Influence of Social Media on Consumer Behaviour

SOCIAL MEDIA & CONSUMER BEHAVIOUR

Presented by Khushbu Pandya,

Founder of Konvophilia Communications

Author of WEAVE Model

#InDigiNext2013

https://twitter.com/search?q=

CONFESSIONS ! Confession # 1 - I am not any social media genius! Confession # 2 - I can’t guarantee likes, follows

and clicks! Confession # 3 - I do not know technical stuff like

SEO!

All I have got is – PASSIONI have studied social media closely and its various

outlooks andI love what I do !

@Pandya_Khushbu #InDigiNext2013

TALK AGENDA Social Media & Consumer Behaviour : Two broad disciplines – where

is the connect? Influence of social media on consumer behaviour Why Social data is important? Top 5 reasons why consumers like or follow brands on social media Top 4 reasons why consumer unlike or un-follow brands on social

media Trends in consumer behaviour What to do now? Where to start from? 7 Step Process of going Social & Consumer behaviour observation

sheet Questions / points to discuss


TWO BROAD DISCIPLINES–WHERE IS THE CONNECT?

Consumer Behaviour was relatively new field of study in the mid-late 1960’s1.

Because it had no history or body of research of its own, marketing theorists borrowed concepts from other disciplines - Psychology (the study of the individual) Sociology (the study of groups) Social Psychology (the study of how an individual operates in

groups) Anthropology (the influence of society on an individual), and Economics

1Leon G. Schiffman, Leslie Lazar Kanuk and S. Ramesh Kumar, Consumer Behavior, 10th ed. (New Delhi,India: Pearson Education, 2010), 35.


This combination helped to form the basis of this new marketing discipline.

Many early theories concerning consumer behaviour were based on economic theory, on the notion that individuals act rationally to maximise their benefits (satisfaction) in the purchase of goods impulsively and to be influenced by not only family and friends, by advertisers and role models, but also by mood, situation, and emotion.

All of these factors combine to form a comprehensive model of consumer behaviour that reflects both the cognitive and emotional aspects of consumer decision making.


SOCIAL MEDIA CONNECT Social Media is a Channel on which Consumer Behavior is

reflected directly and is visible to everyone on the real time basis.

Hence, that’s the connect between Social Media & Consumer Behaviour!

@Pandya_Khushbu

#InDigiNext2013

WHO IS THE NEW CONSUMER ?

@Pandya_Khushbu

#InDigiNext2013

INFLUENCE OF SOCIAL MEDIA ON CONSUMER BEHAVIOUR

@Pandya_Khushbu

#InDigiNext2013

INFLUENCE OF SOCIAL MEDIA ON CONSUMER BEHAVIOUR

Social Media gives opportunity to communicate with customers.

It allows greater ‘Reach’ with ‘targeted communication’ that guaranties company’s message is received by the consumers.

Social Media has given power to consumers resulting in to ‘Empowered Consumerism’


Two way communication – creating interactivity – direct effects on consumer behaviour: New Voice of Consumer

@Pandya_Khushbu

#InDigiNext2013

Consumers are Now “Researchers”

@Pandya_Khushbu

#InDigiNext2013

Consumer’s Loyalty Consumer’s rapport with the company E.g. personal experience with ‘Things Remembered’


Consumer Advertising (WOM principle works faster here)


WHY SOCIAL DATA IS IMPORTANT? Provides direct access to consumers Useful hints on What to discus and what not

to discuss Useful in developing business Understanding ‘Who’ is using the

product/service, why and other usage behaviour

Deciding on other marketing strategies

@Pandya_Khushbu

#InDigiNext2013

LET’S DISCUSS FACTS:(REFERRING TO MY PH.D. RESEARCH DATA)

1. Professional Networker and Explorer Uses SM to build and maintain good relations with

customers and all the work related people. Likes to read and collect information about product and

services. Constantly look out for new things online.

@Pandya_Khushbu

#InDigiNext2013

There are four categories of Consumers in Gujarat:

3. Pessimists Social Media creates Nuisance Social Media are waste of time Social Media are misinterpretations of

reality

@Pandya_Khushbu

#InDigiNext2013

2. Socialisers Likes the feeling of being always

connected to othersLikes to read about other people’s livesEnjoy sharing reviews on social media

networks

4. Connectors with Purpose Uses SM to communicate with

limited network of people. (limited to their specific interest only.)

Likes to keep in touch with their friends & family only

@Pandya_Khushbu

#InDigiNext2013

TOP 5 REASONS – WHY CONSUMER OR BRANDS ON SOCIAL MEDIA?

Easy access to Product/company information, available 24/7, and monitor New Products/Services or future releases

26.2%

Receive Discounts, coupons, or giveaways 25.4%

Get User reviews, experiences and also share their own experiences and reviews

14.3%

Networking & relationship building with brands, feels more humanised

9.6%

Using the products currently, So easy to avail after sales services & product information

14.8%

@Pandya_Khushbu

#InDigiNext2013

Research sample of 1045 respondents from across Gujarat

TOP 4 REASONS – WHY CONSUMER OR BRANDS ON SOCIAL MEDIA?

@Pandya_Khushbu

#InDigiNext2013

High Promotions and too much of posts regarding products

32%

Do not listen or respond to the complains posted

25%

Interference / harassment of people, other than friends

10.7%

No new content provided 5.8%

Various Research groups and Industries from all over the world have done research in this area and all have come to a single consensus :-

“Social Media is Revolutionizing Consumer Behaviour”

@Pandya_Khushbu

#InDigiNext2013

TRENDS IN CONSUMER BEHAVIOUR

@Pandya_Khushbu

#InDigiNext2013

TRENDS TO LOOK OUT FOR: Increasing trends in Online Shopping & Mobile

devices results into increased power of Social Media – creating larger impact on the way consumers shop.

In-store shopping decisions are also affected by Social Media Consumers look out for specials on foursquare as

they make check-ins Scan Bar codes to look out for product

information Use various apps at the point of sale

@Pandya_Khushbu

#InDigiNext2013

SMRTPHN CULTR ! (IT ISN'T A TYPO ERROR )@Pandya_Khushbu

#InDigiNext2013

PROVEN FACT # 1 Consumers have become the part of building

a Brand’s Reputation

@Pandya_Khushbu

#InDigiNext2013

PROVEN FACT # 2 Customers are your True Brand Advocates

@Pandya_Khushbu

#InDigiNext2013

PROVEN FACT # 3

Social Media is now an effective way to provide an excellent customer service


PROVEN FACT # 4 Traditional marketing still has its place, but there is a

need to engage the “always-connected consumers” at every touch point & in real-time, anticipating their needs and responding at each step.

@Pandya_Khushbu

#InDigiNext2013

WHAT TO DO NOW? WHERE TO START FROM? MOST IMPORTANT : Don’t IMITATE others; Don’t do just for the sake of doing; Don’t

blindly follow others !

@Pandya_Khushbu

#InDigiNext2013

7 STEP PROCESS OF GOING SOCIAL

@Pandya_Khushbu

#InDigiNext2013

Awareness

Perception

Targeting

Traffic/SEO

User Content

Engagement

Purchase

Referral

Evangelism

Thought Leadership

Measurement

Social Bookmarks

Locationbased

Ratings/Forums

Photo Sharing

VideoSharing

Professional

Networks

SocialNet

works

MicroBlogs

Blogs Monitoring Tools

OnlineCommunity

EmailAppsSocial Dashboard

SETTING GOALS AND MEASURING PERFORMANCE [ CONSUMER BEHAVIOUR OBSERVATION SHEET ]

SAMPLE

It is important to have your own model rather than copying other’s !

Social Media success depends on how well you understand your customers !

Understand the Social Media Fundamentals

@Pandya_Khushbu

#InDigiNext2013

My Book WEAVE Model explains Social Media Fundamentals that helps integrating social media into your business.

You can check it out at Amazon Bookstore, Barnes & Noble or mail me for e-book copies !

AND THAT ENDS MY PRESENTATION, LET’S STAY CONNECTED !

@Pandya_Khushbu

#InDigiNext2013

www.khushbupandya.com | www.konvophilia.in (coming soon)

[email protected]

I am present on almost all social media platforms – You can look out for Konvophilia or

Khushbu Pandya Check out my Book at

facebook.com/weavemodel Catch up the book updates using

#weavemodel

http://www.khushbupandya.com/

http://www.konvophilia.in/

mailto:[email protected]

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Influence of Social Media on Consumer Behaviour