E-Commerce Theories & Practices E-commerce on social media (Facebook) Topic: Impact of Social Influence in E-Commerce Decision Making Author: Young Ae Kim,2007 Summarized by: Fares Hussein Omar

Table of Content 1. Introduction 2. Research Objectives 3. Research Questions 4. Research Methodology 5. Research Analysis and Results 6 .Conclusion

1. Introduction 80% of Web shoppers have at some point left E-commerce websites without finding what they want. E-commerce companies are attempting recommender system (Decision Support System ) for customer decision making. 1- Browsing, searching, and buying a product on E-commerce websites is often a time consuming and frustrating task for Consumers ============ 2- is a computer-based information system that supports business or organizational decision-making activities

1. Introduction In past days research studies , found that consumers are far more likely to believe recommendations from people they know and trust. E-commerce provide , a person’s decision to buy and rating a product . In 2006, is the Staring point for web user who are interested in E-Commerce Some researchers have focused on the consumer networks that are formed through the direct and indirect interactions 1- Like, friends and family-members, better than recommender systems in E-commerce websites. 2- strongly influenced by his or her friends, and business partners, rather than strangers. However, online communities on the Web allow users to share their recommendations by rating others’ reviews . 3- Depending on the research by Hit wise , social network sites including Myspace and Facebook are driving an increasing the traffic of retail sites i.e., 6% of retail traffic in 2006), and are becoming a starting point for Web users who are interested in E-commerce. 4- (Read and rate reviews) between consumers to maximize the impact of direct marketing through social influence. And find target customers based on the preferences from previous customers.

2. Research Objectives The impact of social influence in various aspects of E-commerce. Describe how to exercise social influence on a customer’s decision making process. Technology for social network analysis (SNA) to leverage social influence in the E-commerce decision making . Discuss Research challenges.

3. Research Questions WHAT IS SOCIAL INFLUENCE ? A social network is a graph of relationships and interactions within a group of individuals, which often plays a fundamental role as a medium for the spread of information, ideas, influence among is members . Web based Social Network benefits : Chat Rooms . Help consumers for final purchase decisions. To reduce the risk of buying a new product. - To create social pressure for people to adopt product or service .

3. Research Questions WHAT ARE THE DECISION MAKING PROCESS IN E-COMMERCE ?

3. Research Questions TECHNOLOGIES NEEDED TO LEVERAGE SOCIAL INFLUENCE IN E-COMMERCE DECISION MAKING Identify Key Nodes : key nodes in social networks, various centrality measures have been used: Degree, Closeness, PageRank and HITS Extract Communities : How to extract a community or a social group in a large network has also been an important topic in SNA. To Predict Links and Trust Value : Algorithms for predicting unobserved link or trust value between social actors are commonly found in SNA, because a typical social network and a web of trust are too sparse. SNA :  is a strategy for investigating social structures through the use of network and graph theories.

4. Research Methodology A decision Making Process in E-commerce The author has used decision making process in E-commerce to explain to the buyer's how can easy to purchase any product you want and how is important to see the social influence ( writer reviewer , rate reviewer ) The used of Social Influence in the E-Commerce Decision Making Process E-commerce depends on capturing accurate data about social influence between customers like Web-based social communities. How to use this information to exercise influence on the decision - Need Recognition Decision 1 : To go or not to go an E-commerce website.

4. Research Methodology - Information Search & Evaluation Decision 2 : To buy or not to buy a product (which book to buy). Decision 3 : To rate a review or not. - Purchase Decision 4 : To buy at Amazon.com or elsewhere. Decision 5 : To buy or not to buy recommended products together. - After Purchase Evaluation Decision 6 : To write a review or not. Decision 7 : To rate a product or not. Social Network Analysis (SNA) : is a methodology for analysing patterns of relationships and interactions between social actors in order to discover the underlying social structure. And this techniques proposes to solve problems to identify : key nodes Extract Communities Predict link and Trust Value .

5. Research Analysis and Results - E-commerce has two type of information for the present Research : - User preferences information. - Social influence. - Social Recommender System to make personalized information: - Using product rating. - User preference Similarity. - Purchase History ( User Trust ). - E-commerce provides multiple benefits :- - First: Online Shoppers are provided a number of high quality and personalized reviews of a product from trusted sources to convince them to buy . - Second: A company producing a product may get customers direct and detailed response and be in a better position to predict market trends .

5. Research Analysis and Results - Third: An E-commerce website can identify opinion leaders with high influence and maximize the effectiveness of marketing based on a social network surrounding opinion leaders. - The Customer can make more than one decision. - E-commerce websites have much more potential to increase sales by supporting customers whole decision making base on social influence data captured from E-commerce interaction as well as customers’ transaction information :- - Need Recognition . - Information Search & Evaluation . - Purchase. - After Purchase Evaluation. - SNA Key Nodes technique playing a rule by showing information , ideas , and influence or bridging different communities which is use maximize social influence with social network.

6. Conclusion E-Commerce are support the potential customers decision making process by introducing personalized Web-based decision support systems such as recommender systems . Recommender Systems provide consumers with personalized recommendations based on their purchase history, past ratings, profile or interest . A person’s decision for buying product is influence by friends, business s partners rather than strangers. The Social Network playing the an important rule in online Market . E-Commerce support the relationship between the customers and companies such as e-mail.