INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIII, Issue X, October 2024
www.ijltemas.in Page 235
Social Commerce: A Cost Reduction Strategic Tool for Sustaining
Corporate Brands Globally. A Systematic Review Approach
Richard Amoasi
1
,Professor Xiaodan Wu
2
1
Hebei University of Technology, Tianjin China
2
Koforidua Technical University, Koforidua Ghana.
DOI : https://doi.org/10.51583//IJLTEMAS.2024.131028
Received: 05 November 2024; Accepted: 11 November 2024; Published: 23 November 2024
Abstract: Social commerce has a strategic role in the sustainability of corporate brands. It has been discovered that little or no
attention has been given to the cost-reduction strategy of social commerce to sustain corporate brands. Social commerce presents a
three-way cost reduction (for manufacturers, members of trade, and consumers) to sustain brand performance globally. Social
commerce works to reduce the cost of commercial advertising and other promotional elements. The study’s objective was to
establish whether social commerce reduces the promotional cost of corporate brands and how that helps to sustain corporate brands.
The study reviewed literature, with most spanning between 2010 and 2023, from the world and in both academia and industry. The
study reveals that social commerce reduces the cost of managing corporate brands through brand trust and relationship building
through social support and communities created on social media for brands. Social commerce has made many customers become
company employees, resolving customer complaints and offering various forms of assistance to prospective and existing customers
without adding cost to the company’s payroll. The study revealed again that customers now pay directly to disseminate brand
messages shifting most of the communications cost to the customer. The cost of employing celebrities for product recommendation
has been reduced due to both online and offline social commerce thus saving cost and increasing corporate brands profitability.
Keywords: Social commerce, cost reduction, brand sustainability, global, communications.
I. Introduction
In 2005, the phrase "social commerce" was first used on Yahoo to refer to the sharing of product details as well as netizens' reviews
and ratings of products
[81]
. Social commerce is a business model that blends online and offline settings, according to
[1]
. Through
social media, it is mediated. A separate subset of e-commerce centered on personalized and active social interactions is known as
social commerce
[2]
. Social commerce, which blends social media with the internet, aims to boost participation in online
communities for product promotion and sales. Nowadays, companies, organizations, and economies are concerned about
sustainability. It is perceived as a methodical strategy for obtaining a competitive edge
[91]
. For economies and enterprises,
sustainability is a novel, wide-ranging, and systemic problem
[116]
. The idea of guiding an organization's business models toward
performance is known as organizational sustainability. The favorable position of a business's goods and services against that of
rivals is a key component of a sustainable competitive advantage. Increasing economic profitability in comparison to rivals gives
businesses a competitive edge in the market. Long-standing research has shown that word-of-mouth (WOM) gained through social
commerce is a strategic enabler to affect consumer loyalty
[6-8]
. E-WOM refers to the process by which customers communicate with
one another online about a brand
[5]
. Social commerce increases an organization’s profit through savings made through promotional
activities. Social commerce through its interactive nature between manufacturers and consumers co-creates value to meet the exact
requirements of customers thus enhancing the diffusion and buying patterns of the firm’s goods and services putting the firm over
competitors. The objective of this study was to identify whether social commerce can reduce communication or the promotional
cost of a firm to enhance its sustainability in terms of competition in the global market. However, businesses must learn about their
markets, clients, emerging technologies, and rivals to develop sustainable business models. This information is essential to attaining
brand/product sustainability in a cutthroat international market
[113]
. Zong
[92]
defines social commerce as a business strategy that
INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
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ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIII, Issue X, October 2024
www.ijltemas.in Page 236
advertises and sells goods and services through social media interest graphs (interaction based on information flow) and social
graphs (interaction based on interpersonal relationships). More brand communicators are produced by social commerce without
requiring the company to hire them. The prices of commercial advertising roles and other business promotions are decreased by
brand referrals, conversations, and recommendations, including social communities and support
[40,42]
. The interaction between the
producer and the consumers enables value to be created coupled with product design that perfectly meets the market requirement
without necessarily paying for research and development. Social commerce can reduce the cost that the managers of corporate
brands would have paid to celebrities to get them to endorse their brands to the market globally
[9]
.
II. Literature Review
Gibreel et al.
[115]
define social e-commerce as "e-commerce enabled by online social relationships and networks." Scholars like
[29,87,117]
claim that social commerce is a new form of e-commerce that allows users to create content through social interaction to
reach different product marketplaces. Yacoba et al.
[112]
define social commerce as the relationship between a product and a
community of consumers who interact among themselves through content. The phrase "social commerce" is frequently used to refer
to new online retail models or marketing tactics that combine peer-to-peer networking and established social networks to increase
sales
[11]
. The capacity of users to review and discuss things is a key component of social commerce, a relatively new type of online
shopping
[13]
. According to
[42]
, social commercial activities help consumers evaluate the pre-purchase stage, it helps them make
decisions about purchases, and make decisions after purchases. By allowing customers to communicate online and save time, an
online platform firm can give them access to a larger market and help them learn more, thanks to the wealth of online information.
Social commerce has become more prevalent in business. Social commerce is the term for online transactions that occur through
collective purchasing on social networking sites. Social commerce makes use of some of the more established e-commerce
techniques to connect consumers with products through social networks. This paradigm integrates the characteristics of technology
people, information, and management
[90]
. Sustainability is more than just a term, it is a new and broader systemic topic for
economies and businesses
[14]
. A company's sustainable competitive advantage is related to whether its products and services are
favorably positioned relative to its competitors. A company can obtain a competitive edge by raising its economic profit compared
to its rivals. This growing economic profit can also be obtained via cost-effective measures that result in efficiency savings.
However, by learning about consumers, markets, emerging technology, and rivals, businesses develop sustainable business models.
In marketplaces with intense global competition, this knowledge is essential to the sustainability of a product or brand
[97]
.
Communication Activities
The development of e-commerce and its relationship with social networks gave rise to social commerce, which creatively
introduced advantages based on interactive consumer communication
[73]
. Social commerce is a recent e-commerce trend that
supports the shopping experience by utilizing improved consumer-to-consumer interactions
[39-41]
. Customers through a shift to the
Web version, use social networks to generate and share information, including their experiences and expertise about products and
services
[44]
. Customers can obtain publicly available information from others and gain insight into their past experiences using
social networks, regarded as social commerce platforms, to aid in their decision-making during the buying process
[17,29,30,42]
. Social
commerce, defined by Lin et al.
[42]
, includes a range of commercial actions that assist customers throughout the evaluation or
pre-buy phase, during the decision-making process, and after the purchase. It is well-known that social commerce involves not only
social network purchases but also social network interactions at every stage of the purchasing process, including recommendation,
appraisal, and previous knowledge
[42,87]
. Long-standing research has shown that word-of-mouth (WOM) is a strategic enabler
affecting consumer loyalty
[18-20]
. E-WOM refers to the process by which customers communicate online about a brand
[21]
. Several
researchers have acknowledged in the literature currently available that e-WOM is positively related to consumer loyalty
[22,107]
.
Previous research has also demonstrated how online forums, communities, and customer feedback have changed social commerce
[24,29,110]
. Recent studies have also confirmed the effect of word-of-mouth on consumers' favorable brand preferences, perceptions,
buying intentions, and loyalty
[27,28,30]
. E-WOM is therefore crucial for businesses to boost sales or run successful promotions. With
the development of the internet, online media has made WOM online communication easier. Social media is used by contemporary
INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIII, Issue X, October 2024
www.ijltemas.in Page 237
businesses to share their CSR goals with clients and other stakeholders. In a nutshell, an organization's SC-CSR should effectively
engage customers with a brand. Social media and other online platforms encourage social interaction and user contributions, and
other aspects of social commerce are all parts of e-commerce that help with online goods buying and selling
[107]
. Social media
affords the avenue for organisations to have continual engagements with customers, creates relationships, and as a result obtains a
life customer value from it.
Peer evaluations are the most reliable source of information for consumer purchases, outperforming the majority of communication
components. In light of this, businesses are making significant investments in social commerce to draw in new clients through
referrals from current ones
[31-33]
. To reap the benefits of consumers' social interaction on those online platforms, companies are
making huge investments in social media applications
[35,89]
. Businesses make this investment because consumers can access
information about other consumers' past experiences that are published on digital platforms, and the information becomes a useful
resource for others when they are making decisions about what to buy. In the view of Han et al.
[32]
, the use of social media enhances
the relationship between companies and their customers which results in customer loyalty and increased sales levels. Consumers
heavily rely on information that comes from other consumers rather than sellers. This therefore influences other consumers’
purchase decisions. Customers use social media, Web browsing, and even email inquiries to view published information or
comments from customers, which makes it easier for others to compare costs and product characteristics
[36,47]
. Social Media Today
reports that 42% of customers worldwide use social media sites daily. Regarding content and advertising, 73% of marketing
executives think social media is a very effective communication tool. Customers' continual use of the platforms is impacted by the
rise in user-to-user and user-platform interaction.
Customers give thorough information about goods and services through reviews and ratings, which helps other prospective buyers.
Even the seller's requirement for commercial information is diminished by this information
[116]
. Informational support in the form
of advice, suggestions, or knowledge that may help address difficulties is known as a recommendation
[38.97,98]
. It becomes
mandatory to share or obtain beneficial purchasing knowledge with others if a user recognizes that members have been helpful and
considerate in providing helpful information. It strengthens bonds of friendship and trust, which may further boost members' desire
to engage in business
[40,96]
. The social connection that these social venues promote makes them significant. Members of online
communities and forums help one another by exchanging knowledge and experiences. This is a potent new way to create electronic
word-of-mouth
[107]
. People are therefore typically prepared to engage with others for mutual assistance in a community that has
strong social support
[40,108]
.
Relationship Building
This focuses on how members of the person's social group have responded to, cared for, and/or assisted them
[12,52,98]
. To meet a
person's psychological needs, social support provides warmth, empathy, and responsiveness
[53,100]
. Even if the support in certain
ways may not offer complete direct aid, it may produce positive feedback and make a person feel better
[61]
. However, the rise in
popularity of social media has made the Internet one of the most crucial platforms for promoting social contact. One of the main
social benefits that Internet users can receive from an online community is social support, as has been demonstrated
[62,99,102]
. Recent
studies indicated that online communities may instill social ideals in their members and that the Internet is a potent tool for fostering
intimate relationships and improving one's well-being
[97,102,106]
. The social connection that these social venues promote makes them
significant. Members of online communities and forums help one another by exchanging knowledge and experiences. This is an
effective new way to create electronic word-of-mouth
[64,91]
. People are therefore typically willing to engage with others for mutual
assistance in a community that has strong social support
[66,108]
. The utilization of connections within a social network to obtain
financial advantages is the goal of social commerce. Higher client loyalty or more transactions (such as the exchange of business
information or the sale of goods or services) are two ways to gauge these commercial advantages
[67-69]
, Although it is difficult to
obtain precise financial information from real-world transactions, the desire to act in a particular manner may be frequently
measured as a proxy for actual behavior since it is a reliable indicator of actual behavior
[70]
. Several well-known theories use
intention as a stand-in for the ultimate user behavior, including the planned behavior theory, the technological acceptance model,
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and the reasoned action theory
[71,72]
. The foundation of relationship marketing is the idea that a long-term relationship with the
customer benefits both the seller and the business. Customer loyalty is therefore frequently used as a pivot of marketing success
[73,194]
. The likelihood that a client would return for another visit or transaction is a common indicator of customer loyalty. By
incorporating this idea into social commerce, it is possible to gauge user loyalty to a social networking site by looking at the
intention of a user to keep using the site (continuous usage)
[74,94,95]
. It follows that "the social commerce intention measures whether
a user is interested in conducting commercial activities on the site, and the continuous intention indicates whether a user is loyal to
a social networking website
[76]
. Relationship quality, also known as relationship strength or intimacy, is a crucial idea in
relationship marketing since it has a significant impact on consumer loyalty. According to earlier research, relationship quality
provides an assessment of how strong a relationship is between a consumer and a service provider
[77]
. In other words, a user's
overall assessment of a service provider is known as relationship quality. Users are more inclined to endorse things online, provide
useful commercial information, or seek business prospects from online pals when they believe they have an excellent relationship
with a social network
[78-80]
. It has been observed that a user's intention to continue using a service provider is influenced over time
by the strength of their relationship with that provider
[103,105,109]
. In this way, businesses cannot ignore the importance of connection
quality in social commerce. In their study, Yin et al.
[88]
found that social interaction is the platform's overall trust value and that trust
is the driving force behind platform transactions. They also found that social relationships play a significant role in addressing the
challenging issue of establishing trust between buyers and sellers in e-commerce. According to Laz aroiu et al.
[38]
, the relationship
between perceived risk and online trust can be considered when determining the purchasing intentions of users of social platforms.
The influence of trust on the purchase intention of users.
Trust according to Gustafsson et al.
[109]
, is "the conviction that the service provider is truthful and kind". To construct the social
commerce acceptance model (SCAM), Hajli
[29]
combined perceived utility and trust. They discovered that the degree of trust is
influenced by several factors, including user comments, community content, and friend recommendations. Users' propensity to
engage in social commerce is influenced by the attributes of suppliers, according to Yahia et al.
[81]
. Of these, the reputation and
price advantage of suppliers had the biggest influence on trust, whereas habits would lessen these effects. The social telepresence of
the network and the social telepresence of the contact with the seller impact users' trust in the seller, which in turn influences users'
buy intention, according to Lu et al.'s study
[118]
on the relationship between social telepresence, trust, and purchase intention.
According to researchers, friend recommendations have a major influence on consumers' online buying behaviors and are linked to
friend trust. According to Guo et al.
[20]
, the success of social commerce is mostly due to the trust and perceived risk of retailing
players. According to Hall et al.
[21]
, social media can be used to include customers' consistent opinions in the decision-making
process. Social influence and trust are important factors that change behavioral intention toward social commerce, according to
Abed
[1]
. The relationship between website interactivity and repurchase intention is further strengthened by utilitarian value and
online trust, according to Jeon et al.
[34]
. Loyalty is linked to perceived risk and trust, according to Ozturk et al.
[59]
. Online purchase
intention is positively correlated with social engagement and trust, according to Xu-Priour et al.
[80]
. According to Pratono
[61]
, trust
in social commerce helps online retailers develop their pricing and selling strategies, which improves their success. According to
Kim and Peterson
[37]
, online trust plays a key role in combining confidence-related results in social commerce. Online product
reviews have a greater impact on consumers' cognitive and emotional trust in closed social network services than in open social
network services, according to Choi and Lee
[11]
, who also highlight that user-generated content has a greater impact on consumers'
cognitive trust than does marketer-generated content
[51-54]
. The emotional trust of customers is influenced by the combination of
social network service kinds and content generator types. In social commerce, loyalty is directly impacted by contentment, trust,
and boundary switching, according to López-Miguens and Vázquez
[43]
. In general, buyers favor the opinions of reputable
organizations and specialists when purchasing highly specialized goods (such as
computers, cameras, etc.)
[55,58]
. Customers are susceptible to the influence of friends, family, and product reviews when it comes to
commodities. Customers have differing levels of faith in them, whether they are friends, specialists, or internet reviews. Similarly, a
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user is more likely to shop online if he has a high level of trust in a social commerce group
[56,69]
. In a thorough and quantitative
meta-analysis, Sullivan & Kim
[76]
discovered that trust on social media platforms had a greater impact on user behavior than risk.
Positive outcomes, such as building trust in e-commerce, have been demonstrated to be supported by customer interactions and
mutual support through access to product reviews and recommendations
[31,57,66]
. Online product reviews therefore affect consumers'
intentions to buy and contribute to a rise in online sales. According to Sharma et al.
[65]
, consumer suggestions and referrals boost
website trust and significantly influence the development of trust in the social commerce environment. In line with earlier research
[4,58,68]
, Hsu
[33]
asserts that brand trust established through social commerce interactions has a big and favorable impact on brand
purchase intention and that consumers are very likely to buy the items of a company they trust. As a result, one of the main factors
that encourages brand lovers to show their strong support for a company is brand trust.
The Conceptual Framework of the Study
Social commerce creates an avenue for cost-sharing in communication between the manufacturers and the stakeholders. Whilst the
manufacturer bears the cost for developing the site and hosting the page, the stakeholders access, interact and spread brand
information with their data and mobile phone credits. To reap the benefits of consumers' social interaction on those online platforms,
organizations are making substantial investments in various social media applications
[59,89]
. Businesses are making this investment
because, thanks to digital platforms, consumers may access information about other consumers' past experiences, which can then be
used as a relevant source of information by others when making decisions about what to buy. Social media use improves the
interaction between businesses and their clients, which leads to client loyalty and higher sales levels, claim Han et al.
[32]
.
Consumers heavily rely on information that comes from other consumers rather than from sellers. As a result, this influences the
decisions made by other customers. Through Web browsing, social media, and even email inquiries, consumers can more readily
compare costs and product characteristics by viewing published information or comments made by other customers Leong et al.
[47]
,
an activity that the company would have paid for through commercial advertisements. Consumers can gain from social commerce in
several ways, including non-financial and financial ones
[14]
. It guarantees the delivery of plentiful goods and services over great
distances and can lower transaction costs. Businesses can deploy this kind of platform at a cheaper initial fixed cost thanks to social
commerce's advantages
[101,120]
. Comparing social networking sites to traditional retail, sellers may quickly and easily update their
product descriptions and pertinent media. Social commerce platforms allow vendors from developing nations to connect with a
large number of potential clients in both their local and foreign markets. This allows them to act more precisely and, frequently, at a
lower cost than they might through traditional channels
[91,99]
. In terms of merchandise, this gives users access to the newest styles
and trends. Customers gather product information before making a purchase decision by talking with their peers about a product's
quality, price, and variety; reading both positive and negative product reviews to compare opposing viewpoints; and observing and
learning from other customers about the intended product
[74]
. In line with other research
[4,68]
, Hsu
[33]
asserts that consumers are
very likely to buy the items of a brand they trust, and that brand trust cultivated through social commerce interactions has a big and
favorable impact on brand purchase intention. This is a potent new eWOM generation tool
[91]
. As a result, individuals are typically
eager to engage with others to exchange assistance in a society that has strong social support
[40,108]
. Social commerce aims to
capitalize on connections inside a social network to achieve financial gains. Increased transactions (sharing of business information
or sales of goods or services) or greater client loyalty are two ways to gauge these commercial gains.
INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
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Fig. 1: The conceptual framework of the study.
Businesses are constantly striving to maintain customer trust and loyalty to ensure business sustainability
[65]
. To enable corporate
brands to effectively compete at the global level, corporate managers must build the capacity to reduce the costs in areas of brand
competence. the study reviewed literature between 2010 to 2000 to ascertain areas where literature on sustainability covers. It was
discovered that no attention has been given to the cost reduction strategy to sustain corporate brands. With the aid of a sizable online
peer network that shares online buying experiences connected to product and service information, social commerce propels
purchases. Social media is the creation, inception, and dissemination of information in online networks by combining various
user-generated materials using several social networking services.
III. Methodology
This research uses content analysis to identify the previously published literature's themes, concepts, and terms. This method helps
identify and measure the relationships between specific concepts. Data for this approach could come from field notes, interviews,
open-ended questions, and any communicative language, including books, newspapers, essays, and historical documents.
Relational and conceptual analysis are the two types of content analysis. While conceptual analysis indicates where and how often
ideas occur in a text, relational analysis improves conceptual analysis by examining the relationships between concepts in a text.
This study used relational analysis to determine how concepts in a text relate to one another. Before condensing the text into patterns
and categories, the type of analysis was determined using relational analysis. Lastly, the relationship between concepts was
examined. The study's methodology was based on the analysis of 119 articles from different search engines, including Science
Direct, Research Gate, Google Scholar, Directory of Open Access Journals, JSTOR, and SSCI-Hub.
IV. Discussions
Table 1: sample publications spanning between 1976 to 2023.
Period of Publication
No. of Publication
% of Publication over the period
Up to 1999
6
5.04
2000 to 2009
12
10.08
2010 to 2019
76
63.87
2020 to 2023
25
21.01
Total
119
100
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Table 1 illustrates that social commerce is a new phenomenon in management and became an effective tool for management to
develop effective strategies for their brands in the early years of the 21
st
century. One paper in a related field was published in the
latter part of the 20
th
century. Little work on the subject matter was done within the first ten years of the 21
st
century with writers
showing tremendous interest in social commerce from the second decade of the 21
st
century particularly due to growth in
technological trends with the subsequent introduction and the rapid expansion of social media in commerce.
Table 2: Sample publications coverage areas
Coverage area
No. of Publications
% of Publications
Trust
26
21.85
Loyalty
33
27.73
Relationship building
20
16.81
Communications
25
21.01
Customer interactions and activities
15
12.61
Total
119
100
Table 2 illustrates the various areas that the sample articles covered. It indicates that social commerce has become a key instrument
for all sectors to manage corporate brands. Out of the articles the researcher used, twenty-six (26) were related to trust. Thirty-three
(33) articles related to loyalty. Twenty (20) were related to relationship building. Twenty-five (25) were related to communication
and fifteen (15) were related to customer interactions and activities. The use of social commerce in managing corporate brands can
be identified in all sectors of management and has become a very effective tool for managing corporate brands.
Many companies are reporting a rise in sales as a result of their social commerce approach. Businesses can expand their potential
clientele by using social commerce to boost the volume of their online sales. A company's development and profitability are boosted
by the resulting client loyalty
[90]
. Customers gain from social commerce in several ways, both monetary and non-monetary
[14]
. It
can lower transaction costs and guarantee the long-distance delivery of a wide range of goods and services. It guarantees that
automated customs declarations cut down on the amount of time that products spend in transit, including the time needed for
customs clearance
[23]
. Online sales are exploited by customers, who shop whenever it is convenient for them
[24]
. Additionally, they
can purchase items that are located far away but can still be ordered, increasing the options open to them
[81]
. Notwithstanding this,
there are many advantages for businesses that use channel intermediates. Businesses can deploy this kind of platform at a cheaper
initial fixed cost because of the characteristics of social commerce
[107]
. Especially when compared to traditional purchasing, sellers
may quickly and readily update their product descriptions and pertinent material on social networking sites. This gives consumers
access to the newest styles and trends in products. Vendors from poor nations can operate more targeted and, frequently, more
affordably than they might through traditional channels by using social commerce platforms to connect with a large number of
potential clients in both their domestic and foreign marketplaces
[115]
. Social networking services facilitate social contact, which
enables users to establish, nurture, and sustain connections virtually. Customers' purchase behavior can be significantly predicted by
this
[57]
. Suppliers who rely significantly on e-commerce, particularly for electronic content, will undoubtedly see a decrease in
delivery costs. "More digital inputs can be used, which facilitates the management of dispersed manufacturing networks. This
affects value chains around the world. Because social commerce services are so popular worldwide, they have grown rapidly and
drawn a lot of businesses and clients
[119]
. Consequently, it is experiencing increasing economic growth. More stores are
instantaneously accessible to customers in social commerce marketplaces thanks to the networks, which boosts resellers' revenue.
Customers who consistently browse are more likely to find shops. Social commerce enables the development of a tracking and
recommendation system, which is essential for effective and sophisticated user tracking. For instance, these online product reviews
influence consumers' real purchasing behavior by disseminating information from reliable sources, such as experts or verified prior
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customers.
To gather information about a product before making a purchase, consumers talk to their peers about its quality, price, and variety;
read positive and negative product reviews to compare different viewpoints; and watch and hear from other customers about the
product in question
[74]
. Customers will make more purchases in a social commerce system as they use more methods to explore the
content. Customers contribute their own experiences and thoughts while making purchases of goods or services, according to earlier
research
[48]
.
The use of both content and relational analysis in the articles reviewed indicated that social commerce assists consumers in pre and
post-product evaluation including discussions on product ratings
[101,108]
. Through social community and social support, social
commerce establishes peer-to-peer networking and enhances group communication through content, creates friendship and trust,
and increases customer feedback
[99,103]
. The many marketing activities and communication roles played by social commerce
promote positive brands and buying preferences, perceptions, and buying intentions that positively influence
consumer-to-consumer shopping experiences due to the availability and sharing of brand information
[4,5]
. Social Commerce
influences customers' trust towards corporate brands, helps build relationships between customers and between management and
customers, and as well promotes high levels of communication between customers and brands. These activities are performed and
achieved with little or no cost to the brands, therefore enhancing their marketing, promotion, and communication savings,
increasing profitability, and making the brands highly competitive.
V. Findings
It is an indisputable fact that corporate brands are seeing an increase in revenue through sales increase and a reduction in cost in
terms of the promotional needs of the corporate brand. It is equally reducing the marketing communications cost of corporate brands
due to their activities with social commerce. Customers now pay directly to disseminate a brand’s message to others by paying for
the cost of communication through the use of telephone networks. Social commerce shifts a large portion of expenses of brands
marketing to consumers whilst lowering the cost of commercial advertising for corporate brands. The cost of employing celebrities
for product recommendation has been reduced due to both online and offline activities of social commerce thus saving cost and
increasing corporate brands profitability.
The study reveals that social commerce can influence behaviors to encourage faster product trials for prospective buyers and causes
higher levels of customer retention through the sharing of product information, ratings, and usage than most of the promotional
elements due to its person-to-person nature. Social commerce has made many customers become employees of the company by
resolving customer complaints and offering various forms of assistance to both prospective and existing customers without adding
cost to the company’s payroll and creating more salespeople without the companies having to pay for commissions. The study again
discovered that Social commerce is effective for integrated marketing communications (IMC) because it possesses all the features
of IMC and even more such as content creation from the customers' perspective in achieving brand equity for corporate brands.
VI. Conclusion
Social commerce has become one of the most versatile elements for sustaining corporate brands in terms of cost savings through
loyalty, relationship building, trust communication, and influencing customer interactions. Social commerce can create brand
awareness and brand building, help corporate brands in the acquisition of customers, introduce new products and services, enhance
customer retention, increase employee engagement, assist in marketing research, help customers identify new products and service
opportunities, and improve current products and services. Though it works to reduce the cost of carrying out these functions for
corporate organizations, its capacity to reduce the communication cost of brands is exceptional and extraordinary in the
achievement of competitive advantage for corporate brands.
Future Research
This study is limited to considering the cost savings approach of social commerce to sustain corporate brands. Since social
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commerce has become relevant in managing corporate brands, future research into sales, profitability, customer satisfaction, and
market shares will be of immense assistance to both academicians and industry players.
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