2.0. Introduction:
Technological breakthroughs played important role on how businesses are conducted in 21st century.
Introduction of web 2.0 along with widespread access to personal computers and smartphone devices enabled interactive two-way and multi-way communication between customers and businesses (Tuten and Solomon, 2014).
Social media is defined as a the group of applications, which are internet-based, and which are built on the technological and ideological foundations of web 2.0, which further allows the creation and exchange of User generated content (Odén and Larsson, 2011,p.2) (Social media: the new hybrid …show more content…
(Gunawan and Huarng, 2015, p.2237) social media enabled customers to create, discuss and modify the content, which is regarded as user generated content.
Accordingly, it enabled to raise consumer’s voice, who became able to group with their fellows and complain about brands that made mistakes (Businessline, 2016)
Furthermore, in 2006 “You” was named as the person of the year by Times magazine, denoting considerable increase of User Generated Content in the internet (Strokes, 2010).
(Heinonen, 2011, p.356) outlines the impact of empowered consumers on business, stating that empowered consumers result in higher responsibility and increased choice, which can be challenging.
One of the forms of social media are social network sites. Facebook is social network site, which has wide tools and according to business objectives can be used for different purposes.
According to Tuten and Solomon (2014, p.3) in 9 months Facebook had 100 million users, while for radio and TV it took 38 and 13 years respectively to reach 50 million users. In other words, If Facebook was a country it would be on 3rd place according to its population, following China and India (Divol, Edelman and Sarrazin, …show more content…
Tools that allows Facebook to engage users are ability to like, share and send personal messages.
Haydon, (2016) states that Facebook is relational rather than transactional, and makes references to Ebay and Amazon as examples of having transactional purpose.
However, according to (Tuten and Solomon, 2014) Facebook can act as a vehicle of social commerce. This implies that firm can us Facebook in order to assist online buying and selling of product/services. In other words, the concept of social commerce, includes reviews and ratings, deal site and data aggregators, and social shopping market (Tuten and Solomon, 2014).
Additionally, it has been recently announced, that Facebook is testing its new feature of incorporating buying function into Facebook page without going to merchant’s website (Bell, 2015).
Which implies that merge between Facebook and e-commerce will be blurred even