Short Presentation on the Social Psychology of Social Shopping - Six Social Cues Shoppers Use to Thinslice Information and Decide What to Buy

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The Social
Psychology
of Social
Shopping
How Social
Commerce Works
Dr Paul Marsden
Digital Ethnographer
Syzygy Group

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So what is this social commerce thing?

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Social commerce
“Social commerce is a subset of
electronic commerce that
involves using social media,
online media that supports
social interaction and user
contributions, to assist in the
online buying and selling of
products and services”.
So what is this social commerce thing?

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Future: mobile,
sCRM, curated
realtime marketplaces
social
shopping,
social platforms Facebook
(forums, blogs, Connect
bookmarking)
ratings &
reviews
FTOAF (forward to a
friend), referral programs
Social commerce is not new... (coined by Yahoo 2005)

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Future: mobile,
sCRM, curated
realtime marketplaces
social
shopping,
social platforms Facebook
(forums, blogs, Connect
bookmarking)
Social Commerce: Creating places
ratings &
where people can collaborate
reviews
online, get advice from trusted
individuals, find goods and
FTOAF (forward to a
services and then purchase them.
friend), referral programs
Social commerce is not new... (coined by Yahoo 2005)

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Helping people
buy where they
connect... ...and connect
where they buy
In plain English...

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And it’s a hot area in social media marketing right now...

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And it’s a hot area in social media marketing right now...

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Technology Hype Cycle
Echo-Chamber Social Media Marketing
...because it helps solve a real problem: social media ROI

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+ =
Ratings Recommendations Forums
& Reviews & Referrals & Communities
Social Media Social Social Ads
Optimization Shopping & Social Apps
“Getting” it is easy: selling with social media

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Doing it can be more difficult: selling with social media

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Doing it can be more difficult: selling with social media

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It’s about people (influencing people), not technology

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The social psychology of shopping can help

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The social psychology of shopping can help

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Social Intelligence - The
ability to understand and
learn from each other and
profit from social situations
We use social intelligence to “thinslice” buying decisions

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Social Intelligence - The
ability to understand and
learn from each other and
profit from social situations
The TOM test
We use social intelligence to “thinslice” buying decisions

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Social Intelligence - The
ability to understand and
learn from each other and
profit from social situations
The TOM test
We use social intelligence to “thinslice” buying decisions

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Social Intelligence - The
ability to understand and
learn from each other and
profit from social situations
The TOM test
We use social intelligence to “thinslice” buying decisions

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Scarcity Popularity Affinity
Authority Consistency Reciprocity
We use social intelligence to “thinslice” buying decisions

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+ =
Scarcity Popularity Affinity
Authority Consistency Reciprocity
Social commerce can cue thinsliced purchase decisions

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The COOKIE JAR EXPERIMENT 1975
The scarcity cue; scarce stuff is good stuff

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Using the scarcity cue to cue purchase decisions

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Using the scarcity cue to cue purchase decisions

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Using the scarcity cue to cue purchase decisions

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Using the scarcity cue to cue purchase decisions

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Social Intelligence @ Work: Scarcity
Use exclusive information to persuade.
Influence and rivet key players’ attention
by saying, for example:“...Just got this
information today. It won’t be distributed
until next week.”
Using the scarcity cue to cue purchase decisions

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The NIXON KENNEDY DEBATE 1960
The affinity cue; follow those you like

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Using the affinity cue to cue purchase decisions

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Using the affinity cue to cue purchase decisions

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Using the affinity cue to cue purchase decisions

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Using the affinity cue to cue purchase decisions

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Social Intelligence @ Work: Affinity
Create early bonds with new peers,
bosses, and direct reports by informally
discovering common interests—you’ll
establish goodwill and trustworthiness.
Charm and disarm. Make positive remarks
about others - you’ll generate more willing
compliance
Using the affinity cue to cue purchase decisions

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The BIG BILLBOaRD EXPERIMENT 1966
Drive Carefully
The consistency cue; be consistent

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Using the consistency cue to cue purchase decisions

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Using the consistency cue to cue purchase decisions

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Using the consistency cue to cue purchase decisions

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Using the consistency cue to cue purchase decisions

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The SHock Box Experiment 1961
The authority cue; follow the leader

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Using the authority cue to cue purchase decisions

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Using the authority cue to cue purchase decisions

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Social Intelligence @ Work: Authority
To activate advocacy, don’t assume your
expertise is self-evident. Instead, establish
your expertise before doing business with
new colleagues or partners; e.g., in
conversations before an important
meeting, describe how you solved a
problem similar to the one on the agenda
Using the authority cue to cue purchase decisions

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The COKE AND RAFFLE TICKET EXPERIMENT 1975
The reciprocity cue; payback favours

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Using the reciprocity cue to cue purchase decisions

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Using the reciprocity cue to cue purchase decisions

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Social Intelligence @ Reciprocity
Create goodwill upfront by giving what you
want to receive. Lend a staff member to a
colleague who needs help; you’ll get their
help later.
Using the reciprocity cue to cue purchase decisions

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The 42ND Street Experiment 1969
The popularity cue; follow the crowd

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Using the popularity cue to cue purchase decisions

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Using the popularity cue to cue purchase decisions

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Using the popularity cue to cue purchase decisions

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Social Intelligence @ Work: Popularity
Use peer power horizontally, not vertically;
e.g., show that your initiative is popular
with your peers if management resists.
Using the popularity cue to cue purchase decisions

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Social commerce matrix

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Listen: Begin by listening, with a purpose - deploy a social media monitoring
and response service to identify social commerce opportunities; listen and
learn from competitors
Experiment - Start with small scale experiments to identify what works for
you. Test and learn with quick and easy experiments to explore ROI potential
Apply - Build on what works and has ROI potential, apply learning and insight
to build social commerce into your digital strategy
Develop - Develop your social commerce solution with user feedback and
competitor intelligence on an ongoing basis. Experiment with new solutions
Social commerce road map: LEAD

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