Certainly, many are aware of the economic impact of counterfeit goods, though the impact of fake reviews is much less familiar. According to the World Economic Forum, online reviews impact a large portion of the global e-commerce spending, i.e. $3.8 trillion. Fake reviews alone influence $0.791 trillion of e-commerce spending. These figures inform us of several important pieces of information. Firstly, e-commerce relies heavily on online reviews to encourage consumer spending. And secondly, online reviews are not necessarily a translation of a consumer’s authentic experience, which businesses are profiting from. Online reviews, be it authentic or not, are helping businesses earn more than just brownie points. They have become the driving force of sales for many online businesses.  

Generally, there are two types of fake reviews – fake positive and fake negative. Fake positive reviews are fabricated to give high ratings and praise, creating a favourable impression of the establishment to enhance the perceived quality of its products or services. It is not an uncommon practice for businesses to remunerate writers, or even utilise in-house staff members to write fake positive reviews as a tactic to boost their online reputation and attract more customers.

In contrast, fake negative reviews are falsified information expressing dissatisfaction or dissent towards the products purchased or services rendered. These are often utilised by businesses to pit against competitors, significantly tarnishing their reputation and affecting their sales. Generating fake reviews to influence sales may seem like a harmless business tactic but is it an ethical one?  

In some parts of the world, there are legal frameworks in place to hold individuals, groups, or organisations accountable for buying and selling fake reviews due to their fraudulent nature. Nonetheless, what is concerning for most potential consumers is the manipulative content of these reviews. In fact, according to a 2022 study by Shabnam Azimi and Alexander Krasnikov (Loyola University of Chicago) and Kwong Chan (Northeastern University), most people find fake negative reviews more believable. After all, who would go to such great lengths to write malicious reviews on review sites to purposely harm a business?

The wise words of marketing guru, Philip Kotler, chimes, “A brand needs brand trust so that customers will believe that the brand will deliver what it claims”. Thus, this begs the question: What if businesses today have resorted to such tactics to achieve their own profit goals, instead of focusing on enhancement and innovation? Have we then, as a human race regressed in our values and belief system in the pursuit of success?  

In this era where “fake it till you make it” is being normalised, trust is a valuable commodity. While businesses may seek short-term benefits through tactics that are misleading, the long-term success of a brand lies in building trust and customer confidence and delivering brand promises. Such practices not only deceive consumers but also erode product and service quality in the broader marketplace. Perhaps the old adage “seeing is believing” no longer holds true, prompting us consumers to rethink how one can evaluate product or service performance instead of heavily relying on online reviews.

Evelyn Loh Geok Yan
School of Hospitality and Service Management
Email: @email