Pinterest: Impact Of Social Media On Consumer Behavior And Marketing

1) What is the impact of social media on consumer behavior and marketing? How are companies monetizing this technology?
The impact on consumer behavior and marketing is huge. With the huge growth in ecommerce, the use of social media has become a great tool for companies to understand their customers like never before. Companies are monetizing this technology in many ways; whether it’s from crowd sourcing, receiving immediate feedback from customers, or simply using social media as an additional source for advertising. Companies are now use social media as a link to their customers and also a way to interact with them.
2) Discuss the business model being used by Pinterest. How can the business model evolve to keep customers engaged and excited to participate?
Pinterest is run through a website and also has a mobile app component. Pinterest offers their customers an opportunity to pin the things that interest them and share their pinboards with people who have a common interest. Pinterest helps their users shop easily online and allows companies to interact creatively with their customers. Co-founder of Pinterest says “the big-picture assumption of the company is that there is a direct link between the things you pin and the things that you eventually spend money on.” Currently, Pinterest uses Amazon Web Services for many of their activities. Although Pinterest does not draw major revenue they have eliminated third part marketing networks and have created a buy button so that customers won’t have to leave the Pinterest site to make a purchase. This allows Pinterest to charge a fee.
3) What challenges will Pinterest face as social media evolves? Will it be able to gain permanent relevancy, or fade out like some other short-lived social media