A Cautious Pursuit of Risk in Online Word-Of-Mouth: the Effect of Truncated Distribution on Consumer Decisions

Stephen He, Manhattan College, U.S.A.
Na (Amy) Wen, City University of Hong Kong, Hong Kong
Combining field and experimental data, we investigate word-of-mouth (WOM) based consumer decisions in four studies. Contrary to traditional reference-dependent predictions, high WOM dispersion is preferred among options with high WOM average. This pattern is driven by truncation of WOM distribution and elongation bias.
[ to cite ]:
Stephen He and Na (Amy) Wen (2015) ,"A Cautious Pursuit of Risk in Online Word-Of-Mouth: the Effect of Truncated Distribution on Consumer Decisions ", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl and Carolyn Yoon, Duluth, MN : Association for Consumer Research, Pages: 736-737.