Social Commerce and Word of Mouth: Friend vs.
Strangers
Social Commerce and Word Of Mouth :Friends versus Strangers | The Impact of Peer Recommendations of Purchase Intent and Perceived Risk | Glenn PepitoMasters of Business Administration | | | | | |
“Social Media sites like Twitter, Facebook, Linkedin and YouTube are changing the way the world does business. I think this is in response to our desire to connect with others. Relationship Marketing is all about connecting with people first as human beings and then as customers later. For a real business relationship to work, both parties must receive value. If only one or neither does, that relationship won't continue for long.” -- Terry Brock, Marketing Coach and Syndicated Columnist “Nobody cares how much you know, until they know how much you care.” -- Theodore Roosevelt, 26th President of the USA and Adventurer
1.0 Introduction The internet users are now becoming more and more into social networks. According to Compete, Inc., the number of people, who joined social networks, increased by 109% from 2004-2006 and coupled with a 414% growth in usage. Majority of the users engage in social networks to meet new people (78%), to be entertained (47%), to learn (38%) and to influence others (23%). Transaction between social network members involves exchanges in resources, either material or information, trust, influence, etc. With this various processes going on, we focus on the intention of one member to influence another person. Networking involves making use of one’s chain of connections to make new friends, date, etc (Donath, 2004). In ecommerce, networking can be used by marketers to find potential customers. Companies have begun setting their eyes in the social media outlets to find a new way on conducting ecommerce. In this aspect, social networks are being set as a new platform for online selling and advertising, but what makes it different from the traditional online selling websites is that the consumers themselves are engaged in
“Social Media sites like Twitter, Facebook, Linkedin and YouTube are changing the way the world does business. I think this is in response to our desire to connect with others. Relationship Marketing is all about connecting with people first as human beings and then as customers later. For a real business relationship to work, both parties must receive value. If only one or neither does, that relationship won't continue for long.” -- Terry Brock, Marketing Coach and Syndicated Columnist “Nobody cares how much you know, until they know how much you care.” -- Theodore Roosevelt, 26th President of the USA and Adventurer
1.0 Introduction The internet users are now becoming more and more into social networks. According to Compete, Inc., the number of people, who joined social networks, increased by 109% from 2004-2006 and coupled with a 414% growth in usage. Majority of the users engage in social networks to meet new people (78%), to be entertained (47%), to learn (38%) and to influence others (23%). Transaction between social network members involves exchanges in resources, either material or information, trust, influence, etc. With this various processes going on, we focus on the intention of one member to influence another person. Networking involves making use of one’s chain of connections to make new friends, date, etc (Donath, 2004). In ecommerce, networking can be used by marketers to find potential customers. Companies have begun setting their eyes in the social media outlets to find a new way on conducting ecommerce. In this aspect, social networks are being set as a new platform for online selling and advertising, but what makes it different from the traditional online selling websites is that the consumers themselves are engaged in
References: 3. Everett Rogers(1995) Diffusion of Innovation : http://www.stanford.edu/class/symbsys205/Diffusion%20of%20Innovations.htm 4 5. Lee Hong Joo. Liu Fengkun. 2010. Use of Social Network to Enhance Collaboratove Filtering Performance: Expert Systems with applications: An Internationa Journal 6