Lecture 9: Social media and social consumers

What are social media?

Internet-based channels that allow users to interact and self-present with broad and narrow audiences. (Carr and Hayes, 2015)

What is meant by 'digital consumption'?

refers to how much of modern consumption is embedded in a digital world. Consumers may respond differently to digital interactions, such as influencers or chatbots, compared to face-to-face interactions.

- digital environment = uncertain, future is unclear e.g. COVID built up QR code use

What is the 'quantified self' trend? (Wolf, 2010)

the growing practice using digital technologies to measure, track, and analyse aspects of their own lives in order to improve self-knowledge and self-management.

Digital Data + consumer

digital data has led to increase in popularity for products, apps and services that encourage consumers to improve their behaviour through feedback

- trend known as 'quantified self'

- self-monitoring technology has had a significant impact on the health and fitness sector

Big Data effect on consumers

-data can shape how individuals understand themselves and their relationships with others. It acts as a mirror for self-improvement, discovery, and knowledge, while also revealing patterns of social interaction (Giesler, 2012).

why is big data important for marketers?

allows marketers to build greater connectivity and ongoing conversations with consumers, offering increased convenience, ease, and instantaneous interaction

what is 'found data'?

-refers to data that is naturally generated through everyday activities- includes credit card transactions, Google search data and mobile phone transactions

What are the three Vs of big data?

Volume, Velocity, Variety.

What are limitations of big data?

- It shows correlation but is poor at establishing causation.

- contrasts with qualitative research, which is better at exploring motivations and underlying reasons for behaviour

- does not always provide the full picture of consumer behaviour

- data quality issues, as Big Data comes from many different sources and formats, making it difficult to assess accuracy and reliability quickly

example of big data

Target used consumer insights to predict woman's pregnancy (Hill, 2012)

- can be applied to extending the understanding and prediction of consumer attitudes, needs and purchasing decisions

What are some implications of big data in marketing?

It helps in understanding consumer attitudes, needs, and purchasing decisions.

rise of social media

- increasingly rapid growth

- changed the way we socialise and interact with each other

- new forms of communication- globally connected networks

- important to understand how it is used across cultures

why is social media attractive to brands?

-because of its sense of immediacy, its relative ease of production and its ability to create communities (Casalo et al., 2020)

- Companies create platforms for new and existing customers to find out more about their consumers and to market products to them

- interactive approaches = games, quizzes, insta lives

What are the outcomes of adopting mobile technology? (Martin and Willmott, 2014)

- Pressures on prices due to transparent digital pricing = easy to switch between brands

- new businesses emerge from unexpected places- barriers to entry online = low

- Importance of alpha fans- build a buzz across digital world

- Rapid integration products and services

- location-based services e.g. Uber, Zipcar

- deep discounts

- immediate gratification - content available instantly e.g. Spotify + Netflix

How do companies nurture 'alpha fans'?

By encouraging them to build a buzz that spreads rapidly across digital platforms.

What is an example of a location-based service?

Zipcar, which allows users to drive a car without owning one.

What is immediate gratification in the context of digital consumption?

Instant access to books, music, and films through subscription models.

digital decision-making process

1. search online for products and services

2. use brand and comparison websites

3. decide based on rating and ease of purchase- or choose to save for later

4. use one click payment e.g. Apple Pay

What is the first step in the digital decision-making process?

Searching online for products and exploring brands recommended by friends or influencers.

What role do comparison websites play in online shopping?

They help consumers shop online by comparing different brands and prices.

What is the significance of one-click payment options?

They simplify the purchasing process, enhancing convenience for consumers.

How has social media changed brand interaction?

It allows for immediate feedback and engagement with consumers.

What is a characteristic of social media that attracts brands?

Its sense of immediacy and ability to create communities.

What is the impact of digital technologies on new business emergence?

They lower barriers to entry, allowing companies to easily enter new markets.

What is the importance of understanding cultural differences in social media usage?

It helps companies tailor their marketing strategies to different consumer behaviors.

What are interactive approaches used by companies to engage consumers?

Games, competitions, quizzes, and live broadcasts.

What is omnichannel shopping?

A shopping approach where consumers engage in both online and offline channels.

What are showrooms in omnichannel shopping?

Physical stores where consumers view products before purchasing online.

What are webrooms in omnichannel shopping?

Instances where consumers research products online but go to the store to purchase.

What is an example of a company using omnichannel shopping?

Vestiaire Collective, which opened a boutique in Selfridges, London.

- sells pre-owned designer items

- The thinking is that local shoppers in big cities will get to know the brands and shop both online and offline (Chai, 2020)

omni-channel decision journeys for cosmetic shoppers (Wolny and Charoensuksai, 2014)

- studied cosmetic shoppers, identifying three types of decision journeys:

Impulsive journeys, balanced journeys, and considered journeys.

What characterizes impulsive journeys in omnichannel shopping?

Less deliberation and search, often involving spontaneous clicks on sites.

What characterizes balanced journeys in omnichannel shopping?

More extended research, including both webrooming and showrooming.

What characterizes considered journeys in omnichannel shopping?

Involves extensive comparison of sites and stores with pre-shopping information gathering.

influences on digital decision-making

- problem recognition

- search

- alternative evaluation

- choice

- outcomes of choice

low involvement vs high involvement digital decision making

- high: Important, costly, or risky decisions

Extensive information search (reviews, comparisons, expert opinions)

Perceived risk (financial, social, or performance risk)

Brand reputation and trust

User reviews and ratings

Social influence (recommendations, influencers, online communities)

Time spent evaluating alternatives

Personal relevance and long-term impact

- low: Routine, low-risk, or habitual decisions

Convenience and ease of use

Price promotions and discounts

Habit and past behaviour

Visual cues and platform design

Availability and speed of purchase

Recommendations and algorithms

Low cognitive effort

What is the impact of digital decision-making on product selection?

Consumers cannot physically interact with products, making high-quality web content essential.

Post-Puchase Evaluation

-Consumers can take their time to assess what they have bought in the comfort of their home and if they don't like it, they can return the product

-However involves significant environmental impacts- Includes carbon footprint from transportation, processing costs, and waste.

What does dematerialization refer to in the context of digital identity?

The shift from physical possessions to immaterial forms, like digital music.

What is re-embodiment in the context of digital identity?

The idea that online personas are not constrained by physical appearances.

What does co-construction of the self mean?

Online identities are developed through interactions with others in social media.

What is distributed memory in digital identity?

The concept that the internet retains memories of our past that we may not.

FANGS

Facebook, Amazon, Netflix, Google

- through ease of digital purchase, developed method essential to their success

- they use autocompleting and suggesting techniques (AI). Testing what is likeliest for click throughs.

digital self - Belk, 2013

- Dematerialisation

- Re-embodiment

- Co-construction

- Distributed memory

- lives no longer private

digital identity

the sum of digital traces relating to an individual or a community that define their online presence' (Ertzscheid, 2016).

- who I am: profile traces

- how I behave: browsing traces

- what I think: content traces

Why does digital identity matter in marketing?

It allows for personalisation of ads, recommendations, and building customer loyalty. e.g. Costa app

What are the challenges associated with digital identity?

Managing privacy and the potential for oversharing personal information.

- consent

- data privacy laws

The rise of the selfie

- Can be described as today's reincarnation of Belk's re-embodiment and co-construction of self

- Digitalisation allows consumers to present themselves continually in social media

- also involves 'digital narcissism'

What is digital narcissism?

An excessive focus on oneself, often seen in the context of social media.

What are the four elements of a brand selfie according to Presi et al. (2016)?

A person, a brand logo or product, physical surroundings, and technology.

Brand Selfies

can lead to marketplace conversations and even have an impact on the image of the brand in the market

What is the megaphone effect in branding?

Consumers use brands as companions to express their experiences.

How have selfies impacted brand imagery?

They have influenced the aesthetics of ads, promoting spontaneity and authenticity. (Shroeder, 2008)

What is the power of positive content in marketing?

Brands can create content that supports emotional health and encourages positive habits. e.g. - gambling awareness "When the fun stops, stop"

- follow well-being creators

What phrase is associated with responsible gaming and gambling?

When the fun stops, stop.

instagram

was established in 2010 that allowed bloggers and brands to communicate

- rise of influencers

What is influencer marketing?

Using influential people to promote brands and products on social media. (Tabellion and Esh, 2019)

Who are social media influencers?

Individuals with established credibility and significant influence over their followers' decisions. (Ki and Kim, 2019)

role of SM influencers?

- post regularly on social media platforms

- Actively create content that is consumed by large audiences (Delbaere et al., 2020)

- Generate a large volume of engaged followers who pay close attention to their opinions

-Strong network = ability to affect purchase decisions (Solomon et al., 2019)

- build trends

- haul videos

What is the role of influencers in consumer interaction?

They engage with followers in real-time through comments and live sessions.

What ethical issue is associated with influencer marketing?

The requirement to label paid-for content to maintain transparency.

impact of SMI's on consumption behaviour

- Influencers are opinion leaders- powerful and persuasive in terms of the advice and influence they have on consumers (Thakur et al., 2016)

- exert power

- unbiased info

- socially active

- risk takers

- similar to you

- potentially leads to significant positive eWOM

What are the key ethical issues in influencer marketing?

Influencers must label paid content (UK, US, France; ASA) for transparency

Labeling can reduce authenticity and credibility (Evans et al., 2017)

Influencers monetise personal lives, sometimes for very high fees (e.g., Kylie Jenner $1.2m/post)

Ethical concerns over using children or family in content (exploitative?)

Debate over influencer responsibility, e.g., promoting sustainability (Kourtney Kardashian)

Rise of "deinfluencers" promoting mindful consumption (Tran et al., 2025)

What is participatory culture?

A culture where users can be producers, influencers, and consumers of information. (Ashman et al., 2015)

- means lower barriers to commercial, political, social and artistic engagement as knowledge is widely available and shared across networks

What is social shopping?

Collaborative activities involving verbal and non-verbal interactions with others during online shopping. (Yang et al., 2015)

- millennials often social shoppers, looking to share info and have discussions about liked/ disliked brands - can discover friends through Insta, Facebook and Pinterest

What are multi-sided platforms (MSPs)?

Technologies that create value by enabling direct interactions between multiple participant groups (Hagiu, 2014).

- require acceptance by different participants for the platform to work e.g. Airbnb- both sides need each other

What is the 'hive mind' concept in participatory culture? Earls (2009)

Collective intelligence that supports collaborative information, ideas + products

- social shopping

- Technology and collaboration

- Gamification

- The internet of things

What is the significance of influencer endorsements?

They can lead to significant positive electronic word-of-mouth (eWOM) for brands.

What is the potential downside of influencers monetizing their lives?

It can lead to a loss of authenticity and credibility.

What is the role of opinion leaders in marketing?

They influence others' attitudes or behaviors and possess social power.

What is the impact of algorithms on social media content visibility?

They determine the ease of access to content and influence user engagement.

What are the implications of influencer marketing across sectors?

It has become a widely used and effective form of advertising.

What is the concern regarding the use of children in influencer content?

It raises ethical and moral questions about exploitation.

How do brands interact with social media influencers?

By providing products or compensation to promote their brands.

What is the relationship between Airbnb and potential renters?

Airbnb needs to have several options available to attract renters, while potential hosts are attracted by the market size.

How has consumer power changed in the digital age?

Consumers can now collaborate and share content among themselves, reducing reliance on commercial intermediaries.

What skills do consumers bring to digital content production?

Consumers develop technical skills and digital literacy for production tasks.

- group intelligence can be built, not subject to organisational control

What is the significance of user-generated content in the market?

User-generated content adds value to market offerings when companies manage and monetize it.

How do consumers sometimes bypass companies?

Consumers may work with like-minded individuals to create group intelligence, independent of organizational control.

What role do individuals play as cultural intermediaries?

Individuals may act as cultural intermediaries, sometimes ignoring copyright and legal restrictions.

How does Dahl (2018) define gamification?

- the inclusion of game-like elements in non-gaming contexts to motivate specific behaviors.

What are the two key aspects of successful gamification according to Dahl (2018)?

Successful gamification should include rewards and a competitive aspect.

What are some applications of gamification?

Numerous apps use gamification to help users save money, get fit, or work more efficiently.

What does the Internet of Things (IoT) refer to?

IoT is a network of connected entities through sensors that can be located, identified, and operated upon.

How can IoT be described from a consumer perspective?

IoT consists of digitally connected devices that send and receive data, integrated into daily life. (Szmigin and Piancentini, 2022)

What is the definition of Artificial Intelligence (AI)?

AI "refers to programs, algorithms, systems and machines that demonstrate intelligence" (Shankar, 2018).

- mimics human behaviour

What opportunities does AI offer to businesses and consumers?

AI allows for innovative solutions, such as driverless cars, which change business models and consumer experiences.

- predicts consumer needs or preferences by online retailers

- deals with large amounts of data and customers

What are potential downsides of AI?

Downsides include privacy issues and risks from faulty AI algorithms.

How can AI enhance consumer experience?

AI can provide personal assistants and automatic language translation.

What is the role of AI in the background?

AI shapes consumer experiences invisibly, influencing content on social media and the internet based on behavior.

How does AI assist in operational aspects of product creation?

AI improves manufacturing processes to cut costs, benefiting consumers with better quality and lower prices.