Role of Social media in Effecting Consumer Behaviour May, 2014 | Page 2

The Role of Social Media in Altering Consumer Behavior Introduction to Consumer Behavior A Consumer is defined as the user of a particular product or service. The origin of Consumer Behavior study dates long back in time. However, we may say that the concept of Consumer Behavior has been there since the beginning of trade. As marketing would define it, “a product comes into existence when its demand is created”. Hence, the concept of consumer behavior is actually older than the concept of trade. Therefore, in order to know what should be created, it is important to know what the user wants and how the user would like it. This would enable the seller to properly pitch the product to the buyer. Knowing the behavior, i.e. the likes, dislikes and the preferences of the consumer hasn’t been very difficult recently. Internet has opened up many avenues for both, the producers and the consumers. Social Media and the Consumer Social Media is a virtual community or network created particularly to improve interaction among people. Here, they can create and share information with other people as they please. The most famous social media include Facebook and Twitter. Since the advent of Social media, the interaction between brands and the consumers has increased. Today, almost every brand has a Facebook and a Twitter account which is followed by their consumers, stakeholders or simply the people interested in the Brand and its products. The brand knows its followers and works to attract them accordingly. At the same time, the consumers are also very interactive with the brand. The consumers would know as soon as the brand launches a new product, or a new promotion on their existing products. Social Media Marketing is a relatively new concept in the world of marketing. The different forms of social media today have empowered individuals running small businesses and cottage industries to market themselves free of cost to a wide range of consumers. According to previous research, we have come to know that the social media channels are more effective for small and medium sized companies. When large companies and corporations advertise, traditional channels are more effective because social media will convey the message to more people than the brand intends to target. 1