from DSSResources.com
Online consumer-generated reviews have significant impact on offline purchase behavior
Study Conducted by comScore and The Kelsey Group Reveals that 24 Percent of Online Local Service Review Users Purchase Service
RESTON, Va., Nov. 29, 2007 -- comScore, Inc. (Nasdaq:
SCOR), a leader in measuring the digital world, today announced the results
of a new study conducted with The Kelsey Group, a leading research and
strategic analysis firm focused on local media and advertising, that
examined the impact of consumer-generated reviews on the price consumers
were willing to pay for a service delivered offline. The study, based on a
survey of more than 2,000 U.S. Internet users in October 2007, revealed
that consumers were willing to pay at least 20 percent more for services
receiving an "Excellent," or 5-star, rating than for the same service
receiving a "Good," or 4-star, rating.
The study examined the offline sales impact of online reviews for
restaurants, hotels, travel, legal, medical, automotive and home services.
Nearly one out of every four Internet users (24 percent) reported using
online reviews prior to paying for a service delivered offline. Of those
who consulted an online review, 41 percent of restaurant reviewers
subsequently visited a restaurant, while 40 percent of hotel reviewers
subsequently stayed at a hotel.
Purchase Behavior Subsequent to Online Review Consultation
October 12-18, 2007
Source: comScore, Inc./The Kelsey Group
Percent of Review Viewers
Subsequently Making a
Service Purchase of Stated Service
Restaurant 41 %
Hotels 40 %
Travel 27 %
Automotive 24 %
Home 19 %
Medical 14 %
Legal 8 %
Online Reviews Very Influential in Offline Purchase Decisions
More than three-quarters of review users in nearly every category
reported that the review had a significant influence on their purchase,
with hotels ranking the highest (87 percent). Ninety-seven percent of those
surveyed who said they made a purchase based on an online review said they
found the review to have been accurate. Review users also noted that
reviews generated by fellow consumers had a greater influence than those
generated by professionals.
Online Review Influence on Purchase Decision
October 12-18, 2007
Source: comScore, Inc./The Kelsey Group
Percent of Review Users
Identifying Review as Having
a Significant Influence on
Service their Purchase*
Restaurant 79 %
Hotels 87 %
Travel 84 %
Automotive 78 %
Home 73 %
Medical 76 %
Legal 79 %
* Based on responses indicating at least 4 on a 5 point scale
Consumers Willing to Pay at Least 20 Percent More for 5-Star Service
than 4-Star Service
comScore asked the study participants how much they would be willing to
pay for a particular service based on the quality of the service. The
results showed that consumers were willing to pay between 20 percent and 99
percent more for an Excellent (5 star) rating than for a Good (4 star
rating), depending on the product category.
Amount Consumers Willing to Spend for 5-Star Service
October 12-18, 2007
Source: comScore, Inc./The Kelsey Group
Excellent Good
Service (Suggested Average Price) (5 Stars) (4 Stars) Lift
Restaurant Meal ($20) $37.95 $25.44 49 %
Restaurant Meal ($50) $59.93 $41.40 45 %
Hotel ($100) $137.36 $99.73 38 %
Home ($250) $252.15 $209.50 20 %
Travel ($350) $366.72 $299.81 22 %
Legal ($60) $104.36 $52.51 99 %
Medical ($15) $29.67 $23.54 26 %
"These data show the importance of local service review sites in
consumers' purchase process," said Steve Marshall, research director for
The Kelsey Group. "With such a large percentage of review users
subsequently purchasing, it's vital that local service providers have a
positive presence on these review sites."
"This study underscores the importance of providing not just good, but
excellent, service if a business hopes to generate positive consumer
reviews which will result in greater sales," said Brian Jurutka, senior
director, comScore Marketing Solutions.
About this study
The comScore study was based on 2,078 survey respondents, including 508
who used online consumer reviews, conducted from October 12-18, 2007.
Consumers were asked about their usage of online reviews and were also
asked what price they would be willing to pay for a service given an
average service price and an aggregate consumer rating.
About The Kelsey Group
The Kelsey Group is the leading provider of research, data and
strategic analysis on directories, small-business advertising, online local
media and mobile advertising. Founded in 1986, the company has built a
reputation as the premier analyst firm covering the directory publishing
community and the emerging local search marketplace, providing advisory
services (The Kelsey Report(R) and Interactive Local Media), publishing
(Global Yellow Pages(TM)), consulting (more than 400 individual
assignments) and conferences (69 events).
About comScore
comScore, Inc. (Nasdaq: SCOR) is a global leader in measuring the
digital world. This capability is based on a massive, global cross-section
of more than 2 million consumers who have given comScore permission to
confidentially capture their browsing and transaction behavior, including
online and offline purchasing. comScore panelists also participate in
survey research that captures and integrates their attitudes and
intentions. Through its proprietary technology, comScore measures what
matters across a broad spectrum of behavior and attitudes. comScore
analysts apply this deep knowledge of customers and competitors to help
clients design powerful marketing strategies and tactics that deliver
superior ROI. comScore services are used by more than 700 clients,
including global leaders such as AOL, Microsoft, Yahoo!, BBC, Carat,
Cyworld, Deutsche Bank, France Telecom, Best Buy, The Newspaper Association
of America, Financial Times, ESPN, Fox Sports, Nestle, Starcom, Universal
McCann, the United States Postal Service, Verizon, ViaMichelin, Merck and
Expedia. For more information, please visit http://www.comscore.com.
SOURCE comScore, Inc.
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