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The Case of Price v. Value, and the importance of online reviews

Are you missing the mark in how to communicate product/service value?

scale measures price versus value

Three measures from recent consumer studies (ZIPPIA) illustrate that buyers are putting a lot of stock in online reviews:

  • 93% of consumers surveyed said that reading online reviews has affected their buying decisions

  • 81% said they read online reviews before visiting a business in person

  • Products with at least five reviews have their conversion rate increased by 270%

In the marketing mix price strategy is the burden of the seller, who reads market forces and consumer target demographics to establish a figure that maximizes expected returns on investment.


Consider that any price, however calculated, is arbitrary from the perspective of the buyer.

Consider that any price, however calculated, is arbitrary from the perspective of the buyer. The buyer receives the number (price) and begins the process of weighing their value of money against the expected value of the product/service imapct (ie. features and benefits).

Today’s consumers are indicating that the online reports of others play a significant role in how they perceive value. Your business needs to have this information available to satisfy the buyer’s need.


consumer with phone and credit card online shopping
93% of consumers surveyed said that reading online reviews has affected their buying decisions

A buyer is looking for validation of their decision by aligning their views and confidence with a third-party group. An increased confidence in the decision can lead to a greater comfort in spending more money if the expected result is a higher value.


Using branded promotional products as part of an awareness or incentive campaign can drive more reviews for your products or services. Printed items like cards and magnets can raise awareness and provide instruction on how to complete the review. Premium items like apparel, drinkware and lifestyle accessories can be used as incentive and appreciation items offered to customers who post reviews.


Make online reviews a priority for your brand/business. Getting postive feedback on commonly sourced platforms like Google Reviews is a must to connect with the emotional needs of unfamiliar buyers.

Even the cost of completing a review must be balanced with a value proposition that compensates the consumer’s investment (time and effort). Always be able to answer a consumer’s most important question, what’s in it for me?


A legion of happy customers sharing their endorsement is a great way to communicate value. mem



The June 2023 edition of marketingedge magazine is available now, read free online.





 



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