Social Technologies and Value Creation

So, we introduced the social technologies in the previous blog. Now this begs the question, how the social technologies are creating value generation. It is an important concept studied in consumer behaviour. Let me introduce bit of the literature in the context of social media, internet and consumer behaviour.


In the modern world consumers are very actively involved in various activities over internet. Heinonen (2011) argues that consumers not only share knowledge but also participate in discussions and contributing to other consumers’ activities as well. It is interesting to note that there are various forms of media on internet that is also referred as social media such as Facebook, Twitter, YouTube, etc. The social media is largely a platform for creating and marketing the companies’ content. Stewart and Pavlou (2002) stated that from a marketing perspective marketers have developed a keen interest in digital interaction particularly consumer activity and interaction over the social media.

The results from Gros (2012) showed that 95 % of the respondents have been using different forms of social media for more than two years and 48 % of the users have been using social media for more than five years. Moreover, it was interesting to note that users were spending up to 27 hours per week on social media

Ahmets Logo

The companies should use the opportunity of interaction available through Social Media to get involved with the community of followers. Klaus and Maklan (2011) argued that the Internet has transformed initial relationship between consumers and marketers into mutual collaborative relationships. It can also be concluded that Social Media offers the opportunity to express their concerns for customers and ensure that their voices are heard. Moreover, through the social media.

companies may be using to come up to customers’ expectation. Sweeney and Craig (2011) argue and comment that if the customers feel that their comments and feedbacks are valued and companies are try to come up to their expectations and are concerned; the purchase decision are made quickly.

Value and Social Technologies

The following articles explain the social technologies in a very coherent manner

Mickensey report on The social Economy discussed five functional areas that can add value to a firm. I would like to discuss example of Ahmets Restaurant ( at SouthBank that claims to create a lasting impression for the customers. However, what is missing (read: inefficient) from their customer service and experiential part of service is the presence of social technologies.

A functional area that can be significantly improved for Ahmets is their marketing and sales through social technologies. As Vargo and Lusch (2004) discuss about value co-creation in the service scape. It is an opportunity for Ahmets to use customers’ feedback to create value for customers. It will also develop insights for firms growth as compared to traditional marketing practises in the past. Also, the social technologies allow firms to actively follow up the customers



10 thoughts on “Social Technologies and Value Creation

  1. very interesting point. I just double checked they have online presence but the reviews are not excellent. From my personal experience, they have excellent service and quality of food which is not reflected in their online presence. Therefore, I suggested to further improve their CS through social technologies.

    Thanks for pointing that out Steve


  2. Hey great post. I enjoyed how you structured your points backed by the statistics, shows just how important social technologies is to both customers and organisations. My chosen business (Asia Canteen) is some what similar but also quite different, they have listings with review sites like Zomato and yelp! however no website or social media networks besides a deserted Facebook page. Makes you think the impact these organisations could have with the proper implementation of social technologies.

    Liked by 1 person

  3. Great Post. Adding an introductory paragraph that gave context really made this post.

    I have first hand experience with companies taking the opportunity to get involved in the community using social technologies. I have 14.4k Instagram followers and am actively in the beauty blogger community in Brisbane and Australia. I frequently get emails from companies asking if I would like to try a product in exchange for my thoughts, comments and feedback. Therefore my customer feedback is creating value for other customers just like Ahmets Restaurant.

    For Ahmets Restaurant, Instagram would be a vital tool to showcase the look, feel and quality to there customer base, both new and potential. As they already have a Facebook page with 3,61 likes they can send there images to Facebook to engage and entice their followers there.

    Liked by 1 person

  4. This was a great read, it’s good to see that you included statistics and references. It’s important for small restaurants such as Ahmeds to jump on the bandwagon and join Social Media sites such as Instagram to help grow their business.

    Liked by 1 person

    1. Absolutely agree as it is very crucial for companies to understand the importance of social media based technologies. Although Ahmets is a small firm but can definitely learn from best practices of Fortune 500


  5. Hey Ibrahim, I’m just wondering what you meant with the first part of your blog – you’ve mentioned that Heinonen argues that many users share information, participate in discussions and also contribute to others ideas, but then there are other forms of media referred to as social media as well, items such as Facebook, Twitter and Instagram?

    I couldn’t find a link to the Heinonen article you discussed – is there a different platform that some are using to generate discussion online? I would have thought that Facebook was one of a small restaurants leading means of marketing/customer feedback considering the rating and review system they have been focussing on in the past 12 months?


  6. hey, Jim, I have referred to an academic article and I am not sure if i can link the article here due to research integrity. The article is primarily discussing the information sharing from the consumers’ perspective


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