Crowdreviewing is the practice of gathering opinion or feedback from a large number of people, typically via the internet or an online community; a portmanteau of "crowd" and "reviews". Crowdreviewing is also often viewed as a form of crowd voting which occurs when a website gathers a large group's opinions and judgment. [1] The concept is based on the principles of crowdsourcing and lets users submit online reviews to participate in building online metrics that measure performance. By harnessing social collaboration in the form of feedback individuals are generally able to form a more informed opinion. [2] [3] [4] [5] [6]
In crowdreviewing the crowd becomes the source of information used in determining the relative performance of products and services. [7] As crowdreviewing focuses on receiving input from a large number of parties, the resulting collaboration produces more credible feedback compared to the feedback left by a single party. The responsibility of identifying strengths and weaknesses falls to multiple individuals which each have had their own experience rather than on a single individual. Buyers will therefore be more likely to trust the feedback of a collective group of people rather than a single individual. [8] [9]
The crowd consists of a number of different parties which have various interests in regards to the outcome produced. [10]
A potential customer of a product or service would have an interest in viewing information on how a particular product or service stands in terms of subjective or objective quality before making a purchasing decision. Potential customers may also be interested in leaving feedback on a particular product or service to explain why they did not make their purchase. [11] [12] [13]
Customers of products and services are a primary party in the process of reviewing. Customers are closely connected to the process as they would have first-hand experience with a product and service. Their primary role would be detailing their experiences with the product or service. A customer's interest in crowdreviewing would stem from an interest in showing their appreciation towards the quality of a product or service or in voicing their concerns or disappointment in a product or service. [1] [6]
Sellers usually get their satisfied customers involved in leaving reviews for their products and services. A seller has an interest in having positive feedback on display as a means to influence potential buyers. [2] [3] [4] [5] [14]
Competitors would have an interest in reviewing feedback from the crowd as a means of obtaining competitive intelligence. [2] [4]
There may be other audiences involved in the process such as employees, suppliers, partners, and other relevant parties. [15]
There are a number of benefits to the different parties which make up the crowd. Potential buyers are able to obtain information on products and services prior to making a purchase. Those which have already bought or used the product or service are able to post experiences both positive and negative in order to inform other potential buyers. As an additional benefit to the buyers, buyers may also post negative reviews in hopes of resolving their negative experiences with their seller. Sellers have the benefits of receiving positive feedback and also potentially resolving issues with dissatisfied customers. Competitors are able to learn more about what their competition is doing in order to improve their own products and services. [16] [17] [18]
In addition to the benefits associated with crowdreviewing, there are a number of risks and challenges to overcome. For potential buyers there is always the risk that reviews may be sourced by the vendors themselves or other parties paid to leave a specific type of feedback on a product or service. Sellers have the possibility of receiving negative reviews which may in turn negatively influence their reputation and affect their bottom line revenue numbers. Competitors, while enjoying the benefit of being able to learn from their competitors are also subject to their competitors learning about their positives and negatives. [17] [19]
One of the major factors influencing crowdreviewing is the size of the crowd involved. A crowdreviewing venture is positively influenced by having a large number of parties leave reviews and feedback on products and services. In cases where a small number of individuals leave their feedback, more weight is placed on an individual reviewer or opinion and could therefore be of minimal value to potential customers. A smaller sample of reviews may also exhibit bias towards or against the product or service. [20]
A common limitation of allowing all parties to have an opportunity to review a product or service may involve having reviews written without a minimal or meaningful understanding of the product or service. A lack of industry or specialized knowledge may in turn minimize the value of a review or potentially inversely affect what would be considered a fair review. [20]
With allowing multiple parties to review a product or service there is a possibility that a seller may attempt to manipulate reviews in a number of ways. Sellers may hire third parties or create fake identities in order to leave positive reviews on their product or service. They may also do the same to create negative reviews on competing products and services. [21]
Customers which have a negative experience with a product or service are more likely to offer a their review in an effort to resolve buyer's remorse in comparison to those which have had a positive experience. [22]
Those reading reviews on products and services are likely to view reviews which only tell one side to the story. This is a disadvantage to both a potential customer and seller as the review may not tell the other side of a story which may be based on a misunderstanding. [23]
In economics, a network effect is the phenomenon by which the value or utility a user derives from a good or service depends on the number of users of compatible products. Network effects are typically positive feedback systems, resulting in users deriving more and more value from a product as more users join the same network. The adoption of a product by an additional user can be broken into two effects: an increase in the value to all other users and also the enhancement of other non-users' motivation for using the product.
Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale. A period during which goods are sold for a reduced price may also be referred to as a "sale".
Pricing is the process whereby a business sets the price at which it will sell its products and services and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the marketplace, competition, market condition, brand, and quality of the product.
In theories of competition in economics, a barrier to entry, or an economic barrier to entry, is a fixed cost that must be incurred by a new entrant, regardless of production or sales activities, into a market that incumbents do not have or have not had to incur. Because barriers to entry protect incumbent firms and restrict competition in a market, they can contribute to distortionary prices and are therefore most important when discussing antitrust policy. Barriers to entry often cause or aid the existence of monopolies and oligopolies, or give companies market power. Barriers of entry also have an importance in industries. First of all it is important to identify that some exist naturally, such as brand loyalty. Governments can also create barriers to entry to meet consumer protection laws, protecting the public. In other cases it can also be due to inherent scarcity of public resources needed to enter a market.
Reputation management, originally a public relations term, refers to the influencing, controlling, enhancing, or concealing of an individual's or group's reputation. The growth of the internet and social media led to growth of reputation management companies, with search results as a core part of a client's reputation. Online reputation management, sometimes abbreviated as ORM, focuses on the management of product and service search engine results.
A business can use a variety of pricing strategies when selling a product or service. To determine the most effective pricing strategy for a company, senior executives need to first identify the company's pricing position, pricing segment, pricing capability and their competitive pricing reaction strategy. Pricing strategies and tactics vary from company to company, and also differ across countries, cultures, industries and over time, with the maturing of industries and markets and changes in wider economic conditions.
Etsy, Inc. is an American e-commerce company with an emphasis on the selling of handmade or vintage items and craft supplies. These items fall under a wide range of categories, including jewelry, bags, clothing, home decor, religious items, furniture, toys, art, as well as craft supplies and tools. Items described as vintage must be at least 20 years old. The site follows in the tradition of open craft fairs, giving sellers personal storefronts where they list their goods for a fee of US$0.20 per item. Beginning in 2013, Etsy allowed sellers to sell mass-manufactured items.
Once the strategic plan is in place, retail managers turn to the more managerial aspects of planning. A retail mix is devised for the purpose of coordinating day-to-day tactical decisions. The retail marketing mix typically consists of six broad decision layers including product decisions, place decisions, promotion, price, personnel and presentation. The retail mix is loosely based on the marketing mix, but has been expanded and modified in line with the unique needs of the retail context. A number of scholars have argued for an expanded marketing, mix with the inclusion of two new Ps, namely, Personnel and Presentation since these contribute to the customer's unique retail experience and are the principal basis for retail differentiation. Yet other scholars argue that the Retail Format should be included. The modified retail marketing mix that is most commonly cited in textbooks is often called the 6 Ps of retailing.
Crowdsourcing involves a large group of dispersed participants contributing or producing goods or services—including ideas, votes, micro-tasks, and finances—for payment or as volunteers. Contemporary crowdsourcing often involves digital platforms to attract and divide work between participants to achieve a cumulative result. Crowdsourcing is not limited to online activity, however, and there are various historical examples of crowdsourcing. The word crowdsourcing is a portmanteau of "crowd" and "outsourcing". In contrast to outsourcing, crowdsourcing usually involves less specific and more public groups of participants.
Co-creation, in the context of a business, refers to a product or service design process in which input from consumers plays a central role from beginning to end. Less specifically, the term is also used for any way in which a business allows consumers to submit ideas, designs or content. This way, the firm will not run out of ideas regarding the design to be created and at the same time, it will further strengthen the business relationship between the firm and its customers. Another meaning is the creation of value by ordinary people, whether for a company or not. The first person to use the "Co-" in "co-creation" as a marketing prefix was Koichi Shimizu, professor of Josai University, in 1979. In 1979, "co-marketing" was introduced at the Japan Society of Commerce's national conference. Everything with "Co" comes from here.
Value-based price, also called value-optimized pricing or charging what the market will bear, is a market-driven pricing strategy which sets the price of a good or service according to its perceived or estimated value. The value that a consumer gives to a good or service, can then be defined as their willingness to pay for it or the amount of time and resources they would be willing to give up for it. For example, a painting may be priced at a higher cost than the price of a canvas and paints. If set using the value-based approach, its price will reflect factors such as age, cultural significance, and, most importantly, how much benefit the buyer is deriving. Owning an original Dalí or Picasso painting elevates the self-esteem of the buyer and hence elevates the perceived benefits of ownership.
A touchpoint can be defined as any way consumers can interact with a business organization, whether person-to-person, through a website, an app or any form of communication. When consumers connect with these touchpoints they can consider their perceptions of the business and form an opinion.
Bidtopia was an e-commerce site originally launched in 2007 as a private auction site for Warehouse86 Ventures, LLC. Paul St. James, an owner of Bargainland, which had been the largest PowerSeller on eBay that same year, started the new enterprise in response to changes in eBay policies regarding high volume sales of brand name merchandise and restrictions on sellers with poor customer feedback. Bidtopia suffered the loss of one of its three distribution centers in 2008, and went offline and possibly out of business in early 2010.
Customer experience, sometimes abbreviated to CX, is the totality of cognitive, affective, sensory, and behavioral customer responses during all stages of the consumption process including pre-purchase, consumption, and post-purchase stages.
Customer to customer markets provide a way to allow customers to interact with each other. Traditional markets require business to customer relationships, in which a customer goes to the business in order to purchase a product or service. In customer to customer markets, the business facilitates an environment where customers can sell goods or services to each other. Other types of markets include business to business (B2B) and business to customer (B2C).
Pay what you want is a pricing strategy where buyers pay their desired amount for a given commodity. This amount can sometimes include zero. A minimum (floor) price may be set, and/or a suggested price may be indicated as guidance for the buyer. The buyer can select an amount higher or lower than the standard price for the commodity. Many common PWYW models set the price prior to a purchase, but some defer price-setting until after the experience of consumption. PWYW is a buyer-centered form of participative pricing, also referred to as co-pricing.
Word-of-mouth marketing is the communication between consumers about a product, service, or company in which the sources are considered independent of direct commercial influence that has been actively influenced or encouraged as a marketing effort. While it is difficult to truly control word of mouth communication, there are three generic avenues to 'manage' word of mouth communication for the purpose of word-of-mouth marketing, including:
There are many types of e-commerce models, based on market segmentation, that can be used to conducted business online. The 6 types of business models that can be used in e-commerce include: Business-to-Consumer (B2C), Consumer-to-Business (C2B), Business-to-Business (B2B), Consumer-to-Consumer (C2C), Business-to-Administration (B2A), and Consumer-to-Administration
A user review is a review conducted by any person who has access to the internet and publishes their experience to a review site or social media platform following product testing or the evaluation of a service. User reviews are commonly provided by consumers who volunteer to write the review, rather than professionals who are paid to evaluate the product or service. User reviews might be compared to professional nonprofit reviews from a consumer organization, or to promotional reviews from an advertiser or company marketing a product. Growth of social media platforms has enabled the facilitation of interaction between consumers after a review has been placed on online communities such as blogs, internet forums or other popular platforms.
Crowdshipping, sometimes referred to as crowd logistics, applies the concept of crowdsourcing to the personalized delivery of freight. Crowdshipping can be conceived as an example of people using social networking to behave collaboratively and share services and assets for the greater good of the community, as well as for their own personal benefit.
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