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comScore Survey: The Impact of Online Reviews

Friday Jan 11, 2008

According to a recent survey of more than 2,000 U.S. Internet users conducted by web metrics firm comScore (together with the Kelsey Group), online reviews have a big impact on consumers when it comes to offline spending.

The study, which was carried out last October, examined the impact of online reviews on offline spending at restaurants and hotels, as well as for travel, legal, medical, automotive, and home services:

-24% of respondents said they had checked online reviews before paying for an offline service.
-41% of those who consulted restaurant reviews subsequently went to a restaurant
-40% who read hotels reviews went to a hotel.
-8% of those who read reviews subsequently purchased legal services and 19% home services.

More than three in four respondents in all but one category said online reviews had a significant influence on their purchase, with hotels ranking highest at 87%. The one exception was home services, with only 73% saying reviews had a significant impact on buying decisions. 97% of those who made a purchase based on an online review said they found the review had been accurate.

The survey also discovered that consumers are willing to pay significantly more for services that are highly rated. Respondents said they would be willing to pay 20% more for a home service rated excellent over one rated good, and 99% more for a top-rated legal service, with the lift in other categories ranging from 22% to 49%.

Brian Jurutka, senior director of comScore Marketing Solutions, said in a statement: This study underscores the importance of providing not just good, but excellent, service if a business hopes to generate positive consumer reviews which will result in greater sales.
Such data shows the importance of local service review sites in a consumer’s purchase process. With such a large percentage of review users subsequently purchasing, it is extremely vital that local service providers have a positive presence on review sites. The impact, after all, is enormous.

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