We just published a new Temkin Group report, Social Media’s Limited Effect On Purchase Decisions.
Social media is a very popular topic, so we explored the role that it plays in how consumers make their purchase decisions.
Here’s the executive summary:
What effect does social media have on purchase decisions? We examined this question using a survey of 6,000 US consumers. Based on their responses, we calculated the Temkin Purchase Influence Index (TPII) to gauges the level of influence that these channels have on the purchase and selection decisions of computers, cell phones, TVs, insurance, health plans, and credit cards. While the overall results show very few areas where social media has a strong influence on these purchases, a deeper analysis of consumers by age, income, ethnicity, and education uncovers pockets of stronger (and weaker) social media influence.
Here’s a chart from the report that highlights the overall effect of social channels:
Here are some additional insights from our analysis of the TPII across different consumers based on their age, income, education, and ethnicity:
- Computers: Social influence is strongest with African Americans
- Cell phones: Social influence is stronger with 30 year-olds
- Credit cards: Social influence is strongest with Hispanics
- Insurance: Social influence is strongest with low-income consumers
- Television: Influence of discussions with friends and families goes down with education
- Health plans: Ratings and reviews influence goes down with education
The bottom line: Tailor your social strategy to your product and target customers