Foodspotting Launches ‘Rewards’

While a number of apps allow users to rate restaurants, leave comments, and create a map of what’s nearby, San Francisco-based Foodspotting focuses its attention on the food itself — and on helping food seekers find the specific dish they want nearby. With a new “rewards” launch, the company plans to tweak that model even more, seeking to build loyalty connections between food seekers and the restaurants that serve the dishes they love.

Online Behaviour: March of the Tastemakers

Relying on what has become known as “social curation”, sites encourage users to exhibit the things that interest them – often by selecting, saving and collating images, videos or articles from the wider web – and then let others follow and copy them. Tastemakers are created almost overnight, their ideas passed around the world virally... via ft.com

Relying on what has become known as “social curation”, sites encourage users to exhibit the things that interest them – often by selecting, saving and collating images, videos or articles from the wider web – and then let others follow and copy them. Tastemakers are created almost overnight, their ideas passed around the world virally...

via ft.com

Facebook’s Timeline Apps Intro Actions Like “Bought,” “Want” & “Love”

Facebook has partnered up with sixty different startups to add their “stories” to Facebook Timeline, through apps that span different verticals from Food, Fashion to Travel. Already apps like Fab.com, Foodspotting, Foodily, Ticketmaster, Pinterest, Rotten Tomatoes, Pose, Kobo, Gogobot, and TripAdvisor have signed on to share these stories — which go beyond what we’re used to on Facebook.   via techcrunch.com  

Facebook has partnered up with sixty different startups to add their “stories” to Facebook Timeline, through apps that span different verticals from Food, Fashion to Travel. Already apps like Fab.com, Foodspotting, Foodily, Ticketmaster, Pinterest, Rotten Tomatoes, Pose, Kobo, Gogobot, and TripAdvisor have signed on to share these stories — which go beyond what we’re used to on Facebook.

 

 

Niche Social Networks Deliver Big Results for Brands

As director of social media and marketing for apartment company Contemporary Management Concepts (CMC), Melanie Ling wanted to use her love of food to create new connections with local residents and differentiate her property selection from the competition. Then, she discovered Foodspotting, an app that draws attention to specific dishes offered at local restaurants... via mashable.com  

As director of social media and marketing for apartment company Contemporary Management Concepts (CMC), Melanie Ling wanted to use her love of food to create new connections with local residents and differentiate her property selection from the competition. Then, she discovered Foodspotting, an app that draws attention to specific dishes offered at local restaurants...

 

Reviews, Reputation & Revenue: The Case of Yelp

Executive Summary: In just six years, Yelp.com has managed to crowdsource 20 million reviews of restaurants and other services by creating and leveraging an impressive social network of people who enjoy writing reviews. But can a bunch of amateur opinionators working for free really transform the restaurant industry, where heavily marketed chains and highly regarded professional critics have long had a stronghold? To answer this question, HBS professor Michael Luca combined Yelp reviews with revenues for every restaurant that operated in Seattle, WA at any point between 2003 and 2009. Applying a new method to tease out the causal effect of reviews (separate from the effect of underlying quality), the study shows that a one-star increase on Yelp leads to a 5 to 9 percent increase in revenue. Yet Yelp doesn't work for all restaurants. Chain restaurants —which already spend heavily on branding —are unaffected by changes in their Yelp ratings. This suggests that consumer reviews present a new way of learning in the Internet age, and are fast becoming a substitute for traditional forms of reputation. Key concepts include: Online consumer review websites provide more information to consumers than was previously thought to be cost-effective. By relying on user-generated content, Yelp is able to review more products than traditional media such as newspaper reviews. More than 70 percent of Seattle restaurants are on Yelp. The impact of consumer reviews depends on the existing reputation of a company or product. Consumer reviews are effective overall, but ineffective when a product has a firmly established reputation (such as a chain restaurant). Consumer reviews provide a substitute for more traditional forms of marketing. Other forms of reputation such as chain affiliation may become less influential as websites like Yelp continue to gain traction. Evidence suggests that this pattern is already emerging. Consumers rely on simple metrics such as the average rating and the number of reviews, and are more trusting of reviews that are written by "elite" reviewers (as identified by Yelp). via hbswk.hbs.edu Download HBS working paper at http://goo.gl/Qd3VZ

Executive Summary:

In just six years, Yelp.com has managed to crowdsource 20 million reviews of restaurants and other services by creating and leveraging an impressive social network of people who enjoy writing reviews. But can a bunch of amateur opinionators working for free really transform the restaurant industry, where heavily marketed chains and highly regarded professional critics have long had a stronghold? To answer this question, HBS professor Michael Luca combined Yelp reviews with revenues for every restaurant that operated in Seattle, WA at any point between 2003 and 2009. Applying a new method to tease out the causal effect of reviews (separate from the effect of underlying quality), the study shows that a one-star increase on Yelp leads to a 5 to 9 percent increase in revenue. Yet Yelp doesn't work for all restaurants. Chain restaurants —which already spend heavily on branding —are unaffected by changes in their Yelp ratings. This suggests that consumer reviews present a new way of learning in the Internet age, and are fast becoming a substitute for traditional forms of reputation. Key concepts include:

  • Online consumer review websites provide more information to consumers than was previously thought to be cost-effective. By relying on user-generated content, Yelp is able to review more products than traditional media such as newspaper reviews. More than 70 percent of Seattle restaurants are on Yelp.
  • The impact of consumer reviews depends on the existing reputation of a company or product. Consumer reviews are effective overall, but ineffective when a product has a firmly established reputation (such as a chain restaurant).
  • Consumer reviews provide a substitute for more traditional forms of marketing. Other forms of reputation such as chain affiliation may become less influential as websites like Yelp continue to gain traction. Evidence suggests that this pattern is already emerging.
  • Consumers rely on simple metrics such as the average rating and the number of reviews, and are more trusting of reviews that are written by "elite" reviewers (as identified by Yelp).

Download HBS working paper at http://goo.gl/Qd3VZ