Jie Zhang

Bio: Jie Zhang is an academic researcher from University of Texas at Arlington. The author has contributed to research in topics: Crowdsourcing & Social media. The author has an hindex of 24, co-authored 55 publications receiving 3686 citations. Previous affiliations of Jie Zhang include College of Business Administration & University of Toledo.

Do Online Reviews Affect Product Sales? The Role of Reviewer Characteristics and Temporal Effects

Abstract: Online product reviews provided by consumers who previously purchased products have become a major information source for consumers and marketers regarding product quality. This study extends previous research by conducting a more compelling test of the effect of online reviews on sales. In particular, we consider both quantitative and qualitative aspects of online reviews, such as reviewer quality, reviewer exposure, product coverage, and temporal effects. Using transaction cost economics and uncertainty reduction theories, this study adopts a portfolio approach to assess the effectiveness of the online review market. We show that consumers understand the value difference between favorable news and unfavorable news and respond accordingly. Furthermore, when consumers read online reviews, they pay attention not only to review scores but to other contextual information such as a reviewer's reputation and reviewer exposure. The market responds more favorably to reviews written by reviewers with better reputation and higher exposure. Finally, we demonstrate that the impact of online reviews on sales diminishes over time. This suggests that firms need not provide incentives for customers to write reviews beyond a certain time period after products have been released.

Overcoming the J-shaped distribution of product reviews

Abstract: Introduction While product review systems that collect and disseminate opinions about products from recent buyers (Table 1) are valuable forms of word-of-mouth communication, evidence suggests that they are overwhelmingly positive. Kadet notes that most products receive almost five stars. Chevalier and Mayzlin also show that book reviews on Amazon and Barnes & Noble are overwhelmingly positive. Is this because all products are simply outstanding? However, a graphical representation of product reviews reveals a J-shaped distribution (Figure 1) with mostly 5-star ratings, some 1-star ratings, and hardly any ratings in between. What explains this J-shaped distribution? If products are indeed outstanding, why do we also see many 1-star ratings? Why aren't there any product ratings in between? Is it because there are no "average" products? Or, is it because there are biases in product review systems? If so, how can we overcome them? The J-shaped distribution also creates some fundamental statistical problems. Conventional wisdom assumes that the average of the product ratings is a sufficient proxy of product quality and product sales. Many studies used the average of product ratings to predict sales. However, these studies showed inconsistent results: some found product reviews to influence product sales, while others did not. The average is statistically meaningful only when it is based on a unimodal distribution, or when it is based on a symmetric bimodal distribution. However, since product review systems have an asymmetric bimodal (J-shaped) distribution, the average is a poor proxy of product quality. This report aims to first demonstrate the existence of a J-shaped distribution, second to identify the sources of bias that cause the J-shaped distribution, third to propose ways to overcome these biases, and finally to show that overcoming these biases helps product review systems better predict future product sales. We tested the distribution of product ratings for three product categories (books, DVDs, videos) with data from Amazon collected between February--July 2005: 78%, 73%, and 72% of the product ratings for books, DVDs, and videos are greater or equal to four stars (Figure 1), confirming our proposition that product reviews are overwhelmingly positive. Figure 1 (left graph) shows a J-shaped distribution of all products. This contradicts the law of "large numbers" that would imply a normal distribution. Figure 1 (middle graph) shows the distribution of three randomly-selected products in each category with over 2,000 reviews. The results show that these reviews still have a J-shaped distribution, implying that the J-shaped distribution is not due to a "small number" problem. Figure 1 (right graph) shows that even products with a median average review (around 3-stars) follow the same pattern.

Do online reviews affect product sales? The role of reviewer characteristics and temporal effects

Abstract: Online product reviews provided by consumers who previously purchased products have become a major information source for consumers and marketers regarding product quality. This study extends previous research by conducting a more compelling test of the effect of online reviews on sales. In particular, we consider both quantitative and qualitative aspects of online reviews, such as reviewer quality, reviewer exposure, product coverage, and temporal effects. Using transaction cost economics and uncertainty reduction theories, this study adopts a portfolio approach to assess the effectiveness of the online review market. We show that consumers understand the value difference between favorable news and unfavorable news and respond accordingly. Furthermore, when consumers read online reviews, they pay attention not only to review scores but to other contextual information such as a reviewer's reputation and reviewer exposure. The market responds more favorably to reviews written by reviewers with better reputation and higher exposure. Finally, we demonstrate that the impact of online reviews on sales diminishes over time. This suggests that firms need not provide incentives for customers to write reviews beyond a certain time period after products have been released.

Social Media and Firm Equity Value

Abstract: Companies have increasingly advocated social media technologies to transform businesses and improve organizational performance. This study scrutinizes the predictive relationships between social media and firm equity value, the relative effects of social media metrics compared with conventional online behavioral metrics, and the dynamics of these relationships. The results derived from vector autoregressive models suggest that social media-based metrics (web blogs and consumer ratings) are significant leading indicators of firm equity value. Interestingly, conventional online behavioral metrics (Google searches and web traffic) are found to have a significant yet substantially weaker predictive relationship with firm equity value than social media metrics. We also find that social media has a faster predictive value, i.e., shorter “wear-in” time, than conventional online media. These findings are robust to a consistent set of volume-based measures (total blog posts, rating volume, total page views, and search intensity). Collectively, this study proffers new insights for senior executives with respect to firm equity valuations and the transformative power of social media.

Social Media and Firm Equity Value

Abstract: Companies have increasingly advocated social media technologies to transform businesses and improve organizational performance. This study scrutinizes the predictive relationships between social media and firm equity value, the relative effects of social media metrics compared with conventional online behavioral metrics, and the dynamics of these relationships. The results derived from vector autoregressive models suggest that social media-based metrics Web blogs and consumer ratings are significant leading indicators of firm equity value. Interestingly, conventional online behavioral metrics Google searches and Web traffic are found to have a significant yet substantially weaker predictive relationship with firm equity value than social media metrics. We also find that social media has a faster predictive value, i.e., shorter “wear-in” time, than conventional online media. These findings are robust to a consistent set of volume-based measures total blog posts, rating volume, total page views, and search intensity. Collectively, this study proffers new insights for senior executives with respect to firm equity valuations and the transformative power of social media.

Marketing for management.

Abstract: MKT 6009 Marketing Internship (0 semester credit hours) Student gains experience and improves skills through appropriate developmental work assignments in a real business environment. Student must identify and submit specific business learning objectives at the beginning of the semester. The student must demonstrate exposure to the managerial perspective via involvement or observation. At semester end, student prepares an oral or poster presentation, or a written paper reflecting on the work experience. Student performance is evaluated by the work supervisor. Pass/Fail only. Prerequisites: (MAS 6102 or MBA major) and department consent required. (0-0) S MKT 6244 Digital Marketing Strategy (2 semester credit hours) Executive Education Course. The course explores three distinct areas within marketing and sales namely, digital marketing, traditional sales prospecting, and executive sales organization and strategy. The continuing convergence of the digital marketing and sales funnels has created a strategic continuum from digital lead generation to digital sales. The course identifies the current composition of this digital continuum while providing opportunities to evaluate sales and marketing digital strategies. Prerequisites: MKT 6301 and instructor consent required. (2-0) Y MKT 6301 (SYSM 6318) Marketing Management (3 semester credit hours) Overview of marketing management methods, principles and concepts including product, pricing, promotion and distribution decisions as well as segmentation, targeting and positioning. (3-0) S MKT 6309 Marketing Data Analysis and Research (3 semester credit hours) Methods employed in market research and data analysis to understand consumer behavior, customer journeys, and markets so as to enable better decision-making. Topics include understanding different sources of data, survey design, experiments, and sampling plans. The course will cover the techniques used for market sizing estimation and forecasting. In addition, the course will cover the foundational concepts and techniques used in data visualization and \"story-telling\" for clients and management. Corequisites: MKT 6301 and OPRE 6301. (3-0) Y MKT 6310 Consumer Behavior (3 semester credit hours) An exposition of the theoretical perspectives of consumer behavior along with practical marketing implication. Study of psychological, sociological and behavioral findings and frameworks with reference to consumer decision-making. Topics will include the consumer decision-making model, individual determinants of consumer behavior and environmental influences on consumer behavior and their impact on marketing. Prerequisite: MKT 6301. (3-0) Y MKT 6321 Interactive and Digital Marketing (3 semester credit hours) Introduction to the theory and practice of interactive and digital marketing. Topics covered include: online-market research, consumer behavior, conversion metrics, and segmentation considerations; ecommerce, search and display advertising, audiences, search engine marketing, email, mobile, video, social networks, and the Internet of Things. (3-0) T MKT 6322 Internet Business Models (3 semester credit hours) Topics to be covered are: consumer behavior on the Internet, advertising on the Internet, competitive strategies, market research using the Internet, brand management, managing distribution and supply chains, pricing strategies, electronic payment systems, and developing virtual organizations. Further, students learn auction theory, web content design, and clickstream analysis. Prerequisite: MKT 6301. (3-0) Y MKT 6323 Database Marketing (3 semester credit hours) Techniques to analyze, interpret, and utilize marketing databases of customers to identify a firm's best customers, understanding their needs, and targeting communications and promotions to retain such customers. Topics

Estimation and Inference in Econometrics

Abstract: Offering a unifying theoretical perspective not readily available in any other text, this innovative guide to econometrics uses simple geometrical arguments to develop students' intuitive understanding of basic and advanced topics, emphasizing throughout the practical applications of modern theory and nonlinear techniques of estimation. One theme of the text is the use of artificial regressions for estimation, reference, and specification testing of nonlinear models, including diagnostic tests for parameter constancy, serial correlation, heteroscedasticity, and other types of mis-specification. Explaining how estimates can be obtained and tests can be carried out, the authors go beyond a mere algebraic description to one that can be easily translated into the commands of a standard econometric software package. Covering an unprecedented range of problems with a consistent emphasis on those that arise in applied work, this accessible and coherent guide to the most vital topics in econometrics today is indispensable for advanced students of econometrics and students of statistics interested in regression and related topics. It will also suit practising econometricians who want to update their skills. Flexibly designed to accommodate a variety of course levels, it offers both complete coverage of the basic material and separate chapters on areas of specialized interest.

Economics of Information

Abstract: The author systematically examines one of the important issues of information — establishing the market price. He introduces the concept of «search» — where a buyer wanting to get a better price, is forced to question sellers. The article deals with various aspects of finding the necessary information.

[서평]「Applied Cryptography」

Abstract: The objective of this paper is to give a comprehensive introduction to applied cryptography with an engineer or computer scientist in mind. The emphasis is on the knowledge needed to create practical systems which supports integrity, confidentiality, or authenticity. Topics covered includes an introduction to the concepts in cryptography, attacks against cryptographic systems, key use and handling, random bit generation, encryption modes, and message authentication codes. Recommendations on algorithms and further reading is given in the end of the paper. This paper should make the reader able to build, understand and evaluate system descriptions and designs based on the cryptographic components described in the paper.

Interactive home shopping: Consumer, retailer, and manufacturer incentives to participate in

Abstract: The authors examine the implications of electronic shopping for consumers, retailers, and manufacturers. They assume that near-term technological developments will offer consumers unparalleled opportunities to locate and compare product offerings. They examine these advantages as a function of typical consumer goals and the types of products and services being sought and offer conclusions regarding consumer incentives and disincentives to purchase through interactive home shopping vis-à-vis traditional retail formats. The authors discuss implications for industry structure as they pertain to competition among retailers, competition among manufacturers, and retailer-manufacturer relationships.