Online reviews effect purchasing decisions

User-generated online reviews have a significant impact of purchasing decisions, according to new research by Rubicon Consulting.

A survey by the firm shows that online reviews and user comments influence consumer-buying decisions and are second only to word-of-mouth recommendations.

The majority of respondents said they are influenced by online information when purchasing consumer electronics and planning a holiday.

When it comes to films, more than 60 per cent of young people said they are strongly influenced by online information, compared to less than 40 per cent of web users under the age of 40.

“Many companies downplay the importance of online communities because only a few of all internet users contribute to them heavily,” commented Harry Max, principal at Rubicon Consulting.

“What they don’t understand is that most other internet users read those reviews and rely on them heavily when making purchase decisions.”

He added that taking good care of online communities can be a huge money-saving exercise for companies trying to get more “marketing impact from limited budgets”.