Are Facebook Fans Really Spending More on Brands They "Like"?
Facebook provides a place for socializing and keeping track of friends and family.
Studies suggest that Facebook also offers a medium for businesses and individuals that are interested in developing their brand and obtaining more exposure for their products. With this opportunity available, companies have joined the bandwagon to get their brand name on Facebook and encourage their fans to click on the "like" button to build up their brand reputation.
It seems this reputation building technique is actually working, too. In a recent study, Syncapse, a marketing agency specializing in social media marketing, reported that fans on Facebook that "liked" products are far more likely to spend more on those brands than people who have not clicked the "like" button.
Curious to see what the real statistics were, Syncapse decided to do a full study called "The Value of a Facebook Fan: An Empirical Review". Six areas of consumer behaviors were focused on in this expansive study, including the brand's perception and recalls, the fan loyalty and whether they are prone to recommend it, the brand reputation, media value, and the cost of the product.
These fans, according to the study, are spending around $71.84 more each year on the products than non-fans.
The final figure suggests that people are definitely more likely to spend more if they "like" a brand on Facebook, but the truth is the research only verified a connection between the fans and the products. Although the chances are more likely that they will purchase and promote the products more, the study also revealed that a good amount of fans never spent a dime on the brands that they "liked" and had no intentions of recommending the products.
This is not bad news for companies, though. The amount of "likes" on Facebook does help out with reputation building, whether or not the fans purchase the products, services, or brand. The more "likes" a brand acquires, the more improved their online reputation becomes, giving it an edge over competing brand names in the online market when it comes to consumers.
Studies suggest that Facebook also offers a medium for businesses and individuals that are interested in developing their brand and obtaining more exposure for their products. With this opportunity available, companies have joined the bandwagon to get their brand name on Facebook and encourage their fans to click on the "like" button to build up their brand reputation.
It seems this reputation building technique is actually working, too. In a recent study, Syncapse, a marketing agency specializing in social media marketing, reported that fans on Facebook that "liked" products are far more likely to spend more on those brands than people who have not clicked the "like" button.
Curious to see what the real statistics were, Syncapse decided to do a full study called "The Value of a Facebook Fan: An Empirical Review". Six areas of consumer behaviors were focused on in this expansive study, including the brand's perception and recalls, the fan loyalty and whether they are prone to recommend it, the brand reputation, media value, and the cost of the product.
These fans, according to the study, are spending around $71.84 more each year on the products than non-fans.
The final figure suggests that people are definitely more likely to spend more if they "like" a brand on Facebook, but the truth is the research only verified a connection between the fans and the products. Although the chances are more likely that they will purchase and promote the products more, the study also revealed that a good amount of fans never spent a dime on the brands that they "liked" and had no intentions of recommending the products.
This is not bad news for companies, though. The amount of "likes" on Facebook does help out with reputation building, whether or not the fans purchase the products, services, or brand. The more "likes" a brand acquires, the more improved their online reputation becomes, giving it an edge over competing brand names in the online market when it comes to consumers.
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