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25
T&CTower
limitation of time and amount which
who have an experience, getting a
when we compare two products
social commerce emphasizes is a
product ata discountedprice,think
which are at discounted products,
big cause of occurring ‘Heuristic
they got loss in monetary when
we have to focus on the discounted
Thinking’inourminds.
they have to pay full price of the
amount rather than discounted rate
product.Thatmindcauseslesstimes
and as shown above, consumer
of repurchase intention. A seller of
should not have inner conflict due
Then,IsSocialCommerce
Kyunghee Aesthetic, Won Kyung-
to the ‘limitation’ of time or amount
ReallyBeneficialtoSellers?
hee, said “In the case of customers
and have a careful consideration
If we only see in the economic
who have used social commerce
reserving the buying plan until you
perspective, it could be an effective
system, re-visitation rate of our
havethenecessitythattheproductis
way to seller. If, however, we
service is less than 10 percent. We
veryessentialtoyou.JoYoun-mi,the
consider consumer’s psychology, it
expected the effect of increasing the
directoroftheheadquartersofGreen
could be hard to gather their regular
number of regular customer rather
Consumer Network in Korea, who
consumer through social commerce
thaneconomicalprofit,butthesocial
foundedbycivicgroupforprotecting
system.Thatisbecauseofthe‘Gain/
commerce led to the result of non-
consumer’s right, said, “Consumers
Loss asymmetry’ theory in Behavior
efficientway.”
should not be swindled by the
Economics. The theory implies that
‘limitation’ the social commerce
people tend to think they suffer
suggested, confirm the correctness
Howcanweusesocial
biggerlossescomparedtoamountof
of the detailed information about
commercewisely?
the products and try to use the
Like this, the possibility that
social commerce keeping the guide
Value Function
the consumer could do irrational
line which FTC presented.” Social
Tversky
economicactivitycanbehigherdue
commerce itself should try to reduce
value
+
to social commerce’s exaggerated
tricking the consumer sights and
and
advertisements. So, it is very
present the right products or service
ⓒKahneman
gains
important to have a careful attitude
to consumer. That will lead social
and make a decision with, logical
commercetoactasagoodelectronic
outcome
thinking.JooSaw-yean,professorof
commerce.
Department of Consumer Studies at
losses
JE or SE &
EwhaWomansUniversity,said“The
The desired purpose of the social
high evaluability
psychological trait make a much
commerce is to act positively for
SE &
influence to consumer’s attitude
consumer and seller, accelerating
low evaluability
whentheybuygoodsbyusingsocial
business, economics, and
reference point
commercewhichhasaspecialtraits
consumption. However, in this point,
* Utiliry function under high and low evaluability
thatthedealingsaredoneinon-line
social commerce just intensifies the
and in joint evalualtion(JE) or single evaluation(SE)
space. Consumers should control
confusion in consumption behavior.
pleasuregettingfromproductevenif
their mind more carefully, and try
Today,weshouldrecognizethateven
ithasexactlythesamevalue.
to look at the original value of the
though social commerce is a means
In the graph, even though the
stuff by showing rational decision
to buy products, it can ruin our
absolutevalueofgainandlossisthe
making.”Ratherthanjustlookingfor
consumptionbehaviorinamomentif
same, sensory value which points in
cheaper goods, we should consume
wearenotcareful.Letusreduceour
y-axis shows big difference between
whatisessentialtous,eventhoughit
irrationaldailylifeasaconsumerby
them. In generally, the sellers think
hasalowdiscountrate.Andwehave
knowing which kind of psychology
that if the consumers use their
to distinguish the discounted price
trait could affect our consumption
products,theywillbuytheirproducts
with real fixed price not suggested
behavior.
onemoretime.Consumers,however,
price in social commerce site. Also,
hee0225@hufs.ac.kr
MARCH 2012

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