The interaction effects of online reviews and free samples on consumers' downloads: An empirical analysis

Consumers' software purchase decisions are influenced both by online reviews and by their experiences with free samples provided by firms. This paper empirically investigates the differential effects of online reviews (user and editor ratings) on consumers' sample downloading behavior, using a dataset drawn from a large software free sampling website CNET.com. Our findings extend the previous research by suggesting that information disclosure levels of free samples (indicated by licenses) moderates the impacts of online reviews on consumers' sample downloads. For samples that disclose a great level of information, higher user ratings can increase downloads; otherwise, higher user ratings fail to increase downloads. When both user and editor ratings are available to consumers, only user ratings can increase sample downloads. The findings can be explained by consumers' two-stage information process whereby consumers first refer to online reviews and then determine whether to sample software. This study provides practical implications on the design of information disclosure channel and offers suggestions for firms regarding how to select and apply sample licenses.