Adding Social Features to E-Commerce
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2012 Proceedings of the Conference on Information Systems Applied Research ISSN: 2167-1508 New Orleans Louisiana, USA v5 n2235 _________________________________________________ Adding Social Features to E-commerce Zhao Huang [email protected] Seo Yeon Yoon [email protected] Morad Benyoucef [email protected] Telfer School of Management University of Ottawa Ottawa, ON K1N 6N5, Canada Abstract With the introduction of social media, e-commerce is being transformed from product-centered to a customer-centered social environment. Such changes strengthen customer relationships, increase traffic to e-commerce websites, generate new business opportunities, and support product and brand development. Although a variety of social media tools have been used on current e-commerce platforms, the social features of those tools are not well understood. Without a clear understanding of their social features, social media tools may not achieve their expected design goals. To this end, this study examines a selection of e-commerce websites, identifying existing social media tools, then grouping them into five social feature categories, namely social connection, social communities, social media marketing, social shopping and social application. To leverage these social features, some implementation issues are discussed. This contributes to understanding social design features, and supports designers in developing more social, collaborative and interactive e-commerce systems. Keywords: social media, web 2.0, e-commerce, social commerce 1. INTRODUCTION better engage customer participation and support business development. More specifically, With the extensive use of web technologies, today, it is no longer enough for customers to thousands of e-commerce websites become shop online in the traditional way. Indeed, they accessible via wired and wireless Internet, expect a more social, interactive, and providing a wide range of business services. collaborative online experience, where collective Such a fast growth rises from the way that e- intelligence can be aggregated and used to commerce has dramatically changed the support problem solving and decision making traditional business environment to improve (Dennison et al. 2009). Business organizations user access and business service delivery. on the other hand are looking for new ways to However, with the increasing demands for strengthen business relationships, identify new services and applications from both customers business opportunities and support product and and business organizations, e-commerce is brand development (Breslauer et al. 2009). facing new challenges. One of them is how to _________________________________________________ ©2012 EDSIG (Education Special Interest Group of the AITP) Page 1 www.aitp-edsig.org 2012 Proceedings of the Conference on Information Systems Applied Research ISSN: 2167-1508 New Orleans Louisiana, USA v5 n2235 _________________________________________________ Social media applications seem to naturally 2. RELATED WORK support the e-commerce evolution. For instance, wikis enable multiple users to work Social commerce is a recent phenomenon collaboratively, encouraging them to generate (Stephen & Toubia 2009), covering a wide range content and share it with online networked of disciplines, such as computer science, people (Murugesan 2007). Forums allow users to sociology and economy (Lee et al. 2008). As create topics or hold conversations in the form such, there is no universally accepted definition. of posted messages, presenting perceptions, It can be simply defined as an the integration of exchanging ideas and expressing satisfactions social media with e-commerce (Jascanu et al. (Serrano & Torres 2010). More significantly, 2007). However, many studies define it social media applications benefit businesses in differently, focusing on various perspectives. For product development, market trend prediction example, Constantinides and Fountain (2008) and sales increases (Constantinides et al. 2008). addressed the economic viewpoint, describing For instance, Threadless.com leverages a peer social commerce as a new application in online community to motivate users to submit ideas for marketplaces, where business organizations T-shirt design, and the best designs are selected leverage social media or web 2.0 as a direct as a part of products. Amazon tracks a user’s marketing tool to support customers’ decision preferences and online behavior to suggest making processes and buying behavior. Other products to other users. Moreover, iTunes social commerce definitions are presented in utilizes forums and discussion boards to Table 1 (see appendix). Despite these diverse understand customers’ interests and recommend definitions, it can be argued that the relevant products to them. In this aspect, fundamental idea behind social commerce is to utilizing social media tools in e-commerce apply social media to e-commerce systems appears to be a new trend commonly referred to (Dennison et al. 2009). as social commerce (Serrano & Torres 2010). However, although a variety of social media Social commerce is increasingly drawing the tools have been implemented on e-commerce attention of academia. A number of studies have websites, challenges for social commerce design been carried out to explore the impact of using still exists. In particular, it is not enough to social media tools on business applications and simply clone social media tools from one e- strategies. For instance, Serrano and Torres commerce website to another. There is a need (2010) investigated social media applications in to understand social features behind social ERP products and the results show that utilizing media tools. Social features refer to the social media tools significantly improves social characteristics of social media applications in e- and collaborative capabilities in business commerce. This study aims to examine a sample processes. Constantinides and Fountain (2008) of current e-commerce websites, identifying explored the effects of social media on existing social media tools. Based on the key marketing. The study addressed the importance features of the identified social media tools, we of using social media as a direct marketing tool group them into categories. This can improve in a company’s commercial strategy. the understanding of social commerce, and Furthermore, social media increases user power, guide designers in adding appropriate social extending the experience and knowledge of media tools to e-commerce systems. customers as participants in the business and social process, and transforming a market for This paper is structured as follows: Section 2 products and services into a social and user- introduces the concept of social commerce. centred environment (Wigand et al. 2008). Subsequently, the research method is detailed in Section 3. Section 4 presents the findings, Many studies have demonstrated the significant identifying a number of social media tools. impact of social media on consumer interaction Based on the key features of these tools, a set and decision making. Grange and Benbasat of social features are proposed in Section 5. (2010) examined the effects of social media Implementation issues are discussed in Section design in online shopping websites on customer 6. Finally, a brief conclusion is provided and purchase behaviours. The study found a set of future studies are suggested in Sections 7 and 8 social design features that significantly influence respectively. customers’ interaction, including a list of favourite products, a list of online shopping friends, product reviews and customers’ profile. In addition, a study by Kim and Srivastava _________________________________________________ ©2012 EDSIG (Education Special Interest Group of the AITP) Page 2 www.aitp-edsig.org 2012 Proceedings of the Conference on Information Systems Applied Research ISSN: 2167-1508 New Orleans Louisiana, USA v5 n2235 _________________________________________________ (2007) investigated the impact of social features assigned five reviewers to evaluate the selected on customer purchase decision making in e- twenty e-commerce websites one by one. These commerce. The results show that sharing reviewers were information systems researchers customer experiences through providing and computer science graduate students at the feedback, rating reviews and chatting among University of Ottawa. They all had good members are important social design features to knowledge of social media applications and long help customers make better decisions. This is term experiences using e-commerce websites. also supported by De Bruyn and Lilien (2008), The evaluation was split up into small sessions, who conducted a study to explore customer each focusing on a particular part of the target influence, focusing on the decision making e-commerce websites. Two types of evaluation process in e-marketplaces. The findings show techniques were implemented: free review and that the different stages of customer decision task-based interaction. Free review allows the making, including need recognition, product reviewers to freely look at the target websites so evaluation and final purchase are largely that a general perception and initial interaction supported by social networking power. are developed. Task-based interaction requires the reviewers to complete a set of simple Since the benefits of using social media in e- practical tasks, such as information search and commerce became known, the industry sector,