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Birds of a Feather Shop Together

 
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zvswgogna




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PostPosted: Tue 12:18, 10 Dec 2013    Post subject: Birds of a Feather Shop Together

Birds of a Feather Shop Together
It's not too radical to claim that people are more like their friends than they are like other people that fit their demographic or psychographic makeup. Social psychology has shown that people tend to develop relationships with those that have similar interests to them, transcending demographics and psychographics. And those that have a strong relationship with each other have the capacity to influence each others' behavior.
Marketers traditionally have put consumers into various buckets in order to compartmentalize and therefore easily learn and make assumptions about them. These marketers lack the Holy Grail socialgraphic information: friend connections and relationship information amongst their consumers.
When it comes to targeting people based on their psychographics and interests,[url=http://www.sport.fr/smartphones/moncler.asp]moncler pas cher[/url], politicians, especially, have been highly successful. If John S. subscribes to Guns Ammo magazine, he might be very open to a message from a progun candidate despite living in an area where the vast majority of inhabitants strongly support a ban on guns. This type of psychographic targeting is more successful than targeting purely on demographics psychographic targeting is not as broad and can be more descriptive. Thus, John's interests in one area is a good predictor of what he might buy in another area, independent of the behavior of those within his demographic bucket.
A more powerful predictor of John's purchasing behavior is what his friends are doing and buying. For instance, people interested in wine tend to hang out with people who also are interested in wine. And if a company is pitching a product, its best prospects are the friends of its current consumers: a golden leads list.
A study by Shawndra Hill, now Assistant Professor of Operations and Information Management at the University of Pennsylvania, shows a very strong correlation among friends purchasing the same items. This intuitively makes sense: one cannot pick his demographic makeup, but can and does pick his own friends, often based on similarity in attitudes, values, interests, and personality. This similarity leads to similar behavior and buying patterns amongst those friends.
The problem for marketers and companies is knowing who someone is friends with since few companies have access to the social graph of their consumers. But companies with access can leverage that information for better targeting. By better targeting consumers, companies can cut down on advertisements, spam, and harassment to consumers and create a world with more relevance, consumer happiness, and better use of everyone's time.
Companies with this information include telecom providers, social networks, webmail and IM clients, and search aggregators. As one's social graph becomes a commoditized way to do better targeting, these companies (and others) will become increasingly valuable.
Telecom providers have great social graph data. They know who often calls each other an accurate representation of one's social graph. most people tend to call their mom on Mother's Day).
Similarly, free webmail clients (Gmail, Hotmail) and IM chat clients (AIM, Yahoo) have a gigantic social graph of everyone that communicates with each other. In the future, this social graph data can be used to change the way these webmail and IM clients display ads based on the behavior and activity of one's social graph.
Online social networks have a good idea of who people know and the extent of their relationships. They could partner with retailers to better pitch products based on what peoples' friends are doing. Facebook already does this with Social Ads (and is what they attempted to do with Beacon).
Search aggregators, such as Google and Rapleaf [disclosure: I am an employee of Rapleaf], aggregate public connections data from thousands of blogs, forums, social networks, discussion boards, and more. These aggregators can enable marketers to better understand their consumers and provide a more customized experience and product recommendations based on the consumers' friends' interests and buying behavior. Companies that really want to better serve their consumers with a more customized experience can leverage these friend maps effectively.
It turns out that the obvious is true: birds of a feather really do shop together.
All the points made are valid; I agree with Daniel that there are some commonalities of product usage within a social network, but it does not apply completely. It probably works better for some products than others where referrals are more impactful or where there is benefit to having shared product usage think MCI's "friends and family;" fashion and home or personal services too.
There remains an issue with this as with other psychographic and custom models the challenge of targeting beyond your known population. Demographics continue to be used pervasively because they are tied to geography and readily available at that level and the household level. Psychographics and socialgraphics can work well for the people you have the information on, but they are difficult to model to the broader population and to the ground. Psychographic history shows the changes made to leverage demographics to target those broader populations; Yankelovich MindBase for example.
Perhaps socialgraphics can solve that problem as more of us connect online and data about us is in a usable format for analysis. With over 200M people on Facebook, we are on our way. The questions will be can we do it cost effectively and are there enough end user marketers who get it and have the ability to leverage it. I suspect the question is definitely yes for the larger, more sophisticated brands, but will this ever make it into the mainstream?
I agree with Daniel about there being overlap between psychographic and socialgraphic targeting. It's probably also safe to say that while you and your friends may have notable differences in likes and dislikes of certain things (music, style, food), there are likely more similarities than differences which is why this overlap exists psychographics can inform, to some extent, who one may be inclined to befriend (think eHarmony). And it's a wellknown fact that people are more likely to purchase items that are recommended by others, most especially their friends.
I completely agree, also, that, in theory, there's a huge business opportunity for companies with the socialgraphic data. BUT, what will be interesting is the consumer reaction to leveraging this data. To date, it's been outrage over a violation of privacy. However, the same people who are outraged about their privacy being violated are often the ones complaining about being bombarded with advertising (which might indicate it's not RELEVANT advertising). It seems to me these two perspectives are in conflict. Sharing a little data about yourself would bring you more relevant information. Guidelines can be put in place (those that don't already exist that is) to further protect people from anything terrible happening as a result of sharing information. Furthermore, in my opinion, if someone's that worried about privacy, they better start making plans to get off the grid because whatever illusion of privacy they have is probably much further from reality than they realize.
It makes perfect sense that study by Shawndra Hill shows a very strong correlation among friends purchasing the same items because not only is there communication and awareness of certain products and services among friends but, importantly in many cases there is similar ability to purchase items of the same price range. For example, if you ask a friend to recommend a great handbag for this season you would probably buy the handbag if you could afford it because they recommended it for you and they know you better than the Amazon recommendation engine. The importance of human interaction is still critical even in today's digital marketplace.
This is a very interesting posting on a highly relevant topic, but there does appear to be some confusion here between what is psychographic targeting and what is sociographic. If you and your friends have similar interests, then that is basically a kind of psychographic targeting. If your friends have a very different psychological makeup than you, then, yes, using your relationship to them to target would be truly sociographic rather than psychographic, but would it be very successful? We all have many friends who are quite different from us (one of my best friends growing up was a huge Duran Duran fan while I was into Iron Maiden) which is great for having an interesting dinner party but I do wonder if it helps that much with marketing? I would love to see some figures on this.


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PostPosted: Wed 0:35, 15 Jan 2014    Post subject:

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PostPosted: Sat 0:59, 25 Jan 2014    Post subject:

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PostPosted: Mon 19:48, 03 Feb 2014    Post subject:

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The film adaptation of the Broadway hit Sweeney Todd was named best musical or comedy and star Johnny Depp was named best actor in that genre for his role as a vengeful barber who kills his customers.


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