Does Rich Content Make Online Reviews Better? : An Empirical Study Using a Text Analysis

Rapidly increasing in number and availability, online consumer reviews have become a reliable source of information about products and services that consumers consult prior to making their purchase decisions. However, although each online review has the potential to influence consumers' purchase decision, all reviews are not equally influential. This study examines the impact that the textual content of online reviews has on their perceived helpfulness in the context of the service industry. Using online review data collected from Yelp, we quantify richness of online reviews by measuring meaningfulness and diversity via a text analysis process. Our empirical results show that the review richness significantly influences their perceived helpfulness. Overall, our findings shed light on how the textual content of online reviews influences their perceived helpfulness. This paper also offers significant practical insights and guidelines for online review providers in identifying helpful reviews as well as, for online reviewers, in providing more helpful reviews to others