Learning Objectives What is the relationship between social
commerce and e-commerce? How do ratings and reviews provide value
for consumers and e-retailers? How do social shopping applications
and tools affect consumers as they move through the consumer
decision-making process? What are the psychological factors that
influence social shopping? Tracy L. Tuten and Michael R. Solomon
2015 8-2
Slide 3
Figure 8.1 Social Commerce Tracy L. Tuten and Michael R.
Solomon 2015 8-3
Slide 4
Social Media Marketing, 2e Social commerce is a subset of
_____________ E-commerce
Slide 5
Social Media Marketing, 2e Today over 82% of those who conduct
research about purchase decisions online also ______ Shop
online
Slide 6
Social Media Marketing, 2e __________ refers to situations
where consumers interact with others during a shopping event.
Social shopping
Slide 7
Social Media Marketing, 2e The process of shopping in terms of
the stages of consumer decision making require what five steps?
Problem recognition, Information Search, Alternative evaluation,
purchase, post- purchase evaluation
Slide 8
Social Media Marketing, 2e ZMOT stands for ________ Zero Moment
of Truth
Slide 9
Social Media Marketing, 2e The moment a consumer chooses a
product from the store shelf is the ________ and the _______is the
moment the consumer uses the product and feels satisfaction or
dissatisfaction. First Moment of Truth, Second Moment of Truth
Slide 10
Social Media Marketing, 2e ______ are assessments with detailed
comments about the object in question; ____s are simply scores
generated by users that reflect assessments of attributes like
perceived quality, satisfaction, or popularity on a scale Reviews /
ratings
Slide 11
Social Media Marketing, 2e Ratings are a __________; a mental
shortcut consumers use to help them with decision making.
heuristic
Slide 12
Social Media Marketing, 2e Increasingly, reviews are
questioned. Why? Deception estimates are 30% are fraudulent
Slide 13
Social Media Marketing, 2e Among the social commerce sharing
options, virtual galleries where users can share their creations,
shopping lists are sometimes called _____________ User curated
shopping
Slide 14
Social Media Marketing, 2e Groups of people who meet online to
communicate about products and help each other solve related
problems. User forums
Slide 15
Social Media Marketing, 2e Among the Best Practices to Leverage
Social Reviews and Ratings, _____ is defined in Chapter 8 as
acknowledging opinions that were invited, incentivized, or
facilitated by the brand. Transparency
Slide 16
Social Media Marketing, 2e Among the Best Practices to Leverage
Social Reviews and Ratings, _____ is defined in Chapter 8 as the
idea that online opinions are so influential because they live on
in perpetuity. sustainability
Slide 17
Social Media Marketing, 2e The most commonly cited reason given
for not allowing online reviews on business sites is the fear that
dissatisfied customers will use the review feature as a venue to
_________ a brand. flame
Slide 18
Social Media Marketing, 2e Of the sources of influence, when a
lot of people select one option (e.g., a clothing style or a
restaurant), we interpret this popularity as ________ Social
proof
Slide 19
Social Media Marketing, 2e The second source of influence is
________, that persuades with the opinion or recommendation of an
expert in the field. authority
Slide 20
Social Media Marketing, 2e ________ sometimes called liking,
means that people tend to follow and emulate those people whom they
find attractive or otherwise desirable. affinity
Slide 21
Social Shopping Social shopping refers to situations where
consumers interact with others during a shopping event online. T r
a c y L. T u t e n a n d M ic h a el R. S o l o m o n 2 0 1 5 8-21
Our shopping companions, known among marketers as purchase pals,
help us to think through our alternatives and make a decision.
Slide 22
Figure 8.2 Social Shopping the story of David drag to a mall
8-22
Slide 23
Why do we shop? Get things we need Get things we want Shopping
is an activity that we can perform for either utilitarian
(functional or tangible) or hedonic (pleasurable or intangible)
reasons What motivates human behavior? Think back to some of the
points from previous discussion: understanding why people do things
8-23
Slide 24
The Decision-Making Process Problem Recognition Information
Search Alternative Evaluation Purchase Post- Purchase Evaluation
8-24
Slide 25
The Marketing Value of Social Commerce Ratings and Reviews
Recommendations and Referrals 8-25
Slide 26
Benefits of review Reviews result in better site stickiness
customers reading reviews will stay at a retail site longer than
they would otherwise. They can also enhance the effectiveness of
offline promotional strategies: Rubbermaid added review comments
from its website to the content included in its freestanding
inserts. When reviews were included, coupon utilization increased
10%. Social Media Marketing, 2e 8-26
Slide 27
Benefits of review Lastly, the reviews and opinion posts become
a source of research data for the business, highlighting consumer
opinions in a frank yet unobtrusive fashion. Businesses can learn
whether consumers like a competitors brand better and why, how
consumers react to positive or negative press, what stories are
being spread about the brand, and which customers are being
evangelical and which ones are acting as brand terrorists. Social
Media Marketing, 2e 8-27
Slide 28
Who has a smart phone, etc.? Lets make some buying decisions
Pick a restaurant in Mesquite Social Media Marketing, 2e 8-28
Slide 29
Who has a smart phone, etc.? Lets make some buying decisions
Book a flight to Las Vegas Social Media Marketing, 2e 8-29
Slide 30
Who has a smart phone, etc.? Lets make some buying decisions
Find a hotel room in Las Vegas Social Media Marketing, 2e 8-30
Slide 31
Who has a smart phone, etc.? Lets make some buying decisions
Find a show in Las Vegas Social Media Marketing, 2e 8-31
Slide 32
Social Commerce Strategies Share tools Recommendation
indicators Reviews and ratings Testimonials User galleries Pick
lists Popularity filters User forums 8-32
Slide 33
Social Commerce Strategies Share tools social software plug-ins
that enable easy sharing of products sold on a retailers website to
social networks. The most popular plug-in today for retailers is
Pinterest. 8-33
Slide 34
Social Commerce Strategies Recommendation indicators simple
buttons that provide an onsite endorsement of a product. The most
common options are Facebooks like and Googles +! buttons 8-34
Slide 35
Social Commerce Strategies Testimonials a form of
recommendation that enables users to share a more personal story
about their experience, possibly as a video endorsement. Refer back
to traditional mediaspokesperson approach might be an endorsement
or a testimonial 8-35
Slide 36
Social Commerce Strategies User galleries virtual galleries
where users can share their creations, shopping lists, and wish
lists. This approach is sometimes called user-curated shopping may
occur onsite or offsite with a community like Wanelo. 8-36
Slide 37
Social Commerce Strategies User forums groups of people who
meet online to communicate about products and help each other solve
related problems. 8-37
Slide 38
Best Practices Authenticity accept organic WOM (including
negative WOM) Transparency acknowledge opinions that were invited,
incentivized, or facilitated Advocacy enable consumers to rate the
value of opinions Participatory encourage consumers to contribute
reviews and ratings Reciprocity acknowledge the value of consumer
opinions Infectiousness make it easy to share Sustainability
remember opinions online live on 8-38
Slide 39
WOMMA Guidelines for WOM Marketing Educate people about
products Identify people most likely to share opinions Provide
tools to make it easier to share opinions Study how, when, and
where opinions are shared Listen and respond to supporters,
detractors, and neutrals 8-39
Slide 40
Refer back to to the idea of deception Handout CNN 8-40
Slide 41
Influence and Social Shopping Why do we do what we do? Social
proof Authority Affinity Scarcity Reciprocity Consistency 8-41
Slide 42
Influence and Social Shopping Social proof When a lot of people
select one option (e.g., a clothing style or a restaurant), we
interpret this popularity as social proof that the choice is the
right one. 8-42
Slide 43
Influence and Social Shopping Authority Authority persuades
with the opinion or recommendation of an expert in the field.
Whenever someone has expertise, whether that expertise comes from
specialist knowledge and/or personal experience with the product or
problem, we will tend to follow that persons advice. Diffusion of
Innovations Two-Step Flow 8-43
Slide 44
Influence and Social Shopping Affinity sometimes called likin,
means that people tend to follow and emulate those people whom they
find attractive or otherwise desirable. If we like someone, we are
more likely to say yes to their requests or to internalize their
beliefs and actions as our own. 8-44
Slide 45
Influence and Social Shopping Scarcity We tend to instinctively
want things more if we think we cant have them. 8-45
Slide 46
Influence and Social Shopping Reciprocity The rule of
reciprocity basically says that we have an embedded urge to repay
debts and favors, whether or not we requested the help. Reciprocity
is a common norm of behavior across cultures. 8-46
Slide 47
Influence and Social Shopping Consistency People strive to be
consistent with their beliefs and attitudes and with past
behaviors. When we fail to behave in ways that are consistent with
our attitudes and past behaviors, we feel cognitive dissonance, a
state of psychological discomfort caused when things we know and do
contradict one another. 8-47
Slide 48
Recap and Questions What is the relationship between social
commerce and ecommerce? How do ratings and reviews provide value?
How do social shopping applications affect the decision-making
process? What psychological factors influence the social shopping
process? 8-48
