How does web 2.0 impact business

There is evidence that this situation is beginning to occur due to a reduction in ad rates as a consequence of growing competition in digital advertising, and the preference of retailers to target customers directly through their own e-commerce sites or through e-commerce megasites, such as Amazon [50]. Therefore, e-commerce researchers should monitor the developments towards the integration of online social networks and e-commerce sites into social commerce, which undoubtedly will have serious implications for e-commerce, as well as for e-marketing.

The announcement of Gap, Gamestop, J. Penney, and Nordstrom to close their Facebook stores presents evidence of problems with such integration. In this regard, Marsden and Chaney claim that these storefronts were simply clones of the external e-commerce sites, and as such did not provide any "compelling and differentiating reason to shop there" [35] p.

According to these authors, such virtual stores were smaller and slower than the parallel e-commerce sites, without additional convenience. This seems to be another case in which a new technology is used in the same way as a previous one, supporting Turban et al.

Therefore, these Facebook stores did not complement market perspective nor were integrated community perspective with the existing e-commerce sites. While a real integration between online social networks and e-commerce is achieved, companies will have to develop strategies to combine these tools effectively for e-marketing. E-commerce researchers can then assist in this task by providing theoretical perspectives on how this integration should proceed, and also by documenting case studies from companies leading this work Marsden and Chaney [35] discuss some of such cases.

Our appreciation to Dr. We also like to thank the reviewers and editors of JTAER for their valuable comments and suggestions. Site Facebook social commerce applications. Akerlof, The market for "lemons": Quality uncertainty and the market mechanism, Quarterly Journal of Economics, vol.

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Three qualities make Web 2. The technical definition of the term Web 2. Put simply, Web 2. Blogs, wikis, social networks, social bookmarking, news aggregation sites: the litany of tools that make up Web 2. The implications for business are numerous. For one, Web 2. This is accomplished in various ways, but the general idea is to promote communication and collaboration among individuals. You will still use an Internet browser to visit Web 2.

Some features of Web 2. For example,. Despite these statistics, a relatively recent survey indicated that most small businesses were not very optimistic about how Web 2.

As people become increasingly comfortable with these types of online experiences, it makes good business sense to see if they can be utilized to promote and advance your small business — giving you a competitive advantage over other businesses that are not willing to incorporate them.

Fred runs his own machine shop where he makes custom rifles. He finds out many small businesses use a blog to provide updates to their customers about ongoing projects or activities.

He realizes many people who might be interested in his rifles enjoy discussing their hobbies on online forums dealing with that very topic. He visits other Web sites where business owners have demonstrated their capabilities with simple YouTube videos that can be created with a typical digital camera. And, he finds out some small businesses have their own social networking page on sites like Facebook or MySpace.

More and more businesses are taking advantage of these sites to create contacts for both professional and personal reasons. After several weeks of continually updating his blog, providing useful information on the forums, and networking with other professionals and friends on Facebook and LinkedIn, Fred sees a dramatic increase in the number of visits to his Web site, has met over new people interested in the same topic as him, and has gotten lots of leads for more work.

His Web 2. In order for Web 2. For example, a business focused on high levels of service is going to have a different Web 2.

For most small businesses, the ultimate goal is to increase business levels while maintaining fully satisfied customers. Put a little thought into which of the tools below could be useful for your business.

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