As e-commerce grows globally, online reviews have acted as certificates of authenticity that allow potential customers to size up products or services against each other. Information asymmetry is a massive issue in any transaction since the seller or service provider is aware of the issues with the product, but the customer isn’t. Especially in the case of a new product, or an unknown brand, it is difficult for buyers to verify the authenticity of the seller’s claims and reviews help lower the information asymmetry. Even as the internet was just starting off, there were numerous sites dedicated to collating user reviews of restaurants, products, places, professionals etc. that would allow. In the online world, reviews act as a substitute for word-of-mouth marketing. Reviews especially play a big role if the market is competitive with many sellers offering similar products, and branding doesn’t offer much of an advantage. If one were to quantify it, as one consultancy research did, product sales went up by 25 per cent for a one-star increase in product rating.
How the Fake Review Economy Works
How the Fake Review Economy Works
How the Fake Review Economy Works
As e-commerce grows globally, online reviews have acted as certificates of authenticity that allow potential customers to size up products or services against each other. Information asymmetry is a massive issue in any transaction since the seller or service provider is aware of the issues with the product, but the customer isn’t. Especially in the case of a new product, or an unknown brand, it is difficult for buyers to verify the authenticity of the seller’s claims and reviews help lower the information asymmetry. Even as the internet was just starting off, there were numerous sites dedicated to collating user reviews of restaurants, products, places, professionals etc. that would allow. In the online world, reviews act as a substitute for word-of-mouth marketing. Reviews especially play a big role if the market is competitive with many sellers offering similar products, and branding doesn’t offer much of an advantage. If one were to quantify it, as one consultancy research did, product sales went up by 25 per cent for a one-star increase in product rating.