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Social Computing

Describe five Web 2.0 tools and two major types of Web 2.0 sites.

Describe the benefits and risks of social commerce to companies.

Identify the methods used for shopping socially.

Discuss innovative ways to use social networking sites for advertising and market research.

Describe how social computing improves customer service.

Discuss different ways in which human resource managers make use of social computing.

[ LEARNING OBJECTIVES]

Web 2.0

Fundamentals of Social Computing in Business

Social Computing in Business: Shopping

Social Computing in Business: Marketing

Social Computing in Business: Customer Relationship Management

Social Computing in Business: Human Resource Management

[ CHAPTER OUTLINE ]

Student PowerPoints for note taking

WileyPLUS Learning Space

E-Book

Author video lecture for each chapter section

Practice quizzes

Flash Cards for vocabulary review

Additional “What’s in IT for Me?” cases

Video interviews with managers

Lab Manuals - Microsoft Office 2010 & 2013

[ WEB RESOURCES]

[ Opening Case Disappearing Images]

Describe the advantages and disadvantages of Snapchat to its users. Provide specific examples of both to support your answer.

Do you think that Snapchat can become profitable (i.e., survive) in the marketplace? Why or why not? Support your answer with specific examples.

How will the Snapchat breach affect marketers who are considering using the app in their campaigns?

Should Snapchat’s founders have sold the service to Facebook or Google? Why or why not? If you were the founder of Snapchat, would you have accepted one of these offers? Why or why not?

Web 2.0

9.1

Tagging

Folksonomies

Geotagging

Really Simple Syndication (RSS)

Blogs

Microblogging

Tagging: a keyword or term that describes a piece of information—for example, a blog, a picture, an article, or a video clip. Tagging allows users to place information in multiple, overlapping associations rather than in rigid categories.

-- Folksonomies: user generated classifications that use tags to categorize and retrieve Web pages, photos, videos, and other Web content.

-- Geotagging: a specific form of tagging referring to tagging information on maps (example: Google Maps allows users to add pictures and information, such as restaurant or hotel ratings, to maps).

Blog: (short for weblog) a personal Web site, open to the public, in which the site creator expresses his or her feelings or opinions via a series of chronological events.

Microblogging: a form of blogging that allows users to write short messages (or capture an image or embedded video) and publish them (Example: Twitter).

FIGURE 9.1 The Web site of National Public Radio (NPR) with RSS toolbar aggregator and search function.

FIGURE 9.1 The Web site of National Public Radio (NPR) with RSS toolbar aggregator and search function (Courtesy of NPR. Used with permission.)

Web 2.0 (continued)

9.1

Wikis

Social Networking Web Sites

Social Graph

Social Capital

Enterprise Social Networks

Mashups

Wiki: a Web site made up entirely of user generated content (Example: Wikipedia.com).

Social Network: a social structure composed of individuals, groups, or organizations linked by values, visions, ideas, financial exchange, friendship, kinship, conflict, or trade.

Social Networking: refers to activities performed using social software tools (e.g., blogging) or social networking features (e.g., media sharing).

-- Social Graph: the map of a single member of a social network comprised of all relevant links or connections among the greater social network.

-- Social Capital: refers to the number of connections an individual person has within and between social networks.

Social Networking Web Sites: web sites that allow participants to create their own profile page for free allowing them to post blog entries, pictures, video, music and/or share ideas.

Enterprise Social Networks: business-oriented social networks (public or private) designed to support networking and community building, social collaboration, social publishing, Social intelligence and social analytics.

Mashups: a Web site that takes different content from a number of other Web sites and mixes them together to create a new kind of content.

Brian Krebs Blogs on Information Security

9.1

[about business]

List various ways in which Krebs can make money from his blog.

You are the Chief Security Officer for a company. How would you incorporate Krebs’s blog into your security efforts?

Trip to Europe: Cancelled

9.2

[about business]

Should you be careful of what you post on Facebook? Support your answer in relation to this case.

What mistake did the parents make when they informed Dana about the settlement? Telling her at all? Not telling her about the dangers of posting details on social media?

Social Network Analysis Applied to Gangs

9.3

[about business]

What other data could the Chicago Police Department add to ORCA?

What are the potential disadvantages of ORCA? Provide specific examples to support your answer.

FIGURE 9.2 Google Maps (www.googlemaps.com) is a classic example of a mashup.

FIGURE 9.2 Google Maps (www.googlemaps.com) is a classic example of a mashup. In this case, Google Maps is pulling in information from public transportation Web sites to provide the customer with transit directions.

Fundamentals of Social Computing in Business

9.2

Social Commerce

Benefits to Customers

Benefits to Businesses

Social Commerce: the delivery of electronic commerce activities and transactions through social computing. Social commerce also

supports social interactions and user contributions, allowing customers to participate actively in the marketing and selling of products and services in online marketplaces and communities.

Social Commerce:

Benefits to Customers

Better and faster vendor responses to complaints (on Twitter, Facebook, and YouTube)

Customers can assist other customers (e.g., in online forums)

Customers’ expectations can be met more fully and quickly

Customers can easily search, link, chat, and buy while staying on a social network’s page

Social Commerce:

Benefits to Businesses

Can test new products and ideas quickly and inexpensively

Learn a lot about their customers

Identify problems quickly and alleviate customer anger

Learn about customers’ experiences via rapid feedback

Increase sales when customers discuss products positively on social networking site

Social Commerce:

Benefits to Businesses (con’t)

Create more effective marketing campaigns and brand awareness

Use low-cost user-generated content, for example, in marketing campaigns

Obtain free advertising through viral marketing

Identify and reward influential brand advocates

Social Computing in Business: Shopping

9.3

Ratings, Reviews, and Recommendations

Group Shopping

Shopping Communities and Clubs

Social Marketplaces and Direct Sales

Peer-to-peer Shopping Models

Ratings, Reviews, and Recommendations: are usually available in social shopping and generally come from,

(a) Customer ratings and reviews integrated into the vendor’s Web page

(b) Expert ratings and reviews from an independent authority

(d) Conversational marketing: individuals converse via e-mail, blog, live chat, discussion groups, and tweets.

Group Shopping: Web sites such as Groupon and LivingSocial offer major discounts or special deals during a short time frame.

Shopping Communities and Clubs: host sales for their members that last just a few days and usually feature luxury brands and heavily discounted prices. These clubs tend to be exclusive and help sell luxury items without watering down the brands’ images.

Social Marketplaces and Direct Sales: act as online intermediaries that harness the power of social networks for introducing, buying, and selling products and services. A social marketplace helps members market their own creations.

Peer-to-Peer Shopping Models: are the high-tech version of old fashioned bazaars and bartering systems. Individuals use these models to sell, buy, rent, or barter online with other individuals.

Collaborative consumption: peer-to-peer sharing or renting.

FIGURE 9.3 Epinions (www.epinions.com)

FIGURE 9.3 Epinions (www.epinions.com) is a Web site that allows customers to rate anything from cars to music. In this screenshot, customers review a popular children’s film.

FIGURE 9.4 LivingSocial (www.livingsocial.com) is a popular example of a group shopping Web site.

FIGURE 9.5 Etsy (www.etsy.com) is a social marketplace for all handmade or vintage items.

Social Computing in Business: Marketing

9.4

Social Advertising

Market Research

Conducting Market Research Using Social Networks

Social Advertising: refers to the advertising formats that make use of the social context of the user viewing the ad. It is the first form of advertising to leverage forms of social influence such as peer pressure and friend recommendations and likes.

Market Research: today members of social media voluntarily provide demographics that help identify and target potential customers. Due to the open nature of social networking, merchants can easily find customers, see what they do online, and learn who their friends are.

Conversational Marketing: feedback from customers provided to companies through social computing tools (e.g., blogs, wikis, online forums, and social networking sites.

Conducting Market Research Using Social Networking: Customer sentiment expressed on Facebook, Twitter, LinkedIn and similar sites represent an incredibly valuable source of information for companies allowing them to analyze the data, conduct better advertising campaigns, improve their product design and their service offerings.

Advertising

Social Advertising

Viral Marketing

Viral marketing: word-of-mouth advertising—lends itself especially well to social

networking.

Market Research

Conversational Marketing

-- Conversational Marketing: feedback from customers provided to companies through social computing tools (e.g., blogs, wikis, online forums, and social networking sites.

Conducting Market Research Using Social Networks

Using Facebook for Market Research

Using Twitter for Market Research

Using LinkedIn for Market Research

FIGURE 9.6 Customers share their ideas and feedback with Dell via IdeaStorm (www.ideastorm.com).

Using Facebook for Market Research

Obtain feedback from Facebook Fans

Test-market your messages

Use Facebook for survey invitations

• Obtain feedback from your Facebook fans (and their friends if possible) on advertising

campaigns, market research, etc. It is equivalent to holding a free focus group.

• Test-market your messages. Provide two or three options, and ask fans which one they

prefer and why.

• Use Facebook for survey invitations (i.e., to recruit participants). Essentially, turn Facebook

into a giant panel, and ask users to participate in a survey. Facebook offers a self-service

model for displaying ads, which can function as invitations to take a survey. Facebook also

allows you to target your audience very specifically based on traditional demographic criteria

such as age and gender.

Using Twitter for Market Research

Visit Twitter Search

Monitor industry-specific keywords

Review TweetStats

Solicit information from customers & interact with them

Using Twitter for Market Research: Your customers, your prospects, and industry

thought leaders all use Twitter, making it a rich source of instantly updated information. Consider

the following examples:

• Visit Twitter Search (www.twitter.com/search). Enter a company’s Twitter name. Not only

can you follow what the company is saying, you can also follow what everyone is saying

to them.

• Take advantage of the tools that enable you to find people in the industries in which they

operate. Use search.twitter.com to monitor industry-specific keywords.

• Do you want to know what topic is on most people’s minds today? If so, then review the

chart on TweetStats (www.tweetstats.com).

• An increasing number of companies are utilizing Twitter to solicit information from customers

and to interact with them (e.g., Dell (connecting with customers), JetBlue

(learning about customers), Teusner Wines (gathering feedback, sharing information), and

Pepsi (rapid response time in dealing with complaints).

Using LinkedIn for Market Research

Post a question

Solicit advice from a LinkedIn group

Post a question (e.g., solicit advice) regarding the topic or issue you are interested in.

You may obtain a better result if you go to a specific LinkedIn group to solicit advice.

YouTube versus Television

9.4

[about business]

Describe the differences in how traditional television and YouTube provide online content to audiences.

If you were the CEO of a traditional television network, how would you combat YouTube?

Social Computing in Business: Customer Relationship Management

9.5

How Social Computing Improves Customer Service

Social computing has vastly altered both the expectations of customers and the capabilities of corporations in the area of customer relationship management.

Customers are now incredibly empowered as companies closely monitor negative comments and proactively involve customers to resolve problems/issues for improved customer service.

Empowered customers know how to use the wisdom and power of crowds and communities to their benefit.

Social Computing in Business: Human Resource Management

9.6

Recruiting

Finding a Job

Employee Development

Recruiting: Both recruiters and job seekers are moving to online social networks as recruiting platforms.

Finding a Job: The vast majority of entry-level positions in the United States are now listed only online. Job sites are the fastest, least expensive, and most efficient method to connect employers with potential employees. Today, job searchers use traditional job sites and social networks such as LinkedIn.

Employee Development: HR professionals are using enterprise social tools such as Chatter, Yammer, and Tibbr to enable, encourage, and promote employee development through relationship building by providing a platform for employees to collaborate on sales opportunities, campaigns, projects as well as simplify workflows and capture new ideas. Elearning and Etraining are employee development tools that can be leveraged through social computing.

[ Closing Case Establishing a Presence in China via Microblogging]

The Business Problem

The IT Solution

The Results

Questions

Describe the various advantages and benefi ts that multinational companies hope to attain from their marketing efforts on Weibo.

Describe the disadvantages that multinational companies might encounter from their marketing efforts on Weibo.

Should companies use a social media outlet that is monitored, censored, or otherwise controlled by a government? Why or why not? Support your answer.