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The Consumer Z Score: A Methodology for Auditing Public Reputation Against Government Records

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  • Redd, Shawn

Abstract

Consumer decisions about regulated facilities — child care centers, nursing homes, surgical centers, aviation operators — are overwhelmingly guided by public star ratings and user reviews. These reputation signals, while widely accessible, are opinion-based, subject to solicitation and management by the reviewed entity, and structurally disconnected from the mandatory government records that document licensing, inspection, enforcement, and safety outcomes. This paper describes the Consumer Z Score™, a composite metric that audits an entity's public reputation against its official government record and surfaces divergence between the two. We describe the four-layer data architecture, the ten-point scoring methodology, the records-layer grading system (A–F), and the design principles that maintain analytical independence. The methodology is applied to a database of 166,000+ US facilities across eleven regulated industries. We argue that the systematic divergence between reviews and records — measurable across verticals — represents an information asymmetry harmful to consumer welfare, and that surfacing it requires a methodology distinct from both review aggregation and regulatory reporting

Suggested Citation

  • Redd, Shawn, 2026. "The Consumer Z Score: A Methodology for Auditing Public Reputation Against Government Records," MPRA Paper 130357, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:130357
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    References listed on IDEAS

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    6. Michael Luca & Georgios Zervas, 2016. "Fake It Till You Make It: Reputation, Competition, and Yelp Review Fraud," Management Science, INFORMS, vol. 62(12), pages 3412-3427, December.
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    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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