As well as savings on products and the convenience of shopping anytime, anywhere, online shopping has another key benefit over traditional stores: customer reviews.
These reviews, whether they are from everyday people or experts sharing their individual opinions, give shoppers a better idea of how things work off the screen and in real life. And people do pay attention to what is posted.
A recent Sensis Social Media Report (2013) suggests that 74% of social media users read online reviews before making a purchase.
Similarly, data from the e-tailing group and PowerReviews shows that 59% of all online shoppers have a significant or good impact on their purchase decisions and 42% of shoppers also check out customer Q&As.
The report also found that product research takes up a significant amount of the time people spend shopping, with one in two respondents spending 75% of their overall shopping time researching products.
“Customer reviews continue to wield the greatest influence on buying behavior,” the report says.
In the past year, these kinds of reviews have even become more important for traditional retail shopping, with a growing number of people researching products they see in store via their mobile devices. While this trend – known as showrooming – is more focused on price and comparative products, reviews hold a similar weight in the eventual buying decision.
![user reviews]()
Paying For Fakes
Paying For FakesWhether it is a hotel room, restaurant booking or major electronic purchase, user reviews can make a huge difference on the final decision, regardless of how or where you shop.
But what happens if these reviews are not actually real?
Recently the Australian Competition and Consumer Commission (ACCC) has observed an increase in the number of fake reviews online, warning consumers that they could be getting biased information for a range of businesses and products.
Some of these reviews could be from people working for or affiliated with the companies, while an even more worrying trend is the growing number of paid reviews.
“Online reviews are an increasingly popular resource for consumers purchasing goods or services. Many businesses rely on these reviews to promote their businesses, however, some unscrupulous businesses are taking advantage of consumer trust in online reviews,” ACCC Deputy Chair Dr Michael Schaper said in a statement.
In December 2013 the ACCC released best practice guidelines for businesses and review platforms to encourage more honesty and transparency across the retail landscape. The watchdog has also reminded people that penalties of up to $1.1 million could apply for “misleading or deceptive conduct” which breaches the Competition and Consumer Act 2010 (the Act).
“Fake online reviews are in breach of the Australian Consumer Law and businesses are advised not to write or commission reviews about their own business or a competitor’s business which are misleading,” Dr Schaper said.
While some fake online reviews may be easy to spot – such as those obviously endorsing a product through excessive praise – others could be subtler.
Finding and removing all of these fake reviews will also be a time-consuming process for regulators like the ACCC, particularly as the trend continues to grow.
A study from US-based research and technology group Gartner predicts that in 2014 up to 15% of all online reviews will be fake and/or paid for by companies, which makes it even more important for shoppers to find ways to make sure their decisions are well informed.
Some of the common signs that a review is fake, paid or biased towards the company include:
- The language used in the review (particularly if it sounds like “marketingspeak”),
- Reviews from different users that sound similar in tone and style,
- A lack of negative reviews,
- Spikes in reviews about a particular product or service in a short amount of time; and
- Reviewers who have only ever made one post.
Consumer watchdog group CHOICE also notes that misleading reviews and endorsements – or “astroturfing” as it has come to be known – can also come from blogs and social media sites and be posted by anyone. Even celebrities.
“Last year, a number of high-profile Australians such as singer Shannon Noll and celebrity chef Matt Moran were tweeting their previously unmentioned enthusiasm for Kangaroo Island in South Australia,” CHOICE says.
All this moving and dancing training! Think I need a break! I heard Kangaroo Island is awesome! Thoughts anyone?
— Shannon Noll (@NOLLSIE) March 27, 2012
“Later, the ABC revealed that an agency working on behalf of the SA Tourism Commission was paying celebrities $750 per tweet about the island, but had specified that the tweets must appear “organic and spontaneous”.”
The line between real opinions and endorsement deals has been blurred for (and by) celebrities for some time now, but CHOICE has made a good point that any specific reference to brands or products should be scrutinised rather than taken at face value.
There is no doubt that reviews and informed opinions of products are incredibly useful when making purchase decisions but, as the ACCC’s Dr Schaper points out, they should still be taken with a grain of salt.
“Australian consumers have more choice than ever before. However, with more options available, it is important that there is accurate and reliable information available to help consumers choose.”
So maybe it is critical thinking skills, rather than reviews, which will be the most valuable tool for getting better shopping deals.
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