Social media are computer-mediated tools that allow people to create, share or exchange information, ideas, and pictures/videos in virtual communities and networks. Social media is defined as "a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user-generated content."[1] Furthermore, social media depend on mobile and web-based technologies to create highly interactive platforms through which individuals and communities share, co-create, discuss, and modify user-generated content. They introduce substantial and pervasive changes to communication between businesses, organizations, communities, and individuals.[2] These changes are the focus of the emerging field of techno self-studies. Social media are different from traditional or industrial media in many ways, including quality,[3] reach, frequency, usability, immediacy, and permanence. Social media operates in a dialogic transmission system, (many sources to many receivers).[4] This is in contrast to traditional media that operates under a monologist transmission model (one source to many receivers).

Details

Although traditional social media offer a variety of opportunities for companies in a wide range of business sectors, Economic Sector mobile social media makes use of the location- and time-sensitivity aspects of it in order to engage into marketing research, communication, sales promotions/discounts, and relationship development/loyalty programs.[11]

Marketing research:

Mobile social media applications offer data about offline consumer movements at a level of detail heretofore limited to online companies. Any firm can now know the exact time at which a customer entered one of its outlets, as well as comments made during the visit.[11]

Communication:

Mobile social media communication takes two forms, the first of which is company-to-consumer in which a company may establish a connection to a consumer based on its location and provide reviews about locations nearby. The second type of communication is user-generated content. For example, McDonald's offered $5 and $10 gift cards to 100 users randomly selected among those checking in at one of the restaurants. This promotion increased check-ins by 33% (from 2,146 to 2,865), resulted in over 50 articles and blog posts, and prompted several hundred thousand news feeds and Twitter messages.[11]
Sales promotions and discounts: Although in the past customers had to use printed coupons, mobile social media allows companies to tailor promotions to specific users at specific times. For example, when launching its California-Cancun service, Virgin America offered users who checked in through Loopt at one of three designated Border Grill taco trucks in San Francisco and Los Angeles between 11 am and 3 pm on August 31, 2010, two tacos for $1 and two flights to Mexico for the price of one.[11]
Relationship development and loyalty programs: In order to increase long-term relationships with customers, companies are able to create loyalty programs that allow customers who check-in regularly at a location to earn discounts or perks. For example, American Eagle Outfitters remunerates such customers with a tiered 10%, 15%, or 20% discount on their total purchase.[11]

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