More Related Content Similar to Chapter 8 (social commerce) (20) More from Jawad Chaudhry (20) Chapter 8 (social commerce)2. 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?
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3. Figure 8.1 Social Commerce
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4. Social Shopping
Social shopping refers to situations where
consumers interact with others during a shopping
event online.
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5. Figure 8.2 Social Shopping
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7. Table 8.1 Social Commerce and
Decision Stages
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8. The Marketing Value of
Social Commerce
Ratings and Reviews
Recommendations and
Referrals
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9. 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 forums
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10. Best Practices
Authenticity – accept organicWOM (including
negativeWOM)
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 on
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11. 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
neutrals
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12. 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.
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13. 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.
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14. 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.
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15. 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.
Consistency
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