Effect of facebook friends on each other's consumption patterns

Abstract

This paper aims to reveal that Facebook's features, originally developed for the purpose of communication among friends and acquaintances, are indirectly affecting users in their consumption patterns and choices, thus impacting market dynamics. This research identifies the likely profile of Facebook users whose consumption decisions are affected the most by whom and by what. A mixed approach comprised of two focus groups and a survey was fielded at a Lebanese university in fall 2010-2011. A random sample of 1100 students from the different faculties participated, yielding 1090 respondents for a response rate of 99 percent. A Facebook Intensity score or FBI was used to measure Facebook usage, frequency, duration, integration into daily activity and emotional connection to site. Research established that consumption factors are positively correlated with the FBI score. The university students with high FBI scores are affected the most by their circle of top friends, mainly in their hanging-out decisions, among others. Research shows that companies need to look out for the growing influence of consumers' co-creation of value and needs if they desire to remain competitive. Companies need to pay more attention to the role of social media in empowering customers in influencing each other. The originality of this research lies in assessing the indirect effects of Facebook usage on consumption, which is a newly visited theme and unforeseen outcome of the social network sites. The study could be conducted on a longitudinal basis, as people are still experimenting with Facebook usage.