The Impact of Online Reviews on Consumer Trust

Abstract

In this paper, we aim to investigate how online reviews and recommendations from other users (known as eWOM) influence consumer trust and purchasing habits in the digital age. The study is of interest given the proliferation of e-commerce and, due to the inability to test products directly, consumers’ decisions rely heavily on the experiences and opinions of others. Here, in this quantitative study, we focused on the effectiveness of a questionnaire administered to a sample group (40—most of whom were between 18 and 24 years old). The results indicate that 70% of consumers consider online reviews a crucial source of information. The public consistently reads such information before purchasing any product. In addition, 67.5% believe that visual elements, such as photos posted by users, can significantly contribute to the credibility of a review. The impact of reviews on purchasing decisions is significant: 92.5% of respondents abandoned their purchase plans due to unfavorable reviews. However, 95% have purchased a product based on positive reviews. Such findings underscore the importance for companies of managing their online reputation and reviews. These reviews must be authentic to earn and maintain consumer trust. CZU: [339.1:004.738.5]:366.1; JEL: M31, L81