Social commerce constructs

Lu et al. (2016) maintain that social commerce tools enhance customer participation and allow the collection of “rich information resulting in a more trustworthy and sociable online transacting environment” (Lu et al., 2016:225). These tools are called social commerce constructs, as “online forums, ratings, communities, reviews and recommendations” (Hajli, 2015:183). Lin, Li and Wang (2015) put forward that social commerce constructs assist in the user’s pre-purchase product evaluation, their shopping decisions, and also their post-purchase behaviours (Lin et al., 2016:2), which shows the enormous influence these constructs have over decision- making behaviour in the consumer purchase journey. Social commerce constructs effortlessly enable consumers to interact, connect and actively search other consumer product and service experiences – to make better-informed purchasing decisions (Ng, 2013). This information-sharing behaviour enables social support before and after their online shopping experience (Lin et al., 2015), which then cultivates trust between users.

Hajli (2015a) explores three social commerce constructs: ratings and reviews which he maintains shape social commerce, recommendations and referrals which he argues influence social commerce intention, and forums and communities that facilitate social interactions (Figure 2.2, below). These constructs are important, as it is argued that consumers use them in their interactions and generate content with others that increases the level of trust and intention to purchase (Hajli, 2015a). Exploring this literature is pertinent, as this study examines trust and purchase intention within a social commerce context, and will provide a rich background into the social networking environment that builds this trust.

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Figure 2.2: Social commerce adoption model, showing the social commerce constructs of Hajli (2015)

2.3.5.1 Ratings and reviews

Ratings and reviews involves users posting reviews or rating products online, which benefits other users as it generates “effective information for customers” (Hajli, 2015:185). Consumers use this information to arm their decision-making, as it is deemed credible and trustworthy. Ahmad and Laroche (2016) maintain online customer reviews are a form of electronic word-of-mouth (eWOM) and argue that eWOM can potentially reduce risk and increases consumer trust (Ahmad and Laroche, 2016). The role of trust in social media reviews was closely examined by Lee et al. (2016) in their study on perceived customer value in online group-buying among South Koreans. The higher the risks, the higher the perceived customer value for group-buying in low-priced deals. To reduce this online risk, consumers turn to social media reviews as they “lend credibility to the information” (Lee et al., 2016:400). In addition to this, a user’s review about a product online usually provides detail not provided by a brand, and is therefore perceived to be valuable and unbiased.

In a study by Ha (2004), word-of-mouth communications were shown to influence awareness, expectations, perceptions, attitudes and behavioral intentions (Ha, 2004). It was further demonstrated that eWOM communication exerts a strong effect on brand trust for customers on e-commerce. As social commerce is a sub-set of e- commerce, we can deduce that eWOM in the form of reviews exerts a strong effect on brand trust for customers and is an antecedent to trust.

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2.3.5.2 Recommendations and referrals

Recommendations and referrals are widely used by consumers to gain further insight into aspects of a product online (Hajli, 2015), becuase transacting in an online environment limits consumer’s from picking up or trying on products, and it is therefore regarded as a risky practice/purchase. Users lean toward their community for reliable opinions, by either searching for already posted information about the branded product or posting a question to their community to find out more about the product (Hajli, 2015). Users therefore trust the responses and information retrieved online by those in their social community, and are influenced by other user recommendations and referrals, which in turn influence their decision-making (Hajli, 2015)

2.3.5.3 Forums and communities

The third construct outlined by Hajli (2015a) is forums and communities, which is a social environment facilitating the social interaction of individuals participating on the platform (Hajli, 2015a). They support each other through collating and transmitting product information through the social tools available. Therefore, these platforms stimulate social interactions and conversations through supporting one another. This leads to social support and social presence – both of which have already been established as an antecedent to trust in social commerce. The above academic literature is evidence of the significant hold these social commerce attributes have in contributing to a favourable environment for consumer trust to thrive. A summary of the terms discussed above are in Table 2.3 (below).

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Table 2.3: Terms and definitions found in the e-commerce and social commerce chapter.

No. Term Description Reference

1. E-commerce The company or site offers to transact or facilitate the selling of products and services online

Kotler and Keller, 2009

2. Social commerce The delivery of e-commerce activities and transactions via the social media environment.

Liang and Turban, 2011

3. Social media platforms Different types of social media such as social networking sites, blogs, Wikipedia, YouTube, Flickr and forums.

Vazquez et al., 2014

4. Social Networking Sites (SNS) Where products/services/brands are promoted on social media platforms such as Twitter, Facebook, Instagram and Pinterest.

Lin and Wang., 2016

5. Online community Virtual communities are social environments where individuals interact and engage facilitated by social media applications.

Hajli, 2017a

6. Branded community A group of consumers with a well-developed social identity whose members engage jointly in group actions to accomplish collective goals.

Lee et al., 2012

7. Social shopping website ( SSW) SSW's create online communities where consumers can connect through their shopping related interests

Huang et al., 2016 8. Electronic Word of Mouth (eWOM) Any positive or negative statement made by the potential, actual or

former customers about a product or company on the internet, more popular on social networking sites

Ahmad and Laroche (2016)

9. User generater content ( UGC) The sharing of information, experiences and knowledge with other members of online communities

Hajli et al .,2015b

10. Social interactions Any actions individuals engage in which affect other consumers decisions regarding a product or service.

Godes et al., 2005

11. Social support Social resources which are available or provided by individuals of a network which nurtures warmth, care and a sense of belonging

Hajli et al., 2014a, 2014b 12. Social presence The extent to which a medium allows users to experience others as

psychologically present.

Hassanein et al., 2009 13. Social commerce characteristics Unique characteristics which stimulate users trust in the platform

namely reputation, size, information quality, transaction safety, communication, economic feasibility and WOM referrals

Kim and Park, 2013

14. Social commerce constructs Online forums, ratings, communities, reviews and recommendations. Hajli, 2015

15. Familiarity The continous engagement in channels of information seeking such as communities and forums which enhances users skills and expertise about diferent aspects and tools of an online platform

Hajli et al., 2017

16. Information seeking behaviour Consumers demonstrate information seeking behaviour through social commerce constructs.

Hajli, 2017

17. Purchase Intention The strengths of one’s intention to perform a specific behavior Fishbein and Ajzen, 1975

Note: Table compiled by the researcher.

The next section in this study further explores the antecedents to online trust, building the argument for the significance of trust in social commerce, and therefore understanding the moderating effects of this trust to be of equal value.