Abstract
This study focuses on the effect of prior average ratings of a product on subsequent online ratings, and we further analyze whether culture moderates this effect. The anchoring effect theory and cultural dimensions theory serve as the theoretical foundations for our investigation. To our best knowledge, we are the first to introduce the anchoring effect theory into the online review context. This study is also among the first to investigate how culture influences customers’ online evaluations. Empirical results suggest that the prior average rating positively influences subsequent customers’ posted ratings, and this positive influence is significantly moderated by culture. Besides theoretical contributions, our insights may also strategically benefit online sellers by increasing customer satisfaction and improving long-term sales.
Similar content being viewed by others
Notes
Through Agoda.com, a customer who books a hotel will receive a survey from Agoda very soon after his/her hotel stay as an opportunity to rate the hotel property and write about his/her experience. Review and rating submission behaviors are totally voluntary and self-driven.
Given the unavailability to collected data on prior average ratings during customers’ purchase, we assume that customers’ observed prior average ratings during their purchase are equal to the ones during ratings. Accordingly, we removed the hotels with fewer than 15 reviews from our dataset to avoid the significant fluctuate of values of average ratings during the period between a customer’s purchase and his/her rating.
References
Bond, M. H., & Smith, P. B. (1996). Cross-cultural social and organizational psychology. Annual Review of Psychology, 47(1), 205–235.
Chang, W.-L., Yuan, S.-T., & Hsu, C. W. (2010). Creating the experience economy in E-commerce. Communications of the ACM, 53(7), 122–127.
Chapman, G. B., & Johnson, E. J. (1999). Anchoring, activation, and the construction of values. Organizational Behavior and Human Decision Processes, 79(2), 115–153.
Chau, P. Y., Cole, M., Massey, A. P., Montoya-Weiss, M., & O'Keefe, R. M. (2002). Cultural differences in the online behavior of consumers. Communications of the ACM, 45(10), 138–143.
Clemons, E. K., Gao, G. G., & Hitt, L. M. (2006). When online reviews meet Hyperdifferentiation: A study of the craft beer industry. Journal of Management Information Systems, 23(2), 149–171.
Costa Jr., P. T., & Widiger, T. A. (1994). Personality disorders and the five-factor model of personality. American Psychological Association.
Critcher, C. R., & Gilovich, T. (2008). Incidental Environmental Anchors. Journal of Behavioral Decision Making, 21(3), 241–251.
Dellarocas, C., Awad, N., & Zhang, X. (2004). Exploring the value of online reviews to organizations: Implications for revenue forecasting and planning. ICIS 2004 Proceedings, p. 30.
Dellarocas, C., Zhang, X. M., & Awad, N. F. (2007). Exploring the value of online product reviews in forecasting sales: The case of motion pictures. Journal of Interactive Marketing, 21(4), 23–45.
Donthu, N., & Yoo, B. (1998). Cultural influences on service quality expectations. Journal of Service Research, 1(2), 178–186.
Epley, N., & Gilovich, T. (2001). Putting adjustment Back in the anchoring and adjustment heuristic: Differential processing of self-generated and experimenter-provided anchors. Psychological Science, 12(5), 391–396.
Eroglu, C., & Croxton, K. L. (2010). Biases in judgmental adjustments of statistical forecasts: The role of individual differences. International Journal of Forecasting, 26(1), 116–133.
Furnham, A., & Boo, H. C. (2011). A literature review of the anchoring effect. The Journal of Socio-Economics, 40(1), 35–42.
Furrer, O., Liu, B. S.-C., & Sudharshan, D. (2000). The relationships between culture and service quality perceptions: Basis for cross-cultural market segmentation and resource allocation. Journal of Service Research, 2(4), 355–371.
Gao, G. G., Greenwood, B. N., Agarwal, R., & McCullough, J. (2015). Vocal minority and silent majority: How do online ratings reflect population perceptions of quality? MIS Quarterly, 39(3), 565–589.
Godes, D., & Silva, J. C. (2012). Sequential and temporal dynamics of online opinion. Marketing Science, 31(3), 448–473.
Guo, B., & Zhou, S. (2016). Understanding the impact of prior reviews on subsequent reviews: The role of rating volume, variance and reviewer characteristics. Electronic Commerce Research and Applications, 20, 147–158.
Hinde, R. A. 1987. Individuals, Relationships and Culture: Links between Ethology and the Social Sciences. CUP Archive.
Ho, Y.-C., Wu, J., & Tan, Y. (2017). Disconfirmation effect on online rating behavior: A structural model. Information Systems Research, 28(3), 626–642.
Hofstede, G. (1984). Cultural dimensions in management and planning. Asia Pacific Journal of Management, 1(2), 81–99.
Hofstede, G. (1991). Organizations and cultures: Software of the mind. McGrawHill.
Hofstede, G. (1994). The business of international business is culture. International Business Review, 3(1), 1–14.
Hofstede, G., & McCrae, R. R. (2004). Personality and culture revisited: Linking traits and dimensions of culture. Cross-Cultural Research, 38(1), 52–88.
Hsu, C., Davison, R., & Stares, S. (2004). Cultural influences on attitudes towards Hong Kong's smart identity card. PACIS 2004 Proceedings, p. 20.
Huang, J.-H., Huang, C.-T., & Wu, S. (1996). National Character and response to unsatisfactory hotel service. International Journal of Hospitality Management, 15(3), 229–243.
Hui, C. H., & Triandis, H. C. (1986). Individualism-collectivism: A study of cross-cultural researchers. Journal of Cross-Cultural Psychology, 17(2), 225–248.
Hwang, Y., & Lee, K. C. (2012). Investigating the moderating role of uncertainty avoidance cultural values on multidimensional online trust. Information & Management, 49(3–4), 171–176.
Israeli, A. A. (2002). Star rating and corporate affiliation: Their influence on room Price and performance of Hotels in Israel. International Journal of Hospitality Management, 21(4), 405–424.
Jacowitz, K. E., & Kahneman, D. (1995). Measures of anchoring in estimation tasks. Personality and Social Psychology Bulletin, 21(11), 1161–1166.
Judge, T. A., & Cable, D. M. (1997). Applicant personality, organizational culture, and organization attraction. Personnel Psychology, 50(2), 359–394.
Lee, Y.-J., Hosanagar, K., & Tan, Y. (2015). Do I follow my friends or the crowd? Information cascades in online movie ratings. Management Science, 61(9), 2241–2258.
Leidner, D. E., & Kayworth, T. (2006). A review of culture in information systems research: toward a theory of information technology culture conflict. MIS Quarterly, 30(2), 357–399.
Li, X., & Hitt, L. M. (2008). Self-selection and information role of online product reviews. Information Systems Research, 19(4), 456–474.
Liu, R. R., & McClure, P. (2001). Recognizing cross-cultural differences in consumer complaint behavior and intentions: An empirical examination. Journal of Consumer Marketing, 18(1), 54–75.
Ma, X., Khansa, L., Deng, Y., & Kim, S. S. (2013). Impact of prior reviews on the subsequent review process in reputation systems. Journal of Management Information Systems, 30(3), 279–310.
Malhotra, N. K., Ulgado, F. M., Agarwal, J., Shainesh, G., & Wu, L. (2005). Dimensions of service quality in developed and developing economies: Multi-country cross-cultural comparisons. International Marketing Review, 22(3), 256–278.
Mattila, A. S. (1999). The role of culture in the service evaluation process. Journal of Service Research, 1(3), 250–261.
McCrae, R. R., and Terracciano, A. 2005. "personality profiles of cultures: Aggregate personality traits," Journal of personality and social psychology (89:3), p. 407.
McElroy, T., & Dowd, K. (2007). Susceptibility to anchoring effects: how openness-to-experience influences responses to anchoring cues. Judgment and Decision Making (2:1), p. 48.
Moe, W. W., & Schweidel, D. A. (2012). Online product opinions: Incidence, evaluation, and evolution. Marketing Science, 31(3), 372–386.
Moe, W. W., & Trusov, M. (2011). The value of social dynamics in online product ratings forums. Journal of Marketing Research, 48(3), 444–456.
Mussweiler, T. (2001). Sentencing under uncertainty: Anchoring effects in the courtroom. Journal of Applied Social Psychology, 31(7), 1535–1551.
Mussweiler, T., & Strack, F. (1999). Hypothesis-consistent testing and semantic priming in the anchoring paradigm: A selective accessibility model. Journal of Experimental Social Psychology, 35(2), 136–164.
Mussweiler, T., & Strack, F. (2001). The semantics of anchoring. Organizational Behavior and Human Decision Processes, 86(2), 234–255.
Ng, C. S.-P. (2013). Intention to purchase on social commerce websites across cultures: A cross-regional study. Information & Management, 50(8), 609–620.
Ngai, E. W., Heung, V. C., Wong, Y., & Chan, F. K. (2007). Consumer complaint behaviour of Asians and non-Asians about hotel services: An empirical analysis. European Journal of Marketing, 41(11/12), 1375–1391.
Petty, R. E., & Cacioppo, J. T. (1986). The elaboration likelihood model of persuasion. Advances in Experimental Social Psychology, 19, 123–205.
Rai, A., Maruping, L. M., & Venkatesh, V. (2009). Offshore information systems project success: The role of social embeddedness and cultural characteristics. MIS Quarterly, 617–641.
Saffold III, G. S. (1988). Culture traits, strength, and organizational performance: Moving beyond “strong” culture. Academy of Management Review, 13(4), 546–558.
Schlosser, A. E. (2005). Posting versus lurking: Communicating in a multiple audience context. Journal of Consumer Research, 32(2), 260–265.
Sia, C. L., Lim, K. H., Leung, K., Lee, M. K., Huang, W. W., & Benbasat, I. (2009). Web strategies to promote internet shopping: Is cultural-customization needed?. MIS Quarterly, 491–512.
Soares, A. M., Farhangmehr, M., & Shoham, A. (2007). Hofstede's dimensions of culture in international marketing studies. Journal of Business Research, 60(3), 277–284.
Sridhar, S., & Srinivasan, R. (2012). Social influence effects in online product ratings. Journal of Marketing, 76(5), 70–88.
Stafford, T. F., Turan, A., & Raisinghani, M. S. (2004). International and cross-cultural influences on online shopping behavior. Journal of Global Information Technology Management, 7(2), 70–87.
Steenkamp, J. B. E. (2001). The role of national culture in international marketing research. International Marketing Review, 18(1), 30–44.
Sun, M. (2012). How does the variance of product ratings matter? Management Science, 58(4), 696–707.
Sussman, S. W., & Siegal, W. S. (2003). Informational influence in organizations: An integrated approach to knowledge adoption. Information Systems Research, 14(1), 47–65.
Tversky, A., & Kahneman, D. (1974). Judgment under uncertainty: Heuristics and biases. Science (185:4157), 1124–1131.
Watkins, H. S., & Liu, R. (1996). Collectivism, individualism and in-group membership: Implications for consumer complaining behaviors in multicultural contexts. Journal of International Consumer Marketing, 8(3–4), 69–96.
Weber, E. U., & Hsee, C. (1998). Cross-cultural differences in risk perception, but cross-cultural similarities in attitudes towards perceived risk. Management Science, 44(9), 1205–1217.
Wegener, D. T., Petty, R. E., Blankenship, K. L., & Detweiler-Bedell, B. (2010). Elaboration and numerical anchoring: Implications of attitude theories for consumer judgment and decision making. Journal of Consumer Psychology, 20(1), 5–16.
Wegener, D. T., Petty, R. E., Detweiler-Bedell, B. T., & Jarvis, W. B. G. (2001). Implications of attitude change theories for numerical anchoring: Anchor plausibility and the limits of anchor effectiveness. Journal of Experimental Social Psychology, 37(1), 62–69.
Wu, F., & Huberman, B. (2008). How public opinion forms. Internet and Network Economics, 334–341.
Yin, D., Mitra, S., & Zhang, H. (2016). Research note—When do consumers value positive vs. negative reviews? An empirical investigation of confirmation Bias in online word of mouth. Information Systems Research, 27(1), 131–144.
Yoon, C. (2009). The effects of National Culture Values on consumer acceptance of E-commerce: Online shoppers in China. Information & Management, 46(5), 294–301.
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher’s Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Wang, Q., Chau, M., Peng, CH. et al. Using the Anchoring Effect and the Cultural Dimensions Theory to Study Customers’ Online Rating Behaviors. Inf Syst Front 24, 1451–1463 (2022). https://doi.org/10.1007/s10796-021-10148-2
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10796-021-10148-2