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ARTICLE · 29 JUNE 2016

Negative Online Reviews

Should restaurant owners care about negative online reviews? A study by Harvard Business School indicated a one-star increase on a Yelp review can boost a business's revenue by five to nine percent.

United StatesMedia, Telecoms, IT, Entertainment

Should restaurant owners care about negative online reviews? A study by Harvard Business School indicated a one-star increase on a Yelp review can boost a business's revenue by five to nine percent. It appears then that low ratings from reviews may do great harm to a restaurant's profitability. Luckily, websites like Yelp have Content Guidelines and Terms of Service (ToS) forbidding reviewers from writing derogatory remarks or factually inaccurate comments. Yelp's ToS explicitly state that the website reserves the right to remove any reviews violating Content Guidelines.

In recent times, those reviewed on sites like Yelp have taken action of their own to bring down bad reviews. They have sued reviewers to demand deletion of negative comments and to get compensation for their damaged reputations. These lawsuits have, for the most part, not been successful. In 2014, a jury found for neither party in a defamation lawsuit brought by a contractor, Christopher Dietz,

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