Opinion Evolution Model for Online Reviews from the Perspective of Value Co-creation

Opinions from online reviews reflect consumers' value perception toward products and services. However, the evolution mechanism of online opinions in the process of value co-creation resulting from an interaction between heterogeneous consumers and merchants remains unclear. In this context, we propose an opinion evolution model based on the advanced Hegselmann-Krause model from the value co-creation perspective to explore the online opinions in a merchant-consumer interaction process. Simulation results show that the heterogeneity of consumers, merchants' review display methods, and investment behaviors have an impact on online opinions and merchants' profits. Radical and active consumers are less likely satisfied with merchants' products or services; whereas balanced, robust, and conservative consumers are more likely satisfied. In addition, the review volume displayed per page has an impact on online opinions and merchants' profits but becomes invalid when a certain threshold is exceeded. The brand effect can significantly increase online opinions and merchants' profits only when such an effect exceeds a certain threshold. Furthermore, findings indicate that merchants should not only be concerned about short-term investment in initial products/services quality but also on the long-term investment in the brand effect. They should also avoid the idea of getting once-and-for-all or free-riding.

Automated summary

This study explores the evolution of online opinions in the merchant-consumer interaction process from the perspective of value co-creation. The findings indicate that the heterogeneity of consumers, merchants' review display methods, and investment behaviors have an impact on online opinions and merchants' profits.