Social Networks Impact on Potential Customers' Buying Decisions and Current Customer Loyalty

Abstract

Social networks are fundamentally changing the way we communicate, collaborate, consume, and create. They represent one of the most transformative impacts of information technology on business and daily life. This chapter will explain set of social network concepts and its influences in social interaction and decision making, and to determine whether individual's decision to consume a product, service, or attend an event are influenced by their interaction on social network, by studying three characteristics: Contagion, Connection, and Virtual Word of mouth. The results of this research can be used by business to enhance their relation and opportunities with their current and potential customers.