Customer reviews are becoming a fixture on retail and consumer brand websites, with over 70% of retailers planning to feature them by the end of the year. The accelerated adoption of customer reviews indicates a more enlightened approach to handling negative comments, that is, the acknowledgment that occasional negative reviews do not hurt sales.
Under which of the following conditions is the above strategy likely to backfire?The strategy is to allow customer reviews, including some negative ones, because
occasional negative comments do not hurt sales. So it will backfire when the negative comments are no longer occasional and instead become common enough to damage buyer confidence.
(A) The quality of the product in question is so poor that a customer is not likely to buy it in the first place.
This is not the best answer. If the product is already so poor that customers would not buy it anyway, the review strategy is not really what is causing the backfire.
(B) There are frequent negative reviews for a product.
This is correct.
The strategy is based on the idea that only occasional negative reviews are harmless. If negative reviews are frequent, that condition no longer holds, and the review feature is likely to hurt sales.
(C) The 20% of the retailers who do not launch this feature decide to offer huge discounts on their products.
This may affect competition, but it does not show that the review strategy itself backfires.
(D) The customers of a product never come to know about the existence of this feature on the product website.
If customers do not know about the feature, the strategy does not backfire; it just has little or no effect.
(E) It costs retailers a considerable sum of money to implement this feature on their respective websites.
This concerns cost, not whether the strategy backfires by harming sales through negative reviews.
Answer: (B)