Consumers overwhelmingly rely on online reviews and price comparisons to research products and services before making a purchase, according to the latest survey by Lightspeed Research.
In a recent online study, 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.
Social network recommendations not sought as a resource
Despite the popularity of Facebook and Twitter, only 7 percent of survey respondents look for product reviews from friends on social networking sites. “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.”
Who do you trust?
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.
Negative online reviews carry a lot of weight
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.
Click here to download a copy of all the survey results.
For press inquiries please contact:
Naor Chazan, Marketing Director Americas – Lightspeed Research
nchazan@lightspeedresearch.com Tel: (908) 605-4480
Corinna Stadel, PR Consultant – Greenfields Communications
cstadel@greenfieldscommunications.com Tel: 001 4040 865 1423
Note to Editors
This research was conducted March, 2011 and is based on a Census-representative sample of 1,505 respondents using Lightspeed Research’s US Online Panel.
About Lightspeed Research
Lightspeed Research (www.lightspeedresearch.com) is the market researcher’s choice for digitally accessing and deriving insight from consumer opinions and behaviors whenever, wherever and in whatever segments needed. The industry’s most thorough panelist pre-screening process and large global pool delivers business-ready results quickly and cost-effectively. From proprietary online access panels to specialty panels, custom panels and innovative mobile surveys, Lightspeed Research offers the industry’s highest-quality and most complete combination of qualitative and quantitative online research. This is backed by an expert client operations team that provides a range of data collection services, from sample management and survey design to programming and reporting. Part of Kantar, a division of WPP, Lightspeed Research serves clients and cultivates online panelists across the Americas, Europe and Asia Pacific.
