Entries with tag consumer habits.

US-Based eTailers Increasingly Accept Bitcoin

More US-based online retailers—including Dish Network, Expedia, and Overstock.com—are allowing payments via bitcoin. Market analysts say the virtual currency is moving toward mainstream acceptance for online purchases, with full adoption occurring in about five years. Currently, market analysts note, consumers still prefer to use credit cards. Continuing volatility in the bitcoin exchange rate, which is unregulated, is also deterring consumer acceptance. However, merchants like using bitcoin to avoid credit-card fraud and transaction fees paid to credit-card companies. (Reuters)(Mashable)

Study: Social Media Users Shy Away from Endorsements

Although social media sites aim to effectively sell ads targeted to their users, new research shows that people are unlikely to use these services to endorse products they like. The study—from researchers with the Imperial College Business School, Cornell University, the Leeds University Business School, the University of Southern California’s Marshall School of Business, and the University of Melbourne’s Department of Management and Marketing—finds that social media users prefer to share such opinions with family and friends in person rather than with their online followers. “[O]ur report shows that when it comes to sharing recommendations on products and services on these sites, users tend to stay quiet,” stated report co-author and Imperial College Business School associate professor Andreas Eisingerich, “They would rather communicate via word of mouth because many users don't want to embarrass themselves online as work colleagues or acquaintances may not endorse or appreciate the same products that they do.” He added, “Our report could influence how businesses spend advertising budgets on social media websites.” The researchers published their work in the Journal of Consumer Psychology. (EurekAlert)(Imperial College)

Researchers Determine Connection Between Social Media Use, Revenue

An international team of researchers from Aalto University, the University at Buffalo, and Texas A&M University say they have proven there is a definitive relationship between customers’ use of social media and higher sales revenue. The researchers showed those customers “engaging” with a firm using social media contribute roughly 5.6 percent more revenue and visit the business about 5 percent more than non-participating customers. They say the work will provide business managers with “a better understanding of the return on their investment in social media.” It also demonstrates the relationship between customer social media use and their purchases. This should enable companies’ social media-based marketing initiatives to be more effective and profitable. Because not all customers use social media, the researchers said segmentation of marketing efforts is important. The work was published in Information Systems Research. (EurekAlert)(Aalto University)(Information Systems Research)

Mobile Shopping Hits $20 Billion

A newly-released study shows that the value of purchases made via mobile devices has reached $20 billion. The report by consultancy Javelin Strategy & Research found that consumers spent about $20.7 billion in the past year using smartphones and other wireless devices. Javelin found that $5 billion of that total was spent via tablets, an amount the firm expects to double within the next three years. The company also said consumer spending per purchase averaged $10 more via tablets than via smaller machines. Javelin based its report on various surveys of mobile-phone and -device owners. (CNET)(Javelin Strategy) 

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