There are several possible disadvantages for Starbucks use of social media

Please prepare a half page response for each part.

Part 1
What are the advantages for customers conducting commerce on Facebook? The disadvantages?

Social network sites make possible for users to build up and uphold social connections, set up ties, and express themselves. Lately, several organizations have begun using social media identity (e.g., Facebook fan pages) to improve product attractiveness. Social network sites have also advanced into social convenience networks, thus generating an amount of potential business opportunities. Businesses can set up a storefront for free on their Facebook pages. They start the shopping process on Facebook and then have the customer jump to their e-commerce pages at some point in the process to complete the purchase process (Lin and Lu, 2011).

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Few innovations have provided as many benefits to organizations, individuals, and society as e-commerce has. E-commerce benefits organizations such as Facebook by making states and worldwide markets more available and by reducing the fee of processing, distributing and retrieving information. Customers benefit by being able to retrieve a enormous amount of products and services, around the clock. The major benefit to society is the capability to effortlessly and conveniently deliver information, services, and products to people in cities, rural areas, and developing countries (Rainer, Prince, & Watson, 2013). Despite all these benefits, E-commerce has some limitations, both technological and non-technological, that have restricted its growth and acceptance. One major technological limitation is the lack of universally accepted security standards. Also, in less developed countries, a telecommunications frequency often is insufficient and accessing the Web is expensive. Non-technological limitations include the perceptions that e-commerce is insecure, has unresolved legal issues, and lacks a critical mass of sellers and buyers.

Part 2
There are several possible disadvantages for Starbucks use of social media. The first disadvantage being customers receiving false and misleading advertisements for free Starbucks gift cards by the social media outlet. After the reading the article “Starbucks Warns of Facebook gift Card Scam” customers and people in general enjoy “free” products were told that if they clicked on the “share button” they would receive a free $50 gift card (Stickney, 2011). An error or scam of this magnitude caused a viral disadvantage and hurt Starbucks’ reputation with hundreds of people and customers. Also, according to the article what people didn’t realize that not only was it a scam but they also opened themselves up to identity thieves or spam because of the “rogue applications” (Stickney, 2011).

According to Rainer, Price and Watson (2013), data leakage, invasion of privacy, and violations of intellectual property and copyright several other disadvantages. Another possible problem is negative post responses. There are those unhappy customers or competitors who post offensive posts, feedback, pictures or video. Unfortunately there is not much the company can do to stop it. Additionally, a company will need a person to update the page and company profile with meaningful information that represents the company. For a smaller company pulling one employee to oversee this task may affect work productivity. Using a person outside the company, like a consultant, would be more feasible.

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Prof. Angela


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