Report: Social Media’s Limited Effect On Purchase Decisions

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.

Download report for $195

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

Download report for $195

The bottom line: Tailor your social strategy to your product and target customers

Written by 

I am an experience management transformist, helping organizations improve business results by engaging the hearts and minds of their customers, employees, and partners. My "job" is Head of the Qualtrics XM Institute. The Institute is still being established, but our goal is to help organizations around the world thrive by mastering Experience Management (XM). As part of this focus, I examine strategy, culture, interaction design, customer service, branding and leadership practices. And, as many people know, I love to speak about these topics in almost any forum. Prior to joining Qualtrics, I was managing partner of Temkin Group (leading CX research, advisory, and training firm), co-founder and chair of the Customer Experience Professionals Association (CXPA.org), and a VP at Forrester Research. I'm a fanatical student of business, so this blog provides an outlet for sharing insights from my ongoing educational journey. Check out my LinkedIn profile: www.linkedin.com/in/brucetemkin

4 thoughts on “Report: Social Media’s Limited Effect On Purchase Decisions”

  1. Looks like User Reviews are a very strong component of the choice process. If true, wouldn’t surprise me. Also speaks to the challenge of maintaining credibility & control over false reviews by interested or disgruntled parties (e.g., Yelp, etc.)

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