Answered: 1.) Explain how HomePro leveraged the…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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1.) Explain how HomePro leveraged the eight unique features and characteristics of e-commerce technology business and derived benefits.

2.) Describe the advantages and disadvantages of using social media for business promotion. Give appropriate and relevant examples from the case study given above.

3.) Give an example of a business decision from this case study that was facilitated by using social media to interact with customers resulting in product improvement.

Transcribed Image Text:READ THE CASE SITUATION GIVEN BELOW CAREFULLY AND ANSWER THE QUESTIONS FOLLOWING IT: Businesses of all sizes are finding Facebook, Twitter, and other social media to be powerful tools for engaging customers, amplifying product messages, discovering trends and influencers, building brand awareness, and taking action on customer requests and recommendations. Half of all Twitter users recommend products in their tweets. About 1.6 billion people use Facebook, and more than 30 million businesses have active brand pages, enabling users to interact with the brand through blogs, comment pages, contests, and offerings on the brand page. The "like" button gives users a chance to share with their social network their feelings about content and other objects they are viewing and websites they are visiting. With like buttons on millions of websites, Facebook can track user behaviour on other sites and then sell this information to marketers. Facebook also sells display ads to firms that show up in the users' home pages and most other pages in the Facebook interface such as photos and apps. Twitter has developed many new offerings to interest advertisers, like "promoted tweets" and "promoted trends." These features give advertisers the ability to have their tweets displayed more prominently when Twitter users search for certain keywords. Many big advertisers are using Twitter's Vine service, which allows users to share short, repeating videos with a mobile- phone app or post them on other platforms such as Facebook. HomePro is a startup home improvement retailer, using Facebook mobile video and Snapchat image messaging to help first-time millennial home buyers learn home improvement skills. HomePro launched a new series of social videos in April 2016, to showcase home cleaning, improvement and do-it-yourself projects. HomePro believes this is a more immediate, interactive, convenient and powerful way to reach younger consumers who are increasingly spending more time on multimedia, visual-driven social media platforms. HomePro's "FlipSide" videos are short, two-sided live-action videos that show simultaneously what can happen if a homeowner doesn't clean the gutters and air filters or prune overgrown shrubs compared with the results of proper home cleaning. These videos take advantage of the flip video application in Facebook's mobile feed that enables users to change the orientation of the video, and the videos link back to HomePro's website. HomePro's "In-a-Snap" Snapchat series tries to inspire young homeowners and renters to undertake simple home improvement projects such as installing shelves to build a study nook. During the HomePro's Snapchat story, users can tap on the screen to put a nail in a wall or chisel off an old tile. HomePro is working on another series of video tutorials on Facebook and

Transcribed Image Text:Instagram called "Home School" that uses drawings from chalk artists to animate maintenance projects. HomePro's social media activities have helped increase brand engagement. Although the company's social campaigns are designed to teach first-time homeowners or young renters about home improvement, the company is also hoping they will encourage consumers to think differently about the brand beyond its products and services. Management believes millennials who are becoming first-time homeowners want to know the deeper meaning of what a company is trying to stand for, not just the products and services it offers. An estimated 90 percent of customers are influenced by online reviews, and nearly half of U.S. social media users actively seek customer service through social media. As a result, marketing is now placing much more emphasis on customer satisfaction and customer service. Social media monitoring helps marketers and business owners understand more about likes, dislikes, and complaints concerning products, additional products or product modifications customers want, and how people are talking about a brand (positive or negative sentiment). General Motors (GM) has 26 full-time social media customer care advisers for North America alone. These advisers are available to assist customers seven days a week, 16 operational hours per day. GM believes that the processes for identifying and resolving quality concerns are very important. GM recognized early on that there was a wealth of information in online vehicle owner forums that should be utilized in product development. GM social media advisers actively monitor vehicle owner forums and other social media platforms to identify potential issues and provide real-time customer feedback to the company's brand quality and engineering leaders. In some cases, GM social media advisers were able to identify issues much earlier than traditional surveying or dealer feedback. For example, GM's social media team identified a faulty climate-control part when a customer posted the issue on a product-owner blog. The complaint received dozens of replies and thousands of views, prompting GM that it needed to investigate further. Once GM specialists determined the root cause of the issue, the company released a technical service bulletin to all dealerships to replace the affected control modules on vehicles already built. GM fixed the original customer's vehicle within 10 days and adjusted production to ensure no additional customers would be affected. Still, the results of a social presence can be unpredictable and not always beneficial, as a number of companies have learned. Social media provided a platform for angry backlash against Starbucks in March 2015 for its "Race Together" campaign. Critics hammered Starbucks on social media for trying to capitalize on racial tensions in the United States. Companies everywhere have rushed to create Facebook pages and Twitter accounts, but many still don't understand how to make effective use of these social media tools. Traditional marketing is all about creating and delivering a message using communication that is primarily one-way. Social media marketing is all about two-way communication and interaction. It enables businesses to receive an immediate response to a message-and to react and change the message, if necessary. Many companies still don't understand that difference.

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