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RMD – GROUP PROJECT Social Media - Facebook “Study of Facebook to understand reasons for quitting through Market Research"

Group 3 – Section B Dileep HV: P18069 Proma Chowdhury: P18061 Rajat Goyal: P18067 Swayam Prakash Sahoo: P18093 Shailesh Bhatwalkar: P18060 Upasana Ghosh: P18066

RMD – Group 3

LETTER OF TRANSMITTAL Date: 30th March 2019 Prof Varsha Khandker, RMD Instructor, IIM Nagpur Dear Varsha Ma’am, We are submitting the final project report of Research for Marketing Decisions on “Study of Facebook to understand reasons for quitting through Market Research”. This project is descriptive cum analytical in nature and the main purpose of the project was to understand different aspects of Market Research Process. In preparation of the report, we strictly followed all your instructions and requirements. Sincerely, Group 3 – Section B

RMD GROUP PROJECT

LETTER OF AUTHORIZATION Date: 30th March 2019 Prof Varsha Khandker, RMD Instructor, IIM Nagpur Dear Varsha Ma’am, As group 3, we are submitting final report of subject Research for Making Decisions on “Study of Facebook to understand reasons for quitting through Market Research”, which you authorized. The report covers the approach to perform market research through various tools and technique. Sincerely, Group 3 – Section B

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RMD GROUP PROJECT

TABLE OF CONTENTS Topic…………………………...……………………………………………..Page-No 1. Executive Summary…………………………………………………………………..3 2. Background………………………………………………………………...…………4 3. Problem Definition……………………………………………………………………5 4. Approach to the Problem……………………...…………………………………...…5 5. Research Design………………………………..…………………………………..5-7 6. Data Analysis……………………………………………………………...………7-10 7. Results……………………………………………………………………...………..11 8. Limitations……………………………………………………………….………….11 9. Conclusions and Recommendation ……………………………………………..…..11 10. Exhibits…………………………………………………………………………..12-31

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RMD GROUP PROJECT

EXECUTIVE SUMMARY With the Project in Research for Marketing Decisions (RMD), we are trying to analyse customer behaviour and their reason for leaving one particular social media application. Through this project, we will try to increase the customer base and daily usage of the social media network. In order to make this work objective and focussed, we have considered ourselves as a consultant for Facebook. MDP and MRP was designed and then verbal model was used for exploratory research which was done through FGD and in-depth interview. Based on the variables identified in exploratory research survey questionnaire was prepared in which 165 respondents participated. This data was analyzed using various techniques like Factor Analysis, Cluster Analysis, Discriminant Analysis, Regression and ANOVA. Then recommendations were suggested for the above problem that Facebook should try to improvise on it socializing features, safety is one of the key features on which Facebook should work upon and entertainment features and the news feed could be improvised/personalized to increase engagement with its users. This will again help in retaining its users and create longer engagement with users.

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RMD GROUP PROJECT

BACKGROUND Context of the Problem According to both Alexa and SimilarWeb, YouTube just replaced Facebook as the second most popular website, globally. However, Facebook is still the world’s most popular search term. This decrease in FB usage can be attributed to various reasons which we will try to identify in this project. Some of the reasons for this decrease can be identified to be privacy concerns, government regulations and personal preferences. Secondary Research/ Literature Review: There have been multiple articles and studies based on the decrease in the user database for Facebook on how the factors affect the psychological behaviour of the user and control their actions. The articles explained about some issues related to social media ranging from eating issues, depression to as critical as suicide attempts. People connect to social media via smartphone which emits blue light which is harmful to health. The articles also explain about positive effects of social media like emotional support, networking, building a career, earning money to promoting business. It is a great platform for Sharing knowledge. It has a great impact on health too. Its data can be used to analyse customer behaviour and shifting of trends. Below are some of the links which we studied as a part of secondary research to gain insights on social media: https://www.theweek.co.uk/checked-out/90557/is-social-media-bad-for-your-mental-health https://www.theguardian.com/books/2018/may/30/ten-arguments-deleting-your-social-mediaaccounts-right-now-jaron-lanier https://www.researchgate.net/publication/323903323_A_Study_on_Positive_and_Negative_E ffects_of_Social_Media_on_Society https://www.simplilearn.com/real-impact-social-media-article http://www.bbc.com/future/story/20180104-is-social-media-bad-for-you-the-evidence-andthe-unknowns https://www.independent.co.uk/life-style/health-and-families/social-media-mental-healthnegative-effects-depression-anxiety-addiction-memory-a8307196.html

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RMD GROUP PROJECT

PROBLEM DEFINITIONS Management Decision Problem How to increase the loyalty of social media company? Marketing Research Problem To understand the factors that influences the behaviour of customers towards Facebook.

APPROACH Model for the problem The model that we have used to identify various aspects of Social media is Verbal Model. First the sample people would be asked about the awareness or level of activity on social media followed by their usage pattern and reasons that affect the level of activity. This would help us in understanding various factors related to social media usage and what decisions can be taken in future to increase loyalty. Research Questions 1. What factors are affecting (motivations) the usage of Facebook by consumers in the target segment? 2. What are the different segments of customers based on Facebook usage? 3. What differentiates a heavy user of Facebook from an infrequent (light) user? 4. What are some of the major issues or concerns consumers have/ have been facing with respect to FB? 5. What determines the likelihood of quitting FB by the consumers? 6. What can enhance the FB experience of the people using it?

RESEARCH DESIGN Research Methodology: We conducted exploratory research by organising FGD and personal interviews to frame a survey questionnaire. Analysis of FGD & Personal Interviews: The analysis is based on some of the data we tried to extrapolate from our secondary research. We conducted three focused group discussions (each having 6 to 8 members each), and one in-depth interview. The age group we targeted was between 19 to 27, the reason being convenience. There are some of our findings: 

The most popular social media platforms are: Facebook, WhatsApp, Instagram, snapchat, LinkedIn, Hike, Twitter. While Facebook is one of the most frequently used social media network, Instagram, WhatsApp and LinkedIn have also gained popularity.

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RMD GROUP PROJECT 

Some of the reasons people are using Facebook are: it helps to stay connected to people regularly which would have otherwise been impossible due to factors like distance, time etc. On the other hand, people can also build new virtual connections — features like photo editing, video uploading. Live streaming is also attracting people a lot. Another factor which came up during our FGD is news feed provided by this platform. Most people do not get time to turn the pages of the newspaper. They prefer to skip it when they are already getting the content while browsing. Some people just browse idly to pass their time or because of a habit grew over a long time.

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The reason why other platforms are gaining popularity is: Instagram provides people with features which allow more customization in terms of photo or video uploading. Also, it is a user-friendly medium. WhatsApp is a platform where people can upload their status and send a personalized message. LinkedIn is mainly preferred by people to increase their networking in the professional world.

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Some of the complaints which came against social media are: they are distracting. Some of the posts are extremely irrelevant and annoying. Unnecessary photo tags and gaming notifications are not acceptable. Data privacy is also a major concern for people. There is a general apprehension about issues like fake profiles, unknown friend requests which raise the question of security. These complaints are also the reasons why some people are not that frequent on Facebook or in extreme cases deactivating their profiles. Another issue that came up is the psychological aspect of these platforms. The posts which the users see sometimes do not align to their moods at that particular point of time which is quite disturbing to the users.

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Some of the suggestions people gave us are: need for a dislike button (a thumbs down as in YouTube) and more emojis in likes and comment sections, filters to eliminate fake contents, game requests, unnecessary tags, single applications for all purposes – chatting, video, posts etc., profile viewer notification and AI enabled privacy policies.

Data Collection Technique: The data collection technique that we used for exploratory research was FGD and In-depth interview. We conducted FGD in IIM Nagpur and VNIT campus. We asked research questions to the students and recorded their responses. Sampling Plan: The sampling plan that we had to conduct FGD was by taking different demographic people of different age group. We also tried to create diversity in the sample according to their work

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RMD GROUP PROJECT experience background. We had around 6-8 people in each FGDs. This sampling was mostly non-probabilistic and on the basis of convenience sampling and judgemental sampling. Data Analysis Plan: For the various Research questions we have decided to conduct different data analysis as follows: 1. What factors are affecting (motivations) the usage of Facebook by consumers in the target segment?  Factor Analysis 2. What are the different segments of customers based on Facebook usage?  Cluster Analysis 3. What differentiates a heavy user of Facebook from an infrequent (light) user?  Discriminant Analysis 4. What are some of the major issues or concerns consumers have/ have been facing with respect to FB?  ANOVA 5. What determines the likelihood of quitting FB by the consumers?  Regression 6. What can enhance the FB experience of the people using it?  ANOVA

DATA ANALYSIS Survey Questionnaire as per Exhibit 7 was floated and the analysis of the 165 responses are shown below. RQ1: Factors Are Affecting (Motivation) The Usage Of Facebook We have tried to check the number of factors in which the purpose of using Facebook can be classified. The various reasons identified to use Facebook were to be in touch with friends, to check news feed and trends, to share photos and stories, business purpose, education purpose and to meet new people. Analysis Method: 1. Factor Analysis of various reasons to use Facebook given in Q12. Analysis: 1. From Table 1.1 (Exhibit 1), the KMO test result shows that Kaiser-Meyer-Olkin Measure of Sampling Adequacy is greater than 0.5 and Bartlett Sphericity Test is significant so we can accept the result of Factor Analysis. 2. From Table 1.2 (Exhibit 1), the total variance of 67% is explained by two factors. 3. From Table 1.3 (Exhibit 1), in Scree Plot we can see that the slope of the curve for first two points is steeper than others. 4. From Table 1.4 (Exhibit 1), the Rotated Component Matrix shows Q12a, Q12b, Q12c and Q12f fall in one kind of factor and Q12d and Q12e fall under another factor. The first factor can be named as socializing factor as it is related to interacting with

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RMD GROUP PROJECT people and second one can be named as work factor as it is related to education and business. RQ2: Segmentation Of Customers Based On Facebook Usage We have tried to cluster the respondents in different segments based on their response to the purpose of using Facebook. Analysis Method: 1. Cluster Analysis of various reasons to use Facebook given in Q12. Analysis: 1. From Table 2.1, the hierarchical clustering shows that there are majorly two clusters. 2. From Table 2.2, the non-hierarchical final cluster shows that two types of Profiles are there: a. Social Media Enthusiast: They use FB to connect with people and want to know the trends and news to keep themselves up to date for learning purpose. b. Reserved Personality: They usually don’t find the features of FB very useful and do not consider FB as a platform to connect with people or use it for education or business purpose. 3. From Table 2.3, the distance between final cluster centers is 3.527. RQ3: Differentiating Factors For Heavy And Light Facebook Users We have tried to analyze various features of Facebook and understand the satisfaction level of respondents with respect to those features. Then we have grouped these features into different factors and then we have tried to understand if using these factors the respondents could be discriminated into Heavy or Light users or not. Analysis Method: 1. Factor Analysis of satisfaction level of various parameters of FB based on its features – Q13 2. Discriminant Analysis of time spend on social media platform in a day to various features of FB to understand the significance of features of FB Analysis: 1. From Table 3.1(Exhibit 3), Factor Analysis of satisfaction level of various parameters of FB based on its features we can see that there are two major types of factors which elaborate the features and they explain 65% of total variance. The two factors can be classified into Socializing features and Engaging features. In Socializing features, Facebook helps the user to interact with other people or engage with the application to do various activities like photo editing. In Engaging features, Facebook helps the user in showing various content like personalising news feed, etc 2. From Table 3.2 Tests of Equality of Group Means in Exhibit 3 we can see that significance value is higher than 0.05. So from the two factors arrived in previous step are not significant enough to discriminate the respondents into Heavy or Light Users. RQ4: Major Issues or Concerns Consumers Faced with Respect to Facebook (FB) We tried to check the satisfaction level of various features like sharing of video content, recommendations, chat feature etc. across different age group and different genders and see whether there is any significant difference between satisfaction level across age and gender.

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RMD GROUP PROJECT Analysis Method:

1. Factor

Analysis of satisfaction level of various parameters of FB based on its features for – Q13. 2. ANOVA of age-wise demography factors (Q1) w.r.t Factors of features of FB (Q13) for social and engagement factors. Also, gender (Q2) w.r.t factors of features of FB (Q13). Analysis: 1. From Table 4.1 (Exhibit 4), the mean of satisfaction level for the people in the age group of more than 30 years is more than age group of less than 30 years for all the features of Facebook i.e. socializing feature and engagement feature. 2. From Table 4.2 (Exhibit 4), the satisfaction level for Socializing feature of FB is not significant for different age group people i.e. the satisfaction level is not different for people below 22 years of age, 22-30 years age and above 30 years of age 3. From Table 4.2 (Exhibit 4), The satisfaction level for Engagement feature of FB is not significant for different age group people i.e. satisfaction level is not different for people below 22 years of age, 22-30 years age and above 30 years of age 4. From Table 4.3 (Exhibit 4), The satisfaction level for all the features of FB is not significant for different gender i.e. satisfaction level is not different for male and female. RQ5: Likelihood of Quitting Facebook by the Consumers We tried to check whether satisfaction level from features of FB and safety of the data of user is the reason for people in deciding whether they are overall satisfied with FB and likely to continue FB in future or not. We included age category as well to check whether the decision varies with age along these factors or not. Analysis Method: 1. Factor Analysis (FA) of satisfaction level of various parameters of FB based on its features for – Q13, and factor analysis of safety level of FB – Q14 2. Regression Analysis of overall satisfaction level (Q15) against satisfaction level from features (Q13 FA) and safety (Q14 FA) along with age as dummy variable (Q1) 3. Regression Analysis for likely to continue FB (Q16) against satisfaction level from features (Q13 FA) and safety (Q14 FA) along with age as dummy variable (Q1) Analysis: 1. From Table 5.1 (Exhibit 5), The value of adjusted R2 is very less (0.32) i.e. 32% of variation in overall satisfaction level is explained by satisfaction level from features and safety level. This means that there are other variables which we did not get in exploratory research which are impacting the overall satisfaction level of people from FB. 2. Also, safety has strong coefficient so it is dominant for people preferring FB. After that comes the engagement factor which motivates people to use FB. Age group is not significant enough to check the satisfaction of people using FB. 3. From Table 5.2 (Exhibit 5), The value of adjusted R 2 is very less (0.273) i.e. 27.3% of variation in likelihood of continuing FB is explained by satisfaction level from features and safety level. This means that there are other variables which we did not

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RMD GROUP PROJECT get in exploratory research which are impacting the decision of people to continue using FB. 4. Also from Table 5.2 (Exhibit 5), Age is dominant factor affecting FB. People with age 22+ are more likely to use FB then less than 22 years if other features got enhanced along with safety. Whether a person is able to socialize or not is not significant in determining whether he will likely to continue using FB. Recommendations of viewing content and safety features are more significant in determining for a person to continue FB or not. 5. From intuition and experience, the other factor might be the monopoly and its long history. People do not have exact substitute of FB right now. Instagram, WhatsApp are substitute of some feature/service which FB is providing but not all service at same place. RQ6: Enhancement of FB experience of the People using it We tried to check the reasons of a person who earlier used social media but has quit now, varies significantly with the age or gender or not. We also tried to check whether the addition and modification of features of FB to get user back varies significantly with age categories and gender or not. Analysis Method: 1. ANOVA of demography (Q1, Q2) w.r.t reasons for quitting FB (Q17) 2. ANOVA of demography (Q1, Q2) w.r.t features they wanted to add on FB to use FB again (Q18). Analysis: 1. From Table 6.1 (Exhibit 6), we can see that none of the variable is significant. This means that the reason for quitting FB does not varies significantly with different age groups 2. From Table 6.2 (Exhibit 6), we can see that none of the variable is significant. This means that the reason for quitting FB does not varies significantly with gender. 3. From Table 6.3 (Exhibit 6), we can see that none of the variable is significant. This means that addition of new features on FB to get user back does not varies significantly with different age groups 4. From Table 6.3 (Exhibit 6), we can see that none of the variable is significant. This means that addition of new features on FB to get user back does not varies significantly with gender. 5. Also, the sample size for the above analysis is very less (17) which is very less likely to deduce any conclusion. If more sample is present, there would have been more ac...