The Influence of Facebook Friends on Consumers’ Purchase Decisions

Abstract

Social network sites (SNSs), such as Facebook, are one of the fastest-growing types of websites on the Internet. They have attracted millions of Internet users around the world. Social network sites provide a fast and an easy way for users to exchange information and share experiences, which has enabled them to serve their users in other ways beyond traditional social purposes. These kinds of sites have recently received significant attention from researchers who have started to question the impact that these sites may have on people’s daily lives. This study examines the extent to which consumers use Facebook (currently the most well-known social network site) as an information source to obtain product recommendations from Facebook friends, and the consequent impact of these recommendations on their purchase decisions. The factors that influence consumers to obtain product recommendations from this source are also investigated. To answer the research questions a web-based survey was developed to gather data from a sample of undergraduate students at the University of Otago (n = 411). The survey was designed to collect data about participants’ general uses of Facebook and their uses of Facebook as an information source to obtain product recommendations. The data obtained were analysed using Pearson correlation and multiple regression analysis. The study findings showed that a considerable number of participants usually used Facebook to obtain product recommendations from Facebook friends before they purchased products (about 35%; n = 139). Approximately 85% (n = 118) of those participants purchased products based on these recommendations. The study found that there was a strong positive correlation between seeking product recommendations from Facebook friends and consumers’ purchase decisions based on these recommendations. Multiple regression analyses showed that consumers’ purchase decisions were moderately influenced by product recommendations obtained from Facebook friends. Also, the analysis results indicated that perceived usefulness of product recommendations and perceived ability of the recommenders on Facebook moderately influenced consumers to use Facebook as a product recommendations source.