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Can bad reviews be good for business? New research says yes

When negative comments come from a socially distant source, a negative review actually increases purchase intentions – and that is a game changer.

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Negative online reviews and low-star ratings are generally known to be bad for brands, so much that there are entire businesses devoted to reversing the damage. But a new study from the UBC Sauder School of Business found that this isn’t always the case.

UBC Sauder Associate Professor Dr. Lisa Cavanaugh (she/her) and her research team have found that negative online comments have little effect in cases where brand relationships are strong and consumers personally identify with a brand’s products. In some instances, they found negative reviews can actually have positive effects for brands.

“When consumers personally identify with a brand, they see facets of themselves in that brand,” Dr. Cavanaugh said. “When a reviewer leaves a disparaging comment about an identity-relevant brand, consumers feel compelled to protect the brand, and by extension themselves, by scrutinizing the source of the negative review.”

Photo by Karsten Winegeart from Unsplash.coom

Social proximity matters when it comes to reviews

The researchers found that the social proximity (e.g., demographic or geographic location) of a negative reviewer plays a critical role in how consumers respond to a negative review.

For the study, researchers conducted sixteen different experiments using identity-relevant brands, which are companies that consumers tend to feel strongly about and personally identify with, such as Apple, Tim Hortons, Roots, and NFL football.

In one experiment, researchers surveyed NFL fans, asking them about their reactions to negative or positive online reviews of an NFL-branded sweatshirt. They found that if the reviewer’s profile reflected a different social demographic, or a distant location, a negative review could actually boost the participant’s interest in buying the sweatshirt even more than a positive review did.

A similar case was also observed where a negative review from a person in distant social proximity increased the likelihood participants would buy an Apple watch.  And in another experiment involving President’s Choice packaged coffee, participants who read a negative review by a socially distant reviewer demonstrated a 6 to 12 per cent boost in their interest in purchasing the product.

“Marketers have generally assumed that when people say positive things, purchase interest increases, and when people say negative things, purchase interest decreases,” says Dr. Cavanaugh, who co-authored the study with Boston College’s Dr. Nailya Ordabayeva, and UBC Sauder Professor Dr. Darren Dahl. “But when negative comments come from a socially distant source, a negative review actually increases purchase intentions – and that is a game changer.” 

Dr. Cavanaugh explains that when we read negative reviews coming from someone we perceive as socially closer (e.g., maybe they share a national identity, they are a fellow student, or they like the same music) we tend to listen and accept what they have to say, causing us to downgrade our assessment of the product, as well as our willingness to purchase it.

“But when that negative review comes from a socially distant person, it is an entirely different story. You will scrutinize the source of the review and look for reasons not to believe it, specifically when it’s an identity-relevant brand, “she said. 

Bad reviews are still bad for lesser-known brands

Businesses shouldn’t get too comfortable with poor reviews, however.

Researchers observed that if consumers don’t personally identify with the product or brand — if it’s a toilet brush as opposed to an Apple computer or Timbits, for example — they won’t be driven to defend it, so poor reviews will still pack a punch.

Dr. Cavanaugh says the research reinforces the importance of forging strong brand relationships with customers, and cultivating that coveted connection to people’s identities.

In terms of managing online reviews, she also points to the importance of displaying reviewers’ profiles and review histories so readers can more easily assess their social proximity and any pattern of negative reviews. And advises that, sometimes, doing nothing (i.e., allowing those negative reviews to be seen) is better when it comes to negative reviews of identity-relevant brands.

This study was published in the Journal of Marketing.

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Sari-sari stores drive women’s empowerment in the Philippines – study

Sari-sari stores, locally known as neighborhood mom-and-pop shops, are not just a primary source of daily essentials for around 94% of Filipinos but a vital source of empowerment among women entrepreneurs.

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Sari-sari stores, locally known as neighborhood mom-and-pop shops, are not just a primary source of daily essentials for around 94% of Filipinos but a vital source of empowerment among women entrepreneurs.

This is the finding of a study published by the Philippine Institute for Development Studies (PIDS) in collaboration with tech start-up Packworks. The study, titled Gender, Microentrepreneurship, Human Flourishing: Exploring the Experiences of Women Sari-sari Store Owners toward Inclusive Growth,” found that women store owners experience significant psychological and social empowerment despite the many challenges they face.

According to the study, women owners take pride in being considered “entrepreneurs” and “business owners,” providing them a sense of independence, confidence, and fulfillment from managing their micro-retail businesses. Survey participants also expressed that managing and operating sari-sari stores gives them a deeper sense of purpose and meaning in their lives.

“I can buy things for myself, my kid, and my family now… I am not just a housewife anymore,” one participant in the study said. “Because of my store, I am now busy with other things apart from taking care of my family. I feel more fulfilled.”

The study also demonstrates that women store owners achieve social empowerment by earning higher social status. This is notably observed in their customers addressing them with terms of respect like ‘ma’am’ or ‘boss,’ a cultural marker of their elevated position within the community.

Furthermore, women store owners who exhibited characteristics of a “transformational leader” or qualities such as strong empathy, care, and collaboration with the community reported high levels of well-being, empowerment, optimism, and resilience. By becoming more independent and confident, women store owners were able to take on important roles within their communities.

The psychological empowerment and individual well-being the women owners experienced were evidenced by their positive results on happiness and life satisfaction, mental and physical health, meaning and purpose, character and virtue, and sense of agency and autonomy.

“This research underscores the resilience and transformative power of women sari-preneurs in the Philippines. They are the heart of their communities, and by supporting them, we are strengthening the social fabric of the nation,” said Packworks CEO Bing Tan. “At Packworks, we are driven by our mission to provide advanced business tools and services that allow these women to not only succeed in business but also to become leaders and change-makers within their communities,” he added.

The study surveyed hundreds of female sari-sari store owners in Metro Manila, Central Luzon, and Region IV-A (CALABARZON) between May and June 2024. The majority of those surveyed (90%) are married with dependents, while smaller percentages are single (7%), and the remaining as separated or widowed (3%). Additionally, 78% of the respondents contribute to their household income, 16% serve as breadwinners, and 6% are single mothers.

“This reinforces our previous findings, which revealed that 75% of sari-sari stores are owned by women. Through our business intelligence tool Sari IQ, we are able to highlight that Filipinas hold significant control over the local economy through these micro-retail enterprises,” said Packworks Lead Data Scientist Joanne Diaz.

A Filipino startup that provides a business-to-business (B2B) open platform to sari-sari stores, Packworks empowers its network of over 300,000 sari-sari stores nationwide by digitizing their daily operations with tools for pricing, inventory management, and sales tracking while also providing access to working capital, product promotions, and rewards. 

Learn more about how Packworks transforms grassroots retail and empowers sari-sari store owners across the Philippines by visiting http://packworks.io/.

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Asahi Appliances taps TikTok Shop

By tapping into TikTok Shop’s unique ACE Indicator System—Assortment, Content, and Empowerment—Asahi Appliances has modernized its approach while staying true to its legacy.

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For over four decades, Asahi Appliances has been a household name in the Philippines, known for its durable electric fans and a broad range of home appliances. Now, the brand has found new momentum in the digital marketplace through TikTok Shop, achieving remarkable growth in the latter part of 2024. By tapping into TikTok Shop’s unique ACE Indicator System—Assortment, Content, and Empowerment—Asahi Appliances has modernized its approach while staying true to its legacy.

Asahi Appliances saw a surge in sales, growing 2,700% year-over-year from Q4 2023 to Q4 2024, and 56.5% quarter-on-quarter from Q3 2024 to Q4 2024. The 11.11 Paskong Panalo Sale played a key role in this momentum, driving sales nearly six (6) times higher than the 10.10 sale that same year.

Reinventing Success with Digital Innovation

Asahi Appliances’s success on TikTok Shop exemplifies how local and heritage brands can thrive in a rapidly evolving digital space. The platform’s ACE Indicator System, which guides sellers in optimizing their assortment, enhancing content, and empowering campaigns, played a central role in this transformation. By refining its product offerings, creating engaging livestreams, and maximizing ad placements, Asahi Appliances connected with a new generation of online consumers.

“TikTok Shop has given us a platform to bring our products and story to life in a way that truly resonates with today’s audience,” said Eunice T. Sy, Vice President of Asahi Appliances. “This has been an opportunity to not just sell, but to engage with our customers on a deeper level, offering them value while staying true to the quality that has defined us since 1982.”

The Power of Assortment and Engagement

Through TikTok Shop, Asahi Appliances curated exclusive offers, including discounts, bundles, and Buy 1 Get 1 deals, tailored to its audience’s preferences. This strategy drove substantial growth, with gross merchandise value (GMV) increasing by 130% quarter-on-quarter. The brand also embraced TikTok Shop’s tools, such as the Shipping Fee Program and Bonus Cashback Program, to create a seamless and appealing shopping experience.

Complementing these efforts was a robust content strategy that featured daily livestreams and collaborations with creators. During major campaigns like 11.11, the brand extended livestream durations to seven hours, engaging customers in real time and significantly increasing impressions. These efforts translated into a 361% year on year growth in livestream sales, with product impressions surging 387% quarter-on-quarter.

Building Trust in E-Commerce

Asahi Appliances’s journey on TikTok Shop reflects the broader value of operating within a safe and trustworthy e-commerce ecosystem. TikTok Shop ensures compliance with Philippine laws, including requiring Philippine Standards (PS) Licenses or Import Commodity Clearance (ICC) certifications for regulated products. These measures provide assurance to both sellers and consumers, reinforcing the integrity of the platform.

“Trust is the foundation of any thriving digital marketplace,” said Franco Aligaen, Marketing Lead of TikTok Shop Philippines. “At TikTok Shop, we go beyond driving growth. We are committed to building a secure and transparent ecosystem where brands like Asahi Appliances can thrive, and consumers can shop with confidence, knowing they are protected by the highest standards of compliance.”

Globally, TikTok Shop has invested over USD 500 million in safety initiatives, including the development of tools to identify and remove non-compliant products. Programs like the TikTok Shop Intellectual Property Rights (IPR) Report further demonstrate its commitment to fostering a secure marketplace.

A Blueprint for Filipino Excellence

Asahi Appliances’s transformation on TikTok Shop is more than just a business success; it is a testament to the potential of Filipino enterprise in the digital age. By blending innovation with heritage, the brand has demonstrated how traditional businesses can adapt to the demands of a new market while preserving their identity.

“This isn’t just about growing sales; it’s about showing what Filipino craftsmanship can achieve when paired with the right tools,” Sy added. “TikTok Shop has been an invaluable partner in this journey, helping us share our story with customers who value quality and authenticity.”

To explore Asahi Appliances’s innovative offerings and see how they’re embracing the digital marketplace, visit their official TikTok Shop.

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5 Trends shaping the future of online selling

The consumer ecommerce market is expected to approach $6 trillion by 2027, according to the International Trade Administration, up from roughly $4 trillion in 2024.

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Thanks to the explosion of ecommerce over the past couple decades, consumers can find virtually any product or service they can think of online. In fact, the consumer ecommerce market is expected to approach $6 trillion by 2027, according to the International Trade Administration, up from roughly $4 trillion in 2024.

A diverse collection of product segments is driving this growth, including everything from fashion and furniture to food and beverage. While major marketplace retailers still lead the category, ecommerce has become commonplace among small businesses, too. In fact, by the end of 2023, an estimated 80% of small businesses had at least basic ecommerce capabilities, according to a report by Digital Commerce 360.

However, small businesses are grappling with challenges such as inflation, supply chain issues and keeping pace with major retailers, among others, that are driving a variety of ecommerce trends in 2025 and beyond, including:

Video Content

Spurred by social media, video content is in high demand on ecommerce sites, too. Videos that explain how to use products, offer tips for using them and demonstrate projects that were completed using a product all earn favor with shoppers. In addition, videos that highlight product features, video reviews on social media and “live shopping events” on the social channels of ecommerce retailers can provide a more appealing interactive experience for shoppers.

Inclusive of the “live shopping events” trends, livestreaming is often popular among consumers as it can create a sense of FOMO (fear of missing out), leading to enhanced brand loyalty and engagement. Short-form videos sweeping social media also drive engagements and offer a quick, appealing way to demonstrate new or popular products.

Personalized Products

Ecommerce provides opportunities for shoppers who appreciate buying products that are uniquely their own. Online buying platforms that allow for customization of products such as shoes, clothing and drinkware can create buyer engagement and earn loyal shoppers who know they can purchase the items they want exactly to their own specifications.

In fact, a survey by McKinsey Insights found 80% of loyal customers prefer shopping with brands that offer tailored choices and personalized experiences. From color selection and accessories to performance variations, custom options can help create a highly personalized shopping experience that allow buyers to interact more directly than they would for a standardized transaction.

Beyond the initial purchase, customized reports and shipping notifications are also becoming the norm. Shippers can alert customers to their products’ delivery status – including any delays or changes – via email, text, video message or, in some cases, a customizable dashboard where consumers can view incoming shipments tied to their account or address, request a different delivery time or location, pre-sign for packages and more.

Micro Purchasing Moments

You may think phenomena like impulse buys or convenience purchases are reserved for brick-and-mortar stores, but micro-purchasing trends suggest otherwise. These purchases are typically made by someone looking for a quick solution or information in a hurry from a mobile device, such as comparing two or more similar products and clicking a “buy now” link, ordering and paying for food ahead of time to skip the line, making a hotel or excursion reservation while traveling or looking up movie showtimes and purchasing tickets from the same page. Ecommerce sites that can establish themselves as a resource, make information easy to digest and simplify the purchasing process are earning customers (and revenue).

Flexible Payment Options

Online purchases were once limited almost exclusively to credit card purchases, but over time, businesses have granted greater flexibility to shoppers when it comes to collecting payment. While this trend has been growing for several years, many contemporary ecommerce sites now accept credit or debit cards, online checks, digital wallet and mobile payment services, cryptocurrency and even installment payments via third-party providers. By 2029, the third-party payment market is expected to almost double from $62.5 billion in 2024, according to findings from Mordor Intelligence.

Simplified Shipping Options

Evolving technology isn’t just improving the browsing and purchasing side of ecommerce; shipping operations are also seeing enhancements. For example, ShipAccel, a digital platform designed by Pitney Bowes, simplifies and enhances shipping operations with advanced ecommerce technology. The platform empowers early ecommerce brands to ship like larger companies with access to discounted carrier rates; more than 80 integrations including leading marketplaces, data and insights to help make smarter shipping decisions; branded tracking; and return capabilities. It features a collection of apps, widgets and application programming interfaces to easily configure new workflows and seamlessly meet the demands of business growth.

“As ecommerce becomes a mainstay, shippers must take a technology-first approach, utilizing platforms that can grow along with the business and partnering with providers who offer deep expertise in the segment,” said Shemin Nurmohamed, president of Sending Technology Solutions at Pitney Bowes. “As a result of using technology like ShipAccel, ecommerce shippers can save money, enhance operational efficiencies and delight customers – all of which support the business’ bottom line.”

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