Scientific study has shown that negative online reviews have stronger negative impacts on consumer behavior and price perception than positive reviews.
The study was conducted on internet shoppers and compared the consumers with a purchase goal and those without, along with low and high rates of negative reviews.
The findings revealed that consumers with a purchase goal, in other words, consumers who have a high degree of involvement and are more interested in the products and services compared to those without a clear goal, are highly impacted by negative reviews. These consumers typically display higher confidence in online reviews in comparison to the sellers’ declarations, and therefore their buying decisions are directly influenced by the reviews.
The results further demonstrated that when a product has minimal negative reviews, these consumers have significantly greater price satisfaction and buying intention than those who do not have a purchase goal. Therefore, emphasizing to the consumer that most consumers have experienced satisfactory product performance.
The findings also proved that consumers without a purchase goal have a greater acceptance of a higher share of negative reviews.
The study answers the question as to why positive electronic word-of-mouth (eWOM) matters.
Positive electronic word-of-mouth (eWOM) matters because it is one of the major contributing factors influencing buyers’ decision to purchase and price perceptions.
A large quantity of negative eWOM may alter the manner in which consumers process online information about your product, which in turn may affect their buying objectives and greatly reduce prospective purchasers’ price perception of the product.
What does the study recommend to marketers and business owners with online platforms?
The study provides four specific recommendations:
Since consumers are more susceptible to negative remarks than favorable ones, the study recommended that marketers should focus more on negative reviews and that online merchants should proactively manage their online consumer reviews and feedback, in particular negative comments.
The study also suggested that in order to minimize the damaging effect of a large proportion of negative comments, merchants should provide immediate responses to consumers’ feedback and complaints.
The authors proposed the implementation of a strategic remedy, such as extending effective after-sales services to unsatisfied consumers as a tool to enhance customer satisfaction.
Besides, the authors recommended that marketers could inspire consumers to create a positive buzz on the internet in order to disseminate favorable information on a company’s products and services. Also, managers can encourage these customers to share their experiences about the company’s products or services in a positive way with others.
Original Study:
Weisstein, F.L., Song, L., Andersen, P. and Zhu, Y., 2017. Examining impacts of negative reviews and purchase goals on consumer purchase decision. Journal of Retailing and Consumer Services, 39, pp.201-207. DOI: 10.1016/j.jretconser.2017.08.015