The Effects Of Review Manipulation On Reputation

Online transaction breaks through time and space constraints,allowing buyers and sellers to trade anywhere,anytime.Online transaction raises the welfare of society at lower prices(Bapna,Jank,and Shmueli,2008).However,the information asymmetry will hinder the online transaction.Modern economic theory research on information asymmetry shows that if the seller in the market cannot show the buyer the quality of the goods in a convincing way,or the seller cannot believe that the buyer will fulfill the payment obligation after receiving the goods,the asymmetric information will make market transactions have gradually shrunk or even disappeared completely(Akerlof,1970;Kreps,1990).In order to cope with the information asymmetry of online transactions,major e-commerce platforms have established a reputation mechanism,which records the evaluations obtained in past transactions.The evaluation cumulatively forms the“reputation”of every users.The reputation mechanism is ultimately presented to the user with reputation scores and some reviews.As an important part of the reputation mechanism,ouline review is more and more popular and valued because it can provide more comprehensive product information.It has become a habit for consumers to browse online reviews before purchasing goods.However,because of the limitations of online transaction regulation,some merchants manipulate the online reviews to achieve their economic goals.The online reputation mechanism has become an important part of the online shopping platform.A good reputation can improve the success of the transaction,but the review manipulation activity is a kind of interference to the reputation mechanism,which will inevitably affect the value of the reputation.The paper examines the impact of review manipulation on reputation mechanism through 2x2 inter-subject factor experiments.The empirical results are as follows:Reputation mechanism is an important part of online shopping platform?and reputation can enhance consumers' willingness to buy;Review manipulation behavior will affect consrmer's willingness to buy;The usefulness and credibility of reviews will play a full intermediary role in the influence of review manipulation on reputation mechanism;Whether search products or experience products,review manipulation will make the usefulness perception,credibility and willingness to buy of consumer decline significantly.The product type did not have a significant regulating effect.Finally suggestions.On the one hand,online merchants and platforms should face the consequences of online review manipulation.Other reputation mechanism participants should also understand the harm of review manipulation,restrain themselves,and be honest.For the seller,the review manipulation will bring the short-tern benefits,but it will reduce the usefulness and credibility of reviews;For the consumer,review manipulation activities will interfere with consumers'judgments and decisions,and may induce consumers to make non-optimal choices;For the platform,the proliferation of false reviews will damage the credibility and usefulness of the entire reputation mechanism and increase the difficulty of platforn management.On the otiher hand,the seller should focus on improving product quality,carefully adopt review manipulation,and create a network environment with strong reputation;Third-party platforms should adopt more advanced technology to monitor and discover active review manipulation activities and strengthen management.The regulatory authorities shoxuld increase the punishment for review manipulation.It's necessary to create an honest online shopping environment to ensure the healthy development of online transactions through the cooperation of the participants.