Generally speaking true. However some companies manage to get the hype train going which leads to people buying bad products. As a result, a company can still survive by selling bad headphones or bad water bottles. Bad reviews can balance things a bit, but if their marketing budget is as big as the defense budget of a small country, there’s not much a bad review can do.

Obviously, this doesn’t really apply to small startups with only pennies to spend. Their marketing consists of sending samples to reviewers, and if that gamble backfires, for any reason, things aren’t going to look very good for the company. Maybe the product was bad, and they had it coming. Maybe the product was ok, but the review sample was broken. Who knows.