Research Summary
The research paper, “Online Shopping and Social Media: Friends or Foes?” by Yuchi Zhang, Michael Trusov, Andrew T. Stephen, and Zainab Jamal, investigates the impact of social media on online shopping behavior. The authors conducted experiments to examine the effects of social media content and interactions on consumer decision-making. The results suggest that social media can be a powerful tool for influencing online shopping behavior. The paper draws upon existing literature on social media, e-commerce, and marketing to develop a conceptual framework for understanding the role of social media in e-commerce.
Research Methods
This research paper is based on a series of experiments conducted by the authors to examine social media effects on online shopping behavior. “The data set includes all online purchases made by the panelists between January 1 and December 31, 2007. For each purchase, we know who made the purchase, the purchase date, the retailer (i.e., website domain) where the purchase was made, and the purchase category. We observe 140,291 distinct purchase transactions made during this period by 7,402 unique users”(Zhang, Y.et al., 2017, p.28).
Data Sources
The data sources for this research paper are primarily primary sources, including the experiments conducted by the authors and the surveys they conducted. The authors designed a series of experiments in which participants were exposed to social media content related to online shopping, and their subsequent behavior was measured. The authors also surveyed participants to collect data on their social media usage and online shopping behavior.
Key Findings
The research paper’s main conclusions indicate that social media can significantly shape online shopping habits. The authors found that exposure to social media content related to online shopping can lead to increased interest in shopping and higher levels of engagement with online shopping platforms. The review of the literature reveals that it has significantly increased, spanning areas from business and manufacturing to healthcare and knowledge management (Nord, Koohang, and Paliszkiewicz, 2021). They also found that social media interactions with friends and family members can influence online shopping behavior, particularly for products that are considered socially visible.
Practical Applications
The findings of this research paper have practical implications for companies in developing their e-marketing strategies and adopting social media to enhance their e-commerce efforts. Firms can utilize social media to influence online shopping behavior by creating engaging and relevant content tailored to their target audience (Li, Larimo, and Leonidou, 2021). For example, a company could use social media platforms to create a community of its customers and interact with them to get feedback, suggestions, and complaints. This could help the company develop better products and services that meet the needs and expectations of its customers.
One example of a company that has successfully used social media to enhance its e-commerce efforts is ASOS. Solely online retailer (ASOS) conveys how significant social media and its associated tools are to businesses in the 21st century (Goff, 2021). ASOS has a strong social media presence, utilizing various platforms, including Instagram, Facebook, and Twitter, to engage with its customers. The company regularly posts updates about new products, events, and promotions, and responds to customer comments and queries. ASOS has also developed a mobile app that enables customers to browse and purchase products on their smartphones. This has helped the company build a strong community of loyal customers engaged with the brand.
Reference List
Goff, D. (2021). ‘What Impact has Social Media had on Entrepreneurship in the 21st Century?’. Doctoral dissertation, Dublin, National College of Ireland.
Li, F., Larimo, J. and Leonidou, L. C. (2021). ‘Social media marketing strategy: definition, conceptualization, taxonomy, validation, and future agenda.’ Journal of the Academy of Marketing Science, 49, pp. 51-70. Web.
Nord, J. H., Koohang, A. and Paliszkiewicz, J. (2019). ‘The Internet of Things: Review and theoretical framework’. Expert Systems with Applications, 133, pp. 97-108.
Zhang, Y.et al. (2017). ‘Online shopping and social media: friends or foes?’, Journal of Marketing, 81(6), pp. 24-41. Web.