Podcast
Questions and Answers
What has contributed to the shift in power from vendors to consumers in the marketplace?
What has contributed to the shift in power from vendors to consumers in the marketplace?
Consumers now have less information about products than vendors.
Consumers now have less information about products than vendors.
False
What is information overload?
What is information overload?
It is when the amount of input exceeds the capacity to adequately process that information.
Web 2.0 technologies have made interactions between vendors and consumers much more _____.
Web 2.0 technologies have made interactions between vendors and consumers much more _____.
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Match the following concepts with their definitions:
Match the following concepts with their definitions:
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What role do algorithms play in consumer decision-making?
What role do algorithms play in consumer decision-making?
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Vendors no longer need a social media presence to engage with consumers.
Vendors no longer need a social media presence to engage with consumers.
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Explain how Web 2.0 has impacted consumer behavior.
Explain how Web 2.0 has impacted consumer behavior.
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What does information overload primarily affect?
What does information overload primarily affect?
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Consumers tend to prefer websites that have changing content and appealing designs.
Consumers tend to prefer websites that have changing content and appealing designs.
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What phenomenon explains how people provide information and support online, despite not knowing each other?
What phenomenon explains how people provide information and support online, despite not knowing each other?
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The practice of brands collaborating with social influencers across platforms is known as __________.
The practice of brands collaborating with social influencers across platforms is known as __________.
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Match the following types of social media interactions with their corresponding consumer preferences:
Match the following types of social media interactions with their corresponding consumer preferences:
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Which social media platform is NOT mentioned as a preferred tool for vendors to engage with consumers?
Which social media platform is NOT mentioned as a preferred tool for vendors to engage with consumers?
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High power distance countries are less likely to use celebrities for brand promotion on social media.
High power distance countries are less likely to use celebrities for brand promotion on social media.
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What do US bloggers have a legal obligation to disclose according to the Federal Trade Commission?
What do US bloggers have a legal obligation to disclose according to the Federal Trade Commission?
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Consumers expect social media posts from vendors to be __________ and genuine.
Consumers expect social media posts from vendors to be __________ and genuine.
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What percentage of consumers expect companies to increase their social media usage to address service/support issues?
What percentage of consumers expect companies to increase their social media usage to address service/support issues?
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Web 2.0 technology has not significantly changed consumer behavior.
Web 2.0 technology has not significantly changed consumer behavior.
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Which age group finds influencer marketing more effective compared to direct marketing strategies?
Which age group finds influencer marketing more effective compared to direct marketing strategies?
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The industry of influencer marketing is estimated to be worth around ______ million.
The industry of influencer marketing is estimated to be worth around ______ million.
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Match the cultural dimensions with their potential influence on consumer behavior online:
Match the cultural dimensions with their potential influence on consumer behavior online:
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Study Notes
Internet's Impact on Consumers and Vendors
- Internet access has dramatically increased the amount of information available to consumers, shifting the information balance towards them.
- Smartphone penetration has made information globally ubiquitous, accessible anytime, anywhere.
- Consumers now have access to instant information from vendors, more than they have had before, creating a "reverse asymmetry" in information.
- Vendors now need substantial web presence and social media engagement.
Web 2.0 and Consumer Decision-Making
- Web 2.0 technologies simplify interactions between consumers and vendors.
- Consumers can compare products from multiple sources: vendor websites, third-party sources, and competitors.
- Consumer reviews and feedback, observed through algorithms, influence purchase decisions.
- "Shopbots" aid consumers in making informed decisions.
- Information overload is a concern with the sheer volume of online data, affecting decision quality.
- Website recency and aesthetics (layout, colours, fonts) are critical heuristics for consumers.
Social Media and Online Communities
- Internet-based social groups, consisting of strangers, are growing rapidly.
- The "kindness of strangers" phenomenon is evident, providing information and support.
- Online communities influence consumer choices, with individuals becoming experts through online platforms (e.g., reviews).
- The growth of online communities influences word-of-mouth, and perceptions of source credibility, expertise, and likability are affected.
- Influencer marketing, collaboration between brands and social media influencers, is a significant new marketing tool.
- Online relationships built through social media serve as effective brand promotion through social referencing.
Cultural Dimensions and Social Media
- Social media influences consumer behaviour across different cultures.
- Consumers in individualistic or collectivist cultures may use social media differently in their purchasing decisions.
- Cultural power distance may influence the preferred use of celebrities in social media advertising.
- How online communities function under different cultural dimensions is an area of ongoing research in consumer behaviour.
- Transparency and authenticity are critical for social media interactions for consumers worldwide.
- Fake blogs and marketers who are not genuine are not looked upon favourably.
Consumer Preferences and Vendor Interactions
- Consumers have clear preferences for how vendors use social media.
- Consumers value information provision, problem-solving, and feedback requests.
- Incentives (e.g., coupons, free products) are a key driver of engaging consumers on social media.
- Social media is impactful in customer acquisition and brand recall for vendors; consumers who interact with brands via social media are more likely to recall, share information, connect, and make a follow-up purchase.
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Description
This quiz explores how the internet and Web 2.0 technologies have transformed the consumer and vendor landscape. It discusses the shift in information balance, the role of smartphones, and the influence of online reviews on purchasing decisions. Test your knowledge on these impactful changes in consumer decision-making.
