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4 Factors Contributing To Good Customer Service

4 Factors Contributing To Good Customer Service

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42

RESPONSE TO REVIEWS



42.1 Online Consumer Reviews

Ratings sites – like epinions.com to rate consumer products, yelp.com to rate

restaurants, ratemds.com to rate doctors, tripadvisor.com to rate hotels and

destinations – have become recognized sources consumers rely on for reviews about

products and services.

A survey by ChannelAdvisor (www.channeladvisor.com) found that 92% of

Internet users read product reviews. Among these people, 89% have been influenced

to make a purchase or deterred from purchasing a specific product as the result of

reviews. Only 3% of those who have read reviews say their decisions have been

unaffected by reviews.

Among those who use reviews, about a quarter also post their own opinions.

According to eMarketer (www.emarketer.com), 34.4 million consumers, or 20% of the

U.S. population, share advice online about products or services.

Consumers are increasingly accessing reviews while shopping. Compete

(www.compete.com) reports that 45% of smartphone users have looked at third-party or

consumer reviews of a product while in a store.

In a survey by The Society For New Communications Research (www.sncr.org),

73% of Internet users said customer reviews were important in helping form their

impression of companies.

When asked in a 2015 survey by SheSpeaks (www.shespeaks.com) about the

sources of product information they find credible and trustworthy, responses by female

adult Internet users were as follows:

• Online product reviews or blogs by peer consumers:

43%

• Online product reviews on shopping websites:

38%

• Online product reviews by journalists or analysts:

7%

• Information on product packaging:

6%

• Posts by brands/companies on social media:

2%

• Product advertising or infomercials:

1%

Women are most likely to search for product reviews online if they are shopping

for electronics (77%), appliances (72%) or cosmetics (63%), according to the survey.



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_________________________________________________________________



“Online product reviews written by regular

people – whether they know them personally or

not – are what's most likely to get women to hit

the ‘buy’ button, according to SheSpeaks.

Asked about the most credible source for

information about products, U.S. female Internet

users overwhelmingly said ‘only product

reviews.’ ”

eMarketer, 6/30/15

_________________________________________________________________



BrightLocal (www.brightlocal.com) reported consumers’ response to online

customer reviews in 2015 and, for comparison in 2010, as follows:









Positive customer reviews make me trust a business more:

I read reviews but they don’t influence my decision on

which businesses to use:

I don’t take notice of online customer reviews:



2010



2015



55%



68%



19%

26%



21%

11%



_________________________________________________________________



“Customer reviews have gotten more important

for businesses over the years. And that means

positive reviews appear to be having a bigger

effect.”

eMarketer, 9/1/15

_________________________________________________________________



42.2 Online Research

According to Opinion Research Corp. (www.opinionresearch.com), the most

researched product and service categories are as follows (percentage of consumers

that have researched prior to purchase):

• Travel/recreation/leisure:

82%

• Electronic goods:

80%



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Household products/services:

Clothing:

Automotive:

Personal care:

Food:



66%

55%

55%

40%

24%



A study by YouGov (www.yougov.com) found that 79% of Internet users check

online reviews at least some of the time before making a purchase; only 7% say they

never check reviews. YouGov classified reviews as follows:

• Mixed reviews:

57%

• Good reviews:

54%

• Bad reviews:

21%

• Neutral reviews:

12%



42.3 Posting Reviews

A survey by YouGov asked Internet users who posted online consumer reviews

their reasons for doing so. Responses were as follows:

• Help others make better purchase decisions:

62%

• Polite to leave feedback:

35%

• Share positive good experience:

27%

• Make sure good vendors get business:

25%

• Warn about bad experience:

13%

• Expose bad vendors:

12%

• Improve ranking as customer:

7%

• Become well known reviewer:

5%

By age, reasons for posting reviews were as follows:



















Help others make better purchase decisions:

Polite to leave feedback:

Share positive good experience:

Make sure good vendors get business:

Warn about bad experience:

Expose bad vendors:

Improve ranking as customer:

Become well known reviewer:



18-34



35-54



55+



56%

36%

19%

18%

10%

8%

6%

7%



62%

38%

27%

25%

11%

10%

10%

6%



67%

33%

34%

30%

17%

16%

3%

3%



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_________________________________________________________________



“According to a study by YouGov, consumers

don’t write online reviews to release anger.

Instead, among U.S. Internet users who posted

online customer reviews, the top reason for

doing so was to help others make better

purchasing decisions.”

Center for Media Research, 11/5/15

_________________________________________________________________



42.4 Travel Reviews

Among all product and service categories, travel reviews are the most used by

consumers.

According to Forrester Research (www.forrester.com), approximately one-third of

travelers who research trips via the Internet read reviews. Of those who book hotels

online, a third have changed plans based on other travelers’ comments.

Expedia-owned TripAdvisor (www.tripadvisor.com), the largest online travel

review site, had posted more than 320 million consumer reviews of hotels, attractions,

and restaurants across the globe as of April 2016. The site has 350 million unique

monthly visitors, according to comScore (www.comscore.com).



42.5 Consumer Electronics Reviews

Among all product and service categories, consumer electronics (CE) reviews

are the second most used by consumers.

A survey by Weber Shandwick (www.webershandwick.com) found that

consumers seek out opinions about consumer electronics products they are considering

as follows:

• Search for reviews online:

74%

• Ask someone their opinion:

66%

• Read ‘likes’ or recommendations on a social networking site:

47%

• Watch an online video with someone’s experiences:

37%

• Ask their social network friends or followers:

28%

Seventy-two percent (72%) conduct at least two of these activities.

Among those who use online reviews, 65% have been inspired enough by a

favorable consumer review to buy a CE product they weren’t considering, and 59%

have been similarly inspired by a professional review.



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Among those using consumer reviews, 95% report gaining confidence in a

purchase decision; 86% have gained confidence because of professional reviews.

Comparing consumer and professional reviews, 77% of consumers say they pay

more attention to professional reviews; 23% give preference to professional reviews.

Eighty percent (80%) of those who use reviews say they have had concerns

about authenticity. Specific concerns are as follows (percentage of respondents):

• A positive review may be posted by the manufacturer’s employee

or agent, not an actual consumer:

51%

• A negative review may be posted by the manufacturer’s employee

or agent, not an actual consumer:

39%

• A review reads more like an advertisement than an objective

assessment of the product’s benefits and drawbacks:

39%

• A review appears to be entirely negative or entirely positive:

37%



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43

RESPONSE TO VISUALS



43.1 Overview

Visual content can have a major influence on consumer behavior. From studying

brain scans and tracking eye movements, researchers have discovered that visual

content is simply processed differently than text. Visuals communicate more

information, more effectively.

_________________________________________________________________



“Processing print isn’t something the human

brain was built for. The printed word is a

human artifact. It’s very convenient and it’s

worked very well for us for 5,000 years, but it’s

an invention of human beings. By contrast

Mother Nature has built into our brain our ability

to see the visual world and interpret it. Even the

spoken language is much more a given

biologically than reading written language.”

Prof. Marcel Just, Ph.D., Director

Center for Cognitive Brain Imaging

Carnegie Mellon University

Center for Media Research, 1/28/16

_________________________________________________________________



43.2 Response to Visuals

A study by Nate Birt, a researcher at University of Missouri-Columbia, published

in Content Marketing in June 2015, reported the following findings:

• Ninety percent (90%) of the information transmitted to the brain is visual.

• Visual content generates 94% more views.



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Tweets with images get 150% more retweets, 18% more clicks, and 89% more

favorites.

People retain 80% of what they see, 20% of what they read, and 10% of what they

hear.

Visuals are processed 60,000 times faster than text.

Eighty percent (80%) of the text on most pages does not get read.



43.3 Eye Tracking

A January 2016 report by Eye Faster (www.eyefaster.com) provides the following

finding of eye-tracking research:

• The human eye constantly scans the scene, moving abruptly in “saccades” lasting

20 to 40 microseconds, with in between ‘fixations,’ (still periods) of 100 to 400

microseconds. Since the brain processes visual information after the eyes fixate for

200 microseconds, over a half-hour shopping trip, says the report, a customer’s

eyes fixate 1,800 times. That provides marketing messages between 200

microseconds and one second to communicate.

• The eyes focus on a small window, so everything in one’s peripheral vision is a blur.

As a result, products that are near eye level in a retail store are much more likely to

be seen than those placed on high or low shelves. The ideal product placement is

from 30E below eye level to 10E above.

• Being used to reading left to right and up to down, message that are not displayed in

that order feel confusing and off-putting. Consumers have trouble with vertical

lettering and text in unusual places. The rule of design for visuals is that they should

not get so fancy with the design that the message disappears.

• Shoppers give some products more visual consideration than others. One example

is packaged salads. In one study, people picked up and considered three bags of

package salad for every one bag purchased. But salad dressing hardly merits any

consideration at all. In another study, the average shopper spent 62 seconds

looking at salad dressing and only noticed 7% of the available products.

• When shoppers look for known brands, products that look similar to the categories’

leading brand are more likely to catch a customers’ eye than those that look

completely different. If a product doesn’t match the category look and feel, it is

unlikely to register as an option.

• A brand may be of higher quality or be less expensive than the competition, but if it

doesn’t give consumers a positive feeling, they won’t buy it. Since the majority of

purchase decisions are made on the subconscious level where feelings rule,

emotional factors like shape, color, and the memories a package provokes are of

the utmost importance.



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_________________________________________________________________



“Most consumers cannot readily explain why

they sample a new product or regularly

purchase one particular brand, but the truth can

be discovered in their eyes. From numerous

eye-tracking studies surprising insights emerge

into why customers buy some products while

walking right past others.”

Kirk Hendrickson, CEO

Eye Faster

Center for Media Research, 1/28/16

_________________________________________________________________



43.4 Response to Color

Color psychology studies emotions and reactions of people to colors. Research

in the field has found that people react differently to certain colors and that these colors

elicit different emotional states, behaviors, and moods. Using colors that are

appropriate in marketing can be important in eliciting a desired consumer behavior.

The following are emotions and meanings that have been found to correspond

with certain colors among consumers in the North American culture (source: MyeVideo

[www.myevideo.com]):

• Black:

sophistication, elegance, mystery

• Blue:

trust, belonging, freshness

• Gold:

prestige, luxury

• Green:

nature, freshness, growth, abundance

• Orange:

playfulness, warmth, liveliness

• Pink:

gentleness, kindness, safeness

• Purple:

classiness, spirituality, dignity

• Red:

excitement, strength, passion, speed, danger

• Silver:

prestige, coldness

• White:

moral purity, holiness, innocence, youth, gentleness

• Yellow:

warmth, happiness, joy, cowardice



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_________________________________________________________________



“Did you ever walk into a store only to discover

that it wasn’t a store but actually a restaurant?

We tend to associate colors to certain things. If

you’re going to a pharmacy, you expect it to be

white. A kindergarten not so much. If you know

that red encourages action, you might want use

it on your retail website because red encourages

shoppers to take advantage of your offers. If you

are creating a video about all-natural herbal

remedies, it would make sense that you use a lot

of green. It would be a complete miss if you

used, let’s say, purple, since purple is such a

rare color in nature. Have you noticed that fast

food restaurants are mostly yellow, red, or

orange? It’s no wonder that these particular

colors are so dominant in these places. They

encourage visitors to eat faster and then leave,

which is the real reason why these kinds of

restaurants exist. Have you noticed that toys,

books, or websites for kids are usually adorned

with pastel and primary colors? The reason is

that small children love these colors and they

react to them more positively than to other

combinations of stronger colors.”

Mia Styles, CMO

MyeVideo, 8/19/15

_________________________________________________________________



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44

SHOPPING RESEARCH



44.1 Product Research

The 2015 Connected Shopper Report, by the Harris Poll (www.harrispoll.com),

reported that 79% of adults compare prices and product attributes online prior to

making purchases. Resources used for online research are as follows (percentage of

respondents):

• Online-only retailer sites:

56%

• Bricks-and-mortar retailer sites:

51%

• Brand sites:

35%

• Comparison shopping websites:

16%

• Social media:

10%

• Digital fliers:

10%



44.2 Cross-Channel Research

“Showrooming” is the practice where customers go to a bricks-and-mortar retail

location, make a decision on what item to buy and, instead of heading to the check-out

aisle, use a mobile device to find a better price online where they ultimately make their

purchase. “Webrooming” occurs when consumers buy in a store after researching a

purchase online.

GfK (www.gfk.com) reported that 28% of consumers engage in showrooming;

41% practice webrooming.

By age, those who showroom or webroom are as follows:

Showrooming













18-to-24:

25-to-34:

35-to-49:

50-to-68:



39%

32%

29%

18%



Webrooming



34%

46%

43%

30%



44.3 Comparison Shopping Websites

Comparison shopping websites, or sites that aggregate product listings from

various retailers but do not directly sell products themselves, have become popular

among consumers.



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The most visited comparison shopping sites in 2015, ranked by number of

monthly unique visitors, were as follows (source: eBizMBA [www.ebizmba.com]):

• Google Shopping (www.google.com/shopping):

20.50 million

• Coupons (www.coupons.com):

20.25 million

• Biz Rate (www.bizrate.com):

19.00 million

• Shop At Home (www.shopathome.com):

18.00 million

• Slick Deals (www.slickdeals.com):

17.50 million

• NexTag (www.nextag.com):

8.00 million

• Woot (www.woot.com):

7.00 million

• Shopping (www.shopping.com):

6.70 million

• Shopzilla (www.shopzilla.com):

6.50 million

• Shop (www.shop.com):

6.00 million

• Fat Wallet (www.fatwallet.com):

5.50 million

• Pronto (www.pronto.com):

4.20 million

• Price Grabber (www.pricegrabber.com):

4.00 million

• Shop Local (www.shoplocal.com):

3.50 million

• Deal News (www.dealnews.com):

2.00 million



44.4 Research Via Mobile Devices

The New Digital Divide, a report by Deloitte (www.deloitte.com), found that the

use of mobile devices before or during in-store shopping trips influences approximately

$593 billion of in-store retail sales, or 19% of total bricks-and-mortar sales.

According to a December 2015 study by Y&R (www.yr.com), 51% of adults

primarily research products via smartphone. The demographics of those who do so are

as follows:

Gender

• Female:

54%

• Male:

47%

Age

• 18-to-29:

• 30-to-44:

• 45-to-59:

• 60 and older:



32%

36%

19%

13%



The Consumer Technology Association (CTA; www.cta.tech) reported that 58%

of shoppers prefer to look up information on their mobile devices while shopping in

stores, rather than talk to a salesperson. Shoppers ag es 25-to-44 and men are most

likely to prefer to access their device for product information. Nearly two-thirds feel that

the information they gather on their mobile devices is more helpful than in-store

information from product displays or sales literature.



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