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 Break
More on the Social Commerce Playlist
Social shopping and Levis
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=xThrfW_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.