Page 217 - Introduction to Electronic Commerce and Social Commerce

Social Commerce: Foundations, Social 7
Marketing, and Advertising

Contents Learning Objectives
Opening Case: How Sony Uses Social Media
for Improving CRM ..................................................................... 201 Upon completion of this chapter, you will be able to:
1. Define social commerce and describe its roots and evolution.
7.1 Social Commerce: Definitions and Evolution ................... 203
2. Describe the scope, drivers, and content of the social com-
7.2 The Content of the Social Commerce Field ...................... 204 merce field.
7.3 The Benefits and Limitations of Social Commerce .......... 206 3. Summarize the benefits and limitations of social commerce.
4. Describe the major models of social shopping.
7.4 Social Shopping: Concepts, Benefits, and Models............ 208
5. Explain how advertising and promotions are conducted in
7.5 Social Advertising: From Viral Advertising
to Microblogging and Other Promotions .......................... 218 social networking environments.
6. Describe how social networking can facilitate customer
7.6 Social Customer Service and CRM ................................... 221
service, customer support, and CRM.
Managerial Issues ......................................................................... 227
Closing Case: Groupon: Will the Company Prosper?.............. 229
OPENING CASE: HOW SONY USES SOCIAL
References ..................................................................................... 232
MEDIA FOR IMPROVING CRM

Sony, the giant consumer electronics producer, has been strug-
gling during the last few years.
Now, by using social media, improvement is being realized.

The Problem

Sony Corporation (sony.com) faces fierce competition from
Samsung (samsung.com/us), Sharp Electronics (sharpusa.
com), LG Electronics (lg.com/us), and other large, global
companies. This competition has intensified during the eco-
nomic slowdown in recent years. As a result, total revenues
for Sony have declined every year from 2008 until 2012. The
company suffered heavy losses in 2009 and 2012, causing its
share price to drop from $35/share in 2010 and 2011 to
$9.57 in late 2012. In 2013, the stock rose mostly due to the
recovery in Tokyo’s stock exchange. Consumer electronic
products are fairly mature, so the differences in quality and prices
Electronic supplementary material: The online version of this chapter
(doi:10.1007/978-3-319-50091-1_7) contains supplementary material, are not substantial. Therefore, the competitors in the field are
which is available to authorized users. promoting their customer service as a strategic differentiator.

© Springer International Publishing AG 2017 201
E. Turban et al., Introduction to Electronic Commerce and Social Commerce,
Springer Texts in Business and Economics, DOI 10.1007/978-3-319-50091-1_7