The Impact of Social Media on Buying Decisions and Consumer Behaviour

NOTE: While we understand there’s a lot of information online to help businesses understand social media and, more broadly, digital media and how to succeed, we also know how “general” those online results and data are. That’s why at Kiers Marketing, we invest in data analysis coupled with our 40 years in business to create actionable insights for NEW BRUNSWICK BUSINESSES that must contend with much smaller market sizes. The online surveys and reports often are a result of larger markets and entirely different audiences based in the United States.

Let’s dive into how these platforms impact our decision-making when it comes to purchases, especially in our smaller markets in New Brunswick.

We all know social media has become a part of our daily lives, right? It’s not just for keeping up with friends; it’s also a huge influence on what we buy and how we behave as consumers. There have been many studies about this, showing how platforms like Facebook, TikTok, and Instagram shape our preferences and shopping habits. Think about how often do you see posts from your network asking for recommendations on everything from choosing a roofer, a plumber, best place to get a good pizza, and even household and personal items. And people respond to these recommendations based on their experiences.

Social Media and Consumer Decision-Making

Research by Patarawadee Sema from Johnson & Wales University highlights how social media plays a big role in consumer decisions. These digital channels connect us with people and organizations, and through shared experiences, reviews, and recommendations, they influence our behaviour. We often look to them for advice on what to buy, where to go, and what to do next.

And guess what? The younger the audience, the less likely they are these days to actually engage with your posts. Instead, they’re using platforms like Instagram as search engines!

Businesses should know this too and cater to your audience.

That’s why social media marketing is essential. By using platforms like Instagram and TikTok, businesses can create campaigns that really connect with audiences, making it easier to attract and keep customers. Plus, with the ease of access to social media, we can quickly find out about products and services, which helps us make better decisions.

However, determining what type of content connects with audiences is becoming extremely difficult. While they aren’t perfect and offer very surface-level insights, the following tools at least offer small businesses here in Atlantic Canada a starting point:

1. Google Trends: Google Trends is a free tool that shows the popularity of search queries over time. Small businesses can use it to identify trending topics and understand seasonal demand for products or services.
2. Think with Google: Think with Google offers free insights, research, and data on consumer behaviour, marketing strategies, and industry trends.
3. Statista: While some of Statista’s content is behind a paywall, they offer a variety of free statistics and reports that can be helpful. Visit their free statistics section for insights.
4. BDC: For more localized insights, the Business Development Bank of Canada provides resources and data specifically for Canadian businesses.

It should be noted that there is no longer a quick fix to boosting your business online. The more time and money you put into something, the better the results. Plan, strategize and ensure you are using your allocating your resources efficiently.

The Five Stages of Consumer Decision-Making

So, what is consumer decision-making? Fitore Jashari and Visar Rrustemi studied how social media affects each stage of our buying decisions in Kosovo. Here’s what they found:

1. Need Recognition: Social media often sparks new desires by showing us products and experiences we didn’t know we wanted. Suddenly, that new gadget or exotic trip seems like a must-have.
2. Information Search: When we want to know more about something, social media is a go-to source. Reviews, recommendations, and user-generated content give us the lowdown, helping us make informed choices. In their study, Jashari and Rrustemi found that a whopping 97% of people used the internet, including social media, to gather info before buying.
3. Evaluation of Alternatives: Social media makes comparing options a breeze. Reviews and ratings from other users help us weigh the pros and cons, leading to better decisions.
4. Purchase Decision: Here’s where it gets emotional. Positive reviews and appealing social media posts often push us to make impulsive buys. Their research showed that 59% of respondents made unplanned purchases because of social media.
5. Post-Purchase Behavior: After buying something, we often turn to social media to share our thoughts. This feedback helps other consumers and gives businesses valuable insights into customer satisfaction and product performance.

The Role of Psychographic Variables

Psychographic variables like motivation, perception, learning, memory, and attitude play a huge role in how we behave on social media. They play an even bigger role if you decide to go through the paid advertising platforms. Here’s how:

• Motivation: Reviews and recommendations from friends and followers are powerful motivators. We’re more likely to buy something that’s been positively reviewed by people we trust.
• Perception: Our perception of products is heavily influenced by social media. Eye-catching photos and videos can make products seem more attractive and memorable.
• Learning and Memory: Social media helps us learn from others’ experiences. Seeing product information repeatedly reinforces our familiarity with a brand.
• Attitude: Interactions on social media can shift our attitudes towards brands, often making them more favourable through positive reinforcement and social proof.

Social Media as a Marketing Tool

Businesses can use social media to reach more people, engage customers, and drive sales. Here are some effective strategies:

• Creating Engaging Content: High-quality, relatable content can drive engagement and build loyalty.
• Utilizing Influencers: Collaborating with influencers can amplify your brand’s message and reach a wider audience.
• Interactive Campaigns: Polls, contests, and live videos can boost customer engagement and create a sense of community.
• Customer Feedback: Encouraging and responding to feedback can improve satisfaction and build trust.

But let’s be real, especially here in the small towns of New Brunswick. While social media can influence consumer behaviour, in 2024, it’s not enough to just post great content. You need to invest in digital ads to make sure people see it. Organic reach has declined, and without paid ads, your content might not get the visibility it needs to make an impact.

If you want to dive deeper, check out our article, “Content is Still King/Queen: But How Does it Reign in 2024?” We also have insights on optimizing content across different platforms in our “Social Media Maze” article on the Kiers Blog.

Key Takeaways

1. Social media is a game-changer for influencing consumer behaviour and decision-making, even in 2024. But, it’s no longer as easy as posting great content and expecting sales to soar like it was in 2016.
2. Every stage of the consumer decision-making process is impacted by social media, from need recognition to post-purchase behaviour.
3. Psychographic variables like motivation, perception, and attitude are shaped by our social media exposure.
4. Effective social media marketing strategies can enhance engagement and drive sales. However, with the increasing competition, constant optimization and testing are crucial.
5. Staying up-to-date with social media trends and consumer behaviour is essential for businesses to remain competitive. Don’t have time to stay apprised of the WEEKLY updates? We do and we’re here to help.

Leveraging social media’s potential can lead to significant advantages in today’s digital marketplace, making it an essential part of any marketing strategy. Need help handling all your marketing needs? Contact us today!

Photo Credit : ROBIN WORRALL on Unsplash