To Claim or Not To Claim? Hidden Costs of Business Page Claiming

Many digital platforms encourage small business owners to “claim” their pages to improve visibility and connect with customers. Yet, despite its apparent benefits and zero financial cost, many pages remain unclaimed. Using a unique data set from Yelp and a staggered difference-in-differences design, this study reveals a hidden downside of business page claiming; average customer ratings drop by 10.3%, driven by more one-star reviews and fewer five-star reviews. Customers also write longer, more negative reviews and address owners more directly about service issues. These findings indicate that claiming a business page signals owner presence and raises customer expectations for responsiveness, which many small businesses may not be equipped to meet. For practitioners, the results highlight that business page claiming, although free, is not costless; it creates reputational risk if service quality or responsiveness falls short of heightened expectations. Owners should claim their pages only when ready to actively monitor feedback or engage in managerial responses. Platforms should also communicate these potential consequences to businesses and design tools that help owners manage customer interactions more effectively.