How many times have you clicked on the rating and reviews
for a product or service? Did those reviews become the deciding factor in your
purchase? Over the past five or so years there has been a significant increase on
the use of websites featuring customer ratings and reviews of products and
services. These websites include (but not limited to):

Yelp
Google
Amazon
Tripadvisor
Toptable
Increasingly the importance and weight of online reviews have
grown to the point they may affect the profits and returns of businesses. Local/small
businesses seem to have the most to gain (or lose) from this, and it shows
accordingly. In an article by Myles Anderson, he states that “More local
consumers are now taking notice of online reviews and online reviews are an
important factor in deciding which local business to use. Consumers appear to
best swayed by location and price which don’t represent any guarantee of
quality or reliability.” Supporting Anderson’s statement, it is found that
approximately 52% of consumers are more likely to use a local/small business if
the reviews show to be positive.

However, local/small businesses are not the only businesses
heavily affected by the increased significance of online reviews. The success
or failure of hotels and restaurants is starting to become heavily dependent upon
these customer reviews to the point where even just a half-star increase in
rating can prove to have a positive effect on bookings.
With the growing importance of online reviews one must begin
to question the legitimacy of some or many of them. It is not an uncommon phenomenon,
today, for businesses to go on consumer review sites to post fake reviews in
their favor. These reviews are often very biased and overly enthusiastic and
often used to counteract negative reviews floating around. Though this is
becoming more of a problem as the internet expands in everyday lives, some
websites like Tripadvisor are trying to prevent businesses from doing so on
their sites.
How important are online reviews to you? Will you regard them as much as personal recommendations?
Anderson, Myles. "Column: Local
Search." Search Engine Land. N.p., n.d. Web. 20 Jan. 2013.
"Customer Reviews Affect 6 in 10
Online Shoppers." MarketingCharts. N.p., n.d. Web. 20 Jan. 2013.
Doward, Jamie. "How Online
Reviews Are Crucial to a Restaurant's Takings." The Guardian.
Guardian News and Media, 01 Sept. 2012. Web. 20 Jan. 2013.
"The Importance of Online
Reviews for Local Businesses | US Daily Review." The
Importance of Online Reviews for Local Businesses | US Daily Review.
US Daily Review, n.d. Web. 20 Jan. 2013.