In search of information

Financial markets might not be as informationally efficient as we would have hoped: market prices do not incorporate immediately all the available information. In such a world, investors strongly rely on financial communication to resolve their uncertainty about firm performances. On the other hand, other investors seem to possess private information, which is gradually diffused across the market. Much evidence is consistent with this view of the world, suggesting that the market is efficient up to information discrepancies.

Online reviews are omnipresent in our lives. Which hotel to stay in, even which doctor to visit - most consumers routinely check reviews before taking purchase decisions. Companies have become well aware of the relevance of online reviews. Yet, most managers have a vague understanding of how their consumers process information on online review websites. We challenge this assumption and look at different patterns that consumers display when processing information on online review websites. Insights can help firms and website designers to fine-tune strategic efforts relating to reviews.