Facebook Casestudy David Yc Kam Curtin Graduate School of Business 2013

2584 Words May 10th, 2013 11 Pages
Lecturer: Professor Margot Wood

Assessment 1 Case papers overview Due: 14th February 2013 (Thursday) Word Count: 1588.


Student Name: David Yew-Choong KAM Student ID: 09876307.

WHY do people use Facebook?
Whether it's for posting updates, reposting articles, checking in

locations/whereabouts, or playing Farmville – people participate in Facebook to stay connected, to relax, to be entertained, and to be kept informed (Bond, Ferraro, Luxton and Sands 2010, 4; Piskorski, Eisenmann and Smith 2012, 2). Some might even use it to spy on their partners, triggered possibly by romantic jealousy (Darvell, Walsh and White, 2011; Elphinston and Noller 2011, 631).

Others use it as a platform to
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Loss of privacy and bad publicity are also key issues when individuals tap on the social media highway. The recent cash-for-tweet saga by the South Australia Tourism's paid tweets to generate publicity for Kangaroo Island backfired, is a case in point (Ward, 2012, 39).

Facebook addictions (Griffiths 2012, 518) seems to be a growing concern - many have gone on digital breaks, Some users have even decided to flick the click permanently as life priorities changes (Kippist, 2013), while some users have complained about cyber bullying (Walker, Sockman and Koehn 2011, 35; Widdup 2010, 62).

Facebook has somewhat returned some power to consumers as the millions of users brag, bag and promote brands voluntarily, acting like being a brand ambassador on a pro bono basis. Leveraging on this consumer to consumer power to influence purchasing decisions meant businesses need to rethink their


branding and marketing exercise to include a hybrid of brick and mortar and the click-and-"Like" mediums (Edelman 2010, 2; Mangold and Faulds 2009, 358). It's a paradigm shift where consumers are co-creators of the brand and hard selling shifts into two-way conversational selling. All these changes create opportunity for positive electronic word of mouth (also known as eWOM) to go viral very quickly (Chu 2011, 39). This can lead to a loss of control by businesses over the

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