CHAPTER 8:SOCIAL COMMERCE

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?

The Social Commerce Zone

Social Commerce

Subset of e-commerce Uses social media applications to

enable online shoppers to interact and collaborate during the shopping experience

Consumer Decision Stages

Problem recognition Information search Evaluation of alternatives Decision Post-decision evaluation

The Social Shopping Experience

Dimensions of Social Commerce

Ratings and reviews Social shopping applications and

tools

Ratings and Reviews

Components of Word of Mouth 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 neutrals

Social WOM 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 Sustainable – remember opinions online live on

Social Commerce Applications

Recommendations and referrals

Pick lists Popularity filters Share your story

tools for testimonials

User forums Deal directories

and feeds

Group buys Geo-location

promotions Social media

storefronts Ask your network

tools Shop together tools User galleries Social bookmarking

for products

Social Commerce & the Buying Process

Video BreakMore on the Social Commerce Playlist Social shopping and Levi’s

http://www.youtube.com/watch?v=Ed5vJeaEuzA&list=PLA1CDE177370087C3&index=4

Groupon Case Study http://

www.youtube.com/watch?v=FGkffRQpIoA&list=PLA1CDE177370087C3&index=6

Facebook Storefronts http://www.youtube.com/watch?v=xThrf

W_4q0c&list=PLA1CDE177370087C3&index=3

Psychology of Social Shopping

Social proof Authority Affinity Scarcity Reciprocity Consistency

Social Shopping and the Sources of Influence

Recap Discussion

Reminder: Visit www.zonesofsmm.com to read daily news and search for examples related to each chapter.