Sellers' online ratings can deceive consumers, impacting product quality and prices.
The article explores how sellers can influence consumers' perceptions of product quality through online ratings. It shows that sellers adjust their quality claims based on consumers' experience levels and the strength of the reference effect. When only naive consumers are present, low-quality sellers claim high quality, while high-quality sellers understate quality. With experienced consumers, sellers aim for moderate quality claims. In mixed consumer scenarios, low-quality sellers aim for moderate quality to cater to both types, while high-quality sellers adjust their claims based on the reference effect.