Analyzing the Impact of Social Commerce Technology on Modern Society

This essay discusses the impact of social commerce, defined as the use of social media platforms for business and social interaction to facilitate the exchange of goods, on society. It highlights how social commerce has benefited organizations by expanding their target market and customer penetration and has driven significant social change by fostering greater customer engagement. The essay contrasts traditional shopping behaviors with the new independence in decision-making afforded by online ratings and reviews, as well as the 24/7 availability of social media shopping. It emphasizes the role of rating systems in empowering customer voices and the use of CRM software and analytics in influencing customer decisions through targeted ads and review systems, ultimately leading to more frequent and quicker buying patterns. The essay references specific platforms like Facebook and Twitter to illustrate these points.

Social media social commerce
technology
1

TABLE OF CONTENTS
Table of Contents.............................................................................................................................1
Impact of social commerce on society.............................................................................................2
REFERENCES................................................................................................................................4
2

Impact of social commerce on society
Social commerce is defined as the business approach which uses social media and
networking platforms to support social and business interaction to encourage exchange of goods
on social platforms. Social commerce has not only benefited organisations by increasing their
target market and customer penetration but has also created a positive and broad social change.
With social commerce people have demonstrated more engagement with the organisation. This
has brought a complete new transformation in purchasing behaviour as well as buying trends
existing in society (Nakayama & Wan, 2019). Like with old and conventional shopping
behaviour customs used to depend upon store timings or reviews from others. However now a
day’s people can easily observe even provide ratings and reviews on sites making them highly
independent in decision making. Similarly, with social media customers are not bounded to any
particular day or time instead they can make purchase at any instant of time. Thus the social
culture of working or buying for only day time has completely transformed and now buying and
selling does not have any time limitations.
Figure 1: An example of social commerce on popular social platform 'Facebook'
(Source: Mullin, 2019 )
The rating systems not only helps people to take effective decisions but are also proven as
measure to strengthen the voice of customer (Busalim & Ghabban, 2021). Earlier customer
3

segment used to have only one choice that is to choose other supplier if they are not satisfied.
However social commerce has provided an opportunity to customers that they can be very
frequent and vocal about their needs a very quick actions is taken upon their needs. Twitter
platform is one of the great example which has played great role in empowering social voices
irrespective of customer profile. CRM software and shop able posts are playing important role in
affecting customer or social data. As compare to 20 years ago now people are more open about
sharing their choices and reviews. Thus using these analytics, companies used to offer attractive
promotional ads, buy buttons as well as review systems on social platforms which are proven to
be effective in influencing the customer decision (Han, Xu & Chen, 2018). Due to social media
addiction use of these platform for commerce and trade purpose has resulted in leading to more
frequent and quick buying pattern.
4

REFERENCES
Books and Journals
Busalim, A. H., & Ghabban, F. (2021). Customer engagement behaviour on social commerce
platforms: an empirical study. Technology in Society, 64, 101437.
Han, H., Xu, H., & Chen, H. (2018). Social commerce: A systematic review and data
synthesis. Electronic Commerce Research and Applications, 30, 38-50.
Nakayama, M., & Wan, Y. (2019). The cultural impact on social commerce: A sentiment
analysis on Yelp ethnic restaurant reviews. Information & Management, 56(2), 271-
279.
Online
Mullin, S., 2019. Social Commerce: What It Is, What It Isn’t, and Why You Should Care.
[Online]. Accessed through <https://cxl.com/blog/social-commerce/>
5