June 3, 2013

Facebook recommendations could be worth millions of euros



Study confirms online sales are enhanced by social recommendations and determines the actual value of "Likes"

When online retailers display customer recommendations next to their product descriptions, it can significantly increase the sales of these. This is the conclusion reached following a study undertaken by academics at Johannes Gutenberg University Mainz (JGU) and the Technische Universität (TU) Darmstadt. They conducted an experiment in cooperation with an online mail order company to determine whether product recommendations by customers have an impact on other customers' buying behavior. For this purpose, first-time visitors to the online shop www.spiele-offensive.de in early 2013 were randomly assigned to one of two possible groups.