Consumers in the U.S. continue to spend – and where social media is going to be a major factor. … [+]
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For 2022, one of the biggest concerns of Americans may be how record inflation eats up household spending and eats up wages. By 2021, the 7 percent increase in inflation is the largest in almost four decades. Americans see the price of basic necessities rise dramatically in 2021.
While government efforts to provide stimulus aid and ultra-low interest rates have prompted Americans to spend, supply chain problems have pushed prices to record levels as a result of such high demand for the product. Earlier this month, the U.S. Department of Labor reported that the core inflation rate, excluding volatile products such as food and gas, jumped to 5.5 percent in December, the highest in decades.
Yet, American consumers continue to spend – and social media continues to be a major factor in where Americans are taking their business. According to a new survey conducted by Point and OnePoll, more than one in three respondents said they consider social media to be “very influential” when it comes to their spending habits – 35 percent of respondents reported that, compared to only 12 percent who said social. The media is “very ineffective.”
The survey also found that more than half of Americans – 55 percent – even said that social media influenced them to go beyond their budgets or spend more money than a particular product. One reason cited was the pressure to “keep up with Jones”, with 35 percent of respondents agreeing.
It was epidemic
The impact of social media on the power of Americans was also extended by the epidemic. During lockdowns, and when calls to scale assemblies, Americans actually cut costs. However, in 2021 when the country began to stabilize in the new normal state, costs increased – even supply chain problems persisted.
“The epidemic has changed and consumer shopping habits are evolving,” explained Mary Snyberger, senior director of Avionos’ integrated marketing practice, which also tracked American spending habits in 2021. “Over the past two years, between online, personal and hybrid shopping, retailers have proven that they can adapt to the needs of their consumers and do something for a seamless shopping experience. Purchasing is on the rise and the future of shopping habits is changing. “
Social media has not only changed the way consumers deal, but also the way they discover new brands and products.
“Social influencers have gained consumer confidence by displaying their purchases, discussing product quality and providing their views to thousands of people on platforms like YouTube, TikTok and Instagram in an entertaining format. Customers are using other customer ratings and reviews to make final purchase decisions. Relying solely on brand-published content, “Sniberger said in an email.
Young people
Not surprisingly, the Avionos study further found that it is mostly the younger generation who use social media in their shopping decisions.
“Gen Zers (70 percent) and Millennials (68 percent) use social media to buy and interact with more brands than Gen X (51 percent) and Baby Boomers (33 percent) because these younger users are more likely to buy products than adults. That generation takes advantage of multiple channels for, “added Snibberger.
Gen Zers have been seen spending more time on social media than their older counterparts, which further explains why they see social media as a shopping destination compared to the older generation.
Yet not everyone sells using social media for shopping.
“Of those who haven’t made purchases through social media platforms, 45 percent don’t see social media as a shopping destination and 33 percent don’t trust social media apps, including my credit card number or other personal information,” said Snyberger. “Additionally, consumers often prefer to complete their purchase in a web browser (16 percent) or they want to view a product in person (15 percent) before buying it online.”
Different platforms
Avionos found that Facebook, Instagram, and TikTok are the most used products by young consumers.
“However, 56 percent of General Gers bought an item using a different channel than their original purpose,” Snyberger noted. “Because Gen Zers feel more comfortable using digital channels and more appropriate to use ecommerce and social platforms to complete purchases, retailers are more likely to adapt these audiences to the social platforms of their choice because they have a huge impact on consumer behavior development.” Forty-five percent of Millennials and Gen Xers use the online platform to purchase products through stores or carbide pickups, so retailers are more likely to engage with them both online and in-store because they prefer to see products before they buy. The omni-channel adds to the importance of scaling the business experience to meet where they want to be involved. “
