UNDERSTANDING WILLINGNESS TO PAY FOR SOCIAL NETWORK SITES

Carrine Kezia Aulia 歐陽孔玲102183022

OUTLINE1. The importance of this research

2. Contribution of this research, both academic and practical

3. Key factors

4. Data collection

5. How researcher develop their model

Why this research important?

• According to (2011), online social network use is still increasing RAPIDLY.

• Many market survey also confirm that.

Why this research important?

GLOBAL SNS

• More extensive• Example :

FOCUSED SNS

• Focused network• Serve the purpose• Example :

DIVERSITY AND COMPETITION ALSO INCREASED IN LINE :

Why this research important?

FREE

• All for free

FREEMIUM

• Free for basic service• Upgrade option available

for more extensive usage

DIVERSITY AND COMPETITION ALSO INCREASED IN LINE :

Purpose of this study is to examine what factors that that affect SNS members’ willingness to pay subscription or upgrade account both directly and indirectly

Main Contribution (Academic and Practical)

1. Propose new factor to online social network : ENTITAVITY

2. Adds insight to ongoing academic debate on whether and

when subscription-based online business model are

successful

• Capture the economic value to SNS

3. Importance of considering member heterogeneity and the

type of network (Considering the type of social network they

serve, and types of members)

Key Factors

1. Social Network Sites (SNS)

a) Social Media

• Content communities (You Tube)

• Blogs, collaborative projects (Wikipedia, Behance)

• Virtual social world (Second life)

• Virtual game world (Warcraft)

b)Networking

• Professional (LinkedIn)

• Re-connect friend (Facebook, Classmates)

Key Factors

2. Willingness to Pay (WtP)

Members’ intention to

upgrade their current free

account to a fee-based

account, and their

intention to extend their

paid membership period

Key Factors

3. Entitativity

What extent people can be described as being bound together in a

coherent unit (Lickel et al., 2000)

Key Factors

4. Social CapitalAttributes, such as social trust,

norms and sanctions (e.g., the norm of voluntarism), obligations and expectations (e.g., the obligation to reciprocate), identification, and commitment

(members of a SNS are willing to provide favors to other members, even to stranger)

Key Factors

5. Social Value

Value that derived from socializing and

building relationship with others, and may

result in an increased social network and the

enjoyment of communication

Key Factors

6. Functional Value

To what extend SNS members’ can

get valuable information provided

by other community members.

Key Factors

7. Economic Value

To what extend SNS members’ can get advantages or financial benefit

from other members.

Data Collection – Study 1

• Sample : Primary DataRegistered members of online SNS

(focus on social media/ social purpose), both regular and premium members.

• Procedures : Online questionnaire (2 weeks)

Data Collection – Study 1Gender

Data Collection – Study 1Age

Data Collection – Study 2

• Sample : Primary DataRegistered members of professional SNS

(focus finding jobs, people, business opportunities, or recommending others), both regular and premium members.

• Procedures : Online questionnaire

Data Collection – Study 2Gender

Data Collection – Study 1Age

Research Model• This research consist of two part with additional variable on 2nd study.

Study 1

Research Model – Study 1• Direct Route

• H1a : Entitativity will positively impact SNS members’ intentions to pay for online social network use

• H1b : Social capital will positively impact SNS members’ intention to pay for online social network use

• Indirect Route• H2a : Entitativity will positively impact SNS members’ perceived social value• H2b : Social capital will positively impact SNS members’ perceived social value• H3a : Entitativity will positively impact SNS members’ realized economic value• H3b : Social capital will positively impact SNS members’ realized economic value• H4 : Social value will have a more positive impact on Wtp for premium members,

compared to regular members.• H5 : Economic value will have a more positive impact on Wtp for regular members,

compared to premium members.

* All hypotheses developed based on literature review

Research Model – Study 2

In study 2, researcher add Functional Value, because the author wants to enhance to adapt with

professional SNS members context.

Thank you