In: Economics
Do consumers believe that information from product reviews and opinion leaders are more credible than advertisement from companies? Why or why not?
I think consumers perceive product reviews and opinion leaders to be a more credible source of information than advertisements. Advertisements are created by professionals to exploit the emotions of consumers and create a suitable brand image. Advertisements are created and distributed by the company itself or an advertising agency on the behalf of the company. Therefore, consumers are aware of the fact that advertisements would be manipulative and are not supposed to reflect a true and fair picture of the products. On the other hand, product reviews and opinions are independent third parties who do not have any direct interest in praising or criticising the products. The reviews and opinions are mainly based on first-hand user experience. In addition, advertising is a single and centralized source of information. On the contrary, reviews and opinions are given by many and independent parties, which make it a more credible source of information.