How can negative online reviews affect a business?

Negative online reviews can significantly harm a brand's reputation. When potential customers read unfavorable feedback about a business, it can lead them to lose trust and choose competitors instead. A single negative review can deter many customers, as people often prioritize reviews when making purchasing decisions. In today’s digital landscape, where information spreads quickly, a business's reputation is increasingly tied to its online presence. Social proof, often derived from online reviews, greatly influences consumer behavior, and a collection of negative reviews can create a strong perception that the business may not offer quality products or services. Thus, the impact on reputation is profound, which can result in reduced sales and diminished customer loyalty.

The other options reflect different perspectives: while sales might increase under certain circumstances (such as if the negative reviews are few and seen as legitimate), that is generally not the expected outcome. Negative reviews can occasionally provide constructive feedback for product improvement, but this insight doesn't negate the damage to reputation in the immediate term. Lastly, stating that negative reviews tend to have minimal impact does not capture the significant influence they can exert in a competitive market, where consumer opinions are heightened and heavily considered.