SYMBIOSIS INSTITUTE OF INTERNATIONAL BUSINESS

Usage of Facebook and its effect on

consumer productivity and lifestyle

Submitted By
Rohit Hanamsheth - 17020242067
Ronak Gohel - 17020241068
IB 2017-19 (DIV - A)
Project Guide: Dr. Shantanu Prasad
Contents
Introduction .................................................................................................................................................. 3
Literature Review .......................................................................................................................................... 4
Observations: ............................................................................................................................................ 4
APPROACH TO THE PROBLEM................................................................................................................... 4
RESEARCH METHODOLOGY .......................................................................................................................... 5
Type of Research Design ........................................................................................................................... 5
Data Collection .......................................................................................................................................... 5
Scaling Techniques .................................................................................................................................... 5
Questionnaire Development and Pretesting ............................................................................................ 5
Sampling Techniques ................................................................................................................................ 5
Fieldwork................................................................................................................................................... 6
DATA COLLECTION AND ANALYSIS................................................................................................................ 7
STATISTICAL ANALYSIS .............................................................................................................................. 7
THE CHI-SQUARE TEST: ............................................................................................................................. 7
Age/Gender/Occupation vs. Effect of Facebook shutdown. ................................................................ 9
Age/Gender/Occupation vs. Loss of productivity. .............................................................................. 12
THE LOGISTIC REGRESSION: ....................................................................... Error! Bookmark not defined.
DESCRIPTIVE ANALYSIS: .......................................................................................................................... 14
1. Age/ Gender/ Occupation Vs. Use of Facebook.............................................................................. 14
2. Age/ Gender/ Occupation Vs. Frequency of Posts .......................................................................... 15
3. Age/ Gender/ Occupation Vs. Bothered by number of likes ........................................................... 15
4. Age/ Gender/ Occupation Vs. Kind of Information users find on Facebook ................................... 17
5. Age/ Gender/ Occupation Vs. Kind of uploads on Facebook .......................................................... 17
6. Age/ Gender/ Occupation Vs. Facebook necessity .......................................................................... 18
7. Age/ Gender/ Occupation Vs. Loss of Sleep due to Facebook ......................................................... 18
LIMITATIONS AND CAVEATS ....................................................................................................................... 25
CONCLUSION............................................................................................................................................... 25
REFERENCES ................................................................................................................................................ 30
INTRODUCTION

Social media marketing is a term that describe use of social networks, online communities,
blogs, wikis or any other online collaborative media for marketing, sales, public relations and
customer service. Common social media marketing tools include Twitter, blogs, LinkedIn,
Facebook, Flickr and YouTube.

Facebook is the largest social networking site in the world and one of the most widely used.
On June 27th, Mark Zuckerberg announced on Facebook that “Facebook community is now
officially 2 billion people!” So for any business, Facebook should be on top of the list of its social
media marketing.

In social media marketing, businesses often start their efforts by heading in random
direction, and result take a long or are never achieved at all. Many businesses struggle with social
media because they lack a definite plan. They start with an end in mind instead of creating a
strategy and objectives. A company might start a Facebook page, but it is not likely to see result
unless clear understanding of its marketing objectives.

So before starting social media marketing, we need to understand behavior of Facebook

users. How do they use it? For what purpose do they use it? How can our product reach to
maximum users? Through these market research project, we try to find out the answers of above
questions, which can be helpful to make proper social media marketing campaign.
LITERATURE REVIEW

A questionnaire had been prepared and circulated amongst our friends and family, which
included feedback of people from different age groups (16 to 50 years old). A total of 283
individuals took the survey and answered the questions related to their Facebook usage habits. We
laid our basis of the conclusions on 3 demographics: age, gender and occupation.

Observations:
1. There is a significant relationship between genders of the respondent and the frequency of
the usage of Facebook.

2. People between the ages of 16 and 25 use Facebook to pass their time and break the
monotony.

3. There is no relationship between age and how much people are bothered by number of likes
on Facebook, but there is a significant relationship between age and loss of productivity
due to Facebook usage.

4. There is a significant relationship between age/occupation/gender and Facebook shutdown

effect.

5. More than 80% of the people surveyed use Facebook to see posts related to their friends
and on the topics such as economics, sports, Bollywood/Hollywood and political news.

No specific recommendation can be made on the topic as Facebook is a social media

platform. It solely depends on the age, occupation and gender of the user and if they use Facebook
for monetary benefits or not. But it can be recommended for promotional activities carried out by
companies, agencies, forums and even individuals as it is used by a wide range of people all across
the globe.
The objective of this research is to find whether Facebook’s effects on consumers’
productivity or lifestyle. Is Facebook a boon or bane in the current scenario? By carrying out this
research, we have tried to conclude if Facebook is making people lose their productivity or helping
them to enhance their lifestyle or productivity.

APPROACH TO THE PROBLEM

The most important part of our report has been the questionnaire that we prepared to survey
the sample population (Refer to Appendix A: Survey Questions). Based on the answers to these
questions, we ran chi-square tests and descriptive analysis to conclude the findings of our survey.
The findings and observations have been aforementioned in the report.
RESEARCH METHODOLOGY

Type of Research Design

We made use of Descriptive and Correlation design types for the report. People from different age
group were surveyed. We also read multiple case studies to know more about what people thought
of Facebook. Additionally, we personally talked to the Facebook users to know their real time
perception of the “social media phenomena”.

Data Collection

The data for the report has been gathered through questionnaire (survey), case studies and
interviews. We tried to analyses the views of men and women, belonging to different age groups,
and engaged in different occupations, on Facebook through both primary (survey and interviews)
and secondary (case studies) approach.

Scaling Techniques

For Logistic Regression, the data has been changed from Nominal (occupation, gender etc.) to
Numerical Scale. Most of the responses from the questionnaire were in Ordinal scale (very often,
sometimes, rarely etc.) which have been converted to Numerical Scale (Very often=4, rarely=1
etc.).

Questionnaire Development and Pretesting

The purpose of the questionnaire was to collect data with ease from the target respondents.
We tried making it easy to understand, easy to fill and unbiased. The language used is easy and we
tried putting humor in the responses in order to not bore the respondents while filling the survey.
The questionnaire was pretested amongst all the group members and edited multiple times, in order
to make it as feasible for others as possible.

Sampling Techniques

The sampling techniques used is Stratified Random Sampling, where the total target
population has been divided into strata or segments on the basis of variables like age, occupation
and gender.
Fieldwork

We interviewed the sample population, mostly the avid users of Facebook between the ages
of 16 to 25. The people interviewed also filled the questionnaire, which helped us recording their
answers in a graphical form. Rest of the work was done online, like forming survey and reading
case studies.
DATA COLLECTION AND ANALYSIS

STATISTICAL ANALYSIS

Quite a number of statistical tests can be carried out on the survey data that address several
Facebook usage perception-related questions. We have used three statistical analysis techniques
to find out the output of survey data.
These are:
(i) The Chi-Square Test
(ii) Descriptive Analysis

Chi-square test is a non-parametric test. We have used it to analyse the association of different
parameters on the responses, like the association of age with the frequency of usage, or gender vs.
productivity.

As our data is not quantitative but qualitative, we have used Logistic Regression to find out the
relation between the parameters that would define if the Facebook is a boon or a bane and support
this argument.

We tried to associate if there is a dependency between the responses for “Is using Facebook a
waste of time?” to the factors like loss of sleep or loss of productivity.

We have done Descriptive Analysis on the responses that we have gathered. Descriptive statistics
have been used to analyze the inclination of people towards the usage of Facebook.

THE CHI-SQUARE TEST:

We run the chi square on some of the responses to establish the association between the responders
and responses. Following is the illustration for one of the tests:

We tried to establish if there is a relationship between the use of Facebook and the gender of the
responder.
H0: There is no significant relationship between the gender of the respondent and the
frequency of the usage of the Facebook.
H1: There is a significant relationship between genders of the respondent and the frequency
of the usage of the Facebook.

We have taken the level of significance to be 5% and have used SPSS to run the chi-square test.
Following is the frequency table for the responses and the gender of the respondent.

The p-value is 0.978 which is greater than 0.05. Therefore, we accept the null hypothesis and
reject the alternative hypothesis. There is a no significant relationship between gender and the
frequency of the usage.
Similarly, we checked the association of age and occupation on the usage of Facebook.
From the p-value, we can conclude that there is no relationship between the age and the frequency
of usage. Whereas, the occupation plays any important role with the frequency of usage.
Similarly, we ran the chi square test on different responses from respondents:
Age/Gender/Occupation vs. Effect of Facebook shutdown.
 As the p value is less than 0.05 in all the three cases, we state that there is a significant
relationship between the age, gender and occupation to the impact they have if the
Facebook shuts down.
 In the age group 16-21, 13% of the sample have the most effect if Facebook shuts down
and 51% of it have the least effect if Facebook shuts down. Similarly, this could be found
for all the age groups that are 22-25, 26-29 and 30 above.
 According to Gender, 36% of male have the least effect if Facebook shuts down whereas
6% are most affected. In the case of females, 18% have the least effect if Facebook shuts
down and 9% are most affected.
 According to occupation, almost no percentage of homemakers have the least or most
effect if Facebook shuts down. Students who have the least effect if Facebook shuts down
are 32% and the one with the highest effect is 10%. Working professionals account for
22% who have the least effect if Facebook shuts down, and 5% have the most effect.
 
Relation between gender and effect of Facebook shutdown

Relationship between age groups and Facebook shutdown effect

Relation between occupation and Facebook shutdown effect
Age/Gender/Occupation vs. Loss of productivity.
 After running chi square test to check the association between age/gender/occupation to
the loss of productivity of the respondent, we could see that in all the three cases, p value
is less than 0.05, so we rejected the null hypothesis and accepted the alternative one which
states that there is an association between age/gender/occupation to the loss of productivity.

 In the age group 16-21, 18% of the sample have the most effect on productivity and 61%
of it have the least effect on the productivity.

Likewise, this has been found for all the age groups (22-25, 26-29 and 30 & above).
 According to Gender, 34% of male have the least effect on productivity whereas 12% have
their productivity most affected. In the case of females, 27% have the least effect on
productivity and 6% have their productivity the most affected.

 According to occupation, 1% homemakers have the least effect on productivity and almost
no percent has the most effect. Students who have the least effect on productivity are 31%
and the one with the highest effect is 12%. Working professionals account for 28% who
have the least effect on their productivity, and 7% have the most effect

Relation between age groups and loss of productivity

Relation between occupation and loss of productivity
DESCRIPTIVE ANALYSIS:
With Chi-Square and Logistic Regression, we were able to come to a final conclusion. But there
are some interesting facts that have been found through descriptive analysis.
Descriptive statistics are brief descriptive coefficients that summarize a given data set, which can
be either a representation of the entire population or a sample of it. Descriptive statistics are broken
down into measures of central tendency and measures of variability, or spread.
We would now look at each of our questions and find out what descriptive analysis can tell us:
1. Age/ Gender/ Occupation Vs. Use of Facebook

 53% of the Facebook users that we surveyed use it for an entertainment purpose and around
48% use it to get updates from their friends
 According to data based on Age, people falling in the age group 16-25 use Facebook for
entertainment whereas people in the age group 26 and above use Facebook to get updates
from their friends.
 According to data based on Occupation, Students prefer to use Facebook for entertainment
whereas the Working Class normally uses Facebook to get updates from their friends
2. Age/ Gender/ Occupation Vs. Frequency of Posts

 80% of the users have private account while 20% have public
 Around 38% users post photos only when they are good whereas 32% post when the place
is worth mentioning
 Based on the age, around 41% of the users under the age group 26 and above, posts only
when the pic or place is worth mentioning whereas under the age group 22-25, mostly,
around 39% posts pics or status updates rarely or only when the pics are good.
 Based on Occupation, 42% students rarely post on Facebook and 38% working class
believe in posting on Facebook sometimes when it’s worth mentioning.
3. Age/ Gender/ Occupation Vs. Bothered by number of likes
 Out of the ones surveyed, around 58% are not affected by the number of likes they get on
their post or pics whereas 19% are very much affected by the same.
 Out of the ones who are highly affected by the number of likes, 69% are male whereas
occupation and age wise, out of the ones affected, 54% are students and around 50% belong
to the 22-25 age group respectively.
 Out of the ones who are highly affected by the number of likes, 56% are male. Occupation
wise, around 45% belong to the working class who are least affected by the number of likes
4. Age/ Gender/ Occupation Vs. Kind of Information users find on Facebook
 As per the data collected, around 50% users agreed that Facebook helps them with info
related to friends or helps them to stay updated about the latest happenings in their social
circle.

 Around 47% also believe that Facebook helps them to stay updated with the current
happenings in Economics and Politics.
 Close to 40% users believe that Facebook keeps them updated with the latest news in
Bollywood, Hollywood and Tollywood as they feel that as now a day even the industry
stars are all on these social media platforms.

5. Age/ Gender/ Occupation Vs. Kind of uploads on Facebook

 According to the survey, approx. 64% of the people only post photos on Facebook whereas
around 4% people post about their moods on Facebook.
 Around 22% of the people surveyed do not believe in posting pictures on Facebook.
 Approx. same number of users out of the ones who were surveyed, like to share random
posts and boast about the locations they visit
6. Age/ Gender/ Occupation Vs. Facebook necessity
 Around 65% of the people surveyed, use Facebook to get over their boredom. Whereas
around 46% use Facebook to get updates on their friends and family.
 Also, people who use Facebook to get rid of boredom are most likely to fall under 22-25
age category. Lately, Facebook and other social media platforms have become a major pass
time for the youngsters who fall in this age category. Then the age group of 16-21 who are
majorly in their educational phases use Facebook to break the monotony, thus, as source
of entertainment to get rid of their boredom.
 Occupation wise: Students & people who are working mainly use Facebook to get over
boredom. This is the main reason why they click on “f” button very often. While others
like to stay updated about the happening in their friend’s life apart from getting over their
boredom. In some of the cases both holds as they have a check on their friends to get over
their boredom via Facebook.
7. Age/ Gender/ Occupation Vs. Loss of Sleep due to Facebook
 Approx. only 2% of the people surveyed, feel that they lose their sleep because of browsing
on Facebook late in the night. Around 75% of them are male
 72% of the people surveyed agree that they don’t lose their sleep because of Facebook. Out
of which, 42% belong to the working class whereas 56% are students.
 Around 47% out of the people surveyed who believe they don’t lose their sleep because of
Facebook, belong to the age group 22-25.
Component Matrix
Component
1 2 3 4 5 6
Gender .621
Age -.515 -.489
Occupation .519 .488
Frequency of usage .644
Freqency of posts .639
Bothered by number of
-.434 .402
likes
Use FB in social circle .518
is facebook waste of time .401 -.315 -.484
Freqency of changing dp .483
bullied by facebook
loss of sleep due to
.331
facebook
loss of productivity .415 -.330
facebook shutdown effect -.489 .490
Facebook for social cause
Private/public account .647
relying on fb for bday -.432
addicted to facebook .493 .446
Fb for updates from
-.358 -.460
friends
Fb only for checking feed .335
Fb for entertainment -.355 .433 .380
Fb for reading news -.554
Fb for getting over
.501 .404 -.396
boredom
FB to check on friends
-.326 .516 .519
social life
FB due to Lack of real life
-.684
attention
FB due to work demands -.717
Component Matrix
Component
7 8 9 10
Gender
Age
Occupation
Frequency of usage
Freqency of posts
Bothered by number of likes
Use FB in social circle .317
is facebook waste of time .367
Freqency of changing dp .376 -.370
bullied by facebook .393 .595 -.449
loss of sleep due to facebook .349 -.425
loss of productivity .401
facebook shutdown effect
Facebook for social cause -.402
Private/public account
relying on fb for bday .438
addicted to facebook .329
Fb for updates from friends .308 .322
Fb only for checking feed .465 .543
Fb for entertainment
Fb for reading news .346
Fb for getting over boredom
FB to check on friends social life
FB due to Lack of real life attention
FB due to work demands

Extraction Method: Principal Component Analysis.

a. 10 components extracted.
Rotated Component Matrix
Component
1 2 3 4 5 6
Gender .761
Age -.803
Occupation .755
Frequency of usage -.423 .365 -.421
Frequency of posts .693
Bothered by number of
.676
likes
Use FB in social circle
is facebook waste of time -.364 .314
Frequency of changing dp .761
bullied by facebook
loss of sleep due to
.590
facebook
loss of productivity
facebook shutdown effect .512 -.315 .413
Facebook for social cause -.333
Private/public account .769
relying on fb for bday .511
addicted to facebook .418 -.343
Fb for updates from
-.347 .477
friends
Fb only for checking feed
Fb for entertainment .353 .435
Fb for reading news .828
Fb for getting over
-.532
boredom
FB to check on friends
social life
FB due to Lack of real life
.783
attention
FB due to work demands .856
Rotated Component Matrix
Component
7 8 9 10
Gender
Age
Occupation
Frequency of usage
Freqency of posts
Bothered by number of likes
Use FB in social circle -.431 .304
is facebook waste of time .604
Freqency of changing dp
bullied by facebook .840
loss of sleep due to facebook
loss of productivity .809
facebook shutdown effect
Facebook for social cause .386
Private/public account
relying on fb for bday .352
addicted to facebook -.459
Fb for updates from friends .514
Fb only for checking feed .847
Fb for entertainment -.358
Fb for reading news
Fb for getting over boredom -.541
FB to check on friends social life .835
FB due to Lack of real life attention
FB due to work demands

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 22 iterations.
 Component Transformation Matrix

Component 1 2 3 4 5 6 7

1 -.562 .652 -.112 .116 .162 -.373 -.134

2 .459 .007 -.250 .123 .574 -.176 .365

3 .065 -.016 -.838 .088 .042 .234 -.434

4 .188 .085 .329 .826 .045 .167 -.334

5 .150 -.092 -.174 .354 -.243 -.600 .221

6 .042 .165 .212 -.141 .673 .139 -.095

7 .423 .264 .149 -.270 -.217 -.020 -.375

8 -.167 .177 -.061 .138 -.092 .389 .517

9 .157 .447 -.117 .103 -.224 .420 .282

10 -.422 -.481 -.014 .185 .150 .199 -.048

Component Transformation Matrix

Component 8 9 10

1 -.153 .159 .030

2 -.395 .247 .042

3 .118 -.128 .100

4 -.108 -.105 .057

5 .578 .101 .037

6 .645 -.090 -.004

7 .053 .552 .400

8 .101 -.054 .691

9 .156 .277 -.587

10 .085 .695 -.031

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.
LIMITATIONS AND CAVEATS
 The data collected from the survey was Nominal. It had to be converted to Ordinal, in order
to run regression and chi-square tests, which consumed most of our time.
 The population size was huge and we couldn’t reach all the people in the population. For
example, most of the responses are from students and working people; we couldn’t get
plenty of data from homemakers and unemployed people.
 Certain questions had number of answers which were difficult to evaluate.

CONCLUSION

We are indecisive on whether Facebook is a boon or a bane. While, it is a source of entertainment

and a medium to connect with people for some, it also leads to loss of productivity for others. The
data has been sourced on the basis of age, gender and occupation and the results have been different
for each demographics. It can be a boon if it is used for productive purposes like connecting with
friends, raising funds, reading news etc. But at the same time, it can prove to be a bane if misused.
REFERENCES

http://www.discoverforce5.com/blog/post/10-quick-facts-you-should-know-about-consumer-
behavior-facebook
https://www.forbes.com/sites/kathleenchaykowski/2016/09/27/sheryl-sandberg-facebooks-4-
million-advertisers-are-proof-of-the-power-of-mobile/#18708ab91f17
https://www.marketingsherpa.com/article/chart/demographics-why-customer-follow-brands-
social-media
https://www.getambassador.com/blog/social-customer-service-infographic
https://www.facebook.com/sheryl/posts/10156250899685177
http://tubularinsights.com/top-facebook-video-creators/
https://adespresso.com/blog/facebook-dynamic-product-ads/
https://www.dreamgrow.com/top-15-most-popular-social-networking-sites/
http://www.jeffbullas.com/5-reasons-why-facebook-drives-consumer-buying-infographic/

Thank you