Are You On Social Media?

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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 Affect People When Making Decisions?

 The article published in Johnson & Wales University titled “ Does Social Media Affect Consumer Decision Making?” demonstrates this economic principle because it shows that social media plays a huge role in how people can make decisions. It covers different aspects of how social media can get involved when making a final decision.

 First, Pattarawadee Sema states that, “it is estimated that over 500 million people are interacting with social media”. This means that a majority of people all over the world are involved with social media. Sema did some studies and found that , “recommendations by friends or connections on social media also could help consumers on decision-making. Those recommendations could help brand attitudes, purchasing attitudes, and advertising attitudes.” This is saying that companies can gain new customers threw adds that are shown on social media.

 Second, a study has shown that social media is also used for marketing. Sema states, “social media is used as an advertising for the marketer. Marketers take this advantage and create marketing strategy, which in turn could help them gain more customers.” People can learn about companies and product on apps that they use on the daily that would persuade/get them interested in a product and possible end up purchasing the product.

 Third, Sema has discovered that, “Communication through social media has found impact on consumer decision-making and marketing strategies. Consumers tend to make purchases or conduct business on social media.” A new thing on Instagram is that when scrolling through your feed there are advertisements with a link attached to be able to learn and eventually purchase the product with you having to search it up on the internet.

 In my next blog post I will research “How does our surroundings affect our decisions?”