Online Product Reviews Gain Credibility
- by Laurie Sullivan @lauriesullivan, April 25, 2010
Product reviews not only give consumers a voice, but assist manufacturers, brands and retailers to make better merchandising and marketing decisions. "The data almost provides a real-time focus group," says Pehr Luedtke, CEO of PowerReviews. "The first iteration brought value to consumers by helping them make purchases. The second gave retailers a free marketing tool to drive higher conversions. And now we're seeing it move into merchandising."
Product reviews got a boost this week when Google and Bazaarvoice announced a partnership that serves up product reviews on Google Web Search, Google Product Search, and through features tied to Google AdWords. The non-exclusive deal could bring PowerReviews into the fray, too.
The 2010 Social Shopping Study found that reviews continue to play a central role in online shopping behavior. The findings suggest that product reviews save time, satisfy the thirst for knowledge about products, and provide confirmation that the person will make the correct purchase decision.
More than 1,000 consumers who shop at least four times per year and spend $250 or more annually shopping online participated in the survey. The study focuses on how, when and why consumers conduct online product research, as well as their behaviors and expectations related to customer reviews.
Results from the 2010 survey indicate that 57% of shoppers trust customer reviews as a research source along with other corroborating information, but 35% question whether they are biased. Factors that degrade trust in reviews suggest that 50% do not provide enough reviews to make an educated decision, 39% doubt they are written by real customers, and 38% said a lack of negative reviews or limited information.
Shoppers read more consumer reviews to remain confident they will make the correct decision when purchasing products. The survey indicates that consumers trust reviews more now than in 2007. About 41% of survey respondents said they read between four and seven reviews in 2010 before they felt comfortable with a purchase, down from 46% in 2007; 17% vs. 28% read between two and three; 27% vs. 17% read between eight and 15; 7% vs. 3% between 16 and 25, respectively.
Results from the 2010 survey also indicate that online research remains central to consumer shopping behavior, with 50% of respondents reporting they conduct research online for at least half of the purchases made, compared with 54% in 2007.
Nearly 30% conduct just a few hours of research prior to making a purchase decision, while 60% conduct research for a week or more. Few consumers -- 11% -- fall between, and conduct research for just one day.
The study also found people strongly prefer to do their own research online rather than speak to a sales associate in the store. Respondents say online research is preferred for three reasons: the ability to save time, increase confidence, and provide credible information.
In fact, 64% in 2010 spent 10 minutes or more reading reviews, up from 50% in 2007, Luedtke says.
When surveyed about where consumers do research online, the study found that 57% of shoppers begin their online research with a search engine. The top three places that consumers name for finding information online when researching products were retailer sites, 65%; brand sites, 58%; and Amazon.com, 33%. Only a mere 6% rank social media sites, such as Facebook and Twitter, as places to research products.
"Product reviews will continue to become an essential part of online shopping," Luedtke says. "As the Web and shopping becomes more social, reviews will support the foundation of that experience."
