Social Networking Technologies and Their Implications for Commerce

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With social networking sites continuing to sign up thousands of new members combined with increased popularity of online shopping due to its convenience and economic benefits, a new form of commerce is emerging. It is known as Social Commerce. This report looks at how the staggering growth of Facebook to over 600 million active members in under a decade (Carlson, 2011) has led to a social network that is now not only influencing how people communicate with each other but is also affecting how consumers purchase items and have these items marketed to them. People are buying in social 'tribes' in order to get the best deals and are relying on each other to make the right decisions. They are doing all this directly through their social network and as a result marketing and advertising professionals are having to rewrite the rule books.