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

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.



Citation:

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 , Carolyn Yoon, and , Duluth, MN : Association for Consumer Research, Pages: 736-737.

Authors

Stephen He, Manhattan College, U.S.A.
Na (Amy) Wen, City University of Hong Kong, Hong Kong



Volume

NA - Advances in Consumer Research Volume 43 | 2015



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