This article examines the impact of social dynamics on consumer online product ratings and their subsequent effects on rating behavior and product sales. The authors first model the arrival of product ratings, distinguishing social influences from baseline ratings behavior. They then analyze product sales as a function of posted ratings, breaking down ratings into baseline ratings, social influence contributions, and idiosyncratic errors. This approach quantifies the sales impact of social dynamics, considering both direct sales effects and indirect effects via future ratings and sales. The findings indicate that while previous ratings significantly influence subsequent ratings and can boost sales, these effects are relatively short-lived once indirect effects are accounted for.
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Moe, Wendy W., and Michael Trusov. "The value of social dynamics in online product ratings forums." Journal of marketing research 48.3 (2011): 444-456.
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