Web 2.0 Featured Article

Social Networks Have Complex Role in Product Decision Making

By Gary Kim, Contributing Editor

Social networks have been touted as a new way for brands to create and sustain conversation about their products and services, especially in the consumer retail arena. But a new study by MomConnection.com provides mixed evidence on that score.

 

According to recent findings from MomConnection.com, 60 percent of users report having used a social network in the past 24 hours, turning to online communities and social networks for advice, support and connection.

 

But the survey also suggests that they do not use social networks as a resource when it comes to product decision-making. In other words, social networks are used to share information about products users already have experience with, rather than to choose new products they have not used before.

 

Moms are four times more likely to turn to their personal offline network of friends and family than online social networks for product recommendations and buying advice.

 

The study found that social networks are not a channel where most moms are receptive to gathering product information, but rather is largely for entertainment and personal communication.

 

Still, the results suggest that social networks might be growing in influence. About 24 percent of respondents indicated that they have used Facebook for product information and buying advice, while five percent have used MySpace (News - Alert) for product information, while three percent have used Twitter.  

 

The survey also found that the respondents interact with brands on a surprisingly high level, actively requesting information and resources from the companies whose products they use. Some 81 percent have visited a brand's Web site for more information while 65 percent have signed up to receive a newsletter from a brand.

 

Some 36 percent have posted a link or joined a fan group on Facebook (News - Alert). Also, it appears that users become important "influencers" once they have formed an opinion about products and services. About 94 percent of respondents report they give advice to other moms in at least one product category.   

The average mom gives and gets advice in more than eight product categories and 69 percent recommend specific brands by name to other users.

About 54 percent have rated or reviewed a brand online and 37 percent have posted their opinions about a product in an online forum or blog.

 

The survey suggested a complex role for social networks, which are used heavily to share opinions, less so to get primary advice about new products. But social networks are new, and the ways consumers interact with social sites will change.

 

The survey also indicates that Web sites, user views and other online content are established and growing sources of product research and buying advice. About 41 percent of respondents say they have used Web sites for such purposes, while 34 percent have relied to some extent on user reviews on shopping sites, while 32 percent have used articles.

Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.

Edited by Amy Tierney