To study the research questions mentioned in the Introduction Section, we used PHP, APACHE, MSSQL Server, and other software applications to build an Internet spider. PHP is used to access and save Web pages, and then parse the pages to capture the data points of interest. APACHE is used as a server, and MSSQL Server is used to manage and wrangle the data. Many other software applications such as Python, MySQL, and others can also be used to build Internet spiders to collect online data. The use of Internet spiders to harvest data from eBay is well-established in the business literature [
28,
29,
30,
31]. We randomly selected thousands of sellers and collected their auction listings on eBay. Then, we collected feedback and comments posted by buyers. Among the millions of feedback instances of all kinds (positive, neutral, and negative), our filtering yielded 43,404 instances of negative feedback with associated text comments posted by buyers for this study. The dataset is summarized in
Table 1.
3.1. What Reasons Trigger Buyers to Post Negative Ratings?
The process of buyers posting their negative feedback ratings is described in
Figure 1 [
24]. After sellers and buyers make a deal on a transaction, sellers will fulfill the deal through actions such as product packing, shipping, insurance, and more. However, many issues can occur, such as late shipping, shipping the wrong product, poor communication, bad customer service, and even sellers’ fraudulence. These issues bring about buyers’ unhappiness, dissatisfaction, and even anger, which results in their choice to post negative ratings. Buyers might also include reasons to explain their choice of posting negative ratings. Some buyers also express their anger, warnings, negative opinions, hatred, allegations, or curses. We collectively call these actions customers’ denouncements against sellers. It is worth mentioning that the reasons used to justify buyers’ ratings are different from customers’ denouncements against sellers. Denouncements are even more concerning to sellers because buyers who post seller denouncements are likely to abstain from future transactions with the sellers they denounce, and their allegations negatively impact the sellers’ images and reputations [
26,
32,
33].
Existing studies [
11,
24] have identified several key reasons associated with negative feedback ratings: items not as described, shipping issues (e.g., wrong shipment, late shipping, no shipping, and shipping damage), poor customer service, bad communication, payment issues (e.g., no refund, credit card rejection), product issues (e.g., wrong items, damaged item, used item instead of new, and no accessories), and fraud. However, these studies have certain limitations, which motivated us to conduct the current study. The limitations can be summarized as follows: (1) The feedback rating datasets used in these two studies are mainly from specific products. Ref. [
11] used feedback ratings from Sony PlayStation Consoles, and [
24] used the ratings from Sony PlayStation, Xbox, and Nintendo game consoles, and Texas Instruments calculators. For this study, we collected feedback data from eBay covering a variety of product categories. (2) The sample size of negative feedback ratings in the two previous studies was very small. Ref. [
11] used 381 negative ratings, and [
24] used 1132 negative ratings. In this study, we use a large dataset of more than 43,000 negative ratings, which could be used to generate more robust insights about negative ratings. (3) The two previous studies focused on identifying the main reasons for posting negative ratings, but neither included in-depth analysis to further categorize the reasons. In this study, we categorize the reasons for negative ratings into three categories, which we introduce in detail later. (4) The two previous studies did not address the association relationships among the reasons for negative ratings. For example, a majority of buyers who complain about product damage also complain about shipping. In this study, we investigate the associations between the reasons for negative ratings. (5) The two previous studies did not provide recommendations to sellers on how to avoid receiving negative ratings. We provide recommendations in this study. (6) The two previous studies did not address the sentiments embedded in textual comments posted by buyers. We address this issue in this study. (7) The two previous studies did not study buyers’ denouncements against sellers. This study explores this topic in the context of online auctions.
Refs. [
11,
24], because of their small sample sizes, performed qualitative analysis in which they manually processed the textual comments associated with the negative ratings. The current study utilizes both text mining and sentiment analysis to efficiently and effectively process a much larger sample of textual comments. In the literature, there is support for the use of both text mining [
34,
35,
36] and sentiment analysis [
37,
38,
39] to conduct qualitative or quasi-qualitative studies. This kind of qualitative analysis with text or sentiment mining uses computer algorithms instead of human beings to read, analyze, and identify sentiment or patterns in the textual comments. Along with the trend of analyzing larger datasets, the applications of text mining and sentiment analysis are expected to continue to grow.
Our study data consist of 43,404 instances of negative feedback with associated text comments, which were collected with computer spiders from eBay. To more efficiently and effectively identify the issues buyers mention most frequently in their textual comments and to investigate the sentiment expressed in the comments, we used two analytics tools: text mining and sentiment analysis. To identify the common topics that buyers frequently mention in their comments, we mined the most frequently used common words and sentiment words. The combination of common word and sentiment analyses produces more solid clues from textual comments and helps to determine the most common reasons for buyers posting negative ratings. For the text mining, we used R along with the R package
tm. For the sentiment analysis, we used R along with the R package SentimentR and the lexicon
BING. After we analyzed the most frequently used words or phrases, we divided the reasons for posting negative feedback ratings into seven categories: communication (comm), claimed fraud victim (victim), shipping delay (shipping), customer service (service), product damage or defect (defect), refund (refund), and product packing (pack).
Figure 2 shows the flowchart for the data analysis process.
Of these reasons for negative ratings, we understand that fraudulence is a sellers’ purposeful malicious behavior which is intended to cheat buyers in order to gain a financial benefit. Of the remaining six reasons, some of them are likely under the control of sellers: customer service, communication, and refund. The other reasons are likely not directly under the control of sellers: shipping logistics, package damage, and product damage/defect. We rank the reasons from highest frequency to lowest frequency in
Figure 3.
We can see that the most frequent reason for buyers posting negative ratings is communication issues, which sellers can improve themselves. The second most frequent reason is the shipment. If the shipment delay is the fault of the sellers, the sellers can improve this to avoid receiving negative feedback. If the shipment delay is the fault of the carrier, sellers need to choose different carriers with higher-quality service. We offer our suggestions for each reason in
Table 2. Because fraudulence is a crime, eBay as a platform provider needs to work to fight against it. Regular sellers need to work with eBay to fight against fraud and will benefit from cleaning cheaters out of the auction platform. As for product defects, sellers need to accurately describe the products with photos or videos, so that buyers have more accurate expectations of the products. This effort will reduce issues of information asymmetry. If defects are due to shipment damage, sellers may need to choose a better carrier. For refund requests, sellers need to respond promptly to buyers, and refund the buyer if their request is legitimate and justified. For customer service, sellers need to improve it by all means. For packing issues, sellers need to use solid and secure packaging. If package damage is due to abnormal logistics, sellers may need to choose a better carrier. It is worth mentioning that auction fraud is still a big issue, as 15% of the negative ratings in our study dataset relate to malicious seller behavior. It goes without saying that sellers should maintain integrity and honesty when doing business with buyers and avoid any fraudulent behavior.
Above, we have analyzed each of the main reasons for buyers to give sellers a negative rating. In fact, for one negative rating there might be several reasons mentioned by buyers in their text comments. We list the frequency of the number of reasons mentioned for one rating in
Figure 4. The figure shows that over half of total ratings have just one reason provided in the text comments.
It is very interesting to investigate the distribution of reasons for the negative ratings with only one reason. That is, among the negative ratings that only have one reason mentioned in the textual comments, what does the reason distribution look like?
Table 3 shows this distribution. Issues related to shipping and communication are the most common reasons that trigger buyers to post negative ratings where the buyer only mentions on reason in their textual comments.
In a similar fashion, we investigate negative ratings with only two reasons mentioned in the textual comments. The two-reason negative ratings made up 15% of the total negative ratings.
Table 4 lists the two-reason combinations along with the number of cases represented by each pair and the percentage of total negative ratings. The data in the table suggest that many shipping issues are related to communications, refunds, and customer service. Communication issues are most frequently related to customer service, shipping, and refund. The victim reason most commonly co-occurs with communication, refund, and shipping, suggesting that many claimed fraud victims attempt to communicate with the respective seller for refunds or shipment concerns. For refund, sellers have mainly communication and shipment issues. Defect occurs most frequently with product packing, communications, and shipment. It is reasonable to say that product defects might be related to packing and shipment. The service reason most frequently co-occurs with communications with sellers, shipping issues, and buyer-claimed fraud victim issues.
3.2. What Factors Drive Buyers to Denounce Sellers?
Why do customers complain or not complain? The current literature shows that customer experience [
40], customer characteristics, and association with relevant situational factors play an important role in initializing customers’ complaints [
41,
42]. It was estimated that the correlation between customer complaints and customer satisfaction is negative, and a one-unit increase in customer satisfaction results in a 0.76-unit decrease in customer complaints [
43]. Compared with off-online shopping, customers are more dissatisfaction-sensitive when purchasing online [
44]. As we stated previously, if buyers are not satisfied with transactions, they are more likely to post a negative rating, and they may also describe the reasons or explanations in textual comments. These textual comments help both sellers and new buyers understand the issues behind negative ratings. In addition, some buyers become angered or frustrated enough to explicitly denounce sellers [
25,
45]. In the dataset used in this study, 25.5% of buyers not only list the reasons or explanations for their negative rating of the seller, but also further explicitly denounce the seller. These denouncements have more serious impacts on potential buyers than common WOMs (words of mouth) [
26,
32,
33]. Therefore, denouncement is more worrisome to sellers who want to build their reputations and customer relationships at eBay.
In this section, we investigate the factors that lead buyers to denounce sellers. We classify the reasons for posting negative ratings into three categories: (1) sellers’ malicious fraudulence; (2) factors likely under the control of the sellers, such as communication, customer service, and honoring refund requests; (3) factors not likely under the control of the sellers, such as shipping logistic delay, shipping product damage, and improper packaging. The first category, seller’s fraud, would result in the buyer’s loss, which would typically trigger the buyer’s anger and strong denouncements of the seller [
21,
46,
47]. Some victims might file a complaint or report fraudulence to eBay. Some frauds with a significant loss to victims might lead to the cheaters’ eBay membership suspension and serious crime investigations [
47,
48]. Combining these studies and our research questions, we list our first hypothesis as follows:
Hypothesis 1:
Buyers who claimed themselves fraud victims are more likely to denounce sellers.
An important assumption in modern economic theory is that consumers are rational [
49]. Generally speaking, the assumption of consumer rationality assumes that people seek to maximize their own utility by making optimal choices based on all the information available to them. Rational consumers can discern the main reasons or causes for the issues in their complaints. If service failure happens, for example, customers do not tolerate it and they start to complain, even though sellers try to change customers’ decision control [
50]. It was observed that customer complaints directed towards employees might trigger employees’ anger and even make buyers estranged [
51]. In this study, the second category of reasons for complaints consists of issues that are likely caused by behavior that is under the seller’s control. For example, sellers can control the timing of their communications with buyers. So, if there is a delay in communication, it is likely to be caused by the seller’s behavior. For the issues in this category, rational buyers are inclined to blame the seller because the issue was one over which the seller had control. Thus, buyers will be more likely to denounce sellers [
52]. This leads to the following hypothesis:
Hypothesis 2:
The factors likely under the control of sellers are more likely to drive buyers to denounce sellers.
Existing studies show that even though customers complain, sellers still can achieve a recovery–loyalty relationship if they properly manage customers’ expectations and satisfaction [
53,
54,
55,
56,
57]. Even more, sellers might have the opportunity to turn complaining customers into loyal customers if they spend substantial resources responding to customer complaints [
58]. This implies that not all the complainers would denounce sellers. For the third category of complaint reasons in this study, shipping delay and damage are likely to be attributed to the carrier, as they are unlikely to be directly under the control of the seller. Sellers sometime ship products a bit late, but buyers might still feel it is a carrier problem. For the issues in this category, even though buyers give a negative rating to sellers, they might not strongly denounce sellers with rationality [
59,
60]. Thus, we have the following hypothesis:
Hypothesis 3:
The factors not likely under the control of sellers are less likely to drive buyers to denounce sellers.
Ref. [
61] identified five categories of negative emotions: shame, sadness, fear, anger and frustration. Among them, the negative emotion of frustration is the strongest driver for complaint behavior towards sellers. Customers’ frustration might lead to them rejecting the loyalty program, and even rejecting the firms [
62]. Ref. [
63] studied three types of negative emotions, anger, fear, and sadness, and showed they have impacts on other reviewers. Ref. [
64] showed that consumer review sentiment correlates positively with consumer online review ratings. Stronger negative sentiments more likely lead to stronger negative ratings. Ref. [
65] found that the types of feedback ratings (+, 0, and −) are consistent with the sentiments (positive, neutral, and negative) embedded in the textual comments on eBay. In the context of cyberspace, the sentiments embedded in textual comments can be taken as an important clue to explain buyers’ denouncements against sellers. Following these theoretical considerations, we set up the following hypothesis:
Hypothesis 4:
Buyers who have more negative sentiments are more likely to denounce sellers.
The research framework is depicted in
Figure 5. To proceed, we needed to obtain sentiment scores from the text comments for each negative rating. Sentiment analysis can be used to retrieve sentiments from text comments posted by buyers. Sentiment analysis (also called opinion mining) is a text mining technique to process language-related content. The authors of [
66,
67,
68] pointed out that sentiment analysis could help managers understand consumers and develop effective marketing strategies and decision-making policies. Sentiment analysis is an important tool for tracing customers’ or investors’ sentiments, which may significantly impact product sales and stock markets. As the volume of user-generated content rapidly increases, with big data available on social media, sentiment analysis has become popular in the fields of sales, marketing, hospitality management, and financial investment. Computer sentiment applications can produce accurate sentiment classifications at high efficiency as they can handle big data [
69]. Ref. [
70] conducted social media analytics using Twitter data on cruise travel. Ref. [
71] used sentiment changes to predict movie box-office revenues. Ref. [
72] used Twitter sentiment analysis to capture visitors’ sentiments on resorts.
There are two ways to conduct sentiment analysis: corpus-based and lexicon-based [
73]. A corpus-based analysis uses the texts/corpora representing a paragraph to determine the sentiment types (negative, neutral, or positive) derived from text contents. A lexicon-based method uses an existing lexicon or dictionary to determine text contents’ sentiment types (negative, neutral, or positive). Ref. [
74] showed that the two approaches produce similar accuracy in some cases. There are different lexicon methods available for sentiment analysis. In this study, we use the R package SentimentR to assign sentiment scores to comments associated with each rating. SentimentR is lexicon-based, runs at a fast speed, and handles various sentiment analytical challenges such as negations well. Because of these strengths, SentimentR has been utilized for sentiment analysis in published business research [
75,
76,
77].
Table 5 lists a few examples of negative ratings with their sentiment scores. For example, for the first row, the textual comment associated with the negative rating has a sentiment score of −0.124.
To explore the relationship between denouncements and the proposed factors, we conducted a correlation coefficient analysis, as listed in
Table 6. The coefficient between denouncements and the variable victim is positive, which suggests support for H1. That is, buyers who claimed themselves fraud victims are more likely to denounce sellers. The coefficients between denouncements and the variables refund and comm are negative, but the coefficient between denouncements and service is positive, suggesting the ambiguity of H2: the factors likely under the control of sellers may or may not motivate buyers to denounce sellers. The coefficients between denouncements and the variables pack, defect, and shipping are all negative. This suggests support for H3. That is, the factors not likely under the control of sellers are less likely to motivate buyers to denounce sellers. The coefficient between denouncements and sentiment is negative. This suggests support for H4. That is, buyers who have strong negative sentiment are more likely to denounce sellers.
The correlation coefficient analysis offers preliminary results. More formally, we test the hypotheses with logistic regression. The dependent variable is the binary variable denouncement (0 for non-denouncement, and 1 for denouncement), and the independent variables are the claimed fraud victim, the factors likely under the control of sellers, the factors not likely under the control of sellers, and buyers’ sentiments. The regression outcomes are listed in
Table 7.
The coefficient of victim is positive and statistically significant, which supports H1. This means if buyers claim themselves fraud victims, they are more likely to denounce sellers. For the category of variables likely under control of sellers, the coefficients of comm and refund are not significantly positive. But the coefficient of service is significantly positive. This suggests support for H2; that is, the factors likely under the control of sellers are more likely to motivate buyers to denounce sellers. For the category of variables not likely under control of sellers, the coefficients of shipping, pack, and defect are negative. This supports H3. That is, the factors that are not likely under the control of sellers are less likely to motivate buyers to denounce sellers. The coefficient of sentiment is negative, which means when one buyer’s sentiment becomes more negative, the likelihood of buyers’ denouncements against sellers becomes higher. This result supports H4. Briefly speaking, the testing outcomes from the logistic regression are the same as those from the correlation analysis.