Examining the Causality Loop between Online Reviews and Consumer Acquisition – A Granger Causality Study from YouTube

Abstract

A Granger Causality study is conducted to understand the causality loop between online reviews and consumer acquisition in YouTube. This paper aims to refute the long-lasting assumption that online reviews are exogenous to sales. By doing so, this paper posts a challenge in understanding the impact of online reviews on sales. By tracking 75 videos for 64 days, this paper found that negative online reviews drive and reflect on consumer acquisition, but positive online reviews only drive sales. These findings not only suggest caution to scholars that treat online reviews exogenous, but also provide specific implications to practitioners regarding positive and negative online review valence.

Keywords: Comments, YouTube, Clicks, Causality, Review valence, Social media