Key principles behind the concept of social computing

 

 

 

2. Amazon seems to have pioneered the use of social feedback to drive product sales. When you
personally look for a product to purchase on Amazon, do you look at the user ratings? Have you
ever gone further and read specific positive and negative reviews to determine if it is the product
you want to purchase?
One of the key principles behind the concept of social computing is the collection of data about
customers. These data include many different types of information, such as which products the
individual viewed, how many times, what else they viewed in relation to the first product, and so
on.
Following this concept, consider a recent purchase you have made online (if you have never
made a purchase online, then you are definitely unique!). Which data do you think was collected
about you and your purchase? How do you think the business can use that information? Do you
think that customer data like this is a commodity that can be sold? What concerns does this
raise?

Sample Solution

Yes, absolutely! When looking for products on Amazon, I almost always look at user ratings. High star ratings with a significant number of reviews provide a sense of trust and confidence in the product. Beyond the star rating, I frequently delve into specific reviews – both positive and negative – to get a more nuanced understanding of the product’s strengths and weaknesses. Positive reviews highlight features and benefits that resonate with users, while negative reviews can reveal potential drawbacks or compatibility issues I might not have considered.

Social Computing and Data Collection: A Double-Edged Sword

The concept of social computing, particularly on platforms like Amazon, relies heavily on collecting customer data. This data encompasses various aspects of user behavior, including:

  • Viewed Products: Every product you browse on Amazon is tracked. This allows the platform to understand your interests and recommend similar items.
  • View Duration: How long you spend looking at a product can indicate your level of interest.
  • Purchase History: Past purchases paint a picture of your preferences and buying habits.
  • Search Queries: Your search terms reveal what you’re actively looking for, helping Amazon tailor product suggestions.
  • Viewed Products Together: Amazon tracks what products you view alongside a particular item. This can reveal potential complementary items for future recommendations.

Data Utilization by Businesses

Businesses leverage this collected data in several ways:

  • Personalized Recommendations: By understanding your browsing history and purchase behavior, Amazon personalizes product recommendations, making your shopping experience more efficient and potentially leading to more purchases.
  • Targeted Advertising: Data allows businesses to target you with relevant advertisements across the web, potentially influencing your purchasing decisions on other platforms.
  • Product Improvement: Analyzing reviews and user behavior can identify product shortcomings and inform future product development or design changes.
  • Inventory Management: Data on purchase patterns helps businesses optimize stock levels to avoid overstocking or understocking.

Customer Data as a Commodity

Customer data can be considered a commodity that can be bought and sold. Aggregated and anonymized customer data is often used in market research and targeted advertising campaigns. However, this practice raises concerns about:

  • Privacy: The extent to which user data is anonymized and the potential for re-identification are key concerns.
  • Security: Data breaches can expose sensitive user information, leading to identity theft or targeted scams.
  • Manipulation: Companies may use data to manipulate consumer behavior by promoting specific products or influencing purchasing decisions.

Finding the Balance

The benefits of data-driven personalization and targeted advertising are undeniable. However, it’s crucial to maintain a balance between convenience and user privacy. Strong data protection regulations, user control over their information, and transparent data collection practices are essential to building trust and ensuring ethical use of customer data.

 

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