Social Media Meets E-commerce
Today, we are living in an ever-changing technological world. We face new communication mediums as well as platforms each day (Baym, 2010). Social media, such as, Facebook, Instagram, Twitter and Youtube, have had a large impact on businesses and their professional identity. In this case study I will be discussing the impact that social media has caused for the shopping industry. Shoppers have embraced technology for a number of reasons, convenience, price and selection. One of the biggest developments in e-commerce is âsocial media shoppingâ. This term refers to the use of social networking sites. Consumers today are tempted and influenced by the decisions that their peers make online. Not only is Facebook, Instagram and blogs used for promotion of products but is also used for online transactions (Vong, 2015). Many points in this discussion will revolve around the following questions: has social media changed the nature of the profession? And, has social media changed the relationship between the industry and the consumers?
Only just a few years ago, the best way to shop was to put on your most comfortable shoes, make sure you had money in your wallet and venture off to the shopping center. Today, shops are going out of business and turning towards the Internet to re invent their company. However, online shops arenât how you think they should be. They are more apart of the marketing aspect to get peoples attention for their website. For example, brands like Urban Outfitters, ASOS and Reformation all use social networking sites to reel in their customers. Top brands, such as these, all have interconnected platforms like, Facebook, Instagram, Youtube and now thereâs a growing trend leading towards Apps. All these social media platforms are used to help benefit the customer. The benefits that help online users are: twenty-four seven accessibility, interactive, global and instantaneous.
Urban Outfitters is a multinational brand developed in the USA. Urban Outfitters is one of many companies that use Facebook and Facebook uses something called algorithms. âThe role of algorithms in the steering of desires, the power of users to control their data, the apparent tension between community-based connectedness and commercialized connectivity, and the meaning of "public" and "nonprofit" in an ecology that is dominated by corporate forcesâ(Van Dijck, 2013). In other words, algorithms is known as a filtering system that shows the things that you and I like to keep up-to-date with the most. Facebook uses a program called EdgeRank, which determines what stories, links, or posts are shown in a newsfeed (Maclyn, 2013). âAny platform dominating a particular niche of social activity is eager to have its buttons ubiquitously implemented on other platforms-a mutually beneficial arrangement because it boosts traffic for all parties involved-while the platform's owners also want to lure and lock users into their chain of platforms.â(Van Dijck, 2013). An example of how Urban Outfitters may do this is through posting photos on their Facebook page of their new arrivals linked to their website, which then the customer begins looking at the clothing on the website, through to shopping cart and then through to purchasing. This is all done through a few swift clicks of a mouse. Therefore the user is lured and âlockedâ into an algorithmic flow (Van Dijck, 2013).
You also may have noticed that when you are on Facebook, personalized ads are on the side of your page or maybe even in your news feed. Well, this isnât a coincidence. âFacebook and Google are particularly interested in predictive algorithms to improve the effectiveness of ads and in advancing the exploitation of their enormous quantities of data. Google Analytics, an integral part of the Google dynasty, has now teamed up with Twitter to explore the potential of real-time sentiments and trendsâ (Van Dijck, 2013). Many online users are more than okay with these personalized ads, however some people think that it is invasion of privacy. So, when youâre on a clothing website like ASOS looking at a new pair of sunglasses, chances are that same pair of sunglasses will follow you around online, whether itâs through Facebook, Google or Email. This is tactic to help consumers purchase products.
An interesting point that Jose Van Dijck made in his article called Ecosystem of Connective Media, was that âFacebook chose a "like" feature rather than a "difficult but interesting "button or an "important" button. "Likes" are not just thermometers of desire but also generators of potential consumer trends. When people see what others like, they want it more-another consequence of peer pressure-and knowing what people want is the basis of constructing needs, as most marketers learn their first week on the jobâ (Van Dijck, 2013). This is the same for Instagram, the more likes someone has the more popular they/it are/is. Which then brings us to âself-promotionâ. In lecture 2 we discussed this term self-promotion and is more defined as exploitation. âUsers become marketers and self promote. Media remain in control and exploit user generated content to make a profitâ(Cassidy, 2015). Personally, a lot of Instagram accounts that I follow have self promoted themselves and in return the clothing business will post that photo of them wearing their clothing (see images below).
Source: Instagram
Zizi Papacharissi described an interesting way of how online users feel about the idea of exploitation in the article, Social Network Sites as Virtual Communities. âUsers clearly enjoy and benefit from online activities even as they generate value for commercial websites. The result, they suggest, might be better understood in terms of mutual benefit than exploitation: Rather than being a zero sum game where if companies derive economic benefit it negates social benefit to the users (and hence is couched in terms of exploitation), is this instead an example of a new articulation of a cooperative and non-zero sum game whereby different motivations and value regimes co-exist?â (Parks, 2012). This statement sheds light on the fact that some people see it as a win-win situation for both the business and the customer. Lots of brands can benefit a lot from Instagram and Facebook, especially when celebrity endorsement is involved.
In lecture 4 we discussed a term called âcrowd sourcingâ which is defined as âharnessing collective resources (knowledge, money, creativity) to solve problems and/or produce thingsâ(Cassidy, 2015). An example of a business that uses crowdsourcing is Reformation. They listen to their customers to know exactly what they want. For instance, there was a large demand for women who wanted petite clothing. Reformation listened and they delivered a whole collection called âDonât Call Me Cuteâ for petite women. On their Facebook page they stay active with their customers by answering queries, receiving feedback on their items and also keeping involved with the environment. Reformation would gain a sense of contribution and improvement to their products therefore an overall benefit for the company and its output. These social media platforms have developed a better relationship between the producer and the consumer. It improves the companyâs appearance and therefore customers will be more loyal (Cassidy, 2015).
Source: Facebook
To conclude this case study, it is evident that social media has changed the nature of shops/shopping. We used to walk into shops to buy items and now we can purchase something online with a click of a button. Not only that, the shopping industry is based on promotion. Which is why professions like public relations and marketers are sought after. Companies need these people employed so they can get their target audience through crowdsourcing, algorithms, self-promotion and creating awareness through all social media platforms. Social media has changed the nature of the relationship between the company and customers through involvement. Social networking sites like Facebook and Instagram allow the customer to âcommentâ or âlikeâ a post by the company, which the business will be able to see and comment back. With this interaction people are more loyal to the company and will stay interested because of the impressive customer service. Although there are issues with privacy over the Internet, such as the personalized ads, online shopping business are one of the industries that have benefited from social media. These new medias have allowed businesses to interact with customers from all over the world and can now really establish their market.
This here is an info-graph about social media and e-commerce
Source: PaymillÂ