When good WOM hurts and bad WOM gains: The effect of untrustworthy online reviews

As a form of word of mouth (WOM), online reviews are used to reduce uncertainty about service or product quality and to direct consumer attitudes and behavior through the valence of the review. However, because the communication partner is anonymous, there is a degree of uncertainty regarding whether the review is trustworthy. This paper considers the moderating effect of review trustworthiness on the relationship between review valence and purchase intention. It takes into account the availability of review argumentation and review skepticism as a result of prior persuasion experience as influences on review trustworthiness. Specifically, two scenario-based experiments are used. The results show that trustworthy reviews influence purchase intention in the same direction as review valence. However, untrustworthy reviews cause a “boomerang effect,” so that positive reviews decrease and negative reviews increase purchase intention as a result of reactant behavior. The results are discussed, and practical implications for companies are suggested.