Building Consumer Trust Through Online Ratings and Reviews: Implications for Durable Goods Purchases

Abstract

With the growth of eCommerce, consumers' attitudes toward evaluating durable goods have changed. Consumers rely on online ratings and reviews as a source of information and social validation, as durable goods, in particular, are often significant purchases, have longer product life cycles, and there's more uncertainty about quality and performance. The objective of this study is to explore how consumer trust is developed and how their ratings and reviews affect purchase-related evaluations of durable goods on the Internet. Consumers' perceived authenticity, rating consistency, review quality, consumers' credibility, and the informational value of consumer-generated content are given particular focus. Prior studies have shown that consumers judge the credibility and usefulness of online reviews for evaluating products and making purchase decisions, and that review valence, credibility, usefulness and source characteristics could affect purchase-related measures. The study proposes consumer trust as an important channel by which information from online reviews can impact consumers' perceptions of product reliability, quality, and purchase confidence. It also acknowledges the potential for increased uncertainty and lack of trust if the concern arises over exaggerated, manipulated, or misleading reviews. The study's emphasis on durable goods underscores the need for credible information derived from others when a consumer is unable to inspect a product, or experience it first-hand, before buying it. The results will help inform the understanding of digital consumer behaviour and offer implications for both e-commerce platforms and retailers and manufacturers looking to build the credibility of their reviews, consumer trust and informed purchase decisions. Consumer review ratings of electronic products specifically underscore the role of review credibility, reviewer credibility, and platform credibility in purchasing durable products.