Analysis of Buy Buttons in Business Digital Media Strategies

This report examines the impact of integrating "buy buttons" into social media platforms for businesses. The study explores the advantages, such as increased conversion rates, improved sales, and the ability to collect customer data for targeted advertising. However, it also considers the disadvantages, including reduced website traffic, potential data security risks, and difficulties in understanding customer purchase behavior. The report analyzes the balance between these benefits and drawbacks, providing a comprehensive overview of the strategic implications of buy buttons in the context of digital media marketing. The author also provides references for further reading on the topic. This assignment, contributed by a student, is available on Desklib, a platform offering AI-powered study tools.

Running Head: BUSINESS DIGITAL MEDIA 1
BUSINESS DIGITAL MEDIA
Name of Student
Institution Affiliation

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BUSINESS DIGITAL MEDIA
Introduction
Changes in consumer behavior have made it a necessity for modern organizations to
integrate the use of digital media into their operations. This trend has been partly fueled by the
increase in the use of mobile, which has made it easier for people to access digital technologies,
the internet included (Lamberton & Stephen, 2016). One of the mobile commerce strategies used
by organizations to increase sales through digital platforms is the use of buy button on their
social networking sites (Replogle,2018). This research paper explores the pros and cons of
having a buy button social networking sites.
First, buy buttons increase the rate of conversion of visitors into buyers. While many
potential clients are likely to visit the organization’s social media sites, the absence of
instructions on what they can do to get their favorite items makes it difficult to convert them into
buyers. Research shows that although about 60% of social cites users shop via their mobiles,
only about 15% convert. The use of the buy button will ensure that consumers are sent straight to
checkout after viewing the product will minimize the chances of them not buying. Therefore, the
use of a buy button will make it easier for them to shop from the organization’s networking sites
(Charski,2015). Thus, this will help in improving the conversion rates of site visitors into buyers.
Secondly, having a buy button will help the organization to improve its sales. The goal of
any business is to improve its profit margins through the number of sales made. Consumers are
more likely to abandon goods in their carts and withdraw from a complicated purchase process.
Particularly, this arises if a consumer is required to leave the site. The buy button will make it
possible for the organization to convert more consumers into its sales funnel (Charski,2015). The
use of buy buttons makes it possible for consumers to make their purchases on social media

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apps. This is likely to simplify the purchase process for consumers by eliminating the need for
them to visit the company’s site to complete their purchase. This will in return improve the
number of sales made.
Thirdly, it will help the organization to collect crucial data needed to improve service
delivery. As more consumers make purchases online, the organization will be in a better position
to collect purchase data. Consumer data is a requisite for an effective social media campaign
(Whiting & Williams, 2013). By collecting data on purchase therefore, the organization will be
able to serve its current and future customers by creating relevant advertisements.
On the contrary, the use of the buy button is also likely to come with some demerits for
the organization. Reduced site traffic is one of the demerits of the use of buy button on the
organization’s social platforms. By allowing consumers to make their purchase without the need
of visiting the organization’s website, they are likely to disconnect the organization from its
current and potential customers. To improve customer loyalty and improve customer experience,
businesses need to keep alive interactions with customers. This move is therefore likely to reduce
website traffic (Sinclair, 2015).
Secondly, data security threat may be detrimental to the organization. The technology
supporting the buy option will require customers to key in their personal information on these
sites. As a norm, the introduction of new technologies is likely to attract cybercriminals looking
at ways of using these new developments for their gain. As cybersecurity, threat increasingly
becomes a reality for many organizations; the attackers may use the button to gain access into a
sensitive customer or organizational information (Charski, 2015). The law mandates
Organizations to protect sensitive data acquired from its customers. Therefore, access to private
customer information may lead to future litigations.

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Thirdly, the use of the buy button may make it difficult for the organization to
understand the purchase behavior of its customers. One of the main concerns is that the
availability of this option may make consumers to make purchases even when they do not intend
to. Typically, consumer behavior entails awareness, interest, consideration, comparison, and
purchase. On the contrary, the purchase button will take customers straight to purchase (Flirr,
2017). Therefore, although it may come with some advantages for the organization it may be
impossible to accurately analyze the purchase behavior of its customers. Such purchases may
also not automatically translate into conversions. Additionally, the integration of this option into
the organization’s sites will come at an extra cost (Flirr, 2017).
Conclusion
In conclusion, the use of the buy button will come with both advantages and
disadvantages for the organization. Some of the notable advantages likely to be brought about by
the introduction of this option include an increase in conversion rates, increase in overall sales
and helping the organization to collect important information required to better serve its
customers. On the other hand, it will also reduce the traffic on the company's website, lead to a
potential security threat and makes it difficult for the organization to understand its consumer’s
behavior.

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References
Charski, M. (2015). Pros and Cons of Social Media 'Buy' Buttons. Retrieved 12 August 2019,
from https://www.bankrate.com/finance/smart-spending/are-social-media-buy-buttons-
dangerous.aspx
Flirr. (2017). Social buy buttons are invading the internet – but are they working? — Fillr -
Autofill as a Service. Retrieved 12 August 2019, from https://www.fillr.com/blog-
articles/social-buy-buttons-are-invading-the-internet-but-are-they-working
Lamberton, C., & Stephen, A. T. (2016). A thematic exploration of digital, social media, and
mobile marketing: Research evolution from 2000 to 2015 and an agenda for future
inquiry. Journal of Marketing, 80(6), 146-172.
Replogle, E. (2018). Fame, social media use, and ethics. In Sociological Forum (Vol. 29, No. 3,
pp. 736-742).
Sinclair, H. (2015). The Implications of Buy Buttons for Online Retailers. Retrieved 11 August
2019, from https://www.sdcexec.com/warehousing/article/12109938/the-implications-of-
buy-buttons-for-online-retailers
Whiting, A., & Williams, D. (2013). Why people use social media: a uses and gratifications
approach. Qualitative Market Research: An International Journal, 16(4), 362-369.