Transcript Chapter 3 - Springer Static Content Server

Chapter 3
Supporting Theories and Concepts
for Social Commerce
Learning Objectives
1. Describe the factors that influence online consumer
behavior.
2. Understand the decision-making process of consumer
online shopping.
3. Explain how consumer behavior can be analyzed for
creating personalized services.
4. Describe online word of mouth and its benefits.
5. Define online engagement and describe its influence on
social trust, loyalty, and satisfaction.
6. Describe social psychology theories relevant to social
commerce, social network analysis, and the social graph.
7. Describe social influence, social capital, and social
support.
Opening Case: Netflix Increases Sales Using
Movie Recommendations by Customers
• The Problem
– Customers often have difficulty deciding what
they want to watch so they choose the most
recent and popular titles
– The second major problem facing Netflix is the
competitive nature of the movie rental business
– Netflix wants to rid itself of the DVD business
since online streaming has no shipping costs
Opening Case: Netflix Increases Sales Using
Movie Recommendations by Customers
• The Solution
– Using the “recommendation algorithm” compares
an individual’s preferences with people that have
similar tastes by using the collaborative filtering
software
– “Netflix Social” connects your Netflix account with
Facebook
– Social features include sending recommendations
to Facebook friends, and sharing what you watch
with them automatically
Opening Case: Netflix Increases Sales Using
Movie Recommendations by Customers
• The Result
– Effective recommendations
– Customer satisfaction
– Finance
– Ratings
– Rental habits
Lessons Learned from the Case
• This case illustrates the use of the social Web
to influence customers
• Netflix uses software intelligent agents in its
recommendation system to gain a substantial
advantage over its competitors
• Netflix’s recommendation algorithms are
designed to increase customer satisfaction
and loyalty
Learning about
Online Consumer Behavior
• A Model of Consumer Behavior
– Consumers can be divided into two groups:
• Individual consumers
• Organizational buyers
– An individual consumer behavior model
• Influential factors
• The attitude-behavior decision process
Learning about
Online Consumer Behavior
• The Major Influential Factors
–
–
–
–
Consumer Characteristics
Merchant and Intermediary-Related Factors
Product/Services Factors
EC and/or Social Commerce Trading Systems
• Motivational Factors
• Hygiene Factors
– Environmental Factors
• Social Variables
• Cultural/Community Variables
• Other Environment Variables
Figure 3.1 EC Consumer Behavior Model
The Consumer
Purchasing-Decision Process
• A Generic Purchasing Decision-Making
Phases—a Managerial Decision-Making
Approach
1.
2.
3.
4.
5.
Need identification
Information search
Evaluation of alternatives
Purchase and delivery
Post-purchase activities
The Consumer
Purchasing-Decision Process
• The Consumer Brand Decision-Making Process
Models
– A Three-Phase Process
1. Awareness
2. Attitude
3. Behavior
Figure 3.2 Social Commerce Brand Decision Process
The Consumer
Purchasing-Decision Process
• The AIDA Model
1.
2.
3.
4.
A—Attention (awareness)
I—Interest
D—Desire
A—Action
The Consumer
Purchasing-Decision Process
– Social Commerce Brand Decision Process
– Players in the Consumer Decision-Making Process
1.
2.
3.
4.
5.
Initiator
Influencer
Decider
Buyer
User
– Corporate Buyers’ Behavior and the Players in the
Buyer Decision Process
The Consumer
Purchasing-Decision Process
• Consumer Behavior in Social Media and
Commerce
– The Shop.org Study
• What Prompts Users to Share on Social Media
Personalization and
Behavioral Marketing
• Personalization in Social Commerce
– Personalization*
– User profile*
– Web Cookies in Social Commerce
• Cookies*
– Using Personalized Techniques to Increase Social
Commerce Activities
Personalization and
Behavioral Marketing
• Behavioral Targeting and Collaborative
Filtering
– Behavioral targeting*
– Collaborative filtering*
– Legal and Ethical Issues in Collaborative Filtering
Word of Mouth in Social Commerce
• Word of Mouth (WOM)*
– What Makes Content Go Viral?
• Using Word of Mouth in Social Commerce
– The Process of Digital WOM
– Video: “How Do You Define Engagement? – Social
Media Camp 2011 Ep#36” at
youtube.com/watch?v=sF0U-OYuKFU
• The Power of WOM
Figure 3.3 The Process of Digital WOM
Word of Mouth in Social Commerce
• The Major Types of WOM
– Analog: This is person-to-person, face-to-face
communication
– Digital: Information is digitized and possibly stored
in a format that can be sent and re-sent
electronically
Word of Mouth in Social Commerce
• Viral Marketing and Social Networking
– Viral Blogging*
• Video: “Inside The Viral Blogging System” at
youtube.com/watch?v=Oj28cieWlJs
– Viral Videos*
– Consumer-Generated Videos
– Other Viral Marketing Methods
Consumer Engagement
in Social Commerce
• Engagement in Social Commerce
– Online customer engagement*
– The Benefits of Engagement
– Mobile Engagement
– The Measure of Engagement
Figure 3.4 Customer Engagement
Social Psychology Theories, Social Network
Analysis, and the Social Graph
• Social Psychology and Social Commerce
– Social psychology*
– Social Commerce Psychology
• Video: “Social Psychology: Taking Shopping Carts” at
youtube.com/watch?v=YWaEGkbQ2XQ
– Cognitive Styles and Morphing in Behavioral
Marketing
– The Universal Heuristics of Shopping
Social Psychology Theories, Social Network
Analysis, and the Social Graph
• Social Network Theory and Analysis
– Social Network Theory
• Social network*
• Social network analysis (SNA)*
– The Benefits of Social Network Analysis
Figure 3.5 A Simple Social Network Structure
(There are only three connections between You and Me)
Social Psychology Theories, Social Network
Analysis, and the Social Graph
• Social Graph*
– Graph Search
– The Power of the Social Graph
Social Influence, Social Capital,
and Social Support
• Social Influence*
– Types of Social Influence
1.
2.
3.
4.
5.
Identification
Internalization
Conformity
Compliance
Obedience
– Social Media Influence
– Tracking and Measuring Social Media Influence
Social Influence, Social Capital,
and Social Support
• Social Capital in Social Commerce
– Social capital*
– Effects of Social Networking on Social Capital
– Impact on Sales and Marketing
• Social Support in Online Communities
– Social support*