Mean More with Mean Ratings

Your shoppers, whether beginning their search in-store or online, are likely to look for ratings when comparing alternatives. An item with an average rating of four stars should prevail over one with an average rating of two stars, all else considered, and the customer will probably feel more satisfied after having made such a four-star choice.
     But does the format of the ratings make a difference in purchase intentions? Is it best for the retailer to present an average four-star rating in a mean format—just the four stars; in a distribution format—the percentage of ratings at each point on the scale from one to five, let’s say; or as both the mean and the distribution?
     Researchers at New Mexico State University and University of Nevada-Reno find that the mean format is the most likely of the three to lead to purchase of an alternative under consideration. The reason is that, of the three formats, the mean format is easiest for the shopper to mentally process, what is easier to process leaves us with a more positive feeling, and positive feelings lead to buying behavior.
     Ease of processing is especially important with rating comparisons because the shopper’s choices are not always straightforward. Consumer psychologists distinguish between “maximizers,” who want to choose the best possible alternative, and “satisficers,” who are pleased to settle for what’s good enough. Maximizers are usually willing to pay more money than satisficers and to spend more time deciding. But some maximizers are bargain hunters, searching for a deal on the very best. Other maximizers are happy to pay top dollar if they can depend on a trusted salesperson to quickly point them toward perfection.
     Researchers at Virginia Tech and University of Michigan showed that another complication arises from how maximizers define “very best.” One group of shoppers were asked to express degree of preference for an item rated 60 on a 100-point scale when all the other choices are rated at no higher than 50. For another group of shoppers, the focus item was rated at 80 and the alternatives topped out at a rating of 95.
     It might seem that maximizers in the “80 versus 95” group would express a stronger preference for their focus item than did maximizers in the “60 versus 50” group. But it turned out the other way around. Maximizers pay attention to relative in addition to absolute ratings.

For your success: Retailer’s Edge: Boost Profits Using Shopper Psychology

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