Buzz On

“What happens when millions armed with cameras, cell phones, and laptops share their lives on Facebook, blogs, Twitter, MySpace and YouTube? People have more opportunities to observe and listen to each other… A big part of word of mouth is small-talk buzz- conversations about products that are simply part of our everyday interactions.” (Emanuel Rosen, Buzz)
 

Word-of-mouth is the earliest and, in many ways, most reliable form of marketing, as people generally prefer to hear about products and services from someone they know rather then from the company that is selling. This is precisely why website comment sections are more effective then traditional testimonials. 
Social media offers companies the chance to talk with their customers as opposed to at them. And successful ad campaigns like Old Spice show that customers appreciate being consulted.
 

As for negative reviews- they should be taken constructively and seen as an opportunity to improve some aspect of what is being sold or how it is being sold. Of course, in order to avoid any grave impact on your company’s reputation, more positive then negative reviews are required.