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can trust online reviews?

The online review generated online is a blessing for consumers - a chance to put advertising claims and to receive an honest rating. But as soon as reviews released online, followed fake ratings. A study associated by Professor Judith Chevalier examines the prevalence of counterfeit hotel reviews and tests a hypothesis about who she could post and why.

Online buyers have relied on user-generated reviews to compare the relative merits of gadgets or to get a little reassurance to the cleanliness of a hotel before they go to "buy". Given his power to create or break a business, the online review always begins the wrong review. The first fake ratings appeared two weeks after the opening of the website on Yelp. And fake reviews, says Judith Chevalier, William S. Intake Professor of Finance and Economy in Yale Som, reduce the usefulness of all reviews. "It's a problem if people suspect the reviews are wrong," she says. "If I do not trust the reviews, I can hesitate to buy."

websites had long algorithms to identify and banish individual false ratings. In a paper in the American auditing , chevalier and co-authors of the Marshall Business School and the Tuck School of Business make a broader view that looks at the prevalence of fake reviews and test a hypothesis Could you post and why.

Chevaliers study uses a difference between two great hotel reviews. homeworkcourseworkhelps.com allows everyone to publish a rating of a hotel. homeworkcourseworkhelps.com Allows only customers who used the location to book a room in a hotel to review this hotel. Chevalier and their co-authors have the hypothesis that the owners of individual, independent hotels in contrast to chains that are most important by receiving a fake review - whether a positive review of their own companies or a negative review of a competitor. They then compared the prevalence of very positive and negative reviews - specifically, five-star and one and -wo-star reviews-on Expedia, in the owner do not have the opportunity to post fake ratings to visit the TripAdvisor, where you do it. The authors found that independent hotels indeed on TripAdvisor are more positive, and neighbors of independent hotels have negative reviews.

Does that mean that reviews are not trustworthy? The results suggest that even for these hotels, most reviews are likely to realize, on average, the hotels in the study have 120 reviews, of which six or seven counterfeits appear. "We think that certainly 10% of the reviews is fake southwide," says Chevalier. "The majority of reviews is correct - or at least genuine. Maybe they are not exactly; they do not necessarily agree with what their experience would be, but they are real."

posting fake ratings is probably an effective strategy for a hotel owner? Well, Chevalier says, "It's not honest, and it's illegal." But yes, it probably works. This study did not investigate sales, but other research suggests that evaluations have a direct impact on sales. "My best guess, based on what I know about the industry and the mechanism, is that it is likely to be effective. A single-star review of a hotel is probably a powerful deterrence for the people who stay there."

"Promotion reviews: An empirical examination of online review manipulation" by Dina Mayzlin (Marshall School of Business, University of Southern California), Yaniv Dover (Tuck School of Business in Dartmouth), and Judy Chevalier (Yale School of Management) appeared in the American economic review in August 2014.

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