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The fundamental research question is which aspects of the external environment are most strongly associated with the differential market share between large multinational online retailers and smaller, local retailers in emerging markets. For the purposes of this study, the differential market share refers to the likelihood of having a higher market share for multinational online retailers than for local online retailers.

The theoretical framework of the study is based on PESTLE analysis. This study uses longitudinal country-level archival data and conducts a stepwise logistic regression analysis to investigate the impact of environmental factors.

The results indicate that the effectiveness of law-making bodies and government involvement with information and communications technologies (ICTs) among other factors are significantly associated with a higher market share for multinational online retailers relative to local retailers.

The study examines the impact of certain external factors (i.e. socioeconomic variables and legal environment) on the differential market share between multinational online retailers and local ones. Future research should investigate additional factors such as cultural roles and internal operating dynamics of online retailers. The research emphasizes online retailing. A logical extension of the current study is to examine how the online retailing environment differs from the brick-in-store retailing environment relative to the competition. The current study investigates the differential market share between multinational and local online retailers only in the emerging markets setting. The results may differ if the developed market setting is also considered. We recommend that future research compares the developed markets and emerging markets settings relative to the differential market share between multinational and local online retailers.

Not all improvements in legal institutions are associated with improved market conditions for multinational online retailers. Managers of multinational online retailers must pursue some mitigation strategies to prevent institutional voids in emerging markets. Therefore, adapting the business model by collaborating and establishing relationships with local online retailers is an effective strategy to mitigate institutional voids (Doh et al., 2017; Yang et al., 2012). Moreover, multinational online retailers are recommended to collaborate with local governments to change unfavourable legal conditions (Doh et al., 2017; Boddewyn and Doh, 2011).

The extant literature on online retailing frequently addresses internal company characteristics and consumer behaviour. This study focuses exclusively on environmental factors associated with differential market share. We contribute to the literature on online retailing, retailing strategies and competition dynamics in emerging markets.

This paper aims to investigate the effects of different response options to a negative consumer review. When consumers buy online, they are often confronted with consumer reviews. A negative consumer review on an online shopping website may keep consumers from buying the product. Therefore, negative online consumer reviews are a serious problem for brands.

In an online experiment of 446 participants, different response options towards a negative consumer review on an online shopping website were examined. The experimental data were analysed with linear regression models using product purchase intentions as the outcome variable.

The results indicate that a positive customer review counteracts a negative consumer review more effectively than a positive brand response, whereas brand strength moderates this relationship. Including a reference to an independent, trusted source in a brand or a customer response is only a limited strategy for increasing the effectiveness of a response.

Additional research on other product categories and with subjects other than students is suggested to validate the findings. In future research, multiple degrees of the phrasing’s strength of the reference could be used.

Assuming high quality products, brands should encourage their customers to write reviews. Strong brands can also reassure consumers by responding, whereas weak brands cannot.

This research contributes to the online consumer reviews literature with new insights about the role of brand strength and referencing to an independent, trusted source.