2. ONLINE SHOPPING
•E-commerce- The practice of buying and
selling products and services b using the
internet
•Social shopping- Situations where consumers
interact with others during a shopping event
•Purchase pals- Our shopping companions who
help us to think through our alternatives and
make a decision
4. INFLUENCES ON PURCHASING
• Review- Assessments with detailed comments about
the object in question
• Ratings- Scores generated by users that are based
on quality, satisfaction, or popularity on a scale
• Verification- Consumers use ratings and reviews
when seeking out information online about the
object I question and use these to make their
decision
5. BENEFITS OF REVIEWS AND
RATINGS TO SELLERS
•Online reviews= increased sales and new
customers
•Consumers pay more for products with
higher ratings
•Ratings and reviews increase search
traffic
6. SOCIAL COMMERCE STRATEGIES
• User galleries- Virtual
galleries where users can
share creations, shopping,
and wish lists. Also called
user-curated shopping
• User forums- Groups of
people who meet online
to communicate about
products
• Share tools
• Testimonials
7. WORD-OF-MOUTH MARKETING
COMPONENTS
• Educating people about your products and services
• Identifying people most likely to share their opinions
• Providing tools that make it easier to share
information
• Studying how, where, ad when opinions are being
shared
• Listening and responding to supporters, detractors,
and neutrals
8. OTHER PROMOTIONS
• Provide shopping from within a
user’s feed on their social
community of choice (i.e.
Facebook)
• Sales promotions- Short-term
deals designed to generate
demand in a specific time-
period
• Social shopping portals- Enables
conversion from browsing to
buying (i.e. Wanelo)
9. PSYCHOLOGY OF INFLUENCE
•The factors that make it more or less likely that
people will change their attitudes or behavior
based on a persuasive message
10. CONFORMITY
• A change in beliefs or actions due to group pressure
• Common culprits of conformity:
• Cultural pressures
• Fear of deviance
• Commitment issues
• Group unanimity, size, and expertise
• Susceptibility to interpersonal influence
11. SCARCITY
• We tend to want things more if we think we can’t
have then
• Marketing tools that use the technique of scarcity
include:
• Time-sensitive deals
• Limited edition products
12. RECIPROCITY
•We have an urge to repay debts and favors
•Businesses/sellers use this through sampling (i.e.
free trials)
13. BENEFITS OF SOCIAL COMMERCE
• Enables to marketer to monetize the social media
investment
• Solves the dilemma of social media return on Investment
• Social commerce applications result in more data about
customer behavior as it relates to the brand
• Social shopping enhances customer experience
• Social shopping makes sharing brand impressions easy
• Brands can keep up with the competition and possible
differentiate themselves
14. THE LAW OF SOCIAL
ADVERTISING
MKT 495
By: Toni Gabelsberger
15. SOCIAL ADVERTISING
• Social advertising is comprised of any online advertising conducted
on social networks such as:
• Facebook
• YouTube
• LinkedIn
• Twitter
• Social network advertising focuses on primary objectives:
• Building awareness
• Driving sales
• Increasing the number of followers and fans
16. BEST PRACTICES
• Be truthful in your social media advertising- A false ad is one
which is “misleading in a material respect” which goes
against the FTC Act
• Make sure your social media advertising claims aren’t unfair
or deceptive- The practice should not injure consumers,
violate established public policy, or be unethical
• Substantiate your social media advertising claims (and
those made on your behalf)- Advertisers must have a
reasonable basis for advertising claims before they are
distributed
17. LANHAM ACT
A piece of federal legislation that governs
trademark law in the U.S. and which prohibits
trademark infringement, trademark dilution,
and false advertising
18. CAN-SPAM ACT
• Controlling the Assault of Non-Solicited Pornography
and Marketing Act of 2003 (CAN- SPAM Act)
• This makes it “unlawful for any person to initiate the
transmission, to a protected computer, of a
commercial electronic mail message, that contains,
or is accompanied by, header information that is
materially false or materially misleading.”
19. COPPA
• The Children’s Online Privacy Protection Act
(COPPA)
• Imposes certain requirements on operators of
websites or online services directed to children
under 13 years of age, and on operators of other
websites or online services that have actual
knowledge that they are collecting personal
information online from a child under 13
• Parental notice and parental consent must be given
20. WORKS CITED
• McHale, R., & Garulay, E. (2012). Navigating social media legal risks:
Safeguarding your business. Indianapolis, Ind.: Que.
• Tuten, T., & Solomon, M. (2013). Social media marketing. Boston: Pearson.
