Social Commerce

Question 1

Social commerce is a subset of e-commerce.

Answer 1

It uses social media applications to enable online shoppers to interact and collaborate during the shopping experience and to assist retailers and customers during the process.

It describes a set of online collaborative shopping tools such as shared pick lists, user ratings and other user-generated content-sharing of online product information and advice.

Question 2

Social commerce requires 5 steps:

Answer 2

:
* problem recognition

• information search
• alternative evaluation of findings
• purchase
• post purchase evaluation (DMP)

Question 3

Best practices for brands to tackle customer dissatisfaction:

Answer 3

• authenticity: accept both positive and negative word of mouth;
• transparency: accept opinions that were invited, incentivised or sponsored by the brand;
• advocacy: let customers rate the value of reviews;
• participation: encourage customers to contribute posts;
• reciprocity: express gratitude for the value of reviews;
• infectiousness: make it easy to for consumers to share reviews on blogs and social media;
• sustainability

Question 4

The Five Steps Brands Can Take to Improve Online Reviews:

Answer 4

• educator customers about product and services;
• identify people most likely to share your opinion;
• make it easy to share information;
• listen and respond to detractors, supporters and neutrals.

Question 5

Psychology of Social Shopping for Customers:

Answer 5

• social proof: number 1 choice or market leader is evidence of social proof and create the so called bearding effect; consumers want to conform to social norms of consumption through cultural pressure, fear of deviance, and commitment;
• authority: emphasising that somebody who has expertise and knowledge thinks that the product or the service is good - 9 out of 10 stomatologisch recommend this toothbrush
• affinity: customers are more persuaded by the celebrities or influencers they like
• scarcity: the more limited a product or service is, the more it is desired - Apple’s Wish List for customers before the launch of a new product, whoever wants it first needs to make an effort;
• reciprocity