\ Variable: Presence of Reviews 1. Displaying Reviews Can THE FINANCIAL IMPACT OF Increase Conversion by 270% DISPLAYING REVIEWS It may seem intuitive that the availability of reviews will e make a consumer more likely to purchase a product. But s a the magnitude of that impact may surprise many people. re c n I Based on data from the high-end gift retailer, we found on i s r that as products begin displaying reviews, conversion rates e v escalate rapidly. The purchase likelihood for a product with on five reviews is 270% greater than the purchase likelihood C of a product with no reviews. 0 5 10 15 20 Number of Reviews Our research found that as products begin displaying reviews, conversion rates escalate. Having five reviews causes purchase likelihood to increase by a factor of nearly 4x. Askalidis, Y., and Malthouse, E. C. (2016). “The Value of Online Customer Reviews.” th RecSys 2016 - Proceedings of the 10 ACM Conference on Recommender Systems, 155-158. Association for Computing Machinery, Inc. 6 \ How Online Reviews Influence Sales \ spiegel.medill.northwestern.edu