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The Effects of Consumer
Reviews Driving
Purchasing Decisions
By: Casey Kuktelionis
Consumer Review Influence
 70% of people trust
online customer reviews.
 82% of customers think
consumer reviews are
valuable or very valuable.
 Consumer reviews crush
editorial reviews by a 3-1
margin.
Effects on Buying Behavior
 Harvard Business study found that a one star increase on
yelp rating meant a 5-9% increase in restaurant revenue.
Consumer Trust & Fake Reviews
 Shoppers trust reviews on
Amazon (84%) and Best
Buy (75%) more than
consumer reports (72%).
 80% of consumers say
they have been concerned
about a review’s
authenticity.
 The NY Times has
reported vendors buy 5
star reviews.
Fake Reviews Cont.
Tips to discover fake
reviews:
 Too many 5 stars
 Too expressive
 Marketing hype
 No reviewer history
 Too much, too soon
• Approximately one-third of
online consumer reviews are
written by marketers or
retailers, not real consumers.
• Consumers will read on
average 11 reviews [to weed
out fakes] before making a
purchase decision.
Good Customer Service Leads to Good
Reviews
 Nearly one third of
consumers have
complained about
poor service using
social networking
sites or third party
review sites.
 Shoppers say 31%
of a product’s
reviews must be
negative for them
to doubt the
product’s quality.
The Bottom Line
So what does this mean for PR
practitioners?
•Treat customer reviews as other social networking
opportunities.
• A bad review has the potential to go viral over night,
tarnishing your brand.
• It is estimated that businesses spent $1.6 billion managing
their online reputations in 2011.
• Learn how to respond to negative reviews.
• We are responsible for protecting our consumers and the
brand from fake reviews.
• Identify reviews with the potential to have the most impact,
and use them to the organizations advantage.
Components of a Good Review
What I Recommend…
 Organizations implement monitoring
technology and software.
 PR, advertising, and marketing personnel
incorporate consumer reviews into their
strategic plans.
 All organizations support attempts to
combat fake reviews of their products.
 Organizations make customer service a
focus to improve reviews.
ISSUEPRES

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ISSUEPRES

  • 1. The Effects of Consumer Reviews Driving Purchasing Decisions By: Casey Kuktelionis
  • 2. Consumer Review Influence  70% of people trust online customer reviews.  82% of customers think consumer reviews are valuable or very valuable.  Consumer reviews crush editorial reviews by a 3-1 margin.
  • 3. Effects on Buying Behavior  Harvard Business study found that a one star increase on yelp rating meant a 5-9% increase in restaurant revenue.
  • 4. Consumer Trust & Fake Reviews  Shoppers trust reviews on Amazon (84%) and Best Buy (75%) more than consumer reports (72%).  80% of consumers say they have been concerned about a review’s authenticity.  The NY Times has reported vendors buy 5 star reviews.
  • 5. Fake Reviews Cont. Tips to discover fake reviews:  Too many 5 stars  Too expressive  Marketing hype  No reviewer history  Too much, too soon • Approximately one-third of online consumer reviews are written by marketers or retailers, not real consumers. • Consumers will read on average 11 reviews [to weed out fakes] before making a purchase decision.
  • 6. Good Customer Service Leads to Good Reviews  Nearly one third of consumers have complained about poor service using social networking sites or third party review sites.  Shoppers say 31% of a product’s reviews must be negative for them to doubt the product’s quality.
  • 8. So what does this mean for PR practitioners? •Treat customer reviews as other social networking opportunities. • A bad review has the potential to go viral over night, tarnishing your brand. • It is estimated that businesses spent $1.6 billion managing their online reputations in 2011. • Learn how to respond to negative reviews. • We are responsible for protecting our consumers and the brand from fake reviews. • Identify reviews with the potential to have the most impact, and use them to the organizations advantage.
  • 9. Components of a Good Review
  • 10. What I Recommend…  Organizations implement monitoring technology and software.  PR, advertising, and marketing personnel incorporate consumer reviews into their strategic plans.  All organizations support attempts to combat fake reviews of their products.  Organizations make customer service a focus to improve reviews.