Social Networks Influence Purchase Decisions

TechWeb has a story today on the influence social networks like blogs, wikis and forums have on purchase decisions.

From the story:

"The growing phenomenon of consumer-generated content has become disruptive to online businesses, but many are studying the reviews, finding ways to use the content to their advantage, the report says.

The research found 77 percent of online shoppers read consumer product reviews and ratings. Viewers were found to be increasingly loyal to the stores that featured product feedback. Another survey determined that 22 percent of online consumers who posted feedback on forums tend to purchase more online.

Content created through the voice of the consumer is reinventing advertising. "It's shifting the power away from Madison Avenue and into consumers' hands," said Neil Sequeira, principal at General Catalysts Partners, a one billion dollar early stage venture capital firm. "Users create content they are passionate about. If there's a surfboard you love, why not create some content around it."