Question
Report cards and certification are tools to help customers identify quality products. Ratings are important among restaurant and hospitality industries, e.g. Michelin stars and hotel's
Report cards and certification are tools to help customers identify quality products. Ratings are important among restaurant and hospitality industries, e.g. Michelin stars and hotel's star rating. Nowadays, review sites, the likes of TripAdvisor and Trustpilot, have been regularly used by internet users. However, from time to time, there are reports of establishments "gaming the system" by raking up the ratings through fraudulent reviews or bribery. This raises doubt to the credibility of the review process at these websites.
One recent example is from a British comedy, Oobah Butler, who created a non-existent restaurant The Shed at Dulwich, and gained notoriety by getting #1 ranking on TripAdvisor as the best restaurant in London. Answer the following questions:
1. Why rating is important for experience goods? How can internet sites help customers solve the Shopping Problem?
2. What measures can review sites put in place to prevent fraudulent reviews?
3. What is Certification Bias? How can we prevent it?
4. What products/services does your company provide? Are there any risk adjustments in place? If so, what are they? If not, why not?
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