services. But that figure is precisely what was reported in a 2009 study conducted by
MerchantCircle, a social network for small businesses. Once the survey results were
released in 2010, experts were not surprised to see the percentage of social media users
increase to nearly 50 percent; according to Darren Waddell, vice president of marketing
at MerchantCircle, companies are turning to social media for advertising because it is
relevant and inexpensive way to reach targeted consumers. Rather than pouring large
sums of money into traditional marketing, business owners are starting to find more
creative ways of promoting their brand. One of the more common practices for small
business owners utilizing social media is including URLs on business cards-of all sites,
Facebook (no surprise) was the most common site to make it onto business cards.(Jon
Swartz, “More Small Businesses Use Facebook, Twitter to Promote.” USA Today, July
21, 2010.)
One small business owner found that when he started using Facebook, he began
establishing stronger relationships with some of his less consistent customers.
Eventually, one of his customers started a group on the site that other users could join to
discuss various aspects of his business. Others joined the group, and it slowly grew over
time. This group of Internet followers is an example of
a. an e-community.
b. social media followers.
c. loyal customers.
d. a brand following.
Following the announcement that the world’s largest e-tailer, Amazon.com, made a
profit for the first time since it started business in the early 1990s, the company saw
more than 90 percent of its market value disappear as part of the dot-com collapse. It is
questionable whether or not Amazon figured out a profitable business model after
changing its tune several times over those early years. Then it began circling back
somewhat to an earlier focus on becoming the Walmart of the Internet. It said it wanted
to sell huge volumes of merchandise cheaply, and in the process eke out enough of a
profit to satisfy Wall Street.Although investors had to wait some time for the e-tailer to
work out the kinks, and it’s uncertain how much longer they’ll remain patient, Amazon’s
mainstay retail business may see further improvements as it grows. As we all have now
witnessed, unlike brick-and-mortar retailers who must build new stores, stock them, and
hire people to staff them, Amazon has been able to open new stores with minimal
additional cost. Some years ago, it reported turning over its inventory 17 times a
year-close to double that of traditional retailers at the time. And on average, it reported