The Differential Effects of Online Peer Review and Expert Review on Service Evaluations: The Roles of Confidence and Information Convergence

The present research investigates the differential effects of online peer review and expert review on consumers’ evaluations of experience and credence services. We propose that these effects are mediated by consumers’ confidence in their service evaluation and moderated by information convergence. We conduct three studies to test our hypotheses. Study 1 shows that consumers evaluate experience (vs. credence) services more favorably when exposed to peer review (vs. expert review). Across the three studies, we show that the interaction effects between information source and service type on service evaluation are mediated by consumer confidence. Importantly, we identify the moderating role of information convergence on these effects (Studies 2 and 3). Convergent positive reviews substantiate the interaction effects between information source and service type on service evaluation. Interestingly, when consumers see mixed information from either similar or different sources, negative expert review has greater influence than negative peer review in lowering consumer confidence and their evaluations of both experience and credence services. These findings contribute to the literature on information processing in the services domain and also have significant practical implications on managing consumer expectations of third-party information