In a recent marketing class we looked at the effects of Facebook on a local restaurant in Houston. The study found that although customer behavior changed for the better including an in increase store visits, generated word of mouth, and higher emotional attachment, yet bottom line sales were not increased. Clearly even though the restaurant is not generating move revenue it seems that because they have created a better customer relationship that something good will come of their Facebook presence and hopefully overtime with draw more revenue to their business.
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Even though these results seem positive, the ultimate goal for the product being sold is to sell more in order to make more money. And these needs are just not met. Personally I think being able to create a page on Facebook for a company is beneficial, but advertisers need to remember that they are just one among many who are cluttering and already overpowering social network. Many- such as myself still use this popular site to connect with friends and not to be drown smothered by advertisements from products that I probably do not need at all.
NY Times article of Facebook Advertising
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