Social Commerce Benefits Both The Consumer and Marketer

1. Social Commerce
Jameson Mahan

2. E Commerce vs. Social Commerce
• E Commerce is the buying and
selling of products and services
on the Internet
• Social Commerce, while a part of
E Commerce, allows for
consumers to interact with each
other during their online
shopping experience.

3. Social Commerce
benefits businesses by
influencing impressions
in the form of:

4. • Reviews
• Ratings
• Recommendations
• Referrals

5. Social Commerce influences both
online and offline buying.
A consumer may see something online,
evaluate the reviews or comments,
but may actually purchase it offline.

6. Social Commerce Tools
For Purchasing Decisions
• Problem Recognition
• Information Search
• Evaluation of Alternatives
• Purchase
• Post-Purchase

7. Problem Recognition
• Ads on networking sites
• Pinterest images
• Endorsements

8. Information Search
• Wish Lists and Gift Lists
• Consumer comments on sites like Twitter and Facebook
• Ratings on other sites like Yelp

9. Evaluation of Alternatives
• Referrals from others
• Price comparisons
• Video testimonials

10. Purchase
• Purchasing through third party apps like Groupon
• Social shopping malls

11. Post Purchase
• Blogging reviews about a product
• Posting reviews on sites like Yelp or the business’s website
• Sharing comments about a product on a forum

12. Influence Impressions
The pairing of user generated content with social sharing and shopping
• Include share tools, like the “like” or “share” button
• Opportunity to “pin” a picture
• Encourage video testimonials
• Offer wish or gift lists
• Create opportunity to share opinions through a forum

13. Word of Mouth Marketing
According to WOMMA, marketers should encourage a consumer’s
opinion by:
• Educating consumers about the product and/or services
• Understanding the people who will share opinions
• Make it easy for them to share
• Understanding how opinions are shared
• Hearing and responding to both positive and negative comments

14. Social Shopping Tools
• Social Proof
• Authority
• Affinity
• Scarcity
• Reciprocity
• Consistency

15. Social Proof
• Social proof is the confirmation that a consumer’s choice was the
right one. This is where the 4 “R”’s come in. Reviews,
recommendations, referrals and ratings are examples of
reinforcement.

16. Authority
• Authority is where consumers make a purchasing decision based on
an expert’s opinion of a product or service.

17. Affinity
• Affinity is where consumers follow and become like a person who has
made a purchasing decision.

18. Scarcity
• This is an example of supply and demand. Consumers want
something they can’t have, which makes them want it more. So, the
perception that a product is just outside their reach, adds value to it.

19. Reciprocity
• Reciprocity is where businesses want to encourage a consumer to be
loyal to a brand long term and by offering them an incentive for their
loyalty, they will in turn influence others to that brand.

20. Consistency
• Consistency encourages a consumer to stick with a brand. Marketers
may offer things like trial periods as encouragement or memberships
so that helps a consumer stick with a specific product.

21. Benefits of Social Commerce
Social commerce benefits the marketer by:
• Allowing marketers to collect information on their customers
• Give brands the edge over their competition
• Enhance store traffic and increasing average order by converting
browsers to buyers

22. Organic vs. Advertising
• Organic results are the natural
results obtained by consumers
searching for information online
• Advertising results are generated
by a marketer paying to enhance
sales

23. Benefits of Online Advertising
• Attract new customers and engage existing customers
• Change the opinion of your brand
• Obtain new leads
• Get customer feedback
• Drive traffic to your site
The benefits of online advertising is to build brand awareness, drive
sales and increase your audience

24. Social Advertising Laws
• The FTC Act
• The Lanham Act
• The CAN-SPAM Act
• The COPPA Act

25. The FTC Act
The Federal Trade Commission Act prohibits a marketer from using
deceptive advertising practices or unfair tactics to mislead the
consumer or change their perception of a product and/or service
offered on the internet.

26. The Lanham Act
This act protects businesses from their competitors by:
• Preventing a business from trademark infringement
• Preventing a business from trademark dilution
• Preventing a business from false advertising

27. The CAN-SPAM Act
The Controlling the Assault of Non-Solicited Pornography and
Marketing Act makes it illegal for:
A company to use a header in an email that is false or misleading
This applies to business to consumer and business to business

28. The COPPA Act
• The Children’s Online Privacy Protection Act puts restrictions on
sending email to or collecting information on anyone under the age of
13.

29. Summation
Every business can benefit from Social Commerce as long as they
provide a quality product and/or service and abide by the rules that
govern the marketing of those products and/or services.