Chapter 7
The Web 2.0 Environment and Social Networks
Upon completion of this chapter, you will be able to:
1. Understand the Web 2.0
revolution, its characteristics and the context of social media.
2. Describe the fundamentals of
social commerce, its drivers and landscape.
3. Describe the major models of
social shopping.
4. Explain how advertising and
promotions are conducted in social networking environments.
5. Understand how market research
is conducted in social networking environments.
6. Describe how customer service,
customer support, and CRM can be facilitated by social networking.
7. Describe the major social
commerce activities that can be conducted within and by enterprises.
8. Define crowdsourcing and
describe its use in social commerce.
9. Describe the commercial
applications conducted in virtual worlds in general and in Second Life in
particular.
10. Review the social commerce
activities and relationship with e-entertainment and gaming.
11. Describe and discuss the major
implementation issues of social commerce including strategy, security, and ROI.
12. Understand the major risks,
concerns, and barriers of deploying social commerce applications.
Answers
to Pause/Break Section Review Questions
Section 7.1 Review
1. Differentiate Web 2.0 from the traditional
Web.
Important features
of Web 2.0 that are related to social commerce are the technology’s dynamic
content, rich user experiences, metadata, scalability, open source basis, and
user’s freedom.
2. List five major characteristics of Web 2.0
and briefly discuss them.
These characteristics are presented in Online
File W1.3.
3. What is user-generated content? Why is it
an important concept?
User-generated
content is created by end-users. It
allows the users to express themselves, but also generates interest and traffic
that a business can use.
4. Why is Web 2.0 considered a revolution?
Web 2.0 tools (social software) and social
networks are changing the way people communicate, collaborate, work, and live;
the change is very rapid and significant, so we can classify it as a
revolution.
5. Define social media, social marketing,
social capital, and social media marketing.
· Social media – The online platforms and tools
that people use to share opinions, experiences, insights, perceptions, and
various media, including photos, videos, and music, with each other
· Social marketing – A combination of social
policy and marketing practices to achieve a set of social behavioral goals
within a target audience
· Social capital – A sociological concept that
refers to connections within and between social networks. The core idea is that
social networks have value. Just as physical capital or human capital can
increase productivity (both individual and collective), so can social contacts
affect the productivity of individuals and groups.
· Social media marketing – A term that
describes use of social media platforms such as networks, online communities,
blogs, wikis, or any other online collaborative media for marketing, market
research, sales, CRM, and customer service. It may incorporate ideas and
concepts from social capital, Web 2.0, social media, and social marketing.
6. Distinguish between social networking and
social network sites.
The difference is the activity (social
networking) versus the location (social networking sites).
7. List the major social networking spaces.
These spaces are
listed with examples on page 303.
8. Describe the social graph.
A term coined by Mark Zuckerberg
of Facebook, which originally referred to the social network of relationships
between users of the social networking service provided by Facebook. The idea
was for Facebook to benefit from the social graph by taking advantage of the relationships
between individuals that Facebook provides, to offer a richer online
experience. This definition was expanded to refer to a social graph of all
Internet users.
Section 7.2 Review
1. Define social commerce.
The delivery of e-commerce activities and transactions
through social networks and/or via Web 2.0 software.
2. List some major origins
of social commerce (per Exhibit 7.2).
Origins are detailed in
Exhibit 7.2. Examples include the growth
of social networks, e-commerce and marketing.
3. List the major blocks
in the landscape of social commerce.
Representative risk factors are: difficulties in
justification, security and privacy issues, possibilities of fraud, integration
with existing IT systems, legal concerns, quality of UGC, and a waste of time
by community members.
4. List five benefits of
social commerce to the consumer and five to vendors.
Many benefits are listed
in Exhibit 7.4.
5. Describe mobile social
commerce.
Members converse and connect with one another using cell
phones or other mobile devices.
Section 7.3 Review
1. Define social shopping
and describe its drivers.
A method of e-commerce where shoppers’ friends become
involved in the shopping experience. Social shopping attempts to use technology
to mimic the social interactions found in physical malls and stores.
2. List the major benefits
of social shopping.
·
You
can discover products/services you never knew existed (e.g., see this
next.com).
·
You
can interact with vendor (brand) representatives (e.g., feature available at
stylehive.com/blog).
·
Your
confidence and trust in online shopping increases.
·
You
can get super deals via group buying, daily specials, and more. Join Groupon
just to see the super deals.
·
You
can exchange shopping tips with your friends, fans, and others.
·
You
can build and share wish lists.
·
You
can have camaraderie shopping with peers with similar tastes.
·
You
can learn from others’ experience.
·
You
can get simplified comparisons, even in real-time.
3. List the major models
of social shopping. Briefly describe their function.
·
Social
recommendations, ratings and reviews, comparisons, and conversations
·
Group
buying and shopping together
·
Deal
purchases (flash sales), such as daily deals
·
Shopping
communities and clubs
·
Peer-to-peer
models (e.g., money lending)
·
Location-based
shopping (presented in Section 7.4)
·
F-commerce;
shopping at Facebook (see this chapter’s closing case)
·
Shopping
with Twitter
·
Other
innovative models
4. Describe ratings,
reviews, and recommendations.
This is user generated
content about a product or service.
5. How are ratings and
reviews being conducted?
In many cases, they are entered online by consumers.
6. Relate recommendations
to social reviews and ratings.
These are closely related
to ratings and reviews and are sometimes integrated with them.
7. Describe social
marketplaces and direct sales.
Social marketplace – An
online community that harnesses the power of one’s social networks for the
introduction, buying, and selling of products, services, and resources,
including one’s own creations. Also may refer to a structure that resembles a
social network but is focused on individual members.
This marketplace allows for direct sales, leaving out a
distributor.
8. Define group buying. How
does it work with flash deals? (Hint: Groupon.)
A group must choose to
purchase a volume of goods/services that is enough to incent the seller to sell
at a reduced price.
9. Define social
communities and social clubs as they relate to marketing. How do they work?
These are affinity groups, and they can be marketed to as
a niche. They may participate in group
buys, or may represent a specialized market.
10. Describe Kaboodle.
Kaboodle is the largest
social community. It is a free service that lets users collect information from
the Web and store it on a Kaboodle list that can be shared with others.
11. Define social
marketplaces. What is going on there?
An online community that harnesses the power of one’s
social networks for the introduction, buying, and selling of products,
services, and resources, including one’s own creations. Also may refer to a
structure that resembles a social network but is focused on individual members.
12. What is the future of
social shopping?
Opinions will vary, but
many may focus on new technologies or integrations of existing technologies/services.
Section 7.4 Review
1. Describe advertisement
in social commerce.
Advertisement in social sites is an attempt to capitalize
on the potential customer base. These
ads help to provide revenue to the social sites.
2. Define social ads and
social apps.
·
Social
ads – Advertisement placed in
paid-for media space on social media platforms such as Facebook, YouTube, and
Twitter, as well as on blogs and forums
·
Social
apps – Branded online
applications that support social interactions and user contributions
3. Define viral marketing.
Word-of-mouth (WOM) method by which customers promote a
product (service) by telling others (frequently their friends) about it.
4. Describe viral
blogging.
Viral (word-of-mouth)
marketing done by bloggers.
5. Define geolocation and
geosocial networks.
·
Geolocation
– The identification of the real-world geographic location
of an Internet-connected computer, mobile device, Web site visitor, or other
·
Geosocial
networking – A type of social
networking in which geographic services and capabilities such as geocoding and
geotagging are used to enable additional social dynamics
6. How does location-based
advertising work?
LBS reports a user’s
position using GPS. This data is then
applied to listings on advertisers near that location. Adds for businesses near the user are then
provided to the user.
7. Describe how Foursquare
works.
Foursquare can find your location and tell your friends
where they can find you.
8. List some concerns of
LBS advertising.
Some concerns include
privacy concerns, especially if users have not opted-in.
9. Describe viral videos.
Any video that is passed electronically, from person to
person, regardless of its content.
10. How is Twitter used
for advertisement?
It is generally used to
create word-of-month about a product or service.
11. Describe mobile
advertisement.
Advertisements on cell phones and other mobile devices
Section 7.5
Review
1. How can a social
network be used to conduct market research?
It allows the marketer to directly access feedback and
perceptions of users from a social networking site.
2. How is conversational
marketing used for market research?
Using Web 2.0 tools,
marketers solicit feedback from users.
3. Describe social
analytics.
Gathering and analyzing data from social networking
sites.
4. Define and describe
social intelligence.
Social intelligence refers
to the ability of humans to interact with each other effectively.
5. What is data, text, and
Web mining used for?
These techniques are used to find partners in customer
perceptions.
6. What can be mined in
social media?
A variety of types of
customer perceptions.
7. How is Facebook used
for market research?
Examples include evaluating feedback, marketing mixes,
test marketing and surveys.
8. How is Twitter used for
market research?
Examples include evaluating posts, finding opinion makers
and evaluating trends.
Section 7.6
Review
1. Define social customers
and describe their properties.
Members of social networks who do social shopping and
understand their rights and how to use the wisdom and power of crowdsourcing
and communities to their benefit.
2. Why and how are
customers empowered by social networks?
It gives customers access
to a large amounts of information and unbiased reviews.
3. What are the needs of
social customers?
Social customers need to feel empowered, and need to be
able to contribute their opinions.
4. How are these needs
fulfilled?
Sites or firms associated
with social networks provide access to information and the ability to
contribute.
5. Describe social CRM;
how does it differ from traditional CRM?
Social CRM is a customer engagement strategy in support
of companies’ defined goals that attempts to optimize the customer experience. Generally
social tools are used, allowing for interaction between both the customer and
company as well as between customers.
Traditional CRM focuses primarily on customer-company interactions and
stores only customer information.
Section 7.7
Review
1. Define a business
network and an enterprise social network.
·
Business
social network – A social network whose
primary objective is to facilitate business connections and activities
·
Enterprise social network – A
business network focused on a single company
2. List various categories
of enterprise applications in social networks.
·
To
build better customer and employee relationships
·
To
increase revenue
·
To
facilitate recruiting and retention
·
To
increase business and marketing opportunities
·
To
build and nurture a community
·
To
reduce operation and travel costs
·
To
improve knowledge management (increase speed and access to knowledge)
·
To
gain expert advice (internally and externally)
·
To
improve knowledge management
·
To
reduce communication and improve collaboration
3. What are the benefits
of enterprise social networking for companies? For employees?
Companies are able to distribute information and build a
corporate culture. Employees are able to
learn and interact with their colleagues.
4. Define public
business-oriented network. Provide an example.
A social network that is
open to the public, but focused on business activities. LinkedIn is an example.
5.
What is an entrepreneur network?
A business social network focused on entrepreneurial
activities.
6. What are the major
features of effective enterprise social networking?
These features are listed
on pages 342 and 343.
7. Describe IBM’s
SocialBlue.
IBM’s SocialBlue is an internal social networking site
that gives IBM employees a rich connection to the people they work with on both
a personal and a professional level.
8. List all the ways that
an organization can interface with social networking.
Companies
can use social tools in a wide variety of ways.
These are summarized on pages 345 and 346.
9. List social networking
applications in HRM.
Social networking applications can be used within HRM to
assist in finding and recruiting workers, as well as training them.
10. How can social
networking facilitate problem solving?
The systems can connect
individuals within an organization, making it easier for them to work together.
11. Relate social
networking to knowledge management.
Social tools can be used to collect, store and deliver
knowledge needed within an organization.
Section 7.8
Review
1. Define crowdsourcing;
provide four examples.
The act of outsourcing tasks, traditionally performed by
an employee or contractor, to an undefined, large group of people or community
(a “crowd”), through an open call. Examples of applications include using
groups to create content, solve problems, or even do research and development.
2. List Howe’s four
categories of applications.
1. Collective intelligence
2. Crowd creation
3. Crowd voting
4. Crowd supporting and
funding
3. What are the major
benefits of crowdsourcing? (List five to seven benefits.)
·
Problems
can be explored at comparatively little cost, and often very quickly.
·
Payment
is by results or even omitted.
·
The
organization can tap a wider range of talent than might be present in its own organization.
·
By
listening to the crowd, organizations gain firsthand insight on their
customers’ desires.
·
The
community may feel a brand-building kinship with the crowdsourcing organization,
which is the result of an earned sense of ownership through contribution and
collaboration.
·
Crowdsourcing
taps into the global world of ideas, helping companies work through a rapid
design process.
4. Describe the
crowdsourcing process.
1. Identify the issue
(problem) you want to investigate or solve.
2. Identify the target
crowd.
3. Broadcast to the
unknown crowd.
4. Engage the crowd in an
innovative and creative process (e.g., idea generation).
5. User-generated content
is then submitted. (This may include submission of opinions, voting, new ideas,
suggestions, and so forth).
6. Evaluate the submitted
material—by the initiator of the request or by the crowd (voting on the
submitted content or on a few finalists selected by the company).
5. List some issues and
concerns regarding crowdsourcing implementation.
Many concerns exist including the role of individuals within
the crowd and the overall reliability of answers generated. The text lists several other issues on page
355.
6. Why is Wikipedia
considered crowdsourcing?
Wikipedia is crowdsourcing
because it relies on the public to help create and edit its entries.
Section 7.9
Review
1. What are the features
of virtual worlds that businesses can make use of in deploying their virtual
world applications?
·
Shared
space
·
3-D
visualization (graphical user interface)
·
Immediacy
·
Interactivity
·
Persistence
·
Socialization
and community formation
2. From a business
application perspective, virtual worlds can be visualized as a multidimensional
space. Briefly describe different dimensions of virtual world space.
·
Social
space
·
Entertainment
space
·
Transaction
space
·
Experimental/demonstration
space
·
Collaboration
space
·
Smart
agents space
·
Fantasy
space
3. Outline a few examples
of business applications of virtual worlds.
The text outlines several applications beginning on page
358. Some examples include storefronts,
advertising and content creation.
4. Discuss different ways
of making real or virtual money in virtual worlds (see also Chapters 1 and 2).
A variety of methods exist and include direct sales of
tangible goods, direct sales of intangible goods, service subscriptions, and
fees for services.
5. What kind of
educational and training activities do virtual worlds such as Second Life
support?
·
Simulation
·
Distance
Learning
·
Class
Meetings
·
Exploration
·
Visualization
·
Imaginative
Scenarios
·
Information
Dissemination
6. What are the major
concerns and limitations of virtual worlds?
·
Slow
adoption
·
Technically
difficult to develop in
·
Fraud
and security issues
·
Performance
issues
Section 7.10
Review
1. Relate entertainment to
social commerce.
Entertainment can be used as a driver for commerce, or
paying for entertainment can be commerce itself.
2. Describe Mixi, Last.fm,
and Pandora.
All of these services provide online music streaming.
3. Describe eFan, Hulu,
Moontoast, and Funny or Die.
All of these services provide streaming of video content.
4. Relate the iPhone to
entertainment on the Web.
iPhones provide easy access to web-content without a
computer.
5. Define social games;
what types do you recognize?
A video game played in a social network. Students will recognize a variety of games.
6. Describe social games
in social networks.
Some social games are available within social
networks. These games help to draw users
back to the network and allow users to play with others.
7. What are some of the
business (commerce) aspects of social games?
These games can either provide direct revenue to the
developer/network or provide a draw to the network.
Section 7.11
Review
1. List some major
implementation issues.
Implementation can be complex. Issues may include technical challenges,
marketing/adoption challenges and service/support challenges.
2. List some difficulties
in SC justification.
Some examples include difficulty in quantifying the
market and potential benefits, as well as the threat of completion in a fast-moving
area.
3. Solis’s Compass
includes four components. List two in each category and briefly describe them
(consult Online File W7.6).
The compass includes emotions, channels, platforms, and
players.
·
Emotions
o Empathy – understanding
another
o
Empowerment – providing authority
·
Channels
o Syndication – one to many
o
Aggregation – many to one
·
Platforms
o Mobile – all mobile apps
o
Blogs – provide quick information
·
Players
o Advocates/stakeholders –
hold a stake in the brand
o
Bloggers/market makers – help shape brand perception
4. List and briefly
describe three risk factors (consult Online File W 7.7).
·
User
comments may not be positive and this cannot be controlled
·
A
small number of users may become a huge support draw
·
A
small group may control the larger group
5. List the major elements
in a successful implementation strategy for social commerce.
1. Learn and understand the environment inside and
outside the organization.
2. Experiment with a small-scale project so you can
observe and learn.
3. Assess the results of the experiment.
4. Develop or abandon the project.
Answers
to EC Application Case Questions
EC Application Case 7.1: REVENUE SOURCES AT YOUTUBE
Questions
1. Enter
linkedin.com and explore. Why do you think the site is so successful?
Student opinions will vary, but should be based on the
robust number of features available.
2. What features are
related to recruiting and job finding?
Several exist including profiles indicating interest, and
the ability to potentially contact out-of-network prospects or employers.
3. How does
“LinkedIn Answers” work? Try to use it by posting a query. Report the results.
Student experiences will vary based on the type of
question asked.
4. Conduct an
investigation to find the revenue model of the company.
Student responses will vary. Major revenue appears to come from
advertisements, partnerships and subscription sales.
5. Several companies
have attempted to clone LinkedIn with little success. Why do you think LinkedIn
is dominating?
Student opinions will vary, but it could be the network effect of
LinkedIn’s large user base.
EC Application Case 7.2: WIKIPEDIA
Questions
1. Wikipedia is a nonprofit
organization. Search and find its revenue model.
Currently donations are the major model.
2. What drives Wikipedia?
The company desires to provide freely-available knowledge.
3. Discuss the issue of
quality—the problems and solutions.
The issue of quality relates to crowdsourcing content – while the
content is diverse and free, it is limited by the ability of contributors. One solution is the editorial board.
4. Research the problem of
copyright.
Student research will vary, but the primary issue is the posting or use
of content that does not belong to the poster.
5. Research the relationship
between Wikipedia and Wikia.
Wikia is the wiki software used by Wikipedia..
EC Application Case 7.3: REVENUE SOURCES AT YOUTUBE
Questions
1. List the different advertising
models on YouTube.
Examples include text ads, in-video ads, and fees for
brand-based content.
2. List the success factors
from these cases.
Factors include the size of the user base, the ability to
market to specific groups, and the social networks involved.
3. What
are the benefits for the advertisers?
They are able to
tap the customers using the system and target advertising.
Answers to Discussion Questions
1. How do business-oriented networks and
enterprise social networks differ.
The
difference is in their focus, based on a business area or specific company and
their openness.
2. Discuss the potential business use of
Twitter (by major categories).
Twitter can be used to both distribute information and
create word-of-mouth about a business, product or service.
3. What are some of the risks companies
may face if they decide to use public social networks?
Student
examples will vary, but will focus on the public nature of these groups and the
difficulty in controlling what is said.
4. Discuss the role of crowdsourcing in
idea generation and market research.
Crowdsourcing
can be used to help identify new trends, needs and customer perceptions. These new ideas can then be translated into
products and services.
5. How can marketers use social networks
for viral marketing?
Marketers can take advantage of the
user-base of a social networking system to help easily spread viral marketing
items.
6. Why are advertisers so interested in
social networks?
They
represent an emerging new marketing channel.
7. Compare group buying to shopping
together.
Group buying requires the group to
make the same selection, while shopping together only requires the group to be
in the same location.
8. Identify and discuss Facebook’s revenue
model.
The
model is based on secondary income streams, like advertising.
9. Corporate social networking: Booster or
time-waster? What are the pitfalls of enterprise social networking? Discuss.
Student perceptions and responses
will vary. Students will likely discuss
the benefits of additional exposure, but will also focus on costs and possible
negative consequences.
10. Review any two Socialcast user case
studies at socialcast.com/resources/customer_stories.html and discuss the following:
a. What benefits the companies that
embraced Socialcast have realized.
b. Lessons learned from these cases.
Student perceptions and responses
will vary based on who they select.
11. Review the features of Socialtext
(socialtext.com). Discuss how you would make use of this platform in a small
enterprise in retail, manufacturing, or financial services.
Student perceptions and responses will
vary based on the potential application.
12. Enter youtubetrafficsystem.net. Watch
the video case “How Sam Got to the Top” (video 3). Discuss how Sam drove 3.5
million viewers to watch his fitness video.
Student perceptions and responses
will vary based on their opinions of the tactics used.
13. What real value do virtual worlds present
to commercial users and businesses?
Social
worlds provide both a new market location for businesses, as well as a new
market category of goods and services.
14. Enter thesocialcustomer.com. Pick five
posts and discuss each briefly.
Answers will vary based on topics
selected.
15. How can crowdsourcing reduce risks to
merchants?
It
can allow merchants to more easily test market goods and advertising to make
the optimum selection.
Topics for Class Discussion and Debates
1.
The crowdsourcing model works well with designers like this: (1) Come up with
something that you need designing for. (2) Turn it into a competition between
amateur and professional designers. (3) Decide on a winner, either by vote or
executive decision. This is all at little to no cost for the person looking for
the design. Now, think about the future of the graphic industry in general.
What will be the fate of large design firms that are competing for the business
of high-profile clients when the clients are now paying tiny, one-time fees to
amateur designers? Is basing your business on crowdsourcing a viable model?
Discuss.
Student opinions will vary. The crowdsourcing model hurts existing firms,
but large-scale crowdsourcing may not be viable.
2.
Discuss the business value of social networking. As a start, read Tom
Davenport’s “Where’s the ‘Working’ in Social Networks”
(blogs.harvardbusiness.org/davenport/2007/10/wheres_the_working_in_social_n.html)
and Brett Bonfield’s “Should Your Organization Use Social Networking Sites”
(techsoup.org/learningcenter/internet/page7935.cfm).
Student opinions will vary. The discussion will center on the benefits of
social networking versus the cost of time to the business.
3.
What are the potential major legal issues that business applications in virtual
worlds might encounter? Refer to online resources, including the Virtual World
Law blog virtualworldlaw.com.
Student opinions will vary. New issues are being identified, but one of
the largest is jurisdiction.
4.
Idea generation by the employees or customers using crowdsourcing is becoming
popular. Some say it is only an electronic suggestion box. Others disagree.
Discuss.
Student opinions will vary. The debate will focus on how helpful
crowdsourcing can be, and if it can be used to develop an idea fully.
5.
Despite the promise of virtual worlds and the increased computing and graphic
capabilities of personal computers, high-speed Internet access, and corporate
interest in exploiting these worlds, why have virtual worlds not taken off,
been adopted, or used widely. (Compare for example with Facebook, Twitter,
blogs, or wikis.) What aspects hinder their adoption? What are the critical
success factors? Discuss.
Student opinions will vary based on their perceptions. Some issues with adoption include the
learning curve and benefits to the user.
6.
Read the Bernoff and Schadler article “Empowered: In a World Where One Angry
Tweet Can Torpedo a Brand, Corporations Need to Unleash Their Employees to
Fight Back.” Then, discuss the top strategies employed by Best Buy including
Twelpforce. Also discuss how other companies empower employees.
Student opinions will vary. The issue centers on corporate control of messaging
versus the ablity to enlist employees to help.
7.
Debate: Should companies build in-house social networks for external activities
(e.g., marketing, CRM) or use existing public social networks?
Student opinions will vary. The debate will focus on the issues of
control versus network size.
8.
Debate: Some research suggests that the use of public social networks by
employees can be good for a business because employees develop relationships
and share information, which increases productivity and innovation. Others say
it is a waste of time and ban the use of Facebook, YouTube, and other such
sites.
Student opinions will vary. The discussion will
center on the benefits of social networking versus the cost of time to the
business.
9.
Debate: Do Facebook privacy concerns really require government regulations?
(Consult Prince 2010.)
Student opinions will vary based on perceptions of required
privacy.
10.
Debate the pros and cons of the following: In order to control content and
employee time, Manchester United and other companies do not allow employees to
generate any content on its private social network site nor on public ones
(e.g., Facebook).
Student opinions will vary. The discussion will center on the benefits of
social networking versus the cost of time to the business.
Internet Exercises
(Note: URLs may change over time; please
check the Internet Exercises on the Turban Web site for possible updates: www.pearsonhighered.com/turban.)
1. Enter the Web site of a
social network service (e.g., myspace.com or facebook.com). Build a homepage. Add
a chat room and a message board to your site using the free tools provided.
Describe the other capabilities available. Make at least five new friends.
Student experiences and perceptions will vary based on
the service selected.
2. Enter vivapets.com and
dogster.com and compare their offerings.
Student reports will vary – both sites sell toys for
pets.
3. Enter twitter.com,
facebook.com, and linkedin.com and list the major sources of revenue for each.
Student reports will vary. All appear to be supported by
secondary advertising and partnership revenue.
4. Enter xing.com and
linkedin.com and compare their functionalities (capabilities). Also, enter
ryze.com and view the video tutorial on networking. Compare Ryze’s capabilities
with those of LinkedIn.com. Write a report.
Student reports will vary based on what features are
selected.
5. Enter chicstar.com. Why
is it an online entertainment service? What are the benefits to viewers?
Compare this site to starz.com.
Student experiences and perceptions will vary.
6. Enter advertising.com.
Find the innovative/scientific methods that are offered and related to social
commerce.
Student experiences and perceptions will vary. Several articles are available.
7. Enter the
paulgillin.com blog and find information related to enterprise applications of
social commerce technologies. Write a report.
Student reports will vary based on the content selected.
8. Enter pandora.com. Find
out how you can create and share music with friends. Why is this a social
commerce application?
Student experiences and perceptions will vary. The system is social since it allows sharing.
9. Enter webkinz.com and
compare its activities to that of facebook.com. Enter nielsen-online.com and
find the average stay time on both social network sites.
Student findings will vary based on the time of the
review.
10. Enter smartmobs.com.
Go to the blogroll. Find three blogs related to social commerce, and summarize
their major features.
Student experiences and perceptions will vary based on
which blogs are selected.
11. Enter mashable.com and
review the latest news regarding social networks and network strategy. Right a
report.
Student reports will vary based on when the review is
completed.
12. Enter usocial.com and
softcity.com. Identify all the methods/tools they offer to increase social
engagement/marketing and advertising. Write a report.
Student reports will vary based on the features compared.
13. Enter comblu.com.
Explore its products and discuss the role of a social marketing dashboard.
Student experiences and perceptions will vary. Comblu is
a social marketing company.
14. Enter secondlife.com
and find the commercial activities of the following avatars: Fizik Baskerville,
Craig Altman, Shaun Altman, FlipperPA Peregrine, and Anshe Chung. Describe
briefly what they represent.
Student experiences and perceptions will vary. Results will be based on when the report is
completed.
15. Enter
crmbuyer.com/edpick/69895.html and identify five strategies suggested for
improved customer service.
Student reports will vary. Trust and customer care are featured.
16. Enter thisnext.com. What
are the features of the site. What do you like? Dislike?
Student experiences and perceptions will vary.
17. Enter
en.wikipedia.org/wiki/Mixi and look at mixi’s features that are similar to
those offered by other social networks. Relate it to online entertainment.
Student reports will vary based on which networks are
compared.
18. Enter ning.com. Explore
its capabilities and discuss how it is related to social network sites.
Student experiences and perceptions will vary. The site allows you to create your own
network.
19. Enter fordstory.com.
Find what is going on there. Also, watch the Fiesta video. Write a report.
Student reports will vary based on their perceptions of
the products.
20. Enter bazaarvoice.com.
Summarize its major services. Examine SocialConnect and TweetConnect in
particular.
Student experiences and perceptions will vary.
21. Enter blippy.com and
find the services it provides to customers.
Student reports will vary, services offered are currently
expanding.
22. Enter ehow.com and
find “How to Use Twitter to Conduct Market Research.” Follow instructions on a topic
related to social commerce. Write a report.
Student reports will vary based on individual research.
Team Assignments and Role Playing
1. Assignment for the Opening Case
Read the opening case, find some new material
about Starbucks and social commerce and answer the following questions:
a.
Why is Starbucks putting such an emphasis on social
media?
It views it as a
primary advertising method for its target market.
b.
List the specific social networking
activities done by the company.
Examples include
Facebook, LinkedIn, Twitter, YouTube/Flicker and Foursquare.
c.
What are the differences and similarities
between Starbucks’ own social network and its pages on Facebook, LinkedIn, and
other social networks?
It provides
services specific to its business and its content. These services are similar to services on
other networks, but the Starbucks’ social network lacks many of the features
other provide.
d.
Why did Starbucks fail with Foursquare?
The company
did not understand or utilize the benefits of the system.
e. How are ideas generated at My Starbucks
Idea? By whom?
It allows suggestions from customers.
f. What did you learn about social media
strategy?
Student responses
will vary.
2. Each group is assigned to a social
network that has business activities on it (e.g., LinkedIn, Xing, Facebook,
Second Life, etc.). Each group will then register with hellotxt.com to find out
what is going on in the site with regard to recent business activities. Write a
report and make a class presentation. With Hello TXT, you log on to the site
and enter your text message into the dashboard. You then select the sites you
want to update with your new status message, and Hello TXT does the rest,
reaching out to your various pages to add your new status message. It is a
great centralized way to keep all your various profiles as up-to-date as
possible, and it is designed to update your LinkedIn status by answering the
question “What are you working on?”
Student reports will vary based on the network assigned.
3.
Facebook is increasingly offering marketing tools (e.g., Open Graph, Social
Plug-ins). Identify all the tools offered. Each group concentrates on the
implication in one of the following areas: advertising and search engine
optimization (SEO), shopping, market research, customer service, CRM, and
others. Make a class presentation.
Student reports will vary based on the time of the report
and the tools selected.
4.
Your group signs in to secondlife.com and creates an avatar(s). Each member is
assigned to explore a certain business area (e.g., virtual real estate,
educational activities, tourism). Make sure the avatar interacts with other
people’s avatars. Write a report.
Student reports will vary based on the research conducted.
5.
Each group adopts one or two of the following companies that actively advertise
and engage on Facebook and Twitter: Coca-Cola, Starbucks, Ford, Pepsi, Disney, Victoria’s
Secret, iTunes, Toyota, Sony, or P&G. Find what advertisement methods they
use and how they do their campaigns.
Student reports will vary based on the company profiled.
6.
Watch the tutorial video “Doing Business in Second Life” (blip.tv/file/24281),
and answer:
a.
What can you do commercially on SL?
b.
How much will it cost you?
c.
How can you attract people to your SL page?
d.
What can you do there that you cannot do on Facebook or Twitter?
e.
What are the major benefits to companies? Consumers?
f.
What is the downside?
g.
What are IBM, Dell, and Coke doing in SL?
Student reports will vary.
This is an interesting video with details that students will respond to
differently.
7.
Enter ehow.com/how_4630584_advertise-secondlife-event.html and read the article
“How to Advertise a ‘Second Life’ Event.” Follow the instructions and advertise
a restaurant of your choice. Write a report. Relate your work to the following
SL features: affiliate program, Second Life Marketplace, blogs, and forums. Also
look at secondlife.com/shop/learn. Write a report.
Student reports will vary based on the research conducted.
8.
Have the group research the issue of “How Levi’s and Facebook Prompt Your
Friends to Improve Your Buying Experience.” Start with
web-strategist.com/blog/2010/04/30/social-commerce-breakdownhow-levis-and-facebook-prompt-your-friends-toget-
you-to-buy.
Find out why Levi’s is considered to be at level 6 or 7 while most brands are
still at level 1. See also store.levi.com.
Student reports will vary based on the research conducted. In general, the idea is that some brands
allow for and encourage input from a social circle to help a customer make an
“optimal” buying decision.
9.
The class will investigate group buying in China
and India.
What is the prospect for group buying in Asia?
(Start with Madden’s article “China Pioneers Group Buying Discounts Without
Groupon” at joomabc. com/Web site-clone/news/item/45-china-pioneersgroup- buying-discounts-without-groupon).
Student reports will vary based on the research conducted.
Closing Case: F-COMMERCE: BUSINESS
ACTIVITIES ON FACEBOOK
1. Why
conduct business on Facebook?
The site has a very large user-base.
2. List five major
advertising options on Facebook.
·
Facebook
connect
·
Facebook
“like” button
·
Facebook
Ads
·
Facebook
Page
·
Facebook
Aps
3. What is the
purpose of the “Like” button?
To signal interest in a piece of content.
4. How are product
recommendations generated on Facebook?
Generally through recommendations generated and shared by
users, or through partners like Amazon.
5. How can
person-to-person transactions be conducted on Facebook?
This is generally through the Facebook Marketplace.
6. What tools are
provided by Facebook to facilitate selling and buying?
·
Facebook credit
·
Open graph and social graph
·
Product recommendations
·
Merchant shopping aids
·
Facebook Places (for mobile)
·
Facebook Deals
·
End-to-end Facebook store within a fan page
·
Social bar
·
Docs.com
·
“Presence” location-based data
·
Sponsored stories
7. What are
“Sponsored Stories”? Who benefits? How?
This is content that is sponsored by an advertiser that
may help to push a product or service.
8. What are some of
the implementation issues?
There are several issues and student selection will vary.
9. Enter
donnygamble.com/social-commerce and read the article “Social Commerce: How
Facebook Will Change Online Shopping Forever.” Explain the blogger’s opinion.
Student perceptions will vary.
10. There are
several hundreds of travel apps on Facebook. Identify some of them.
Student selection will vary.
11. Find “Where I’ve
Been” and discuss its popularity.
Student responses will vary.
Practice Test
1) A major objective of Web 2.0 is to enhance creativity, information sharing,
and collaboration.
Answer: TRUE
2) One of the most significant differences between Web 2.0 and the traditional
Web is the greater collaboration among Internet users and other users, content
providers, and enterprises.
Answer: TRUE
3) Lightweight programming techniques and tools letting nearly anyone act
as a Web site developer is a representative characteristic of Web 2.0.
Answer: TRUE
4) A criticism of Web 2.0 is the inability to create new business
models.
Answer: FALSE
5) One of the major phenomena of Web 2.0 is the emergence and rise of e-auctions.
Answer: FALSE
6) A key feature of social media is that users control and use the
media, often at little or no cost.
Answer: TRUE
7) Social media is limited to text and images.
Answer: FALSE
8) Companies that introduce a significant change in their industries,
thus causing disruption in business operations, are referred to as disruptors.
Answer: TRUE
9) Disruption did not occur in the real estate brokerage industry.
Answer: FALSE
10) Most social networks, such as LinkedIn and Weibo, are private communities.
Answer: FALSE
11) Social network analysis provides both a visual and a mathematical analysis
of relationships where the nodes in the network are the people or groups, and
the links show relationships between nodes.
Answer: TRUE
12) Interactions within mobile social networks are currently limited to
exchanging simple text messages on a one-to-one basis.
Answer: FALSE
13) Business-oriented social networks are owned and operated within one
enterprise, and their members are usually employees of the enterprise.
Answer: FALSE
14) Walmart's corporate social network is a major success.
Answer: FALSE
15) According to an InformationWeek survey of business technology experts,
wikis are the most useful Web 2.0 tools in Enterprise 2.0.
Answer: FALSE
16) Web 2.0 applications enable segmented advertising.
Answer: TRUE
17) Viral blogging is viral marketing done by bloggers.
Answer: TRUE
18) Apple and Google undertook a formal merger to offer iPhone capabilities,
such as delivering Google services through Apple hardware.
Answer: FALSE
19) Choppy connectivity is one of four trends that may slow EC and Web 3.0
and even cripple the Internet.
Answer: TRUE
20) Which of the following is not an interaction element in a virtual community?
A) bulletin boards
B) private mailboxes
C) expert advice
D) e-book
21) Which of the following types of virtual communities just
facilitates the exchange of information on a topic of mutual interest and does
not support trading?
A) virtual worlds
B) purpose or interest
C) transaction and other business
activities
D) relations or practices
Answer: D
22) Which of the following refers to the mapping and measuring of relationships
and flows between people, groups, organizations, animals, computers or other information- or knowledge-processing entities?
A) social network analysis
B) virtual analysis
C) social network theory
D) Internet community theory
23) Which of the following connects a circle of Weblogs with a common focus or theme?
A) friend block
B) blogring
C) cyberloop
D) cybersphere
24) A type of mobile social networking where the company does not have a relationship with a
wireless carrier is:
A) off-deck.
B) public space.
C) non-binding.
D) enterprise driven.
25) A(n) ________ is defined as a group of people that have some kind of commercial or business relationship such as the relationships between
sellers and buyers, buyers among themselves, buyers and suppliers, and colleagues
and other colleagues.
A) affinity portal
B) Web portal
C) business network
D) entrepreneurial network
26) A ________ is a social network whose primary objective is to facilitate
business connections and activities.
A) social marketplace
B) enterprise network
C) business ring
D) business social network
27) Guidelines regarding enterprise social networking activities
include:
A) allowing employees to
collaborate and communicate in an employee-driven
system.
B) promoting the use of enterprise
wikis via demonstrations.
C) setting up enterprise social
bookmarking systems so users can see what sort of content their colleagues are
tagging.
D) all of the above.
28) Companies can interface with social networking in each of the following
ways except:
A) sending flyers to customer mailboxes.
B) by using existing public social
networks.
C) conducting business activities
in a business-oriented social network.
D) using Web 2.0 tools, mostly
blogs, wikis, workspaces, microblogging, and team rooms.
29) Technologies and business practices that free the workforce from
the constraints of legacy communication and productivity tools such as e-mail
describes:
A) Enterprise 1.0.
B) Enterprise 2.0.
C) Social Networking 101.
D) Web 4.0.
30) An online community that harnesses the power of one's social networks
for the introduction, buying, and selling of products, services, and resources,
including one's own creations describes:
A) cyber store.
B) business marketplace.
C) social marketplace.
D) Web 2.0.
31) Each of the following is a way social networks generate revenues except;
A) offering a premium service for a
monthly or per service fee.
B) charging organizations a monthly
service fee.
C) hosting auctions for individuals or enterprises.
D) creating affiliations with
physical venues where members can meet.
32) A ________ is a collaborative online encyclopedia jointly written
by volunteers.
Answer: wiki
33) ________ is the popular term for advanced Internet technology and applications
including blogs, wikis, RSS, and social bookmarking.
Answer: Web 2.0
34) The online platforms and tools that people use to share opinions
and experiences, including photos, videos, music, insights, and perceptions with
each other are known as ________.
Answer: social media
35) Companies that introduce innovations that significantly change markets
or entire industries due to their activities are referred to as ________.
Answer: disruptors
36) A ________ is a group of people with a common interest who interact
on the Internet.
Answer: virtual (Internet) community
37) ________ communities open their membership to anyone.
Answer: Public
38) ________ communities belong to a company, an association, or a group
of companies.
Answer: Private
39) ________ refers to the mapping and measuring of relationships and information
flows among people, groups, organizations, computers, and other information- or
knowledge-processing entities.
Answer: Social network analysis
40) ________ refers to social networking where members converse and connect
with one another using cell phones or other mobile devices.
Answer: Mobile social networking
41) A ________ is a group of people who have some kind of commercial or
business relationship.
Answer: business network
42) ________ refers to technologies and business practices that free
the workforce from the constraints of legacy communication and productivity tools
such as email.
Answer: Enterprise 2.0
43) The term ________ is an online community that uses the power of social
networks for the introduction, buying, and selling of products and services,
including people's own creations.
Answer: social marketplace
44) ________ is viral marketing done by bloggers.
Answer: Viral blogging
45) Companies are finding that ________ outlets, such as blogs and
wikis, not only generate faster and cheaper results than traditional focus
groups, but also foster closer relationships with customers.
Answer: conversational marketing
46) Define Web 2.0. Identify five characteristics.
Answer: Web 2.0 is a popular term for advanced
Internet technology and applications, including blogs, wikis, RSS, and social
bookmarking. Its characteristics include the ability to tap into the collective
intelligence of users; making data available in new or never-intended ways;
relying on user-generated and user-controlled content and data; lightweight programming
techniques and tools, and letting nearly anyone act as a Web site developer.
47) What is a virtual community? Identify six common classifications.
Answer: A virtual community is a group of people with
similar interests who interact with one another using the Internet. Six common classifications
are transaction, purpose or interest, relations or practices, fantasy, social
networks, and virtual worlds.
48) Identify five guidelines for enterprise social networking
activities.
Answer: Five guidelines include allowing employees to
collaborate and communicate in an employee-driven system; promoting the use of enterprise
wikis via demonstrations; setting up internal blogs and
incorporating them into internal
directories so users can see who has a blog; setting up enterprise social
bookmarking systems so users can see what sort of content their colleagues are
tagging; and CIOs should be involved from the beginning to make sure the right
infrastructure and tools are in place.
49) Define Web 3.0. Identify five characteristics of Web 3.0.
Answer: Web 3.0 consists of the creation of
high-quality content and services produced by gifted individuals using Web 2.0
technology as an enabling platform. Web 3.0 will provide faster, far-flung
connectivity and richer ways of interacting; new Web services that work
entirely within a browser window; more powerful search engines; new artificial intelligence
applications, and more uses of 3D tools.
50) Identify four trends that may slow EC and Web 3.0 and even cripple
the Internet.
Answer: Security concerns, lack of net neutrality,
copyright complaints, and choppy connectivity are four trends.
