How Networks affect consumer behavior

In the United States, a man's goal is to start from nothing and develop a highly-profitable business : it is the self made man theory. It is not as easy as it sounds though and one of the main difficulties you have to overcome is consumer behavior. It is key in order to succeed that you understand what consumers like and how will they change their opinion on your brand.

Nowadays social networks has become a very important factor in consumer behaviors. Most companies and brands use social networks in order to advertise because it is a simple and free way, the only problem it is also a  very dangerous way.

Studies in the United States report that people interact with brands on Facebook more than any other social networks, most fans read news feed on those brands and interact with them. You have to admit social media is a very valuable weapon for brands, but it is also a revertible weapon that can be very easily returned against you. Where as some statistics are very flattering for brands using Facebook to expand their number of customers, for example 51% of fans say they're more likely to buy a product since becoming a fan; brands are also made to suffer from customer disapproval  as shown by the fact that 88% of Consumers are unlikely to buy from brands that ignore their complaints online. 

This is where social networks can become nightmare for brands. If a consumer went on a company's Facebook page and saw a bunch of unanswered questions or complaints from customers then the consumer will far less likely  buy anything from that company and would think that if ever he needed customer care he would be likely to be ignored. 

Social networks can really affect consumer behavior, it will increase your number of customer at first because of the advertisement but it will most likely ruin your reputation if ever customers complain online because those are accessible to everyone.