Does Social Networking Impact Spending for the Affluent?
All you have to do is watch commuters ride the subway, glace at customers in a coffee shop or simply observe pedestrians walking down the street to realize how significantly “smart” technology has become an integral part of the typical daily routine. From checking email to catching up on the latest news to even video chatting — you can do it all on a variety of portable handheld devices.
Because of this glaring reality, it should come as no surprise to hear that the American Affluence Research Center reported that 65% of the affluent own a smart phone or tablet, and that the remaining 35% have regular access to a computer. What should come as a shock, however, is the fact that only half of the affluent claim to be involved in social media sites and of those who do participate in sites like Facebook and Twitter, only a quarter say they receive regular product information via such sites.
Despite the steady growth of e-commerce, it seems interesting that only 12.5% of the affluent are receiving information from manufacturers and retailers. The AARC conducted a survey that polled 546 people on their spending habits and how such behavior relates to social media usage. More on their findings can be found at affluenceresearch.org.
—Alexandra Gehringer
Social networking has rapidly replaced traditional marketing methods and is seen as the only way forward to inform customers about products.