Abstract/Summary

User-generated reviews are valuable resources for consumers to gain information of products which has significant impact on their following decision-making. With the development of social network service, consumers are exposed to reviews coming from both friends and the crowds (non-friends). However, the impact of friends’ and crowds’ reviews on consumer posting behaviour has not been well differentiated. Using the online review information as well as the underlying social network from Yelp, this paper develops a multilevel mixed effect probit model to study the impact of consumer characteristics and reviews of different sources, i.e. friends or crowds, on the possibility of consumer further engaging in posting behaviour. Despite the common perception that the volume, valance and variance of reviews significantly impact the possibility of following posting behaviour, we show that such influence majorly comes from the friend reviews. The volume of friend reviews has much stronger impact on the target user’s posting behaviour than that of the crowds. The valance and variance of the crowd reviews show no significant influence when ignoring the friend reviews, but negative influence when considering it. The friend reviews and crowd reviews are further divided as positive and negative ones, and only the positive friend reviews and negative crowd review are found significantly enhancing the posting possibility.