User-Generated Reviews Are Driving Product Sales

Three different media outlets - ComputerWorld, the Center for Media Research and Retail Merchandiser - covered a Deloitte & Touche study which showed the impact that real-time access to information, insight and analysis, such as user-generated reviews, have on consumer buying decisions.

Almost two-third of those polled said they read online product reviews written by other consumers. 82% of those who read reviews said that their purchasing decisions have been directly influenced by those reviews (either confirmed initial buying decisions and changed them).These numbers cut across all age groups, although the percentages were slightly higher for younger shoppers. Additionally, 69% of consumers who read reviews share them with friends, family or colleagues, thus amplifying their impact.

Besides reputation and word of mouth, the Web also provides shoppers with immediate access to "information about products, pricing, ingredients and sourcing, as well as corporate practices around labor, environment, health care and other issues", all of which can influence their buying decisions.

The bottom-line - the "increasing market transparency can adversely impact the margins, market share and brand equity of consumer products companies... consumers are increasingly empowered, everyone has a voice, and information and opinions are instantly dispersed...In order to successfully compete, it's imperative for consumer brands to build and maintain their images, create differentiation, and enhance loyalty."



Posted by Universal Ad



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