Social Media and consumer behavior

Consumers are influenced by the Lux ad featuring AbhiAsh, which leads to an action. That is, it urges many of the girls to run to the supermarket down the lane and get their hands on the new Lux. Why? Recall value is greater with television being a visual medium and Lux and Aishwarya go a long way, making it easier for consumers to associate with the brand. This is not surprising for a brand which is a household name in India. There are certain products that consumers seek information about and want much more than a commercial featuring a top ambassador. Many top brands are now using social media to reach out to customers directly leading to greater exchange of information over the internet. For instance, top brands have a presence on the microblogging site Twitter. Tony Hsieh the chief executive of the online shoe store Zappos shares details of his life with 7,200 “followers”. Things he does – gives away a pair of Zappos shoes to his followers, rewards one new Twitter follower a trip to Las vegas for two to visit Zappos HQ and a lunch with the man himself.

Social media tools impact purchase decisions but do they result in purchase behavior? Consumers do use the company website to learn about the products and services that it has to offer. With the onset of social media, brands are now using this opportunity to talk to customers more often. This is still at an initial stage in India but not so in United States where social media is a major part of their life. Study shows that 70% of consumers in U.S. have used social media websites and nearly 49% made a purchase decision based on the information gathered. Social media enables to exchange information with a brand representative which gives value and credibility.

The best example of a brand using the social media as a platform to connect with customers in India is 'Sunsilk Gang of Girls'. Members here discuss hair care, career, entertainment, celebrity chats... The videos of Vodafone's ZooZoo ad campaign received more than a million views in the first two weeks of its launch.

Social media experts believe it is more than just a fad. Companies are already setting up research departments to study consumer actions. With enormous amount of data available, researchers are studying patterns of human interaction in virtual space to predict what they will buy or use.

Source: Gauravnomics
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