The role of the Internet and Social Networks in the purchase decision process

VOL. 0053 – FLORIDA, TUESDAY, APRIL 30, 2024

Juan F. Arjona Harry

President & CEO Strategee   

Buy a product or service involves a process in which to invest a certain amount of time (this varies by category), and additionally, the purchase decision is always consuming mental effort on the part of the consumer (who must do the task of analyzing what would be the best choice). All of this, to buy wisely.

The purchase process by any consumer goes through the following stages, each of which has its own particularity:

1.   Recognition of the problem: that is when the consumer knows that there is an ideal state, which usually differs from its actual state, thus resulting in an initial state of tension which is what triggers the buying process internally.

2.   Finding Information: then as consumers (nobody) likes to go wrong with the purchase, there is a process called: "Finding Information", by which the consumer seeks to reduce the perceived risk with the purchase. This risk may be of various forms and origins, the following five are risks that are generally presented to the consumer (and for which he will seek as much information in order to reduce them):

2.1.      Functional Risk: What the consumer bought gets damage.

2.2.      Economic Risk: What the consumer bought at a certain price, is cheaper at another store.

2.3.      Physical Hazard: What the consumer bought implicates a risk for his life.

2.4.      Psychological Risk: What the consumer bought affects his image in society, since people think he is a money waster.

2.5.      Social Risk: What the consumer bought may be disapproved by his reference group for it, the consumer asks the company of someone (more common in women).

3. Evaluation of alternatives: The consumer, after the searching stage, chooses the options on which making the purchase (usually between two and a maximum of five brands, although it is strange that arrives five.

4. Selecting the ideal alternative: The consumer, by applying: compensatory or non-compensatory decision rules, will make the decision.

5. Post-purchase evaluation: The consumer once used / consumed the product / service purchased, makes an objective assessment of it and forms a positive or negative impression, logging into his / her permanent memory this shopping experience and brand purchased.

What is happening today with Stage 2 of this purchase decision process?

Today, Internet 2.0. Multiplied social networks providing a wealth of information for consumers, minimizing the risk of purchase.

Internet provides a quasi-unlimited range of sites, blogs, portals brand evaluation (eg edmunds.com is a highly visited website in the U.S. for the purchase of a vehicle), open forums where people discuss the shopping experiences, use, disposal, of any product and / or brand.

Additionally, the role of social networks extended the initial possibilities of the circle of friends who asked, extending a network almost endless potential probable validators / legitimizing the purchase decision, and today they are consulted regularly and frequently by consumers, in order to avoid mistakes with purchase.

Brands must include in their branding guide, a very special and decisive chapter, and it is precisely the map of HCS High Credibility Sources (Spokesmen, experts, opinion leaders, and celebrities), that are part of the digital world in social networks and the Internet, they constitute validators, legitimizing the brand, in order to reduce consumer perceived risk with purchase.