Keep your friends close but your social media closer

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The economic principle I’m exploring is, people generally respond to incentives in predictable ways & institutions are the “rules of the game” that influence choices. My research question to help me study the economic principle is, “How does social media cookies force decision making?” The article published in The Content Factory titled “16 Reasons Why Your Business NEEDS Social Media Marketing” demonstrates this economic principle because it shows how social media is very successful when it comes to decision making.

 First, the author states that, “ One of the reasons social media is important is because of the highly customizable nature of social media ads. Facebook ads, for example, allow you to target users by things like location, education level, industry and even purchase history and the pages they’ve liked.” This means that social medias target your personal information in order to suede your decision into purchasing the company's product.

 Second, it also states some statistics that, “70% of business-to-consumer marketers have acquired customers through Facebook” More than half of social media users interact with businesses through social media instead of face to face.

 Third, “ A report published by Texas Tech University found that brands with active social media profiles have more loyal customers.” This means that in order to create loyal bonds between businesses and customers social media is the most successful way to persuade one's perspective and interest them into the purchase of the product.