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November 29, 2007
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, November 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 local marketing consultancy, 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. |
| Service |
Percent
of Review Viewers
Subsequently Making a
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. |
| Service |
Percent
of Review Users Identifying Review as Having
a Significant Influence on
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. |
| Service
(Suggested Average Price) |
Excellent
(5 Stars)
|
Good
(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® and Interactive
Local Media), publishing (Global Yellow Pages™), 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,
Nestlé, Starcom, Universal McCann, the United States Postal
Service, Verizon, ViaMichelin, Merck and Expedia. For more information,
please visit www.comscore.com.
For more information contact:
Eileen Pacheco
eileen@tango-group.com
(781) 556-1026
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