Impact of Social Media and Web 2.0 on Decision-Making

Abstract

Information technology continues to provide opportunities to alter the decisionmaking behavior of individuals, groups and organizations. Two related changes that are emerging are social media and Web 2.0 technologies. These technologies can positively and negatively impact the rationality and effectiveness of decision-making. For example, changes that help marketing managers alter consumer decision behavior may result in poorer decisions by consumers. Also, managers who heavily rely on a social network rather than expert opinion and facts may make biased decisions. A number of theories can help explain how social media may impact decision-making and the consequences.