Business...Part Three

7. Social Media Research

There’s conflicting research on the influence of social media on purchase decisions.

My research team found that consumers are 67% more likely to buy from the brands they follow on Social Sites.

The real answer is probably that social media does impact purchase decisions, but it’s a slow relationship building process. Just shouting “buy this” or constantly selling your book will work on a very small number of people.

In my experience, buying decisions are based more on an indirect buyer. Someone who knows someone knows someone! I have found that it's more of a how much someone sees you and gets to know you, via Skype, Zoom or telephone.

Social media links have an influence, too.

A study examined how the presence of the Facebook “Like” button and the Twitter symbol might affect online purchase decisions.

The findings:

• When the product was one for which public consumption is desirable (sportswear, fragrance) the presence of the Facebook and Twitter icons made people 25% more likely to purchase.
• When the product was more private in nature (Spanx, Clearasil), the presence of Facebook and Twitter icons made participants 25% less likely to purchase.

8. Emotional Decisions

Do people make decisions based on emotions or logic?

McCombs marketing professor Raj Raghunathan and PhD student Szu-Chi Huang point to a study they did that shows comparative features are important, but mostly as justification after a buyer makes a decision based on emotional response.

The story of two chickens

Research participants were shown two photos. One was a nice looking, plump chicken. The other was a chicken that looked thin and sickly. Participants were told that the plump chicken was a natural chicken and the thin chicken was genetically engineered.

The researchers informed half of the participants that natural chickens were healthy (but less tasty) and genetically engineered chickens were tasty (but less healthy). The other half were told the opposite.

Overwhelmingly, participants preferred the nice plump chicken, but their reasoning was different. The first group claimed it was because they valued health above taste and the second group said it was because taste was more important.

Neither group seemed to justify their choice based on how they felt about the chicken’s looks. They felt compelled to justify their emotional choices with rational reasons… to the point that the two groups found completely opposite ways to justify the same purchase decision.

Emotions Rule.

The scientists replicated the results in other areas as well… in marketing, politics, religion, etc.

“This process seems to be happening somewhat unconsciously, people are not really aware they’re coming up with these justifications. What is even more interesting is that people who claim that emotions are not that important, who consider themselves to be really rational, are actually more prone to fall into this trap.”

What does this mean for marketers? Raghunathan suggests the earlier you make the emotional connection, the better because once consumers have decided they like a particular option, it’s difficult for them to backpedal.

Rational thinking will only justify their emotional choice.

9. Subconscious drives Purchase Decisions.

For the last 50 or 60 years, market research as an industry has relied on an understanding that people make decisions based on rational, conscious thought processes. What the science tells us now is turning that fundamental belief on its head… most decision-making happens at the non-conscious level.

We have a tendency to focus on facts and numbers, but in many cases, it’s the subliminal that makes people decide one way or the other.

Conclusion

People are complex and we are just beginning to scratch the surface of what they really want. Studies have shown that people prefer items on the right or at the bottom of the list… we make buying choices without paying much attention to products!

New questions about human thought processes and purchase decisions are being studied. As a research company, that is what I am working on as I complete this three-part article series.

Want to discuss this further. Email [email protected]. I'd love to hear from you:)