COMPARATIVE STUDY OF FACTORS INFLUENCING CONSUMER SUBSCRIPTION OF VARIOUS SOCIAL NETWORKING SITES.

1. COMPARATIVE STUDY OF FACTORS INFLUENCING CONSUMER
SUBSCRIPTION OF VARIOUS SOCIAL NETWORKING SITES.
Faridh Khan
Nivas
Shyam Prasad
Dhanabal
Subhashini
Bharathidasan Institute of Management

2. ABSTRACT :
A social networking service is an online service which provides a platform for
building social network or social relations among people. The use of social networks has
risen dramatically over the last few years as users have reached out to friends, new
acquaintances and businesses through this new means of communication. India is one of the
biggest growing markets for Community network. The popularity
of social networking sites such as Facebook., Myspace, Twitter, LinkedIn and Google + more
than quadrupled from 2005. We are focusing on determining the factors that contribute
to social networking sites being the centre of attraction in this new era of 21st
century. This
paper aims at comparing the various factors that influence consumer subscription of
Facebook, Linkedln, Twitter and Google+. Through the usage of Principal Component
Analysis, Varimax Rotation and Paired Comparitive Analysis, this research examines
constructs that influence consumer attitudes toward social networks and their intentions to
use, continue using, and recommend social networks. The findings indicate that applications,
security and privacy features available, the personal image the site provides it‟s members,
level of interactive ness that a social networking site offers can be the strongest positive
factors influencing user attitudes or intentions with regard to social networks.
Key Words : Social networking, Facebook, Google+, factors
I.INTRODUCTION :
Boyd and Ellison (2005) define social networking sites as , “web-based services that
allow individuals to (1) construct a public or semi-public profile within a bounded system, (2)
articulate a list of other users with whom they share a connection, and (3) view and traverse
their list of connections and those made by others within the system. A social network service
consists of a representation of each user (often a profile), his/her social links, and a variety of
additional services. Most social network services are web-based and provide means for users
to interact over the Internet, such as e-mail and instant messaging. Social networking
websites have grown in popularity and number recently, particular since 2003 (Boyd and
Ellison, 2005). The success or failure of a particular social networking website depends
primarily on the consumer subscription rates. This research attempts to find what factors
influence the customers to use these social networking sites, whilst trying to define and
model the relationships so that site builders and society alike can benefit from the results. In
this paper we present the literature review and our hypothesis followed by methodology,
data analysis, results and discussion, and scope for future research.
II. LITERATURE REVIEW :
Today's world is a place where innovation is the norm and technology transforms
everything. Today's society like everything else is transformed by technology in a way
previously Unthought -of Old methods of communicating in social circles have been

3. redefined over the web as web based social networks (Atukorala, K.W.). James M.Curran and
Ron Lennon (2011) in their research using the relationship between attitude and behavioral
intentions established in the Theory of Reasoned Action and applied to technology use by the
Technology Acceptance Model, this research examines constructs that influence consumer
attitudes toward social networks and their intentions to use, continue using, and recommend
social networks. The findings indicate that the level of enjoyment derived from using social
networks is the strongest positive influence and that the drama associated with behaviors of
others on the social network can be the strongest negative influence. These findings also
show that the constructs of ease of use and usefulness made popular by the Technology
Acceptance Model play no significant role influencing user attitudes or intentions with regard
to social networks. Hu & Ramirez (2006) have found in an empirical analysis that the social
networking websites are used primarily for posting profiles, creating impressions, cultivating
image, and enjoying.
III. SECONDARY RESEARCH
2012 2011
Facebook 63.18% 64.50%
Google+ 0.58% 0.01%
Twitter 1.73% 1.34%
LinkedIn 0.77% 0.63%
LinkedIn , Facebook and Twitter – In different Leagues:
Facebook is massive in scale and scope. It is more personal and involves majorly
„being in touch‟ with friends and family. Photo-sharing and video uploading play occupy the
dominant position in activities carried out on facebook. Twitter is a public communication
forum, when a person follows another, it is not necessary that the other person reciprocates. It
is more to do with publicity and most of the celebrities use this as a medium to reach out to
their fans and the public. LinkedIn is, simply, a professional network. It is a professional
network, which has monetized its connections through its tremendous power as a corporate
recruitment platform.So comparing attributes and growth across these three completely
different sites would not make much sense and would not throw up tangible results.

4. On the other hand Facebook and Google+ both fall under the same category. In fact
pundits were of the opinion that Google+ was launched to provide direct competition to
Facebook. But Google+ has not been able to match its initial sensational ascent with a
sustained growth in terms of subscriptions. The backgrounds of the two sites and the factors
leading to this variation in subscription are discussed here.
Facebook:
Facebook was invented by Harvard computer science student Mark Zuckerberg ,
along with classmates Eduardo Saverin, Dustin Moskovitz, and Chris Hughes. Initially it was
started as network for connecting to students within the college. It then slowly spread to other
universities and finally Feb 4, 2004 Facebook went online to the public. It easily uprooted the
existing social networking sites like orkut and grew at a rapid pace. From jus 1Million users
in Dec 2004, Facebook has crossed 1Billion users (a eight of the world‟s population) in Oct
2012. It now enjoys around 63% market share. Facebook recently acquired the photosharing
app Instagram for 100Million. This has further strengthened its photo sharing abilities, which
has always been its USP. Analysts predict this move has further increased Facebook‟s
userbase.

6. IV. HYPOTHESIS :
James M.Curran and Ron Lennon (2011) in their research using the relationship between
attitude and behavioral intentions established in the Theory of Reasoned Action and applied
to technology use by the Technology Acceptance Model, this research examines constructs
that influence consumer attitudes toward social networks and their intentions to use, continue
using, and recommend social networks. The findings indicate that the level of enjoyment
derived from using social networks is the strongest positive influence. Therefore,
H1: Applications, Instagram, video chat features, games, photo tagging that dictate the level
of enjoyment in a social networking website has a direct and positive impact on influencing
the increased consumer subscription to Facebook compared to Google+.
Hu & Ramirez (2006) have found in an empirical analysis that the social networking websites
are used primarily for posting profiles, creating impressions, cultivating image, and enjoying.
Hence we propose our second hypothesis as below.
H2 : Factors like trend, member of a particular website being a style statement has a direct
and positive influence on the consumer subscription of Facebook compared to Google+.
V. RESEARCH METHODOLOGY :
5.1 Data Collection Procedure
An online Survey 1 was administered to youngsters who are the active members of
social networking websites. This survey was determined to identify those factors that
influence consumer subscription for any social networking website. This was followed by
another online survey2 which was again administered to youngsters to determine why
facebook grows at a higher rate than google+ in terms of consumer subscription.
5.2 Sampling Method
A convenient sampling was done for both the surveys. This is because we aimed at
tech savvy youngsters who were active members of social networking sites. A total of 144
and 68 responses were received for Survey 1 and Survey 2 respectively.
5.3 Questionnaire Description
Survey 1
The survey 1 questionnaire mainly focused on the factors that were perceived to be
the reasons for influencing consumer subscription for any social networking website. A likert
scale of 1 – 5 range was used to capture the importance of every factor as perceived by the
respondents in using a particular social networking website.

7. Survey 2
The survey 2 questionnaire mainly focused on determining those factors that
contribute to the high growth rate of facebook when compared to that of google+. A paired
comparison scale was used to understand the ratings of the respondent for a particular factor
with respect to facebook and google+.
VI. RESULTS AND DISCUSSION:
SPSS software tool was used to perform factor analysis on the results of Survey 1.
Principal Component Analysis. PCA is done by eigenvalue decomposition of data covariance
matrix. As a result of this the set of factors (31 factors) that was available for survey 1 was
converted to into a set of values of linearly uncorrelated variables called „principal
components‟ (11 components). The available data was then rotated by varimax rotation as a
result of which each individual factor can be well described by a linear combination of only a
few basis functions. The results are summarized in the following table. Those factors under a
component whose eigen values are greater than 0.6 are the set of linearly uncorrelated
variables.
Rotated Component Matrix(a)
Component
1 2 3 4 5 6 7 8 9 10 11
Identity
0.308 0.142 0.065 0.109 0.219
-
0.080
0.109 0.545
-
0.027
0.412
-
0.136
Gender_Diversity -
0.085
0.060 0.124
-
0.031
0.013 0.033 0.003 0.850
-
0.077
0.037
-
0.001
Dicussion_forum
0.040 0.094
-
0.062
-
0.003
0.034 0.070 0.376 0.049
-
0.002
0.700
-
0.126
Peer_presence
0.018
-
0.062
0.232 0.102 0.001
-
0.084
-
0.256
0.070 0.107 0.681 0.114
Gossiping
0.427
-
0.162
0.070 0.171
-
0.295
0.333 0.191 0.037 0.314
-
0.234
-
0.231
Advertisement
0.217 0.174
-
0.169
0.054 0.089 0.251 0.016 0.058 0.098
-
0.182
0.646
Impression
0.477 0.198 0.014 0.103 0.220 0.090
-
0.085
0.149 0.548
-
0.149
0.054
Resistance_to_change
0.118 0.050
-
0.018
-
0.020
0.040
-
0.022
-
0.002
-
0.137
0.826 0.137
-
0.031
Entertainment
0.089 0.269 0.008
-
0.043
0.241 0.060 0.632 0.294 0.138 0.050
-
0.011
Communication
0.271 0.666 0.003
-
0.080
-
0.003
0.151 0.211 0.061
-
0.098
-
0.094
0.055
Awareness
0.100 0.138 0.218
-
0.019
0.027 0.779
-
0.083
0.141 0.023 0.170 0.106
Criticism
0.114 0.014
-
0.063
0.093 0.063 0.753 0.135
-
0.120
0.005
-
0.156
0.072
Youth_trend 0.673 0.172 0.029 - 0.416 0.025 0.038 - 0.162 - 0.057

8. 0.059 0.222 0.015
Style_statement
0.849 0.144
-
0.031
0.049 0.200
-
0.005
0.027
-
0.095
0.059 0.054 0.178
Image
0.771
-
0.039
-
0.009
-
0.146
0.048 0.343 0.076 0.210
-
0.004
0.067 0.115
Competitive_value
0.687 0.193
-
0.019
0.271
-
0.219
0.016 0.023 0.037 0.097 0.059 0.067
Interface -
0.021
0.481 0.238
-
0.141
0.458 0.217 0.058 0.082 0.084 0.275
-
0.073
Virality
0.081 0.225
-
0.105
0.044 0.557 0.247
-
0.123
0.352 0.346
-
0.081
0.075
Simplicity -
0.339
0.274 0.114 0.018 0.062 0.310 0.352 0.305 0.308 0.017 0.225
Level_of_interactiveness -
0.028
0.769 0.101 0.109 0.036
-
0.052
0.069 0.077 0.223 0.164 0.188
Preference_list
0.216 0.585 0.198 0.334 0.184
-
0.080
-
0.054
-
0.023
0.099
-
0.077
-
0.055
Acess_to_add_frnd
0.165 0.559 0.236 0.153 0.307 0.349 0.168 0.130
-
0.072
-
0.018
-
0.143
Security 0.007 0.135 0.904 0.109 0.048 0.115 0.033 0.018 0.005 0.048 0.027
Privacy -
0.063
0.163 0.899 0.117 0.045 0.066
-
0.029
0.104 0.000 0.119
-
0.043
Video_chat
0.050 0.178 0.122 0.769
-
0.054
-
0.024
0.083 0.248 0.086
-
0.004
-
0.059
Mobile_APP
0.166 0.058 0.066 0.743 0.225 0.019 0.166
-
0.037
-
0.206
-
0.022
0.169
Instagram -
0.087
-
0.047
0.030 0.793 0.028 0.129
-
0.052
-
0.200
0.119 0.135 0.205
Tagging_photo
0.154 0.086 0.154 0.186 0.815
-
0.016
0.197 0.022 0.014 0.053 0.012
Ebusiness
0.127
-
0.026
0.131 0.195
-
0.040
0.004 0.067
-
0.074
-
0.076
0.084 0.781
Hassle_free_network
0.064
-
0.009
0.553
-
0.092
0.218
-
0.163
0.560 0.152
-
0.062
-
0.060
0.134
Presence_of_Games
0.041 0.080
-
0.010
0.295
-
0.070
0.100 0.772
-
0.225
-
0.124
0.051 0.062
H1 : A second survey carried out using a paired comparison scale to rate the identified
components in terms of facebook and google+ revealed that they enjoy using facebook for the
level of entertainment it provides through the applications, games, photo tagging, video chats,
instagrams and other exciting features getting introduced every other day. Thus hypothesis
H1 holds in that the level of enjoyment that a particular social networking website is one of
the main reasons for the increased consumer subscription for that website, in this case
facebook rather than google+.
H2 : The second survey also proves H2 in that youngsters prefer being members of a
particular website because they feel doing so builds their personal image as being a member
of a particular website, in this case the facebook, is viewed as a trendy and style statement.

9. Besides these factors the research also identified that the privacy and security features and the
level of interaction or communication that facebook facilitates also are major factors that
fosters the consumer subscription rate for facebook.
VII. CONCLUSION :
VIII. REFERENCES :
Shailja Agarwal, Monika Mital (2009), “An exploratory study of Indian university students‟
use of social networking web sites: Implications for the workplace”, Business
Communication Quarterly / March 2009
James M. Curran, Ron Lennon(2011), “Participating in the conversation: Exploring usage of
social media networking sites”, Academy of Marketing Studies Journal, Volume 15, Special
Issue, Number 1, 2011
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