E-commerce On Social Media Essay Example

ambiguity and fostering ongoing relationships with customers, suppliers, and business partners.

It is evident that e-commerce websites that incorporate social cues elicit a social response from users, resulting in heightened enjoyment during site usage. Users perceive social cues as enjoyable, thrilling, and exhilarating (Wakefield et al., 2011). The experience of an enjoyable website is positively associated with stronger intentions to use the site, further strengthening the personal bond with online retailers.

Online retailers aiming to enhance consumer attention and increase purchases must consider the social aspects of the internet. The current software and hardware used for personal interaction on web retailing websites cater to a group of online shoppers simultaneously, rather than focusing on individual interaction. However, the inclusion of social media in these websites eliminates this barrier to personal communication (Town, 1999).

No matter the reason for shopping, people's behavior and experience might not always match their buying habits. This is often seen on e-commerce websites that do not include social features in their design. Fennec & Tint (2010) claim that integrating social media into online retail sites can significantly improve customer satisfaction.

According to Tint ; Coca's (2001), the choice of shopping environment and overall retail satisfaction depends on an individual's shopping orientation. In their study on internet users' adoption of web retailing and perception towards product types bought online, Tint & Coca's (2001) found that attitude towards electronic retailing and perceived usefulness influenced the adoption of web retailing.

The study found that a positive attitude leads to widespread use of web retailing, while a negative attitude leads to limited use of web retailing frameworks. According to Tint ; Coca (2001), the

lack of personal communication and interaction is the main factor that distinguishes between positive and negative attitudes. This suggests that web retailing sites without personal communication tools have lower levels of customer satisfaction with their shopping experience.

The significance of social media in web retailing sites is evident as it contributes to the removal of personal interaction barriers and enhances user satisfaction. Furthermore, it also fosters trust among internet users towards web retailing, as they value the influence of peers and other interpersonal sources when making purchasing decisions (Susann, 2011).

Integrating social media into e-commerce can enhance personal interaction and communication, ultimately increasing the use of e-commerce among Australian internet users. Therefore, online retailers should incorporate social media into their retail sites to gain trust from potential online shoppers. Social media has the power to attract more online shoppers, foster repeat purchases, and cultivate positive attitudes towards online retailing in Australia.

According to Tint & Coca's (2001), social media plays a crucial role in encouraging the adoption of web retailing and removing any obstacles related to its use. This means that online retailers can capitalize on social media to enhance their presence and expand their market share in the online landscape. Social media serves as an effective tool for boosting online visibility, presenting a new avenue for online marketers to shape attitudes and enhance the usefulness of their retailing websites (Stephens, 2010).

Social Media and eWOM are forms of interpersonal communication among consumers regarding commodities and products. According to Mira & Young (2009), consumers rely more on word-of-mouth information from their peers than on advertisers and marketers. The credibility and trustworthiness of this information stem

from its independence from marketers' intentions. Various studies verify the considerable influence that word-of-mouth has on consumer decisions and purchasing behaviors (Asia et al., 2009).

The internet has increased the importance of WHO. This is evident in review websites, brand websites, personal blogs, and social networking sites. These platforms facilitate communication and information sharing among consumers regarding products. Mira ; Young (2010) found that these platforms greatly influence consumers' purchasing choices. The growth of blogs and social networking sites significantly affects brands and their marketing strategies.

The use of social networking sites like Faceable and Google+ is on the rise, as more consumers turn to these platforms for product research and brand information. These sites have a wide audience, attracting numerous internet users. Social media has three key impacts: product ratings and reviews, sharing customer experiences, and promoting innovation (Rafael & Urban, 2005). Online communication channels such as discussion boards are the primary means through which electronic word-of-mouth is shared.

According to research, electronic word-of-mouth (eWOM) has a substantial impact on product and service adoption and usage. It is considered an important element of the marketing mix (Eye, 2002). Particularly through social media, eWOM plays a critical role in shaping a computer-mediated environment where consumers' buying decisions are influenced by the perceived quality of information.

When consumers receive information that meets their needs and requirements, they are inclined to evaluate the value of the product/service based on the purchasing decision criteria (Dunn & Harper, 2002). This means that online marketers need to understand how customers perceive the quality of information on the internet, as it helps to evaluate their potential buying behavior. Marketers can leverage

social media to influence factors affecting information quality, such as timeliness, accuracy, relevance, and comprehensiveness (Dollar & Aching, 2003).

The impact of information on consumers' decision to adopt it from online communities is significant. The credibility and quality of information determine its usefulness. Therefore, consumers are increasingly relying on online consumer forums as they provide information from peer consumers without any marketing intentions (Change & Strut, 2004). The comprehensiveness of information gathered from online communities contributes to the widespread influence of social media on electronic commerce. Mira & Young (2011) argue that we are currently in the social media era.

Previously, only publishers like Consumer Reports and CENT magazines were responsible for product reviews and ratings (Andrews et al., 2007). However, there has been a change where social media users now actively participate in providing their own reviews and ratings. It is worth mentioning that these reviews and ratings are not stored on retailers' websites by social media platforms. Another result of social media is the heightened visibility of consumer experiences (Andrews et al., 2007). On social media, consumer experiences greatly influence discussions about brands, thus significantly affecting retailers' reputation.

Social media and blogging platforms have a significant impact on brand marketing, offering opportunities for mass-market advertising online (Change & Strut, 2004). A successful marketing strategy involves not only mass marketing techniques but also engaging with customers through social media platforms like Facebook, Twitter, and other blogging platforms. This can be achieved by creating compelling content that encourages interaction between users, retailers, and among themselves (Dollar & Aching, 2003).

The impact of the meow trend on marketing strategies is significant, as it emphasizes the growing

reliance on social influence in effective online marketing. Conventional marketing is losing its value and becoming less effective. Australian marketers must understand that they have limited control over their online brands. People will discuss the brand without involving the marketers, and negative comments can circulate on different social media platforms (Change & Strut, 2004).

However, Australian marketers are increasingly adopting strategies to maximize the distribution of positive conversations about products. To effectively market in the age of social commerce, it is crucial for online stores in Australia to integrate social media into their e-commerce websites. This integration encourages member engagement and product discovery (Andrews et al. 2007). Social commerce refers to using social media platforms in e-commerce to enhance online buying and selling. The combination of e-commerce and social media trends has a significant impact on online visibility and sales. Web-based communication has the potential to revolutionize corporate advertising, community sponsorship strategies, and the overall business model.

Social media has become the dominant form of online communication, surpassing traditional methods. In today's digital economy, simply creating an online store and waiting for customers is no longer sufficient (Change ; Strut, 2004). Instead, online retailers must take a proactive approach by actively seeking ways to engage consumers, build relationships, and create online communities. What sets social commerce apart from traditional e-commerce is the integration of social elements into the business model.

Social commerce refers to the use of consumer ratings and reviews, referrals, social shopping platforms, user recommendations, and a trusted environment where people create content about the referral and sale of products using customer feedback, reviews, ratings, and testimonials (Chemung et al., 2008). Social

commerce is driven by electronic business opportunities, online communities, and the rise of internet technologies like web 2.0. It is characterized by the gathering of collective intelligence, viral marketing, market disruption, and providing a platform for participation.

The success of social commerce websites relies heavily on the number of retailers and consumers. The network effects resulting from user contributions play a crucial role in achieving dominance in the online market. Word-of-mouth marketing is an important factor in social commerce, as customers promote products based on their positive experiences.

Branded communities have the ability to develop enduring relationships and stronger attachment with their customers. Social commerce platforms, like Faceable, exemplify inclusive networks where people contribute to what others desire on a level playing field. These platforms incorporate various social Edie tools, such as photo and blog sharing, to offer users a platform to voice their thoughts and preferences. Additionally, these websites serve as a central communication hub for social networks.

Business entities can create online communities of fans to promote their products and services, which can help in building a brand. Social commerce is a valuable tool as it enables the formation of a network of individuals who are enthusiastic about a particular brand (Chemung et al., 2008). This network allows for effective communication of the brand's message to online communities. Online fan bases and communities are now becoming a popular means of advertising.

Virl marketing is a key aspect of social commerce that businesses can utilize to enhance brand awareness at a lower cost. When customers make a purchase, they often share the message with potential consumers, prompting companies to adjust their communication

strategies. Social media empowers consumers to have control over their brands (Seasonal et al. 2009). The combination of e-commerce and social media results in widespread and robust business models. E-commerce depends on online experience and connections to external websites.

These comprehensive business models draw and keep website users by offering free user accounts and website usage. Furthermore, knowledge systems that enable feedbacks contribute to enhancing the effectiveness of the social commerce business model. Social media has various impacts aside from direct sales, such as enhancing brand visibility, gaining marketing insights, and improving customer loyalty. Social media aids in boosting brand visibility by facilitating ongoing communication between the brand and its consumers.

Social media provides a platform for social interaction, enabling consumers to build trust in a brand. Engaging with online friends and fans fosters greater brand awareness and loyalty. Brands should prioritize community building on social media to enhance customer loyalty. Additionally, social media offers valuable marketing insights by giving marketers access to consumers' thoughts on the brand. By leveraging this communication platform, marketers can gain a deeper understanding of consumers' perspectives (Change & Strut, 2004).

According to Mimed (2011), social media plays a role in creating value and satisfaction in the electronic marketplace. Consumers gauge value based on their utilization of existing resources to fulfill their needs and desires. Value refers to the benefits customers receive in exchange for the time, money, and energy they invest. This notion of value significantly impacts consumers' consumption behavior, pricing, profit levels, and other strategic choices made by businesses. Moreover, value is crucial in establishing a sustainable competitive advantage.

The integration of social media into e-commerce contributes to

the creation of value for customers in various ways. Initially, customers receive personalized treatment, as businesses can offer products at suitable prices. Social media serves as a platform for businesses to communicate and engage with their customers, presenting several opportunities. Through social media, enterprises can enhance economic utility and ultimately increase customer satisfaction among online shoppers (Andrews et al., 2007).

The most common use of social media is for customers to access product information anytime and anywhere. The value-creation process of social media increases customer expectations through interpersonal interaction among customers, suppliers, and businesses. Social commerce is now being utilized by businesses to create high value and customer satisfaction. In Australian society, there is a growing reliance on social media for advice on online transactions, as consumers increasingly depend on their friends' recommendations.

It is crucial for enterprises to consider the trend of friends helping with online purchases. Australian companies should prioritize and effectively use social media to create value and gain a competitive advantage. For instance, firms can update their social network pages regularly, offer valuable news and resources to customers, and establish a strong online presence. Incorporating such strategies can enhance online sales and ensure that the firm stays up-to-date with emerging trends in electronic commerce (Seasonal et al., 2009). In conclusion, this paper has discussed how social media impacts Australian e-commerce. It also explored various effects of social media on e-commerce, such as its pervasive influence in Australia, its role in eliminating barriers to personal interaction, its impact on electronic word-of-mouth, social commerce, and how it creates value and satisfaction in the online marketplace. A relevant resource for further reading is Adapt,

S. (2008). Adoption of Internet Shopping: Cultural Considerations in Australia and India.

In a study published in the Journal of Internet Banking and Commerce, Indian women shopping online in India were analyzed by Adapt. Their business models considered the cultural and social conditions of these women. Consequently, marketers must understand consumers before creating effective online marketing strategies. Online retail stores should be proactive in engaging consumers, building relationships, and forming online communities.

Social commerce involves integrating social elements into the traditional e-commerce model. These elements include features like consumer ratings and reviews, referrals, social shopping platforms, user recommendations, and online communities. Incorporating social media in marketing has been proven to be significant according to the insights provided by Seasonal, H., Katie, A., & Shame, A. M. (2009) in their study on the factors determining customer shopping behavior through the internet, specifically in the Malaysian case.

In their article published in the Australian Journal of Basic and Applied Sciences (volume 3, issue 4, pages 3452-3463), the authors examine the influence of internet marketing on consumer behavior in online shopping. They highlight the impact of the social media era on product reviews and ratings, which were historically limited to publishers. Now, social media users actively participate in providing constant feedback and ratings for products.

The article provided valuable insights into effective online strategies that Australian businesses can implement to increase their market share and cultivate customer loyalty. It emphasized the integration of social media in e-commerce websites as a means to achieve these goals. Andrews, L., Kiel, G., Adrenal, J., Bayle, M., & Warranted, J. (2007) conducted a study on gendered perceptions of experiential value in using

web-based retail channels. Their research focused on understanding the factors that motivate buyers to make online purchases.

The impact of gender on people's perceptions of social and conditional value in online purchases is investigated in this article. The research reveals that male purchasers are predominantly influenced by social value, whereas female purchasers prioritize functional value. The article provides a theoretical framework to comprehend the significance of social influence in online shopping, which is essential to the central thesis of the research paper (Change, J., & Strut, C., 2004, Internet Shopper Demographics and Buying Behavior in Australia, The Journal of American Academy of Business, Cambridge, 171-176).

The authors of the article discuss the connection between demographics and buying behavior of internet shoppers. They claim that by incorporating social media into electronic commerce, barriers to personal interaction and communication can be eliminated, leading to increased utilization of electronic commerce by Australian internet users. Therefore, online retailers can use social media on their retailing sites to gain trust from potential internet shoppers. Chemung, C., Matthew, K., & Arabian, N. (2008). The Impact of Electronic Word-of-Mouth: The Adoption of Online Opinions in Online Customer Communities.

Internet Research, 18 (3), 229-247, discusses the influence of electronic word-of-mouth (meow) on web retailers. The authors find that meow plays a crucial role in impacting the adoption and behavior of online shoppers. It is evident that meow is becoming an important element in the marketing mix, as it affects the purchasing decisions of internet consumers. This source provides insights into how meow impacts the effectiveness of online marketing strategies. Additionally, Dollar, R., ; Aching, K. (2003) discuss the differences between online shoppers and

their impact on consumer psychology in the Journal of Consumer Psychology, 13 (1), 171-176.

The authors of the article conducted research on the connection between gender stereotypes and internet shopping behaviors. They highlighted the importance of comprehending the social influences linked to online shopping. The authors contend that successful online marketing relies heavily on social influence, whereas traditional marketing is losing relevance and effectiveness. Australian marketers need to acknowledge that they have limited control over their online brands.

In their study, Dunn and Harper (2002) investigate the impact of electronic commerce on the Australian economy. They discover that when electronic commerce is combined with social media, it leads to widespread and robust business models. The digitalization of the economy necessitates that Australian businesses embrace emerging online marketing strategies such as social media. This article provides a comprehensive examination of how electronic commerce affects the Australian market (Joey, G., 2002).

Joey (2002) examines the impact of various factors on online purchases, with special attention given to social media as a key determinant. Social media encompasses web-based applications that enable users to create and share content. It utilizes internet and web technologies to transform traditional one-way broadcast media into interactive social platforms. This research played a crucial role in enhancing our understanding of integrating social media with e-commerce to establish social commerce. Mimed, N. (2011). The Impact and Benefits of Internet on Marketing Mix.

According to Mimed (2011), the Australian Journal of Basic and Applied Sciences, 5 (9), states that consumers perceive value based on their utilization of resources to meet their needs and wants. Mimed suggests that Australian businesses can enhance value for consumers by providing

products at suitable prices. Consequently, social media offers various opportunities for businesses to satisfy online shoppers. At present, businesses are utilizing social commerce to generate high value and customer satisfaction (Mira & Young, 2009).

The article titled "Electronic Word-of-mouth (meow): How meow Platforms Influence Consumer Product Judgment" by Mira ; Young (2009) discusses the increasing significance of electronic word-of-mouth (meow) in the age of the internet. This includes platforms such as product review websites, brands' websites, personal blogs, and social communication, which provide product-related information. The article offers a comprehensive understanding of how social media facilitates meow marketing. Another relevant study on the topic is "Information Sharing Online: a Research Challenge" by Rafael', S., ; Urban, D. (2005) published in the International Journal of Knowledge and Learning, which explores the challenges of sharing information online.

The article suggests that businesses can benefit from using the internet as a retail platform. It states that online shoppers prefer interactive shopping experiences as they provide more information. Therefore, websites with interactive elements like social cues are more likely to attract online shoppers and lead to purchases. The article also highlights how social media can serve as an interactive and informative shopping guide. Furthermore, it mentions the potential of social media to increase e-commerce usage in Australia.

In their study titled "Web Strategies to Promote Internet Shopping: Is Cultural-customization needed?", Asia, C., Kate, H., Kook, L., Lee, M., ; Hung, W. (2009) discuss the strategies that online marketers can employ to influence consumers' purchasing decisions. They highlight the key elements of social commerce, such as collective intelligence, viral marketing, market disruption, and participation platform. The authors further suggest that

Australian businesses can tap into the opportunities offered by social commerce based on these core attributes.

According to Stephens (2010), the internet has become the new retailing platform for Australian businesses to take advantage of. The author suggests that online shoppers prefer an interactive online shopping experience as it provides more information. This means that shoppers are more likely to buy from a website that includes interactive components like social cues. This article offers insight into the role that social media plays in creating an interactive and informative shopping guide.

Susann (2011) explores the connection between social media and e-commerce in Australia in the Journal of Internet Banking and Commerce. The article delves into the usage of internet banking, factors influencing its usage, and how banks employ cost-effective marketing strategies to retain online customers and promote online marketing.

The main utility utilized by banks is the ability for customers to access product information at any time and place. The process of creating value through social media increases customer expectations by facilitating interpersonal interaction and communication between customers, suppliers, and businesses. Tint, F., & Coca's, A. (2001). The Journal of Product and Brand Management, 10(6/7), 361-378, examines the consumer characteristics that influence internet users' adoption of web retailing for purchase-related behavior.

According to their study, social media plays a crucial role in influencing the adoption of web retailing. The authors highlight how it helps in eliminating barriers to personal interaction on web retailing sites, thereby enhancing user satisfaction. The article emphasizes the significance of social media in fostering trust in web retailing among internet users by stressing the importance attributed to interpersonal influence from sources like

peer groups during decision-making.

This article, written by Town (1999), discusses the importance of using social media in electronic commerce to overcome obstacles in personal interaction and communication. Town (1999) acknowledges that the internet has become the new marketplace.