The paper "The Effects of Social Networks on E-Commerce Particularly in On-Line Advertising" is an excellent example of a research proposal on e-commerce. The purpose of this study is to determine the influences of social networks on e-commerce particularly in the online advertising industry, with a special indication of consumer buying behavior and demand patterns. Social networks are significantly transforming e-commerce and assisting it towards new and better directions (Chen and Tan 77). With its help, e-commerce has been able to overcome various problems faced by e-business enterprises. Websites such as Facebook and MySpace attract millions of users every year and persons ranging from elders to teens are signing up to make use of these sites all over the world (DeLone and McLean 45).
All these social networks have a common theme- they combine persons from every part of the world who share similar friends and interests. According to Nielsen, the whole world spends more than 110 billion minutes every day on social network sites. This has led the online advertising industry to maximize their use of social networks in order to boost consumer buying behavior and increase demand for products and services (Huang et al.
1292). Currently, social networks play a significant role in advertising products. In the era of the digital economy, it is no longer adequate to set up an online or physical shop and wait for customers to arrive (Chatterjee 715). Instead, online advertising companies are becoming very proactive through finding methods of engaging consumers, building relationships as well as creating communities through involving social elements in social network sites (Khalifa and Liu 36). Social commerce websites have incorporated features such as customer reviews and ratings, social shopping tools, user referrals, and recommendations as well as online communities (Stratmann).
Such features have created a trusted environment whereby family, friends, and workmates can enthusiastically add information to the referral as well as the sale of products and services via reviews, constructive or unconstructive response, testimonials, and ratings about their present and past experiences (Sambamurthy et al. 239). As a result, the research and buying cycle has been minimized through the establishment of one destination, which is driven by numerous people (Rubel).
Generally, social networks have become a trusted environment whereby prospective customers are able to make the decision to purchase various products or services depending on a network of family and friends, and not persons they do not know or trust. This research will particularly focus on consumer buying behavior and demand patterns, which arise from online advertising over social networks. According to Zetlin and Pfleging, most consumers’ needs are arranged through social networks in consumer-driven online markets such as social networks.