Over the last few years there has been a dynamic shift in the ways people shop for the products as well as provide their reviews on both experience and the quality. Earlier, the only platform for the feedback customers had was the shopkeeper or the contact centre, if any. With advancements of the technology and internet revolution, the customers are closer to each other than before and can provide their reviews on various online platforms which has its own share of pros and cons. Let us discuss both the aspects in below paragraphs.
To begin with, let us shed some light on the advantages of the growing trend of providing the feedback. First and foremost, the primary benefit of providing the reviews online is to let the company know what people think of their product. To explain, the platform can be an easier way to complaint against a product or service which buyer consumed and is not satisfied. These channels can be an alternative of taking a legal route as none of the parties would like to go to the court if matter can be sorted easily. To cite an example, CEO of a renowned British consumer goods company, in one of the interviews published by International Journal of Marketing and Sales, accepted the fact that there is approximately 60% decrease of law suits since last three years, against company after the management of company agreed to be listed on the major review platforms
In addition, the other key benefit of the reviews is that prospective buyers can go through the feedback provided by previous buyers and make an informed decision. To elaborate, this helps in bringing transparency in the ecosystem where people learn from other's experience and buy the product. The company also have access to these review platforms where they can go through the feedback provided by the customers and strive to bring improvements in the product. They can always notice the trend of increased positive ratings in order to visualise the impact of latest modifications in the product. To exemplify, 80% of the respondents in a survey conducted by Unilever Netherlands in 2018 in the United States with a sample size of 500 customers revealed that they always go through the reviews on any review platform before making any buying decision.
On the contrary, this phenomena has its own disadvantages. Primarily, the review platforms charge money from the companies in order to get them enlisted on the platform, but not all businesses are able to afford the fees. To substantiate, the bigger organizations have a specific budget allocated to such expenses whereas the smaller companies are unable to pay such a money and are left behind. Since these organizations are not present on the review sites, they are often ignored and the business goes to the rich competitor. To illustrate, a research conducted by 'The Washington Post' in 2018, in the United States, on three hundred small and mid sized businesses revealed that 80% of the business owners agreed that people are increasingly trusting the reviews online due to which their sales are going down. Furthermore, sometimes there is a risk that the reviews on such platforms are biased towards a specific company. To clarify, there are instances when a product company owns a stake in the review platform. In such cases it is highly unlikely for a platform to maintain a neutral instance which does not promotes healthy business environment. To exemplify, there were certain law suites filed in courts of the United States where the company with financial holding in one of the review sites was accused of tampering with reviews and review ratings despite of the inferior product quality.
To encapsulate, it can be concluded that the review sites have provided a platform where customers can complain about their negative buying experience and can also form a community to provide their product reviews which helps other potential buyers. At the same time the platforms can be misused by the organisations that have spending power or have an ownership of the company. Hence, the need is to maintain proper regulatory checks and balances so that the technology advancements can be used to promote a healthy business environment.
Over the last few years there has been a dynamic shift in the ways
people
shop for the
products
as well
as provide their
reviews
on both experience and the quality. Earlier, the
only
platform
for the
feedback
customers
had
was
the shopkeeper or the contact
centre
, if any. With advancements of the technology and internet revolution, the
customers
are closer to each other than
before
and can provide their
reviews
on various online
platforms
which has its
own
share of pros and cons.
Let
us discuss both the aspects in below paragraphs.
To
begin
with,
let
us shed
some
light on the advantages of the growing trend of providing the
feedback
.
First
and foremost, the primary benefit of providing the
reviews
online is to
let
the
company
know what
people
think
of their
product
. To
explain
, the
platform
can be an easier way to complaint against a
product
or service which
buyer
consumed and is not satisfied. These channels can be an alternative of taking a legal route as none of the parties would like to go to the court if matter can
be sorted
easily
. To cite an example, CEO of a renowned British consumer
goods
company
, in one of the interviews published by International Journal of Marketing and Sales,
accepted
the fact that there is approximately 60% decrease of
law suits
since last three years, against
company
after the management of
company
agreed
to
be listed
on the major
review
platforms
In addition
, the other key benefit of the
reviews
is that prospective
buyers
can go through the
feedback
provided by previous
buyers
and
make
an informed decision. To elaborate, this
helps
in bringing transparency in the ecosystem where
people
learn from other's experience and
buy
the
product
. The
company
also
have access to these
review
platforms
where they can go through the
feedback
provided by the
customers
and strive to bring improvements in the
product
. They can always notice the trend of increased
positive
ratings in order to
visualise
the impact of
latest
modifications in the
product
. To exemplify, 80% of the respondents in a survey conducted by Unilever Netherlands in 2018 in the United States with a sample size of 500
customers
revealed that they always go through the
reviews
on any
review
platform
before
making any buying decision.
On the contrary
,
this
phenomena has its
own
disadvantages.
Primarily
, the
review
platforms
charge money from the
companies
in order to
get
them enlisted on the
platform
,
but
not all
businesses
are able to afford the fees. To substantiate, the bigger organizations have a specific budget allocated to such expenses whereas the smaller
companies
are unable to pay such a money and are
left
behind. Since these organizations are not present on the
review
sites, they are
often
ignored
and the
business
goes to the rich competitor. To illustrate,
a research
conducted by 'The Washington Post' in 2018, in the United States, on three hundred
small
and
mid sized
businesses
revealed that 80% of the
business
owners
agreed
that
people
are
increasingly
trusting the
reviews
online due to which their sales are going down.
Furthermore
,
sometimes
there is a
risk
that the
reviews
on such
platforms
are biased
towards a specific
company
. To clarify, there are instances when a
product
company
owns
a stake in the
review
platform
. In such cases it is
highly
unlikely for a
platform
to maintain a neutral instance which does not
promotes
healthy
business
environment. To exemplify, there were certain
law suites
filed in courts of the United States where the
company
with financial holding in one of the
review
sites
was accused
of tampering with
reviews
and
review
ratings
despite of
the inferior
product
quality.
To encapsulate, it can
be concluded
that the
review
sites have provided a
platform
where
customers
can complain about their
negative
buying experience and can
also
form a community to provide their
product
reviews
which
helps
other potential
buyers
. At the same time the
platforms
can
be misused
by the
organisations
that have spending power or have an ownership of the
company
.
Hence
, the need is to maintain proper regulatory
checks
and balances
so
that the technology advancements can be
used
to promote a healthy
business
environment.