The Social Network and Big Data Era, and Trust

The K-Consumer Report, published by the Fair Trade Commission with the goal of becoming the "Korean version of Consumer Reports," has caused a remarkable stir. More than 40 days after the first report came out, consumers are still searching for the recommended hiking shoes, and insurance companies selling variable annuities that were exposed for dismal returns are still suffering the aftermath.

 

America's "Consumer Reports." It is a monthly magazine published by the Consumers Union. Even though it charges an online subscription fee, it has over 7 million members and is a leading "consumer information magazine." The "K-Consumer Report," published by the Korea Fair Trade Commission as a benchmark, has been the talk of the town lately. The content on hiking shoes and the returns of variable annuities at insurance companies left an especially strong impression.
At hiking shoe stores, even some 40 days after the report was released, customers are still reportedly asking, "Show me the product recommended by the Consumer Report." Sales, of course, have also surged.

 

As the internet became universal and the Web 2.0 era arrived, the "power" of consumers in the marketplace grew stronger. The influence of one-way advertising by companies plummeted, and "word of mouth" rushed in to fill that space. Consumers with expert-level knowledge — prosumers — began reviewing products, and ordinary people joined in with purchase reviews and comments. When buying something, it has become only natural to carefully read the "purchase reviews" rather than the company's own ads.

 

As this trend continued, information flooded the internet, and the so-called "big data" era arrived. The volume of accumulated data has grown so massive that it has become confusing instead. But on the other hand, the "problem of trust" has surfaced. When it was revealed that some power bloggers had been paid by companies to post promotional content, distrust in online information grew. This "thirst for trustworthy information" is what produced the explosive response to the K-Consumer Report, a kind of government-issued source of information.

 

"Trust." In the end, I think trust is the most important thing in the age of social networks. Whether it is a company, a politician, or an organization that provides consumer information — whoever secures the "trust" of citizens will be the winner in the Web 2.0 era, the big data era.