(Length: 4 pages)

January 10, 2007

How Damaging Are Negative Customer Reviews?

by Sucharita Mulpuru

with Carrie Johnson, Peter Hult

Executive Summary (This is a document excerpt)

While the vast majority of online consumers use customer reviews during the course of their research process, a much smaller percentage of online sellers offer them. Part of the anxiety with providing reviews is that sellers fear they will lose control of their marketing message and lose sales. Forrester evaluated 4,000 reviews in the Electronics and Home & Garden categories on the Amazon.com site and found that some of the fear may be unfounded: More than 80% of the reviews were positive, and the negative reviews that did exist were generally considered helpful to consumers. While the data was derived from a retail Web site, Forrester believes this information is applicable across a variety of verticals — from travel to auto, financial services, or healthcare.

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Analyst: Sucharita Mulpuru
Technology: Customer Experience, Interactive Marketing, Marketing & Advertising, Social Computing & Web 2.0, Web Site Design
Industry: Business-To-Consumer eCommerce, Consumer Portals & Search, Consumer Retail & CPG, Consumer Technology Adoption, eBusiness/eCommerce, eBusiness/eCommerce Adoption, Retail, Retail Marketing
Geography: Asia Pacific, Europe, North America

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