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Study finds online reviews a powerful tool
Do travel and other consumers use online reviews? Yes. Are they willing to pay more for high ratings? Yes.
So says a recent study that found consumers were willing to pay at least 20% more for services receiving “excellent” or 5-star rating opposed to those receiving “good” or 4-star ratings.
“These data show the importance of local service review sites in consumers’ purchase process,” said Steve Marshall, Research Director for The Kelsey Group.
The study focused on examined the impact of consumer-generated reviews on the price consumers were willing to pay for a service delivered offline. The study covered hotels, restaurants, travel and other areas, according to comScore.inc.
The study is based on a survey of more than 2,000 US Internet users in October of 2007.
Nearly one out of every four Internet users (24%) reported using online reviews prior to paying for a service delivered offline. Of those who consulted an online review, 41% of restaurant reviewers subsequently visited a restaurant, while 40% of hotel reviewers subsequently stayed at a hotel.
More than three-quarters of review users in nearly every category reported that the review had a significant influence on their purchase, with hotels ranking the highest (87%).
Were the reviews accurate? The study found that 97% of those surveyed who said they made a purchase based on an online review said yes.
Review users also noted that reviews generated by fellow consumers had a greater influence than those generated by professionals.
“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.
Report by David Wilkening
David
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