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3.  Social commerce – A subset of electronic commerce that involves using social media, online media that supports social interaction and user contributions, to assist in the online buying and selling of products and services – The delivery of e-commerce activities and transactions through social networks and/or via Web 2.0 software Introduction 3

4.  “Social commerce” –Introduced by Yahoo! In Nov 2005 –Describe a set of online collaborative shopping tools  Shared pick lists, user ratings, and other user-generated content-sharing of online product information and advice  What is new? –Range of social commerce tools and opportunities are expanded –  link social media platforms to e-commerce platforms 4

5. Introduction  Two central activities –1. putting water-coolers next to tills  Helping people connect where they buy by adding and linking social media tools and content to e-commerce sites  E.g., Amazon – rate and review products –2. putting cash tills next to water-coolers  Helping people buy where they connect by embedding social media stores and storefronts to popular social media platforms  E.g., Best buy’s storefront in Facebook 5

6. Concept Local Merchant Social Commerce Service Provider Customer Register servicesbuy services Pay the price Give back the profits exclude a commission Use the services - Bargain price - Target: Late teens ~ mid thirties single women - Promote products easily 6

7. Role of social commerce 7

8. Why Social Commerce?  Business perspective –Social media marketing monetization  Helps marketers monetize and measure campaigns –e-Commerce sales optimization  Improve conversion rates and increase average order value for online retailers –Business model innovation  Creating new revenue streams by curating and extracting value from social media content 8

9. Why Social Commerce?  User perspective –Trust  Because social media content increases ‘source credibility’ of sales and marketing messages, making them more believable, persuasive and trustworthy to the user –Utility  By putting the social commerce tools at the disposition of customers, brand, businesses and retailers can enhance the online customer experience –Fun  In contrast early e-commerce was a solitary experience, people interacting with software  Social commerce helps make commerce social again –Social commerce can enhance the customer journey, from initial ‘need recognition’ and ‘product discovery’, through ‘product selection’ and ‘product referral’ 9

10. Types  1. Social Link 10

11. Types  2. Social Web 11

12. Types  3. Group purchase 12

13. Group purchase: Business model Social Shopping Region- based Seller Customer Limited time, The minimum personnel, More than half discount Providing buyer characteristics, Statistical information Social media Word of mouth effects Brokerage fees (Groupon & retailer would split) Cheap prices Impulsive, Fun consumption Ad, PR effects 13

14. Six Dimensions of Social Commerce  Dimension 1: Social Shopping –Allows people to share the act of online shopping together (synchronous shopping) –Adds emotion into the e-commerce mix –Enables real-time recommendations –Includes …  Group buying  Co-browsing  Group gifting  Ask-your-network  Social network storefronts  Social shopping portals 14

15. Social shopping samples 15

16. Six Dimensions of Social Commerce  Dimension 2: Rating & Reviews –Provide independent third-party evaluation of a product or service review, with an opportunity for viewers to contribute and discuss –What’s new?  Review syndication, contrast review (positive/negative), tagged reviews, video reviews, geo-tagged mobile reviews, … –Includes…  Customer ratings & reviews  Expert ratings & reviews  Sponsored reviews  Customer testimonials 16

17. Six Dimensions of Social Commerce  Dimension 3: Recommendations & Referrals –Promotes personal recommendations and referrals within online social circles, often rewarding referrers for their efforts –Sometimes integrated in social shopping portals –Can use syndication tool via Twitter and Facebook to share recommendations with friends, fans, and followers –Includes…  Share with your network  Referral programs  Social recommendations 17

18. Rating & reviews samples 18

19. Six Dimensions of Social Commerce  Dimension 4: Forums & Communities –Connect people with each other and to a business in a moderated and curated environment –Includes…  User forums  User galleries  Idea boards  Q&A forums  Brand communities 19

20. Six Dimensions of Social Commerce  Dimensions 5: SMO (Social Media Optimization) –Promoting and publicizing websites and website content through social media –Includes…  News feeds  Media sharing  Social media events  Link building 20

21.  A social commerce site launched in 2008  Known for the first social commerce  Group + Coupon = Groupon Successful s-commerce cases 21

22. Successful s-commerce cases  LivingSocial offers a new deal each day –LivingSocial sends email to its members who subscribe via email –Members have a chance to save 50-90%  The original purchasing member obtains a free offer if he recom mends three persons to purchase  LivingSocial helps the local consumers figure out where to spend their money 22

23. Comparison-Similarities LivingSocial VS Groupon  Similarities between LivingSocial and Groupon –Both Living Social and Groupon are coupon based company. –Both Living Social and Groupon are busy expanding to new cities. –Both Living Social and Groupon making good use of social features. –Both Living Social and Groupon’s websites use Facebook Connect to help people find deals according to the geography, then share these deals on Facebook or other social media. 23

24. Ticketmonster has everything at 50 percent off! 24

25.  Coupang –Group purchase website 25

27.  Mobile commerce is –Any business activity conducted over a wireless tele communications network or from mobile devices. –The buying and selling of goods and services throu gh wireless handheld devices such as cellular teleph ones and PDAs. –All activities related to a (potential) commercial tra nsaction conducted through communications netw orks that interface with wireless (or mobile) devices Introduction 27

28. Market drivers of m-commerce 28

29. The Mobile Commerce Landscape 29

30. Concept 30

31.  Mobile Devices –personal digital assistant (PDA) A handheld computer principally used for personal information manage ment –smartphone Internet-enabled cell phones that can support mobile applications –wireless mobile device Computing that connects a mobile device to a network or another comp uting device, anytime, anywhere Introduction 31

32. Introduction  Mobile technology is a broad category –Devices –Protocols –Infrastructures  Major characteristics: –Mobility –Reachability 32 Unique Attributes of M-commerce Ubiquity Convenience Accessibility Personalization Localization

33. Characteristics of M-Commerce Mobile Commerce Mobile Commerce Mobility Reachability Characteristics Value-added attributes Product and service Localization Product personalization Ubiquity enhancement Instant connectivity Convenience

34. Unique Features of M-commerce 34

35. Unique Features of M-commerce 35

36. Unique Features of M-commerce 36

37. Favoring Applications of M-commerce 37

38.  Google –Android  Google Android Market  Apple –Apple store  The App Store is a digital application distribution pl atform for iOS developed and maintained by Apple. M-commerce Application

39. M- commerce Entertainment Music Games Graphics Video Pornography Communications Short Messaging Multimedia Messaging Unified Messaging e-mail Chatrooms Video - conferencing Transactions Banking Broking Shopping Auctions Betting Booking & reservations Mobile wallet Mobile purse Information News City guides Directory Services Maps Traffic and weather Corporate information Market data M-commerce Application

40. Diversification of M-commerce Applications 40

41. Classes of M-commerce Applications

42. Challenges for M-commerce 42

43. Successful m-commerce cases 43