Discover why companies are prodding you to rate their products
- Consumer reviews have flooded every corner of the internet in recent years
- Online ratings and reviews rose by 87% from December 2019 to December 2020
- Reviews have a significant impact on sales, with higher ratings leading to higher sales
- 49% of consumers look for customer ratings and reviews when researching purchases
- Companies ask customers to review their products or services to lift average scores
- Artificial intelligence is being used to combat fake reviews and summarize reviews
Consumer reviews have become ubiquitous in the digital age, flooding every corner of the internet. With the surge in e-commerce during the pandemic, online ratings and reviews have skyrocketed. Research has shown a strong connection between the number of reviews and higher sales, with products receiving higher ratings experiencing three times higher sales. Consumers rely on reviews as a form of word-of-mouth, with 49% trusting reviews as much as personal recommendations. Companies actively seek reviews to build trust and authenticity, and to keep up with competitors. They use various tactics, such as sending review-solicitation emails, to increase the number of reviews and improve average scores. Artificial intelligence is also playing a role in the review landscape, both in combating fake reviews and summarizing reviews for easier consumption. As reviews continue to shape consumer behavior, their influence is only expected to grow.
Public Companies: Amazon (AMZN), GfK (null), Duke’s Fuqua School of Business (null), Mozilla (null)
Private Companies: Fakespot
Key People: Eric Wagatha (Head of Consumer Life at GfK), David Godes (Professor at Johns Hopkins Carey School of Business), Gavan Fitzsimons (Professor of Marketing and Psychology at Duke’s Fuqua School of Business), Saoud Khalifah (Founder of Fakespot)
Factuality Level: 7
Justification: The article provides information about the prevalence and importance of consumer reviews, citing research studies and statistics. It also mentions the impact of reviews on sales and the use of AI in detecting fake reviews. However, the article lacks specific sources for some of the information presented, and there is a lack of depth in the analysis of the topic.
Noise Level: 7
Justification: The article provides some interesting information about the prevalence and impact of consumer reviews, including their connection to sales and the use of AI in generating reviews. However, there is some filler content at the beginning of the article, such as the mention of text-to-speech technology and the request for feedback. Additionally, the article does not provide a thorough analysis of long-term trends or antifragility, and it does not hold powerful people accountable or explore the consequences of decisions. Overall, the article is informative but lacks depth and relevance to the stated criteria.
Financial Relevance: No
Financial Markets Impacted: No
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article does not pertain to financial topics and does not describe any extreme events.
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