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BizReport : Research archives : November 30, 2007

comScore: UGC reviews impact purchasing decisions

All advertisers really need to pay attention to what is being said about their products online. According to a new comScore report nearly one-quarter of consumers are willing to pay more for products or services which garner good online reviews.

by Kristina Knight

The study specifically looked at the service industry - restaurants, hotels, travel and automotive industries.

According to the survey, conducted jointly by comScore and The Kelsey Group, users were willing to pay up to 20% more for services which received "Excellent"/5-Star online ratings than those which received "Good"/4-star online ratings.

“This study underscores the importance of providing not just good, but excellent, service if a business hopes to generate positive consumer reviews which will result in greater sales,” said Brian Jurutka, senior director, comScore Marketing Solutions.

In the restaurant industry, researchers found that 41% of users were willing to make a purchase after viewing a positive online review; for the hotel industry 40% of consumers were willing to make a purchase. Travel (27%) and Automotive (24%) sectors were also heavily impacted by online reviews.

Steve Marshall, research director for The Kelsey Group said, “With such a large percentage of review users subsequently purchasing, it’s vital that local service providers have a positive presence on these review sites.”

Tags: brand management, UGC reviews

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