The impact of mandatory disclosure on rewarding online reviews based on S-O-R theory

Purpose Up to 89.1% of consumers have changed their decisions due to the influence of online reviews. In order to increase the number of reviews, some websites and platforms have adopted feedback incentives. Research shows that offering review incentives does increase the likelihood of consumers writing reviews. However, the review reward system also brings some problems. Consumers may doubt the authenticity of product reviews that are incentivized by rewards, believing that reviewers are only writing reviews for personal gain, which has a negative impact on the credibility of the reviews. To address this issue, this study proposes a mechanism for mandatory disclosure of review incentives as research demonstrates that transparent online communication of a platform’s efforts can substantially boost review helpfulness restore trust in online platforms, and even improve purchase intentions. Design/methodology/approach This study applies the S-O-R (Stimulus-Organism-Response) theoretical framework and utilizes a simulated situational questionnaire to investigate the impact of online reviews on consumers' emotional and behavioral responses within the context of a mandatory disclosure review reward system. The model identifies four key constructs: review quality as the Stimulus, review credibility and review usefulness as the Organism, and purchase intention as the Response. Data were collected through the questionnaire and subsequently analyzed to understand these relationships. Findings The results show that review quality has a significant positive impact on review credibility, review usefulness and purchase intention. Similarly, review credibility and review usefulness also have significant positive impacts on purchase intention. Originality/value To mitigate the potential negative effects of review reward systems, this study introduces a mandatory disclosure of the review reward and examines its impact using a simulated situational questionnaire. The study hypothesizes that mandatory disclosure of rewarded reviews enables consumers to identify these reviews, which may, in turn, enhance their purchase intentions.