Unexpected Risks on Review Platforms
Claiming a business page on an online review platform such as Yelp may lead to a sharp decline in ratings and an increase in lengthy, negative customer feedback, according to a study from FIU Business.
The study, led by Jong Youl Lee, assistant professor of information systems and business analytics at FIU’s College of Business, finds that once a business claims its Yelp page, its average rating falls by more than 10%, driven largely by an influx of one-star reviews and a decrease in five-star reviews. The shift is immediate and persistent, lasting more than a year after the claim date. The study will soon be published in Information Systems Research.
The likelihood of receiving a one-star review rises by nearly 10%. These lowest-rated reviews also become substantially longer, with customers directly addressing owners or managers about service failures. Analysis of reviews shows a clear increase in negative language and a decline in positive sentiment.
“When customers see the page is claimed they believe the owner is watching… they tend to be more critical and more detailed.”
— Jong Youl Lee
The reason, the researchers say, is rooted in consumer psychology. Claiming a page signals that the owner is present, paying attention and potentially available to address complaints. That shift encourages dissatisfied customers – who otherwise might have stayed silent – to voice concerns or demand accountability through review platforms.
“When customers see the page is claimed, they believe the owner is watching,” Lee said. “That motivates very unsatisfied customers to write reviews they otherwise might not have written, and they tend to be more critical and more detailed.”
Yelp and other platforms, including TripAdvisor and Yellow Pages, encourage business owners to claim their pages, citing benefits such as photo control, analytics and the ability to respond to reviews. But Lee’s research suggests these perks may come with hidden costs, particularly for small businesses with limited staff.
“Claiming your business page is not costless, even if it’s free of charge,” Lee said. “Businesses need to be prepared to monitor reviews and respond effectively. If they’re not ready to do this, claiming can actually hurt their reputation.”
The researchers analyzed data from newly opened restaurants across the nation’s 200 largest metro areas, examining ratings before and after pages were claimed. They also analyzed review text to measure shifts in tone and conducted an online experiment to confirm how customers interpret the “claimed” badge.
The implications extend beyond restaurants. Any small business without staff to monitor online feedback may face similar risks.