Despite the popularity of Facebook and Twitter, only 7 percent of respondents to a recent survey look for product reviews from friends on social networking sites, according to Lightspeed Research.
“Despite their role in our digital lives, social networks don’t yet seem to be the place where Word of Mouth is delivering its full power,” says Naor Chazan, Marketing Director, Americas at Lightspeed Research. “Consumers turn most readily to search engines, Consumer Reports, shopping websites, and review communities for their research, while social networking sites sit at the extreme opposite end of the spectrum.”
Consumers overwhelmingly rely on online reviews and price comparisons to research products and services before making a purchase, according to Lightspeed Research's latest survey.
Less than one-third (27 percent) of respondents said they had not conducted online pre-purchase research, such as comparing price or investigating online reviews before buying a product. The majority (62 percent) read reviews online, half (49 percent) researched competitors and half (49 percent) checked price comparison sites. These results highlight the importance to brands and retailers of accurate, up-to-date information, competitive pricing and positive reviews.
Almost three quarters of respondents (73 percent) said they trusted Consumer Reports, followed by the opinions and experiences of other consumers at 62 percent, and recommendations from family, friends and colleagues at 58 percent.
Almost one-quarter (21 percent) of the people surveyed said they change their minds about buying a product or service after reading two bad reviews, and more than one-third (37 percent) said reading three negative reviews would persuade them against buying a particular product or service.
Respondents research everything imaginable, from expensive products such as cars, personal technology and home appliances, to less expensive items like books, films, clothes and games. It’s the same story for services. Hotel accommodation is the top researched service at 66 percent, followed by mobile phone companies, insurance, and banks/financial services.
“Consumers are more likely to share a negative experience over a positive one, and they can be dissuaded from a purchase decision after reading just a couple of bad reviews,” Chazan continues. “With high value being placed on the opinions of other people, and the speed at which consumers can obtain these reviews on the fly, brands are wise to invest in monitoring and responding to customer feedback.
