Can We Really Trust Online Reviews?
By Stacey Vogler
Before your most recent online purchase, did you check out what other customers had to say about the product before buying? I know I did. Today’s online shopper can see reviews of virtually every product and service available, from books to hotels to extended service contracts.
- It turns out that a high percentage of positive reviews are either fabricated or written by consumers who have been influenced with an incentive. Think about the reviews your customers see on your e-commerce site and how those ratings – real or not – reflect on you.
Consumers take these ratings into consideration before making a purchase decision because of the implied unbiased, real-world nature of the information. In fact, according to the 2012 Local Consumer Review Study, a whopping 72% of consumers surveyed said they trust online reviews as much as personal recommendations!
But how much faith should we put in these reviews, especially the extremely positive “5 Star” ratings?
It turns out that a high percentage of positive reviews are either fabricated or written by consumers who have been influenced with a discounted price or other incentive. As this NY Times story details, countless others are penned by hired guns paid to churn out dozens of positive reviews each day.
The problem is widespread; data mining expert Bing Liu estimates that one-third of all online reviews are fake.“The wheels of online commerce run on positive reviews,” Liu told the New York Times. “But almost no one wants to write five-star reviews, so many of them have to be created.”
According to this NPR story, the problem has even drawn the attention of the Federal Trade Commission and inspired academic research into spotting fake reviews. Think about the reviews your customers see on your e-commerce site and how those ratings – real or not – reflect on you.
Reviews and ratings are powerful tools that help customers make educated choices, but they can also be a misleading form of advertising. So ask questions, be skeptical, and ensure any review you take seriously – or allow your customer to take seriously – is a real one.
In the rapidly changing business environment we face today, retailers, manufacturers and dealerships are looking for creative ways to stay current, anticipate change and extend the resources they already have. Join the Extended View discussion to talk about the future of your industry and how protection programs and services can help you visualize a path to an expanded future. Assurant Solutions is one of the world's leading companies in the extended protection service industry. Through Extended View, executives Stacey, Keith and Joe offer insight, data, and dialog designed to keep you informed about extended service contracts - how they work and what they can do for your business now and in the future.
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About The Authors
President
Extended Protection Solutions
In his role as President of the Extended Protection Solutions business at Assurant Solutions, Joe focuses on building strong client and consumer relationships and imagining the future of service protection. He serves on the CEA’s Board of Industry Leaders, an organization focused on growing the consumer electronics industry. Joe is a down-to-earth guy, enjoys sports, and spending time with his wife, two kids and his Chihuahua, Bruiser.
Senior Vice President
Extended Protection Solutions
Jeff’s service contract background includes high ranking sales and marketing positions both domestically and internationally, including stints leading our business development efforts in the U.S. and serving as Chief Marketing Officer for our European business – which is good, because Jeff leads the teams responsible for taking care of our clients and bringing on new ones. He believes that our number one priority is taking care of our clients and his passion permeates the entire organization. Jeff and the family are happy to be back in the States, but miss the good friends they made across the pond.
Vice President
Marketing
Stacey’s professional background includes positions in marketing, advertising and media buying. She is passionate about discovering new ways to appeal to today’s mobile-enabled, modern consumer. At work, Stacey manages an active staff of marketers, product managers, creatives, e-commerce and research experts. At home, she and her husband get a workout chasing their three-year old son and their jack russell terrier, Coee. Stacey is a self-described "wanna-be" interior designer and watches far too much HGTV.