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Impact of social media on purchase decision making or customers
Impact of social media on purchase decision making or customers
Impact of social media on purchase decision making or customers
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Social Commerce
The psychology of social commerce is widely written about and psychologists have spoken of six psychological segments that play a part in the process of social shopping and harness the Framing Effect. These being: social proof, scarcity, affinity, consistency, reciprocity and authority. A primary case study that illustrates the rule of reciprocity involves my own mini-business that I set up a few years ago selling my artwork through Etsy (an online shop). First promoting my artwork on Instagram, it is fair to say that it was onerous to get my work noticed amongst the hundreds of thousands of other aspiring artists. The appealing aspect of Instagram was that it allowed people to solely publish visual posts and I recognised that
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Psychologist, Zajonc (1968) carried out an experiment in which he showed Chinese characters to non-Chinese speaking participants. Showing each character 1-25 times, he asked the subjects to guess the meanings of the characters; what he found was that with repeated exposure to the characters the participants developed a familiarity, and thus a fondness, for them. A real-life case study illustrating this effect was Nike’s “Find Your Greatness” campaign for the 2012 Olympics. In the hundreds of diverse billboards that were up around the UK at the time, Nike consistently featured a Twitter hashtag (#findgreatness) to ignite a conversation about the upcoming Olympic event. With repeated exposure to the social media reference, Nike received nearly double the tweets compared to its rival, Adidas (16,000 to 9,000) and received an 11% growth in Twitter followers. [17] More importantly, the campaign caused sales to skyrocket: it is reported on the official Nike website [18] that fourth quarter revenues rose 12% to $6.5 million, which was Nike’s largest ever revenue …show more content…
With more and more businesses harnessing social media to promote their product or service it is becoming increasingly harder to get seen and to thrive amongst all the competition. Consequently, Facebook, Twitter and Instagram have introduced paid advertising for small businesses. Facebook, in particular, allows you to choose the type of audience that you want your posts to reach by specifying certain factors such as location, age and interests. At a Techpreneur event held in Kensington, Olympia, a guest speaker (CEO of a million pound company) said that a successful business can be started “with just you and your laptop,” emphasising the prodigious influence that the internet can have on a business; he also spoke of the advantages of paid advertising. A primary case study illustrating the effects of paid promotion involves the start-up mobile application company, Your Reaction Though YRT who have just recently launched their social media application for both Apple and Android platforms and are now marketing the app on social media sites to generate downloads. It is to be noted that procuring sales at the launch of a new app is improbable as it requires a substantial number of downloads to be made first. The CEO has therefore chosen to pay the fees for paid advertising on Facebook to establish his brand internationally. Additionally, with the use
Nair (2011) states, social media can be described as online tools where content, opinions, perspectives, insights, and media can be shared. Some people create content, while others lurk, observe, or disseminate content. At its core, social media is about relationships and connections between people and organizations.(p. 45) Due to so much information being shared through social media it has changed the way businesses interact with their business partners or vendors, businesses have also started to create new product because of the information that is available to them through social media, thus attaining higher profits. At the same time, because of social media and the amount of information that is shared through these services, businesses have been put in a position where they must be careful how they operate to keep their reputation and na...
As well as for the marketers, they apply persuasive strategies that gain customers confidence. Most clients perceive that what their friends post on the social media for instance Facebook and Twitter is the most popular hence they use it to make their purchase decisions (Zhang & Yue, 2014). Social media has become a vibrant market for most companies including, Topshop where they can reach a broad market with differing needs.
The increased interest of social media usage has led numbers of company and business to provide new experiences for their customer to leverage media platforms to make more efficient and effective purchases (Rad, 2010). In addition, the emergences of Web 2.0 technologies are dramatically changing the web collaboration concepts, which made the web more social and interconnected. The aforementioned phenomenon is called “social commerce”. It is a subset of electronic commerce, which utilize social media, or online media that support interaction and user contributions to enhance the online purchase experience.
Marketing through Social Media (Exploratory Essay) Throughout the ages there have been many intriguing ways that businesses have portrayed their product or services for accessibility. Recently, businesses have been researching how to market the businesses product through the World Wide Web. With websites such as Facebook, Twitter, Instagram, it started becoming popular within the past 20 Years. People have started to rely heavily on the internet over the past decade, whether it be for searching for information on products or people.
A great example of this is described in David Kerpen’s book Likeable Social Media in his introduction he describes a vacation to vegas where he had to wait in line an hours at the trendiest hotel in town, the Aria, in his frustration he tweeted “No Vegas hotel could be worth this long wait. Over an Hour to check in at the Aria #Fail”. Just two minutes later a competitor of Aria called Rio hotel tweeted back, “Sorry about the bad experience, Dave. Hope the rest of your stay in Vegas goes well” (Kerpen 1). The hotel used social media to listen and empathetically respond to their consumer like a friend which gained them a customer for life and possibly countless others if Kerpen decides to endorse and recommend Rio on social media. This idea of endorsing business through social media is revolutionary as well as quite exciting and daunting for companies. Before if you had rave reviews about a company you would share it with 10 or 15 friends but now with one click you can share your thoughts with with 350 Facebook Friends, 300 twitter followers, or 150 LinkedIn connections (Kerpen 8), with that power the consumer can have positive or negative impact on that company's
has not been spared from social media influence. Companies are now more careful with advertising; chiefly in
Effective communication in an organization is one of the components of its success. Managers are charged with navigating communication obstacles while making every effort to harness its benefits. This onus placed on managers is compounded by organizational advancements and the application of new technologies. One relatively new organizational technology being applied is the use of social media. Social media creates communication issues yet conversely alleviates specific communication barriers by playing several roles within organizations today.
Sports company can use Instagram to visually tell a story about themselves or their associates. Sports companies can build up their brand and/or maintain their brand by using Instagram as a window into the company operations and the impact they have on a local, regional and national level. The sports company can organically market itself with clever pictures and #Hashtag campaigns attached with those clever pictures. The sports companies can Instagram to effectively advertise themselves and promote future transactions and interactions within their site(s). If the #Hashtag picture campaign is distinct and clever enough with a strong reaction and support from the consumers, the promotion of the sports company is effectively seen through data and statistics stored within the Instagram site. A sports company can promote an ...
On social media, the things that people like are helping people and companies become more widely known, and in turn, improve the company’s sales. People assume if they do not have followers or likes, they are not noticed as much. Teenagers are mainly concerned with being “liked” by everyone. The more followers that a teen has, the more money a company is making. However, they do not understand how beneficial they are to the companies. To them, the likes they receive are instant gratification, and prove their worth; but for companies, if more people view someone’s photo, and the photo advertises an Alex and Ani bracelet, then the viewer is inspired to purchase t their own bracelet to maintain the same level of popularity as the person in the photo. The companies are literally turning these likes into
Businesses can benefit from social media through cost reduction by reducing staff working hours and increasing revenue. Social media marketing is the fastest means of getting words out about a business or product, that is why eventually all businesses are buying the initiative. Most marketers who are already established in the new social media initiative are beginning to implement their own tactics, which has brought social media to a greater height than it was before. These popular websites could be a great approach for companies and customers to improve their communications by applying them to computers and mobile devices. Social media marketing is a term not really known by many people.
The media landscape has undergone an immense transformation over the past decade (Mangold and Faulds, 2009). Social media popularity has increased substantially during the last few years, firms are eager to profit from this ever increasing trend (McCann (2010). The relatively low costs of implementing social media measures are a major catalyst of the increase in popularity and growth of social media. Social media is thus changing the traditional way of marketing. Traditional marketing involves an information exchange in one-way direction (e.g., TV and radio commercials). On the other hand, web-based marketing enables interactive communication with customers while maintaining the push-messaging (Trusov et al., 2009). Therefore, customers are no longer passive recipients of information; they actively use and distribute information via social media (Ryan and Jones, 2009...
Social media is an outlet that allows a company to introduce new products, control the speed of how they want to introduce their products and free advertisement. Sending out a tweet or putting up a status would let your customers know about a product that is released. This benefits companies because they spend less money on televised commercials, which takes more time to produce and will not reach as many generations that it could by using social media. Any social media site is free, and it takes less than 10 seconds to put out a post on any website. Facebook has also launched Facebook advertisements, which assist advertisers by showing advertisements to a user based on demographic factors, such as location, age, or gender, and which can further engage the audience by incorporating social context into advertisements, such as displaying when someone’s friend has liked an advertiser’s Facebook page (Li, Lin, & Chiu, Fall2014) . There is nearly 100 million daily active snapchatters and growing. Teenagers are constantly on their phones checking their pages so there is no way they will not know about the product being released. Marketers can discover potential customers for market positioning by filtering the content that online users mention or discuss (Li, Lin, & Chiu,
This method is used to “gain mutual understanding and find a win-win common ground” between brand and consumers, and develop a more long-term relationship beyond just sales (Straubhaar, 300). From Facebook posts and Tweets to Youtube videos, each channel offers a distinct venue for brands to share its content with consumers on platforms they frequent. Each of these social channels help develop the brand’s overall aesthetic and personality, giving consumers a more personal connection with the brand. In return, social media provides consumers with the ability to engage directly with the brands they take interest in, 24/7. Consumers can “favorite” or “like”, share, and post comments on brand posts which can increase brand awareness and spread their message. PR teams have taken advantage of the move from “business hours
Among the billions of social media users, there is a percentage dedicated to businesses who use social media as part of their marketing strategy. The sheer number of people who use services like Facebook and Instagram on a daily
Social media avenues are a new, upcoming, and popular way to advertise for businesses and for people to connect to each other. Alexis Ohanian once said that "Being effective at social media, whether for business or personal use, means capturing people who have short attention spans. They 're only a click away from a picture of a funny cat, so you have to make your thing more compelling than that cat. And that can be a high bar." (Ohanian) Powerful usage of social media can have a big impact.