Online reviews very influential in offline purchase decisions: Study

A recent study has indicated that consumers were willing to pay at least 20% more for services receiving an "Excellent", or 5-star, rating than for the same service receiving a "Good", or 4-star, rating. (12/3/2007)The study focused on examined the impact of consumer-generated reviews on the price consumers were willing to pay for a service delivered offline. According to comScore, Inc., the results, of a new study conducted with The Kelsey Group, examined the offline sales impact of online reviews for restaurants, hotels, travel, legal, medical, automotive and home services. The study is based on a survey of more than 2,000 US Internet users in October 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%). 97% of those surveyed who said they made a purchase based on an online review said they found the review to have been accurate. Review users also noted that reviews generated by fellow consumers had a greater influence than those generated by professionals. The results showed that consumers were willing to pay between 20% and 99% more for an Excellent (5 star) rating than for a Good (4 star rating), depending on the product category. "These data show the importance of local service review sites in consumers purchase process," said Steve Marshall, Research Director for The Kelsey Group. "With such a large percentage of review users subsequently purchasing, its vital that local service providers have a positive presence on these review sites." "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.

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