Brands spend billions of dollars a year on lavish efforts to establish and maintain a social media presence. But do those campaigns actually increase revenue? New research provides an answer to this question, which has vexed marketers ever since social media burst upon the scene. In a series of experiments, the researchers tested four increasingly interactive ways in which Facebook might affect customers' behavior. First, they explored whether liking a brand--passively following it--makes people more likely to purchase it. Second, they examined whether people's likes affect their friends' purchasing. Third, they looked at whether liking affects things other than purchasing (for example, whether it can persuade people to engage in healthful behaviors). And fourth, they tested whether boosting likes by paying to have branded content displayed in followers' news feeds increases the chances of meaningful behavior change. The results were clear: Merely liking a brand neither increases purchasing nor spurs friends to purchase more. Supporting likes with branded content, however, can prompt meaningful behavior change.

On issues big and small, people often don't make the best possible decisions for the long term. The authors argue that the root cause of this sub-optimal decision-making is that our behaviour is guided by two types of processes: System 1 thinking and System 2 thinking. Whereas System 1 tends to operate effortlessly and automatically, the operations of System 2 are slower, more effortful and deliberate. System 1 judgments are based on perceptions, intuitions and emotions, while System 2 judgments in-depth logical analysis and reasoning. Not surprisingly, on a day-to-day basis, System 1 guides much of our behaviour. They introduce The Hot-Cold Decision Triangle, a framework that can enable better choices by enabling us to avoid the power of visceral urges.