chapter 8 (social commerce)
TRANSCRIPT
SOCIAL COMMERCE
8
Learning Objectives
What is the relationship between social commerce and e-commerce?
How do ratings and reviews provide value for consumers and e-retailers?
How do social shopping applications and tools affect consumers as they move through the consumer decision-making process?
What are the psychological factors that influence social shopping?
Social Media Marketing, 2e©© Tracy L. Tuten and Michael R. Solomon 2015
8-2
Figure 8.1 Social Commerce
Social Media Marketing, 2e©© Tracy L. Tuten and Michael R. Solomon 2015
8-3
Social Shopping
Social shopping refers to situations where consumers interact with others during a shopping event online.
Social Media Marketing, 2e©© Tracy L. Tuten and Michael R. Solomon 2015
8-4
Figure 8.2 Social Shopping
Social Media Marketing, 2e©© Tracy L. Tuten and Michael R. Solomon 2015
8-5
The Decision-Making Process
Problem Recogniti
on
Information
Search
Alternative
Evaluation
PurchasePost-
Purchase Evaluatio
n
Social Media Marketing, 2e©© Tracy L. Tuten and Michael R. Solomon 2015
8-6
Table 8.1 Social Commerce and Decision Stages
Social Media Marketing, 2e©© Tracy L. Tuten and Michael R. Solomon 2015
8-7
The Marketing Value of Social Commerce
Ratings and Reviews
Recommendations and ReferralsSocial Media Marketing, 2e©© Tracy L. Tuten and Michael R. Solomon 2015
8-8
Social Commerce Strategies
Share tools: social software plug-ins that enable easy sharing of products sold
on a retailer’s website to social networks Recommendation indicators Reviews and ratings Testimonials User galleries: virtual gallery where users can share their
creations, shopping lists, and wishlists. This approach is sometimes called
user-curated shopping and may occur onsite or offsite Pick lists: lists that help shoppers share what they want
onsite, typically in the form of a wish list Popularity filters User forumsSocial Media Marketing, 2e©© Tracy L. Tuten and Michael R. Solomon 2015
8-9
Best Practices Authenticity – accept organic WOM (including
negative WOM) Transparency – acknowledge opinions that
were invited, incentivized, or facilitated Advocacy – enable consumers to rate the
value of opinions Participatory – encourage consumers to
contribute reviews and ratings Reciprocity – acknowledge the value of
consumer opinions Infectiousness – make it easy to share Sustainability – remember opinions online live
onSocial Media Marketing, 2e©© Tracy L. Tuten and Michael R. Solomon 2015
8-10
WOMMA Guidelines for WOM Marketing
Educate people about products Identify people most likely to share
opinions Provide tools to make it easier to share
opinions Study how, when, and where opinions
are shared Listen and respond to supporters,
detractors, and neutralsSocial Media Marketing, 2e©© Tracy L. Tuten and Michael R. Solomon 2015
8-11
Social Media Marketing, 2e©
The Psychology of Social Shopping
Psychology of influence refers to the factors that make it more or less likely that people will change their attitudes or behavior based on a persuasive message.
A cognitive bias refers to the “shortcuts” our brains take when we process information.
Bounded rationality captures the quandary we face as humans when we have choices to make but are limited by our own cognitive capacity.
Information overload is when there’s simply too much data for us to handle.
Satisfice means we expend just enough effort to make a decision that’s acceptable but not necessarily the one that’s “best.”
This process of using heuristics to simplify the decision-making process is sometimes referred to as thinslicing.
8-12
Social Media Marketing, 2e©
Heuristics
A heuristic technique is any approach to problem solving, learning, or discovery that employs a practical methodology not guaranteed to be optimal or perfect, but sufficient for the immediate goals.
Where finding an optimal solution is impossible or impractical, heuristic methods can be used to speed up the process of finding a satisfactory solution.
Heuristics can be mental shortcuts that ease the cognitive load of making a decision.
Examples of this method include using a rule of thumb, an educated guess, an intuitive judgment, stereotyping, or common sense.
8-13
Influence and Social Shopping
Social proof When a lot of people select one option (e.g., a clothing
style or a restaurant), we interpret this popularity as social proof that the choice is the right one.
As more people jump on the bandwagon a herding effect can occur. Herd behavior occurs when people follow the behavior of others.
Conformity is a change in beliefs or actions as a reaction to real or imagined group pressure.
Norms are informal rules that govern behavior. Principle of least interest is when the person who is
least committed to staying in a relationship has the most power because that party doesn’t care as much if the other person rejects him or her.
Social Media Marketing, 2e©© Tracy L. Tuten and Michael R. Solomon 2015
8-14
Influence and Social Shopping
Social proof Authority: persuades with the opinion or
recommendation of an expert in the field Affinity: sometimes called “liking,” means that people
tend to follow and emulate those people whom they find attractive or otherwise desirable
Scarcity: is when we perceive something as scarce, we increase our efforts to acquire it—even if that means we have to pay a premium for the item and buy it before we would otherwise have wanted
Reciprocity: we have an embedded urge to repay debts and favors, whether or not we requested the help.
ConsistencySocial Media Marketing, 2e©© Tracy L. Tuten and Michael R. Solomon 2015
8-15