Be careful what you pay for: the effect of performance contingent incentives on online product reviews

Abstract

Purpose This research investigates how performance-contingent incentivization schemes affect online review contributions. It explores the interplay between financial incentives, prosocial reinforcement (social versus reciprocal exchange) and reviewer experience. Design/methodology/approach The research conducts a field study in collaboration with a major North American online retailer to evaluate customer review behavior. Findings Reviewer experience moderates the effect of performance-contingent incentives on review decisions and length. First-time (vs experienced) reviewers see significant improvements in both review decisions and length with performance-contingent incentives. Additionally, because performance-contingent incentives reinforce reciprocal exchange, introducing reciprocal exchange reinforcement through messaging increases the level of effort but reduces review decisions. The optimal strategy depends on the platform's proportion of first-time reviewers and the retailer's specific review outcomes. Originality/value This work identifies reviewer experience and prosocial framing as critical boundary conditions for the effectiveness of performance-contingent incentives.