Consumers' use of social media is altering the way they make purchase decisions. To stay relevant, retailers must determine how to incorporate social media, such as social networks and blogs, into their marketing strategies.
Generation Y (those born after 1979) online buyers are more immersed in online and mobile activities than any other generation, according to 2008 research from shopping comparison site PriceGrabber. Some 85% of Gen Y respondents said they participated in social networking, and 57% reported involvement with blogs.
To reach this demographic segment, Web retailers are marketing to them on their own turf. Data from an August 2008 survey of Web merchants sponsored by Internet Retailer found that, of the 39.3% of retail respondents that use social networks, 32% have a page on Facebook, 27% on MySpace and 26% on YouTube.