Customer Experience and Satisfaction: Importance of Customer Reviews in Customer Value On Buying Preference

e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science

( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:03/March-2023 Impact Factor- 7.868 ww.irjmets.com
CUSTOMER EXPERIENCE AND SATISFACTION: IMPORTANCE OF
CUSTOMER REVIEWS AND CUSTOMER VALUE ON BUYING PREFERENCE
Dimple Ravindra Patil*1, Nitin Liladhar Rane*2
*1D.Y. Patil school of management, New Mumbai, India
*2Vivekanand Education Society's College of Architecture (VESCOA), Chembur, Mumbai
DOI : https://www.doi.org/10.56726/IRJMETS36460
ABSTRACT
With the emergence of internet platforms like Zomato, and Swiggy the restaurant business has seen a
considerable upheaval over the last few years. Customers now obtain details about other eateries, including their
menus and client ratings, thanks to these portals. Customers now extensively rely on customer evaluations when
choosing a restaurant because they have become a crucial component of their decision-making process. This
study intends to examine how restaurant ratings on Zomato, specifically in the Navi Mumbai region, affect
consumers' preferences for eateries. The study examines the connection between patron evaluations, restaurant
evaluations, and purchasing preferences. The study combines a qualitative examination of customer reviews
from Zomato with a quantitative analysis of data gathered through questionnaire survey. The study shed light on
the variables that affect patrons' decisions when choosing a restaurant and the significance of patron reviews in
this process. This study will be helpful for restaurants operating on Zomato to understand how online reviews
plays a major part in the buying behaviour of a consumer and effective business development.
Keywords: Customer experience, Customer satisfaction, Buying preference, Customer value, Online reviews,
Customer reviews.
I. INTRODUCTION
In today's highly competitive marketplace, ensuring customer experience and satisfaction is no longer an
optional task but a necessity for any successful business. A customer's experience with a business plays a crucial
role in influencing their decision to buy, recommend, or return to the business. While positive experiences foster
customer loyalty and retention, negative experiences can adversely affect sales and result in negative word-of-
mouth. One of the crucial drivers of customer experience and satisfaction is the significance of customer reviews
in today's digital age. Consumers have access to a wealth of information and are likely to research products or
services online and read reviews before making a purchase. Positive reviews can enhance a business's reputation
and attract new customers, whereas negative reviews can harm the business's image and drive customers away.
Thus, it is imperative for businesses to actively monitor and respond to customer reviews to deliver the best
possible customer experience. Another significant factor that influences customer buying preference is the
customer value proposition. A customer's perception of value is based on what they believe they will receive in
exchange for their time, money, and effort. Businesses that provide high customer value propositions are more
likely to attract and retain customers. This can be achieved by offering high-quality products or services,
competitive pricing, personalized experiences, and exceptional customer service.Ensuring customer experience
and satisfaction, giving due importance to customer reviews, and offering a compelling customer value
proposition are all critical components of a successful business. By prioritizing these factors, businesses can build
a robust reputation, attract new customers, and retain existing ones. Ultimately, delivering a positive customer
experience is vital for any business that wants to flourish in today's competitive marketplace. Business profits
are directly influenced by customer experience and satisfaction, making them critical factors for companies to
prioritize. When customers are satisfied with a business's products or services, they are more likely to return
and recommend it to others, leading to increased revenue. Conversely, negative experiences can drive customers
to switch to competitors, resulting in a loss of revenue. Moreover, customer satisfaction can generate positive
word-of-mouth advertising, which can attract new customers and contribute to a business's success. Loyal
customers, who are more likely to purchase repeatedly and try new products or services, also boost revenue and
improve a company's bottom line. Managing online reputation is essential as customer reviews directly impact
purchase decisions. Positive reviews can enhance a business's reputation and increase sales, while negative
reviews can discourage potential customers. Therefore, actively seeking positive reviews is critical for
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businesses. Furthermore, customers value buying preference and are willing to pay more for higher quality or
more value-added products or services. Hence, understanding customer needs and providing value is crucial for
businesses to retain customers and increase profits. Businesses that prioritize customer satisfaction, manage
their online reputation, and provide value to their customers are more likely to see an increase in profits. On the
other hand, neglecting these factors can lead to customer loss and a decline in revenue. Therefore, companies
should invest in creating a positive customer experience to remain competitive and profitable.The significance
of online reviews in today's business landscape cannot be overstated. They have the power to greatly influence
a business's reputation, success, and bottom line. Positive reviews can attract new customers and boost sales,
while negative reviews can deter potential customers and harm a business's reputation. One of the primary
impacts of online reviews is on a business's reputation. With a vast majority of consumers relying on online
reviews to make informed purchase decisions, positive reviews can enhance customer trust and boost a
business's reputation. Conversely, negative reviews can lead to distrust among potential customers and harm a
business's reputation. Online reviews also play a crucial role in a business's visibility and search engine ranking.
Search engines like Google consider online reviews when ranking businesses in local search results, making
positive reviews a key factor in improving a business's online visibility and traffic to their website. Furthermore,
online reviews can have a direct impact on a business's revenue and profitability. Positive reviews can generate
more revenue by attracting new customers, while negative reviews can result in a decline in revenue as
customers turn to competitors. Online reviews can also help businesses to identify areas of strength and
weakness in their customer service strategy, leading to improved customer satisfaction and trust.Businesses can
also use online reviews as a valuable source of feedback to make informed decisions about their products,
services, and operations. Positive reviews can help to build brand loyalty and customer advocacy, while negative
reviews can hinder a business's ability to attract and retain top talent. Businesses should prioritize online
reputation management and strive to provide a positive customer experience that encourages customers to leave
positive reviews. By monitoring and responding to reviews, businesses can build trust with their customers,
improve their online reputation, and ultimately drive growth and success.
Table 1: Aspect of customer experience and satisfaction, importance of customer reviews and customer value
on buying preference
Aspect Customer Experience and Importance of Customer Value on Buying
Satisfaction Customer Reviews Preference
Description The overall impression a The degree to which a The perceived benefits a
customer has of a company customer considers the customer receives from a
based on their interactions with feedback of other product or service
the brand customers when making compared to its cost
purchasing decisions
Impact Can influence customer loyalty Can heavily influence Can impact whether a
and retention, as well as the purchasing decisions, customer feels they have
likelihood of positive word-of- particularly for online received a good deal and
mouth recommendations shoppers whether they are likely to
purchase from the company
again
Examples Positive experiences can include Positive reviews can Customer value can be
friendly and helpful customer include comments about increased through
service, easy-to-use website, the quality of the discounts, free shipping,
quick and efficient delivery. product, ease of ordering loyalty programs, and other
Negative experiences can and delivery, and overall benefits that make the
include long wait times, satisfaction with the purchase more worthwhile
unhelpful customer service, and purchase. Negative for the customer.
difficulty navigating a website. reviews can highlight
issues with the product
or service, slow delivery
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times, and poor
customer service.
Importance Essential for building a strong Increasingly important Important for customers to
customer base and generating in today's digital age, as feel they are getting a good
repeat business customers seek out deal and to continue doing
feedback from other business with the company
customers before in the future
making purchases
Methods of Customer satisfaction surveys, Sentiment analysis of Customer lifetime value
Analysis Net Promoter Score (NPS), customer reviews, (CLV) analysis, pricing
social media listening, customer review aggregation and analysis, conjoint analysis,
feedback forms, customer analysis, customer customer loyalty analysis
interviews and focus groups feedback surveys
Factors Quality of customer service, ease Credibility and Quality of the product or
that can of use of the product or service, trustworthiness of the service, level of
Affect availability and accessibility of reviews, volume and customization or
customer support, pricing and diversity of reviews, personalization,
value for money, reliability and relevance of the reviews competitive pricing,
consistency of the product or to the customer's needs, convenience and ease of
service recency of the reviews, access to the product or
the platform or website service, level of customer
where the reviews are support or after-sales
posted service
The With the growth of internet platforms like Zomato, which gives customers a practical way to obtain
information about restaurants, menus, and user reviews, the restaurant business has undergone a substantial
upheaval [1]. Customer reviews have grown in importance as a deciding element for customers choosing a
restaurant in this digital age [2,3]. Online reviews are becoming more widely used and significant as an impartial
source of product information. With feedback and online reviews, the Internet has enabled today's customer to
change oneself being a passive to active and knowledgeable consumer who can readily share his knowledge and
feelings related to a particular good or service with an endless number of customers worldwide [4-6]. When it
comes right down to reviews, buyers pay more attention to that since they want to learn about experience from
individuals like them. This is the primary reason why they might be the most effective marketing strategy for
businesses. Internet reviews might be precisely what that is required to drive a prospective consumer from
contemplation to purchase, since they are a vital component of shopping experience. In the last few years, there
has been a significant increase in the number of eateries in Navi Mumbai, a rapidly expanding urban area in
Maharashtra, India. Given the increased competition, it is crucial for restaurant operators to comprehend how
customer reviews affect their purchasing decisions, particularly on sites like Zomato [7-9]. For restaurant owners
and managers to increase sales and boost customer happiness, it is imperative that they comprehend the impact
of customer evaluations on purchasing choices. Understanding the elements that influence restaurant popularity
and customer reviews on the site can also enable Zomato to better serve its users and partners.The online food
delivery industry is rapidly growing across the world, and India is no exception [10-11]. With the emergence of
various online food delivery platforms like Zomato, Swiggy, Foodpanda, and others, people can easily order food
online and get it delivered to their doorstep. However, the success of these online food delivery platforms largely
depends on the perception and level of satisfaction of their customers [12]. Therefore, this literature review aims
to analyze the customer perception and level of satisfaction towards online food ordering services through
Zomato. Online reviews and star ratings available on Zomato significantly impact the willingness to purchase.
However, the research established moderators as choice indicators that entail information seeking, risk
reduction, seeking approval to visit a restaurant, reassurance to visit a restaurant, and indulging in its services.
Together as choice indicators, these variables significantly moderate the perception of the reviews, thus
generating purchase augmenting business [13-15]. Online customer reviews significantly influenced consumer
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buying behavior and those positive reviews had a greater impact than negative reviews [16-21]. Additionally, the
study found that consumers tended to trust reviews from other consumers more than they trusted marketing
messages from companies. Emerging technology helps in achieving the sustainable goals and decision making in
the various research fields [22-26]. Also, multi model transportation can be helpful to increase rapid delivery for
customer satisfaction [27]. Zomato make sure that customers get complete customer satisfaction, if we order
from them a hundred times, one or two times,it isn’t going to be a great experience and it is right for us to get
angry at them because we placed trust in their market place, and they are managing the marketplace for us, but
over the next few years they have to make sure that this one or two out of a hundred drops down to zero point
one out of hundred(0.1/100) and the rest of the great experiences that we have, the great experience we have
more than compensate for what went wrong and that’s how they think of customer satisfaction in their sector.
Following are the objective of the present study
1. To compare the impact of customer reviews on buying preference across Navi Mumbai.
2. To investigate how potential buyers construct their judgments in response to both favourable and
unfavourable evaluations.
3. To examine the link between customer quality and reviews and the restaurant’s overall rating on Zomato.
4. To identify the most commonly mentioned factors in customer reviews that influence restaurant selection on
Zomato.
II. METHODOLOGY
This study looks at the effect of internet product reviews on customer behaviour and purchasing decisions. The
survey was performed in the form of a questionnaire since the online approach addresses concerns of reach and
adaptability, saves money, saves time, and promotes the notion of a paperless society [28-31]. 100 Navi Mumbai
residents make up the sample size.Primary data: A questionnaire was created to gather information from users
of the Zomato application in order to analyses consumer satisfaction. primary information gathered from
respondents through a questionnaire primary information gathered from respondents through a questionnaire.
Secondary data: Online publications and internet searches were used to get secondary data. Pie charts were used
to analyses the data collected. Percentage analysis was used for analyzing primary data.Navi Mumbai is a rapidly
developing city located on the outskirts of Mumbai, India's financial capital. The city has a diverse population and
is known for its vibrant food culture, with numerous restaurants and food outlets serving a variety of cuisines.
The restaurant industry in Navi Mumbai is a significant contributor to the city's economy, with a wide range of
restaurants and food outlets catering to the diverse tastes and preferences of customers. The creation of new
residential and commercial sectors has led to a major increase in the city's population in recent years. Zomato,
one of the leading online food delivery and restaurant review platforms in India, has a significant presence in
Navi Mumbai. The platform allows customers to search for and order food from local restaurants and provides
them with access to restaurant menus, reviews, ratings, and other relevant information to help them make
informed choices. Customer reviews play a crucial role in the restaurant industry in Navi Mumbai, as they
provide valuable feedback to restaurant owners and managers and influence customers' buying preferences.
Negative reviews can have the opposite impact of what positive ones might, harming a restaurant's reputation
and driving away potential customers. Decision making with the help of new technology is important to solve the
socio-economic problems [31-36]. Therefore, restaurant owners and managers are increasingly focusing on
improving their online reputation and customer reviews to enhance their business performance [36-38]. They
are adopting various strategies such as improving the quality of food and service, engaging with customers
through social media, and incentivizing customers to leave reviews on online platforms like Zomato. The
restaurant industry in Navi Mumbai is expected to continue to grow, driven by factors such as increasing
urbanization, rising disposable incomes, and changing consumer preferences. As the industry evolves, customer
reviews on platforms like Zomato are likely to become even more critical in shaping customers' perceptions and
attitudes towards restaurants, and in influencing their buying preferences. One of the key factors that affect the
restaurant industry's performance in specific areas is the local population's demographic and socio-economic
characteristics. Factors such as age, income, and lifestyle preferences can significantly influence customers'
buying preferences and willingness to leave reviews on platforms like Zomato.Another critical factor to consider
is the level of competition in the local restaurant industry. In areas with a high concentration of restaurants,
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customers have more options to choose from, and competition for market share is more intense. In such areas,
customer reviews can play a critical role in differentiating one restaurant from another and attracting new
customers. Decision making with critical evaluation is a crucial factor [39-44]. The level of digital literacy and
smartphone penetration in specific areas is also a crucial factor to consider when analyzing the impact of
customer reviews on buying preferences from restaurants on Zomato. In areas with high levels of digital literacy
and smartphone penetration, customers are more likely to use online platforms like Zomato to search for and
order food from local restaurants. Lastly, local government policies and regulations can also affect the restaurant
industry's performance in specific areas. For example, zoning laws and health and safety regulations can affect
the number and types of restaurants operating in specific areas. Conducting a market analysis on the impact of
customer reviews on buying preferences from restaurants on Zomato with respect to area would require
examining various factors that affect the restaurant industry's performance in specific areas. These factors
include local population demographics, the level of competition, digital literacy and smartphone penetration, and
government policies and regulations.Due to the rapid rise in smartphone usage in India and the availability of
affordable choices, the market for online food delivery services is expanding. The increased internet usage
brought on by cheaper data prices is also beneficial to the industry. When large corporations expand outside of
their normal metro strongholds to smaller towns and cities, the company is pushing even further ahead. The
establishment and growth of delivery-only kitchens in regions with limited restaurant and cuisine options is
helping the industry expand in tier-2 and tier-3 cities. Leading companies' enhanced marketing initiatives are
also beneficial to the industry.The platform incentives, including memberships and discounts, which are luring
more customers to these online delivery platforms, are driving the industry. The sector's growth is being boosted
even more by the industry's rising investment and the expansion of the large companies' own delivery fleets. The
industry is being driven by the growing demand for quick and economical meals among busy white-collar
professionals. India's internet food industry is expanding due to a rise in the number of women entering the
workforce as well as the number of houses with two incomes that love eating out regularly. Consumer spending
is expected to be focused in the food, housing, transportation, and communication sectors in the future years,
with economic growth and increased family income driving the market.Younger individuals will become more
prevalent and have more disposable cash as they develop their eating habits, which will further encourage
industry growth. For the vast majority of individuals, placing an internet meal order only with sweep of a finger
is now second nature. There are several programs available to make people's lives simpler, especially considering
the vast majority of individuals live independently and work outside of their homes. Despite how healthy it would
be, owing to our busy schedules, we occasionally can't create our own meals.
A. Providing Feedback:
The fact that they give businesses useful feedback is a major additional factor in the significance of customer
evaluations. Businesses may learn what clients like and hate about their goods or services by reading reviews. In
order to better satisfy client expectations, they may also pinpoint areas where they need to develop and make
adjustments. Hence, in a market that is continuously evolving, consumer reviews may assist companies in
remaining competitive and relevant.
B. The Influence of Customer Reviews:
Customer reviews have a significant impact on consumer behavior. According to a study by Spiegel Research
Center, products with more than 50 reviews have a conversion rate that is 4.6% higher than products with fewer
than 5 reviews. The more reviews a product has, the more likely it is to be purchased. Positive reviews can act
as a form of social proof, building trust with potential customers and influencing their buying decisions. Negative
reviews, on the other hand, can have a detrimental effect on a business's reputation, dissuading potential
customers from making a purchase.
C. The Value of Customer Feedback:
Customer reviews provide valuable feedback to businesses on their products or services. By analyzing reviews,
businesses can gain insights into what customers like and dislike about their offerings. This feedback can be used
to make improvements to the product or service, enhancing the customer experience and increasing customer
satisfaction. In addition, customer feedback can help businesses identify areas where they excel and use this
information to differentiate themselves from their competitors.

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D. Influencing Buying Decisions:
Customer reviews can have a significant impact on buying decisions. Spiegel Research Center research found
that items with reviews are 270% more likely to be bought than those without evaluations. Good ratings can
motivate individuals to make a purchase, while negative reviews can dissuade them from doing so. Therefore,
businesses must monitor and manage their online reviews to ensure they are promoting a positive image and
reputation.
E. Differentiating from Competitors:
Another reason why customer reviews are important is that they can help businesses stand out from their
competitors. Positive reviews can provide a competitive advantage, and they can help businesses to differentiate
themselves in a crowded marketplace. Businesses that encourage and manage their reviews are more likely to
gain more visitors and rank higher on search engine results pages (SERPs).
III. RESULTS AND DISCUSSION
The primary and secondary data were analysed and represented in the subsequent section:
Data analysis and interpretation of how important are customer reviews to you when making a buying decision?
Based on the given data, it appears that a significant percentage of people (38%) consider customer reviews to
be extremely important when making a buying decision. Another sizeable portion (29%) considers reviews to
be important. Only 14% of the respondents considered customer reviews to be moderately important, while a
slightly lower percentage 14% considered reviews to be slightly important. Only a small minority of people 5%
did not consider customer reviews to be important at all. Based on the given data, it appears that a significant
percentage of people (38%) consider customer reviews to be extremely important when making a buying
decision.
Figure 1: How important are customer reviews to you when making a buying decision?
Another sizeable portion (29%) considers reviews to be important. Only 14% of the respondents considered
customer reviews to be moderately important, while a slightly lower percentage 14% considered reviews to be
slightly important. Only a small minority of people 5% did not consider customer reviews to be important at all.
Interpretation of How important are customer reviews when selecting a restaurant on Zomato?
Figure 2: how important are customer reviews when selecting a restaurant on Zomato?
The majority of respondents (51%) reported that customer reviews are extremely important when selecting a
restaurant on Zomato. This suggests that users heavily rely on the opinions and experiences of other customers
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before making a dining decision. A significant number of respondents (29%) reported that customer reviews are
important, further emphasizing the value placed on this feature by Zomato users. Only a small number of
respondents (6%) reported that customer reviews are not at all important, while 9% of respondents felt that
they were only moderately important. A further 5% of respondents felt that customer reviews were only slightly
important.Interpretation of how often do you read customer reviews before selecting a restaurant on Zomato?
Figure 3: How often do you read customer reviews before selecting a restaurant on Zomato?
The majority of respondents (38%) reported that they always read customer reviews before selecting a
restaurant, indicating that this feature is highly valued by Zomato users and is an important aspect of their
decision-making process. A significant number of respondents (33%) reported that they often read customer
reviews, suggesting that they place a high value on the opinions and experiences of other customers, but may not
do so for every restaurant they consider. A smaller number of respondents (19%) reported that they sometimes
read customer reviews, indicating that they may use this feature selectively or when they are unsure about a
particular restaurant. Only 5% of respondents reported that they never read customer reviews, while another
5% reported that they rarely do so.Interpretation of how much do customer reviews influence your final decision
when selecting a restaurant on Zomato?Interpretation of How much do customer reviews influence your final
decision when selecting a restaurant on Zomato?The majority of respondents (67%) reported that customer
reviews are extremely influential when making their final decision, indicating that positive reviews are a
significant factor in their restaurant selection process. A smaller number of respondents (14%) reported that
customer reviews are influential. Only 4% of respondents reported that customer reviews are not at all
influential. 9% of respondents felt that customer reviews are moderately influential, while a further 6% felt that
they were slightly influential.
Figure 4: Interpretation of how much do you rely on the overall rating of a restaurant on Zomato?
Figure 5: How much do you rely on the overall rating of a restaurant on Zomato?
The data shows that the majority of respondents (48%) always rely on the overall rating of a restaurant on
Zomato, indicating that the overall rating is an essential factor for many users when selecting a restaurant. 28%
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of respondents reported that they often rely on the overall rating, while 14% reported that they sometimes rely
on it. A small percentage of respondents (5%) reported that they never rely on the overall rating, while only 5%
reported that they rarely rely on it. Interpretation of how much weight do you give to negative reviews versus
positive reviews when making a decision?
Figure 6: How much weight do you give to negative reviews versus positive reviews when making a decision?
The data shows that the majority of respondents (62%) consider negative reviews to be extremely important
when making a decision about a restaurant, indicating that negative reviews carry significant weight in the
decision-making process for many users. 19% of respondents consider negative reviews to be moderately
important, while 9% consider positive reviews to be important. This suggests that both positive and negative
reviews are relevant factors for many users when making a decision about a restaurant. A small percentage of
respondents (3%) reported that negative reviews are not at all important, while 7% reported that positive
reviews are slightly important.Interpretation of overall, how would you rate your experience on Zomato?
Figure 7: Overall, how would you rate your experience on Zomato?

Based on the survey results, it appears that the majority of respondents had a positive experience on Zomato,
with 38% answering "Highly positive" and 24% answering "positive". This suggests that a significant portion of
users had a satisfactory experience on the platform. Additionally, 33% of respondents answered "neutral", which
could suggest that they neither had a positive nor a negative experience on Zomato. It is possible that these
respondents are either new users or have not used the platform enough to form a strong opinion. Only a small
percentage of respondents (3% and 2%) had a negative experience on the platform, answering "negative" and
“highly negative", respectively.
IV. DISCUSSION
The results of the data interpretation and analysis revealed that the restaurants should encourage customers to
leave reviews on Zomato and respond to both positive and negative feedback. Zomato should consider
implementing a feature that allows customers to filter reviews based on specific criteria, such as food quality or
service. Restaurants should focus on improving their overall rating by addressing common complaints
mentioned in negative reviews. Restaurants could offer special deals or promotions to customers who leave
reviews on Zomato, as a way to encourage more feedback and increase their overall rating.
V. CONCLUSION

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In conclusion, the study on the influence of customer reviews on restaurant Zomato purchase preferences in Navi
Mumbai offers important insights into the variables that affect customers' decisions when choosing a restaurant
on the platform. The survey's findings demonstrated the importance of customer reviews in the decision-making
process, with most respondents saying they heavily consider customer reviews before making a final choice. Also,
the study showed that nearly half of respondents always rely on a restaurant's total Zomato rating, which is an
important consideration for many consumers when choosing a restaurant. Negative reviews were discovered to
be highly influential in the decision-making process, according to the majority of respondents. The study's
conclusions have significant ramifications for Navi Mumbai restaurant owners and managers who want to use
Zomato to get in and keep patrons. Restaurant operators can raise their overall rating and raise their likelihood
of bringing in new customers by paying attention to customer evaluations and quickly responding to
unfavourable comments. Additionally, they can use the knowledge gleaned from client feedback to raise the
calibre of their offers and services, so improving the general consumer experience. Overall, the study emphasises
the significance of user reviews and ratings on Zomato and their substantial influence on purchasing behaviour.
Restaurant owners and managers in Navi Mumbai can use the findings of this study to design efficient marketing
plans and boost client happiness, which will enhance sales and revenue.
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