Connected Consumption

trendsinsocialcomputingand

connectedconsumption

eCommerce

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anePaperbysidneyevematrix

60% Althoughit'sbeenaroundforyears,thesocialshoppingtrendpeakedduringtheDecember 2009 holiday season. Moreretailersandconsumersareonlinethaneverbefore.

retailershave

onFacebookvirtualstorefrontsaccordingtotheInternetRetailerTop500Guide

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Likewise,theannualFEEDReportfromRazorfishannouncedthemainstreamingof

AreportbyShop.orgindicatedthatalmosthalfofbrickandmortarretailerswereplanningtoincreasetheirinvestmentsinonlinesocialmediacampaignsforthe2009holidaybuyingbinge.

That growth is, according to Reuters, due to the fact thatadvertisersperceivesocialmediamarketingchannelshavematuredconsiderably since 2008, becoming an important piece of a cross‐platformpuzzle.

AccordingtotheHarvardBusinessReview

socialcommerce

connectedconsumerism

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occurredinmid‐2009.

47% oftraditionalretailers

spendforholiday2009

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increasedSMM

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isoneofthekeyeconomictrendsfor2010.

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Privacy concerns aside, people areembracingtheopportunitytonarrowcastour retail transactions and publicize ourconsumerpreferencestofriends,fansandfollowers.

Asaresult,socialshoppingistakingbrandaffiliationandambassadorshiptoawholenewlevel.

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Socialmediamarketingencourages

bondingoverbrandsandbargainsinanetworkedculture.

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AccordingtoauthorMitchJoel, thepowerofsocialshoppingis "the ability to connect directly with the brand and buildfriendshipswithindividualswhohavelike‐mindedinterests."

Thus, the socialglueofconsumer communities is loyalty to asetofsharedvaluesand/orsimilarlifestylechoicerepresentedbyourpreferredbrands.

It is no surprise then, that opt‐in social shopping rituals areemergingasthenextmechanismforelevatingcompaniesandbrandsto(whatSaatchi&Saatchicall)Lovemarkstatus.

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The stage was set for the popularization of connectedconsumption as web users became accustomed to thepresenceofrecommendationenginesoneCommercesites,andtheincreasingnumberofbrandsonsocialnetworks likeFacebook.

Whereasfewpeopleadmittotrustingadvertisingmessages,most of us (70% according to Nielsen) will admit we usesocial comparison models, peer recommendations, andfriendreferralswhenmakingpurchasedecisions. 9

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Trendsinonlinesocialshoppinghelp consumers who areplaguedbyindecisionandoftenabandon their electronicshopping carts in frustration,observes Natalie Zmuda atAdvertisingAge.

Researchers at McMaster'sU n i v e r s i t y i n C a n a d ademonstrated that part of theproblem with traditional(nonsocial) online shopping isthat,

"ecommerce typically lacks humanwarmth and sociability, since it ismore impersonal, anonymous andautomatedthantraditionalface‐to‐facecommerce."Butaddingjustabitofsocialinteractionandpeer‐to‐peeradvice,viaalivechatclientormessageboards,canmakethedifferenceatthemoment of impasse between a completed purchase and theshopperbouncingtoanother,moreinfo‐richsite.

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image:ЯickHarris

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AsresearchersattheMITMediaLabhavepointedout,theemergenceof these digital, interest‐driven shoppingnetworks is contributing toconsumersbecomingmore

Thisinturndrives:

• comparisonshoppingtrends

• increasedparticipationinloyaltyprograms,and

• creationofvaluable(andinfluential)usergeneratedcontent.

AllofwhichissuretopleaseeCommerceretailersandsocialmediamarketers.

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information‐aware.

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TheiPhoneand3rdpartyappdevelopmentisanotherfoundationalelementsupportingstructuresofconnectedconsumption.

iPhoneistheplatformformobilesocialshoppingcampaigns,sinceresearchshowsusersofthissmartphonebrandhavethehighestclick‐thrurateforanimatedmobileads.

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socialshoppinggoesmobile.

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..9Acollectionofnewsocialshoppingappsforsmartphoneusers promises to simplify the process of sharingpurchasehistorywithfamilyandfriendsas

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Althoughit'snotnewsthatweconstructandcommunicateouridentitiesthroughconsumerhabits,it'slikelywe'veneverdonesoquitesopubliclypriortothemassadoptionofsmartphones.

Ontheirhandheldsmobileshoppers,theatregoers,diners,andcafecrawlersarelayingdownasetofdigitalfootprintsthroughthemalls,shops,andmarketplaces‐‐‐atrailofP2Preferralsforfriendstofollow.

Nosmallwonderthatarticlesabouttheadvertisingpotentialofgeo‐locosocnetappslikeFoursquarearepoppingupallover.

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1. http://www.directnews.co.uk/news/online‐marketing/social‐networking/over‐50‐of‐top‐e‐retailers‐have‐facebook‐presence‐$1337549.htm

2. http://cm.media.mit.edu/publications/connected‐consumption‐hidden‐networks‐consumption

3. http://www.utalkmarketing.com/pages/Article.aspx?ArticleID=15864&Title=Retailers_rely_on_social_media_advertising_for_Christmas

4.TheHarvardBusinessReviewsocialtrendreportiscitedinhttp://socialcommercetoday.com/harvard‐business‐on‐6‐social‐media‐trends‐for‐2010/

5. RazorfishannualFEEDreport:http://feed.razorfish.com/feed09/digital‐primacy/

6.MitchJoelonsocialshopping:http://www.twistimage.com/blog/archives/social‐shopping‐takes‐hold‐as‐the‐next‐hot‐online‐social‐network/

7. Saatchi&Saatchionbrandlove:http://www.lovemarks.com/

references

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1. http://www.directnews.co.uk/news/online‐marketing/social‐networking/over‐50‐of‐top‐e‐retailers‐have‐facebook‐presence‐$1337549.htm

2.http://cm.media.mit.edu/publications/connected‐consumption‐hidden‐networks‐consumption

3.http://www.utalkmarketing.com/pages/Article.aspx?ArticleID=15864&Title=Retailers_rely_on_social_media_advertising_for_Christmas

4.TheHarvardBusinessReviewsocialtrendreportiscitedinhttp://socialcommercetoday.com/harvard‐business‐on‐6‐social‐media‐trends‐for‐2010/

5.RazorfishannualFEEDreport:http://feed.razorfish.com/feed09/digital‐primacy/

6.MitchJoelonsocialshopping:http://www.twistimage.com/blog/archives/social‐shopping‐takes‐hold‐as‐the‐next‐hot‐online‐social‐network/

7.Saatchi&Saatchionbrandlove:http://www.lovemarks.com/8.BrandsonFacebook:http://www.insidefacebook.com/2009/02/16/facebook‐to‐launch‐redesigned‐pages‐for‐businesses‐tour‐first‐impressions/

9.Nielsenonconsumertrustinadverts:http://blog.nielsen.com/nielsenwire/consumer/global‐advertising‐consumers‐trust‐real‐friends‐and‐virtual‐strangers‐the‐most/

10.InterviewwithNancyZmudafromAdvertisingAge:http://www.crainsdetroit.com/article/20090413/EMAIL01/904139962#

11. ResearchersfromOntario’sMcMasterUniversity:http://is.gd/91b7r12.http://pubs.media.mit.edu/pubs/papers/main.pdf13.http://mashable.com/2009/05/06/iphone‐shopping‐savings/14.iPhoneusersclickonmobileadverts:http://www.bizreport.com/2009/10/

study_cpg_auto_scoring_well_in_mobile.html15.Geolocoadverts:http://www.mediastyle.ca/2010/01/mobile‐tech‐opportunity‐in‐

foursquare/

imagebyArmanoMaynez

1. http://www.directnews.co.uk/news/online‐marketing/social‐networking/over‐50‐of‐top‐e‐retailers‐have‐facebook‐presence‐$1337549.htm

2.http://cm.media.mit.edu/publications/connected‐consumption‐hidden‐networks‐consumption

3.http://www.utalkmarketing.com/pages/Article.aspx?ArticleID=15864&Title=Retailers_rely_on_social_media_advertising_for_Christmas

4.TheHarvardBusinessReview

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about the author

SidneyeveMatrix,PhD.Queen's National Scholar, Film & Media, Queen'sUniversity, Canada. Blogger, Speaker, Professorteaching digital culture, mass communication &marketing,popculture,television,&filmcourses.Website:sidneyevematrix.com