Analysis of user characteristics regarding social network services in South Korea using the multivariate probit model

• We examine user characteristics affecting the choice of SNSs in South Korea.
• We consider multiple choices by using the multivariate probit model.
• The factors affecting usage decision differ for each SNS.
• Companies should choose SNSs for communication channels depending on their purpose.

Understanding user choices and patterns regarding social network services (SNSs) is crucial for companies wanting to communicate with potential customers through this medium. This study suggests an empirical model that analyzes the effects of user characteristics, such as the main objectives, SNS and internet usage patterns, and socioeconomic background, on the choice of SNSs and their usage. We consider that a user may use multiple SNSs and estimate the consumer utility function with the multivariate probit model among four representative SNSs: Cyworld, Twitter, Facebook, and Me2day. The empirical analysis shows that user characteristics differ in terms of SNS and internet access times, devices generally used to access the SNS(s), main objectives of using the SNS(s), installation of SNS application(s) on smartphones, most frequently used portal site, and socioeconomic factors. We conclude that companies can utilize different SNSs as their communication channel with potential consumers, depending on their underlying purpose. For instance, companies that want to conduct target marketing may use Facebook, while those wanting to disseminate product-related information quickly are better off using Twitter. In addition, we find differences in the synergetic effect between portal services and SNSs for companies providing both services simultaneously.