| It looks like the recent economic crisis changed | | | | determine whether a brand is included in the |
| online shoppers' mindsets about how to shop, | | | | consideration set of online shoppers. The |
| where to shop and what to purchase. According | | | | information in customer's ratings and reviews can |
| to a survey from PowerReviews, online shoppers | | | | buying decision. Also, positive reviews improve the |
| are spending more time on reading reviews | | | | attitude of customers towards products. Online |
| before purchases these days. 64 Percent of | | | | reviews help your products find a place in |
| shoppers say they spend at least 10 minutes | | | | consumers' consideration set. |
| reading product reviews before making a | | | | Reassurance |
| purchase, up from 50 percent in 2007. The same | | | | The online reviews and testimonials at online |
| report stated that 33 percent of shoppers spend | | | | retailing website provide reassurance to the new |
| half an hour or more on reviews, up from 18 | | | | customers that the product stands for |
| percent in 2007. These statistics clearly show the | | | | professionalism, quality, credibility, and security. |
| importance of online reviews. | | | | Reviews by previous customers reassure the |
| Advantages of monitoring online reviews | | | | potential customers that it is safe to deal. Online |
| Online reviews are valued features and play a key | | | | reviews also increase conversion rates as they |
| role in influencing the customer's buying decision. | | | | increase trust and confidence among first time |
| Online reviews are sought after by customers | | | | visitors. Existing and new customers will confide |
| using Internet at every stage of buying process, | | | | the online retailer which eventually increase sales. |
| as they offer existing customer experiences on | | | | Social media sites yet to capture consumer trust |
| models, services, policies etc. It is important to | | | | The PowerReviews survey also shows that social |
| include online reviews and testimonials in websites | | | | media sites, including Facebook are yet to capture |
| as they help in retaining the existing customers | | | | consumer trust. The top three destinations for |
| and builds initial trust among potential clients. Online | | | | reviews were general retailer web sites (65 |
| reviews positively impact the sales by increasing | | | | percent), followed by brand manufacturer sites |
| the confidence among both existing and potential | | | | (58 percent), (53 percent), review sites (37 |
| customers. | | | | percent), specialty print publications (27 percent) |
| Credibility | | | | and specialty or enthusiast sites (15 percent). Only |
| Potential customers perceive online reviews as | | | | 6 percent of survey respondents said that social |
| authentic and genuine opinions from other | | | | media sites were their top destination for reviews. |
| customers and feel that they are receiving | | | | Online reviews are built based on online customer |
| accurate information. Online reviews are an | | | | service also. Since shoppers place a high value on |
| effective way for online retailers to communicate | | | | customer service, positive reviews will come for |
| with customers. A good number of positive | | | | better customer service. A survey conducted by |
| reviews on websites mentioning satisfactory | | | | Stella Service finds that e-commerce sites known |
| experiences of customers are likely to instill | | | | for good customer service have more loyal online |
| confidence among potential customers. The | | | | customers. This year consumers in US on |
| potential customer feels more comfortable and | | | | average are willing to spend 9.7 percent more for |
| satisfied after reading a comprehensive evaluation | | | | great customer service. Whereas online shoppers |
| of the product from a large number of | | | | are willing to pay 10.7 percent, even higher |
| customers. | | | | premium for good customer service. |
| Can alter consideration set | | | | As more review content is available on the |
| The customers usually shortlist a set of brands | | | | internet, shoppers find it easily and read. They are |
| companies that they will focus on to buy, called | | | | showing interest in finding information that is |
| as consideration set. The customer generated | | | | useful for them. So we can say that online |
| content like product or website ratings and | | | | reviews will impact customer buying behavior. |
| reviews, consumer ratings and reviews can | | | | |