While researchers often detect co-purchase rules based on product attributes, this study explores the influence of consumer behavior preferences and electronic word-of-mouth (eWOM) on co-purchase formation by analyzing the topological network structure of products. Data were collected from a major Chinese e-retailer and analyzed using an exponential random graph model (ERGM) to identify the factors affecting the formation of follow-up purchases between products: the role of topological structure, product category, and online product reviews. The results showed that the co-purchase network was a sparse small-world network, with a product degree of centrality that positively impacted its sales volume within the network, suggesting a concentration effect. Cross-category purchases significantly contribute to the formation of co-purchase relationships, with a differential homophily effect. Positive ratings and review volumes were found to be key factors impacting this co-purchase formation. In addition, a higher inconsistency of positive ratings among products decreases the likelihood of co-purchase. These findings contribute to the literature on eWOM and electronic networks, and have valuable implications for e-commerce managers.