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When Online Reviews Meet Hyperdifferentiation: A Study of the Craft Beer Industry

Clemons, Eric K., Gao, Guodong Gordon, Hitt, Lorin M.·2006·Journal of Management Information Systems

Abstract

We analyze how online reviews are used to evaluate the effectiveness of product differentiation strategies based on the theories of hyperdifferentiation and resonance marketing. Hyperdifferentiation says that firms can now produce almost anything that appeals to consumers and they can manage the complexity of the increasingly diverse product portfolios that result. Resonance marketing says that informed consumers will purchase products that they actually truly want. When consumers become more informed, firms that provide highly differentiated products should experience higher growth rates than firms with less differentiated offerings. We construct measures of product positioning based on online ratings and find supportive evidence using sales data from the craft beer industry. In particular, we find that the variance of ratings and the strength of the most positive quartile of reviews play a significant role in determining which new products grow fastest in the market-place. This supports our expectations for resonance marketing.

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Metadata

Authors
Clemons, E. K., Gao, G. G., & Hitt, L. M.
Venue
Journal of Management Information Systems
Published
2006-10
Volume
23
Issue
2
Pages
149-171
ISSN
  • 0742-1222 (ISSN-L)
  • 1557-928X
OpenAlex
W2169955073
Cited by
827
References
1
FWCI
59.94
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: When Online Reviews Meet Hyperdifferentiation: A Study of the Craft Beer Industry. https://app.cochat.ai/papers/10.2753/mis0742-1222230207
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Clemons, E. K., Gao, G. G., & Hitt, L. M. (2006). When Online Reviews Meet Hyperdifferentiation: A Study of the Craft Beer Industry. Journal of Management Information Systems. https://doi.org/10.2753/mis0742-1222230207

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.