Carmela Pittaluga
How does Online Media Effect Consumer Behavior
75% of shoppers make decisions based on social media personalities, this is called the "bandwagon effect". Social media influencers can endorse a product and profits for said product will skyrocket, with the item selling out instantly. Some companies will pay the influencer to endorse their product, even if the product is not of good quality. Many internet scams happen because of consumers buying bad items from sketchy companies because their favorite online celebrity told them to. Sometimes a company will give an influencer a stipend every time they sell a certain product. The influencer is required to endorse the product and can even give their followers a "discount code" to lower the price.
Bandwagon Effect
Do not purchase items just because a celebrity told you to, read reviews and do research before spending the money
Money Scams
Companies will promise you high quality for low costs, this results in the consumer receiving poor quality items, and having money stolen.
Discount Codes
Influencers are sometimes given a discount code to offer their followers. Many times companies will jack up the price of items to make the discounted price the actual price of the item
How does Online Shopping Effect the Economy
Consumers feel that online shopping is more efficient than physically going to the stores, which is not good for traditional brick and mortar stores. Online stores are forcing physical stores out of business, destroying jobs in the process. While creating more online stores can create more jobs by hiring people to work in factories and shipping centers, they are forcing people out of their local jobs. There is not a factory or shipping center in every neighborhood, meaning people in poorer areas cannot find a local job. There are ups and downs to both online and physical stores. because of the competition many physical retailers are starting to sell online, take Walmart for example. Walmart has a new service where you can order groceries online and have them delivered or pick them up at a later time. Of course there will always be things you cannot buy online, such as a mattress. Brick and mortar stores will have to learn to adapt to make things more convenient for the consumer.
Brick and Mortar Stores
Prices
Physical stores that you can walk into and browse
Because services are becoming more elaborate prices are going up
Lazy
The average consumer wants efficient and fast, and they want it from their couch. Buying online makes the lazy seem proactive
Works Cited
Barker, Shane. “How Social Media Is Influencing Purchase Decisions.” Social Media Week, Social Media Week, 26 May 2017, socialmediaweek.org/blog/2017/05/social- media-influencing-purchase- decisions/.
Bram, Jason. “How Is Online Shopping Affecting Retail Employment? Liberty Street Economics.” Liberty Street Economics, Federal Bank Reserve of New York, 15 Oct. 2017, libertystreeteconomics.newyorkfed.org/2017/10/how-is-online-shopping- affecting-retail-employment.html.
Guo, Stephen, et al. “The Role of Social Networks in Online Shopping: Information Passing, Price of Trust, and Consumer Choice.” The Role of Social Networks in Online Shopping: Information Passing, Price of Trust, and Consumer Choice, Stanford Edu,edu.
Mathers, Jason. “Is Online Shopping Better for the Environment?” EDF+Business, Environmental Defense Club, 6 Mar. 2014, business.edf.org/blog/2013/12/21/is- online-shopping-better-for-the-environment.
Miller, Kara. “How Online Shopping Is Changing Our Lives.” WGBH News, WGBH, 9 Jan. 2016, news.wgbh.org/post/how-online-shopping-changing-our-lives.
Sema, Patarawadee. “Does Social Media A Ect Consumer Decision- Making.” Scholars University , Scholars University , 20 July 2013, scholarsarchive.jwu.edu/cgi/viewcontent.cgi?article=1023&context=mba_student.
