Dr. D. Y.

Patil Vidyapeeth, Pune

(Deemed To Be University)

GLOBAL BUSINESS
SCHOOL & RESEARCH
CENTRE
RESEARCH PROJECT

Name: Prajjwal Tiwari

Roll No: HR24
Class: MBA (1st Year) - Div B
Subject: Research Methodology for Managers

Submitted to: Prof. Vatsala Manjunath

2 Research Project- Role of Customer Reviews in online purchasing decisions- Data Analysis

Title: The Role of Customer Reviews in Online Purchasing Decisions.

Objectives:
1. Understand how online customer reviews influence the perceptions, attitudes, and
behaviours of online shoppers.
2. Identify the factors that affect the credibility and usefulness of customer reviews in
online shopping.
3. Examine the relationship between the characteristics of customer reviews (such as star
ratings, textual content, and sentiment) and consumers' purchase decisions.

Age:
Age No. Of Respondents Percentage
<18 3 6.1%
18-25 39 79.6%
25-45 3 6.1%
>45 4 8.2%
Total 49

Interpretation:
Out of 49 respondents 79.6% i.e., 39 Consumers are 18-25 age, 8.2% i.e., 4 Consumers are
25-45 age, 6.1% i.e., 6 Consumers are <18 and >45 age. It is observed that the majority of the
respondents are young generation who are students.
3 Research Project- Role of Customer Reviews in online purchasing decisions- Data Analysis

Gender:
Gender No. Of Respondents Percentage
Male 32 65.3%
Female 17 34.7%
Total 49

Interpretation:
Out of 49 respondents 65.3% i.e., 32 consumers are Male, 34.7% i.e., 17 consumers are
female. It is observed that majority of the respondents are male. Male population often go for

Your family annual income (in Rs.):

Your family annual income (in Rs.): Income Percentage

<2,00,000 6 12%
2,00,000-4,00,000 11 22%
4,00,000-6,00,000 14 29%
>6,00,000 18 37%
4 Research Project- Role of Customer Reviews in online purchasing decisions- Data Analysis

Total 49

Income
<2,00,000

12% 2,00,000-4,00,000

4,00,000-6,00,000
37%

22% >6,00,000

29%

Interpretation:
Out of 49 respondents 37% respondents i.e., 18 respondents have family income >6,00,000.
29% respondents i.e., 14 respondents have family income 4,00,000-6,00,000. 22%
respondents i.e., 11 respondents have family income 2,00,000-4,00,000. 12% respondents i.e.,
6 respondents have family income <2,00,000. The major online purchases are done by the
people belonging to high income group.

1. I read customer reviews before making an online purchase

I read customer reviews No. of respondents Percentage

before making an
online purchase.
Strongly Agree 29 59.2%
Agree 13 26.5%
Neutral 3 6.1%
Disagree 1 2%
Strongly Disagree 3 6.1%
Total 49 100.0%
5 Research Project- Role of Customer Reviews in online purchasing decisions- Data Analysis

Interpretation:
Based on the survey results, it can be concluded that a majority of the respondents
strongly agree that they read customer reviews before making an online purchase, with
59.2% of the respondents i.e., 29 respondents falling under this category. Additionally,
26.5% of the respondents (13 respondents) agree with the statement, while only a small
percentage disagree or strongly disagree 2% & 6.1% respectively. A small number of
respondents 6.1% indicated that they were neutral on the issue.

2. I always consider the customer reviews to carry my purchase decisions.

 I always consider the No. of respondents Percentage

customer reviews to
carry my purchase
decisions.
Strongly Agree 22 44.9%
Agree 13 26.5%
Neutral 9 18.4%
Disagree 3 6.1%
Strongly Disagree 2 4.1%
Total 49 100.0%

Interpretation:
Based on the data obtained from the respondents, it can be concluded that a significant
portion of the respondents strongly agree or agree that they consider customer reviews when
making purchase decisions (44.9% and 26.5% respectively), a considerable number of
respondents also indicated that they are neutral 18.4%. A small percentage disagreed (6.1%)
or strongly disagreed (4.1%) that they always consider customer reviews in their purchase
decisions.
6 Research Project- Role of Customer Reviews in online purchasing decisions- Data Analysis

It appears that while customer reviews are an important factor for many respondents, they
may not be the sole determinant of their purchasing decisions.

3. Negative reviews of a product have impacted my purchase decision.

Negative reviews of a No. of respondents Percentage

product have impacted
my purchase decision
Strongly Agree 21 42.9%
Agree 9 18.4%
Neutral 13 26.5%
Disagree 4 8.2%
Strongly Disagree 2 4.1%
Total 49 100.0%
7 Research Project- Role of Customer Reviews in online purchasing decisions- Data Analysis

Interpretation:
Out of 49 respondents participating in the survey it can be concluded that a majority of the
respondents indicated that negative reviews of a product have impacted their purchase
decision to some extent. 42.9% of the respondents strongly agreed with this statement, while
18.4% agreed. Some respondents answers conclude that negative reviews of a product never
impacted their opinions on a product some disagreed (8.2%) and some strongly disagreed
(4.1%).
It appears that negative reviews do play a role in influencing the purchasing decisions of
many consumers, but their impact may vary depending on the individual's perception of the
reviews and other factors.

4. Customer reviews are trustable

Customer reviews are No. of respondents Percentage

trustable.
Strongly Agree 10 20.4%
Agree 14 28.6%
Neutral 19 38.8%
Disagree 5 10.2%
Strongly Disagree 1 2%
Total 49 100.0%
8 Research Project- Role of Customer Reviews in online purchasing decisions- Data Analysis

Interpretation:
Out of 49 respondents 20.4% strongly agreed that customer reviews are trustable, and 28.6%
agreed, a significant number of respondents 38.8% indicated that they were neutral on the
issue, 10.2% disagreed that customer reviews are trustable, while only 2% strongly disagreed.

It appears that while a majority of respondents did not express a strong opinion on the
trustworthiness of customer reviews, a significant number do believe that they can be trusted.
However, a notable minority of respondents do not believe that customer reviews are
trustworthy.

5. I always write customer review for products I purchased online.

One can differentiate No. of respondents Percentage

between fake and
genuine reviews.
Strongly Agree 11 44.9%
Agree 11 26.5%
Neutral 16 18.4%
Disagree 10 6.1%
Strongly Disagree 1 4.1%
Total 49 100.0%

Interpretation:
9 Research Project- Role of Customer Reviews in online purchasing decisions- Data Analysis

Out of 49 respondents, 28.6% of the respondents disagreed with the statement, while 20.4%
strongly disagreed, 26.5% of the respondents were neutral on the issue, 16.3% strongly
agreed and 8.2% agreed indicated that they always write customer reviews for online
purchases.
It appears that writing customer reviews is not a common practice among the survey
respondents, with only a minority indicating that they always write reviews.

6. One can differentiate between fake and genuine reviews.

One can differentiate No. of respondents Percentage
between fake and
genuine reviews.
Strongly Agree 11 44.9%
Agree 11 26.5%
Neutral 16 18.4%
Disagree 10 6.1%
Strongly Disagree 1 4.1%
Total 49 100.0%

Interpretation:
Out of 49 respondents, it was observed that 44.9% of the respondents strongly
agreed that one can differentiate between fake and genuine reviews, and 26.5%
agreed, a significant number of respondents (18.4%) indicated that they were
10 Research Project- Role of Customer Reviews in online purchasing decisions- Data Analysis

neutral on the issue, 6.1% disagreed and only 4.1% strongly disagreed with the
statement.

Overall, it appears that while a majority of respondents believe that it is possible to

differentiate between fake and genuine reviews, a significant number do not hold a
strong opinion on the matter, and a smaller minority do not believe that it is
possible.

7. Reviews by verified purchasers affect my decision to purchase particular

product online.

Reviews by verified No. of respondents Percentage

purchasers affect my
decision to purchase
particular product
online.
Strongly Agree 15 30.6%
Agree 19 38.8%
Neutral 9 18.4%
Disagree 2 4.1%
Strongly Disagree 4 8.2%
Total 49 100.0%

Interpretation:
Out of 49 respondents, 38.8% of the respondents agreed and 30.6% strongly agreed that
reviews by verified purchasers affect their decision to purchase a particular product online,
4.1% disagreed and 8.2% strongly disagreed indicated that such reviews do not have an
impact on their purchase decisions. 18.4% were neutral.
11 Research Project- Role of Customer Reviews in online purchasing decisions- Data Analysis

It appears that reviews by verified purchasers are an important factor in the purchase
decisions of a majority of the survey respondents.

8. Not all products with high customer ratings necessarily turn out to be good.

Not all products with No. of respondents Percentage

high customer ratings
necessarily turn out to
be good.
Strongly Agree 16 32.7%
Agree 15 30.6%
Neutral 10 20.4%
Disagree 6 12.2%
Strongly Disagree 2 4.1%
Total 49 100.0%

Interpretation:
Out of 49 respondents 32.7% of the respondents strongly agreed and 30.6% agreed with the
statement, 20.4% of the respondents were neutral on the issue, 12.2% disagreed with the
statement, and only 4.1% strongly disagreed.
It appears that a majority of the respondents believe that high customer ratings do not
necessarily guarantee that a product is good, with a significant number indicating that they
strongly agree or agree with this statement.
9. Price category for which I do not purchase an item without checking customer
reviews (in Rs.)
12 Research Project- Role of Customer Reviews in online purchasing decisions- Data Analysis

Price category for No. of respondents Percentage

which I do not purchase
an item without
checking customer
reviews (in Rs.)
<500 16 32.7%
500-1000 13 26.5%
1000-5000 12 24.5%
>5000 8 16.3%
Total 49 100.0%

Interpretation:
Out of 49 respondents those who have a price category threshold, the most common
threshold was less than Rs. 500, with 32.7% of respondents indicating this category.
The next most common threshold was Rs. 500-1000, with 26.5% of respondents
indicating this category. 24.5% of respondents indicated a threshold of Rs. 1000-5000,
and only 16.3% of respondents had a threshold greater than Rs. 5000.

It appears that the majority of respondents value customer reviews as an important

factor in their purchase decisions, regardless of the price category.

10. Product categories for which I will look for customer review before making a
purchase.
13 Research Project- Role of Customer Reviews in online purchasing decisions- Data Analysis

Product categories for No. of respondents Percentage

which I will look for
customer review before
making a purchase.
Electronics, Apparel, 5 10.2%
Personal Care Items,
Groceries, Food
Electronics, Apparel, 4 8.2%
Personal Care Items,
Food
Electronics, Apparel, 1 2%
Groceries, Food
Electronics, Apparel, 4 8.2%
Personal Care Items
Electronics, Personal Care 2 4.1%
Items, Food
Electronics, Apparel 4 8.2%
Electronics, Personal Care 6 12.2%
Items
Electronics, Groceries 11 22.4%
Electronics 7 14.3%
Groceries 3 6.1%
Food 1 2%
Total 49
14 Research Project- Role of Customer Reviews in online purchasing decisions- Data Analysis

Interpretation:
Out of 49 respondents, it seems that the majority of respondents (around 50%) will
look for customer reviews before making a purchase in the electronics category,
around 20-25% will look for reviews before purchasing groceries or apparel.
Personal care items and food were also mentioned as categories for which some
respondents would seek out reviews, but to a lesser extent. It's worth noting that a
small percentage of respondents (4.1%) indicated that they would not look for
reviews before making a purchase in any category.

Findings:
1. From the demographics part it was found that male population is in
majority in terms of those who read more customer reviews and do
online purchasing.
2. Most respondents 85.7% agreed or strongly agreed that they read
customer reviews before making an online purchase.
3. A majority of respondents 71.4% considered customer reviews when
making a purchase decision, although there were some neutral or
negative responses as well.
4. A significant proportion of respondents 61.2% said that negative
reviews had impacted their purchase decision.
5. The trustworthiness of customer reviews was more mixed, with only
49% of respondents indicating that they found them to be trustable.
6. Fewer than 25% of respondents said that they always or usually write
customer reviews for products they purchased online.
7. Respondents were generally confident in their ability to differentiate
between fake and genuine reviews, although there were some who
disagreed.
8. Reviews by verified purchasers were seen as influential by a majority
of respondents (69.4%).
15 Research Project- Role of Customer Reviews in online purchasing decisions- Data Analysis

9. Many respondents (63.3%) agreed that not all products with high
customer ratings necessarily turn out to be good.
10.Respondents most commonly said that they would check customer
reviews for items priced under Rs. 500 (32.7%).
11.Electronics and groceries were the most commonly mentioned product
categories for which respondents would look for customer reviews
before making a purchase.

Conclusions:
On the careful study of the survey, it was observed that A majority of
respondents said that they read customer reviews before making an
online purchase and consider them while making their decisions. A
majority of respondents indicated that negative reviews of a product
have impacted their purchase decisions.

However, there was some scepticism around the trustworthiness of

customer reviews, with a significant number of respondents indicating a
neutral or negative opinion on this matter. Similarly, not all respondents
believed that they could differentiate between fake and genuine reviews.

The price range for which respondents felt they needed to check customer
reviews before making a purchase was relatively evenly distributed
across the categories of <500, 500-1000, 1000-5000, and >5000.
However, a majority of respondents indicated that they would look for
customer reviews before purchasing electronics.
16 Research Project- Role of Customer Reviews in online purchasing decisions- Data Analysis

Recommendations:

It is recommended that online retailers should prioritize customer reviews

on their websites and should encourage the verified purchasers to leave
review.

Manufacturers and retailers should discard the fake reviews and must not
include fake reviews for their products.

Retailers should educate their customers on differentiating between

genuine and fake reviews.

Limitations:
1. The sample size of 49 respondents is relatively small and may not be
representative of the larger population. Therefore, the results should be
interpreted with caution.
2. The respondents who chose to participate in the survey may have
different characteristics and behaviours compared to those who did not
participate. This could result in a biased sample.
3. The survey only focused on online purchasing behaviour and customer
reviews. Other factors that may influence purchasing decisions, such as
brand loyalty, advertising, and personal preferences, were not explored.
4. Respondents may have provided answers that they believed were socially
acceptable, rather than reflecting their actual behaviour or opinions.