In the world of online shopping, bad reviews can really hurt a product’s reputation. Researchers from Bocconi University took a closer look and found that even just one negative review can turn people away from making a purchase.

Most of us know that when we shop online, we often check out what other customers are saying about a product. Online retailers always showcase customer ratings and reviews. These reviews play a big role in helping us decide what to buy, and they’re seen as more trustworthy than ads because they’re like word-of-mouth recommendations.

Negative impact

The study focused on the impact of negative reviews. They found that negative information has a stronger effect on our decisions than positive feedback. The researchers looked at a large set of data from a major online retailer in the UK that sells a variety of tech and home-and-garden products.

For shoppers who scroll down to read product reviews, having just one negative review makes them 41.8% less likely to buy the product compared to when there are no negative reviews. Since about one-fifth of all shoppers actually read reviews (the other four-fifths don’t bother), this translates to an overall 8.4% drop in the demand for the product. Additionally, a single negative review makes people 9.7% more likely to start looking for other similar products.

However, the impact of negative reviews isn’t the same for all types of products. Things like lawnmowers or vacuum cleaners, which serve practical functions, are more affected by negative reviews. On the other hand, products that are more about fun and lifestyle choices seem to be less influenced by negative ratings, probably because these choices are more personal and subjective.

“We show that negative reviews not only affect product purchase, but they also lead consumers to search for substitute products,” the researchers conclude. “By increasing the consideration set, this extended search decreases the likelihood of the original product being selected at the end of the consumer journey. When consumers find negative reviews, they are more likely to stop browsing for further reviews about the focal product, suggesting that they are unwilling to spend more time and effort collecting information on that particular item.”