Impact Of Social Media On Purchasing Decision

One of the most important definitions of Economics says “Demand means Desire backed by the willingness and ability to pay”. The key word here is ability! There is no purpose in targeting products at an audience that may be suitable for your products but cannot turn that desire into sales due to an inability to pay.  Economy of a location too matters greatly while selling products through an online medium. Developed countries may be more open to luxury products such as holiday packages or expensive gadgets that can be purchased off social networks.

What makes social media an important platform when it comes to influencing purchasing decisions? Since the digital revolution the right to choose and ability to affect pricing has resided in the hands of the consumer. Until a few years ago, pricing was based on competitors but that changed once social networks grew in power. Individuals pay considerable attention to what their peers have to say about a particular product. These reviews and opinions go a long way in determining the kind of decision a person would take in buying products. It has been observed that people are more inclined to buy products that have been recommended by their friends rather than what the brands have to say about themselves. These opinions and views validate their decision making and push them towards making a sale.

Social channels have the ability to reach consumers all over the world and have made this world a digital village. With a large majority of people between the ages of 15-64 using social media on a regular basis, it is not surprising that your products can garner a lot of attention from word-of-mouth publicity or more specifically through shares and retweets among other social communication methods. Purchasing power is therefore the heart of social media activity for brands and must be kept in mind while creating a social media plan of action.