subject: Social Ecommerce Fusion Of Social Networking And Electronic Commerce [print this page] The field of IT leaves its users surprised every other day. The computer was considered a mega invention some time ago. However, this mega invention has and will lead to many other super mega creations. Social networking came with a bang! Everybody was thrilled by the idea and that is the reason why social networking sites reached their hypes and peaks. On the other hand, e-commerce defined new parameters of conducting business and commerce; an idea that gave birth to millions of millionaire entrepreneurs.
The New Look of Word-of-Mouth
Word of mouth wasnt enough because of something even bigger awaiting its entry. Social ecommerce is a blend of its founding stones, i.e. social networking and electronic commerce. It is defined as social communication and user involvement that aid in the process of trading goods and services online. For instance, users may refer certain sellers or brands, write reviews for products they use, and recommend services they avail. In short, they spread through word of mouth. Consequently, products and services attain commercial promotion through social networking.
Psychologically Effective
As a matter of fact, customers and consumers trust their friends and family much more than they trust the manufacturers self promotion. Human psychology suggests that it is not the brand or company that customers trust. Instead, they trust other people who refer those brands or companies. Another psychological aspect with reference to social shopping sites is that the most promoted is the most trusted. Be it negative promotion or positive, users and readers eventually start believing in it.
If a brand repeatedly receives favorable reviews on social shopping sites, customers believe it to be true; whereas unfavorable reviews lead to declines in sales. It is important to note here that in reality the case might be totally different; for instance, an effective brand being promoted as a least effective and useless brand as opposed to the ideal one. Though the example above may sound extreme, it actually is the case. The reason being that people trust people not products! Irrespective of a 360 degree marketing campaign by the company, actual customer reviews prior to purchase are more effective both psychologically and logically.
In short, social ecommerce is a blessing in todays fast and competitive market spaces. It is also convenient and resource effective as compared to the traditional brick and mortar physical market places. The concept of buying and selling will soon reshape the worlds paradigm.
