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(Hosting-NewsWire.com, June 09, 2013 ) San Francisco, CA -- According to the latest research from the Johannes Gutenberg University Mainz and the Technische Universitat Darmstadt, online retailers who provide customer recommendations next to a product have a significant increase regarding sales for the good.
Business information specialist from Darmstadt and Gutenberg Universities conducted the experiment to gather the information with online mail order companies. The research was to determine the product recommendations' effect on customers, whether good or bad. First-time visitors were targeted for the study and were randomly assigned to one of two groups.
The treatment group was herded toward product pages that displayed social recommendations such as thumbs-up “like” buttons on Facebook. The customers in the second group were given no such option, and were the control group. Following the four-week test phase, the shop registered a 13% rate of sales for the former group than the control group.
Dr. Jorn Grahl, who is an Assistant Professor at Johannes Gutenberg University Mainz "We were actually able to identify significant differences in buying patterns," Together with Professor Franz Rothlauf, and Professor Oliver Hinz of the TU Darmstadt, Grahl, Mainz discovered that the better sales figures were primarily attributable to the fact that visitors tended to spend more time searching on the sites with recommendations. A 22% chance increase for visitors who stop at an online shop will buy something if web pages display recommendations than if they do not. "This means that by displaying social recommendations such as 'Likes' companies acquire more new customers," concluded Grahl. "It appears that recommendations actually counteract some of the uncertainty that new customers initially experience when visiting a site."
There have been a plethora of rumors regarding the internet and how the use of 'like' buttons or +1s can affect the outcome of sales. Recently, a study titled "How do social recommendations influence shopping behavior? A field experiment," looked at the specific aspect. It concludes that a “like” can work in two ways for online commerce. A “Like” not only becomes an indicator for the quality of the respective product, but also gives people a quick-response idea of how it fares versus other products.
According to experts, it is difficult to separate the two effects possible. "Despite the fact that 'big data' is currently seen as the solution to all problems, it doesn't really help us in this case," claimed Professor Oliver Hinz of the TU Darmstadt. "What we required here was an experimental methodology and not just vast amounts of data. Our approach has actually allowed us to determine the value of a 'Like'. And it has also become apparent that social recommendations and the 'Likes' represent valuable intangible assets for businesses and companies."
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Source: EmailWire.Com
Source: EmailWire.com
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