Page 39 - Introduction to Electronic Commerce and Social Commerce

16 1 Overview of Electronic Commerce

• Mountain Dew attracts video game lovers and sport
E-Commerce Web 2.0/ enthusiasts via Dewmocracy contests. The company
E-Marketing Social Media also uses the most dedicated community members
to contribute ideas. The company used Facebook,
Twitter, and YouTube to interact with consumers
Social and engage them.
Commerce • In 2010, Target used Twitter to promote their fall
fashion show in New York with videos and ads. The
show was streamed live on Facebook.
• Levi’s advertises on Facebook based on “what peo-
Support ple think their friends would like.”
Theories • Wendy’s uses Facebook and Twitter to award $50 gift
cards to people who have the funniest and quirkiest
responses to Wendy’s published challenges online.

Figure 1.5 The foundation of social commerce
Overall, the vast majority of U.S. companies have a pres-
ence on Facebook (see emarketer.com for periodic reports).
keting, the supporting technologies, and social media content. For more applications, see Chapter 7 and Turban et al. (2016).
This definition is illustrated in Figure 1.5. The figure shows For a free guide, go to pixtree.com/shoppable-galleries.
that social commerce is created from the integration of
e-commerce and e-marketing using Web 2.0/social media
applications. The integration is supported by theories such as The Major Tools of Web 2.0
social capital, social psychology, consumer behavior, and
online collaboration, resulting in a set of useful applications Web 2.0 uses dozens of tools such as wikis, RSS feeds,
that drive social commerce. blogs, and microblogs (e.g., Twitter). With microblogging,
We will return to social commerce in Chapter 7. you can transmit short messages (up to 140 characters) to a
The following are some examples of social commerce. list of recipients via the Internet and wireless or wireline
devices. As of 2009, Twitter became a major Web 2.0 tool
with diversified business applications. Web 2.0 tools are
described in Edwards (2013).
• Hilton Garden Inn introduced in 2016 Instagram-
based photo map (GFI Travel Guide) to assist in
advertising their hotels. SECTION 1.4 REVIEW QUESTIONS
• Dell Computer claims to have made $6.5 million in
2 years by selling computers on Twitter. Also, Dell 1. Define social computing and list its characteristics.
generates ideas from community members at its 2. Define Web 2.0 and list its attributes.
Idea Storm site. 3. Define social networks.
• Procter & Gamble sells its Max Factor brand cos- 4. Describe the capabilities of social network services (SNSs).
metics on Facebook. 5. Describe Facebook. Why is it so popular?
• Disney allows people to book certain tickets on 6. What is an enterprise social network?
Facebook without leaving the social network. 7. Define social commerce.
• PepsiCo gives live notifications when its customers
are close to physical stores (grocery, restaurants,
gas stations) that sell Pepsi products. Then, PepsiCo 1.5 THE DIGITAL AND SOCIAL WORLDS:
sends coupons and discount information to the ECONOMY, ENTERPRISES,
customers. AND SOCIETY
• Starbucks is using extensive promotions on Facebook
including generating ideas from the members via its E-commerce, including E-Commerce 2.0 is facilitated by
My Starbucks Idea website (see the opening case for developments in the digital and social economy. For an over-
details). view, see videos titled “Did You Know” of the latest updated
information.