Effect of Online Reviews and Ratings on Consumer Purchase Decisions

Abstract

In the digital economy, one of the most important elements influencing customer purchasing decisions is now online reviews and ratings. They serve as social evidence, assisting customers in assessing products and lowering perceived risk and information asymmetry. This study uses primary data gathered from 210 respondents via a structured questionnaire to examine how online reviews and ratings affect consumer purchasing decisions. The data was analyzed using multiple regression, correlation analysis, and descriptive statistics. The results show that perceived credibility and review valence the positive or negative aspects of reviews have a big impact on consumers' intentions to buy. Star ratings are also significant, although their influence is lessened when review trustworthiness is taken into account.

               The effects of review valence on purchase intention is strengthened by the positive moderating effect of review volume. According to sub-group analysis, star ratings have more sway over low-involvement products like fashion, whereas reviews and credibility are more important in high-involvement product categories like electronics. The study emphasizes how crucial thorough, reliable reviews are to building consumer trust and recommends that e-commerce platforms give top priority to systems that guarantee the legitimacy and visibility of excellent ratings. In addition to pointing up areas for further study, the results have important ramifications for online platforms, merchants, and digital marketers.