Pricing · The article combines an analytical model with a panel-data study of prices and reviews; the publisher abstract says the empirical analysis uses a difference-in-differences framework to address endogeneity.
Online Product Reviews-Triggered Dynamic Pricing: Theory and Evidence
Information Systems Research · 2019
Summary
The model predicts that firms can manipulate pricing to influence reviews and sales and can dynamically adjust prices in response to online word of mouth; the panel-data difference-in-differences study is presented as empirical support for those predictions.
For your marketing
Possible founder application
Use this as a pricing or packaging hypothesis and define outcomes to measure; estimate effects with your own customer mix and willingness-to-pay evidence.
Reported result
What the study found
The model predicts that firms can manipulate pricing to influence reviews and sales and can dynamically adjust prices in response to online word of mouth; the panel-data difference-in-differences study is presented as empirical support for those predictions.
Research question
What the authors investigated
How do online product reviews interact with firm pricing strategy, and can firms use dynamic pricing in response to online word of mouth?
Design
The article combines an analytical model with a panel-data study of prices and reviews; the publisher abstract says the empirical analysis uses a difference-in-differences framework to address endogeneity.
Sample and setting
Online product prices and user-generated product reviews; the publisher page does not specify the retailer, product categories, panel size, or observation period in the abstract.
Scope and transfer
Limitations to keep in view
Not stated in the publisher abstract; the page does not provide enough detail to identify sample-specific external-validity limitations.
Research sources
The publisher describes a panel-data study of prices and reviews using difference-in-differences, and says the study offers empirical support for the analytical predictions. Direct publisher-page retrieval was recorded on 2026-10-09; profile summarizes the accessible record and does not claim independent review of inaccessible full text.