Speaker: Steffen Zimmerman, Associate Professor of Information Systems, University of Innsbruck
Presentation in room: 2A08
Abstract: Consumer ratings play a decisive role in purchases by online shoppers. I present an analytical model which considers two sources of variance of consumer ratings: taste differences about search attributes and product failure representing experience attributes. I will show that the two sources of variance differentially affect price and demand of a product and, counter to intuition, that risk averse consumers may prefer a higher priced product with a higher total variance in ratings.