Social media and ecommerce pdf

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social media and ecommerce pdf

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Digital 2020

Web 2. Francisco J. Mata 1 and Ariella Quesada 2. The spectacular development of the Web 2. Marketing is one of them and businesses have decided to experiment with this new type of technology in support to their commercial activities. However, to take advantage of Web 2. This requires putting Web 2. In this article, we clarify Web 2. In particular, we discuss the role that online social networks may have in e-marketing, and in doing so how such networks might relate to e-commerce.

In addition, recommendations for e-commerce researchers are presented based on the evidence obtained. Keywords: Web 2. Given the spectacular number of users in such networks, many businesses are using them as marketing tools. The previous is important since most Web 2. This situation has motivated the operators of the major online social networks to develop and offer marketing services for which businesses are willing to pay, allowing them to generate revenue to cover their expenses, and in this way provide their core services free to users.

Nevertheless, Web 2. According to Clarke, "the Web 2. Using Web 2. This is essential to put such applications in a clear perspective with regards to e-commerce, which currently is a fundamental e-marketing tool. The objective of this paper is to present the potential of Web 2. To achieve this aim, we conducted a literature survey, first to explain Web 2. We conclude based on this research that, from a technological point of view, Web 2. Yet from a social stand point, it can be considered a true revolution.

Faithful to its roots, Web 2. However, this situation is likely to change. To explain this change, we propose two different marketing perspectives for online social networks. The first one, to which we referred to as the market perspective, considers such networks simply as collections of individuals which make a market. As Dooley et al. In this perspective, online social networks and e-commerce are complementary e-marketing tools.

In the second perspective, denoted as community perspective, online social networks are seen less as a market and more as a virtual community, in which the individuals share common interests. As it is the case with communities, a seller has little influence in an online social network and the network's members could be resentful if the seller tries to seek such influence [41].

In this perspective, the borderlines between social networks and e-commerce become blurred, and an integration of these two technologies is likely to occur. This paper is organized in six sections. Section 2 aims to clarify the core concepts of Web 2. Online social networks, the best examples of sites developed using Web 2. Section 4 discusses how online social networks can be used as marketing tools. Leaving aside the perspective of groupware, which is commonly considered as an extension of the online social networks in businesses, the previously mentioned marketing and community perspectives are presented in this section.

Finally, section 5 compares and contrasts online social networks and e-commerce as strategic elements for marketing and section 6 presents conclusions and recommendations for e-commerce researchers. The term Web 2. Turban et al. These authors emphasize the fact that Web 2. Therefore, the main difference between Web 2. Constantinides and Fountain refer to Web 2. We adopt this definition in this paper, since it relates Web 2. Therefore, the advent of Web 2. Therefore, Web 2. Examples of websites using Web 2.

These sites are characterized by their ability to create and share information directly by users in the form of text, photographs, sounds, videos, and music, and to enable communication and interaction between users. According to him, the generation of content by users was part of the intention when the WWW was created; therefore, Web 2.

This opinion addresses the previous issue presented by Clarke [10]. Table 1 compares the characteristics of Web 1. As this table shows, the Internet is considered in the Web 1. Sites characteristic of the Web 1. Consequently, the typical tools for Web 1. This is related to the search for economies of scale, that is, the increase in the volume of transactions while the marginal cost of a new transaction decreases [9]. In addition, the software used to develop Web 1. The scope of communication ranges from local to wide area networks.

Finally, due to the emphasis on information display and retrieval and the use of software as a product, Web 1. Table 1: Characteristics of web 1. In contrast to Web 1. This new paradigm was initiated by Netscape, which developed one of the first web browsers and marketed it as a free service, and is now been pursued with more impetus by Google through its suite of Internet applications Google Apps Site Unlike Web 1.

Online social networks, i. Such networks are related to the small-world phenomenon, also known as the "six degrees of separation" see [51] , in which there is a small chain of acquaintances connecting every two persons in the world.

These sites are developed using web programming languages that generate HTML on demand and interact with databases and other Web 2. Such sites focus on collaboration and knowledge creation on the Internet, rather than on retrieving and displaying information.

The emphasis on collaboration and creation of collective knowledge favors the provision of software as a service on this model of the WWW [11], supporting cloud computing -- computing model in which software and its associated data are centrally stored on the "cloud" [2]. In addition, Web 2. On the other hand, network effects are sought in the Web 2. Network effects are positive externalities, that is, situations in which the welfare of an individual increases "by the actions of other individuals, without a mutually agreed-upon compensation" [16] p.

Network effects clearly exist in Web 2. Network effects become apparent after a certain level of subscription for the product or service is obtained, referred to as critical mass [45]. This requires attracting users to adopt the application before this level is reached. For pioneering or innovative applications, achieving critical mass might be simple if users find value in the system beyond network effects. However, in the case of applications that imitate others, obtaining the critical mass might be difficult.

Therefore, network effects in a Web 2. Another important aspect of Web 2. According to O'Reilly [39], the exploitation of collective intelligence is the primary reason why successful Web 1. Collective intelligence is related to Surowiecki's ideas presented in his book "The Wisdom of Crowds" [47]. Such type of intelligence pools the knowledge and experience of persons in relation to different social contexts. According to Golub and Jackson, individual beliefs converge to truth in a social network "if and only if the influence of the most influential agent in the society is vanishing as the society grows" [23] p.

This concept is based on social constructionism, theory which explains how knowledge is constructed through social processes [5]. Wiki applications fall into this category [8], and Wikipedia, in particular, provides a good example [21], [31].

However, collective intelligence in Web 2. According to these authors, "although [Web 2. The above comment derives from the lack of editorial control in most of the information available on the Internet. Although it is very difficult to establish such control, the risk of erroneous information appears to be manageable, particularly in Web 2.

The same case of Wikipedia illustrates this situation. A study published in Nature found that Wikipedia is as good as the Encyclopedia Britannica in terms of the quality of its information [21].

This conclusion is reinforced by the fact that the Encyclopedia Britannica has taken the decision to invite the public to write articles in its online edition, in response to the phenomenal success of Wikipedia [38]. Furthermore, Web 2. This situation forces the development of light interfaces for such devices. Finally, social aspects are more important than the technological ones for developing Web 2. For this reason, Web 2. This experiment focuses on knowledge and wisdom from a large number of users, but also leads to problems related to quality and integrity of content, and also security and privacy problems [54].

A social network is a social structure composed of individuals or organizations, called nodes, which are interrelated or connected. These connections can be represented by arcs which represent different types of relationships between the nodes, such as friendship, functional or dependency, or relationships in terms of beliefs, knowledge or social status [13].

On a personal level, social networks reflect the ways in which people relate through various social groups [54]. Although these networks are often considered as social media [33], following Constantinides and Fountain [11], we consider in this paper such networks more from the point of view of their application, rather from their social aspects. It is important to distinguish in social networks two distinct but related issues: connectedness, i.

Social Commerce E Commerce in Social Media Context

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Social Media 7 min read. Social media used to be all about connecting with friends. You'd simply search for a friend, connect with them, and start talking about anything and everything. Social media grew from just connecting friends to uniting brands and communities online. In recent years, social media has turned into an essential piece of everybody's lives and, in turn, your marketing strategy.

Social media serves a vital purpose in online marketing by helping companies establish stronger web presence, generate leads and increase traffic. A well-structured social media strategy is important for improving the development and growth of an ecommerce business. Social media continues to gain popularity owing to its commercial success around the world. A significant percentage of advertising campaigns take place through social media websites. Including social media in an effort to advance ecommerce can be highly beneficial. It provides an effective way to attract the interest of the large audiences that use social media.

The Effects of Social Media on E-Commerce: A Perspective of Social Impact Theory

Close to half a billion new social media users. Trillions of dollars spent on ecommerce. Changes in how people search for information and brands;. The evolving demographics of online audiences;. The rapidly growing importance of ecommerce ;.

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