Unethical Ratings

Many consumers rely on rating platforms such as Yelp, TripAdvisor and Open Table to determine where to dine, where to get their coffee, etc. These platforms are widely used and have relative transparency so users assume the ratings and comments on these platforms are quite accurate.

However, a recent study shows rating sites may not be as precise as some may think. According to the Social Influence Bias experiment carried out by professors Lev Muchnik, Sinan Aral and Sean Taylor, ratings can be manipulated. The professors carried out three experiments on one rating site in which they posted a positive comment, a negative comment and no comment at all. Interestingly, after the positive comment was posted, the subsequent comments were more positive. Specifically, the likelihood of a positive rating went up by 32%. Similarly, if the first comment was negative, the preceding comments had a higher probability of being negative.

Yelp is an example of a rating platform that has “tainted” reviews. Yelp provides reviews for restaurants, cafes and even printing services. The company has tried to limit the amount of soliciting positive reviews but Bloomberg writer Brustein believes Yelp will never be rid of phony reviews. Brustein’s article also states almost 80% of customers trust online reviews as much as they would a personal recommendation.

Due to the findings from the Social Influence Bias experiment and the fact that some businesses are unethically improve their ratings on various rating platforms, this form or unethical marketing is quite serious. Customers rely and trust these platforms so when companies strategically boost their ratings by posting fake reviews and thus gaining more business and sales, this can be viewed as unethical marketing.

Currently, rating sites are trying to enforce various algorithms designed to detect false reviews. Hopefully this system of enforcement will work.


References: 

http://www.forbes.com/sites/avaseave/2013/09/12/how-social-influence-significantly-manipulates-the-wisdom-of-the-crowds/

http://www.businessweek.com/articles/2013-08-13/why-yelp-will-never-be-rid-of-phony-reviews

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