The importance of consumer reviews on business
In recent years, there are many websites that features important reviews of customers on various services and products like TripAdvisor, Yelp etc. These sites have a great influence on the consumer’s decisions. The way companies earn their reputation is an important area of research for many marketers. The ways companies earn their reputation in this digital age is an important area of research and the way they earn rankings, expert valuations, online consumer reviews and quality disclosure laws to see market settings are very important for consumers.
In theory, the ratings fill the sites by filling in the gaps by providing a tremendous amount of information on which to base decisions. It is seen that restaurants are the businesses that attract customers reviews the most. A tremendous amount of information is required to fill the gaps in rating sites. On comparing the ratings over time, it is seen that how revenue jumped when the star threshold was crossed and comparing these with more steady changes can directly trace the effect of ratings.
It is a important factor that ratings have on revenue. Ratings have a direct impact on the revenue of a business. In the case of restaurants, it is seen that restaurants do not display the same features on ratings. Chain restaurants are seen to be most unaffected by ratings of consumers. This is because diners already have a lot of knowledge of the chain restaurants and they can benefit more information from the neighborhood spots. It is also observed that people do not go to the ratings site to find out about chain restaurants.
Now the most important question to answer is whether the public reviews provide a reliable source of information about any product or services. Many a time’s restaurants are blamed for gaming the system and change the reviews and ratings. Research suggests that the consistency of reviews are the weakest when there is a low number of criticisms of reviews. The sites can improve on the content and identify the elite viewers whose reviews are the most important one so that customers can trust those reviews. The ability to quickly find reviews from people with similar tastes is a potential area of improvement for review systems and at this point, there is no such single site that has mastered it all completely. So review is important to some extent.