Article title: Elements of Social Commerce Subject: Social commerce 1. Reciprocity - When a company gives a person something for free, that person will feel the need to return the favor, whether by buying again or giving good recommendations for the company. 2. Community - When people find an individual or a group that shares the same values, likes, beliefs, etc., they find community. People are more committed to a community that they feel accepted within. When this commitment happens, they tend to follow the same trends as a group and when one member introduces a new idea or product, it is accepted more readily based on the previous trust that has been established.[11] It would be beneficial for companies to develop partnerships with social media sites to engage social communities with their products. 3. Social proof - To receive positive feedback, a company needs to be willing to accept social feedback and to show proof that other people are buying, and like, the same things that I like. This can be seen in a lot of online companies such as eBay and Amazon, that allow public feedback of products and when a purchase is made, they immediately generate a list showing purchases that other people have made in relation to my recent purchase. It is beneficial to encourage open recommendation and feedback.[12] This creates trust for you as a seller. 55% of buyers turn to social media when they’re looking for information.[13] 4. Authority - Many people need proof that a product is of good quality. This proof can be based on the recommendations of others who have bought the same product. If there are many user reviews about a product, then a consumer will be more willing to trust their own decision to buy this item. 5. Liking - People trust based on the recommendations of others. If there are a lot of “likes” of a particular product, then the consumer will feel more confident and justified in making this purchase. 6. Scarcity - As part of supply and demand, a greater value is assigned to products that are regarded as either being in high demand or are seen as being in a shortage. Therefore, if a person is convinced that they are purchasing something that is unique, special, or not easy to acquire, they will have more of a willingness to make a purchase. If there is trust established from the seller, they will want to buy these items immediately. This can be seen in the cases of Zara (retailer) and Apple Inc. who create demand for their products by convincing the public that there is a possibility of missing out on being able to purchase them.
Posted on: Tue, 27 Jan 2015 11:59:18 +0000