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Case 1
JCPenny
Case Objectives
1) To introduce students to various types of e-commerce that make use of social media
marketing techniques inclucing S-commerce and F-commerce.
2) To evaluate how effective marketing via social media sites is for channel members,
especially retailers and manufacturers.
Problem Situation
Several well-known retailers have begun to adopt the use of social media sites (e.g., Facebook,
Teaching Suggestions
As the case suggests, younger consumers who are already heavily involved in social media such
as Facebook, Twitter, etc., are most likely to be prime targets for F-commerce. Since students fit
Case Discussion
Some argue that people do not shop simply to make purchases, rather shopping is a social
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Since Facebook and Twitter are social networking sites, a great deal of interaction occurs which
includes discussions about favorite and hated products. In this setting, frequent and regular
interactions occur. It may be more difficult for some businesses to adapt to this mode of
interaction unless they accept the need to interact frequently and in some cases personally.
Like any marketing technique, F-commerce can be overused and consumers may begin to block
these messages if these promotions are deemed to be a nuisance. However, it is probable that
retailers and manufacturers will learn how to use social media more judiciously, as a vehicle to
deliver their promotional messages to select groups of consumers in an effective and entertaining
manner.