The impact of online user reviews on cameras sales

Purpose - The purpose of this research is to help better understand the impact of online user reviews on sales of search goods. Design/methodology/approach - This research is based on digital camera sales data collected from amazon.com and two studies are included in this research. The first study is based on a static model and sample data from one time stamp. The second study is based on two sample data collected from two different time stamps, and a dynamic model is proposed. Findings - The results from the first study reveal that the average online customer review, the number of online reviews, the price and the camera's physical properties such as the number of pixels and the optimal zoom number (but not LCD screen size) have significant influence on digital camera sales. The results from the second study show that the sales from the previous period are an important indicator for future sales. In addition, change in price, change in average online review rating and change in the total number of online reviews are all significantly associated with future sales. Research limitations/implications - The research reveals that there is a significant relationship between the online user review and sales of search goods, and the influence of online user reviews on search goods sales is different from that on experience goods. It also recognizes that the product specifications influence the sales of search goods. In addition, the research on search goods shows that price at the specific time and price changes are significant factors affecting sales. Practical implications - The research indicates that retailers should provide channels for, and encourage, customer online reviews for search goods to improve sales. It is also beneficial for online retailers to provide detailed product attributes to help their customers make the purchase decision. Carefully designed and executed price promotions could also be effective ways to improve sales of searchable goods. Originality/value - This study is one of the first attempts to investigate the impact of online user reviews on sales of search goods.