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E-commerce on social media - Essay Example

Studies affirm that lack of product touch and Interaction with organizational representatives may inhibit the acceptance f and positive attitudes toward e-commerce (Seasonal, Chatty, & Shame, 2009). High levels of interactions with e-commerce commodities and organizational representatives may increase positive attitudes towards electronic commerce, which In turn plays an integral role in Influencing the decisions to use e-commerce systems. E-commerce surveys conducted In 2009 reported that online shoppers have a preference of an interactive online shopping experience because they considered it more informative (Mimed, 2011).

This implies that online shoppers are likely to make a arches from a website that has interactive components incorporated In the form of social cues. This research paper discusses the effects of social media on Australia e- commerce. The Pervasive effects of Social Media on Australian E-commerce study by Wakefield et al (2011) reported the inclusion of social clues in a website leads to greater beliefs regarding their user intentions, enjoyment, perceived usefulness, and perceived ease of use.

The Inference from this view Is that social media tends to make the website friendly, Informative and helpful, which Increases he likelihood that such users will make a purchase from that website. The study by Wakefield et al (2011) further stated that website socialites tends to evoke an effective social response from the users of e-commerce websites. This Is because users associate website social clues with life-Like attributes such as friendliness, informative, usefulness, helpfulness, politeness and intelligence.

The fundamental assertion is that user’s perception of websites sociability is a core element in approach used in explaining and predicting behavioral intentions in electronic commerce (Dunn & Harper, 2002). As an analogy. Users liken the Inclusion of social media in the e-commerce websites to digital representatives. E-commerce websites having immense social cues establish efficiencies for business enterprises through a reduction of ambiguity and enhancing continuing relationships with customers, suppliers and business partners.

It Is apparent that websites embedded with social cues create a social response from the users of the e-commerce website leading to high levels of enjoyment when using the site because they believe that social cues in websites are enjoyable, adventurous and exciting (Wakefield et al. 2011). There is a positive correlation between enjoyable website experience and higher Intentions of using the site, which In turn Increases their personal connection with the online retailers.

Such personal connections offer a valuable opportunity that online retailers that electronic retailers aiming at enhancing consumer attention and purchasing must evaluate the social aspects of the internet. Social Media Eliminates Barriers to Personal Interaction The current software and hardware used for personal interaction with online retailing websites target simultaneous group of online shoppers instead of the individual. This is a significant barrier to personal communication eliminated by the inclusion of social media in the web retailing sites (Town, 1999).

Irrespective of the shopping motivation, shopping behavior does not necessarily translate to a pleasant shopping experience or the purchasing behavior. This is a typical characteristic of web retailing sites lacking the social aspects in their design. Fennec & Tint (2010) asserts that the ultimate role played by the incorporation of social media in web retailing sites is that it leads to high levels of customer retail satisfaction at an individual level.

This draws on the view that the shopping orientation of an individual is the significant determinant of the environment selected to engage in the shopping activity and their overall retail satisfaction (Tint & Coca’s, 2001). A study by Tint & Coca’s (2001), to examine the constructs that affect internet users’ adoption of web retailing and their perception towards product types bought via the web, indicated that attitude towards electronic retailing and perceived usefulness played an integral role in influencing the adoption of web retailing.

The study indicated that favorable attitude resulted in high adoption of web retailing, while unfavorable attitudes resulted in under-utilization of web retailing frameworks. Tint & Coca’s (2001) pointed out that lack of personal communication and interaction is the key determinant that differentiates between favorable and unfavorable attitudes, which implies that web retailing sites devoid of personal communication tools reported low levels of customer retail satisfaction.

It is apparent that social media plays an integral role in eliminating barriers to personal interaction in web retailing sites, which in turn helps in increasing user retailing satisfaction. In addition, social media plays an integral role in building trust of web retailing among internet users, this is because users place greater significance on interpersonal influence from sources like peer groups when making such a decision (Susann, 2011).

The basic inference from this observation is that the incorporation of social media in electronic commerce helps in eliminating barriers to personal interaction and communication, which in turn increases the utilization of electronic commerce among Australian internet users. As such, online retailers can incorporate social media in their retailing sites to build rust from the potential internet shoppers. Social media has the potential of increasing the number of web shoppers, generating repeat purchases and fostering positive attitudes towards the use of online retailing in Australia.

Tint & Coca’s (2001) asserts that social media is a key driver for the adoption of web retailing and eliminating the potential barriers associated with the utilization of web retailing. Therefore, online retailers can make use of social media to establish and increases their market share in the online environment because social media is a perfect tool for enhance online visibility. Social media presents a new retailing opportunity that online marketers can use to influence attitudes and usefulness of their retailing sites (Stephens, 2010).

Social Media and electronic word-of-mouth (meow) interpersonal communication relating to commodities and products between consumers. Mira & Young (2009) considers word-of-mouth as the most influential source information for consumers because consumers have a high level of trust towards their peer consumers than the trust they have for advertisers and marketers (Asia et al. , 2009). Word-of-mouth is not dependent on marketers selling intentions’, implying that consumers consider such information credible and trustworthy. Research studies affirm the influential nature of word-of-mouth on consumers’ decisions and purchasing behaviors.

WHOM is increasingly becoming significant with the advent of the internet, taking numerous forms such as product review websites, brands’ websites, personal blobs and social networking sites. The increase in meow platforms has facilitated consumer communication in terms of product-related information. A study by Mira & Young (2010) pointed out that the various meow platforms played an integral role in influencing consumers’ purchasing decisions. The ongoing growth of blob sites and social networking impose significant effects on brands and their respective marketing.

It is increasingly becoming apparent that consumers are researching products and brands via social networking sites such as Faceable and Google+, which reach a significant percentage of internet users. The impacts of social media can take place in three perspectives including product ratings and review, publicity of customer experiences, and constant innovation (Rafael & Urban, 2005). Most aspects of electronic word-of-mouth take the form of social media such as discussion boards and other online communication platforms.

Studies affirm that that electronic word-of-mouth plays an integral role in influencing the adoption and use of commodities and services, which implies that meow influences consumer behavior of web retailers. It is increasingly becoming apparent that meow is becoming a significant component of the marketing mix because they determine the buying decisions adopted by online consumers Eye, 2002). The fundamental argument is that social media, through meow, plays a vital role in the establishment of a computer-mediated environment, whereby the purchasing sections of consumers depend on the perceived quality of information they get.

When consumers get the information that meet seems to meet their needs and requirements, they are willing to criticize the product/service value basing on the criteria for the purchasing decision (Dunn & Harper, 2002). This implies that online markers have to determine the customers’ insight of information quality on the internet, which helps in assessing their potential purchasing behavior. Marketers can make use of social media to manipulate variables of information quality such as timeliness, accuracy, relevance and comprehensiveness (Dollar & Aching, 2003).

The usefulness of information imposes significant impacts on consumers’ decision to adopt information gathered from online communities. Information usefulness depends on credibility and quality of information. As such, online consumer forums are increasingly becoming important to consumers because the information gathered from such social online communities are from peer consumers and devoid of marketers’ intentions (Change & Strut, 2004). Comprehensiveness of information gathered from online communities tend to increase the pervasive nature of social media on electronic commerce. Mira & Young (2011) asserts that the social media era

Previously, product reviews and ratings were a reserve for publishers such as Consumer Reports and CENT magazines (Andrews et al. , 2007). The paradigm shift currently includes social media users engaging in constant product reviews and ratings. It is vital to note that, in social media, there is no storage of product ratings and reviews on retailers’ website. The second impact of social media is the publicity of consumer experiences (Andrews et al. , 2007). In social media, consumer experiences are a core driver of most of brand conversations, which certainly imposes significant impacts on the brand reputations of retailers.

Social media and blob sites impose significant effects on the marketing of brands. In fact, social media provides an avenue for mass-market advertising over the internet (Change & Strut, 2004). A good marketing approach does not only incorporate mass marketing, but also seek ways to communicate with customers via social media platforms such as Faceable, Twitter and other blobbing platforms by creating an engaging content for social media users to interact with both the retailers and among themselves (Dollar & Aching, 2003).

The meow trend imposes significant implications on marketing strategies. This is because effective online market is increasingly depending on social influence, with conventional marketing losing its significance and increasingly becoming ineffective. Australian marketers have to appreciate that they have no control on their online brands. This is because people will discuss the brand without involving the marketers, who cannot the circulation of negative comments on the various social media platforms (Change & Strut, 2004).

However, Australian marketers can embark on maximizing the probability of distributing good conversations relating to a product. Australian online marketers are increasingly adopting this strategy. Effective marketing strategies in the wake of social commerce require smart vital techniques for increasing the distribution of positive comments about a brand or product. With the internet increasingly becoming social, it is imperative that online stores in Australia adopt social media integration in their electronic commerce websites to foster member engagement and product discovery (Andrews et al. 2007). Social Commerce Social commerce refers to the use of social media platforms in the context of electronic commerce, with the primary objective of enhancing online buying and selling. Social commerce entails an integration of two digital trends including electronic commerce and social media. Electronic commerce depends on web-based communities and effective web-based communication, which has a significant effect on online visibility and sales. Web-based communication has the potential of changing corporate advertising, nature of community sponsorship strategies and the business model.

Social media emerges as the most powerful tool for online communication. In the present digital economy, setting up an online store and waiting for potential customers is not adequate (Change & Strut, 2004). Online retail outlets have to adopt a proactive approach by seeking ways to engage consumers, establish relationships and form online communities. The difference between social commerce and conventional e-commerce is the incorporation of social elements in the online business model.

Social commerce entails features such as consumer ratings and reviews, referrals, social shopping platforms, user recommendations and trusted environment whereby people generate content relating to the referral and sale of commodities using customer feedback, reviews, ratings and testimonials (Chemung et al. , 2008). The key drivers of social commerce include electronic business opportunities, online communities and the emergence of internet technologies such as web 2. 0. The core characteristics of social commerce include gathering of collective intelligence, viral marketing, market disruption, and a platform for participation.

Gathering collective intelligence implies that the competitive advantage of social commerce websites depends on the critical mass of retailers and consumers (Andrews et al. , 2007). The key towards attaining online market dominance is the network effects derived from user contributions. In relation to the aspect of viral marketing, it is apparent that social commerce relies significantly on word-of-mouth marketing, which takes place when customers promote a commodity via their positive experiences with the product.

Therefore, branded communities can establish long lasting relationships and deeper affinity with their customers. Most social commerce websites are instances of phenomenal networks characterized by democratic participation, whereby people generate what other people want on an equal platform. Social commerce websites such as Faceable integrates numerous social Edie tools like sharing of photos and blobs, to provide users with an avenue through which they can express their opinions and preferences. Such websites also serve the role of a central communication hub for social networks.

Business enterprises can establish online fan communities to promote their services and products by creating circles of friends, such avenues present an opportunity for brand building. Social commerce is a powerful tool because of its ability to establish a “friends” network of individuals who are passionate about a given brand (Chemung et al. , 2008). This facilitates the communication of the brand message to online communities. Online fan base and communities are increasingly becoming the new method of mainstream advertising.

Viral marketing is a significant attribute of social commerce that business enterprises can use to increase brand awareness in a cost- effective manner. When people buy any commodity, they have the tendency of passing the message to other potential consumers. This implies that companies have to change their strategies used for communicating with their consumers. Social media gives consumers the power to control their brands (Seasonal et al. 2009). The integration of electronic commerce and social media leads to pervasive and rigorous business models. E-commerce relies on online experience and links to external sites.

These thorough business models attract and retain website users by providing free user accounts and usage of the websites. In addition, knowledge systems that facilitate feedbacks serve to strengthen the effectiveness of the social commerce business model. There are other numerous impacts of social media besides direct sales including an increase in brand visibility, gaining marketing insights and improving customer loyalty. Social media helps in increasing brand visibility by facilitating constant dialogue between the brand and their respective consumers.

Social media creates an avenue for social interaction, whereby consumers can get to know and trust the brand. The ongoing engagement with online friends and fans leads to increased brand awareness. Social media enhances customer loyalty enhance brand loyalty via social media should embark on community building process. Social media provides an opportunity for gaining marketing insights because the communication platform informs the marketer of consumers’ thoughts on the brand. Therefore, marketers can grasp the mind of consumers via the social media (Change & Strut, 2004).

Social Media Creates Value and Satisfaction in the Electronic Marketplace Mimed (2011) asserts that consumers perceive value depending on how they will utilize the existing resources to meet the needs and wants. Fundamentally, value refers to the benefits that customers obtain given the costs associated with time, money and energy. Value imposes significant influences on the consumption behavior of consumers, pricing, profit levels and other strategic decisions made by the enterprise. Value also plays an important role in the establishment of sustainable competitive advantage.

The incorporation of social media in electronic commerce helps in creating value for customers in numerous ways. First, customers receive a “market of one” treatment. Business enterprises can generate value for its consumers by offering commodities at appropriate prices. Social media provides numerous opportunities through which businesses can communicate with their customers. Social media offers numerous opportunities for enterprises to increase economic utility, which in turn leads to increased customer satisfaction for online shoppers (Andrews et al. , 2007).

The most prevalent utility involves time and place, whereby customers can access information regarding the products any time. The value-creation process associated with social media tends to increase customer expectations because interpersonal interaction and communication between customers, suppliers and the business enterprises. Presently, businesses are using social commerce to create high value and customer satisfactions. The Australian society is increasingly becoming deep-seated in the social media culture, characterized by consumers depending on their friends for advice relating to online transactions.

It is integral that enterprises take this trend of friends aiding in making online purchases into consideration. Australian companies must prioritize and utilize social mediums effectively to create value and competitive advantage. For example, firms can constantly update their social network pages, offer valuable news and resources to their customers, and establishing an active online presence. Adopting such a business strategies can help in improving online sales and ensuring that the firm does not lag behind in terms of emerging trends electronic commerce (Seasonal et al. 2009). Conclusion This paper has discussed the effects of social media on Australian e- commerce. The paper established numerous effects of social media on e-commerce including the pervasive effects of social media on Australian e-commerce; social media eliminates barriers to personal interaction; social media and electronic word- of-mouth (meow); social commerce; and social media creates value and satisfaction in the electronic marketplace. Annotated Bibliography Adapt, S. (2008). Adoption of Internet Shopping: Cultural Considerations in Australia and India.

Journal of Internet Banking and Commerce , 13 (2), 1-16. Adapt examined the patterns of web shopping by Indian women residing in India and take into account the existing cultural and social situations in their business models. Therefore, it is important for marketers to have an understanding of consumers prior to the formulation of effective online marketing strategies. Online retail outlets have to adopt a proactive approach by seeking ways to engage consumers, establish relationships and form online communities.

The difference between social commerce and conventional electronic commerce is the incorporation of social elements in the online business model. Social commerce entails features such as consumer ratings and reviews, referrals, social shopping platforms, user recommendations and online communities. This source provided significant insights in understanding the significance of incorporating social media in marketing. Seasonal, H. , Katie, A. , & Shame, A. M. (2009). Factors Determinate Customer Shopping Behavior Through Internet: the Malaysian Case.

Australian Journal of Basic and Applied Sciences , 3 (4), 3452-3463. The authors explored the factors affecting shopping behavior of online customers; specifically, the article investigated he various ways through which internet marketing affect consumer behaviors. The article illustrates that the social media era has imposed significant changes in relation to product reviews and ratings. Previously, product reviews and ratings were a reserve for publishers. The paradigm shift currently includes social media users engaging in constant product reviews and ratings.

The article was an important source for analyzing effective online strategies that Australian businesses can adopt to increase their online market share and foster customer loyalty through the integration of social media in e-commerce websites. Andrews, L. , Kiel, G. , Adrenal, J. , Bayle, M. , & Warranted, J. (2007). Gendered Perceptions of Experiential Value in Using Web Based Retail Channels. European Journal of Marketing , 41 (5/6), 650-658. Andrews et al (2007) examined the experiential consumption values that encourage buyers to engage in online purchases.

The article investigates the gendered perceptions of social and conditional value determining online purchasing. The study established that social value discriminate male purchasers while functional value discriminate female purchasers. The article provided a theoretical framework for evaluating the role of social influence in affecting online purchasing, which is central towards exploring the thesis of the research paper. Change, J. , & Strut, C. (2004). Internet Shopper Demographics and Buying Behavior in Australia . The Journal of American Academy of Business, Cambridge , 171-176.

The article explores the relationship between internet shopper demographics and buying behavior. The authors assert that incorporation of social media in electronic commerce helps in eliminating barriers to personal interaction and communication, which in turn increases the utilization of electronic commerce among Australian internet users. As such, online retailers can incorporate social media in their retailing sites to build trust from the potential internet shoppers. Chemung, C. , Matthew, K. , & Arabian, N. (2008). The Impact of Electronic Word-of- Mouth: The Adoption of Online Opinions in Online Customer Communities.

Internet Research , 18 (3), 229-247. The authors exploit the impacts of meow and conclude that electronic word-of-mouth plays an integral role in influencing the adoption and behavior of web retailers. It is increasingly becoming apparent that meow is becoming a significant component of marketing mix because they determine the eying decisions adopted by online consumers. This source provided an insight to the impacts of meow on the effectiveness of online marketing strategies. Dollar, R. , & Aching, K. (2003). Shoppers in Cyberspace:Are They From Venus or Mars and Does It Matter? Journal of Consumer Psychology , 13 (1), 171-176.

The article explored the relationship between gender stereotypes and internet shopping behaviors. The information obtained from the source played an integral role in having an understanding of the social influences relating to internet shopping. The authors assert that effective online marketing is increasingly depending on social influence, with conventional marketing losing its significance and increasingly becoming ineffective. Australian marketers have to appreciate that they have no control on their online brands. Dunn, E. , & Harper, l. (2002). E-commerce and the Australian economy. The Economic Record , 78 (242), 327-342.

Dunn and Harper (2002) evaluate the impact of electronic commerce on Australian economy. The article reports that the integration of electronic commerce and social media leads to pervasive and rigorous business models. The economy is increasingly becoming digital, implying that business enterprises in Australia are supposed to embrace emerging online marketing strategies such as the use of social media. This source provided a comprehensive overview of the impacts of electronic commerce on Australian market place. Joey, G. (2002). Influences on the Intent to Make Internet Purchases. Internet Research , 12 (2), 165-179.

Joey (2002) explores the various factors that affect internet purchases and insists that social media is a significant determinant of internet purchases. Social media encompasses of web-based applications that facilitate the formulation and exchange of user-generated content. Social media uses internet-based and web- based technologies to convert broadcast media monologues to social media dialogues. This source was important in providing a detailed overview of the importance integrating social media with e-commerce, to create social commerce. Mimed, N. (2011). The Impact and Benefits of Internet on Marketing Mix.

Australian Journal of Basic and Applied Sciences , 5 (9), 1784-1789. According to Mimed (201 1), consumers perceive value depending on how they will utilize the existing resources to meet the needs and wants. Mimed asserts that Australian business enterprises can enervate value for its consumers by offering commodities at appropriate prices. As a result, social media provides numerous opportunities through which businesses can satisfaction for online shoppers. Presently, businesses are using social commerce to create high value and customer satisfactions. Mira, L. , & Young, S. (2009).

Electronic Word-of-mouth (meow): How meow Platforms Influence Consumer Product Judgment. International Journal of Advertising , 23 (3), 473-499. Mira & young (2009) asserts that WHOM increasingly becoming significant with the advent of the internet, taking numerous rooms such as product review websites, brands’ websites, personal blobs and social communication in terms of product-related information. This article provided an in depth understanding of how social media fosters meow marketing. Rafael’, S. , & Urban, D. (2005). Information Sharing Online: a Research Challenge. International Journal of Knowledge and Learning , 62-69.

The authors assert that the internet the new retailing framework for businesses to exploit. The article reports that online shopper have a preference of an interactive online shopping experience because they considered it more informative. This implies that online shoppers are keel to make a purchase from a website that has interactive components incorporated in the form of social cues. This source provided an insight towards understanding the role that social media play in creating an interactive and informative shopping guide. In addition, social media has the capability of increasing the utilization of e-commerce in Australia.

Asia, C. , Kate, H. , Kook, L. , Lee, M. , & Hung, W. (2009). Web Strategies to Promote Internet Shopping: Is Cultural-customization needed? MIS Quarterly , 33 (3), 491-512. Asia et al (2009) explores the various strategies that online marketers can use o influence consumers’ decision to purchase their products. The core characteristics of social commerce include gathering of collective intelligence, viral marketing, market disruption, and a platform for participation. This source provided the core attributes of social commerce and the opportunities presented by social commerce that Australian businesses could exploit.

Stephens, L. (2010). The New Online Retailing Boom. B&T Magazine , 14. Stephens (2010) argues that the internet the new retailing framework for Australian businesses to exploit. The article reports that online shopper have a preference of an interactive inline shopping experience because they considered it more informative. This implies that online shoppers are likely to make a purchase from a website that has interactive components incorporated in the form of social cues. This source provided an insight towards understanding the role that social media play in creating an interactive and informative shopping guide.

In addition, social media has the capability of increasing the utilization of e-commerce in Australia. Susann, A. (2011). Journal of Internet Banking and Commerce. Continued And Frequent Use of Internet Banking by Australian Consumers: Identification of The (2), 1-22. Susann (2011) discusses the prevalence of Factor Components , 6 internet banking in Australia and the factors that influences the use of online banking. The article reports that’s banks use cost effective marketing strategies to retain online customers and motivate their customers to use online marketing.

The most prevalent utility that banks use includes time and place, whereby customers can access information regarding the products any time. The value-creation process associated with social media tends to increase customer expectations because interpersonal interaction and communication between customers, suppliers and the equines enterprises. Tint, F. , & Coca’s, A. (2001). Internet Users’ Adoption of Web Retailing: User and Product Dimensions. The Journal of Product and Brand Management , 10 (6/7), 361-378. The authors examine the consumer traits that influence internet users to make use of the web for purchase-related behavior.

Their study pointed out that in influencing the adoption of web retailing. The authors illustrate that social media plays a fundamental role in eliminating the barriers to personal interaction in web retailing sites, which in turn helps in increasing user retailing satisfaction. The article also points out that social media plays an integral role in building trust of web retailing among internet users, this is because users place greater significance on interpersonal influence from sources like peer groups when making such a decision.

This source provides information regarding the significance of incorporating social media in electronic commerce to eliminate barriers to personal interaction and communication. Town, B. (1999). E-commerce – Tomorrows Marketplace. Online Information Review , 107-109. Town (1999) acknowledges that the internet is the emerging 23 racket place; as a result, business enterprises must understand the dynamics of web-based communication in order to develop effective marketing strategies.

The author asserts that a good marketing approach does not only incorporate mass marketing, but also seek ways to communicate with customers via social media platforms such as Faceable, Twitter and other blobbing platforms by creating an engaging content for social media users to interact with both the retailers and among themselves. This source offered an overview of how social media has transformed the traditional e-commerce platforms.