According to a consumer survey by Mintel, most people who purchased something based on a recommendation did so based on the referral from a friend or relative (34%) or spouse/partner (25%). Only a scant 5% bought something based on the recommendation of a blogger or a chat room.
"People aren't going online to get a recommendation from a blogger or a social network," Chris Haack, senior analyst at Mintel, tells Marketing Daily. "It's probably a bit of a trust issue. You can't have the same level of intimacy online as you can in person."
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While the desire for personal recommendations holds true across age demographics, young adults who tend to be in more social networks are more likely to use the Internet for advice and referrals, although their peer networks still hold more influence, Haack says.
Similarly, Asian and Hispanic consumers -- who also are more active in social networks -- were more likely to admit to being influenced by bloggers to purchase a product or service, at 14% and 10%, respectively.
The recession is also having an effect on people's motivations for recommending a product or service. According the Mintel survey, nearly two-thirds of respondents who recommended something did so because of its price. Quality and convenience were the two other factors, at 55% and 33%, respectively.
Despite the continued reliance on person-to-person recommendations, marketers who ignore the Internet's social tools do so at their own peril, Haack says. The most active people in the social networks tend to also be the "influentials," who are more likely to recommend products and services, Haack says.
"It's definitely worth reaching out to them," he says. "For the first time in history, marketers can have a real-time tracking of their dialogue with consumers. It would be [foolish] not to take advantage of it.
As we read the marketing literature it’s sometimes difficult to remember that all word of mouth does not take place online. My experience remains similar to what we revealed in this study. Certainly comments expressed online can reach a lot more people. Perhaps those who write on the blogs and in social media are in fact the thought leaders and the influentials. But we also still find that a majority of buying decisions are made based upon what people hear face-to-face and over the phone, or what they receive as emails and texts from their friends, relatives, neighbors, and co-workers.
Thanks for the confirmation.