Friday, January 26, 2007

Influence of Consumer Generated Media

According to research from Compete, Inc., more than one half of consumers are influenced by consumer generated media (CGM). Embracing Consumer Buzz Creates Measurement Challenges for Marketers, part of the Spark! research series, found that more than 50 percent of respondents indicated the use of CGM to decide or winnow their choices, 23 percent used CGM to confirm their buying decisions, and15 percent relied totally on CGM to determine choice.

Other findings:
  • 71 percent of auto and travel buyers influenced by CGM say that CGM is credible. Only 35 percent of these consumers find brands credible.
  • About one third of automobile buyers say that consumer reviews and ratings sites influence their decision. One in five says that advice from other consumers online is an influence.
  • Two thirds of travelers say CGM impacted their purchase decision. Compete estimates there is more than $2 billion in travel impacted by CGM each year.
Read the Compete, Inc. press release here or download this part of the Spark! research series here. and are just two of the larger websites that use CGM to great advantage. While you may want to implement CGM on your site, be sure to think this through. Be ready to open up your product or service to criticism as well as praise when entering the arena of CGM.

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