Chapter No.

2
Mobile commerce, social commerce
and IOT
Mobile commerce

Mobile commerce, also known as m-

commerce or mcommerce, is the use of
wireless handheld devices like cellphones and
tablets to conduct commercial transactions
online, including the purchase and sale of
products, online banking, and paying bills.
Application of Mobile commerce
 Mobile Banking: Using a mobile website or application to perform
all your banking functions. It is one step ahead of online banking
and has become commonplace these days. For example, in Nigeria,
the majority of banking transactions happen on mobile phones.
 Mobile Ticketing and Booking: Making bookings and receiving your
tickets on the mobile. The digital ticket or boarding pass is sent
directly to your phone after you make the payment from it. Even in
India now IRTC and other services provide m-ticketing services.
 E-bills: This includes mobile vouchers, mobile coupons to be
redeemed and even loyalty points or cards system.
 Auctions: Online auctions having now been developed to be made
available via mobile phones as well.
 Stock Market Reports and even stock market trading over mobile
applications.
Benefits of E-commerce
1)It provides a very convenient and easy to use the
system to conduct business transactions.
2)Mobile commerce has a very wide reach. A huge part
of the world’s population has a mobile phone in their
pocket. So the sheer size of the market is tremendous.
3)M-commerce also helps businesses target customers
according to their location, service provider, the type of
device they use and various other criteria. This can be a
good marketing tool.
4)The costs of the company also reduced. This is due to
the streamlined processes, now transaction cost, low
carrying cost and low order processing cost as well.
Benefits of E-commerce
1)The existing technology to set up an m-
commerce business is very expensive. It has
great start-up costs and many complications
arise.
2) In developing countries, the networks and
service providers are not reliable. It is not
most suitable for data transfer.
3)Then there is the issue of security. There are
many concerns about the safety of the
customer’s private information. And the
possibility of a data leak is very daunting
Mobile Marketing
Mobile marketing is any advertising activity
that promotes products and services via
mobile devices, such as tablets and
smartphones. Mobile marketing makes use of
features of modern mobile technology,
including location services, to tailor
marketing campaigns based on an
individual's location. Mobile marketing is a
way in which technology can be used to
create personalized promotion of goods or
services to a user who is constantly
connected to a network.
Mobile Marketing
Mobile marketing is a multi-channel online marketing
technique focused at reaching a specific audience on
their smartphones, feature phones, tablets, or any
other related devices through websites, E-mail, SMS
and MMS, social media, or mobile applications.[1]
Mobile marketing can provide customers with time and
location sensitive, personalized information that
promotes goods, services, appointment reminders and
ideas.[2] In a more theoretical manner, academic
Andreas Kaplan defines mobile marketing as "any
marketing activity conducted through a ubiquitous
network to which consumers are constantly connected
using a personal mobile device
SMS marketing

 Marketing through cellphones' SMS (Short Message

Service) became increasingly popular in the early 2000s in
Europe and some parts of Asia when businesses started to
collect mobile phone numbers and send off wanted (or
unwanted) content. On average, SMS messages have a 98%
open rate, and are read within 3 minutes, making it highly
effective at reaching recipients quickly.[4]
 Over the past few years SMS marketing has become a
legitimate advertising channel in some parts of the world.
This is because unlike email over the public internet, the
carriers who police their own networks have set guidelines
and best practices for the mobile media industry (including
mobile advertising.[5]
SMS Marketing
 The IAB (Interactive Advertising Bureau) and the
Mobile Marketing Association (MMA), as well,
have established guidelines and are evangelizing
the use of the mobile channel for marketers.
While this has been fruitful in developed regions
such as North America, Western Europe and some
other countries, mobile SPAM messages (SMS
sent to mobile subscribers without a legitimate
and explicit opt-in by the subscriber) remain an
issue in many other parts of the world, partly due
to the carriers selling their member databases to
third parties.
SMS Marketing
 Mobile marketing approaches through SMS has expanded
rapidly in Europe and Asia as a new channel to reach the
consumer. SMS initially received negative media coverage in
many parts of Europe for being a new form of spam as some
advertisers purchased lists and sent unsolicited content to
consumer's phones; however, as guidelines are put in place by
the mobile operators, SMS has become the most popular
branch of the Mobile Marketing industry with several 100
million advertising SMS sent out every month in Europe alone.
This is thanks in part to SMS messages being hardware
agnostic—they can be delivered to practically any mobile phone
, smartphone or feature phone and accessed without a Wi-Fi or
mobile data connection. This is important to note since there
are over 5 billion unique mobile phone subscribers worldwide
in 2017, which is about 66% of the world population.[6]
SMS Marketing
SMS marketing has both inbound and
outbound marketing strategies. Inbound
marketing focuses on lead generation, and
outbound marketing focuses on sending
messages for sales, promotions, contests,
donations, television program voting,
appointment and event reminders.
In India, however, government's efforts of
creating National Do Not Call Registry have
helped cellphone users to stop SMS
advertisements by sending a simple SMS or
calling 1909
Social Business
social business is defined as a business
that has specific social objectives that serve
its primary purpose. Social enterprises seek
to maximize profits while maximizing benefits
to society and the environment. Their profits
are principally used to fund social programs.
Social Business
 Social business was defined by Nobel Peace Prize laureate
Professor Muhammad Yunus and is described in his books. [1][2]
 In these books, Yunus defined a social business as a business:
 Created and designed to address a social problem
 A non-loss, non-dividend company, i.e.
 It is financially self-sustainable and
 Profits realized by the business are reinvested in the business itself
(or used to start other social businesses), with the aim of
increasing social impact, for example expanding the company’s
reach, improving the products or services or in other ways
subsidizing the social mission.
 Unlike a profit-maximizing business, the prime aim of a social
business is not to maximize profits (although generating profits is
desired). Furthermore, business owners are not receiving any
dividend out of the business profits
Social Business Network
On the other hand, unlike a non-profit, a social
business is not dependent on donations or on
private or public grants to survive and to
operate, because, as any other business, it is self-
sustainable. Furthermore, unlike a non-profit,
where funds are spent only once on the field,
funds in a social business are invested to
increase and improve the business' operations on
the field on an indefinite basis. Per Yunus' quote:
"A charity dollar has only one life; a social
business dollar can be invested over and over
again."
Social Business
Philosophically, social business is based on what Yunus
identifies as the two basic motives of human beings,
selfishness and selflessness. Selfishly, people do seek
profit through business; however, social business is
also based on the latter motive people by performing
philanthropic services, like establishing churches,
mosques, synagogues, art museums, public parks,
health clinics or community centers. For Yunus, the
profits made through a social business's operations are
less important than the beneficial effects it has on
society.[3] Muhammad Yunus has more recently founded
Yunus Social Business (YSB) to study, support, and
invest in young social businesses. [
Social Business Network
Imagine for a minute that everyone you know is
on Facebook (this is what Facebook imagines).
Now imagine a concentric map of all the
underlying social network relationships with your
company’s employees at the center and your
company’s customers, vendors and investors on
the next circle out, then your company’s
prospects, partners, competitors, as well as your
industry’s influencers, press, associations and so
forth to create the complete social network of
your industry’s ecosystem. That is your company’s
social business network
Social Business Network
A company's social business network comprises all the
underlying social network relationships, beginning with
a company’s employees at the center and extending out
to include a company’s customers, vendors and
investors on the next circle out, then a company’s
prospects, partners, competitors, as well as your
industry’s influencers, press, associations and so forth
to create the complete social network the industry’s
ecosystem.
Unfortunately, social networks like Facebook were not
originally designed as two-way communication channels
for business; they were designed as two-way
communication channels for people.
Social Business Network
It is not surprising that Facebook, Twitter
and LinkedIn have encountered significant
challenges as they attempt to monetize
through advertising; advertising is foreign
and intrusive to the underlying social network
relationships. In fact, conspicuous advertising
is more intrusive to a social conversation than
it is to say a TV show, because a conversation
is personal. People don’t like to be
interrupted by an ad when talking to their
friends.
Social Enterprise
A social enterprise or social business is
defined as a business that has specific social
objectives that serve its primary purpose.
Social enterprises seek to maximize profits
while maximizing benefits to society and the
environment. Their profits are principally
used to fund social programs.
Social Media marketing
Social Media Marketing focuses on the use of online
social networks or social relations among people who share
business interests and/or activities. Enterprise social
networking is often a facility of enterprise social software
(regarded as a primary component of Enterprise 2.0),
which is essentially social software used in "enterprise"
(business/commercial) contexts.[1] It encompasses
modifications to corporate intranets (referred to as social
intranets) and other classic software platforms used by
large companies to organize their communication,
collaboration and other aspects of their intranets.
Enterprise social networking is also generally thought to
include the use of a standard external social networking
service to generate visibility for an enterprise.
Benefits of social commerce
 1. Consistent Audience Growth
 Every day, thousands of new users join social media sites around the
world. Millions are already active on it. According to Statistia, Facebook
has over a billion active users each month and many new users join
every hour. One of the most important considerations for any business is
how to reach and sell to its target customer audience. For companies
that use social commerce, their followings are continuously growing and
accessible.
 2. Higher Search Engine Ranking
 Engagement on social media can lead to more than just direct
transactions. It has been proven that social media commerce actually
increases traffic to your website which will eventually influence your
ranking on search engine results (though nobody can agree on the exact
weight of this search engine ranking factor.) Sharing links to content on
your website through social media is an excellent way to drive traffic
from social media users. It also allows your audience to engage with a
comment, like, or share to reach an even larger audience.
Benefits of social commerce
 3. More Authentic Engagement and Traffic
 As already stated, actively working to grow your social media
audience is a great first step in eventually making conversions. One
of the most significant benefits of social commerce is the
engagement and reach that businesses can get whenever they share
content. By showing up in a follower’s updates feed on a regular
basis, you’re participating in a powerful branding opportunity. People
who have regular contact with a company are more likely to
recommend that company.
 Social commerce encourages people to connect with a business
through two-way communication. This allows customers to not only
engage with your business, but it also gives them the opportunity to
use social media as an efficient customer service channel where it’s
possible to solve problems. Social media word-of-mouth
(sharing/reposting) helps with audience building, as well as increased
engagement and website traffic.
Benefits of social commerce
4. Customer Loyalty and Retention
In using social commerce for your business, you
are aiming to sell and promote your
products/services, but you are also aiming to build
good relationships with people. By using this
opportunity to engage with prospects, a company
can build and maintain relationships that
deepen trust and loyalty. This in turn creates
customers that are happy/satisfied with your
service, who will likely remain clients who make
repeat purchases. Make sure to treat first time
buyers just as well as you’d treat repeat
purchasers – they’re both incredibly important!
Benefits of social commerce
 5. Business Metrics from Social
 With any part of your business marketing, you should be able to analyze
your efforts, and see if the results provided a positive ROI. Starting a
campaign that you cannot measure or evaluate is a waste of any tangible
effort. The objective you decide upon should be kept in line with company
key performance indicators (KPIs).
 Social media commerce makes it easy to measure and evaluate
performances. Facebook pages, Instagram business accounts and tweets
on Twitter have built-in metrics for impressions, engagements and reach.
In addition, most social media posts allow for measurement of traffic to
your website through website click counts. Other basic measurements to
determine a positive ROI might include your total numbers of
fans/followers, likes, and the overall sentiment of interactions.
 Social media commerce will only be beneficial for your business if it’s
done right. Formulate a solid plan and don’t be afraid to take the risk and
invest a reasonable amount of time, effort, and money – social commerce
companies agree that it’s more than worth it
Limitation of social commerce
1)Security: One of the main limitations of
eCommerce is security. In most cases, people
are hesitant to provide their personal and
financial details in spite of advanced data
encryption security systems in place.
Moreover, there are some websites that do
not have the capability and features installed
to authenticate transactions.
Limitation of social commerce
2. Lack of Privacy: To some extent, the privacy of a
customer is compromised in eCommerce. You need to
provide your personal details, such as an address,
telephone number, and so on to the seller. There are still
lots of sites that do not have the advanced technology to
protect sensitive information. Moreover, there are also sites
that illegally collect consumer statistics without
permission. This is one reason why people get skeptical
while using eCommerce.
3. Tax Issue: In the case of different geographical
locations, sales tax becomes an issue. Many a time sellers
have faced problems in the computation of sales tax.
Moreover, physical stores have a risk of losing business if
online transactions are exempted from taxation.
Limitation of social commerce
4. Fear: In spite of the popularity, there still resides
an element of doubt in the mind of people when it
comes to online shopping. This is because the
customer cannot physically examine the product and
is not sure about the features and attributes. This is
why a lot of people prefer shopping from physical
stores.
5. Product Suitability: As already mentioned, it is
not possible for people to physically examine the
product in eCommerce. In many cases, the original
product may not match the picture or specifications in
the eCommerce site. This absence of ‘touch and feel’
creates a discouraging effect.
Benefits to Customers, Retailers,
Employees, players in the ecosystem
 Lack of Privacy: To some extent, the privacy of a
customer is compromised in eCommerce. You need to
provide your personal details, such as an address,
telephone number, and so on to the seller. There are still
lots of sites that do not have the advanced technology to
protect sensitive information. Moreover, there are also
sites that illegally collect consumer statistics without
permission. This is one reason why people get skeptical
while using eCommerce.
3. Tax Issue: In the case of different geographical
locations, sales tax becomes an issue. Many a time sellers
have faced problems in the computation of sales tax.
Moreover, physical stores have a risk of losing business if
online transactions are exempted from taxation.
Benefits to Customers, Retailers,
Employees, players in the ecosystem
4. Fear: In spite of the popularity, there still resides
an element of doubt in the mind of people when it
comes to online shopping. This is because the
customer cannot physically examine the product and
is not sure about the features and attributes. This is
why a lot of people prefer shopping from physical
stores.
5. Product Suitability: As already mentioned, it is
not possible for people to physically examine the
product in eCommerce. In many cases, the original
product may not match the picture or specifications in
the eCommerce site. This absence of ‘touch and feel’
creates a discouraging effect.
Social Collabration
Social collaboration is the process through
which multiple people, groups, or
departments can interact with each other to
achieve common goals. At the most basic
level, social collaboration happens when
people work together as a team on a
particular project.
Consumer to consumer e commerce
C2C or Consumer-to-consumer
eCommerce is one consumer selling goods
or services to another consumer online,
similar to how eBay, Etsy, or Craigslist works.
It is a type of trade relation where both the
sellers and buyers are consumers instead of
businesses.
Person to person model
The reasonable person model (RPM) is a
psychological framework which argues that people
are at their best when their informational needs are
met. Positing that unreasonableness is not a human
trait, but rather the result of environment (context
and circumstances), the RPM attempts to define the
environments/actions that foster reasonableness,
defining three key areas that assist with this: model
building, being effective, and meaningful action.
The RPM was developed by environmental
psychologists Stephen and Rachel Kaplan and
integrates principles from environmental, cognitive,
and evolutionary psychology.
Person to person model
 The RPM is a psychological framework that posits human
functioning is improved when the following three domains of
informational needs are met:[1]
 Model building – RPM posits that a central informational
need is to build mental models (also known as cognitive maps)
in order to function effectively in the world. It suggests that
mental models help people recognize objects and
circumstances, predict and evaluate possible future outcomes
and decide on actions.
 Being effective – This focuses on helping people utilize
knowledge effectively by developing the necessary skills, also
maintaining a clear head in order to function effectively.
 Meaningful action – RPM suggests that people wish to use
their skills to make a difference, meaning they wish to be
listened to and be given opportunities to participate.
Internet of Things
The Internet of things (IoT) describes the
network of physical objects—“things”—that
are embedded with sensors, software, and
other technologies for the purpose of
connecting and exchanging data with other
devices and systems over the Internet.
Smart Home and Appliance
A smart home allows homeowners to
control appliances, thermostats, lights, and
other devices remotely using a smartphone or
tablet through an internet connection. Smart
homes can be set up through wireless or
hardwired systems. ... Security risks and bugs
continue to plague makers and users
of smart home technology
Smart cities
 a smart city is a city that uses technology
to provide services and solve city problems.
A smart city does things like improve
transportation and accessibility, improve
social services, promote sustainability, and
give its citizens a voice.
Smart cars
Smart car may refer to:
Smart (marque), the automobile brand
Smartcar (company), the API developer platform
company
Autonomous car, an automobile capable of
driving itself
Connected car, an automobile that coordinates
its navigation with others'
Vehicular automation, using artificial
intelligence to enhance or automate control of a
vehicle
Wearable Computing and smart
Gadgets
A wearable computer is any small
technological device capable of storing and
processing data that can be worn on the
body. Wearable computers are designed for
accessibility and convenience, as well as
improvements to workplaces by
making information quickly and readily
available to the wearer.