HOW DOES CUSTOMER RATING AFFECT PRODUCT PURCHASE?

Abstract

A customers buying behavior is largely governed by the needs, preferences and tastes of the consumers for whom the product/service is ultimately purchased. Traditionally, consumers purchasing habits were solely relied on word of mouth. With the growth of the internet and technology, online consumer evaluations, product and service recommendations, and peer opinions play an increasingly important role in the customers decision-making process. According to the literature, buyers seek online product reviews for four reasons: information seeking, risk reduction, quality seeking, and social belonging. Before purchasing a product, the buyer actively gathers and integrates information from a variety of sources, the most cost-effective and immediately accessible of which are online review. These reviews will have both positive and negative effect on the consumers mindset. One bad review will drastically drop down the sales of the particular product as these opinions are considered as trustworthy and less risky than marketer information. This article will assist us in understanding how these ratings, reviews, and recommendations influence consumer product purchases and purchasing patterns. KEYWORDS: Purchasing pattern, Word of Mouth, Online reviews, Ratings, Sales