In case we needed more evidence that consumer reviews are now a critical and highly influential part of the online shopping process, two studies have come along to affirm that proposition once again.
The first is from Cone and based on an online survey of 1,054 US adults. It seeks to measure trust and influence of various information resources and shows, among other things, that consumers rely heavily on reviews to validate information they’ve received from elsewhere. In particular negative reviews can dissuade someone from making a purchase: 80% say that “Negative information I’ve read online has made me change my mind about purchasing a product or service recommended to me.”
The other survey I refer to is from the e-Tailing Group (sponsored by PowerReviews). The data from this survey are fairly extensive and seek to reflect the relative influence of different kinds of content and social information on consumer purchase decisions. Once again reviews from other consumers comes out as the most influential type of content:
While these findings may seem obvious at this point their implications are fairly radical: traditional advertising and brand messaging is going to be almost completely ineffective if the products or services in question are not intrinsically worthy. That means millions and maybe even billions of dollars will be wasted on marketing if consumers don’t agree that the products are deserving.
It argues that companies need to invest in product quality and service rather than marketing. However there are companies like Apple that offer great products and spend millions on branding and advertising.
September 2nd, 2011 at 4:25 pm
We all know the power of reviews. I wonder what strategies companies might be using to influence reviews http://www.thepapapost.com/amazing-reviews/
September 2nd, 2011 at 5:06 pm
Review solicitation is obviously a big deal
September 2nd, 2011 at 5:29 pm
[...] New Studies on Impact of Reviews September 2, 2011 By Ted Paff Tweet Greg Sterling just wrote a blog: Two Studies Affirm Power of Reviews. [...]
September 2nd, 2011 at 9:25 pm
what about the power of blog comments, are those worth something also? I wonder?
September 2nd, 2011 at 9:27 pm
Blogs do play a role but not explored in this survey. They might fall into the realm of experts, which do carry weight, as in gadget blogs.
September 2nd, 2011 at 9:55 pm
In my experience blogs bring a personal touch … almost like personal recommendation in case of mom blogs.
September 2nd, 2011 at 9:57 pm
Yes, the mom blogs may be especially influential.
September 5th, 2011 at 11:59 pm
Here I go again
We shouldn’t need to plow through endless reviews to validate recommendations – at least not reviews from EVERYONE. We should instead get personalized recommendations (and reviews) based only on the preferences of other users with similar tastes to our own. The people that like (and dislike) the same restaurants you like (and dislike) really LOVE these restaurants. Ditto books, movies and everything else under the sun. Think of it as a trust filter without the social connection. It baffles me that neither Google nor Facebook haven’t delivered these kinds of recommendations systems. Whoever nails this concept will become the new gateway for commercial search.
September 6th, 2011 at 12:00 am
Btw, this approach is fraud-proof.
September 6th, 2011 at 2:33 pm
Facebook Connect offers that functionality to third parties (although friends aren’t necessarily similar). Bizzy is trying to do this and Alfred in a different way. Google is incrementally rolling out recommendations. So people are — and have been — working on it. Problem is: it’s hard to build a compelling experience and get critical mass. This is why Yelp never did “friend recommendations” until Connect came along.
September 7th, 2011 at 12:21 am
Too bad this study didn’t include the power of reviews written about the actual merchant you’re buying from. Studies by Forrester show that the reviews I speak of have a powerful effect on peoples buying decisions when it comes to th store they choose.
September 7th, 2011 at 12:38 am
You’re talking about verified reviews?
September 7th, 2011 at 12:51 am
I’m talking about reviews like those found on resellerratings.com. Reviews about the service provided by the STORE where you are considering purchasing the product. They too are an invaluable tool used by people when considering where to buy the products they have researched.
September 7th, 2011 at 12:54 am
Sure. Was just trying to determine if you were making a distinction between verified vs. unverified reviews.
September 7th, 2011 at 1:08 am
Thanks for the response Greg. There was a NY Times article recently about how lots of companies have been springing up offering merchants and restaurants fake reviews for $5 each. Unverified reviews are useless. There are some Cornell researchers working on an algorithm that they claim can distinguish between authentic and fake reviews. I don’t think this can be done. Companies like Amazon have it right. They only allow reviews from people they know made a purchase. So to answer your question, it is verified reviews I speak of as I don’t think anyone should put any weight behind those that aren’t.. Merchants are well aware of the significance of reviews and they game whatever sites they can.
September 7th, 2011 at 1:11 am
This is a complex and important topic. Another post to come
September 7th, 2011 at 1:13 am
This is a complex and important topic. Another post to come. I’m familiar with the article
September 8th, 2011 at 2:28 am
[...] since there is no item being sold right? Not so it seems. Companies (big and small) understand the power of reviews. Heck, even my fridge delivery guys rushes through the delivery spiel but takes the time to slowly [...]
September 11th, 2011 at 8:13 am
Interesting stuff, indeed.
It’s clear that reviews impact on rankings, conversions & buyers behavior is increasing. It seems that the reviews spam is increasing in a faster pace, though..
I can’t see how an algorithm can enforce a reviews spam (i know that article too), Also i can’t see how any directory (IYP’s, CityGrid, Google Maps, etc..) can stop the reviews spam. Maybe a mega spam, yes but not a tactical, more delicate one.
Most directories have no interest preventing reviews spam as those reviews are being spread out to other directories & by that everyone get more info & traffic, some are doing completely nothing about preventing reviews spam (Yahoo Local leads those Wild Wild Wild West directories- http://local.yahoo.com/results;_ylt=Am3XQLmXmpIDuuD5Io2QJziHNcIF;_ylv=3?p=Locksmith&csz=Houston%2C+TX).
Another nice reinforcement to the reviews impact on a biz, you can read in this interesting case study- http://www.optilocal.org/google-places-reviews/case-study-how-important-the-google-places-5-stars-are/
September 13th, 2011 at 5:43 pm
[...] reviews strategy has always included getting reviews about your business in many places. Why? Customer reviews are the single most impactful piece of information that a potential customer uses when deciding to choose your business or your competitor’s [...]
September 23rd, 2011 at 12:13 am
[...] The thing about reviews is consumers actually seek them out as a resource. And, according to these 2 studies on the impact of customer reviews, no other single piece of content online has a greater impact on a purchase [...]
December 1st, 2011 at 8:40 am
What if you can write your own reviews yourself?
at google maps, yelp and insider pages
actually you can, http://www.placesmaster.com are selling reviews posting service, they even offers the first review for free, you can write your own reviews or use their templates, they will post them back to your listing
July 4th, 2012 at 11:13 pm
[...] you never know when one negative review will hurt you – research shows that reading negative information online may deter someone from purchasing a product or service recommended to them, so it’s important to stay in the know when it comes to your reputation. And, [...]
July 5th, 2012 at 11:20 am
[...] you never know when one negative review will hurt you – research shows that reading negative information online may deter someone from purchasing a product or service recommended to them, so it’s important to stay in the know when it comes to your reputation. And, [...]
March 7th, 2013 at 3:11 am
[...] to one’s success, maintaining a positive reputation is essential. Just as one review with a negative tone can destroy a company quickly, the same goes for job seekers. Here are a few tips to being [...]