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80 Percent of Shoppers Change Purchase Decision Based on Negative Reviews [Research]

Negative service and product reviews are tough to handle on many levels. First and foremost it is becoming increasingly difficult for the average consumer to tell the difference between a genuine review and one that has been planted or is simply an over-reaction. In addition, just because someone posts a negative review has little or no bearing on if that person had a truly bad experience.

Bad customer experience is a relative thing. Some people gripe at miniscule “issues” and blow them out of proportion. Others scream and yell at anything as a way to derive some power in a situation. Still others are just people that most others don’t want to interact with anyway because they are just miserable human beings in every sense of the word.

For business owners, however, the truth is that no matter where or how that negative review came about it can have a potentially serious impact with the worst-case scenario being a lost sale or, even worse, lost future sales.

Cone, a marketing agency out of Boston, recently released survey data that will raise a few eyebrows for sure. It says that 80% of people have changed a purchase decision due to a bad review they saw. Ouch. This chart shows the power of reviews.

When it Comes to Media, Gen Xers Want it All

I recently saw a pad of scrapbooking paper called Generation X. The designs were all distinctly digital and included Space Invader style video game patterns and scatterings of computers, mobile phones and portable cassette players. Yes, even this craft company knows that Gen Xers love their media.

A new report from eMarketer shows that 88% of Xers are online and that should rise to 90.9% by 2015. What are they doing online? 74.2% are watching videos and that number is also on the rise.

Not only are Gen Xers the biggest pool of video viewers, they also watch more TV than other brackets and are more likely to shop via their mobile phone. Clothing is the most shopped for item with airline tickets and hotel reservations making it into the top five along with books (e or otherwise).

Groupon to Congress: We’re Tracking You for Your Own Good

Groupon has an exciting new idea. They’re going to track you through your cell phone at all times so they can send you the most relevant deals exactly when you need them. Out to lunch on Main Street — get 50% off a sandwich at the deli on the corner. Buying tickets at the movies? Here’s a discount on popcorn. No matter where you are. No matter what you’re doing, Groupon is going to find you. And did I mention you don’t have to have have their mobile app running at the time?

Two congressmen, and possibly several thousand mobile users, want to know more. According to an article in Reuters, House Bi-Partisan Privacy Caucus: Joe Barton from Texas and Edward Markey from Massachusetts have asked Groupon to clarify its data collection and privacy policies. Some of their curiosity stems from Groupon’s recently filed $750 million initial public offering. After that, it’s mostly sheer amazement that Groupon would be so cavalier about wholesale tracking.

Daily Deals on Dry Wall? HousingZone and Bizy Make it So

HousingZone, an online portal for builders, contractors and remodelers, is getting into the deal business with the help of BizyDeal.com.

Bizy is Groupon for small business with daily discounts on items such as job ads on LinkedIn, social media marketing services and a virtual receptionist. In October, they’ll be launching their first industry specific B2B deal site at HousingZone.com.

The new deal site will include discounts on building materials such as roofing supplies, plumping, lighting and doors. (Can’t have a building without doors!)

Tony Mancini, Group Director-Principal for HousingZone parent SGC Horizon said in a press release,

“The timing of HousingZone Deals couldn’t be better, as residential construction and remodeling have been hard hit by the recession. Powered by Bizy, HousingZone Deals will help builders and remodelers improve their bottom lines with heavily discounted goods and services while providing manufacturers with a powerful new channel to promote their products to a large and very targeted audience.”

Google Brings Catalogs to iPad

I’m always amazed when Google does something in the mobile space that they produce for the iPad but not for Android devices. Do they do that because they want regulators to see that Android doesn’t get preferential treatment? Or is it that it’s a real pain to make sure your Android app works with the many iterations of Android that exists? Either way, it always strikes me as odd.

The latest way that Google is helping retailers utilize the tablet space is with the Google Catalog apps. It’s just like it sounds. Take a look for yourself.

The Google Mobile blog describes the apps capabilitities as follows:

Small Gains for Small Business

Small business owners aren’t optimistic about the future and they said so loud and clear this past July. The National Federation of Independent Business reports a larger than usual decline in their Optimism Index after what was already a downward spiral going back three months prior.

Given the state of the economy, their dim view isn’t surprising but comScore has some good news to share. Over the last three quarters, small retailers have taken home a larger piece of the e-commerce pie.


Not a staggering gain, but at this point, any gain is good news and this is the first good news since they had a 37.2% share back in Q4 2009.

Retail Takes Top Spot for Online Ad Spending

As you travel around the internet on your daily quest for knowledge, you’ll see a lot of ads and the majority of them will come from the retail industry.

According to numbers from eMarketer, retail will spend an additional $1.3 billion on online ads this year bringing them up to an estimated $6.78 billion. The trend is expected to continue with retail claiming the top spot through with $11.08 billion by 2015.

The up and comer is the consumer packaged good industry, though they currently sit in 5th place for online ad share. In the next few years, eMarketer predicts a rise of 14% to 29% per year. That, combined with a slow down by telecom advertising means CPG will move up a notch by 2015.