According to George Arkerlof’s “Market for Lemons” information asymmetry (e.g. fake reviews) can destroy a market. In the following the relevant part is the one titled “Asymmetric information”…
http://en.wikipedia.org/wiki/The_Market_for_Lemons
Before I got into writing (non-fiction), as a customer I never relied on online customer reviews. The place I bought most of my books had hardly any anyway.
I had no idea how much customers rely on online customer reviews for their purchase decisions. Perhaps one of the mistakes an intelligent person can make is to assume that because something is obvious to them to the point of being well below a mental challenge to conclude so, that it is indeed obvious and will therefore occur to others.
According to my calculations the conversion rate through my own website is large compared to what it is on Amazon, the only thing of course is I don’t have several million hits per day like Amazon!
I find a higher proportion customers through my own website are professionals such as a professor, university lecturer and managing director. Others I am assuming are professionals based on how they can read English and are out in the sticks and places where it is not the language. Probably people who don’t rely on customer reviews (I don’t have any reviews or link to any on my website either). Smug? Perhaps but no not really, I have felt the same as...
I think a lot of the reviews on Amazon are fake. It bothers me greatly.
Like anyone else, I’d want to see something positive in answer to it.
Interestingly a book of mine on Amazon that used to sell (due to being niche enough to not need any reviews in order to be visible) now sells less with a few positive reviews. Hmmmm…..too many reviews for the intelligent people who can think for themselves (and perhaps realize that real customers hardly actually bother post reviews) and not enough fabby 5 stars for the unwashed masses? Who knows, sales are down. I don’t care as most of my sales are not on Amazon now and I prefer it that way.
If you are serious and not a fraud, are Amazon reviews really worth taking seriously? Would Usain Bolt partake in a race, in which at the start line, he is next to a competitor on a motorbike with a tazer pointed at him just before the starter pistol? Even if you “win”, your genuine reviews will be in a sea of fakes. You would have looked better next to someone “racing you on foot” so why bother? All the more reason why fraudulent reviews will suppress the desire for and the amount of genuine ones.
There's a ton of research out that shows that it typically takes several thousand customers to find one who leaves a review on a place like Yelp, less on Open Table where they actually solicit reviews.
I’d be interested to see that.
Then you read the 1-2 star reviews and almost all of them mention the terrible editing, the puzzlement of the reviewer that there are so many highly rated reviews in contrast to their own, their bewilderment about whether those people read the same book.
I’ve noticed a higher proportion of these kind of reviews starting with “I’ve never posted a review here before but…” or “This is my first ever review…..”.