Commentary

Online Consumer Reviews Impact Offline Purchasers

Online Consumer Reviews Impact Offline Purchasers

A new study conducted by comScore with The Kelsey Group, shows that nearly one out of every four Internet users reported using online reviews prior to paying for a service delivered offline by restaurants, hotels, travel, legal, medical, automotive and home services, Of those who consulted an online review, 41 percent of restaurant reviewers subsequently visited a restaurant, while 40 percent of hotel reviewers subsequently stayed at a hotel.

Based on the survey of more than 2,000 U.S. Internet users in October 2007, consumers were willing to pay at least 20 percent more for services receiving an "Excellent," or 5-star, rating than for the same service receiving a "Good," or 4-star, rating. 

Purchase Behavior After Online Review ConsultationOctober 12-18, 2007

Service 

Percent Making a Purchase

Restaurant

41%

Hotels

40%

Travel 

27%

Automotive

24%

Home 

19%

Medical

14%

Legal

 8%

Source: comScore, Inc./The Kelsey Group, November 2007

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 at 87 percent. Review users noted that reviews generated by fellow consumers had a greater influence than those generated by professionals.

Online Review Influence on Purchase DecisionOctober 12-18, 2007

Service 

% of Users Saying Review Had Significant Influence

Restaurant

79%

Hotels

87%

Travel

84%

Automotive

78%

Home 

73%

Medical

76%

Legal 

79%

Source: comScore, Inc./The Kelsey Group, , November 2007

Consumers were willing to pay between 20 percent and 99 percent more for an Excellent rating than for a Good rating depending on the product category.

Amount Consumers Willing to Spend for 5-Star ServiceOctober 12-18, 2007

Service (Suggested Average Price)

Excellent (5 Stars)

Good (4 Stars)

Lift     

 Restaurant Meal ($20)

$37.95

$25.44

49%

 Restaurant Meal ($50)

$59.93

$41.40

45%

 Hotel ($100)

$137.36

$99.73

38%

 Home ($250)

$252.15

$209.50

20%

 Travel ($350)

$366.72

$299.81

22%

 Legal ($60)

$104.36

$52.51

99%

 Medical ($15)

$29.67 

$23.54

26%

 Source: comScore, Inc./The Kelsey Group, , November 2007

Brian Jurutka, senior director, comScore Marketing Solutions, said "This study underscores the importance of providing not just good, but excellent service if a business hopes to generate... consumer reviews... (that) result in greater sales."

 For more information, please visit comScore here.

 

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