Impact of Online Customer Reviews on Purchase Decisions in Pakistan's E-commerce Industry

Abstract

This paper aims at exploring the impacts of the online customer reviews on the consumers’ intended purchasing behavior in the context of emerging e-commerce sector of Pakistan. In using the data collection method of the research, the survey research design was adopted in which a survey questionnaire was administered to 384 Pakistani online shoppers. There are five aspects considered and investigated: the review credibility, quantity, quality, expertise of the reviewer, and valence of the reviews. It is as follows that all the five observed factors influence the decision to make a purchase but credibility and quality of the reviews stand out as having a greater influence. Notably, the Pakistani participants put special emphasis on the negative reviews while making a buying decision, which signifies that the participants like shopping cautiously. It was also pointed out that female consumers were more sensitive to the review factors as compared to the male consumers. It enriches the knowledge of consumers’ behavior in relatively new e-shopping markets and offers practical recommendations for e-shopping companies in Pakistan. By extant literature, it emerges that timely and efficient review management is a critical success factor for creating customer trust and enhancing sales in the context of the highly commoditized online market place.

Keywords: online reviews, e-commerce, consumer behavior, purchase decision, Pakistan, review credibility, review valence, digital marketing