Business Insight
You are looking to buy a new technology product. Which brand should you buy and what store
should you patronize? Answers to these questions often start with personal contacts. According
to a Nielsen online survey, 84 percent of global respondents stated that word-of-mouth
recommendations from friends and family are the most influential source of information.
Nielsen also found that consumer opinions posted online are now the second-most important
source of information. Currently, over 60 percent of customers read online reviews before
making a purchase decision. Studies have shown that positive online reviews influence
consumers to buy products or services and negative online reviews cause consumers to refrain
from buying them.
A number of customer review and rating sites now operate online. These businesses offer
consumer ratings and links to purchase products or services. Some of these rating sites are
industry-specific; Zagat, OpenTable, Zomato, and Yelp focus on restaurants while TripAdvisor,
Hotels.com and Room Key concentrate on hotels and travel.
As the consumer online review process evolves, online reviews are increasingly linked to social
networks. This allows you to see reviews written by your friends and family.
Think Critically


1. How do online reviews benefit consumers?


2. How should a business react to the online review process? What should businesses do if
they get a positive review? What about if they receive a negative review? What if the
comments in the review were untrue?