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Selling To Millennials With Online Reviews Mangold Smith
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Abstract
Millennials have heavily influenced social media’s evolution into an important source of
product information. They are increasingly basing their product evaluations on information
gathered from online reviews. Thus, companies targeting Millennials may wish to pay heed to
online reviews. Which products are affected by Millennials’ online reviews? Do the reviews tend
to be positive or negative? Where do Millennial customers look for information amongst the
A survey of 227 Millennials reveals that this generation is undeniably posting reviews
online and being influenced by these reviews. Respondents show a definite preference for two
online venues, Facebook and company websites, when voicing their opinions. Reviews are
broken down by positive and negative comments and how product categories fare for each type.
Contrary to popular thinking, the respondents were more prone to post positive reviews than
negative reviews. Males voice their opinions online significantly more often than females, and
specific gender differences are observed by product category. Recommendations are provided for
Key Terms: Facebook, Marketing, Online reviews, Word of mouth, Social media, Millennials,
Gender differences
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1. Millennials: The online generation.
Millennials, also called Generation Y, are a vital component in the evolution of social
media becoming a source of product information. Having grown up socializing and making
purchases online, this generation’s savvy usage of social media will continue to grow along with
their discretionary income. Computers and mobile devices are commonplace tools for
Millennials; you might even call them essential. Ninety-seven percent of Millennials in the U.S.
own a computer and 94 percent own a cell phone. Thirty-four percent of Millennials use websites
Evidence shows that Millennials often look to peers for purchase-related information and
2006). In fact, Millennials access digital media on a daily basis and have the ability to
communicate and purchase from a supplier anywhere in the world. Due to their familiarity and
usage of digital media, they are a driving force of online communications. The Internet, social
media, and inter-active technologies are empowering Millennials to be more active in the
promotion and advancement of products and brands. Millennials often look to peers to determine
the merit of a website or a product. A study of over 7,000 Internet users in France revealed that
online reviews of video games positively influenced consumer’s purchasing decisions. In fact,
the effect of the online reviews was as strong as the effects of personal and expert reviews
(Bounie, Bourreau, Gensollen, & Waelbroeck, 2008). Being highly connected to friends and
information sources, this generation is looking online for product recommendations. They can
participate in information processing at any time, anywhere, and through multiple venues.
products and services online more than the general population. Fifty-six percent of Millennials
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talk about products and services using social networking communities, as compared to 35% of
the general population. Social networking sites were found to be their most popular online venue
for product discussions. Some researchers have found young people more likely to be market
mavens (Wiedmann, Walsch, & Mitchell, 2001; Williams & Slama, 1995). Market mavens are
consumers with general product knowledge who act as disseminators of product information and
are eager to share their expertise and opinions with other consumers (Goldsmith, Clark, &
Goldsmith, 2006; Walsh, Gwinner, & Swanson, 2004). In reaching Millennials, marketers could
Marketers are rethinking their strategies targeted at Millennials. The brands that were
popular with their parents are being rejected by this generation. Having grown up in an even
more media-saturated, brand-conscious world than their parents, they respond to ads differently.
According to Gerzema and D’Antonio (2011), Millennials lead the movement of consumers who
are shifting their spending behavior in order to support companies whose values match their
own. Brands must champion the values of this generation in order to earn the right to have them
as customers. Rather than the customer joining the brand’s world, the brand must join the
customer’s world.
The birth year range for Millennials varies, but a commonly used span is between 1981
and 1994. There are approximately 50 million Millennials in the United States (Jayson, 2010).
The Millennials are the biggest generational group since the baby boomers. Their hefty size and
buying power are making them attractive targets for many consumer industries. Tapscott (1998)
asserts that the Internet has affected the Millennial generation in various ways. He imparts the
authenticate. Alsch (2000) attributes Millennials with the need to control their environment.
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Again, the Internet had a part in fostering this sense of control. The Internet allows Millennials to
exert control over the free market by expressing their opinions through a multitude of online
Millennials are, indeed, an important market for many products and services. The
purchase related communication behaviors they have established at this relatively early point in
their lives can be expected to provide a foundation for their future consumption patterns. Their
use of online reviews is central to these communication behaviors and would appear to be
closely aligned with their actual product purchases. Therefore, the purpose of this study was to
pertains to online reviews. We examine whether Millennials are influenced by online reviews,
and which online venues they are most often using to voice their opinions. The topic of positive
versus negative reviews is also explored. Specifically, we examine which product categories are
receiving the most positive and negative reviews along with gender differences in the posting of
reviews. Specific recommendations are provided for selling to Millennials by leveraging online
reviews.
Online reviews are a type of product information created by users based on personal
usage experience (Yubo & Jinhong, 2008). In essence, online reviews are word of mouth via the
Internet. Product reviews voiced by consumers online are an emerging market phenomenon that
word-of-mouth communication can have a substantial influence on product choice (Walsh et al.,
2004). Word of mouth (WOM) is seen as more credible than advertising as it is perceived as
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having passed through the evaluation of “people like me” (Allsop, Bassett, & Hoskins, 2007).
According to Keller (2007), WOM has become the most influential communication channel.
Product reviews occur every day, both online and offline, when people provide
recommendations regarding the products and services they consume. Social media venues such
as Facebook, YouTube, Twitter, and various blogs are common outlets for product
recommendations. Companies, such as Amazon.com, often use their websites to provide venues
through which customers can review the products they have purchased. There are other sites
specifically dedicated to customer ratings and reviews. These include Epinions, TripAdvisor,
Yelp!, and Zagat. Reviews are also an important component of search engine related sites such
as Google Maps, Bing Local, and Yahoo! Local. The bottom line for consumers is that product
reviews are plentiful and easily obtained. Consumers can readily access second and third
The creation and exchange of user-generated content is facilitated through social media.
Social media and virtual communities provide platforms for people to tell the world how they
feel about a product or company and this viral WOM represents one of the fastest growing
phenomena on the Internet (Armstrong & Hagel, 1996). Social media has the potential to
acquisition, attitudes, decision-making, and post-purchase evaluation (Mangold & Faulds, 2009).
promotional success (Parent, Plangger, & Bal, 2011). The implication of this for marketers is that
social media should be part of their marketing mix. Social media is a tool for giving and
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Consumers are using reviews through social media and other venues to conduct
information searches that will help make their purchasing decisions easier (Lempert, 2006;
Vollmer & Precourt, 2008). Reviews can help consumers construct a set of criteria for evaluating
a product and reduce their cognitive costs of making a purchase decision (Liu, Karahanna, &
Watson, 2011). “If presented properly, [online product reviews] can help consumers (1) form an
unbiased understanding of a product, (2) construct a set of criteria for evaluating a product, (3)
make an accurate choice, and (4) reduce the cognitive costs of making such a choice” (Liu et al.,
2011, p. 239).
Early research shows that decision makers seek recommendations for the purpose of
reducing the uncertainty and amount of information that must be processed to make a decision
(Olshavky & Granbois, 1979). A Nielsen Global Online Consumer Survey reveals that 70% of
consumers online trust reviews written by people they don’t personally know (NeilsenWire,
2009). Several studies have shown that people consider the opinions of peers and other
consumers to be more credible than company sources of product information (Foux, 2006;
Gremler, Gwinner, & Brown, 2001; Sheth, 1999; Tax, Chandrashekaran, & Christiansen, 1993).
The quantity of online reviews is often used as an indication of product popularity because it is
considered to represent the market performance of the product (Chevalier & Mayzlin, 2006). In
effect, consumers are banding together in order to process the plethora of information available
today. This reliance on fellow consumers is an influential part of the communication process
These new venues of communication are giving the consumer more muscle in the
exchange process. Not only do consumers have more access to product and company
information, but they also have the ability to share and control the flow of information (Fournier
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& Avery, 2011). This shift in control is significantly influencing the way consumers receive and
react to market information (Singh, Veron-Jackson, & Cullinane, 2008). Product information is
now originating in the marketplace, based on the experiences of consumers. This “groundswell”
(Li & Bernhoff, 2008) is conferring more power to the consumer and impacting the consumption
process. Consumers have the ability to redefine companies to their standards by purchasing from
those who share their values. Consumers are rewarding companies who are more ethical, help
people, and help the planet. According to a study by Gerzema and D’Antonio (2011), people
don’t just feel empowered as individuals; they have also discovered that there is power in
numbers. Consequently, consumers are joining together in order to influence the way companies
operate.
Out of necessity, marketers are finding ways to incorporate social media into their
marketing strategies (Li & Bernoff, 2008). Online reviews are exerting an increasingly powerful
influence on consumer choice and will continue to do so (Gerzema & D’Antonio, 2011; Godes et
al. 2005). Of the U.S. online population, 25% are reading consumer-generated reviews and this
number is sure to rise over the next decade (Li & Bernoff, 2008). According to the Facebook
Pressroom (2011), Facebook has more than 500 million active users and the average user has 130
friends and is connected to 80 community pages, groups and events. Users spend an average of
46 minutes per day on Facebook. Marketers must acknowledge the phenomenon of social media
because it is becoming “the de facto modus operandi for consumers who are disseminating
information on products and services” (Mangold & Faulds, 2009). This means that marketers
who are not involved in social media will be at a disadvantage in competing for the consumer’s
attention. Those companies that have a positive presence on review sites as well as other forms
of social media will benefit from the mere exposure effect, where consumers favor a product or
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company to which they have been previously exposed. Consequently, when it is time to make a
purchase decision, consumers may recall being exposed to a particular brand and have a
preference towards it based on their exposure to reviews and other forms of social media.
Through online communication and networking, companies can become focal points for
the exchange of ideas, services, and solutions. Ideas can range from innovative products to new
ways to help the environment. Companies that are receptive to consumer comments and are
quick to give honest feedback can build strong relationships with customers. Gerzema and
D’Antonio (2011) attest that companies that work closely with the consumer will redefine the
requirements and standards of what constitutes a “public company.” Effectively, consumers can
have a voice in the design of products and the shopping experience and marketers can gain
insight into the needs and preferences of their customers. Ultimately, the outcome can be a more
Positive reviews have the potential to convert a consumer from “not buying” to “buying”
because the review helps reassure the consumer that the product or company is of good quality.
Uncertainty regarding the worth of the product or company has been reduced. Alternatively,
negative reviews can squelch a purchase. Positive versus negative reviews are especially
influential during the early stages of a product’s life when consumers know very little about it.
During the later stages of the life of a product, the influence of positive and negative reviews
lessens as consumers glean information from other sources (Hu, Liu, & Zhang, 2008). The
implication for marketers is to carefully monitor positive and negative reviews during the early
stage of a product when reviews may be a critical component in the consumer’s decision making.
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According to one study, pure-Internet retailers are more affected by negative reviews
while products from click-and-mortar stores are less susceptible to negative WOM. Consumers
tend to be more familiar with click-and-mortar stores; therefore, this increased familiarity causes
them to be less open to negative reviews. On the other hand, consumers will actively seek out
negative reviews if they are dealing with an unknown Internet retailer whose selling point is low
prices. In such a situation, the consumer is looking for value, but is also wary of encountering a
bad experience. Thus, firms that differentiate themselves through low prices are more susceptible
Conventional wisdom suggests that a satisfied customer may tell some people about his
experience with a company, but a dissatisfied customer will tell everybody he meets. However,
there are several academic studies that support the opposite view: that positive reviews occur
more often. East, Hammond, and Wright, (2007) looked at fifteen studies and, in all cases, found
positive WOM to occur three times more frequently than negative WOM. They did follow-up
studies and confirmed their finding that positive WOM occurs approximately three times as often
as negative WOM. A study by Naylor and Kleiser (2000) found that fewer respondents spread
negative WOM than spread positive WOM. Other studies have concluded that there is more
positive WOM from satisfied customers than negative WOM from dissatisfied customers (Engel,
than negative WOM. In comparison to traditional WOM, online reviews can quickly reach a
much larger group of people. In fact, any review has the potential to become viral marketing.
[Viral marketing can be defined as electronic WOM related to a product or company that is
transmitted in an exponentially growing way; that is, the message is passed on to more than one
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other person (Kaplan & Haelein, 2011).] Using social media such as Facebook, each receiver can
relay the message to a massive number of people. This potential reach may lead people to
consider the image they are projecting and to use moderation in their words, thereby,
examine the current status of WOM that is spread via the Internet and note what is being said for
different products.
4. Research Questions
With all the research concerning Millennials, social media, and online reviews, there is
little written about which product categories are most affected by online reviews and which
online sites are being used to post reviews. This purpose of this study is to examine the activity
of Millennials in regard to online reviews. Specifically, three research questions are examined:
RQ2: Which product categories are receiving the most positive and negative review from
Millennials?
RQ3: What online venues are Millennials using to voice their opinions concerning a
product or company?
RQ4: In regard to Millennials, do males or females post more reviews online and are the
lab at a major U.S. university during the spring of 2011. The sample was representative of the
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We asked the Millennials how often they read online reviews written by consumers when
they are seeking product information before making a purchase. They were also asked how often
they are influenced by online reviews written by other consumers when deciding what product to
buy or which company to buy from. They were asked to respond on a scale from 0 to 10, where 0
The student Millennials both read and are influenced by online reviews. The mean score
for the question asking Millennials if they read online reviews was 8.45, with 28 percent
answering with a response of 10-very frequently. Eighty-two percent answered with a score
ranging from 6 to 10. The mean score for the question asking if Millennials are influenced by
online reviews was 8.09, with 20 percent answering with a response of 10-very frequently.
The Millennials were asked how often they post positive and negative reviews for
fourteen different product categories. The scale ranged from 0 to 10, where 0 equals never and
10 equals very frequently. Electronics and books/movies are the categories that are most
frequently the subject of online reviews. These are also the categories that receive the most
positive reviews. Other product categories that are frequently the subject of online reviews are
computers, music, and clothing/shoes. Table 1 ranks all fourteen product categories by total
reviews, plus reveals the frequency of positive and negative reviews. Each of the product
categories has a net positive score, meaning that each category receives more positive reviews
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Some significant differences were found between males and females regarding the
products for which they most frequently write reviews. Millennial males write significantly more
positive reviews than females when it pertains to electronics, computers, games/toys, and
sports/outdoor products. As for the other product categories, there was not a significant
difference in positive reviews written by males and females. Of all the product categories,
electronics received the most positive reviews and men write them. The mean score for men
As for negative reviews, electronics and books/movies are the high rankers again, but
also in the lead are computers. In regard to gender differences, Millennial males post
significantly more negative reviews than females when commenting on music, as well as
electronics and computers. There were not significant gender differences when posting negative
5.3. Facebook and company websites are used most often for posting opinions.
Millennials were asked about the frequency with which they voice their opinions using
various online sites. The scale ranged from 0 to 10, where 0 equals never and 10 equals very
frequently. Millennials were able to choose from a list of venues that encompassed the
mainstream online sites through which an opinion can be posted. These were: Facebook,
company websites, consumer rating/review sites, YouTube, Twitter, and Blogs. Examples of
each venue were given in order to clarify what types of sites are included in that venue.
Facebook and company websites are the most frequently used online venues for voicing opinions
company websites, with each having a mean of 4.3. The other venues in the study (consumer
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rating/review sites, YouTube, Twitter, and blogs) are secondary with mean scores ranging from
2.49 to 1.90. Millennials were also allowed to write-in venues on which they post opinions. Only
6 percent used this option, each listing a different site, such as the Better Business Bureau. This
small number of write-ins helped confirm that the list provided in the survey did include the bulk
of conventional venues. As for gender differences, there was no significant difference between
males and females in regard to how often they use each of the online venues for voicing their
opinions.
Males voice their opinions online significantly more often than females. We asked the
Millennials about the frequency with which they voice their opinions online, encompassing both
positive and negative comments. The scale ranged from 0 to 10, where 0 equals never and 10
equals very frequently. A statistically significant difference was found between the mean score
for males (5.14) and the mean score for females (3.81).
A study by Kau, Tang, and Ghose (2003) provides support for the supposition that males
are more vocal online regarding their opinions about products. Their study indicates that there
are substantially more males than females who rely on the Internet for product information. It
also suggests that the Internet surfing men are likely to be Millennials who are prone to go online
in order to compare product features and prices before making purchase decisions. Therefore, it
seems reasonable to believe that being online for the purpose of gathering product information
may prompt the Millennial males to also share information by posting product reviews.
Using the same 10-point scale, our student Millennials were then asked specifically about
posting positive reviews and negative reviews regarding a product or company. Results showed
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that both male and female Millennials are posting positive online reviews more frequently than
negative reviews. As shown in Table 3, the mean positive review score for males is 4.96, while
the mean negative review score is 4.35. Females posted reviews less frequently, but still posted
There was a statistically significant gender difference in the number of negative reviews
posted. Findings indicate that Millennial males have a higher propensity to write negative
reviews. Of the positive reviews, the difference in the amount posted by males and females was
potential for marketers to leverage this generation’s propensity to influence their fellow
consumers. Any product can be the subject of an online review, but the marketers of electronics,
books, movies, computers, music, clothing or shoes, and other products that are frequently
knowing which products are receiving positive and negative reviews can be a clue for marketers
as to their product’s positioning and/or possible need for repositioning. For example, Amazon
appears to be paying attention to reviews and positioning its Kindle product in a manner that is
consistent with the feedback being received. At the time of this writing, Kindle cannot compete
well against multifunctional devices such as the iPad, but it can excel as a primarily single
function device. Consequently, Kindle is positioned as the ultimate reading device for people
who want a convenient, economical, and eco-friendly way to read. Product reviews clue Amazon
in to what is important to consumers and what features need improvement. For example, the
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current version of Kindle is light enough to enable one-handed reading and has a larger screen
with better contrast than previous models. Customers complained page turning was too slow on
the Kindle, thus, improved control buttons enable pages to turn much faster.
Companies targeting females as their primary shoppers may be surprised to learn that the
males in the study voiced their opinions online more often than their female counterparts. This
suggests that males should not be overlooked in strategies designed to leverage online reviews. It
is also important to note that the Millennial respondents were more prone to post positive than
negative reviews. This suggests that opportunities exist to leverage online reviews through
strategies that are positive and proactive. Specific recommendations for leveraging online
reviews in order to sell to Millennials are provided below and summarized in Table 4.
6.1. Monitor
The Millennials surveyed were prone to utilize Facebook and company websites for
posting their online reviews. Thus, these venues, along with consumer rating/review sites,
YouTube, Twitter, and blogs should be carefully monitored for reviews pertaining to a product
and surrounding a Facebook page, by book marking relevant sites, and by subscribing to RSS
feeds. For example, the Millennials included in our survey reviewed the electronics product
category more frequently than any other category. Therefore, companies targeting Millennials
with electronic products may use Twitter hash-tag (#) searches to identify tweets for which hash-
tags have been used to connect the tweet to a company or brand. They may also carefully
monitor CNET, which focuses on the review of technology products such as cell phones,
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desktop, laptop, and tablet computers, digital cameras, home audio devices, printers, and
Some companies may find it more efficient to monitor online reviews through the use of
a technology-based monitoring solution. For example, Google Alerts is a free and easy-to-use
service that marketers often employ to monitor communications relating to their products,
brands, or company. Tweetdeck allows users to monitor conversations across a variety of social
media platforms including Twitter, Facebook, LinkedIn, and MySpace. Similarly, Social
conversations occurring in more than one hundred 100 social media venues. Google Analytics
can provide insight into which review sites are driving traffic to the company website. It can also
specify the amount of time customers are spending on website pages and how many purchases
are coming from those customers. Changes over time can be tracked, plus, performance patterns
can be correlated with various marketing activities. Many monitoring solutions are free while
What a fellow consumer says about a product or service is almost always interpreted as
being more credible than the company’s advertising, selling, and other promotional efforts (Li &
Bernoff, p. 2008, p. 28). Therefore, the presence of positive customer reviews can be strong
inducements for Millennials to buy. Regular customers in competitive markets are, almost by
definition, generally satisfied. Otherwise, they would not be regular customers. This suggests
that their reviews may tend to be generally positive. Our research also indicates that Millennials
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Therefore, as Josh Bernoff and Ted Schadler point out in their 2010 book entitled
Empowered: Unleash your employees, energize your customers, transform your business,
businesses may want to “amplify” positive reviews by making them visible in places where
potential buyers are likely to see them (p.102-103). Another way to amplify reviews is to
encourage Millennials who are regular customers to participate in the review process (Bernoff &
Schadler, 2010, p. 102-103). In some cases, a small number of dissatisfied customers may post a
disproportionate number of negative reviews. The practice of encouraging Millennials who are
regular customers to post reviews may be particularly helpful for these companies because, as
John Jantsch (2010a) points out in his Duct Tape Marketing blog, “…one way to combat any
The process of encouraging satisfied customers to write reviews does not have to be
complicated. For example, providing interesting and relevant content may increase the chances
that satisfied customers will talk about a product or service online. Such content may be
communicated in the form of written information, pictures, or videos. The company’s opt-in e-
mail list can be used to encourage customers to review the items they have just bought (Li &
Bernoff, 2008, p. 137). The e-mail list can also be used to thank customers who have written
positive reviews (Jantsch, 2010a). The number of reviews can be boosted when the company’s
website is designed in a way that makes reviews easy to write and publish (Bernoff & Schadler,
2010, p. 102). For example, links to relevant review sites can be provided. In some cases, it may
be appropriate to teach customers how to publish a review in, for example, Google Maps, or
Yelp!. This process can be simplified by providing web-based tutorials and links to relevant sites
(Jantsch, 2010b). Other techniques to encourage satisfied customers to write reviews include
placing positive reviews in conspicuous places on the company's website, mentioning positive
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reviews in the company newsletter, and showcasing them in company advertising (Jantsch,
2010a).
However, it should be pointed out that the process of amplifying is fraught with ethical
issues. Is it ethical to encourage satisfied customers to write reviews? If so, where is the line
between encouraging positive reviews and “planting” reviews that may, or may not be, reflective
of the experience that customers are likely to have? For example, some facilitating companies,
and the individuals who work for them, appear to be willing to produce reviews for pay. It
appears that these reviewers will post reviews even if they have little or no knowledge of the
While the ethical issues remain blurred, in the United States, the Federal Trade
Commission has provided regulatory clarification in its 2009 “Guides Concerning the Use of
Endorsements and Testimonials in Advertising.” These guides make it clear that material
connections between the conversant and the companies or products being discussed, including
financial compensation, must be disclosed (Federal Trade Commission, 2009, p. 53142). They
also indicate that advertising and marketing organizations are liable for failing to disclose those
connections as well as for false or unsubstantiated statements made by the endorsers (Federal
Trade Commission, 2009, p. 53139). According to the guides, this liability may also extend to
the endorsers themselves. It should be pointed out that the applicability of these guides to online
reviews is subject to interpretation by the courts and the development of case law.
Ultimately, marketers should be aware that consumers are savvy enough to detect the
authenticity of a review (Hu et al., 2008). Controlling or forcing reviews will not be a successful
strategy for the marketer in the long run. Hu et al. (2008) suggest that an ethical strategy for
gaining helpful reviews is to identify reviewers who have a good reputation among consumers.
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Engage these reviewers and provide useful product information in the hopes that they will write
positive reviews.
When confronted with negative reviews, most business people are subject to several
emotional reflexes; e.g., lash out, become defensive, or bury one’s head in the sand. However, a
better approach may be to find ways to engage Millennial customers who express negative
opinions and, when possible, take steps to turn them into satisfied customers (Jantsch, 2010a).
This can be done by apologizing, explaining why the problem occurred, and taking the steps
The information gleaned from negative reviews should also be used to correct product
and service related problems and to renew the business’ commitment to product quality.
Customers will tell you very plainly what they like and don't like about a given product. That
feedback is valuable. For example, in Empowered, Josh Bernoff and Ted Schadler talk about
QuickBooks’ monitoring of its product reviews that had been posted to Amazon.com (Bernoff &
Schadler, 2010). The monitoring process revealed that customers disliked some of the aggressive
selling practices that were incorporated into the software platform. Consequently, QuickBooks
Millennial customers who post positive reviews are prime candidates for brand advocate
programs. Conversely, members of brand advocate programs are likely to write positive reviews.
Therefore, companies may do well to take advantage of the synergy inherent in this circular
relationship by establishing a brand advocates program if one does not already exist. [Examples
of successful brand advocate programs include Mountain Dew’s Dewmocracy campaign and the
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Maker’s Mark Brand Ambassadors program (Fournier & Avery, 2011; GasPedal, 2011)]. Then,
positive reviewers can be identified through various social media venues, including Facebook,
Twitter, and online communities. These positive reviewers may be invited into the brand
advocates program, and brand advocates may be encouraged to write reviews. Advocacy events
can be established to engage the brand advocates and shows of appreciation can encourage
positive reviewers. Brand advocates, like other reviewers, can be encouraged to write reviews by
providing them with interesting and relevant content and tools that assist in spreading
information.
For example, Josh Bernoff and Ted Schadler (2010) relate the story of Symantec's Norton
division, the maker of antivirus and security software, using a brand advocates program to
further engage satisfied customers while also improving their online reviews. Norton observed
that, while its customers’ comments on Facebook and Twitter were positive, comments on the
review sites were mixed. The company responded by working with the word-of-mouth
company’s website were asked if they would be willing to recommend the Norton product to
others. Those who responded affirmatively were invited to join the "Norton Advocates" brand
ambassadors program. Zuberance then helped Norton Advocates write reviews that were
published on review sites such as Amazon.com and CNET. “As a result, in a short time, Norton’s
average ratings on those sites went from two stars to four and a half (on a five-point scale)”
Use your favorite search engine to look for, say, restaurants in Bloomington, Indiana.
You will notice that only a few restaurants are listed on the first page. You must click on “more
21
results” to see the complete listing. The problem for most restaurants in Bloomington is that
Internet searchers often do not click past the first page. Therefore, it is extremely important to
The algorithms by which businesses and websites are ranked by search engine related
sites, like Google Maps, are a closely guarded secret. However, observation indicates that higher
rankings in local listings are directly tied to the number of reviews a local business accumulates
(Jantsch, 2010b). If this is correct, the rankings can be improved by encouraging customers,
The process of accomplishing this begins by creating accounts with the sites that provide
local rankings (Jantsch, 2010a). These include Google Maps, Bing Local, Yahoo Local, and
Yelp!. Then, follow the steps necessary to claim and control the listing with each site. Finally,
fill out as much information as possible for the site listing. This is important because the amount
of information included, along with the number of reviews, appears to influence rankings. This
information typically includes address, phone number, URL for the business’ website, operating
hours, methods of payment that are accepted, and related visual material. It is important that the
information and content be updated on a regular basis because fresh content also appears to
The information gleaned from review sites can be used as a source of leverage over
suppliers. In fact, to the extent that online reviews push the business toward a greater emphasis
on quality, this may be essential. In their 2008 book entitled Groundswell: Winning in a World
Transformed by Social Technologies, Charlene Li and Josh Bernoff (2008) tell how the positive
reviews for a hard-sided bag sold through eBags turned negative. Examination by eBags’
22
management revealed that customers were complaining that the bags’ hard shells were cracking
under normal use conditions. When confronted by eBags’ management, the manufacturer
initially denied that a problem existed. However, negative comments continued to pour in,
providing further evidence of the problem. The manufacturer eventually acknowledged and
corrected the problem as a result of the leverage generated by the online consumer reviews.
Therefore, companies may use online reviews as a source of leverage over their suppliers
by keeping a record of negative reviews for each product. The vendors associated with each
product may be identified. Then, to the extent possible, product problems should be linked back
to the responsible vendors. Ideally, this analysis should result in a continuously updated list of
problems categorized by vendor. Then, the information can be used to negotiate with vendors for
7.0. Conclusions
The advent of customer reviews has contributed to a power shift that is occurring in the
marketplace. Millennials and other consumers are able to influence literally thousands of
purchase decisions with a few sentences placed in online review venues. As the usefulness of
these new venues becomes more apparent, Millennials will almost certainly place more reliance
on them in their information seeking behavior. Therefore, the following consumer behaviors and
rely on consumer reviews. For example, many online review sites have “apps” that facilitate
their use by owners of smartphones and tablet computers (e.g., iPad, Motorola Xoom™).
These versatile devices are convenient and easy to use for consumers who are, for example,
23
The information contained in online reviews may enable Millennials to better discern quality
and value. Thus, the current consumer trend of seeking greater value for the money will
likely continue as consumers adjust their purchasing behavior based on the available
information.
The ready availability of review information, based on other customers’ experiences, may
place a greater reward on quality in the marketplace. To the extent that this occurs,
businesses may place greater emphasis on high quality products and services.
Small businesses may benefit disproportionately from the growth in consumer reviews and
other online venues. Small businesses that effectively utilize online venues have the potential
to influence the consumer during the decision making process. Therefore, the playing field is
likely to become more level as consumers shift their attention from high-cost mass media
advertising to the relatively low-cost online venues that small businesses are better able to
afford.
Millennials have traditionally been viewed as the innovators and early adopters of
technology, including online reviews and other social media venues. Thus, the impact of
consumer reviews will be magnified as Generation Xers and Baby Boomers continue to
follow the Millennials’ lead in the adoption of technology and online information sources.
The coming shifts in the online review sites themselves are less clear. One possibility is
eventually dominate the review space. Another option is that the venues of the future will be
may dominate the restaurant review space while TripAdvisor dominates the hotel and airline
space. Facebook may seize the opportunity to dedicate a portion of its site specifically to product
24
reviews and the conversation that surrounds them. Specialization by product category may vary
from one geographic locale to another. For example, Zagat (http://www.zagat.com/) could
dominate restaurant reviews in New York while Yelp! dominates restaurant reviews in Dallas.
Additional research is needed to deepen our knowledge of how and when consumers use
online reviews and how marketers should respond to their online information search behavior.
Because our research was limited to Millennials, additional research focusing on other age
groups will be particularly helpful. However, it is clear that the power shift occurring in the
seeking behavior and adapt their marketing strategies accordingly (Mangold & Faulds, 2009).
Marketing managers may want to reconsider their communication objectives, promotional mix,
(Kietzmann, Hermkens, McCarthy, & Silvestre, 2011; Weinberg & Pehlivan, 2011). Product
designers should pay attention to the features that are most likely to spark favorable reviews and
online conversations (Rosen, 2009, p. 147-158). Production managers and purchasing agents
should renew their focus on product quality. Marketing research departments may benefit from
hiring specialists who monitor and analyze product reviews. Public relations departments would
be wise to find creative ways to engage customers in online venues while stimulating favorable
reviews and conversations (Parent et al., 2011). Advertising departments may shift from one-way
advertising. Sales managers should integrate reviews and other online venues into the selling
process.
Finally, and perhaps most importantly, marketing managers may want to renew their
focus on customers’ needs, wants, and preferences. In doing so, an emphasis must be placed on
25
consumers’ experiences – experiences with the product, experiences with the product delivery
process, and experiences with the social media ecosystem of which consumer reviews are a part
(Hanna, Rohm, & Crittenden, 2011). The power shift in the marketplace necessitates it! If
marketing managers succeed in renewing their focus, or if they fail to do so, their customers will
26
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Table 1
Product Categories by Frequency of Positive and Negative Reviews
31
Table 2
Online Venues for Posting Reviews
Venue Means
Facebook 4.34
Company websites 4.32
Consumer rating/review sites 2.49
YouTube 2.07
Twitter 1.96
Blogs 1.90
32
Table 3
Frequency of Millennials Posting Online Reviews
33
Table 4
Recommendations for Leveraging Ratings and Reviews
Recommendations Tactics
34