Does the effect of online customer reviews on sales differ between tangible and non-tangible products in an online marketplace?

This study examines the different impact of online customer reviews on sales performance between tangible and non-tangible products in an online marketplace. Using Amazon review data, this study looks at different review features - average rating, text length, number of reviews, and inclusion of visuals – that affect sales performance differently for these product categories. Results reveal that average ratings and the number of reviews positively impact sales performance for both product types, with a stronger effect for tangible products. Unexpectedly, longer review texts show a slight negative relationship with sales performance, likely due to non-informative content. Reviews with visuals significantly boost sales performance, especially for tangible products, by providing clear visual verification. These findings highlight the importance of a review management strategy aligned with product category, business can use these insights to optimize the buyer journey and improve sales performance.