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Oct 24, 2011 · When the dust settled, Luca determined that each ratings star added on a Yelp review translated to anywhere from a 5 percent to 9 percent effect on revenues (depending on the control variables and means of estimation)—more than he had expected.
Oct 5, 2011 · A new study by Harvard Business School assistant professor Michael Luca finds that a positive evaluation on the popular review site Yelp.com does, in fact, appear to lead to increased business for restaurants. “Reviews, Reputation and Revenue: The Case Of Yelp.com,” analyzes review data from both Yelp and all Seattle restaurants from 2003 ...
Discover in-depth analysis of Yelp's pros and cons. Learn how Yelp can impact your business, how to handle negative reviews, and explore alternatives.
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the impact of consumer reviews on the restaurant industry: (1) a one-star increase in Yelp rating leads to a 5-9 percent increase in revenue, (2) this effect is driven by independent restaurants; ratings do not affect restaurants with chain affiliation, and (3) chain restaurants have declined in market share as Yelp penetration has increased.
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May 29, 2024 · Negative reviews can severely affect businesses, as 92% of consumers are less likely to engage with companies that have bad reviews on Yelp. This highlights the importance of maintaining a positive reputation on the platform.
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Jan 24, 2024 · Talk to any Yelp users and they'll tell you that lower ratings will turn them off from visiting a local business. In contrast, higher Yelp ratings make them more likely to try out someplace new. If you're a business owner or restaurant operator, this is good news.