Consumers View 5-Star Reviews as Too Good to Be True Northwestern University's Spiegel Research Center analyzed how user reviews affect consumer purchasing decisions, and what they found may surprise you.

By Catherine Clifford

Opinions expressed by Entrepreneur contributors are their own.

Shutterstock

As the cliche goes, perfect is the enemy of the good.

While business owners may obsess over each and every user review of their company's products or services, desperate for the perfect five-star rating, a new study shows that consumers are most attracted to products with an average rating of between 4.2 and 4.5.

That's because consumers are skeptical of perfect ratings, according to the study from Northwestern University's Spiegel Research Center. Consumers see a perfect user review and assume that it's "too good to be true," says the report.

"As counterintuitive as it may seem, negative reviews have a positive impact because they help establish trust and authenticity," the report says. "Consumers understand that a product can't be all things to all people, and they appreciate negative reviews as an important element in their decision-making process." More than 80 percent of consumers actually look for a negative review in their research, according to the report.

Related: How Learning Where Shoppers Browse Online Helps Businesses Make the Sale

For the study, Northwestern University's Spiegel Research Center used data from ratings and review company PowerReviews. The data analyzed came from 22 product categories encompassing 111,460 SKUs across multiple ecommerce platforms.

The report also found reviews matter more when there is a "higher level of consideration," which includes purchasing more expensive items like appliances, electronics and computers. The study also showed that consumers are more likely to seek out reviews when they are deliberating over a purchase they perceive has some element of risk, and if reviews are on the short side, they will look at many, as opposed to if they are longer, they will only read a few.

The report also discovered that it's worth it to send a follow-up prompt to your consumers after they make a purchase, asking them to leave a review. According to PowerReview data, four out of five user reviews are left after being prompted.

Related: With an Empathy Button, Facebook Will Be Even More Valuable to Advertisers

Wavy Line
Catherine Clifford

Senior Entrepreneurship Writer at CNBC

Catherine Clifford is senior entrepreneurship writer at CNBC. She was formerly a senior writer at Entrepreneur.com, the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Clifford attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. You can follow her on Twitter at @CatClifford.

Editor's Pick

A Leader's Most Powerful Tool Is Executive Capital. Here's What It Is — and How to Earn It.
Lock
One Man's Casual Side Hustle Became an International Phenomenon — And It's on Track to See $15 Million in Revenue This Year
Lock
3 Reasons to Keep Posting on LinkedIn, Even If Nobody Is Engaging With You
Why a Strong Chief Financial Officer Is Crucial for Your Franchise — and What to Look for When Hiring One

Related Topics

Starting a Business

5 Tips For Launching a Business While Keeping Your Day Job

Launching a business while holding down a 9-to-5 is no small feat. It's a common path for aspiring entrepreneurs, but it's not without its challenges.

Leadership

Why Time Management Doesn't Work — And How My Team Doubled Their Productivity Once I Started Doing This Instead

Time management is killing your productivity – here's why and what you need to do to increase your productivity instead.

Starting a Business

Honey, We Have a…Company! — 6 Tips for Running a Business With Your Romantic Partner

The unique challenges (and gifts!) in running a business with your romantic partner

Side Hustle

Start Your Side Hustle: Save $160 on a Lifetime Subscription to this E-Commerce All-in-One Solution

For just $39.97, you can set up a branded storefront for an online business and start selling in just a few minutes.

Business Ideas

55 Small Business Ideas to Start in 2023

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2023.