Measuring the Impact of Product Reviews on Sales

Context

You are asked to propose how to quantify and causally estimate the impact of product review metrics (e.g., average rating, review volume) on sales performance. Assume you have access to product-level daily/weekly sales, traffic, pricing/promotions, inventory, and review data over time.

Task

Outline a concrete analysis plan and/or experiment that:

1. Defines metrics and data required.
2. Estimates associations while discussing correlation vs. causation and time-lag effects.
3. Proposes a causal identification strategy using observational methods (e.g., panel regression, natural experiments) and/or A/B testing.
4. Specifies how to control for confounders and validate results.