Ratings are a welcome service in a world filled with too much information, too many choices and limited time. Examples of ratings are everywhere: They include rankings, such as Fortune’s “World’s Most Admired Companies” list, expert test results, such as those found in Consumer Reports, and user reviews, such as those found on Amazon or Yelp. Frequently, however, we use ratings to make decisions without understanding how professional rating services arrive at their evaluations. This lack of consumer understanding puts rating services in a unique position to affect a company’s reputation, brand, and sales. This paper explores the mechanics behind many influential rating services and outlines the strategies companies need to deal with them wisely. It also offers some thoughts about the responsibilities of organizations whose members are affected by ratings and rankings to bring transparency and coherence to the many rating services themselves.
To view the full report click here: Rating the Ratings: Wisely Navigating the Rating Service Universe
Below is an infographic to check out key findings from the report.