Social Commerce: Understanding and Impact

This assignment delves into the concept of social commerce, examining existing research frameworks that attempt to understand its complexities. It encourages you to analyze how consumer behavior and motivations are shaped by social media platforms in the context of e-commerce. Additionally, the assignment prompts you to consider the business implications of social commerce, including its impact on marketing strategies, customer relationships, and overall market dynamics.

Running head: BUSINESS RESEARCH ANALYSIS
Business Research Analysis
Name of the Student
Name of the University
Author Notes

1BUSINESS RESEARCH ANALYSIS
Table of Contents
Introduction......................................................................................................................................2
Project Objective.............................................................................................................................3
Project Scope...................................................................................................................................4
Literature Review............................................................................................................................4
Definition of the terms related to social e-commerce..................................................................4
Use of Social media for branding................................................................................................6
Framework for the social e commerce research activities...........................................................7
Issues those are associated with the application of social Electronic Commerce........................9
Gaps in the Existing literature....................................................................................................11
Conclusion.....................................................................................................................................11
Reference.......................................................................................................................................13

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Introduction
Social commerce or social Electronic Commerce is a category under the E-Commerce
section of business, which involves the use of social media platform that can help to promote and
raise the popularity of online stores and websites. Communication in the form of social
interaction is used in order to assist the customer chose their product and inform the customers
about the detailed feature or review of a product.
It is important to mention in the contacts that the term social E-Commerce has been
developed by Yahoo in 2005, when online shopping was first introduced among the consumer
market. With the introduction of various social media platforms, the concept of social E-
Commerce started to become popular among the customers. Promotional activities of the
products by spreading detailed information and review are done with the help of social media
platform or in other words through social media marketing. Hence, it can be said that social
media platforms are used as a source of carrying out various promotional activities that is aimed
to reach out to the target group of customers.
The major opportunity that is associated with the concept of social e-commerce is the fact
that it can help the company to directly engage with the audience customers and try to
understand their social buying behaviour. With the rising popularity of e-commerce business, the
concept of social commerce is also increasing among the target groups of customers. One of the
major advantages of using the social media marketing as a form of social E-Commerce is due to
the fact that, the companies are able to save their expenditure that is spent on traditional form of
marketing activities. Moreover with the rise of popularity of digital technology, social E-
Commerce or social media marketing is believed to be one of the effective ways that the social

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media can used to understand the social buying behaviour of the target customer groups. On the
other hand, there are certain drawbacks of application of social commerce or social media
marketing is due to the fact that it can be used by various users to spread false or fake
information about a company's product with the help of negative reviews. This can thereby
hampered the reputation of the company.
Project Objective
The purpose of this project is to discuss about the opportunities and problems associated
with the application of social e-commerce in all forms of business. With the growing popularity
of social media platforms, this is used by all scales of business as one of the most effective ways
to communicate with the customers and thereby have the ability to deliver the promotional
messages. The current project is about the literature review that is related to discuss the
opportunities that are associated with the use of social Electronic Commerce.
The analysis that will be done in the current project is important the current context due to
the fact that it can help to highlight upon the ways that can be adopted by the companies to
decide upon their social media marketing policies. It can also help to formulate ways that can be
adopted by the companies to prevent the misuse of the social media networks. The objectives of
the current project can be classified as follows.
 To explore the opportunities that are associated with the use of social media due to the
use of social media in e-commerce.
 To explore the problem those are associated with the use of social e commerce.
 To suggest proper ways to the company that can be adopted in order to prevent the
misuse of social media networks that is used as a source of the social media network.

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Project Scope
The use of social media network is essential for all business organisations due to the fact
that it can help them to raise their popularity among the target customer groups. In this context,
the scope of the current project includes critical analysis of the opportunities that are associated
with the use of social media network social e-commerce. There are many forms of business,
which are only dependent upon the online websites. These forms of business use the social media
as one of the primary modes of promotion that can help them to deal with the consequences of
the social e-commerce. Social media network can be used as one of the effective ways to deal
with the effects of the marketing promotions.
The scope of the Project includes all the major advantages that are associated with the use
of social media marketing in ecommerce business. All the relevant terms related to social e-
commerce has been discussed in details within the literature review. The project will consider all
relevant journal articles that are related to the use of social media network in e-commerce
business. For conducting the literature review all Peer reviewed articles are being chosen, which
were published on or after 2010.
Literature Review
Definition of the terms related to social e-commerce
In the research work of Liang and Turban (2011), it was mentioned about the fact that
social media commerce is effective in context of the current days due to the fact that most of the
e-commerce business is entirely dependent upon the degree of usage. The social Electronic
Commerce market is at the nascent stage, which includes all types of online and social
purchasing system. Mobile applications are used for this purpose, which are linked to social

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media applications and websites. There is a quiet significant difference between the concepts of
social media marketing the form of social commerce and social shopping. In case of social
commerce, the different types of online vendors collaborate with each other to sell different
types of products. On the other hand, in case of social shopping, online virtual groups are being
formed for providing detail information related to the products. It is possible for the customers to
get on types of detailed information and product review with the help of various social media
platforms and discussion forums (Hays et al., 2013).
As the digital form of Technology flourishing in the 21st century, it has provided
opportunities for ecommerce business to capture the share of the market. It is essential in this
context that all the companies understand the importance of social media marketing and take
special efforts to have proper social media marketing policies. The social commerce or social
Electronic Commerce is a major sub-section under the domain of social media marketing. It is
important to understand the concept related to social media marketing, which can help to
properly define the concept of social e-commerce. Lee and Lee, (2012), have added in the
context that the social e-commerce forms of Promotional campaign is dependent upon the
concept of word of mouth that includes making the choice of buying a product from the opinions
and advice provided by other users. Community interaction is highly involved in the case of
social media websites, which is needed to deal with the process of decision making purpose.
The rising popularity of various social media platforms which includes Facebook
Instagram YouTube and MySpace has provided the business opportunity of developing new
marketing strategies. Li et al., (2013), have mentioned about the use of the technology that
includes 2.0 social media technology. This improve level of Technology can be used by all
business entrepreneurs to easily communicate with the stakeholders and market consumers.

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Use of Social media for branding
It is important to mention that the use of social media is one of the effective techniques
that are used for all types of e Commerce website in order to improve upon their market
reputation. The major opportunity that exist due to the use of social e-commerce is directly
associated with the benefits of digital marketing. One of the major branding strategies that can be
accomplished with the help of social media platforms is with the help of online communities.
Through the social media platforms, it is possible for the companies to properly assess the need
and demand of the market and that of the target customer groups (Chiemeke & Evwiekpaefe,
2011). It is also possible for the companies to directly interact with the customers. For example
with the help of Facebook, which is one of the most popular social media platforms, it is possible
for the company directly chat and interact with different customers. The platform of messenger
used for this purpose, where the customers can provide the feedback and also the issues that are
faced by them. Dong-Hun (2010), has added in the context that with the help of direct interaction
with target customers, it is possible for the companies to improve upon their brand reputation and
brand value among the target customers. The direct interaction with the audience can also help
them to understand the issues faced by consumer while using any particular product. The level of
brand awareness can also be increased with the help of the direct conversation that are being
carried on between the customers and company executives. The branding opportunity can also be
improved due to the fact that social media platforms can help in the matter of authority and
engagement, which can help the company, understand their existing demand of a product within
the market. The social channels can also be popularized due to the fact that it can be easily
accessible by all categories of people with having the access of internet connectivity. With the
use of the social media channels it is possible for the companies to emotionally connect with

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target group of audience. This can provide the opportunity to realise the importance of buying
psychology and decision making process, which have direct implication on the volume of sales.
Kim et al., (2015), have mentioned about the fact that social Electronic Commerce can be
used as one of the effective techniques to measure the efficiency level of e commerce business
marketing. The value for return on investment on branding strategies can be measured effectively
with the help of efforts related to social media usage. The branding strategies with the help of
social media can also help the company managers to predict the future trends and also future
growth. This can help reputed brands in the E commerce department to implement proper
adaptive techniques for dealing with adverse and unfavourable situation in the market. Strong
social media marketing campaigns can help in the process of incorporating strong brand values
among the target customer groups. Stronger level of brand engagement is possible due to the fact
that company officials get the opportunity to directly interact with target audience and thereby
have the chance of modifying the business strategies in accordance with the reputed brand value.
Framework for the social e commerce research activities
He et al., (2013), have suggested about the research Framework that can be implicated by
The E-Commerce brand in order to carry out their marketing strategies and thereby able to
implement proper branding strategy. There are mainly 6 elements that can be used by all
business organisations in order to improve upon their E-Commerce business section. The
networking that is involved with the application of social media is the primary elements, which
is enable due to the fact that in the current day, large number of population dependent upon the
use of social media in order to connect with various people all around the globe. This
opportunity of the social networking process can be used by the e business owners to implement

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up on their marketing policies. There are also different blogging website, where people can get
detailed information and review about the features related to the use of certain category of
products. It is important in the context that there are Separate social network initiated by the
ecommerce website, which are categorised according to the type of the products that are being
sold. For example there are different kinds of bloggers, who regularly provide reviews related to
electronic gadgets that are released in the market. These reviews are published in the social
networking media that is essential in the cases related to the use of the social media websites and
the relevant marketing strategies (Afrasiabi Rad & Benyoucef, 2011).
The message that is being delivered to the public with the help of social media marketing
is another important element of the research framework. It is essential for the E-Commerce
companies to ensure that proper and optimised level of message are being published in the social
media websites, which will be easily understood by all section of people, thereby improving
account the brand popularity. The department of customer relationship management can help to
improve upon the customer service that is being provided by the companies after the sales of the
products. Social media marketing policies are also made depending upon the marketing themes
that can be implemented to improve upon the brand value. It is important for the companies to
recruit proper employees in the customer care department, who will have the ability to directly
interact with the customers and also resolve the issues. The social media channels can also be
used as a source of recruitment of employees within the company. There are special dedicated
social media platforms like the LinkedIn, which are meant for the recruiters that can enable them
who directly interact with the interested candidates. Hence, the E-Commerce companies and get
the opportunity to able to connect to larger group of interested candidate and thereby improve
upon the walking capability.

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It is important for the E-Commerce business firms to implement proper research methods before
applying the social E-Commerce marketing strategies. Kim, et al., (2013), has mentioned that it
is essential to analyse upon the strengths and weaknesses that varies depending upon the various
level of consumer market.
There is also the element of motivational theories that are implied by the e-commerce
business firms, which can help the market researchers to use upon the marketing theory and
ensure that maximum number of customers is being attracted.
Issues those are associated with the application of social Electronic Commerce
In spite of several opportunities and advantages that are associated with the application of
social ecommerce marketing theories, which is done with the help of popular social media
platforms, there are certain drawbacks and disadvantages associated with its implication in
practice. The major limitations as mentioned by Liang et al., (2011), is due to the fact that the use
of e-commerce form of business along with social E-Commerce form of marketing is entirely
dependent upon the high level of digital infrastructure. This means with the help of social media
marketing policies, it is not possible for the E-Commerce business firms to reach out to the
audience, where there is no internet connectivity. Hence The E-Commerce business activities are
limited to the urban places, where people are habituated with the use of digital technology and
Smartphone applications. Huang and Benyoucef (2013), have also highlighted about the issues
related to security concerns which is related to the use of social media marketing. This is more
relevant in the context of the modern day due to the fact that there are opportunities for many
people to misuse the social media platform and also make negative implication. As social media
platforms are used by the e-commerce companies to provide detailed information related to the

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product description, the information can be misused by Rival companies by implementing
unethical business practices.
There is also the risk involved due to the fact that social media platforms can be misused
to provide false or fake information related to product description. This fake information can
easily reach out to a larger group of audience, thereby compromising up on the brand reputation.
According to the statistics provided by Hughes and Beukes, (2012), nearly 50% of the social
media users are not comfortable with excessive use of the social media due to the fact that their
personal information can be misused by any public. There is also possibility that The E-
Commerce business firms can provide false information about the features associated with any
particular product, which can mislead the audience. The false attractive images that are provided
in the social media platforms often develop the habit of consumer impulsive behaviour. This in
turn can lead to the tendency of irrational buying behaviour among the customers, which
ultimately enforces them to buy unnecessary products thereby causing wastage of money.
The messages that are spread with the help of social media platforms as a part of
marketing strategy can result in the process of attracting unwanted customers, which can
comprise up on the level of brand reputation. There is also one of the major challenges that are
associated with the process of networking issues. Poor level of Internet connectivity can
compromise upon the Marketing strategies that are implemented by The E-Commerce business
firms. It will also not be possible for the customers to easily connect with company executives,
which is believed to be the major opportunity and advantage of social Electronic Commerce.

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Gaps in the Existing literature
The existing literatures related to the analysis of social E-Commerce have explained the
opportunity that is associated with the application of social media marketing strategies. It has
also highlighted upon the research strategies that can be implemented by the business firms to
deal with the challenges of brand marketing. Nevertheless, the major gap of the existing
literature is due to the fact that even though it was able to highlight upon the limitations of social
e-commerce, it has not given special focus upon suggesting strategies that can help to overcome
the drawbacks associated with the use of the social commerce. It has also not highlighted up on
the level of technological infrastructure that is needed for business firms to help them to properly
implement the social media marketing strategies.
Conclusion
On the concluding note it can be said that with the rising popularity of digital Gadgets
and social media platforms, the social Electronic Commerce can be one of the effective
techniques to reach out to the target group of audience. It also provides the opportunity to the
business firms to easily communicate with larger group of audience and thereby enable them to
resolve the issues. It is important for The E-Commerce business firms to use effective research
framework that can help to ensure maximum benefit are being obtained from the respective
marketing strategies.
Nevertheless it is important for the business firms to take special care of the issues
associated with use of social Electronic Commerce, with include security issues and the fact that
social media platforms can be used as a source of spreading fake information about a brand in

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the market. The future research work need to focus upon suggesting strategies to overcome the
existing drawbacks and issues associated with the application of social Electronic Commerce.

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Reference
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