13.1 Social Media's Influence on Purchase Decisions
3 min read•august 9, 2024
Social media has revolutionized how we make purchase decisions. It's not just about ads anymore - influencers, peer recommendations, and social proof play huge roles in shaping what we buy.
From targeted ads to in-app shopping features, social platforms have become powerful marketing tools. They tap into our emotions, create , and build brand connections that influence our choices in ways we might not even realize.
Influencer Marketing and Social Proof
Leveraging Influencers and Peer Recommendations
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utilizes social media personalities to promote products or services
Collaborates with individuals who have large, engaged followings
Social listening tools help brands track and respond to customer sentiment
Monitoring mentions, hashtags, and comments provides valuable feedback
Allows for timely response to customer issues and identification of trends
Key Terms to Review (19)
Brand advocacy: Brand advocacy refers to the phenomenon where customers actively promote and defend a brand based on their positive experiences and emotional connections. This often occurs when individuals are so satisfied with a product or service that they willingly share their enthusiasm and recommendations with others, influencing potential customers. Brand advocates can play a crucial role in shaping perceptions and driving sales through authentic word-of-mouth marketing.
Brand equity: Brand equity refers to the value that a brand adds to a product or service, stemming from consumer perceptions, experiences, and associations with that brand. This value can lead to increased customer loyalty, higher sales prices, and the ability to introduce new products more successfully. Strong brand equity indicates that consumers view the brand favorably, which can significantly influence purchase decisions and overall market performance.
Comments: Comments are user-generated responses or feedback posted on social media platforms in reaction to content shared by others. They serve as a form of interaction that fosters communication between users, allowing for discussions, expressions of opinions, and building community. This interactive feature is essential across various platforms as it enhances user engagement and can influence content visibility through algorithms.
Conversion rate: Conversion rate is the percentage of users who take a desired action out of the total number of visitors to a specific platform or website. It's a critical metric that helps evaluate the effectiveness of marketing campaigns and content strategies in achieving business goals.
Engagement rate: Engagement rate is a metric that measures the level of interaction a piece of content receives relative to its reach or impressions. It indicates how well an audience is connecting with the content, which can be crucial for assessing the effectiveness of marketing strategies across various platforms.
Facebook Marketplace: Facebook Marketplace is an online platform within Facebook that allows users to buy and sell items locally. This feature integrates social elements, enabling users to connect with buyers and sellers through their Facebook profiles, facilitating trust and community engagement in transactions. The platform impacts purchase decisions by providing easy access to local products while blending social media engagement with e-commerce functionality.
Fomo: FOMO, or 'Fear of Missing Out,' is the anxiety that arises from the belief that others are having rewarding experiences from which one is absent. This phenomenon is particularly amplified in the age of social media, where users are constantly exposed to curated snapshots of other people's lives, leading to feelings of inadequacy and the desire to stay connected. FOMO can influence behavior, prompting individuals to engage more actively with social media to avoid feeling left out.
Influencer marketing: Influencer marketing is a form of social media marketing that involves collaborating with individuals who have a substantial following and influence on their audience to promote products or services. This strategy leverages the trust and engagement these influencers have built with their followers, making it an effective way to reach target markets and drive brand awareness.
Instagram: Instagram is a popular social media platform primarily focused on photo and video sharing, allowing users to create and engage with visual content. It has played a significant role in shaping the landscape of social media, influencing how people communicate, share experiences, and market products or services through rich media.
Instagram Shopping: Instagram Shopping is a feature that allows businesses to showcase their products directly on the Instagram platform, enabling users to discover and purchase items seamlessly within the app. This feature integrates e-commerce functionalities into social media, creating a direct link between browsing and buying. With visually appealing posts, businesses can influence purchase decisions by leveraging engaging content that resonates with users.
Likes: Likes are a form of user engagement on social media platforms, representing approval or appreciation for a post, comment, or other content shared by users. This simple action serves as a social currency that can amplify content visibility, influence algorithm-driven feeds, and foster connections among users, making it a fundamental element in the dynamics of social media interactions.
Native advertising: Native advertising refers to a form of paid media that is designed to blend seamlessly with the content of the platform it appears on, making it less intrusive than traditional advertisements. This approach allows brands to provide value through relevant content, which can improve user engagement and foster a more positive perception of the brand. Because native ads mimic the look and feel of the surrounding content, they can present both challenges and opportunities for media organizations and influence consumer purchase decisions.
Retargeting: Retargeting is a digital marketing strategy that targets users who have previously interacted with a brand or website but did not complete a desired action, like making a purchase. This technique involves using cookies to track users' online behavior and display tailored advertisements to re-engage them. By reminding potential customers of products they viewed or showed interest in, retargeting aims to increase conversion rates and enhance brand recall.
Shares: Shares refer to the act of distributing or reposting content from one user to another on social media platforms, allowing for wider visibility and engagement. This function is essential in fostering community interaction, promoting content virality, and influencing audience behavior, as shares can significantly increase the reach of posts and facilitate conversations around them.
Social Proof Theory: Social proof theory is the psychological phenomenon where individuals look to the behavior of others to guide their own actions, especially in uncertain situations. This concept suggests that people are influenced by the actions and opinions of others, believing that if many people are doing something, it must be the right thing to do. It plays a crucial role in shaping consumer behavior, particularly in how social media platforms impact purchase decisions.
Social shopping: Social shopping is the process of using social media platforms to facilitate online purchasing decisions through shared experiences, recommendations, and interactions among users. It combines the principles of social networking with e-commerce, allowing consumers to engage with products, brands, and each other in a dynamic way that influences their buying choices. This concept highlights how social media not only serves as a marketing tool but also as an integral part of the shopping journey, where user-generated content and peer reviews play a significant role in shaping consumer perceptions.
TikTok: TikTok is a short-form video-sharing platform that allows users to create and share 15 to 60-second videos, often set to music or sound clips. It has rapidly become a cultural phenomenon, known for its diverse range of user-generated content and its ability to engage a massive audience through trends, challenges, and creative expression.
Twitter Promoted Tweets: Twitter Promoted Tweets are sponsored messages that businesses or individuals pay to have displayed to a wider audience on Twitter, even if those users do not follow the account. These tweets aim to increase visibility, engagement, and ultimately influence purchase decisions by reaching potential customers who may find the content relevant or appealing.
User-Generated Content: User-generated content (UGC) refers to any form of content, such as text, videos, images, and reviews, created by individuals rather than brands or organizations. This type of content plays a crucial role in shaping social media landscapes, enhancing user engagement, and influencing brand perception.