Electronic Commerce 2012 Managerial

and Social Networks Perspectives 7th

Edition Turban Solutions Manual
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 Turban- Electronic Commerce 2012
Instructor’s Manual

Chapter 7
SOCIAL COMMERCE
Learning Objectives
Upon completion of this chapter, you will be able to:
1. Understand the Web 2.0 revolution, its characteristics and the context of social media.
2. Describe the fundamentals of social commerce, its drivers and landscape.
3. Describe the major models of social shopping.
4. Explain how advertising and promotions are conducted in social networking
environments.
5. Understand how market research is conducted in social networking environments.
6. Describe how customer service, customer support, and CRM can be facilitated by
social networking.
7. Describe the major social commerce activities that can be conducted within and by
enterprises.
8. Define crowdsourcing and describe its use in social commerce.
9. Describe the commercial applications conducted in virtual worlds in general and in
Second Life in particular.
10. Review the social commerce activities and relationship with e-entertainment and
gaming.
11. Describe and discuss the major implementation issues of social commerce including
strategy, security, and ROI.
12. Understand the major risks, concerns, and barriers of deploying social commerce
applications.

Content
Opening Case: How Starbucks Drives Millions to Its Coffee Shops Using Social Media
7.1 The Web 2.0 and Social Media Revolution
7.2 The Fundamentals of Social Commerce and Social Networking
7.3 Social Shopping: Concepts, Benefits, and Models
7.4 Social Advertising: From Viral Advertising to Location-Based
Advertisement/Marketing
7.5 Market Research and Strategy in Social Networks
7.6 Social Customer Service and CRM
7.7 Enterprise Applications: From Community Building to Collaboration
7.8 Crowdsourcing: Collaborative Intelligence for Problem Solving and Content
Creation
7.9 Social Commerce: Applications in Virtual Worlds
7.10 Entertainment, Multimedia Sharing, and Social Games
7.11 Justification, Risks, Other Implementation Issues, and Strategy
Managerial Issues
Closing Case: F-Commerce: Business Activities on Facebook

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Answers to Pause/Break Section Review Questions

Section 7.1 Review

1. Differentiate Web 2.0 from the traditional Web.

Important features of Web 2.0 that are related to social commerce are the technology’s
dynamic content, rich user experiences, metadata, scalability, open source basis, and
user’s freedom.

2. List five major characteristics of Web 2.0 and briefly discuss them.

These characteristics are presented in Online File W1.3.

3. What is user-generated content? Why is it an important concept?

User-generated content is created by end-users. It allows the users to express themselves,

but also generates interest and traffic that a business can use.

4. Why is Web 2.0 considered a revolution?

Web 2.0 tools (social software) and social networks are changing the way people
communicate, collaborate, work, and live; the change is very rapid and significant, so we
can classify it as a revolution.

5. Define social media, social marketing, social capital, and social media marketing.

• Social media – The online platforms and tools that people use to share opinions,
experiences, insights, perceptions, and various media, including photos, videos, and
music, with each other
• Social marketing – A combination of social policy and marketing practices to achieve
a set of social behavioral goals within a target audience
• Social capital – A sociological concept that refers to connections within and between
social networks. The core idea is that social networks have value. Just as physical
capital or human capital can increase productivity (both individual and collective), so
can social contacts affect the productivity of individuals and groups.
• Social media marketing – A term that describes use of social media platforms such as
networks, online communities, blogs, wikis, or any other online collaborative media
for marketing, market research, sales, CRM, and customer service. It may incorporate
ideas and concepts from social capital, Web 2.0, social media, and social marketing.

6. Distinguish between social networking and social network sites.

The difference is the activity (social networking) versus the location (social networking
sites).

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7. List the major social networking spaces.

These spaces are listed with examples on page 303.

8. Describe the social graph.

A term coined by Mark Zuckerberg of Facebook, which originally referred to the social
network of relationships between users of the social networking service provided by
Facebook. The idea was for Facebook to benefit from the social graph by taking
advantage of the relationships between individuals that Facebook provides, to offer a
richer online experience. This definition was expanded to refer to a social graph of all
Internet users.

Section 7.2 Review

1. Define social commerce.

The delivery of e-commerce activities and transactions through social networks and/or
via Web 2.0 software.

2. List some major origins of social commerce (per Exhibit 7.2).

Origins are detailed in Exhibit 7.2. Examples include the growth of social networks, e-
commerce and marketing.

3. List the major blocks in the landscape of social commerce.

Representative risk factors are: difficulties in justification, security and privacy issues,
possibilities of fraud, integration with existing IT systems, legal concerns, quality of
UGC, and a waste of time by community members.

4. List five benefits of social commerce to the consumer and five to vendors.

Many benefits are listed in Exhibit 7.4.

5. Describe mobile social commerce.

Members converse and connect with one another using cell phones or other mobile
devices.

Section 7.3 Review

1. Define social shopping and describe its drivers.

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A method of e-commerce where shoppers’ friends become involved in the shopping

experience. Social shopping attempts to use technology to mimic the social interactions
found in physical malls and stores.

2. List the major benefits of social shopping.

• You can discover products/services you never knew existed (e.g., see this next.com).
• You can interact with vendor (brand) representatives (e.g., feature available at
stylehive.com/blog).
• Your confidence and trust in online shopping increases.
• You can get super deals via group buying, daily specials, and more. Join Groupon just
to see the super deals.
• You can exchange shopping tips with your friends, fans, and others.
• You can build and share wish lists.
• You can have camaraderie shopping with peers with similar tastes.
• You can learn from others’ experience.
• You can get simplified comparisons, even in real-time.

3. List the major models of social shopping. Briefly describe their function.

• Social recommendations, ratings and reviews, comparisons, and conversations

• Group buying and shopping together
• Deal purchases (flash sales), such as daily deals
• Shopping communities and clubs
• Peer-to-peer models (e.g., money lending)
• Location-based shopping (presented in Section 7.4)
• F-commerce; shopping at Facebook (see this chapter’s closing case)
• Shopping with Twitter
• Other innovative models

4. Describe ratings, reviews, and recommendations.

This is user generated content about a product or service.

5. How are ratings and reviews being conducted?

In many cases, they are entered online by consumers.

6. Relate recommendations to social reviews and ratings.

These are closely related to ratings and reviews and are sometimes integrated with them.

7. Describe social marketplaces and direct sales.

Social marketplace – An online community that harnesses the power of one’s social
networks for the introduction, buying, and selling of products, services, and resources,

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including one’s own creations. Also may refer to a structure that resembles a social
network but is focused on individual members.

This marketplace allows for direct sales, leaving out a distributor.

8. Define group buying. How does it work with flash deals? (Hint: Groupon.)

A group must choose to purchase a volume of goods/services that is enough to incent the
seller to sell at a reduced price.

9. Define social communities and social clubs as they relate to marketing. How do they
work?

These are affinity groups, and they can be marketed to as a niche. They may participate
in group buys, or may represent a specialized market.

10. Describe Kaboodle.

Kaboodle is the largest social community. It is a free service that lets users collect
information from the Web and store it on a Kaboodle list that can be shared with others.

11. Define social marketplaces. What is going on there?

An online community that harnesses the power of one’s social networks for the
introduction, buying, and selling of products, services, and resources, including one’s
own creations. Also may refer to a structure that resembles a social network but is
focused on individual members.

12. What is the future of social shopping?

Opinions will vary, but many may focus on new technologies or integrations of existing
technologies/services.

Section 7.4 Review

1. Describe advertisement in social commerce.

Advertisement in social sites is an attempt to capitalize on the potential customer base.

These ads help to provide revenue to the social sites.

2. Define social ads and social apps.

• Social ads – Advertisement placed in paid-for media space on social media platforms
such as Facebook, YouTube, and Twitter, as well as on blogs and forums
• Social apps – Branded online applications that support social interactions and user
contributions

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3. Define viral marketing.

Word-of-mouth (WOM) method by which customers promote a product (service) by

telling others (frequently their friends) about it.

4. Describe viral blogging.

Viral (word-of-mouth) marketing done by bloggers.

5. Define geolocation and geosocial networks.

• Geolocation – The identification of the real-world geographic location of an Internet-

connected computer, mobile device, Web site visitor, or other
• Geosocial networking – A type of social networking in which geographic services
and capabilities such as geocoding and geotagging are used to enable additional social
dynamics

6. How does location-based advertising work?

LBS reports a user’s position using GPS. This data is then applied to listings on
advertisers near that location. Adds for businesses near the user are then provided to the
user.

7. Describe how Foursquare works.

Foursquare can find your location and tell your friends where they can find you.

8. List some concerns of LBS advertising.

Some concerns include privacy concerns, especially if users have not opted-in.

9. Describe viral videos.

Any video that is passed electronically, from person to person, regardless of its content.

10. How is Twitter used for advertisement?

It is generally used to create word-of-month about a product or service.

11. Describe mobile advertisement.

Advertisements on cell phones and other mobile devices

Section 7.5 Review

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1. How can a social network be used to conduct market research?

It allows the marketer to directly access feedback and perceptions of users from a social
networking site.

2. How is conversational marketing used for market research?

Using Web 2.0 tools, marketers solicit feedback from users.

3. Describe social analytics.

Gathering and analyzing data from social networking sites.

4. Define and describe social intelligence.

Social intelligence refers to the ability of humans to interact with each other effectively.

5. What is data, text, and Web mining used for?

These techniques are used to find partners in customer perceptions.

6. What can be mined in social media?

A variety of types of customer perceptions.

7. How is Facebook used for market research?

Examples include evaluating feedback, marketing mixes, test marketing and surveys.

8. How is Twitter used for market research?

Examples include evaluating posts, finding opinion makers and evaluating trends.

Section 7.6 Review

1. Define social customers and describe their properties.

Members of social networks who do social shopping and understand their rights and how
to use the wisdom and power of crowdsourcing and communities to their benefit.

2. Why and how are customers empowered by social networks?

It gives customers access to a large amounts of information and unbiased reviews.

3. What are the needs of social customers?

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Social customers need to feel empowered, and need to be able to contribute their
opinions.

4. How are these needs fulfilled?

Sites or firms associated with social networks provide access to information and the
ability to contribute.

5. Describe social CRM; how does it differ from traditional CRM?

Social CRM is a customer engagement strategy in support of companies’ defined goals

that attempts to optimize the customer experience. Generally social tools are used,
allowing for interaction between both the customer and company as well as between
customers. Traditional CRM focuses primarily on customer-company interactions and
stores only customer information.

Section 7.7 Review

1. Define a business network and an enterprise social network.

• Business social network – A social network whose primary objective is to facilitate

business connections and activities
• Enterprise social network – A business network focused on a single company

2. List various categories of enterprise applications in social networks.

• To build better customer and employee relationships

• To increase revenue
• To facilitate recruiting and retention
• To increase business and marketing opportunities
• To build and nurture a community
• To reduce operation and travel costs
• To improve knowledge management (increase speed and access to knowledge)
• To gain expert advice (internally and externally)
• To improve knowledge management
• To reduce communication and improve collaboration

3. What are the benefits of enterprise social networking for companies? For employees?

Companies are able to distribute information and build a corporate culture. Employees
are able to learn and interact with their colleagues.

4. Define public business-oriented network. Provide an example.

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A social network that is open to the public, but focused on business activities. LinkedIn
is an example.

5. What is an entrepreneur network?

A business social network focused on entrepreneurial activities.

6. What are the major features of effective enterprise social networking?

These features are listed on pages 342 and 343.

7. Describe IBM’s SocialBlue.

IBM’s SocialBlue is an internal social networking site that gives IBM employees a rich
connection to the people they work with on both a personal and a professional level.

8. List all the ways that an organization can interface with social networking.

Companies can use social tools in a wide variety of ways. These are summarized on
pages 345 and 346.

9. List social networking applications in HRM.

Social networking applications can be used within HRM to assist in finding and
recruiting workers, as well as training them.

10. How can social networking facilitate problem solving?

The systems can connect individuals within an organization, making it easier for them to
work together.

11. Relate social networking to knowledge management.

Social tools can be used to collect, store and deliver knowledge needed within an
organization.

Section 7.8 Review

1. Define crowdsourcing; provide four examples.

The act of outsourcing tasks, traditionally performed by an employee or contractor, to an

undefined, large group of people or community (a “crowd”), through an open call.
Examples of applications include using groups to create content, solve problems, or even
do research and development.

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2. List Howe’s four categories of applications.

1. Collective intelligence
2. Crowd creation
3. Crowd voting
4. Crowd supporting and funding

3. What are the major benefits of crowdsourcing? (List five to seven benefits.)

• Problems can be explored at comparatively little cost, and often very quickly.
• Payment is by results or even omitted.
• The organization can tap a wider range of talent than might be present in its own
organization.
• By listening to the crowd, organizations gain firsthand insight on their customers’
desires.
• The community may feel a brand-building kinship with the crowdsourcing
organization, which is the result of an earned sense of ownership through contribution
and collaboration.
• Crowdsourcing taps into the global world of ideas, helping companies work through a
rapid design process.

4. Describe the crowdsourcing process.

1. Identify the issue (problem) you want to investigate or solve.

2. Identify the target crowd.
3. Broadcast to the unknown crowd.
4. Engage the crowd in an innovative and creative process (e.g., idea generation).
5. User-generated content is then submitted. (This may include submission of
opinions, voting, new ideas, suggestions, and so forth).
6. Evaluate the submitted material—by the initiator of the request or by the crowd
(voting on the submitted content or on a few finalists selected by the company).

5. List some issues and concerns regarding crowdsourcing implementation.

Many concerns exist including the role of individuals within the crowd and the overall
reliability of answers generated. The text lists several other issues on page 355.

6. Why is Wikipedia considered crowdsourcing?

Wikipedia is crowdsourcing because it relies on the public to help create and edit its
entries.

Section 7.9 Review

1. What are the features of virtual worlds that businesses can make use of in deploying
their virtual world applications?

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• Shared space
• 3-D visualization (graphical user interface)
• Immediacy
• Interactivity
• Persistence
• Socialization and community formation

2. From a business application perspective, virtual worlds can be visualized as a

multidimensional space. Briefly describe different dimensions of virtual world space.
• Social space
• Entertainment space
• Transaction space
• Experimental/demonstration space
• Collaboration space
• Smart agents space
• Fantasy space

3. Outline a few examples of business applications of virtual worlds.

The text outlines several applications beginning on page 358. Some examples include
storefronts, advertising and content creation.

4. Discuss different ways of making real or virtual money in virtual worlds (see also
Chapters 1 and 2).

A variety of methods exist and include direct sales of tangible goods, direct sales of
intangible goods, service subscriptions, and fees for services.

5. What kind of educational and training activities do virtual worlds such as Second Life
support?

• Simulation
• Distance Learning
• Class Meetings
• Exploration
• Visualization
• Imaginative Scenarios
• Information Dissemination

6. What are the major concerns and limitations of virtual worlds?

• Slow adoption
• Technically difficult to develop in
• Fraud and security issues

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• Performance issues

Section 7.10 Review

1. Relate entertainment to social commerce.

Entertainment can be used as a driver for commerce, or paying for entertainment can be
commerce itself.

2. Describe Mixi, Last.fm, and Pandora.

All of these services provide online music streaming.

3. Describe eFan, Hulu, Moontoast, and Funny or Die.

All of these services provide streaming of video content.

4. Relate the iPhone to entertainment on the Web.

iPhones provide easy access to web-content without a computer.

5. Define social games; what types do you recognize?

A video game played in a social network. Students will recognize a variety of games.

6. Describe social games in social networks.

Some social games are available within social networks. These games help to draw users
back to the network and allow users to play with others.

7. What are some of the business (commerce) aspects of social games?

These games can either provide direct revenue to the developer/network or provide a
draw to the network.

Section 7.11 Review

1. List some major implementation issues.

Implementation can be complex. Issues may include technical challenges,

marketing/adoption challenges and service/support challenges.

2. List some difficulties in SC justification.

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Some examples include difficulty in quantifying the market and potential benefits, as
well as the threat of completion in a fast-moving area.

3. Solis’s Compass includes four components. List two in each category and briefly
describe them (consult Online File W7.6).

The compass includes emotions, channels, platforms, and players.

• Emotions
o Empathy – understanding another
o Empowerment – providing authority
• Channels
o Syndication – one to many
o Aggregation – many to one
• Platforms
o Mobile – all mobile apps
o Blogs – provide quick information
• Players
o Advocates/stakeholders – hold a stake in the brand
o Bloggers/market makers – help shape brand perception

4. List and briefly describe three risk factors (consult Online File W 7.7).

• User comments may not be positive and this cannot be controlled

• A small number of users may become a huge support draw
• A small group may control the larger group

5. List the major elements in a successful implementation strategy for social commerce.

1. Learn and understand the environment inside and outside the organization.
2. Experiment with a small-scale project so you can observe and learn.
3. Assess the results of the experiment.
4. Develop or abandon the project.

Answers to EC Application Case Questions

EC Application Case 7.1: REVENUE SOURCES AT

YOUTUBE
Questions

1. Enter linkedin.com and explore. Why do you think the site is so successful?

Student opinions will vary, but should be based on the robust number of features
available.

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2. What features are related to recruiting and job finding?

Several exist including profiles indicating interest, and the ability to potentially contact
out-of-network prospects or employers.

3. How does “LinkedIn Answers” work? Try to use it by posting a query. Report the
results.

Student experiences will vary based on the type of question asked.

4. Conduct an investigation to find the revenue model of the company.

Student responses will vary. Major revenue appears to come from advertisements,
partnerships and subscription sales.

5. Several companies have attempted to clone LinkedIn with little success. Why do you
think LinkedIn is dominating?

Student opinions will vary, but it could be the network effect of LinkedIn’s large user
base.

EC Application Case 7.2: WIKIPEDIA

Questions

1. Wikipedia is a nonprofit organization. Search and find its revenue model.

Currently donations are the major model.

2. What drives Wikipedia?

The company desires to provide freely-available knowledge.

3. Discuss the issue of quality—the problems and solutions.

The issue of quality relates to crowdsourcing content – while the content is diverse and
free, it is limited by the ability of contributors. One solution is the editorial board.

4. Research the problem of copyright.

Student research will vary, but the primary issue is the posting or use of content that
does not belong to the poster.

5. Research the relationship between Wikipedia and Wikia.

Wikia is the wiki software used by Wikipedia..

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EC Application Case 7.3: REVENUE SOURCES AT

YOUTUBE
Questions

1. List the different advertising models on YouTube.

Examples include text ads, in-video ads, and fees for brand-based content.

2. List the success factors from these cases.

Factors include the size of the user base, the ability to market to specific groups, and the
social networks involved.

3. What are the benefits for the advertisers?

They are able to tap the customers using the system and target advertising.

Answers to Discussion Questions

1. How do business-oriented networks and enterprise social networks differ.

The difference is in their focus, based on a business area or specific company and their
openness.

2. Discuss the potential business use of Twitter (by major categories).

Twitter can be used to both distribute information and create word-of-mouth about a
business, product or service.

3. What are some of the risks companies may face if they decide to use public social
networks?

Student examples will vary, but will focus on the public nature of these groups and the
difficulty in controlling what is said.

4. Discuss the role of crowdsourcing in idea generation and market research.

Crowdsourcing can be used to help identify new trends, needs and customer
perceptions. These new ideas can then be translated into products and services.

5. How can marketers use social networks for viral marketing?

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Marketers can take advantage of the user-base of a social networking system to help
easily spread viral marketing items.

6. Why are advertisers so interested in social networks?

They represent an emerging new marketing channel.

7. Compare group buying to shopping together.

Group buying requires the group to make the same selection, while shopping together
only requires the group to be in the same location.

8. Identify and discuss Facebook’s revenue model.

The model is based on secondary income streams, like advertising.

9. Corporate social networking: Booster or time-waster? What are the pitfalls of

enterprise social networking? Discuss.

Student perceptions and responses will vary. Students will likely discuss the benefits of
additional exposure, but will also focus on costs and possible negative consequences.

10. Review any two Socialcast user case studies at

socialcast.com/resources/customer_stories.html and discuss the following:
a. What benefits the companies that embraced Socialcast have realized.
b. Lessons learned from these cases.

Student perceptions and responses will vary based on who they select.

11. Review the features of Socialtext (socialtext.com). Discuss how you would make use
of this platform in a small enterprise in retail, manufacturing, or financial services.

Student perceptions and responses will vary based on the potential application.

12. Enter youtubetrafficsystem.net. Watch the video case “How Sam Got to the Top”
(video 3). Discuss how Sam drove 3.5 million viewers to watch his fitness video.

Student perceptions and responses will vary based on their opinions of the tactics used.

13. What real value do virtual worlds present to commercial users and businesses?

Social worlds provide both a new market location for businesses, as well as a new
market category of goods and services.

14. Enter thesocialcustomer.com. Pick five posts and discuss each briefly.

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Answers will vary based on topics selected.

15. How can crowdsourcing reduce risks to merchants?

It can allow merchants to more easily test market goods and advertising to make the
optimum selection.

Topics for Class Discussion and Debates

1. The crowdsourcing model works well with designers like this: (1) Come up with
something that you need designing for. (2) Turn it into a competition between amateur
and professional designers. (3) Decide on a winner, either by vote or executive decision.
This is all at little to no cost for the person looking for the design. Now, think about the
future of the graphic industry in general. What will be the fate of large design firms that
are competing for the business of high-profile clients when the clients are now paying
tiny, one-time fees to amateur designers? Is basing your business on crowdsourcing a
viable model? Discuss.

Student opinions will vary. The crowdsourcing model hurts existing firms, but large-
scale crowdsourcing may not be viable.

2. Discuss the business value of social networking. As a start, read Tom Davenport’s
“Where’s the ‘Working’ in Social Networks”
(blogs.harvardbusiness.org/davenport/2007/10/wheres_the_working_in_social_n.html)
and Brett Bonfield’s “Should Your Organization Use Social Networking Sites”
(techsoup.org/learningcenter/internet/page7935.cfm).

Student opinions will vary. The discussion will center on the benefits of social
networking versus the cost of time to the business.

3. What are the potential major legal issues that business applications in virtual worlds
might encounter? Refer to online resources, including the Virtual World Law blog
virtualworldlaw.com.

Student opinions will vary. New issues are being identified, but one of the largest is
jurisdiction.

4. Idea generation by the employees or customers using crowdsourcing is becoming

popular. Some say it is only an electronic suggestion box. Others disagree. Discuss.

Student opinions will vary. The debate will focus on how helpful crowdsourcing can be,
and if it can be used to develop an idea fully.

5. Despite the promise of virtual worlds and the increased computing and graphic
capabilities of personal computers, high-speed Internet access, and corporate interest in

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exploiting these worlds, why have virtual worlds not taken off, been adopted, or used
widely. (Compare for example with Facebook, Twitter, blogs, or wikis.) What aspects
hinder their adoption? What are the critical success factors? Discuss.

Student opinions will vary based on their perceptions. Some issues with adoption include
the learning curve and benefits to the user.

6. Read the Bernoff and Schadler article “Empowered: In a World Where One Angry
Tweet Can Torpedo a Brand, Corporations Need to Unleash Their Employees to Fight
Back.” Then, discuss the top strategies employed by Best Buy including Twelpforce. Also
discuss how other companies empower employees.

Student opinions will vary. The issue centers on corporate control of messaging versus
the ablity to enlist employees to help.

7. Debate: Should companies build in-house social networks for external activities (e.g.,
marketing, CRM) or use existing public social networks?

Student opinions will vary. The debate will focus on the issues of control versus network
size.

8. Debate: Some research suggests that the use of public social networks by employees
can be good for a business because employees develop relationships and share
information, which increases productivity and innovation. Others say it is a waste of time
and ban the use of Facebook, YouTube, and other such sites.

Student opinions will vary. The discussion will center on the benefits of social
networking versus the cost of time to the business.

9. Debate: Do Facebook privacy concerns really require government regulations?

(Consult Prince 2010.)

Student opinions will vary based on perceptions of required privacy.

10. Debate the pros and cons of the following: In order to control content and employee
time, Manchester United and other companies do not allow employees to generate any
content on its private social network site nor on public ones (e.g., Facebook).

Student opinions will vary. The discussion will center on the benefits of social
networking versus the cost of time to the business.

Internet Exercises
(Note: URLs may change over time; please check the Internet Exercises on the
Turban Web site for possible updates: www.pearsonhighered.com/turban.)

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1. Enter the Web site of a social network service (e.g., myspace.com or facebook.com).
Build a homepage. Add a chat room and a message board to your site using the free tools
provided. Describe the other capabilities available. Make at least five new friends.

Student experiences and perceptions will vary based on the service selected.

2. Enter vivapets.com and dogster.com and compare their offerings.

Student reports will vary – both sites sell toys for pets.

3. Enter twitter.com, facebook.com, and linkedin.com and list the major sources of
revenue for each.

Student reports will vary. All appear to be supported by secondary advertising and
partnership revenue.

4. Enter xing.com and linkedin.com and compare their functionalities (capabilities). Also,
enter ryze.com and view the video tutorial on networking. Compare Ryze’s capabilities
with those of LinkedIn.com. Write a report.

Student reports will vary based on what features are selected.

5. Enter chicstar.com. Why is it an online entertainment service? What are the benefits to
viewers? Compare this site to starz.com.

Student experiences and perceptions will vary.

6. Enter advertising.com. Find the innovative/scientific methods that are offered and
related to social commerce.

Student experiences and perceptions will vary. Several articles are available.

7. Enter the paulgillin.com blog and find information related to enterprise applications of
social commerce technologies. Write a report.

Student reports will vary based on the content selected.

8. Enter pandora.com. Find out how you can create and share music with friends. Why is
this a social commerce application?

Student experiences and perceptions will vary. The system is social since it allows
sharing.

9. Enter webkinz.com and compare its activities to that of facebook.com. Enter nielsen-
online.com and find the average stay time on both social network sites.

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Student findings will vary based on the time of the review.

10. Enter smartmobs.com. Go to the blogroll. Find three blogs related to social
commerce, and summarize their major features.

Student experiences and perceptions will vary based on which blogs are selected.

11. Enter mashable.com and review the latest news regarding social networks and
network strategy. Right a report.

Student reports will vary based on when the review is completed.

12. Enter usocial.com and softcity.com. Identify all the methods/tools they offer to
increase social engagement/marketing and advertising. Write a report.

Student reports will vary based on the features compared.

13. Enter comblu.com. Explore its products and discuss the role of a social marketing
dashboard.

Student experiences and perceptions will vary. Comblu is a social marketing company.

14. Enter secondlife.com and find the commercial activities of the following avatars:
Fizik Baskerville, Craig Altman, Shaun Altman, FlipperPA Peregrine, and Anshe Chung.
Describe briefly what they represent.

Student experiences and perceptions will vary. Results will be based on when the report
is completed.

15. Enter crmbuyer.com/edpick/69895.html and identify five strategies suggested for

improved customer service.

Student reports will vary. Trust and customer care are featured.

16. Enter thisnext.com. What are the features of the site. What do you like? Dislike?

Student experiences and perceptions will vary.

17. Enter en.wikipedia.org/wiki/Mixi and look at mixi’s features that are similar to those
offered by other social networks. Relate it to online entertainment.

Student reports will vary based on which networks are compared.

18. Enter ning.com. Explore its capabilities and discuss how it is related to social
network sites.

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Student experiences and perceptions will vary. The site allows you to create your own
network.

19. Enter fordstory.com. Find what is going on there. Also, watch the Fiesta video. Write
a report.

Student reports will vary based on their perceptions of the products.

20. Enter bazaarvoice.com. Summarize its major services. Examine SocialConnect and
TweetConnect in particular.

Student experiences and perceptions will vary.

21. Enter blippy.com and find the services it provides to customers.

Student reports will vary, services offered are currently expanding.

22. Enter ehow.com and find “How to Use Twitter to Conduct Market Research.” Follow
instructions on a topic related to social commerce. Write a report.

Student reports will vary based on individual research.

Team Assignments and Role Playing

1. Assignment for the Opening Case
Read the opening case, find some new material about Starbucks and social commerce
and answer the following questions:
a. Why is Starbucks putting such an emphasis on social media?

It views it as a primary advertising method for its target market.

b. List the specific social networking activities done by the company.

Examples include Facebook, LinkedIn, Twitter, YouTube/Flicker and Foursquare.

c. What are the differences and similarities between Starbucks’ own social
network and its pages on Facebook, LinkedIn, and other social networks?

It provides services specific to its business and its content. These services are
similar to services on other networks, but the Starbucks’ social network lacks
many of the features other provide.

d. Why did Starbucks fail with Foursquare?

The company did not understand or utilize the benefits of the system.

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e. How are ideas generated at My Starbucks Idea? By whom?

It allows suggestions from customers.

f. What did you learn about social media strategy?

Student responses will vary.

2. Each group is assigned to a social network that has business activities on it (e.g.,
LinkedIn, Xing, Facebook, Second Life, etc.). Each group will then register with
hellotxt.com to find out what is going on in the site with regard to recent business
activities. Write a report and make a class presentation. With Hello TXT, you log on to
the site and enter your text message into the dashboard. You then select the sites you
want to update with your new status message, and Hello TXT does the rest, reaching out
to your various pages to add your new status message. It is a great centralized way to
keep all your various profiles as up-to-date as possible, and it is designed to update your
LinkedIn status by answering the question “What are you working on?”

Student reports will vary based on the network assigned.

3. Facebook is increasingly offering marketing tools (e.g., Open Graph, Social Plug-ins).
Identify all the tools offered. Each group concentrates on the implication in one of the
following areas: advertising and search engine optimization (SEO), shopping, market
research, customer service, CRM, and others. Make a class presentation.

Student reports will vary based on the time of the report and the tools selected.

4. Your group signs in to secondlife.com and creates an avatar(s). Each member is

assigned to explore a certain business area (e.g., virtual real estate, educational
activities, tourism). Make sure the avatar interacts with other people’s avatars. Write a
report.

Student reports will vary based on the research conducted.

5. Each group adopts one or two of the following companies that actively advertise and
engage on Facebook and Twitter: Coca-Cola, Starbucks, Ford, Pepsi, Disney, Victoria’s
Secret, iTunes, Toyota, Sony, or P&G. Find what advertisement methods they use and
how they do their campaigns.

Student reports will vary based on the company profiled.

6. Watch the tutorial video “Doing Business in Second Life” (blip.tv/file/24281), and
answer:
a. What can you do commercially on SL?
b. How much will it cost you?

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c. How can you attract people to your SL page?

d. What can you do there that you cannot do on Facebook or Twitter?
e. What are the major benefits to companies? Consumers?
f. What is the downside?
g. What are IBM, Dell, and Coke doing in SL?

Student reports will vary. This is an interesting video with details that students will
respond to differently.

7. Enter ehow.com/how_4630584_advertise-secondlife-event.html and read the article

“How to Advertise a ‘Second Life’ Event.” Follow the instructions and advertise a
restaurant of your choice. Write a report. Relate your work to the following SL features:
affiliate program, Second Life Marketplace, blogs, and forums. Also look at
secondlife.com/shop/learn. Write a report.

Student reports will vary based on the research conducted.

8. Have the group research the issue of “How Levi’s and Facebook Prompt Your Friends
to Improve Your Buying Experience.” Start with web-
strategist.com/blog/2010/04/30/social-commerce-breakdownhow-levis-and-facebook-
prompt-your-friends-toget-
you-to-buy. Find out why Levi’s is considered to be at level 6 or 7 while most brands are
still at level 1. See also store.levi.com.

Student reports will vary based on the research conducted. In general, the idea is that
some brands allow for and encourage input from a social circle to help a customer make
an “optimal” buying decision.

9. The class will investigate group buying in China and India. What is the prospect for
group buying in Asia? (Start with Madden’s article “China Pioneers Group Buying
Discounts Without Groupon” at joomabc. com/Web site-clone/news/item/45-china-
pioneersgroup- buying-discounts-without-groupon).

Student reports will vary based on the research conducted.

Closing Case: F-COMMERCE: BUSINESS ACTIVITIES ON

FACEBOOK
1. Why conduct business on Facebook?

The site has a very large user-base.

2. List five major advertising options on Facebook.

• Facebook connect

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• Facebook “like” button

• Facebook Ads
• Facebook Page
• Facebook Aps

3. What is the purpose of the “Like” button?

To signal interest in a piece of content.

4. How are product recommendations generated on Facebook?

Generally through recommendations generated and shared by users, or through partners

like Amazon.

5. How can person-to-person transactions be conducted on Facebook?

This is generally through the Facebook Marketplace.

6. What tools are provided by Facebook to facilitate selling and buying?

• Facebook credit
• Open graph and social graph
• Product recommendations
• Merchant shopping aids
• Facebook Places (for mobile)
• Facebook Deals
• End-to-end Facebook store within a fan page
• Social bar
• Docs.com
• “Presence” location-based data
• Sponsored stories

7. What are “Sponsored Stories”? Who benefits? How?

This is content that is sponsored by an advertiser that may help to push a product or
service.

8. What are some of the implementation issues?

There are several issues and student selection will vary.

9. Enter donnygamble.com/social-commerce and read the article “Social Commerce:

How Facebook Will Change Online Shopping Forever.” Explain the blogger’s opinion.

Student perceptions will vary.

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10. There are several hundreds of travel apps on Facebook. Identify some of them.

Student selection will vary.

11. Find “Where I’ve Been” and discuss its popularity.

Student responses will vary.

Copyright © 2012 Pearson Education, Inc., Publishing as Prentice Hall