Lesson E-commerce, web 2.0, and social networking systems

Lesson E-commerce, web 2.0, and social networking systems present the content: organizations use e-commerce; organizations use Web 2.0; social networks add value to businesses; organizations manage the risks of social networking applications.

Lecture 7: E-commerce, Web

2.0, and Social Networking

Systems

nga.lethiquynh@ueh.edu.vn

Study questions

Q1  How do organizations use

e-commerce?

Q2  How do organizations use Web 2.0?

Q3  How Do Social Networks Add Value to

Businesses?

Q4  What are business applications for

Facebook, Twitter, and User-Generated

Content (UGC)?

Q5 How can organizations manage the

Q1  How do organizations

use e-commerce?

E-Commerce

► e-commerce is the buying and selling

of goods and services over public and

private computer networks

E-Commerce Company categories

► Merchant: buy goods and resell them

► Non merchant: sell services and goods

provided by others

► a company can be both a merchant and

nonmerchant company.

1 B2C sales between a supplier and a retail customer

2 B2B sales between companies

3 B2G sales between companies and governmental

organizations

E-Commerce Merchant Companies

► Merchant companies:

Nonmerchant E-Commerce

► Auctions: match buyers and sellers by using an

e-commerce version of a standard auction

► Clearing house: provide goods and services at a

stated price and arrange for the delivery of the

goods, but they never take title

Source: textbook[1], page 249

Unique Features of E-commerce

Technology

eCommerce techonology features

Ubiquity

Information density

Global reach

Universal standards

Social technology Interactivity

Personalization

► Internet/Web technology available

everywhere: work, home, and so on,

anytime

► Effects:

► Marketplace removed from temporal,

geographic locations to become

“marketspace”

► Enhanced customer convenience and

reduced shopping costs

Information density

► Large increases in information

density—the total amount and quality

of information available to all market

participants

► Effects:

► Greater price transparency

► Greater cost transparency

► Enables merchants to engage in price

discrimination

Global reach

► The technology reaches across national

boundaries, around Earth

► Effects:

► Commerce enabled across cultural and

national boundaries seamlessly and without

modification

► Marketspace includes, potentially, billions

of consumers and millions of businesses

worldwide

Universal standards

► One set of technology standards:

Internet standards

► Effects:

► Disparate computer systems easily

communicate with one another

► Lower market entry costs; costs merchants

must pay to bring goods to market

► Lower consumers’ search costs-effort

required to find suitable products

► Supports video, audio, and text

message

► Effects:

► Possible to deliver rich messages with text,

audio, and video simultaneously to large

numbers of people

► Video, audio, and text marketing messages

can be integrated into single marketing

message and consumer experience

Social technology

► The technology promotes user content

generation and social networking

► Effect:

► New Internet social and business models

enable user content creation and

distribution, and support social networks

► The technology works through

interaction with the user

► Effects:

► Consumers engaged in dialog that

dynamically adjusts experience to the

individual

► Consumer becomes co-participant in

process of delivering goods to market

► Technology permits modification of

messages, goods

► Effects:

► Personalized messages can be sent to

individuals and groups

► Products and services can be customized to

individual preferences

How Does E-Commerce Improve

Market Efficiency?

► Disintermediate

► Price elasticity: measures the amount that

demand rises or falls with changes in price

How Does E-Commerce Improve

Market Efficiency?

► Price information:

How Does E-Commerce Improve

Market Efficiency?

Q2  How do organizations

use Web 2.0?

Web 2.0

► focused on the ability for people to

collaborate and share information

online

Comparison of Web 2.0 with

Traditional Processing

How Can Businesses Benefit from

Web 2.0?

► Advertising

► specific to user interests

► Example: Google AdWords , Google AdSense

► the cost of reaching a particular, qualified

person is much smaller than in the

traditional advertising model

► Mashups

► occur when the output from two or more

Web sites is combined into a single user

experience

Q3  How Do Social Networks

Add Value to Businesses?

How Do Social Networks Add Value

to Businesses?

► Increase the Number of relationships

► Increase the Strength of Relationships

Progressive organizations:

► Maintain a presence on Facebook, LinkedIn, Twitter,

and other SN sites

► Encourage customers and interested parties to leave

comments.

► Risk - excessively critical feedback.

Using Social Networking to Increase

the Number of Relationships

Using Social Networks to Increase

the Strength of Relationships

► the strength of a relationship is the

likelihood that the entity in the

relationship will do something that

benefits the organization

► social networks provide four forms of

value: influence, information, social

credentials, and reinforcement

► If an organization can induce those in its

relationships strengthen that

Q4 What Are Business

Applications for Facebook,

Twitter, and User-Generated

Content (UGC)?

With Facebook, organizations can

► create a page and manage that page for

business purposes

► Use Facebook Groups

► Use Facebook Applications

4 principles for designing meaningful FB

applications

• address real needs, from entertainment

to practical tasks

► a Web 2.0 application that allows users

to publish 140-character descriptions of

anything

► is an example of a category of

applications called microblogs

Source: twitter.com

How Can Businesses Benefit from

Microblogging?

► Public relations (PR)

► Microblogging enables any employee or

business owner to communicate with the

world

► Relationship sales

► relationships forming from microblogging

can serve as an ideal channel for sales

► Market research

User-Generated Content (UGC)

Source: Textbook[1], page 269

► Common types of UGC:

UGC Applications

Q5 How Can Organizations

Manage the Risks of Social

Networking Applications?

Manage the Risks of Social

Networking Applications

► Q1  How do organizations use

e-commerce?

► Q2  How do organizations use Web 2.0?

► Q3  How Do Social Networks Add Value

to Businesses?

► Q4  What are business applications for

Facebook, Twitter, and User-Generated

Content (UGC)?

Q5 How can organizations manage the

Additional Resources

► Vietnam B2C Ecommerce 2014 Report

► Social Media Revolution (2013)

► Social Media Revolution (2017)