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The authors examine the effect of consumer reviews on relative sales of books at Amazon.com and Barnesandnoble.com . The authors find that (1) reviews are overwhelmingly positive at both sites, but there are more reviews and longer reviews at Amazon.com ; (2) an improvement in a book's reviews leads to an increase in relative sales at that site; (3) for most samples in the study, the impact of one-star reviews is greater than the impact of five-star reviews; and (4) evidence from review-length data suggests that customers read review text rather than relying only on summary statistics.
Chevalier et al. (Tue,) studied this question.
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