Lecture 6

Question 1

UGC

Answer 1

content generated by the user and the user is also a consumer of the content

Question 2

review

Answer 2

unstructured data

Question 3

ratings

Answer 3

easy to analyze

Question 4

How UGC (reviews) help consumers

Answer 4

reduce uncertainty for products where it is hard to judge quality

Question 5

How reviews affects behavior

Answer 5

Positive reviews increase purchases

Question 6

changes in revenue without reviews
(case I)

Answer 6

few people buy
higher surplus

Question 7

changes in revenue with reviews
(case II)

Answer 7

more people buy
higher surplus

Question 8

changes in revenue with too many reviews (case III)
overconsumption

Answer 8

too many people buy
negative surplus (quality is worse than expected )

Question 9

consumer surplus in terms of UGC (reviews)

Answer 9

UGC adds more value to the content, and consumer surplus increases

Question 10

positive/negative reviews have more effect on the consumer

Answer 10

negative reviews

Question 11

review hijacking

Answer 11

take review from another product and put it to yourself

Question 12

Polarized reviews are ……. likely than moderate

Answer 12

more likely than moderate

Question 13

consequences of polarity bias

Answer 13

frequent reviews have lower bias

Question 14

How J-shape distribution is measured

Answer 14

using polarity and imbalance to describe the ratings

Question 15

empirical facts of ratings

Answer 15

1. J-shape distribution of ratings
2. Ratings decline over time

Question 16

why reviews decline over time

Answer 16

2 different types of consumers:
- early adopters (high ratings, enthusiastic)
- late adopters (low rating) ==> the average over time declines

Question 17

How J-shape distribution is measured

Answer 17

using polarity and imbalance to describe the ratings