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Critical Thinking and Problem Solving

   

Added on  2021-06-17

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Running head: CRITICAL THINKING AND PROBLEM SOLVING 1Critical Thinking and Problem SolvingName of StudentInstitutional AffiliationName of ProfessorDate
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CRITICAL THINKING AND PROBLEM SOLVING2Part I: Social shoppingSocial shopping is a kind of e-shopping methodology where the shopping experience is mainly shared with a social network of friends. This shopping methodology impacts people’s buying processes by using the social media networks in sharing, recommending, suggesting, and commenting on various products and services. Social shopping plays a great role in motivating or influencing the social media friends and other people to buy certain products or services (Kyoochun and Lee, 2012, pp.441-451).From the given article we get the statement that “Social shopping combines product/service sales with consumer participation in a social network environment with a synergistic relationship between social networks, consumers, and local merchants” (Lee et al.,2015, p.735). This statement is a clear indicator that social shopping plays a very important role in promoting the sales of different goods and services since it helps to improve the synergistic relationship between the sellers and the consumers of various products and services using different social media platforms which in turn improves the trust and the loyalty between these two main stakeholders (sellers and customers) of businesses. Promoting and increasing the sales of the goods and the services being sold by the businesses automatically leads to an increase in the profits generated by the businesses (Nezami,Worm, and Palmatier, 2018). From the article, we learn that social shopping has some advantages and some disadvantages to the involved parties. Some of the major advantages of social shopping to the social merchants include expanding the customers base of businesses, increasing the sales of different products and services sold by the businessses, reducing the advertising expenses which used to be incurred using the traditional advertising mechanisms, increasing the utilization capacities of businesses,
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CRITICAL THINKING AND PROBLEM SOLVING3improving the relationships between the sellers and the customers through the advanced social media networks, opening new sales channels for the businesses, reducing the inventories of businesses, improving the marketing methods of businesses, among many other advantages (Lee et al., 2015, p.740). Even with the many advantages of the social shopping, there are still some disadvantages which result from employing social shopping strategy in businesses. Some of the major disadvantages of social shopping include increasing the risk or the potential of reducing the profits due to the high commission rates, may do some harms to the companies through spreading of negative reviews which may given by some clients (customers), it encourages competition among the merchants, the businesses are forced to incur some costs to manage the shopping sites, it encourages cannibalization from the existing customers, increases the complexity of resources and staffs scheduling, among many other disadvantages (Lee et al.,2015, p.740). Using inductive reasoning, we can see that social shopping has some advantages and some disadvantages to the social merchants but the advantages outweigh the disadvantages and therefore, businesses should incorporate social shopping in their operations to enjoy their many benefits or advantages. These businesses should also look for some means to address someof the addressable disadvantages which result from social shopping (InLee and Choi, 2015, pp.735-747).Part II: E-Commerce in AustraliaE-commerce can be simply defined as the activity of buying and selling of different goods and services online or via the internet (VanHoose, 2011). Being one of the most developedcountries in the world, Australia has very many businesses of different types and most of these businesses have incorporated e-commerce strategy in their operations, and this strategy has
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