October to December 2012Colours andBrand IdentityThe ConsumerGenerated FunnelEthics and SocialCommerceSocialTechnologyQuar...
2 3EditorialWith a medley of platforms available to buyers today thathave similar prices and offers, brands are focusing o...
4 5Social Technology Quarterly and the STQ logo are trademarks of KulizaTechnologies Ltd. Their reproducion without the pr...
6 7Brands are going social with the rightmix of communications technology andconsumer values. Social is a catalyst thatis ...
8 9Social Technology Quarterly 06Kulizanetwork serves social interaction and encourages user contributionthroughout the pu...
10 11Social Technology Quarterly 06Kuliza3. MindtreeMindtree’s original logo looked more appropriate asthe signboard to a ...
12 13Social Technology Quarterly 06KulizaColours are crucial for brands, especially because of thevisual impact they can c...
14 15Social Technology Quarterly 06Kulizausing two models – the additive model andthe subtractive model. The additive mode...
16 17Social Technology Quarterly 06KulizaRedTurquoiseNature & FreshnessCurrency & ProsperityFriendliness & HappinessEnergy...
18KulizaUse of colours across differentsectorsDifferent business sectors show particularpreferences towards certain colour...
20 21Social Technology Quarterly 06KulizaA phenomenon that has driven crazy onlinesales and engagement is augmented realit...
23Social Technology Quarterly 0622Kuliza4Speaking about motor companies, Fiattoo stepped onto the bandwagon ofexperiences....
24 25CommerceMakingLoyaltyProgramsWorkLoyalty programs rule our lives. They determine the airline we fly with.Sometimes ev...
26 27Social Technology Quarterly 06KulizaIn the last few years, these elements have been used by gamedesigners to create e...
28 29Social Technology Quarterly 06KulizaBehavioural Model or FBM - to help designers and marketers ensurethat all psychol...
30KulizaNever in the history of commerce has sucha deluge of data been vaunted beforean information-hungry, and social-sav...
32Social Technology Quarterly 06KulizaWalmart Labs, Shopycat, andBig CommerceIn a bid to strengthen its commercial offerin...
34 35Social Technology Quarterly 06KulizaReferencesChu, Julian. “The Ultimate Online ShoppingExperience, Part 1: Strategy ...
36 37Social Technology Quarterly 06KulizaObsolenceThe traditional purchase funnel that droveadvertising and marketing stra...
38 39EthicsandSocialCommerceThe rise of commerce has always been tightly aligned with certainmutually beneficial, economic...
40 41Social Technology Quarterly 06Kulizadiversity is not Pinterest’s forte or even in its interest. When $80 is theaverag...
42 43Social Technology Quarterly 06KulizaLeft: GeorgeWashington on the $1 billCredit: Peasaphave been convinced that who t...
45Social Technology Quarterly 06Kuliza44Do you remember the heavy metal bandAnthrax? The lead guitarist Dan Spitzleft in 1...
47Social Technology Quarterly 0646Kulizafood and materials come from, their impact onthe planet, and produce products to a...
48 49Social Technology Quarterly 06KulizaA look at collaborative consumption, a phenomenon that is challenging currentmeth...
STQ 06
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In issue 06 we explore the topic of social commerce and loyalty, particularly how companies are using technology, marketing, and psychology to build deeper and longer lasting loyalty with consumers.

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STQ 06

  1. 1. October to December 2012Colours andBrand IdentityThe ConsumerGenerated FunnelEthics and SocialCommerceSocialTechnologyQuarterly0606© 2012 Kuliza Technologies Ltd.All Rights Reserved.Making LoyaltyPrograms Work
  2. 2. 2 3EditorialWith a medley of platforms available to buyers today thathave similar prices and offers, brands are focusing ongenerating loyalty. Brands online are no longer fightingonly in terms of price, presence, or product range. Theyare battling it out to have influential shoppers and brandadvocates to ensure repeat purchases and build a loyalcommunity of such shoppers.In the era of social-defined commerce, a brand thatgarners loyalists and not fans alone, runs campaignsfor experiences and not marketing alone, is the mostpopular, visited, and shopped-at destination. It is onthese shopping platforms one observes that loyalty isnot a passive activity, but an active one with the kind ofdeluge and traffic recorded in information sharing.Social is the genome of commerce. Social createslasting and remarkable relationships that increasepropensity to repurchase and recommend. A loyaltycard is no longer a plastic card for accumulating pointson repeat purchases; there are now designs for loyaltyprograms that are based on insights from various fieldsthat redefine methods of driving loyalty. While designingand using ‘big’ amounts of data, careful consideration ofcode of ethics will determine whether social commerce isgoing to be as effective as predicted. Lifestyles, cultures,and practices too translate into understanding needs ofpeople influenced by social commerce. All these cometogether and contribute to what social commerce aimsat: brand advocacy and loyalty, created through word ofmouth. The brand that has reliable word of mouth is theone with a large, voluble community of loyal customersand least number of advertising campaigns.This is the difference between online commerce andsocial commerce done well.Diarmaid ByrneVandana U.EditorsSocial Technology Quarterly 06The Social Technology Quarterly is a researchpublication that distills the signal from the noise in thefluid social and mobile web domain. From multipleperspectives it analyzes commerce, campaigns,and communities through the lenses of business,technology, design, and behaviour.Social as a Driver of LoyaltyVandana U.Rebrandings of Technology CompaniesAmit MirchandaniImpact of Colours on Brand IdentityAnindya KunduThe Proof is in the ExperienceVandana U.06101219Making Loyalty Programs WorkDiarmaid ByrneThinking Big DataSiddharth BalaraviExperience ShoppingAnish DasguptaThe Consumer Generated FunnelDiarmaid Byrne24303336Ethics and Social CommerceSaswati Mitra SahaThe Maker MovementPayal ShahAccess Greater than OwnershipKaushal SardaLearning by Keeping your Eyes OpenNehal Shah38444850CampaignsCommerceCommunities
  3. 3. 4 5Social Technology Quarterly and the STQ logo are trademarks of KulizaTechnologies Ltd. Their reproducion without the proper permissions isunlawful.© Copyright 2012 Kuliza Technologies Pvt. Ltd.You are free to share and make derivative works of this publicationonly for non-commercial purposes and under the conditions that youappropriately attribute it, and that you distribute it only under a licenseidentical to this one.Social Technology Quarterly 06October to December 2012Published by Kuliza Technologies Ltd.Printed by Print 2 Last Solutions#7 Poorvi, 1st Cross, Shirdisai NagarBangalore 560 077www.print2last.comSubscribeto Social Technology Quarterly at:stq.kuliza.comContributorsAmit MirchandaniChief Creative Officer at Kuliza & MD at Lucid DesignAnindya KunduVisual Designer at KulizaAnish DasguptaMarketing Manager at KulizaDiarmaid ByrneChief People Officer at KulizaKaushal SardaChief Product Officer at KulizaNehal ShahDesign ResearcherPayal ShahCo-founder and Maker-at-Large at makesplash.esSaswati Saha MitraConsumer BehaviouristSiddharth BalaraviCo-founder of GetJugaadVandana U.Marketing & Communications Specialist at KulizaDiarmaid Byrne Editordiarmaid.byrne@kuliza.comVandana U. Editorvandana.u@kuliza.comAmit Mirchandani DesignLucid Design India Pvt. Ltd.www.lucid.co.in Personal is social,behaviour is social,and loyalty is social.Now all commerce issocial.SocialTechnologyQuarterly06
  4. 4. 6 7Brands are going social with the rightmix of communications technology andconsumer values. Social is a catalyst thatis driving unprecedented loyalty, builtnot at one stage but across various stagesand elements of the shopping process.by Vandana U.Photo Credit: zion fictionSocial as aDriver ofLoyaltyIn the age of social commerce, where traditional e-commerce is nomore even a nomenclature, loyalty seems to spell a new pattern withnew trends. With several factors determining shopping- ranging frombest prices, proximity, recommendations, to mood-swings even; it isnecessary to understand not only how loyalty and social commercego hand in hand but understand how social is a driver of loyalty. Itgoes without saying that shopping has always been a social activity. Alot of definitions place social commerce under the huge umbrella termof e-commerce. Currently, as defined by Renata Gonçalves Curty andPing Zhang, “Social commerce is broadly considered to encompasscommerce activities mediated by social media where people docommerce or intentionally explore commerce opportunities byparticipating and/or engaging in a collaborative online environment.”To the process of buying and selling online, social adds layers ofconversations and interactions between consumers, communities,and businesses. These conversations are the new points-of-sales.Businesses are leveraging social, making it highly integrated andhighly relevant to see new growth. The assumption is obvious: ifsocial elements are necessary to drive in engagement, they are vitalto driving loyalty too.Being SocialThe ontology of online commerce now is social as the smart-technology-driven buyer is no longer merely a buyer nor is passive.The buyer today is socially nourished through elements such assharing, likes, conversations, reviews, and interests. The use of socialCampaigns
  5. 5. 8 9Social Technology Quarterly 06Kulizanetwork serves social interaction and encourages user contributionthroughout the purchase process - right from research to activitiesfor post the purchase. There is a sure transfer of power becauseadvertising alone would not generate that much needed buzz.Whether one terms it ‘social’, ‘viral’ or calls it ‘word of mouth,’ sharingis an unstoppable activity.A brand that goes ‘social’ brings in the elements that revolve around acustomer not only in a terms of being a part of the ‘target’ market butinclude the entire social world of the shopper. Interests, behaviours,shopping patterns, activities of the shopper and that of the shopper’sfriend circle are all roped in. Customers have varied and new waysto research, compare, evaluate, purchase, and provide feedback onproducts and services. The agenda of engaging a shopper personallydoes not mean providing attention alone, but making sure anythingthe person needs, would like, and would want help, guidance fromare all available. The superlative bit of it is that it is effortless forthe shopper. After such a shopping experience the brand becomesthe sought-after destination. It is these brands that, irrespective ofwhether they have the product the customer is looking for, will berelied on and people will be loyal to.Elements of SocialA typical purchasing process begins with awareness- about a brand,its utility, etc, moving on to being interested in the product and finallypurchasing it. Radically working out commerce includes layers ofsocial in each of the stages in the process. There are different aspectson which businesses are creating conversations. Consumers mayend up finding themselves in situations, unable to make purchasedecisions. In such a situation when the next step to take is not known,advices, recommendations, support all kick in. The people in theperson’s social world around the customer act as guides towardsdecision making.The following are some of the identified elements of being social:• Content: A great social experience includes presenting the rightcontent to the right customer at the right time. Curation is aserious affair in social commerce. From purchase history to whatdevices people are on, content has to be new, useful, and thatadds value to consumers.• Referrals and recommendations: A report made by Nielsenindicated that 92 percent of people go by recommendations for apurchase online rather than believing in advertisements.• Reviews and ratings: Showcasing reviews from satisfiedcustomers, friends from their social networks adds to thecredibility of the brand and is extremely influential in conversions.• News feed: Friends see stories as they appear in the news feed.Any and every activity is again a point of sale. This stream flowsand connects brands to people super fast.CreditsTop: Stuart ConnorMiddle: Aural AsiaBottom: iBaNe• Reward: Rewards increase repeat purchases and build loyalty.Ranking people, awarding points, and offering rewards temptpeople to stick around longer and even work towards it.• Encourage advocacy: Authentic advocacy influences thepurchase decisions of everyone around.There are applications, tools, and technologies that make all of theabove happen. Tools have been made that measure social ROI ratheraccurately: from tracking number of likes, tweets, followers, pins,re-pins, to influences. Sophisticated analyses, metrics, campaignsdesigned based on insights for right targeting, conversions, word-of-mouth to generate great loyalty have come up. The surplus dataabout behaviours, psyche, etc., offer companies opportunities to evenpredict shopping patterns.Comprehend and work on the entire shopping behaviour cycle withthe right suites of applications. Social commerce is about customer-satisfaction, providing great experiences, and being customer centredover the traditional sense of being profit and transactional driven.There is a great deal of focus on relationships; the motive is nolonger sale but repeat sales along with achieving a dollop of loyalty.To sell better and build loyalty from social audiences stimulate them,add value, and transfer the power of transaction to them. Createenvironments and platforms that actively engage with users, maintainrelationships in a personal manner- that replicates building one toone rapport. The feminists fought for their rights with the motto “Thepersonal is political” and social commerce is making its stand with“The personal is social.”ReferencesCavazza,Fred.“The Six Pillars of Social Commerce.” Forbes.02 Jan2012.Chaney, Paul. “Word of Mouth Still Most Trusted Resource SaysNielsen; Implications for Social Commerce.” Social Commerce Today.16 Apr 2012.Curty, Renata Gonçalves, and Ping Zhang. “American Societyfor Information Science and Technology.” American Society forInformation Science and Technology.48.1 (2012): 1-10.“Social Commerce.”Wikipedia Inc.10 Sep 2012.“Starbucks Card.” Starbucks. Starbucks Corporation. Web. 10 Oct2012.• Group buying: Just as how news spreads quickly, group buying,group gifting spread word about a brand, offering conveniencein terms of gaining discounts and making gifting easy. It is nowonder that group buying can make brands go viral.• Exclusives: Exclusive fan deals, discounts for sharing,personalized shopping experiences, pop-up shops, help makebrands stand out. Offering a privilege or a benefit, and a bonusthat no one else offers ensure people stay and the cycle ofrecommendations and referrals continues.• Rewards: Incentives drive people to respond. Through social,make users perform targeted, marketing actions. Offer rewardsfor expressing views, writing a review, clicking a link, sharing apromotion, referring a friend, etc. Adding game techniques to theincentives is another brilliant move.• Socially driven loyalty programs: Starbucks is famous for itsloyalty cards and programs. Making a move to going social withgifting cards, rewards, and points, the program gets better withthe convenience it offers in terms of technology. The card can beadded to the Starbucks mobile app, there is an app that allowsusers to check the level they havee reached in the programusing the “star” - My Starbuck Rewards’ currency, and there areelements of fun. When one makes a purchase and goes to thattab on the mobile app, one sees a star actually fall into a cupand that tracks progress over time. This is evidence enoughto show that loyalty programs are now no longer for ensuringrepeat purchases built around points and rewards and repeatpurchases but built around people: enabling social mechanicsand designing a simple user engagement model.Going SocialGoing social is about redefining engagement. Engagement is notabout interacting with random games and making offers after oneaccumulates fans. There are various touch points in all the phasesof the shopping experience where engagement and personalizationneed to be driven.• Acquaint: To drive awareness around a brand that claims being‘social’ it’s is necessary to reflect that in the awareness drive,which has to be social in nature to elicit interest. With the plethoraof data available, set up campaigns that involve people togetherbe it a contest or a basic game.• Drive: Create a social world where people can participate inactivities together. Be it in the form of extending referrals or groupbuying, make the world a personalized one with the help of thatdeluge of data available about online behaviours and activities.• Support: In order to be a core part of people’s lives, engage, talk,and extend support in forms of content, stories, expressions, etc.Conversations that will help the community will also build brandadvocates. They curate information, influence other buyers, andcommunicate about brands across different social networks.
  6. 6. 10 11Social Technology Quarterly 06Kuliza3. MindtreeMindtree’s original logo looked more appropriate asthe signboard to a less discerning art gallery ratherthan a logo for a global information technologyservices corporation with 11,000 employees basedall around the world. The revised logo is certainlymore appropriate if not a little expected for what sucha corporation ought to look like. Nevertheless, it is avery positive step in the right direction, communicatingcapability, professionalism, technology, and a globalperspective.1. MicrosoftMicrosoft has taken a page out of Apple’s mandate onsimplicity to reveal this new logo. Referring to some ofits consumer logos from the past, the new logo doesaway with the differentiation between the corporateand consumer logo: a silly idea to begin with. Whilethe applications of the new logo are very cleverconsidering how Windows 8 is composed of an arrayof functional squares, the execution is a bit weak. Thelogo looks nondescript and simple rather than uniqueand simple.2.TwitterIf a company has been able to replace its name with asymbol, that can be considered a huge sign of successin my view: think Nike, Mercedes, Shell, and Apple.Where twitter makes this success even sweeter is in thetightness of it all - not only does the symbol represent thebrand name and the company’s mission statement, butalso the very action that the company’s product enablesyou to do. This sort of clarity in the messaging of the logocomes by once in a generation!Focus55. ShutterstockThe old logo shown here is not exactly the oldest logo in thehistory of Shutterstock. In the last ten years the companyhas rebranded itself at least four times, starting with a ratherlikeable camera with a film strip rolling out of it with the wordsShutterstock on it. As the logo evolved the camera becamemore and more abstract and the type became an arbitrarycontinuation of letters where ever possible. I am happy to saythat the new identity is a beautiful and refreshing departurefrom that line of thinking. The two corners of the framethat define the “o” can be used in myriad ways across anymaterials, highlighting what ever the company wishes to callattention to. Bold, inventive and cleanly executed!4. StumbleUponStumbleUpon’s new identity represents a healthy evolution fromthe dot com era logos of the early 2000s. The new colours arereduced to just two, both bold and vibrant. A graphic reductionsees unnecessary gradients and shadows eliminated, giving thelogo a clean minimal feel. The interplay between the mark andthe type is more harmoious. This has a knock down effect tothe website, and that is where massive strides have often beenmade: gone is the light blue and white machine language basedfunctionality that has typified so many sites built in the last tenyears.Rebrandings ofTech Companiesby Amit MirchandaniPhoto Credit: Underconstruction.com
  7. 7. 12 13Social Technology Quarterly 06KulizaColours are crucial for brands, especially because of thevisual impact they can create in terms of establishingvalues and ideas a brand would want to project.Withtheir aesthetic properties and psychological impactcolours can turn around a brand’s identity.by Anindya KunduIllustration Credit: Anindya KunduThe roots of the word ‘brand’ can be tracedback to the old Norse word ‘brandr’ whichdenotes the ancient use of hot iron to markcattle of one farm from another. The word‘maverick’, which originally meant unbrandedcattle has its origins in the story of a Texasrancher, Samuel Augustus Maverick,whose neglected cattle were rounded up byneighbouring ranchers.Branding also found its expression inmarkings on bricks, watermarks on paper,and signs on barrels to distinguish products.Even the signatures of master artists suchas Leonardo da Vinci’s on paintings can beconsidered as a form of branding. Much after,branding was done with the use of logos onprinted posters and product packaging. Withthe advent of radio and television slogans,jingles, and mascots started appearing withbrand advertisements.Today, a brand is a voice that gives aunique identity to an organization or entity,distinguishingitfromothers.Itoftencomprisesthe name, corresponding typography,shapes, symbol, logo or any other designelements including the colours used by theorganization. Great branding is effective indriving loyalty, bring to limelight the productsor services offered by a company and boostsales or transactions in unparalleled ways.Colour is a prime visual element peopleperceive. Hence it plays a crucial role in anydesign. It is extremely important in brandingbecause not only does it add aesthetic valuein terms of art but also because differentcolours have different psychological impactson viewers. Thus the choice of colours inbrand identity requires to be made accordingto the vision of the company and the impact itwants to create on its specific audience.A Glimpse into Colour TheoryColours can be fundamentally describedImpact of Colourson Brand IdentityCampaigns
  8. 8. 14 15Social Technology Quarterly 06Kulizausing two models – the additive model andthe subtractive model. The additive model ofcolour mixing is based on the behaviour oflight mixes. Here red, green, and blue lightcombine to produce white light. The behaviourof mixing of colour pigments like any dye,paint or ink give rise to the subtractive model.In this case, any colour can be generated bymixing the colours cyan, magenta, yellow,and black, and is the foundation of colourprinting and photography. Colours can alsobe defined using the three attributes of hue,saturation and lightness.Based on the traditional “Colour Wheel”that dates back to Goethe’s Theory ofColours published in 1810, red, yellow, andblue are the primary colours. By mixing theprimary colours, secondary colours such asorange, green, and purple are produced.Consequently, by mixing a primary colourwith its adjacent secondary colour the tertiarycolours - vermilion, marigold, chartreuse,aquamarine, violet, and magenta - arederived. Colours can also be divided basedon their relative ‘temperature’, based on bothnature and cultural norms. Warm coloursinclude red to yellow including orange, pink,brown, and burgundy. Cool colours includegreen to blue including shades of violet. Coolcolours have a calming effect and appear torecede, while warm colours represent heatand motion, pop-out and create emphasis.Hence cool colours are often used forbackgrounds and warm colours for makingheadings or graphics to stand out.While choosing a colour scheme or acombination of colours that work together,relative positions of colours in the colourwheel offer an advantage. Thus someof the basic colour schemes which existare: monochromatic (tones of a singlecolour), analogous (colours closely related),complementary (colours opposite to oneanother), split complementary (whencomplementary colours are split to twoclose and equidistant colours), triadic (threecolours equally separated in wheel), and thetetradic (also called double complementary).The Functional Impact ofColoursThe functional aspect of colours is to createemphasis or prominence, which is a primarygoal of branding. Thus along with using theother principles of placement, continuity,isolation and proportion, contrast betweencolours is the factor determining readabilityand attention of the viewers. Black onwhite is the easiest to read on both paperand computer screens. Other most legiblecombinations include black on yellow,green on white followed by red on white.As mentioned earlier, warm colours tend topop-out more compared to cooler colours,which appear to recede. This can be usedeffectively to emphasize branding.The Psychological Impact ofColoursDifferent colours have different emotionalimpacts associated with specific moods.Red is the colour for passion. It is knownto increase human metabolism and has anexciting, dramatic effect. Even the richercolours- burgundy and maroon find their appealamongst wine and fine living enthusiasts.Orange is an active and energetic colour. Itpromotes enthusiasm and creativity. It has aless formal and more inviting appeal to it. Itworks well for anything related to food andcooking. Being hard to find in nature theyit also stands out and hence used in life-jackets, road cones and hunting vests.Yellow is a highly active colour and fostershappiness. Hence it is the colour of smileyicons and is commonly used to evokefriendliness.Green is the colour for nature and freshness.It is also associated with currency and hencewealth and prosperity.Blue is the colour of tranquillity, peace andstability. It symbolizes openness, intelligenceand faith. The negative connotationassociated with it is melancholy as expressedin blues music.Purple has both the stimulation of red and thecalmness of blue. It is the colour of royaltyand extravagance. This association stemmedfrom the difficulty in preparing purple dye inancient times. It is also commonly seen ingemstones, flowers, and wine.White is the colour associated with purity andperfection. In some Asian cultures it is thesignifier of death.In spite of all its negative connotations withdarkness, evil and death, Black is also thecolour of elegance, power and strength ifused appropriately in certain contexts.Colours and Aesthetic valueThe aesthetic values of colours are derivedfrom the choice of colours according to thecontext it has been used in as well as fromthe harmony in the colour palette. Thisharmony can be obtained from the use ofthe basic colour schemes – monochromatic,analogous, complementary, splitcomplimentary, triadic, and tetradic. AdobeKuler is a great resource for finding andcreating sophisticated colour themes basedon these basic colour schemes.
  9. 9. 16 17Social Technology Quarterly 06KulizaRedTurquoiseNature & FreshnessCurrency & ProsperityFriendliness & HappinessEnergy & DynamismGreenSpring GreenYellowOrangeCyanOceanStability & IntelligenceCalmness & PeacePassion & DramaIncreases MetabolismBlueVioletMagentaRaspberry
  10. 10. 18KulizaUse of colours across differentsectorsDifferent business sectors show particularpreferences towards certain colours:Food and Beverage IndustryIt has an affinity towards the colours red,yellow, and orange. This is apparent in thebranding of Coca Cola, McDonalds, KFC,Taco Bell, Café Coffee Day and almostany other fast food chain. Red stimulatesappetite, while yellow and orange impartfriendliness. Green is also used as in Subwaybranding to indicate freshness and nature.Pepsi and Dominos introduce a relativelyuncommon blue, but it again has red to offsetand contrast it.Automobile IndustryAutomobiles look for a classy appeal andusually use black and chrome textures.Prominent examples include Nissan, Honda,Jaguar, and Mercury. Red is also usedsometimes to evoke passion as we cannotice in Toyota, Audi, Suzuki, Fiat, and manyothers. Reliability and stability are evokedby BMW, Ford, Mazda, Volvo and Saab.Even the sporty yellow and orange find theirexpressions with Ferrari, Renault, Opel, andChevrolet.IT IndustryComputers and IT services companies havea preference towards blue as it gives thesense of clarity and stability. DELL, HP, IBM,Intel, Microsoft, Facebook, and eBay haveblue as the foundation to their branding. Incase of electronics both red and blue findprominence. Samsung, Phillips, Sony, andPanasonic use blue while others like LG,Canon, Toshiba, Hitachi, and Bosh are basedon variations of red.Telecommunications SectorOrganizations in the mobile andcommunications sector have similar colourpreferences in order to represent energy,dynamism, reliability, and friendliness. Hencecolours such as red, blue, yellow, and orangeare common. For example, the blue brandingof Nokia, Samsung and Ericsson, the red ofVodafone and Virgin, and orange used byOrange are examples that stand for theseattributes.Retail SectorThis sector too uses a lot of red to captureenergy, yellow and shades of orange forfriendliness, and a splash of blue and greento denote freshness.ToysSince children are attracted by primarycolours, logos of toy companies often usebright primary colours. Children tend to preferprimary colours and hence clothes and toystypically have primary colours.Fashion IndustryThe colours associated with luxury areblack and richer shades of red like brown,burgundy, maroon, and forest green. Hencemost designer labels use either black orthese colours to make their statement totheir niche audience. This is also the casewith most wine, liqueur, and other premiumproducts.Colours have a deep impact on thebranding of a product or service due to itspsychological, functional, and aestheticproperties. Although there are no fixed rulesfor choosing colours for a specific brand,certain trends and patterns according tothe industry and audience profiles can bemapped. While there are certain norms andrules based on colour theory, exceptions alsoexist and have alternative appeals to standout of the crowd.Selling technologies by providing the space to any customer to experiencea device before purchasing adds to the whole experience of buying a greatdevice. With this idea replicated for purchasing most goods and not onlydevices, the verdict is clear. It is the experience that closes a deal. However,in the age of social when with a click an experience can be made exclusive,only a handful of experiences online really follow the key word: exclusive.Here is a portfolio of events and experiences enhanced by technologies.These represent the incredible results and outcomes achieved through amix of behaviours, activities, and technology.Smart businesses are using technologies to create integrated physical,digital, mobile, and social shopping experiences and events where customerscan access plethora of information while they shop. Such events that goacross all marketing and shopping channels provide the insights and dataone can innovate with. Stores are rolling out apps that help accomplish richexperiences with each customer. These events, activities, and experimentsare great examples of embracing the smart customer with smart technologiesand provide meaningful cohesive customer experience. This ensures thatonline and offline experiences are not separate but integrated for holisticshopping experiences that lead to repeat purchases and brand loyalty.Technology enables and experiences win!The Proof is inthe Experience:Enhancing Experience by leveraging technologiesFor brands, apps serve as a lastingmarketing channel that enables directcontact with target audience.They offer notplain engagement but holistic experiences.Here are some activities conducted bybrands combined with online, offline andaugmented reality elements that can aweany marketer.by Vandana U.Photo Credit: Micurs
  11. 11. 20 21Social Technology Quarterly 06KulizaA phenomenon that has driven crazy onlinesales and engagement is augmented reality.Virtual reality is a simulation of a realenvironment; however, people get into adifferent reality defined by the virtual spaceand goes beyond physical reality. On theother hand augmented reality, as Wikipediadescribes it, “is a live, direct or indirect,view of a physical, real-world environmentwhose elements are augmented bycomputer-generated sensory input such assound, video, graphics or GPS data.” ErickSchonfeld opines that Augmented Realityenhances the real world with digital data,and therefore it is more interesting than afabricated environment.An experiment that caught my eye was themix of apps and augmented reality with pop-upstores. The concept of pop-ups is not new anylonger on the social commerce space. With thesuccess of pop-ups soaring, adding augmentedreality to them seems a clever move.A leading shoe brand dedicated to sportculture, Airwalk set up invisible pop-up shopsin New York and Los Angeles. Inspired bythe idea of a treasure hunt, 600 pairs ofshoes were hidden. People who wanted apair of Airwalks - the Ladies Jim Plastic andthe men’s Jim Tennis - had to download theGoldRun app on their smart phones. Peopleheaded to Venice Beach, Los Angeles, or1 Washington Square, New York City, to capturevirtual versions of the sneakers and GPS-links to each location were provided. As soonas people located a shoe on their phones andtook a photo of the shoe, they were directed toAirwalk’s e-commerce site and given a passcode link to pre-order the exclusive shoes.For Airwalk, hangouts and famous locationsin the two cities turned into their stores.Without a brick and mortar shop, 600pairs of shoes were sold in a day. Airwalkwitnessed the highest amount of traffic onits site during this event.Airwalk:Augmented Reality CampaignCredit: PiermarioAnother experience leveraged with socialmedia (not with an app, but a map) isby Volkswagen Brazil. The motor brandsponsored the Planeta Terra Festival in SaoPaulo and promoted its car, the Fox, througha mix of Twitter, Google Maps, and reallocations where prizes were hidden. Similarto a treasure hunt, ten tickets to the festivalwere hidden across the city and these weredisplayed on a microsite using Google Maps.However, one couldn’t zoom in to spot theexact location unless it was tweeted about.The more number of tweets containing the2hashtag “#foxatplanetaterra” were sent,meant the closer the zoom on the map.The first ones to arrive at a location wheretickets were hidden would win. It is reportedthat in less than two hours after it began, thecampaign became the number 1 trending topicin Brazil and the event stretched to 4 days.With a mix of online and offline strategies,Volkswagen generated a huge amount of wordof mouth. The campaign played on behavioursthrough gamification, such as the desire towin. With tweets acting as gates to levels ofzoom, the excitement of crossing each leveland being closer to the ticket pumped in therequired adrenalin.Although Volkswagen did not offer anexperience directly in relation to the car,which perhaps would have been morerelatable, the outcomes of this campaignnevertheless were phenomenal.Volkswagen:#foxatplanetaterraSocial Technology Quarterly 06
  12. 12. 23Social Technology Quarterly 0622Kuliza4Speaking about motor companies, Fiattoo stepped onto the bandwagon ofexperiences. Catalogues can be heavyto read. Instead of making a boring read,Fiat made people experience its catalogueas a part of its Street Evo campaign. Fiatbroke the old pattern of visiting a showroom,checking a catalogue, and test driving thecar, by creating a new gamified experience.Promoting Punto Evo to its evolved and techsavvy audience, Fiat came up with a mobileapp that read road signs as QR codes.Instead of merely reading the features of thecar off a catalogue, after capturing a roadsign, one could get a visual on the feature ofthe car on one’s phones. So if one scannedthe stop sign, the user would get to knowall about the new breaking system; a curveahead sign would inform the user about thecar’s intelligent lighting system that guidesthe driver in curves. Now that sounds like aregular app. However, Fiat added a game-like experience by hiding hundreds of prizesin the traffic signs, the first ones to discoverthem won the prize. The campaign saw1,000,000 traffic signs being spotted onweek one, an 82 percent increase in testdrives, and it is Fiat’s most-seen cataloguein the company’s history. What made thiscampaign a success was the incentivepart of it. Incentives and rewards make theexperience all the more fun and worthwhile.The app and the experience manage tosatiate any visitor’s curiosity. Anyone buyinga car will have numerous questions, andwhat better way than this to answer, througha game-like experience.3Fiat:Street EvoCredit: Bokeh Burger Lynx’s fallen angel campaign usedaugmented reality to reflect itself as abrand that brings a man’s fantasies veryclose to reality. With the objective ofraising awareness and driving purchaseof the Lynx Excite range, Lynx exploitssocial media to engage its targetaudience - 18 to 24 year old males - withangels seemingly falling from the skiesfor them at London’s Victoria Station. Alive broadcast, yet highly personalized,it bent towards the angle of literallyfulfilling fantasies. It talks to men inan exciting way, making them feel thatthey are attractive, by making a woman‘literally’ fall for them. Also, combinedwith a Facebook game in which Lynxchallenge users to try and release oneof the angels - model and actress KellyBrook - the campaign is a real winner.The campaign worked because it turnsaround a fantasy as if it were actuallylogical for the angel to fall.References:“Augmented Reality.” Wikipedia. WikimediaFoundation Inc,17 Sep 2012.Biela, Martin. Autofspace: Digital onlineautomotive campaigns. Autofspace, 08 May2011.Hui, Francisco Hui Francisco. PSFK. PSFKServices,05 Oct 2010.“Lynx Excite Angels meet the public atLondon Victoria.” Lynx Effect Blog. Lynx, 14Mar 2011.Parker, David. “Lynx Excite ‘fallen angel’ byTullo MarshallWarren.” Campaign:TheWork.Haymarket Haymarket Business Media,15 Mar 2011.“Volkswagen Fox: Twitter Zoom Campaign.”Digital Buzz.N.p.,02 Mar 2011.Lynx:Fallen Angel
  13. 13. 24 25CommerceMakingLoyaltyProgramsWorkLoyalty programs rule our lives. They determine the airline we fly with.Sometimes even the schedule we take. They influence where we meet,drink coffee or have lunch. They determine the products we buy insupermarkets. They have the power to influence us to spend more thanwe need to on items that we would view as otherwise unnecessary.And they do this because companies understand that by givingtheir customers a membership number and a plastic card, they canseemingly satisfy people’s basic psychological aspirations and needs.Providing these types of symbols work at a psychological level totarget and trigger actions and behaviours that engender repeatpurchase and advocacy. That is, they create loyalty. As much as allcompanies want to distinguish themselves with a uniquely brandedloyalty program for their customers, the elements of each program areoften indistinguishable. American Airlines launched the first air milesprogram in 1981 that seemingly every other airline has since copied;ditto with supermarkets, hotels, and cafés. It is hardly their fault asthere are a limited number of elements that can be employed in theirloyalty programs:• Points: calculated by the amount a member spends• Levels: based on how much a member spends during a specificperiod of time• Badges: awarded based on what level the member has reached.It signifies, particularly to other people, the rewards and benefitsthe member receives• Rewards: offers, discounts, and benefits that a member receivesLoyalty programs have undergone atransformation with a shift from onlyrewards-based programs to well-designed, gamified structures createdbased on models of motivation and ofbehaviour.by Diarmaid ByrnePhoto Credit: Onigiri-kun
  14. 14. 26 27Social Technology Quarterly 06KulizaIn the last few years, these elements have been used by gamedesigners to create environments that lead to longer-lasting andmore in-depth participation, replicating the experience people havewhile playing traditional video games. This has become known asgamification. Game designers applied these elements to insightsfrom psychology and motivation theories to create immersive andengaging experiences that ensure people continue to participate to agreater extent than in traditional loyalty programs. The best of thesegamified loyalty programs not only add points, levels, and badges, butalso combine great game designs with an understanding of behaviourand motivation theories. To understand why and how loyalty programswork it is important to understand how people behave. This is bestdone by looking at psychology models of motivation and behaviour.From a perspective based on psychology, loyalty programs aim todrive behaviours of different types of participants, at specific times,based on triggers that the program provides. Loyalty programs drawon the work of Abraham Maslow and his Hierarchy of Needs. Thepurpose was to identify the basic types of human motivations and theorder in which they generally progress. There are five needs:• Physiological: air, food, water, sex, sleep• Safety: health, employment and financial security• Belonging: friendship, family, love, intimacy• Esteem: confidence, achievement, respect, self-esteem• Self-actualization: the desire to become everything that one iscapable of becomingMaslow believed that these needs motivate people to act. Theirbehaviours are driven by their desire to satisfy their needs, startingwith fundamental physiological and safety needs, to higher-levelneeds of achievement and self-esteem. Once the needs at each levelare satisfied a person is motivated to satisfy needs at the next level.Michael Wu notes that Dan Pink expanded on Maslow’s self-actualization needs in his book Drive: The Surprising Truth AboutWhat Motivates Us. His view is that once many of the basic levelsof needs have been satisfied, people are more motivated by intrinsicmotivators. Pink identified three needs that provide intrinsic motivation:• Autonomy: people want to have control over their work• Mastery: people want to get better at what they do• Purpose: people want to be part of something that is bigger thanthey areBoth Maslow’s Hierarchy of Needs and Dan Pink’s Three IntrinsicMotivators provide an explanation about why people are motivatedto act. However, a loyalty program still needs to trigger desiredbehaviours at a specific time to ensure member participation.The key to triggering behaviours is to make sure that loyalty programswork as intended. B.J. Fogg developed a behavioural model - Fogg’s
  15. 15. 28 29Social Technology Quarterly 06KulizaBehavioural Model or FBM - to help designers and marketers ensurethat all psychological elements are present to trigger behaviour. Heposits that there are three factors with subcomponents that lead tocertain behaviours:• Motivation: pleasure / pain, hope / fear, social acceptance /rejection• Ability: time, money, physical effort • Triggers: facilitator, spark, signalFogg argues that in order to trigger desired behaviours, all threefactors need to converge at the same time. Thus, the loyaltyprogram needs to be crafted in a way that these three factors occurat the same time. It must provide a trigger to initiate the behavioursit wants from its members. It then needs to ensure that they aremotivated and have the ability to complete those behaviours. Thatis, the loyalty program should offer sufficient rewards to the personto be motivated enough to do the action, and the person should havethe ability to complete the action.Along with understanding motivation, designers of loyalty programsneed to understand how their members would engage with the loyaltyprogram. When conceptualizing a program, designers need to ensureit appeals to as many people as possible. Richard Bartle developed asimple player typology with four basic player types to understand themotivations that drive people to play:• Achievers: people who are motivated to achieve points and otherrewards for the prestige of having them• Explorers: people who prefer to discover and learn about thegame, often at their own pace• Socializers: people who play for the social aspect rather thanthe game itself• Killers: people who enjoy competing against othersBy understanding that there are different types of players, designersand marketers are better able to ensure that aspects of the loyaltyprogram appeal and motivate as broad a range of people as possible.Loyalty programs are designed to meet the needs of people in a way thatmotivates them to behave in a specific manner. They need to be broadenough to attract different types of people, whether they are achievementorientated or socializers. When we apply Maslow’s Hierarchy of Needs,Dan Pink’s focus on factors that provide intrinsic motivation, Fogg’sBehavioural Model and Bartle’s player typology, we can see why loyaltyprograms are successful in motivating specific behaviours. Maslow andPink explain what people need, and in order to satisfy these needs peopleare motivated into action. The belonging needs in Maslow’s Hierarchycorrespond to the social aspect of participating in loyalty programs. Theesteem needs correspond to status, achievements and leaderboards.In the case of Dan Pink’s three factors, mastery corresponds to points,progression and levels, and purpose corresponds to goals and targets.For loyalty programs to be successful, they need to meet these needsto motivate member behaviour. However, to trigger this behaviour,according to Fogg, the program’s mechanics must ensure that thesethree factors all occur at precisely the same time.Credit: DijleBy examining airline loyalty programs, it is possible to see how theseapply insights from psychology and motivation theories. They appealespecially to Bartle’s achievers and killers typography. People aremotivated to achieve a certain level of status from their membershipprogram so that it satisfies their belonging and esteem needs. Theyare part of a (possibly) small percentage who are platinum membersand who receive platinum-level benefits. As such, they also have thesymbols to reflect this status - platinum membership card, dedicatedcheck-in lane, lounge access.Another example of a loyalty program that applies insights frompsychology and motivation theories is Nike+. It is not a traditionalloyalty program; in fact it gamifies running. However, by aligning withpeople’s goal - improving their athletic performance - Nike ensures itshares a common purpose with people. Nike helps them achieve theirgoal with their runners, clothing, and Nike+ apps, while increasing theswitching costs from Nike to one of their competitors.The Nike+ fitness tool uses game elements to encourage people toimprove their fitness. A device is fitted into Nike runners and thensynchs with an iPhone or iPod. Users can track their activities,performance - distance, time, pace, calories burned - and theirprogression, set challenges, and compete with their friends. They canpost their run on Facebook and Path and hear real-time cheers forevery comment or like they receive.Nike+ has been extremely successful, and looking at how it works itis easy to see why. It appeals to all four of Bartle’s player typologiesby allowing people to interact in different ways with the tool:compete against others, work to achieve goals, meet other exerciseenthusiasts, or work on fitness at their own pace. It also satisfies thesafety, belonging and esteem needs of Maslow’s hierarchy, and theintrinsic motivators that Dan Pink identified. Nike+ also shows Fogg’sBehavioural Model in action: users have targets and challengesbased on their ability and the app motivates them while running toachieve them, triggering behaviours.Loyalty programs will evolve to being a constant partner in theirmembers’ lives through smart phone apps, and not just thought ofwhen queuing to purchase products in a store. Nike+ is one suchexample of where loyalty programs are heading. They will be gamifiedto create more engagement from members. To do this well they needto be cognizant of the psychology of motivation and behaviour. Loyaltyprograms will have a clear purpose that is shared by their membersand they will help their members achieve it.References“Abraham Maslow.”Wikipedia,The Free Encyclopedia.17 Sep 2012.Wu, Michael. “Gamification 101: The Psychology of Motivation.”Lithosphere.03 Jan 2011.Fogg, BJ.“Fogg’s Behavioural Model.” Online Posting to Twitter.Web.30 Oct.2012.
  16. 16. 30KulizaNever in the history of commerce has sucha deluge of data been vaunted beforean information-hungry, and social-savvyaudience. Only a decade ago, CERN, aEuropean research organization, set up oneof the world’s largest databases with over11.5 billion web pages. Today, the averagesupermarket has access to shopping data:stores that are at least twice as big, if notbigger in size.When consumers use their credit cards atrestaurants, clothing stores, or other retailbusinesses, those purchase choices arerecorded and processed. Within the hour,businesses have the ability to unearthunderlying consumption patterns that canbe produced in real-time. In a matter of fewhours, not only does the user behaviour trendbecome more evident, but also the correlationbetween people, events, locations, andpreferences emerge from silhouettes toreveal a fairly clear picture of how marketingcampaigns are performing. The availabilityof such large amounts of actionable data istransforming the communications landscapeand is also having a sibylline effect on thefabric of social commerce.What is Big Data?Wikipedia defines Big Data as “Datasetswhose size is beyond the ability of typicaldatabase software tools to capture, store,manage, and analyze.” 2.5 quintillion bytesis the amount of data created every day.Although, this proliferation of data is anevidence of an increasingly prying world, itis possible for Big Data to positively impactsocial commerce. While most research intoBig Data so far has focussed on addressingquestions related to its volume, this articleposits the case of the impact of Big Dataon businesses with a special emphasison social commerce. The article alsoexamines the potential value that Big Datacan create for organizations, and illustrateand quantify that value.CommerceThinking BigDataBusinesses are leveraging big data and analyzing it togain a stronger competitive position.This article looksat the significance of data and how it is used to conductexperiments to develop the next generation of productsand services.by Siddharth Balaravierror) {alert(‘Error occured’);} else {alert(‘Cook was successful! Action ID: ‘ + response.id);}});}function postCook(){ FB.api(‘/me/[YOUR_APP_NAMESPACE]:cook’,‘posrecipe: ‘http://fbwerks.com:8000/zhen/cookie.html’ },function(response) {if (!response || response.error) {alert(‘Error occured’);} else {alert(‘Cook was successful! Action ID+ response.id);}});}function postCook(){ FB.api(‘/me/[YOUR_APP_NAMESPACE]:cook’,‘post’,{ recipe: ‘http://fbwerks.com:8000/zhen/cookie.html’ },function(response)(!response || response.error) {alert(‘Error occured’);} else {alert(‘Cook was successful! 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Action ID: ‘ + response.id);}});}function postCook(){ FB.api(‘/m[YOUR_APP_NAMESPACE]:cook’,‘post’,{ recipe: ‘http://fbwerks.com:8000/zhen/cookie.html’ },function(response) {if (!response || response.error) {alert(‘Error occuredelse {alert(‘Cook was successful! Action ID: ‘ + response.id);}});}function postCook(){ FB.api(‘/me/[YOUR_APP_NAMESPACE]:cook’,‘post’,{ recipe: ‘http://fbwerks.com:80zhen/cookie.html’ },function(response) {if (!response || response.error) {alert(‘Error occured’);} else {alert(‘Cook was successful! Action ID: ‘ + response.id);}});}functpostCook(){ FB.api(‘/me/[YOUR_APP_NAMESPACE]:cook’,‘post’,{ recipe: ‘http://fbwerks.com:8000/zhen/cookie.html’ },function(response) {if (!response || response.err{alert(‘Error occured’);} else {alert(‘Cook was successful! Action ID: ‘ + response.id);}});}function postCook(){ FB.api(‘/me/[YOUR_APP_NAMESPACE]:cook’,‘post’,{ reci‘http://fbwerks.com:8000/zhen/cookie.html’ },function(response) {if (!response || response.error) {alert(‘Error occured’);} else {alert(‘Cook was successful! Action ID:response.id);}});}function postCook(){ FB.api(‘/me/[YOUR_APP_NAMESPACE]:cook’,‘post’,{ recipe: ‘http://fbwerks.com:8000/zhen/cookie.html’ },function(response)(!response || response.error) {alert(‘Error occured’);} else {alert(‘Cook was successful! Action ID: ‘ + response.id);}});}function postCook(){ FB.api(‘/me/[YOUR_APNAMESPACE]:cook’,‘post’,{ recipe: ‘http://fbwerks.com:8000/zhen/cookie.html’ },function(response) {if (!response || response.error) {alert(‘Error occured’);} else {alert(‘CoIn the old days most dataproblems could be solvedas computing speed caughtup. Now, there’s this delugeof new kinds of data which isgrowing faster than Moore’slaw. We’ve basically brokenwhat Moore’s law can copewith,and so we need a bunchofnewtechnologiestogetonthe right side of that again…
  17. 17. 32Social Technology Quarterly 06KulizaWalmart Labs, Shopycat, andBig CommerceIn a bid to strengthen its commercial offerings,Walmart acquired Kosmix and its SocialGenome in early 2011. The Social Genomeorganizes the Internet into topic pages allowingusers to explore the Web by topic. This platformthen works as a Big Data application that iscapable of aggregating in-store, online, andsocial data and analyzing them to power aplethora of social commerce applications.Walmart implemented this with Shopycat -a Facebook application that was designedto help shoppers identify better gifts forfriends and family. Shopycat takes a person’sinterests and Likes from Facebook andcombines this information with informationagainst a vast product catalogue to identifyinteresting gift options. For instance, if onehas a friend that is known to quote Barnabus“Barney” Stinson, a fictional character fromthe CBS television series How I Met YourMother, it is quite likely that Shopycat wouldsuggest one pick costumes from the StarWars films as an ideal gift for such a friend.During the month long marketing campaignthat Shopycat was tested, it performedan astonishing 42% goal conversion rate.About half of the users who used the appshared the promotion with their friends, andthe virality garnered an incremental 25% liftin conversions. Moreover, the cost of useracquisition was $2.67, far less than theallocated campaign targets. Such resultsmark the success of such a program. Clearly,in the world of Big Data, success lies inconnecting the dots in fundamentally newways that resonate with people, brands, andsocial commerce.Big data is here to stay as it offers a competitiveadvantage with a projected 60% increasein retailers’ operating margins. It providesstatistics and insights into user and purchasebehaviours which are key factors in influencingshopping behaviours. These datasets allowcompanies to test, experiment, analyze, andthereby help them implement appropriate socialtechnologies and social shopping platforms.References“Big Data.” Wikipedia: The FreeEncyclopedia.Wikipedia Inc,02 Sep 2012.“Case Study: Walmart.” ifeelgoods.ifeelgoods,n.d.Kirsner, Scott. “Richard Dale splits fromSigma to raise money for new VC firm, BigData Boston.” Boston.com. Boston Globe, 09Aug 2012.“What is Big Data.” IBM.IBM,n.d.“World Wide Web.” Wikipedia: The FreeEncyclopedia.Wikipedia Inc,07 Sep 2012.The Value of ExperimentationThe hype around Big Data stems from thefact that it eschews a fundamentally differenttype of decision-making: one that requiresa fundamentally different mindset to theanalyses of the data itself. Think of it as data-driven decision-making on steroids. However,far from the hype, foundational customization,constant experimentation, and breakthroughbusiness models will be the new telltale signsof competition as companies capture andanalyze vast volumes of data.Using carefully crafted controlled experiments,marketers have the ability to test theories,hypotheses, and analyze results of businessdecisions in near real time. These have astriking resemblance to decisions madein hindsight as well as when experiencingone of those “I Wish I Knew” moments.Thus, experimentation can help marketersdistinguish causation from correlation. Thisreduces the variability of outcomes whileimproving the overall probability that theperformance of the control variable increases–sales, sign-ups, or any other goal.Adaptive experimentation can take manyforms. Leading online and consumer goodscompanies are test continuously. In somecases, they divide a small, but statisticallysignificant portion of their web page viewsto conduct experiments that reveal factorsthat drive higher user engagement or greaterconversions. In the world of web analytics,and digital media, this sort of experimentationis commonly known as A/B testing or Splittesting. Similarly, companies selling physicalgoods also depend on experimentationto aid decisions, but Big Data can pushthis approach to a new level. For instance,McDonald’s has installed electronic devicesthat gather operational data in few of its retailoutlets. These devices track and store detailssuch as customer interactions, traffic instores, ordering patterns, billing information,time of the day, etc. Statisticians can then usethis data to model the correlation betweenvariations in menus, restaurant designs, andtraining, among other things on the overallproductivity and sales.33Online commerce has come a long wayin the last two decades. From an ancillarychannel it has grown to a recognized methodof doing business. E-commerce platformstoday are being upgraded to next generationtechnologies to enable cross-channel selling,segmentation, personalization, enhancedsearch, better navigation and more. Whilethe specifics may vary, each optimization hasthe same goal: to maximize potential revenuethrough improved user experience.The basics of doing business, however,remain the same. Customer trust and loyaltyremain vital to businesses. While technologyis upgraded to the back-end every fewyears to maintain infrastructure, it is userexperience (not from a design perspectivealone) that is key to their survival. The linebetween online and offline sales has blurredand many companies have dropped the ‘e’altogether. As a result, crossing channels isnow the leading driver for revenue.The majority of commerce portals online seekto drive traffic by using price as the primemotivator, but have enjoyed limited success.Moreover, they have failed to create long termuser loyalty. There is no denying that price isthe first consideration for a lot of purchases,especially when it comes to products that areexpensive and have a short-term productcycle – like air tickets. However, if one islooking to buying something that lasts longer,which can include an expansive range ofthings from books to curios to refrigerators,there are a plethora of e-stores to choosefrom. What then is the factor that drives theplatform chosen by customers?Trendwatching.com recently reported that alot of consumers no longer only look at thecost or the convenience of online shopping.Just as with brand retail outlets, they do notmind shelling out a few extra dollars for aproduct, if they trust the store they are buyingit from. While gaining this trust is not reallyeasy, some brands have made a headwayExperienceShoppingThe primary objectiveof the online marketertoday is to drive loyalty byproviding the best possibleshopping experiences –ones that steer customersto come back for more.This article looks atexperiences moderne-commerce sites offer.by Anish DasguptaPhoto Credit: Sidewalk FlyingCommerce
  18. 18. 34 35Social Technology Quarterly 06KulizaReferencesChu, Julian. “The Ultimate Online ShoppingExperience, Part 1: Strategy and Design.”E-Commerce Times 10 Dec 2008.Gerejo, Lyndon. “Improving The OnlineShopping Experience, Part 1: GettingCustomers To Your Products.” SmashingMagazine.15 Sep 2011.Lynch, Liz. “The Rise of Curated Shopping.”The Relevant Marketer. e-Dialog, 18 Aug2011.“May 2012 Trend Briefing: Retail Revolution.”Trendwatching.com. n.d.08 Sep 2012.and leveraged strategies and ideas based onthese insights.Shopping is about discoveryAn objective of shopping is to “wow” oneself.Therefore every shopping experience hasa lot to do with discovering. A lot of peoplewalk into curio and handicraft stores withoutthe express purpose of buying anything inparticular. They go in, browse through themerchandise, and if something catches theireye, they buy it.OpenSky is an e-store that provides deals onproducts hand-picked by experts in fashion,health, food, and design. They promise todeliver “What you were looking for, beforeyou started looking.” Their Pinterest-likeinterface features product shots with briefdescriptive titles without brand names – justlike one would come across in a curio shop.Discovery begins fundamentally at figuring outproducts and services. It elevates to levels ofbuilding associations with the brand. Loyaltycards, offers, discounts are some ways todiscover more about a brand and also aboutpeople’s behaviours. The elevation then isalso about discovering loyalties, shoppingpatterns, and enthusiasm towards specificbrands not from the perspective alone of aseller but consumers themselves.Products have a story to tellMany products have a story in their creation,while some others gain significance post-sale.In both cases, it is the story that the customercan tell when talking about the product. Forinstance, a hand-crafted artifact may haveoriginated from a particular tribe in NewGuinea and the story of its origins may be ofinterest. Or the proceeds from the sales ofa particular product are donated to a cause.People are becoming increasingly sociallyaware, and so it is important to them that whatthey buy in some way contributes to a cause.Sevenly.org is a clothing store that dubsitself as an Organic Funding Movement and“the world’s most effective cause activationplatform leading a generation towardintentional generosity”. Each week theychoose a charity or cause to donate to, anassociated NGO, and set a target amountthey want to donate. A part of the proceedsfrom each sale they make that week arethen set aside for donation. A counter onthe website tells users how far they are fromreaching the target amount.Shoppers are choosy about whothey accept advice fromPeople often turn to their most trusted friendswhen seeking advice on making purchases.They choose who to ask for advice based ontheir knowledge of the friend’s interests, tastes,and choices in other purchases. Decision-making assistance has been a huge pointof focus for e-commerce sites with tools andapps to recommend products. However, theseare based on past purchases, which is bigdrawback when it comes to drawing first-timecustomers. Brand owners are hiring curatorsfor various categories in an attempt to solvethis problem. Curators analyze the vast amountof data- professional, personal details, likes,hobbies and other interests of consumers.AhaLife is a shopping portal that promotesits curators more than the products theysell. Each curator has a dedicated pagecomplete with bios that establish expertisein their respective areas. Users can getproduct details, and also the curator’s viewsand reasons for a product chosen, and whatmakes it stand out. Taking it one step ahead,they are now organizing live meet-ups inmajor cities where consumers can personallymeet curators and designers.Credit: Rob EllisCredit: Susan NYCReading about product utility isnot sufficientIf a consumer is investing in technology withthe intention of upgrading from an existingdevice, product utility is not one’s focus.In such a case product specifications aresufficient to make a decision. Conversely inthe category of beauty products no matterhow much one reads about those products,sees them or is persuaded by the womenin branded uniforms, it is not the same asexperiencing those products.Shopping is about taking abreakGoing shopping is a way to relieve stress,the same way that coffee breaks are used.It helps one ease up for a while. Peopleoften drop in nearby stores during a breakto browse, discover brands, and make fewimpulse purchases. The intention is notbuying out of need, but to do an activity thatwould brighten up one’s busy day.To make the experience worthwhile,commerce sites make shopping a “break-like” activity through videos of productdemonstrations and sales pitches. This isbased on the premise that while taking abreak people watch videos, surf the net, orcheck updates on social networking sites.Joyus, a commerce portal that specializes inbeauty products for women, has implementedan entire video-culture. The website is video-led with product demonstrations and make-uphow-to’s. Customers who visit the site whiletaking a coffee break at work can watch videoson new products, brands, and usage tips.
  19. 19. 36 37Social Technology Quarterly 06KulizaObsolenceThe traditional purchase funnel that droveadvertising and marketing strategies, tactics,and budgets is obsolete. No longer cancompanies rely on targeting as many peopleas possible, knowing that a percentage ofthem will filter down the funnel and ultimatelypurchase the product. What has changed isthat the consumer - and fans in particular - isnow a larger influencer on purchase decisionsthan advertisers. It is more important forbrands to focus on the consumer generated‘megaphone’ than solely on the purchasefunnel, and evolve ways for their customersand fans to advocate products and services.TheConsumerGeneratedFunnelWord of Mouth MarketingForecast 2003 – 20132003: $313m2004: $487m2005: $722m2006: $981m2007: $1351m2008: $1543m2009: $1701m2010: $1918m2011: $2204m2012: $2572m2013: $3043mSentiment expressed byword-of-mouth marketing:66% of brand-related conversationsare mostly positive8% of brand-related conversationsare mostly negativeThe driving forces ofpurchase decisions:54% word-of-mouth47% information on a website42% email sent by a friend31% online reviewsCommerceby Diarmaid ByrneIllustration Credit: Amit MirchandaniReferencesConroy, Pat, and Anupam Narula. “A newbreed of brand advocates: Social networkingredefines consumer engagement.” DeloitteDevelopment LLC,n.d.Web.15 Oct 2012.Jackie, Huba.“14 new statistics about word ofmouth marketing.” Church of Customer. N.p.,17 2011.“Word-of-Mouth Spending to Reach $3Billion by 2013.”Marketing Charts.PQ Media,07 2009.“Consumers Believe in Positive Word-of-Mouth.” eMarketer 02 12 2010.Credibility of advocates:59% of Americans believe offlineWOM to be highly credible49% of Americans believe onlineWOM to be highly credibleCompared to negative WOM,positive WOM is more than twice aslikely to get people to seek furtherinformation.Less than 50% of respondentsdeem negative WOM as credibleMain activities of brandadvocates:1. Recommending verbally2. Payingmore for this thanother brands3. Purchasing favorite brandmultiple times when on sale4. Sharing the product /coupons with others5. Searching for coupons instore circulars6. Searching for special offercoupons online
  20. 20. 38 39EthicsandSocialCommerceThe rise of commerce has always been tightly aligned with certainmutually beneficial, economic principles for the buyer as well as theseller: whether it is the barter system where two parties exchangedgoods and services with equal perceptible value or whether it is themoney economy, where paper was assigned legal tender status. Ineach epoch, commerce has flourished only when there has been theapproval of two or more parties based on a code of ethics that hasgoverned the transaction. Today, commerce is moving in the directionof social commerce, an exciting phenomenon to watch out for.Social commerce is the latest buzz in consumer industries. StrategyConsultants, Booz & Co., estimates the global market value of socialcommerce to be about $9 billion in 2013, growing to $30 billion by2015. Such figures are high enough to lure anyone who has somethingto sell, want to jump into the bandwagon. The mature ecosystem ofsocial networks provided by Facebook, Pinterest, and Twitter alongwith the equally potent e-commerce platforms of Amazon, EBay, andPayPal, make it possible to unleash the potential of social commerceto an unprecedented degree.Social commerce after all makes total sense. Everyone appreciatesthe inputs of friends and family in major purchase decisions. Frombuying a shirt to booking an apartment, people in one’s network havea key role to play in the decision making process. This so-far-known-but-invisible hand of influence is what social commerce seeks tomake visible, tap in on an ongoing basis and of course, monetize.CommunitiesSocial actions are a core part of shoppingonline and the resulting social datais eagerly collected and leveraged bycompanies. Social commerce, thus,needs to be cognizant of the ethicalissues in order to continue to attractcustomers in the future.by Saswati Saha MitraIllustration Credit: Anindya Kundu
  21. 21. 40 41Social Technology Quarterly 06Kulizadiversity is not Pinterest’s forte or even in its interest. When $80 is theaverage amount for purchases initiated by the site, Pinterest is clearlynot for all. It has its own brand image to live up to. Brands participatingin Pinterest know this. Companies are rapidly developing innovativeengagement strategies, integrating the Pin It button across all webspaces they can exist on, from networking sites to search engines.Brands offer new visual stimuli everyday and provide a 2% reward ofthe selling price to the purchase enabler in a service similar to Fancy.This is a very high degree of personalized and networked pressureworking on you to make you buy.An essential part of any commercial relation is honesty. Both partieshave to be honest to the product as well as the transaction for it to bea success. In most e-commerce networks seller reputation and peerreview are instrumental in helping new buyers reach their decisions;be it the small, local players such as Zalando, MouthShut or giantssuch as Amazon and EBay.Detailed reviews are muchappreciated. Skepticism andsuspicion are bound to surfacetowards extreme reactions.Some social commercediscussion forums regularlyreveal the unreliability of suchratings and reviews. Sellerson Amazon are known to offerbuyers discounts to removenegative comments, therebykeeping their overall ratings high.This may be improved customerrelationship management butit can also be interpreted asbuying the buyer’s silence. Tobring in transparency socialcommerce platforms today havea lot to achieve. It is essentialconsumers are provided platforms to express their thoughts withoutbrands attempting backend tweaking or influencing. Also, there is aneed for curation of quality reviews, prohibition of fake profiles fromsellers or their competitors from skewing the nature of feedback.The social network culture of grabbing user data is one of the biggestchallenges to the growth of social commerce. The motive is to offerbetter customer experiences but at the cost of sharing personal data.Every Facebook app that one uses, asks for unanimous access topersonal information. The Apple App store requires one to releaseone’s credit card data. New e-commerce sites request log-ins viaFacebook or Twitter giving them access to one’s networks, contactsand other relevant social data.The cautious say there is no apparent need for all this data but peopleThe rise of commerce has always been tightly aligned with certainmutually beneficial, economic principles for the buyer as well as theseller: whether it is the barter system in which two parties exchangedgoods and services with equal perceptible value or whether it is themoney economy, that assigns legal tender status to paper. In eachepoch, commerce has flourished only when there has been theapproval of two or more parties based on a code of ethics that hasgoverned the transaction. Today, commerce is moving in the directionof social commerce, an exciting phenomenon to watch out for.Social commerce is the latest buzz in consumer industries. StrategyConsultants, Booz & Co., estimates the global market value ofsocial commerce to be about $9 billion in 2013, growing to $30billion by 2015. Such figures are high enough to lure anyone whohas something to sell, want to jump into the bandwagon. The matureecosystem of social networks provided by Facebook, Pinterest, andTwitter along with the equallypotent e-commerce platformsof Amazon, EBay, and PayPal,make it possible to unleash thepotential of social commerce toan unprecedented degree.Social commerce after allmakes total sense. Everyoneappreciates the inputs of friendsand family in major purchasedecisions. From buying a shirt tobooking an apartment, peoplein one’s network have a key roleto play in the decision makingprocess. This so-far-known-but-invisible hand of influenceis what social commerce seeksto make visible, tap in on anongoing basis and of course,monetize.Social commerce is new. It only seems right to help consumersunderstand the rules of the game before they become a core partof it. Based on what is on offer, one has to negotiate to arrive at theright juncture which will enable this new format to succeed. So how isbusiness being done socially?Consumers navigate through a burgeoning amount of influencingdata. Peer influence, creating groups for mutual ‘benefit’ and unlimitedrecommendations and advices form the nucleus of social commerce.People leave on unlimited number of platforms an indelible track ofinvaluable personal and financial data.Each of these platforms has a unique appeal. Visual analysis ofPinterest shows how the perfect world is soft, cute, homely andtailored. Members have the ability to create their own boards but realPeople leave onunlimited numberof platforms anindelible track ofinvaluable personaland financial data.Social Technology Quarterly 06
  22. 22. 42 43Social Technology Quarterly 06KulizaLeft: GeorgeWashington on the $1 billCredit: Peasaphave been convinced that who they are socially, is who they are reallyand knowing that will help serve them better.Assuming that social networkers and shoppers are generous enoughto gift all their data to the cause of consumer analysis, the risk of thedata falling into wrong hands is a primary concern.A recent article by Mat Honan on Wired reveals how criticallyconnected all our internet presence is and how easy it is for those withwrong intentions to take over someone’s complete online and offlineidentity. A hijacked Facebook account is one thing but a hijacked bankaccount is life threatening. In the future, the two will be interconnected.So is social commerce unethical? Visible examples from currenthigh traffic platforms are enough to raise warning signals among thediscerning. The segment is nascent; therefore it is easier to innovateon its processes to emerge as transparent, consumer friendly andethical in its commitment to consumers in the longer term. Some keyissues that need to be redressed include managing the consumptioncycle, establishing transparency in peer recommendation, andallowing consumers to take charge of their data.In 2012, Target came under serious criticism for its acute consumeranalytics which could predict pregnancy even before the informationwas made public by the person concerned. This should tell consumersthat industry analytics today are sophisticated enough to predict alot about users. Instead of using the data to single-mindedly drivepurchase behaviour, brands that will use consumer data responsiblyto moderate the consumption cycle and only push for purchase atnecessary intervals, will gain significant consumer-trust. Instead ofthe Pinterest model of “everything is so beautiful”, a balanced modelof need and purchasing power, adjusted recommendations will helpbring out the more democratic and humane side of social commerce.Peer recommendation in the age of Facebook has been quitevoluminous. One likes Zara, so one recommends friends to like Zara.One wants to network on Glassdoor, so invites others too. Suchexpansive peer recommendation must change if social commerce isto be meaningful and succeed in the long run. Using smart analyticsand filters, social networks will now need to enable their users torecommend in a more intelligent fashion. After all, we do knowwhat our friends really like. So, instead of disturbing every singleone of them with everything and nothing, it is the users themselves,if adequately enabled, who can help brands become even morefocused in reaching their target consumer base.Users are quite surprised by the long-tail effect of their data on theinternet. Not many are aware that Facebook has the permission toshare data even after profiles have been deleted. One of the crucialfactors that most social companies need to be held responsible for istheir terms and conditions. The miniscule sized writing and unendingpages of conditions are reasons enough for even the most carefulof users to decide to skip and agree to anything in their rush toexperience the service. Such conditions are critical when there is acommercial angle associated with it. Brands that will cut through thechaff and seek permissions to use and share specific data from theirconsumers, in simple and comprehensible terms, will not only enablethe consumer to be in better charge of their data but will themselvesemerge as highly transparent business practices. This is an enviablepositioning that most companies ought to strive for.Jimmy Wales, the founder of Wikipedia once said, “Commerce is fine.Advertising is not evil. But it doesn’t belong here. Not in Wikipedia.”On similar lines, social commerce is fine. Advertising is also welcomein social commerce but unethical behaviour does not belong here.Ethics are a crucial factor in shaping brand loyalty. The terms andconditions set with consumers today will shape the future of socialcommerce. Martin Lindstorm in Buyology, analyzed mirror neuronsand cautioned consumers that the next generation of marketingstrategies will vie not for consumers’ sight but directly for their brainand via their most trusted peers. At a time when both the radical andthe emotional side of consumers are targeted, consumers have theright to demand utmost ethical behaviour from their favourite brands.ReferencesDuhigg, Charles.“How Companies LearnYour Secrets.”The NewYorkTimes Magazine 16 02 2012.Honan, Mat.“How Apple and Amazon Security Flaws Led to My EpicHacking.”.Wired,06 08 2012.Lindstorm,Martin.Buyology:Truth and Lies AboutWhyWe Buy.CrownBusiness,2008.“Turning “Like” to “Buy” ”: Social Media Emerges as a CommerceChannel.”.Booz & Co.,17 04 2011.“Social commerce statistics.”.BazaarVoice,n.d.Web.
  23. 23. 45Social Technology Quarterly 06Kuliza44Do you remember the heavy metal bandAnthrax? The lead guitarist Dan Spitzleft in 1995 because he was “severelydisinterested in playing the guitar”. He isnow a watchmaker, and claims that it is anunending skill to learn. Antonio Banderas, SirCliff Richard, and Sting all make their ownwine. Even US President Obama makes hisown beer, the Whitehouse Brew. Well, heinstructs and pays for it at the least.There are plenty of regular people who growfruits and vegetables on their own, raisechickens, and keep their own bees. Othersare buying them from farmers’ marketsinstead of supermarkets. Some have evenmade it their business: The Mast Brotherscraft delicate chocolate by hand and Makersand Brothers sell beautifully designed objectsfor everyday use.Even education is becoming DIY. Onlinewebsites such as Coursera, Duo-Lingo,Khan Academy, and Audacity offer freecourses. ‘Classes’ are online videos ormultiple-choice questions. Discussions,tests, and assessments ensue. Certificatesare sometimes awarded; other learninghappens for the purpose of learning itself.Mike Doherty, in his article, ‘The Story Behindthe Stuff: Consumers’ Growing Interest in‘Real’ Products’, says “There is a powerfulurge to get in touch with what they believeis a more ‘real’ world, and it’s leading usto a place where signs of realness take ongreater value”. He thinks that this movementis bigger and more lasting than the usualtrend and counter-trend shifts that wesee. He also mentions Melanie Howard’sFuture Foundation reports that indicatethat many consumers are also seeking the“simplification of complexity which is aboutthe urge people feel to get in touch with whatthey believe to be a more real world.”Doherty gives the example of IcebreakerMerino Garments that come with a ‘baacode’CommunitiesThe MakerMovementThe DIY movement has come to encompass broaderskill sets, defining a whole new philosophy andappreciation of self-sustaining forms of living.by Payal Shahto allow customers to trace the merinowool in their garment back to its source inNew Zealand. Customers can see how thesheep live, read about their growers, andfollow production through to the finishedgarment. Similarly, wooden cutting boardsfrom Banbury are proving very popular inIreland. Each cutting board has a numberthat customers can enter into the website toget a full history of the tree that the cuttingboard is made from, where it grew, what theenvironment was, and how many other cuttingboards were made out of the same tree.We live in a world of the instant. There ismore ready-made, processed food in oursupermarkets than fresh food. Fresh foodtakes work. Factories do that work for us;from coffee to pre-cooked vegetables,almost anything can be bought ready-to-consume. In the 1960s, everything startedbecoming instant. Women were slowlystarting to enter workplaces and this leftthem with less time to spend on planning anddoing household chores and cooking. Timebecame scarce. This meant that the easierand less time consuming something was,the better. Thus began the advent of instantfood. But in a world of manufactured clonesand standardisation, quirky, handmade andexclusive is good. Slowly, instead of justaccepting ready things, we take the time tounderstand where things come from and howthey become what they are.The DIY movement is an adverse reactionto the instant movement, a sort of a reverseconsumerism. People have become tired ofbuying the same old mass produced goodsmanufactured by corporates giants. Themovement started small in the early 1980sin England, influenced by the DIY philosophyof the punk movement. Its popularity rose inresponse to economic downturns, such asduring the early 1990s. The volatile economyof the subprime crisis has accelerated themovement by urging, if not forcing, peopleinto being more frugal and self-sustaining.It also acts as a rejection of the mass-consumption of the boom years in the 2000s.People have become more interested in howto do things themselves, understand whereTop: Mast Brothers ChocolateAbove: Merino Garments
  24. 24. 47Social Technology Quarterly 0646Kulizafood and materials come from, their impact onthe planet, and produce products to a higherquality than large conglomerates do, even ifit is at a smaller scale. They end up beingbetter designed, unique, and more personal.People are unmistakably innovating andevolving personally with the thought: “if I doit, I will do it better”. Is it a small attempt tocontrol our lives and the exact way we wantthem, and not controlled by consumerism.People take pride in understanding howproducts work, crafting them from scratch,and knowing that their development isunder their control, even though thereis so much else in life that is out of theircontrol. This is a shift to a more holisticlifestyle that provides some meaning.Doherty opines that gardening and knitting,as holistic activities, have been on the risefor the last ten years. People are seekingto create deeper and more meaningfulexperiences. This is why both online andoffline communities like Brooklyn Brainery,Kick Table (which has unfortunatelyclosed down) and Maker Faires work sowell. The image is almost that of reverseavant-gardism, yet is still avant-garde. Itis a dynamic culture that is going back tobasics, minimalism, and self-sufficiency.“Right now, we all crave authenticity” saysKurt Andersen in his article ‘You Say youwant a Devolution?’ in Vanity Fair. He talksabout how few things have changed in thelast 20 years - clothes, music, T.V. shows,architecture, hair styles. Everything has notevolved as it did decade after decade beforethe 1980s. He believes this is happeningas an “unconscious collective reaction toall the profound nonstop newness we’reexperiencing on the tech and geopoliticaland economic fronts.” As the world movestechnologically forward at lightening speedsand deals with changes of all kinds, we clingas hard as we can to familiar things so wehave control over something.ReferencesAndersen, Kurt. “You Say You Want aDevolution?.”Vanity Fair.Jan 2012.Doherty, Mike. “The Story Behind The Stuff:Consumers’ Growing Interest In “Real”Products.” Fast Company.18 Oct2012.Farrier, John.“The Lead Guitarist for AnthraxIs Now a MasterWatchmaker.” Neatorama. 07Sep 2012.Kass, Sam. “Ale to the Chief: White HouseBeer Recipe.” The White House Blog. TheWhite House,01 Sep 2012.Wright, John. “Barack Obama’s beer: WhiteHouse to brew house.”Word of Mouth Blog.The Guardian,24 Sep 2012.“Cheers! Celebs Who Make Their OwnWine!.” Posh24. N.p., 09 2011. Web. 20 Oct2012.Right:‘I think therefore I am’by Barbera Kruger
  25. 25. 48 49Social Technology Quarterly 06KulizaA look at collaborative consumption, a phenomenon that is challenging currentmethods of consumption and is defining new ways of living.by Kaushal SardaCollaborative ConsumptionSocial networks, location technologies, and rise in mobilecommunication are driving a reinvention of activities like sharing,bartering, lending, trading, renting, gifting, and swapping. Thesechanges are driving consumption towards peer-peer exchangeamongst people as opposed to ownership. New examples of thisbehaviour are popping up every day across the world in variouscontexts like unused spaces, goods, skills, money, energy, andgeneral services.Understanding Collaborative ConsumptionDrivers of Collaborative Consumption• A renewed belief in the power of communities• Success of peer-peer social systems and real-time technologies• Global recession that has challenged the prevalent consumptiondriven lifestyle• Growing concern in relation to unresolved environmental issuesSystems that are powering collaborative consumption• Product service systems: Systems that allow people to pay forthe benefits of access to a product rather than owning it• Collaborative lifestyle: Systems that allow people to mutuallybenefit by sharing personal resources like skill, space, money,and power• Redistribution markets: Market places that help stretch the life ofa product and in turn reduce waistTrends that support collaborative consumption• Rise of distributed structures: 16 of the top 100 bestseller bookswere self-published and made available via Kindle.This marks theshift in power from established, controlled structures to distributedstructures such as market places and funding. Kickstarteris now the largest backer of creative projects on the planet.• Reputation economy: The rise of identity brokers offers trust orreputation scores for people on distributed market places. Thesetrust scores act as the backbone for peer-peer exchangesCommunitiesCommunitiesZipCarSystem: Product Service SystemCategory: TransportAbout: Zipcar is an American membership-based car-sharingcompany. Zipcar members have automated access to Zipcars byusing an access card that works with the car’s technology to unlockthe door. It also offers an iPhone and an Android application that allowmembers to ‘honk’ in order to locate a Zipcar and unlock its doors.Share Some SugarSystem: Product Service SystemCategory: Home, LivingAbout: An online service that helps one find someone in aneighbourhood or a group of friends who is willing to lend or rentsomething one needs.ColoftSystem: Collaborative LifestyleCategory: Co-workingAbout: Coloft is a shared work space in Santa Monica that createsa sense of community and excitement amongst like-minded people.It empowers working professionals such as entrepreneurs, start-ups, freelancers, programmers, and designers by providing spaceand office facilities.AirbnbSystem: Collaborative LifestyleCategory: Travel & LivingAbout: Airbnb is an online service that matches people seekingvacation rentals and other short-term accommodations with thosewho rent-out rooms. Listings include private rooms, apartments,castles, boats, manors, tree houses, teepees, igloos, private islands,and other properties.GazelleSystem: Redistribution MarketsCategory: Electronic RecyclingAbout: Gazelle is a fast-growing website that hascreated a marketplace for people who want analternatives to disposing electronic devices that wereonce expensive possessions.

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