What Marketers Misunderstand About Online Reviews?

What Marketers Misunderstand About Online Reviews 

A new article published in Harvard Business Review addresses what marketers misunderstand about online reviews. Itamar Simonson and colleagues worked with Orly Lobel, Emanuel Rosen, and On Amir to determine what makes online reviews effective in generating business value. They propose a voice of customer table as a way to bridge the gap between engineers and marketers. This table will help businesses understand how online reviews affect bargaining power. 

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SWOT analysis 

To properly conduct a SWOT analysis of online reviews, you will need to know what your competitors are doing. You can use a SWOT analysis template to create your own. The template is a Google Sheet, so you can edit it and then copy and paste it into a presentation. It is also recommended that you do this exercise with a team of people, especially if you plan to present it to your peers. 

To properly conduct a SWOT analysis, you will need to involve your key decision makers and leaders, as well as all stakeholders. Once you’ve assembled all of these people, you’ll need to begin capturing your SWOT data and mapping out how each element will impact your business. Identify the strengths and weaknesses associated with each point. Use this information to develop a strategy based on these factors. This will help you determine how you can best take advantage of each element in your business. 

Political forces 

The impact of online reviews is huge. They are related to sales rank and can make or break a business. People trust opinions over advertising and institutional communication, which is why traders have tried to artificially influence reviews. The result is that many traders have manipulated these reviews to boost their sales. However, this is not the only reason for these companies to artificially manipulate reviews. Here are some of the most common reasons. Listed below are the most common reasons why traders have manipulated online reviews. 

Influence of online reviews on the bargaining power 

The researchers also found that consumers often respond negatively to online reviews, which reduces their bargaining power. While consumers who are not well-informed are susceptible to price manipulation, those who know what they are buying can negotiate better prices. This study was based on a database of social media posts about the Air Miles Reward Program, which included the product’s policy change announcement. Moreover, consumers who were asked to give reviews were more likely to do so than those who were not. 

The study also found that the emotional state of participants affected their decision to optimize their requests. People who feel sad are less likely to optimize their requests, which results in a lower probability of achieving a favorable result. The researchers found that unhappy individuals did not optimize their requests, as their bargaining power dropped by 5.75% for every unit of sadness. However, those who were happy did not suffer from the same fate. 

Importance of online reviews to a business 

In addition to enhancing a brand’s reputation, online reviews can also help increase sales. While businesses cannot force customers to leave reviews, they can do several things to improve their chances of receiving positive ones. The following are just a few tips to boost your chances of getting a favorable online review: 

A good way to respond to negative reviews is to respond positively. You can also use this opportunity to thank your customers for their feedback. Studies have shown that businesses that respond to reviews from their clients are more likely to be visited. A business can increase sales by 44% by simply thanking customers for leaving a review. Make sure to highlight positive reviews. If you don’t have a formal policy, you can ask a customer to leave a review.