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Facebook Groups App

           People use Facebook Groups daily to stay connected to family and friends. Facebook has recently introduced a new Group app that helps people share experiences faster and more easily with all the groups they are in.  The app acts as a private newsfeed, and shares to only those selected within the group.   

            A Facebook group is a microculture because it is a small group of people who share similar values, activities, and interests within an organization.  People join groups to express their opinions and experiences to contribute to their own self-image. This is known as the value-expressive influence of groups.  

            The app also allows you to control notifications, as well as give  group suggestions based on pages a person has liked, or groups their friends are in. Therefore, Facebook groups also act as a reference group because each individual within the group is influenced by each other’s behavior and opinions.  This can also be known as the effects of group influence.

The Consumer Decision-Making Process & Social Media

Social media networking sites often help consumers make decisions. They provide personal feedback from a consumer that has already purchased a product or service. Since the majority of customer reviews are unbiased, potential consumers often search social media sites to find truthful answers when considering a new purchase.

A recent decision I encountered the other day, regarding a makeup purchase, involved the usage of social media sites, as well as the Consumer Decision-Making Process.  This process explains the steps that consumers take when making a large decision. The first step of this process is to recognize my needs, which included the need to purchase another brand of makeup because I currently wasn’t using a brand that fit my specific demands. Next, since I wanted to change to a new product, I decided to research customer reviews on the Sephora website. This is the second step of the process.  Afterwards, I narrowed down to a few brands that matched my particular requirements, such as the product being fragrance-free, hypoallergenic, and contains SPF. This is the third step of the process known as the Evaluations of Alternatives. I then moved onto the fourth step of the process, which is when I finally made my choice on the product I wanted to buy. Lastly, after testing the product, I was able to make my own conclusions on whether I liked the product and would purchase it again.

What are your questions about McDonald’s food?

Forbes magazine posted an interesting article regarding McDonald’s desperate need in changing their unhealthy image viewed by consumers.  Rather than being categorized as a fast-food chain, they would prefer consumers to perceive them as a fast-casual restaurant.  The company intends to change the views and opinions of consumers with the help of social media.

Brand personality refers to the set of human characteristics that are associated with a brand. Consumers are more likely to purchase from brands that have similar personalities to their own. McDonald’s brand personality is excitement and sincerity. The company promotes their brand personality through their advertising campaigns by associating their images with being youthful, fun, and family-oriented.  They are also known for giving back to the community with their Ronald McDonald’s House Charity.

Recently, there has been a change in eating habits of consumers.  A study referenced in the article stated that millennials reported a 20% decrease in visits to fast food chains, generation X reported an 11% decrease, and baby boomers indicated an 18% drop in visitation. Consumers associate fast food with being “cheap”, and would prefer food that has better quality.

With the use of social media, McDonald’s intends to shift consumer behaviour by answering concerning questions posed by consumers regarding the ingredients in the company’s food, and how it is processed. Evidently, the company is aiming for a more sophisticated brand personality, so they can be known for their quality food rather than “cheap” food.

Yelp = Social Proof

The growth of the internet has changed the ways consumers share and receive content. Companies are given more opportunities to promote and sell their products and services online. With the help of social media sites, consumers are able to provide feedback on a variety of companies with just a single click of a button.

Yelp is a social media site that is designed to help people find the best local services by looking through consumer reviews. Comments by customers who have experienced the service can offer real advice to those that are looking for truthful, unbiased feedback.

Potty Mouth Princess: A simple tactic to draw attention

Potty Mouth Princess is a shocking video that features young girls using foul language to bring awareness upon the inequalities that women currently face.  The video first appeared on FCKH8.com, a retail store and activist organization, and YouTube, and has become viral throughout social media since. The group that created the video is known to be a reputable group that promotes good causes, but it seems that people watching the video are too distracted by the vile language being spoken by the young girls rather than paying attention to the actual statistics the group is trying to emphasize. People continue to post on social media sites that the video has a powerful message being addressed, but the delivery was unnecessary.

Due to our fast-paced society, getting a consumer’s attention is difficult. The group that posted the video felt that they needed to use vulgar language to attract the public’s attention. The young girls using this foul language is an example of surprising stimuli, defined as using unexpected scenes to capture a consumer’s attention. Although people felt uncomfortable watching the video and had a negative attitude towards the advertisement, it captured attention and created a discussion on television talk shows and social media sites.

Interbrand names Apple as the most valuable brand in the world

Apple ranks the top spot in Interbrand’s Best Global Brands ranking for 2014. The list consists of 100 firms, with 13 being in the technology sector. Apple bumped Coca-Cola to the third spot, after being first for 13 years straight. The ranking is based on a number of factors including financial performance of the company’s products and services, consumer loyalty, and the role the brand plays influencing a consumer’s purchase decision.

To be included in the Best Global Brands ranking, the brand must be globally recognized. What proportion of the purchase decision is attributed to the brand, instead of price, convenience, and product features? How does the “brand” of a company contribute to its business results today?

“Like” us on Facebook!

A couple of weeks ago, the Ryerson Commerce Society (RCS) were distributing pizza at Ted Rogers School of Management. A slice of pizza was only given out to those who “Like” the RCS Facebook page.

This is an example of Instrumental Conditioning, a type of learning in which behaviour is modified through reinforcement or punishment. If the behaviour was increased it is either a positive reinforcement, where behaviour is strengthened by the addition of something, or a negative reinforcement, where behaviour is strengthened by the removal something. If the behaviour was decreased the process is punishment. When a student “Like’s” the student group’s Facebook page, he or she is rewarded with a slice of pizza. This act is a positive reinforcement because reward is added after the action.

Cellphone Lanes?

I was watching an episode of The Social, a Canadian television talk show, which featured an interesting topic on social media. The city of Chongqing recently came up with the idea of a separate cell phone lane for pedestrians to prevent potential dangers of walking and texting simultaneously. 

A 50 meter stretch of sidewalk in the city has been split into two lanes- one for allowing cellphone use while walking, and another that prohibits the act. Some say the lanes are benefiting society by minimizing the security risks for mobile phone addicts, while others believe this is promoting more usage on our phones.

The idea of “phone lanes” was taken from a similar test in Washington D.C. as part of a behaviour experiment. Researchers observed that most people, especially those texting, ignored the cellphone lanes.

Apple Products continue to surpass its “Brand Name”

Hundreds of people lined up outside the Toronto Eaton Centre overnight this past Friday for the new launch of the iPhone 6 and iPhone 6 Plus. The new devices are far from cheap with the basic models to be priced at $749 for the iPhone 6, and $859 for the iPhone 6 Plus. Most customers identify value of a product or service with its price. As price increases, the quantity demanded tends to decrease. But in this case, the price-quantity demand relationship seems to challenge this standard assumption.  

Yes, the prices of the new phones are expensive, but are consumers really only purchasing the “brand name”? We measure the value equation by determining what you get compared to what you give. With their larger screens, and the new iOS 8 software system, it is easy to understand the hype around these new gadgets. Apple is promising consumers a great deal when it comes to increased battery life, advanced cameras, and easier usage with the new software system. Since Apple is known for their great quality, fans continue to remain loyal to this brand. When a consumer experiences high value continuously with one company, the consumer remains loyal to that brand and will pay more for a future product.  It appears that as the prices of Apple products continue to increase, the sales will not differ.

The lineup for the new iPhone releases is a great representation of consumer involvement towards a product. These consumers in line, which are most likely previous iPhone owners, are willing to give their time and effort when purchasing Apple products. They know that Apple is a reliable brand.

The Evolution of Twitter 

Twitter has finally integrated into the e-commerce market with the launch of a “Buy” button, that allows users to purchase goods and make donations with just a few clicks. This button will appeal to consumers because users will get access to special offers from several brands and nonprofit organizations found only on your mobile. This app will benefit sellers because followers of a brand will soon become consumers.

The ALS challenge has become a global movement with the help of social media. The challenge was designed to raise awareness and funding for ALS, Amyotrophic Lateral Sclerosis, also known as Lou Gehrig’s disease. ALS is a neuromuscular disease that attacks motor neurons which damages the brain and spinal cord, preventing control over muscle movement. Normally after being diagnosed, the average life expectancy is 3-5 years.

In the months of July and August, athletes, celebrities, politicians and thousands of others participated in the Ice Bucket Challenge to help raise money and support those with ALS. Social media platforms, such as Facebook and Instagram, provided a network bringing awareness to this serious disease. The challenge dares those who are nominated to pour ice water over their head and to nominate others to do the same. Normally 3 people are nominated per person and each person nominated has only 24 hours to complete the challenge.