Did you know 95% of customers rely on reviews as a primary source of information before completing a purchase? As online reviews and ratings impact consumer purchasing decisions, every e-commerce brand should take advantage of this consumer-centric feature.
MetricsCart assists brands in understanding the voice of the customer through review monitoring. This digital shelf solution provider provides an in-depth understanding of customer opinions based on theme and sub-theme analysis.
The comprehensive data integration of product ratings across all marketplaces on a customized dashboard makes it easy for brands to investigate the reasons for poor ratings.
Characteristics of Reviews & Ratings that Influence Buying Decisions
Although product description is important for products to rank organically on e-commerce platforms, reviews and ratings matter more as they influence buying decisions.
Here are a few common aspects of ratings and reviews that impact the purchase decisions of customers:
Level of Star Rating
The average star rating gives consumers a quick perception of a product. Ratings affect sales as consumers often have a threshold for a product to be considered worth buying.
Volume of Reviews
A high number of reviews indicates a product’s popularity. The more recent and positive the reviews, the more reassuring they are for customers.
Content of Reviews
Reviews that include both positive and negative details about a product’s features are perceived as more genuine and often more persuasive.
Review Authenticity
Reviews marked as coming from verified purchasers and with natural language and tone are considered more credible by customers.
Reviewer Profile
Professional evaluations and reviews from trusted influencers can drive purchases. For general products, customers tend to trust authentic, relatable feedback from previous buyers.
Images and Videos
Images and video content posted as reviews by customers after purchase significantly impact purchase decisions as they offer tangible proof of a product’s quality and performance.
Sentiment Analysis
The sentiment of reviews that convey strong emotions, be they positive, neutral, or negative, influence consumer decisions.
Competitive Benchmarking
Reviews that compare a product to similar items mentioning their positives and shortcomings, help consumers determine the best option for them.
How Reviews & Ratings Influence Consumer Behavior?
Ratings and reviews play a decisive role in influencing consumer behavior, from initial product discovery to final purchasing decisions.
The consumer buying process can be divided into 5 stages:
- Awareness
- Evaluation
- Purchase
- Post-Purchase Evaluation
- Problem Recognition
Consumers generally trust reviews on third-party e-commerce sites such as Amazon or Walmart rather than the brand’s sites when evaluating a product, as they perceive them as unbiased and not directly influenced by the brand.
Here are some of the critical ways ratings and reviews influence consumer behavior in the digital marketplace:
Pricing Perception
A study conducted by Emplifi found that e-commerce marketplaces are the most commonly sought-after information source for products priced between $5 and $20.
Reviews can justify a product’s price by highlighting its features and benefits, helping consumers perceive the product’s value.
Similarly, negative reviews can make consumers more sensitive to price, especially if the product does not meet quality expectations.
Formation of Brand Perception
A huge number of reviews for a product act as social proof of brand performance and quality.
Positive reviews contribute positively to brand reputation management and foster brand loyalty, while negative reviews can harm a brand’s image perception in consumers’ minds.
Browse More for Niche Products
Products with numerous reviews often rank higher in search results. However, for certain niche category products, it is harder to find products with social proof. So, potential customers may have to look at reviews on several e-commerce websites to arrive at a buying decision.
Buying a New Product Online
Reviews play an important role for consumers who use webrooming and showrooming when purchasing a product for the first time. Webroomers research on the web, read online reviews and compare prices across e-commerce platforms to make an informed decision before purchasing from physical stores.
Thus, reviews can lead consumers to discover new products or brands they may not have considered otherwise.
Positive reviews can help overcome initial consumer skepticism about a new product by assuring its quality and functionality. Negative reviews, on the other hand, act as a double-edged sword because consumers want to see negative reviews to weigh the pros and cons of a product and compare it with other products.
Amazon understands consumer behavior and the importance of reviews at the time of launch. Hence, the platform introduced the Amazon Vine Program to assist new product owners with a maximum of thirty user reviews.
Walmart, on the other hand, suggests that its third-party sellers promote their brands on social media to create brand awareness.
READ MORE | How is consumer behavior different at Walmart? Explore Understanding the Consumer Behavior at Walmart Expectations and Implementations
Speed of Decision-Making
Some e-commerce platforms highlight summaries of common themes or frequently mentioned aspects, which can help users quickly assess products.
Positive ratings and reviews can speed up the decision-making process by quickly reassuring consumers of a product’s quality and influencing them to make a purchase. Conversely, negative or mixed reviews may cause consumers to delay or abandon their purchase.
Post Reviews and Be Part of the Community
Customers may feel encouraged to share their own experiences post-purchase, being part of the feedback loop for the product influencing potential buyers.
Shopper Engagement Spurs Loyalty
Salesforce research shows that 88% of consumers are more likely to buy from a company that promptly addresses and resolves issues. Sellers who engage with consumers by replying to all negative and positive consumer feedback encourage brand loyalty, as consumers feel that the company cares about them.
Why Do Review Monitoring?
In summary, the impact of online reviews on consumer purchasing decisions is crucial. They help build trust and confidence in the product, reduce uncertainty, and provide transparency.
Brands with an online presence can easily manage how customers perceive their business by using MetricsCart, an e-commerce product review analysis platform. Brands and sellers can track negative reviews and address the issue as soon as possible to manage their online brand reputation.
If you are keen on moving forward with the conversation, touch base with us today.
