Historical effect of verified purchases and ordinary users’ testimonials on the sales rank of experience and search goods

Abstract

Purpose

This study aims to investigate the extent and pattern of the influence of one of the most important decision-making tools in the context of social commerce. This study demonstrates how much customer testimonials (including verified purchases and ordinary users) can influence the sales rank of experience and search goods.

Design/methodology/approach

The data were collected by text mining and performing a content analysis on the XML documents of Web pages and processing them. For search goods, 22,311 opinions were recorded regarding 95 mobile phones. Additionally, for experience goods, 67,817 opinions were recorded regarding 162 books in the Amazon online store. The data were analyzed by functional regression method in longitudinal data analysis.

Findings

In terms of importance, the opinions and recommendations of verified purchases had a 60% greater impact on the sales rank of experience goods than the opinions and recommendations of ordinary users. In search goods, the opinions of ordinary users had a greater impact than the opinions of verified purchases. The historical effect of the opinions of ordinary users at the end of the review period on sales rank was evident, while the historical effect of the verified purchase viewpoints during the review period had a nonlinear curve. The results showed that it was necessary to increase the volume of comments to increase their reliability in experience goods.

Practical implications

Measuring the effect of customer testimonials helps the managers of retail websites design algorithms and online suggestion systems, thereby improving the sales of their products by providing information desired by customers.

Social implications

Individuals can be a source of information and influence the buying decision process of others by sharing their experiences. This issue helps reduce the purchase risk and explains the importance of interaction and sharing the customer’s experience.

Originality/value

Analyzing the impact of customer testimonials by separating verified purchases and ordinary users is one of the advantages of this study. The quantitative estimation of the impact of recommendations and the provision of a model of their historical effect is one of the approaches not addressed in similar studies.

Citation

Sajedikhah, A., Rezaei Dolatabadi, H. and Shahin, A. (2023), "Historical effect of verified purchases and ordinary users’ testimonials on the sales rank of experience and search goods", Competitiveness Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/CR-11-2022-0173