Cart (Loading....) | Create Account
Close category search window
 

Do Links Matter? An Investigation of the Impact of Consumer Feedback, Recommendation Networks, and Price Bundling on Sales

Sign In

Cookies must be enabled to login.After enabling cookies , please use refresh or reload or ctrl+f5 on the browser for the login options.

Formats Non-Member Member
$31 $13
Learn how you can qualify for the best price for this item!
Become an IEEE Member or Subscribe to
IEEE Xplore for exclusive pricing!
close button

puzzle piece

IEEE membership options for an individual and IEEE Xplore subscriptions for an organization offer the most affordable access to essential journal articles, conference papers, standards, eBooks, and eLearning courses.

Learn more about:

IEEE membership

IEEE Xplore subscriptions

5 Author(s)
Nan Hu ; Dept. of Accounting & Finance, Univ. of Wisconsin-Eau Claire, Eau Claire, WI, USA ; Gaoliang Tian ; Ling Liu ; Bin Liang
more authors

Link structures among items within an E-commerce Web site can be regarded as a potential recommendation that helps new consumers quickly locate relevant products. In this paper, combining a modified version of Google's PageRank method with economic analysis of word of mouth, we investigate whether a product's position within a network composed of recommendation links is incrementally informative about its future sales. Based on data from Amazon.com, we document that with consumer word of mouth and other product characteristics controlled, the position of a product within a recommendation network does influence consumers' purchase decisions, and models incorporating link structure have a higher incremental predictive power of future sales than models without. In addition, as time elapses, the relative weights consumers placed on recommendations with price discount and those without are different. Last, we develop a learning mechanism through which we find the optimal damping value of the PageRank IR model in the Amazon context. Our results show that compared to general Internet surfing behavior, consumer consumption on Amazon is less random. We conclude that even though the product position within a recommendation network does influence customers' purchase behaviors, product sales are still mainly driven by their own product characteristics.

Published in:

Engineering Management, IEEE Transactions on  (Volume:59 ,  Issue: 2 )

Date of Publication:

May 2012

Need Help?


IEEE Advancing Technology for Humanity About IEEE Xplore | Contact | Help | Terms of Use | Nondiscrimination Policy | Site Map | Privacy & Opting Out of Cookies

A not-for-profit organization, IEEE is the world's largest professional association for the advancement of technology.
© Copyright 2014 IEEE - All rights reserved. Use of this web site signifies your agreement to the terms and conditions.