{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2025,10,19]],"date-time":"2025-10-19T06:03:05Z","timestamp":1760853785501,"version":"3.41.0"},"reference-count":43,"publisher":"Association for Computing Machinery (ACM)","issue":"3","license":[{"start":{"date-parts":[[2012,10,1]],"date-time":"2012-10-01T00:00:00Z","timestamp":1349049600000},"content-version":"vor","delay-in-days":0,"URL":"https:\/\/www.acm.org\/publications\/policies\/copyright_policy#Background"}],"content-domain":{"domain":["dl.acm.org"],"crossmark-restriction":true},"short-container-title":["ACM Trans. Manage. Inf. Syst."],"published-print":{"date-parts":[[2012,10]]},"abstract":"<jats:p>By using online retail data collected from Amazon, Barnes &amp; Nobel, and Pricegrabber, this paper investigates whether online vendors\u2019 pricing decisions fully reflect the information contained in various components of customers\u2019 online reviews. The findings suggest that there is inefficiency in vendors\u2019 pricing decisions. Specifically, vendors do not appear to fully understand the incremental predictive power of online reviews in forecasting future sales when they adjust their prices. However, they do understand demand persistence. Interestingly, vendors reduce price if the actual demand is higher than the expected demand (positive demand shock). This phenomenon is attributed to the advertising effect suggested in previous literature and the intense competitiveness of e-Commerce. Finally, we document that vendors do not change their prices directly in response to online reviews; their response to online reviews is through forecasting consumer\u2019s future demand.<\/jats:p>","DOI":"10.1145\/2361256.2361261","type":"journal-article","created":{"date-parts":[[2014,4,23]],"date-time":"2014-04-23T13:52:04Z","timestamp":1398261124000},"page":"1-26","update-policy":"https:\/\/doi.org\/10.1145\/crossmark-policy","source":"Crossref","is-referenced-by-count":3,"title":["Do Vendors\u2019 Pricing Decisions Fully Reflect Information in Online Reviews?"],"prefix":"10.1145","volume":"3","author":[{"given":"Nan","family":"Hu","sequence":"first","affiliation":[{"name":"University of Wisconsin Eau Claire"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Hasan","family":"Cavusoglu","sequence":"additional","affiliation":[{"name":"University of British Columbia"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Ling","family":"Liu","sequence":"additional","affiliation":[{"name":"University of Wisconsin Eau Claire"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Chenkai","family":"Ni","sequence":"additional","affiliation":[{"name":"National University of Singapore"}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"320","published-online":{"date-parts":[[2012,10]]},"reference":[{"key":"e_1_2_1_1_1","doi-asserted-by":"publisher","DOI":"10.1016\/0304-3932(83)90011-9"},{"key":"e_1_2_1_2_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1110.1370"},{"key":"e_1_2_1_3_1","doi-asserted-by":"publisher","DOI":"10.1257\/jep.15.1.69"},{"key":"e_1_2_1_4_1","volume-title":"Econometric Analysis of Panel Data","author":"Baltagi B. H.","unstructured":"Baltagi , B. H. 2001. Econometric Analysis of Panel Data 2 nd Ed. John Wiley & Sons . Chichester. Baltagi, B. H. 2001. Econometric Analysis of Panel Data 2nd Ed. John Wiley & Sons. Chichester.","edition":"2"},{"key":"e_1_2_1_5_1","doi-asserted-by":"publisher","DOI":"10.1080\/07421222.2005.11045851"},{"key":"e_1_2_1_6_1","doi-asserted-by":"publisher","DOI":"10.1002\/dir.1014"},{"key":"e_1_2_1_7_1","doi-asserted-by":"publisher","DOI":"10.2307\/2937863"},{"key":"e_1_2_1_8_1","doi-asserted-by":"publisher","DOI":"10.2307\/2555838"},{"key":"e_1_2_1_9_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.46.4.563.12061"},{"key":"e_1_2_1_10_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.49.11.1580.20580"},{"volume-title":"Proceedings of the International Conference on Information Systems. 711--724","author":"Chen P. Y.","key":"e_1_2_1_11_1","unstructured":"Chen , P. Y. , Wu , S. Y. , and Yoon , J . 2004. The impact of online recommendations and consumer feedback on sales . In Proceedings of the International Conference on Information Systems. 711--724 . Chen, P. Y., Wu, S. Y., and Yoon, J. 2004. The impact of online recommendations and consumer feedback on sales. In Proceedings of the International Conference on Information Systems. 711--724."},{"key":"e_1_2_1_12_1","doi-asserted-by":"publisher","DOI":"10.1023\/A:1024634613982"},{"key":"e_1_2_1_13_1","doi-asserted-by":"publisher","DOI":"10.1509\/jmkr.43.3.345"},{"key":"e_1_2_1_14_1","doi-asserted-by":"publisher","DOI":"10.1257\/000282803321455142"},{"key":"e_1_2_1_15_1","doi-asserted-by":"publisher","DOI":"10.2753\/MIS0742-1222230207"},{"key":"e_1_2_1_16_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1060.0567"},{"volume-title":"Proceedings of the 25th International Conference on Information Systems (ICIS).","author":"Dellarocas C.","key":"e_1_2_1_17_1","unstructured":"Dellarocas , C. , Awad , N. F. , and Zhang , X . 2004. Exploring the value of online reviews to organizations: Implications for revenue forecasting and planning . In Proceedings of the 25th International Conference on Information Systems (ICIS). Dellarocas, C., Awad, N. F., and Zhang, X. 2004. Exploring the value of online reviews to organizations: Implications for revenue forecasting and planning. In Proceedings of the 25th International Conference on Information Systems (ICIS)."},{"key":"e_1_2_1_18_1","doi-asserted-by":"publisher","DOI":"10.1016\/j.jretai.2008.04.005"},{"key":"e_1_2_1_19_1","doi-asserted-by":"publisher","DOI":"10.2307\/2555852"},{"key":"e_1_2_1_20_1","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.1992.tb04398.x"},{"key":"e_1_2_1_21_1","doi-asserted-by":"publisher","DOI":"10.5555\/3215995.3215996"},{"key":"e_1_2_1_22_1","doi-asserted-by":"publisher","DOI":"10.1109\/TKDE.2010.188"},{"key":"e_1_2_1_23_1","doi-asserted-by":"publisher","DOI":"10.1214\/088342306000000187"},{"key":"e_1_2_1_24_1","doi-asserted-by":"publisher","DOI":"10.1287\/isre.1050.0072"},{"key":"e_1_2_1_25_1","doi-asserted-by":"publisher","DOI":"10.1287\/mksc.1040.0071"},{"key":"e_1_2_1_26_1","doi-asserted-by":"publisher","DOI":"10.2307\/2601009"},{"key":"e_1_2_1_27_1","unstructured":"Hosken D. Matsa D. and Reiffen D. 2000. How Do Retailers Adjust Price? Evidence from Store-Level Price Elasticity. Federal Trade Commission - Bureau of Economics: Working Papers. Hosken D. Matsa D. and Reiffen D. 2000. How Do Retailers Adjust Price? Evidence from Store-Level Price Elasticity. Federal Trade Commission - Bureau of Economics: Working Papers."},{"key":"e_1_2_1_28_1","doi-asserted-by":"publisher","DOI":"10.1007\/s10799-008-0041-2"},{"key":"e_1_2_1_29_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.44.7.935"},{"key":"e_1_2_1_30_1","doi-asserted-by":"publisher","DOI":"10.1145\/2070710.2070716"},{"key":"e_1_2_1_31_1","doi-asserted-by":"publisher","DOI":"10.1287\/isre.1070.0154"},{"key":"e_1_2_1_32_1","doi-asserted-by":"publisher","DOI":"10.2753\/MIS0742-1222270401"},{"key":"e_1_2_1_33_1","doi-asserted-by":"publisher","DOI":"10.1509\/jmkg.70.3.074"},{"key":"e_1_2_1_34_1","doi-asserted-by":"publisher","DOI":"10.1287\/mksc.1050.0137"},{"volume-title":"A Rational Expectations Approach to Macroeconometrics: Testing Policy Effectiveness and Efficient-Market Models","author":"Mishkin F.","key":"e_1_2_1_35_1","unstructured":"Mishkin , F. 1983. A Rational Expectations Approach to Macroeconometrics: Testing Policy Effectiveness and Efficient-Market Models . University of Chicago Press. Mishkin, F. 1983. A Rational Expectations Approach to Macroeconometrics: Testing Policy Effectiveness and Efficient-Market Models. University of Chicago Press."},{"key":"e_1_2_1_36_1","volume-title":"Microeconomic Theory: Basic Principles and Extensions","author":"Nicholson W.","year":"1998","unstructured":"Nicholson , W. 1998 . Microeconomic Theory: Basic Principles and Extensions 7 th Ed. The Dryden Press . Nicholson, W. 1998. Microeconomic Theory: Basic Principles and Extensions 7th Ed. The Dryden Press.","edition":"7"},{"key":"e_1_2_1_37_1","first-page":"289","article-title":"Do stock prices fully reflect information in accruals and cash flows about future earnings","volume":"71","author":"Sloan R.","year":"1996","unstructured":"Sloan , R. 1996 . Do stock prices fully reflect information in accruals and cash flows about future earnings ? Account. Rev. 71 , 3, 289 -- 315 . Sloan, R. 1996. Do stock prices fully reflect information in accruals and cash flows about future earnings? Account. Rev. 71, 3, 289--315.","journal-title":"Account. Rev."},{"key":"e_1_2_1_38_1","doi-asserted-by":"publisher","DOI":"10.1509\/jmkg.72.2.15"},{"key":"e_1_2_1_39_1","doi-asserted-by":"publisher","DOI":"10.1177\/002224297303700404"},{"key":"e_1_2_1_40_1","doi-asserted-by":"publisher","DOI":"10.1016\/S0165-4101(00)00007-0"},{"key":"e_1_2_1_41_1","doi-asserted-by":"publisher","DOI":"10.2307\/2118442"},{"key":"e_1_2_1_42_1","doi-asserted-by":"publisher","DOI":"10.2308\/accr.2001.76.3.357"},{"key":"e_1_2_1_43_1","doi-asserted-by":"publisher","DOI":"10.1145\/2151163.2151168"}],"container-title":["ACM Transactions on Management Information Systems"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/dl.acm.org\/doi\/10.1145\/2361256.2361261","content-type":"unspecified","content-version":"vor","intended-application":"text-mining"},{"URL":"https:\/\/dl.acm.org\/doi\/pdf\/10.1145\/2361256.2361261","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2025,6,18]],"date-time":"2025-06-18T09:34:15Z","timestamp":1750239255000},"score":1,"resource":{"primary":{"URL":"https:\/\/dl.acm.org\/doi\/10.1145\/2361256.2361261"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2012,10]]},"references-count":43,"journal-issue":{"issue":"3","published-print":{"date-parts":[[2012,10]]}},"alternative-id":["10.1145\/2361256.2361261"],"URL":"https:\/\/doi.org\/10.1145\/2361256.2361261","relation":{},"ISSN":["2158-656X","2158-6578"],"issn-type":[{"type":"print","value":"2158-656X"},{"type":"electronic","value":"2158-6578"}],"subject":[],"published":{"date-parts":[[2012,10]]},"assertion":[{"value":"2011-10-01","order":0,"name":"received","label":"Received","group":{"name":"publication_history","label":"Publication History"}},{"value":"2012-07-01","order":1,"name":"accepted","label":"Accepted","group":{"name":"publication_history","label":"Publication History"}},{"value":"2012-10-01","order":2,"name":"published","label":"Published","group":{"name":"publication_history","label":"Publication History"}}]}}