Research Shows Reservation Boost for Restaurants with Good Online Reviews

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Local Business Review Site 5StarControl shines a light on a new study linking better online reviews to more restaurant reservations

Local Business Review Site 5StarControl shines a light on a new study linking better online reviews to more restaurant reservations.

5StarControl has issued an announcement about UC Berkeley economists proving that good online reviews are important for restaurants. Reputation Management Site 5StarControl wrote that small businesses will be entranced by a new UC Berkeley study showing that restaurants with better online Yelp reviews get more reservations.

The UC Berkeley study, conducted by Professors Jeremy Magruder and Michael Anderson, was conducted as a means to see if online reviews really affect the habits of consumers. They looked at competing local restaurants that have a ratings difference of half a star on the online review site Yelp.com. They found that the higher-rated restaurants would be fully booked roughly 50% of the time, while those lower-rated restaurants would only be fully booked approximately one third of the time. These results had nothing to do with either price or service, only the positive Yelp reviews were taken into account for the study.

The University of California, Berkeley, is one of the premier institutes of higher learning in the United States. Ranked 10th in the world according to Times Higher Education, UC Berkeley, located about 20 miles from San Francisco, is considered to be the flagship university of the University of California system. The prestigious economics department, as well as many of the science departments, is extremely competitive, with only a handful of applicants accepted each year. Despite its other reputation as a center of protest and counter-culture, UC Berkeley has maintained its extremely high standards of scholarship and research.

The popular social networking and local review site Yelp.com has grown steadily since its inception in 2004. Begun in San Francisco, Yelp has now grown to have more than 60 million monthly users in 13 countries around the globe. Local businesses rely on good reviews on Yelp as a way to bring in more customers and as a powerful tool for small business marketing online. The millions of Yelp users also count on the reviews to give an accurate portrayal of a local business.

5StarControl urges businesses looking to expand their customer base to invest in using Yelp and monitor their online reviews as a way to interact with their customers or critics. This in turn will help business owners to create a valuable relationship with their patrons and bring in more business.

5StarControl is a website covering local business issues regarding online review sites.

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