Effect of Customer reviews on the online shopping websites influence the purchase decision of the new buyers. Most of the new buyers always see customer reviews before purchasing any product online and then make purchase decisions.
Impact on the price of the product
If the product is good the customer writes his or her experience about how satisfied they are with the product! In the event of a positive review by the customer, is there a tendency that the seller might increase the price of the product? The increase in the price affects the purchase decision and might happen the customer may shift to purchase other products available at a lower price.
Some customers may not bother about increasing prices and shop on their purchase power. This paradigm needs to be understood and it is not good for a seller to practice such selling techniques, especially in a very short period of time.? Some customers write about it , and inform other customers how the seller is increasing the price. In the process what happens is the patronage on the product is suffered?
A good product comes with a fluctuating price tag
A customer purchases, for instance, a single kettlebell( exercise equipment) of 4kgs weight for say $10 dollars . After receiving and unboxing the product he realizes why he did not buy a pair of the kettlebell?
When he opens the shopping app again and tries to buy another piece of the same article, he is surprised to see the price of the same kettlebell which he bought for $10 dollars increased to $12dollars. This happens in a duration of only 4 days. In the situation above the customer will buy the second piece of kettlebell on that increased price or will see other articles available at a lesser price.
This behavior of the seller to increase the price of the article will either lose the existing customer or will increase his sale. The seller must understand this in case of a seasonal product , this strategy might work but in the non seasonal scenario, this will affect the sales. Selling strategy should not affect brand goodwill. Because it takes time in the online shopping world to gain popularity of your product.
Why does the price of the product not come down ?
The seller knows and is confident about the quality of the product. Sometimes, the effect of the customer review is negative, with complaints about price hikes This can have effects such as the price will remain the same and the demand will decrease due to the negative reviews. The seller will not reduce the price due to the profit and loss calculations. The price of the product will reduce only if the seller incurs heavy loss and thus ready to earn nominal profit only.
The Review Power
Sometimes customers love the product but do not prefer to post online reviews. The word-of-mouth review by the customer may help the product alleviate sales. On the other hand, the customer reviews the product positively but also mentions the price hike. The seller in such a condition will either not increase the price immediately or may wait until the dynamic’s changes. Also, this would influence the quantity of purchase by the other buyers online.
Conclusion
The customer can change the profit margins of a seller by posting reviews online. 90 percent of the people see reviews before buying any product online. The manipulation of customer reviews online sometimes can affect the business of genuine products?