How effective are ranking badges for selling beauty care products?

"2018 Top Cosmetics Ranked by XX," "#1 in XX User Reviews"... Haven't you been seeing badges displaying phrases like these more often lately?

Whether from publishers like magazines and web media, review sites, or e-commerce platforms, these "ranking badges" (as we call them) have become a significant source of information for consumers.

Therefore, Dentsu Inc. and Dentsu Digital Inc. launched a joint research project to investigate the extent to which ranking badges influence consumers. We will present the findings in two parts. Part 1 focuses on the media value of ranking badges.

Understanding the social context where word-of-mouth information is increasingly important, and the significance of ranking badges as an extension of this trend, should deepen insights in advertising/promotion and enhance the quality of media proposals.

Note: Due to the wide range of survey items, this article omits some data for explanation. For specific scores, please contact the inquiry details at the end of the article.

What are the trusted information sources for purchasing beauty care products across generations?

Using beauty care products (face makeup, face care, hair care, and others such as body care) as an example, this article outlines which information sources are trusted, the flow of consumer engagement with them, and the role ranking badges play within this process, based on survey results.

First, let's examine "which information sources are trusted" by generation.

While these are broad trends, the results clearly show generational differences.

For those in their 20s and younger, SNS, influencers, and review sites had high reference and trust rates, while product samples and testers had low reference rates. This doesn't mean they don't want to try products; rather, they likely substitute this step by relying on information from "influential people or sites" they feel closely relate to them. A typical pattern might be gathering third-party information online and via SNS, then using ranking badges as final confirmation to make purchase decisions.

Those in their 30s are characterized by high reference and trust rates for review sites, curation sites, and ranking badges. Considering their relatively low trust in in-store information like product samples, and their tendency to confirm online research with ranking badges before purchasing, a strong continuity with those in their 20s and younger is evident.

Conversely, those in their 50s are characterized by confirming the actual feel of products through samples or testers before deciding to buy. They tend to trust the actual feel of the product and advice from department store beauty consultants more than unspecified user reviews or ranking badges. They also show a tendency to rely on information from traditional media like TV commercials, magazines, and mail-order catalogs.

Those in their 40s exhibit intermediate characteristics. They refer to and trust their own sources of information or actual in-store experiences rather than broad-based word-of-mouth information when making purchases.

Where in the purchasing flow do they encounter ranking badges?

Next, let's examine what information consumers encounter during the purchasing process, focusing on "part-specific care" products within the facial care category. We clustered them based on patterns of information sources encountered, categorizing them into five groups.

(Illustration: Saki Kanai)
*Note: Since this varies strictly by item, we've allowed for a range in the composition ratios here. Also, the total does not add up to 100% because we have omitted the "non-responsive group," whose information activities are not very active, to clarify the argument.

Let's examine the actions of Cluster 1, "Word-of-Mouth Prioritizers," chronologically.

This survey defines three phases: ① the "Initial Interest Phase" when interest in the product arises, ② the "Consideration Phase" when they learn more about the product and contemplate purchasing, and ③ the "Purchase Phase" when they actually buy. We asked which information sources they relied on at each stage. For Word-of-Mouth Focusers,

① During the "Spontaneous Interest Phase," they seem to gather information through online articles and interactions with influencers (especially YouTubers) who share beauty information.
② During the "Consideration Phase," influencers (especially YouTubers) remain a key source, and ranking badges are also referenced.
③ During the "purchase stage," they seek out specific word-of-mouth reviews about the product while also using ranking badges as a final nudge.

What is the current positioning of ranking badges as information?

Ranking badges visualize user evaluations and represent a phenomenon extending from consumers' growing emphasis on word-of-mouth. As confirmed by analyzing the survey results, they function during the consideration to purchase phase as a supplement to official brand information. They are increasingly seen as a trustworthy information source, particularly among younger demographics.

Details will be covered in Part 2 of this series, but data shows a clear trend of ranking badges being favored among the 18-29 age group, who are active consumers of beauty care products, as illustrated below.

Ranking Badge Evaluation by Age Group. Survey Participants: 323 aged 18-29, 522 aged 30-39, 683 aged 40-49, 599 aged 50-59.

This time, we structured the discussion from the perspective of information exposure. Next time, building on this foundation, the Dentsu Digital Inc. team will explain what types of ranking badges influence purchasing decisions and specifically what aspects consumers notice and value.

For inquiries regarding the survey results: Dentsu Digital Inc.ap4@dentsudigital.co.jp 

＜Survey Overview＞
・Survey Method: Internet survey (screening survey + main survey)
・Survey Area: Nationwide
・Target Participants: Women aged 18-59 who use beauty care products (identified through screening survey as purchasers within the past 6 months)
　*Excluded from survey participants: Employees of advertising agencies, market research/consulting firms, and cosmetics manufacturers.
・Valid Responses: Screening Survey: 19,968 responses, Main Survey: 2,127 valid responses
・Survey Period: Screening Survey: December 14-17, 2018; Main Survey: December 21-25, 2018
・Presentation items: 13 ranking badge images