Rolf T. Wigand
ABSTRACT
A recent major shift has broadly impacted the evolution of electronic commerce: Web 2.0. This paradigm shift represents the change of the Internet from a market for goods and services to a socially centered and user-driven marketplace. The authors argue that by applying the fundamental principles of basic psychological need theory, we can better understand how the Web 2.0 technologies and applications have made possible these transformative changes in electronic markets. We provide an underlying conceptual needs-focused model helping us understand today's commerce and consumer behavior on the web. These observations are scrutinized within the Web 2.0 context and demonstrate how the world of conducting business has changed and how this world must link and embrace the unfolding new world of social relationships, developing communities and networks on the web.
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