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How Online Reviews Influence Customer Agility and Product Innovation? Evidences from Mobile App
Abstract   Open access

How Online Reviews Influence Customer Agility and Product Innovation? Evidences from Mobile App

Shihao Zhou, Zhilei Qiao, Weiguo Fan and Gang Wang
Academy of Management Annual Meeting Proceedings, Vol.2017(1), p.15370
01/2017
DOI: 10.5465/ambpp.2017.15370abstract
url
https://doi.org/10.5465/ambpp.2017.15370abstractView
Published (Version of record) Open Access

Abstract

This study examines new product development based on online customer reviews. We develop a tension perspective to reconcile inconsistencies in prior literature and examine relationships among online review volume, new product performance, and customer agility, which describes the effectiveness of a product developer’s response to customers’ demands. We argue that because large-volume reviews are valuable but difficult to process, review volume has a curvilinear relationship with customer agility. This relationship is moderated by the producer’s number of sibling products and niche marketing strategy. Furthermore, because making effective responses to demands raises customers’ willingness to buy and product development costs simultaneously, customer agility has a curvilinear relationship with product innovation performance. We test our model using a large mobile app dataset and find support for our hypotheses. Our findings of the curvilinear relationships and moderators provide nuanced explanations on how big data of online reviews facilitate product innovation.

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