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Web of Proceedings - Francis Academic Press

Enterprise Product Information Disclosure Strategy Considering Consumer Network Reviews

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DOI: 10.25236/ISMEEM.2019.103

Author(s)

Kunya Wang, Xinlei Chen, Tian Li

Corresponding Author

Kunya Wang

Abstract

Due to the information asymmetry between enterprises and consumers, enterprises can influence consumers' decision by controlling the disclosure of product information. At the same time, with the advent of the Internet Age, the Internet has become an important platform for people to communicate. Online commentary also has a significant impact on consumers' purchasing decisions. This paper constructs a model hypothesis for the information disclosure of products from the two dimensions of quality and matching of disclosure information, and considers the enterprise product information disclosure strategy of consumer network reviews. The effect function of the product quality on the consumer utility and the utility function of the matching degree for the consumer are respectively established, and then the two functions are compared and compared. The study found that for niche products, the mismatch cost is large, and the matching degree information should be selected. For mainstream products, the mismatch cost is small, and the quality information should be disclosed.

Keywords

Network commentary; quality; matching degree; information disclosure