The Multiple Source Effect of Online Consumer Reviews on Brand Evaluations: Test of the Risk Diversification Hypothesis

Abstract

This research examines the multiple source effect of online consumer reviews (OCRs) on brand evaluations. In a test of the risk diversification hypothesis, the authors postulate that OCRs can enhance brand evaluations because exposure to multiple sources of OCRs not only prompts more effortful processing of different reviews, but also diversifies online purchase risks. The empirical data reported in this article demonstrate that brand evaluations become more favorable when OCRs are provided by multiple review sources with dissimilar backgrounds. It is further shown that this persuasive advantage accentuates when a consumer purchases a product from a less trusted online seller or when a consumer purchases a lesser-known brand.