Effects of Consumers’ Social Media Participation on Consumer Behavior

Abstract

Technological advancements have shaped and reshaped the marketing landscape from time to time. The digital revolution in particular has given rise to a new digital era that has changed this marketing landscape, perhaps permanently. One of the core technologies involved in defining this digital era is the Internet. The Internet has not only empowered the people by creating and disseminating information like never before but also has affected the way we conduct our businesses. Various business usages of the Internet in search engines, email, mobile, and social media have given rise to new ways of conducting marketing activities such as affiliate marketing, display advertisement, email marketing, search marketing, and social media marketing among others. The significance and the relevance of online social media marketing have made this particular digital channel a topical subject of the digital era. The effects of social media have been felt in influencing both seller and buyer behaviors. However, the focus of this chapter is to address two important aspects of consumer behaviors in an online digital social media environment. First, the authors propose a conceptual framework of consumers’ social media participation. Second, the chapter discusses how this participation affects consumers’ behaviors including their purchases. Finally, the authors present a few econometric challenges associated with modeling consumers’ social media participation and quantifying its impact on their behaviors.