facebook is no different from word of mouth from say this forum, say you got a good deal on your pinball and you post here saying this guy was good to me, and then other people use your feedback, difference is there are allot more people using facebook. at the end of the day when you pay to put your business on tv you are using that media to reach people, facebook is just using a different media to do the same thing. also i need to remember being a cafe in a tourist area, if i just target just local audience then im falling behind, i could reach some one in sydney who is coming up my way, thats how this works. i do everything to target a wide range of people i use free food rating places like "menu mate" which also use facebook. you need to be ontop of the internet thing.
as for people not being able to explain why its effective, thats strange, because its not hard to explain why advertising works and this is just advertising using a different medium that millions of people use daily, at the end of the day you have no problem saying you enjoyed a meal at a certain shop to a friend, you are virtually advertising by word of mouth, now seeing facebook is how people communicate these days they still have no problem telling their mates they enjoyed that meal, they dont have to tell it 100 times to tell 100 people now. lol
if you want to learn how to create a business page just feel free to ask.
popbumper you have a pie shop was itnt it? whats the name of it? i might search facebook and see if any one has liked your shop, you might actually have people checking in without knowing you are even on facebook lol, especially if you had a customer eating sitting there saying they are at your place, lol if so your buisness is already there, might also be worth your while searching for your business on websites like "menu mate" and see if your shop is there.
you also need to think, if you want to contact a shop these days, do you go through a big old heavy phone book, or do you jump on your phone or pc and search??? one takes 30 seconds max the other takes allot longer. you can search from your phone from your pocket most people dont Carry a phone book in their pocket.