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Prior research has indicated that consumers’ decisions are significantly influenced by online reviews. However, existing research has focused mainly on attributes (e.g., average ratings) that are not fully controlled by firms; only limited research has investigated how controllable attributes (e.g., review display formats) affect consumers. Drawing on visual perception research, the authors examine the effectiveness of two prominent graphical display formats used by major e-commerce platforms: one that displays rating distributions in a proportional format (e.g., Amazon) and one that does so in a simple format (e.g., Google). The results indicate that due to the changes in graphs’ reference points caused by the shrunken x-axis in simple bar graphs, consumers respond more positively to an item when its rating distribution is displayed in a graphically simple (vs. proportional) format. This effect is moderated by the distribution's peak value (i.e., the share of the most frequent rating) and imbalance score (i.e., the difference between the share of positive and negative ratings). Furthermore, even an item's future ratings are influenced by the graphical format in which its prior ratings are displayed. The contributions to the marketing literature are discussed, and insights that can aid managers in making more informed decisions are provided.
Mousavi et al. (Tue,) studied this question.