It’s been said that people do business with people they know, like and trust. That is considered by many to be a basic truth of business. The key ingredient of that formula is trust. Customers want to do business with companies that they trust will do a good job and treat them fairly and courteously. Long before the Internet, consumers used the old-fashioned but reliable method of identifying worthy vendors: Word-of-Mouth. It was understood that past performance was the best indicator of future behavior. From doctors to department stores and from Realtors to restaurants, people would frequent nearby businesses recommended by a family member, friend or colleague. A business that was highly recommended generally could be trusted to deliver a good product or service.
With the advent of the Internet, however, consumers had more choices of companies with which to do business, including companies that were much farther away than their neighborhood. The global village offered more choice but with it also came the challenge of knowing which businesses to trust. The old-fashioned method of identifying worthy vendors was updated for the Internet age. Word-of-mouth referrals evolved into online customer reviews. To facilitate the process, websites sprung up that allowed consumers to write reviews about their experience with that business. Sites such as Yelp, Trip Advisor, Angie’s List, Urbanspoon, Chowhound, and others, allowed customers to rate vendors; everything from restaurants and hotels to retailers and professionals. Problem solved? Not exactly. It now appears that as much as 25-33% of all online reviews are completely bogus. Called astro-turfing, the problem of fake reviews is a growing. Continue reading





