Podcast
Questions and Answers
What percentage of consumers are influenced by positive reviews according to one study?
What percentage of consumers are influenced by positive reviews according to one study?
- 90% (correct)
- 70%
- 100%
- 80%
Less than 15 percent of reviews on a popular travel website may be fake.
Less than 15 percent of reviews on a popular travel website may be fake.
False (B)
What is greenwashing?
What is greenwashing?
Claiming that a product is better for the environment than it really is.
Ninety percent of consumers say they are unlikely to purchase from companies that do not protect their ______.
Ninety percent of consumers say they are unlikely to purchase from companies that do not protect their ______.
Match the following approaches to their descriptions:
Match the following approaches to their descriptions:
How do some companies manage to reduce prices below the profit limit?
How do some companies manage to reduce prices below the profit limit?
Most consumers prefer to buy products that harm the environment.
Most consumers prefer to buy products that harm the environment.
What can happen to companies that engage in greenwashing?
What can happen to companies that engage in greenwashing?
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Study Notes
Online Reviews
- 90% of consumers are influenced by online reviews
- Companies are pressured to have positive reviews
- Fake reviews can benefit a company in the short term
- Fake reviews are likely to lead to unhappy customers and damaging the company in the long term
- Estimates suggest almost 15% of reviews on one popular travel website may be fake
Price and Data
- Lower prices mean lower profits for companies
- Some companies make extra money by selling customer data to advertisers
- These companies can offer more attractive prices on products and services than competitors
- 90% of consumers are unlikely to buy from companies that don’t protect customer data
Companies that Harm the Environment
- A significant number of consumers want to buy products that are good for the environment
- Businesses sometimes engage in greenwashing, suggesting a product is more environmentally friendly than it is
- Greenwashing benefits sales in the short term, but can lead to a customer backlash
- Significant numbers of consumers are likely to trust companies that support the environment
Conclusion
- Consumers should be aware that businesses use dishonest tactics to attract and keep customers such as fake reviews, selling customer data or greenwashing
- This is often due to pressure on companies to make a profit
- Companies are increasingly recognising that harming consumers also hurts businesses
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