Stars beat stats when it comes to shopping decisions
A new UBC study found that the format of product ratings—stars versus numbers—significantly affects consumer perceptions and purchasing behaviour.
If you were choosing between a blender rated 3.5 out of five points, or one with three and a half stars, which would you pick?
According to a new study from UBC Sauder School of Business, you’re more likely to go for the stars, even though both ratings mean the same thing.
Lead author Dr. Deepak Sirwani and colleagues from Cornell University have discovered that the format of product ratings—stars versus numbers—significantly affects consumer perceptions and purchasing behaviour.
Cognitive biases drive perceptions
As Dr. Sirwani explains, if the average star rating from customers lands between whole numbers and we see half a star, the “visual completion effect” causes our brains to instinctively fill out the other half. We perceive the product as rated more highly than it actually is.
Numerical ratings suffer from the “left-digit effect.” When we see 3.5, our brains lock on to the first digit we see (3) and we perceive the product as worse than it is. (It’s also why retailers price items at $3.99 rather than $4.)
What it means for business
The study found that consumers will pay more for products with star ratings than products with numerical ratings even when the rating is the same. Previous research has shown that even a 0.2 increase in a product rating can boost sales by as much as 200 per cent.
“Ratings matter, and platforms should probably think about it more carefully than they have,” said Dr. Sirwani. “Stars are overestimated and numbers are underestimated, so based on their objectives, platforms should choose wisely.”
Media interested in interviewing Dr. Sirwani can contact Erik Rolfsen at erik.rolfsen@ubc.ca.
