HOW TRUST AND PERCEIVED USEFULNESS IMPACT ON SOCIAL MEDIA

DEPARTMENT OF BUSINESS ADMINISTRATION

FALL SEMESTER 2018

THURSDAY CLASS 3.00 TO 6.00

DATE OF SUBMISSION: 6H DEC,18

SUBMITTED BY:

MUHAMMAD HAMZA ALAM (5801)

HAMZA SHARIF (6580)

TATHEER FATIMA (6589)

HAMZA MUNEER (5775)

MUHAMMAD NAJAM (8298)

SUBMITTED TO: MS NIDA SHAH

ACKNOWLEDGMENT

We are very thankful to Ms. NIDA SHAH for teaching us research method and skill. Her

adaptable knowledge in writing research field and unique teaching of style has developed our

knowledge and has cleared many concepts of research. We are also very thanks to the helpers

and advisors who directly supported us with their assistance and knowledge to compose our

report and accomplish broader vision and visualize things in research method and skill. The

success and outcome of this project required a lot of direction and support of group members and

we are extremely lucky to have got this all along the completion of my project. All that we have

done is only due to such direction and assistance and we would not forget to thanks them all.
 CONTEXT
 Abstract ……………………………………………………………………………
 CHAPTER 1 Introduction……………………………………………………….
 Background of the study ……………………………………………………………
 Problem statement…………………………………………………………………
 Research objectives………………………………………………………………..
 Research questions ……………………………………………………………….
 Contributions of the study…………………………………………………………
 Limitations and delimitations……………………………………………………
 Significance of the study
 Organization of the study……………………………………………………………

 CHAPTER2 Literature Review …………………………………………………

 Theoretical background……………………………………………………………
 Hypothesis…………………………………………………………………………
 Conceptual framework …………………………………………………………….
 Empirical studies…………………………………………………………………………

 CHAPTER 3 Research Methodology…………………………………………..

 Research purpose…………………………………………………………………..
 Research approach……………………………………………………………
 Research design…………………………………………………………………
 Sampling technique………………………………………………………………
 Target population………………………………………………………………
 Sample size……………………………………………………………………..
 Statistical technique………………………………………………………………
 Questionnaire…………………………………………………………………….
 Ethical consideration …………………………………………………………..
 CHAPTER 4 data analysis……………………………………………………
 Reliability analysis ……………………………………………………………….
 Respondents profile ……………………………………………………………..
 Factor analysis …………………………………………………………………….
 Regression table …………………………………………………………………….
 Discussion …………………………………………………………………………..

 CHAPTER 5 CONCLUSION……………………………………………………

 Conclusion …………………………………………………………………………..

 Managerial Implications …………………………………………………………….

 Future Recommendation…………………………………………………………….

 References …………………………………………………………………………..
 ABSTRACT

Research has been conducted on activity on social media related to their personality. As

measured by the standard Technological acceptance model. Our data consist by the questionnaire

and sample size is 50. We examine correlation between users TRUST, PERCEIVED

USEFULNES and SOCIAL MEDIA USAGE. Our results show significant relationship between

TRUST and PERCEIVED USEFULNESS on SOCIAL MEDIA USAGE. Furthermore, a

discussion of these findings, limitations of the study and future research direction are provided.

Keywords: social media, trust, perceived usefulness

 CHAPTER 1: INTRODUCTION

1.1 BACKGROUN OF THE STUDY:

Social media have provided new opportunity to consumers to engage in social interaction on the

internet. Consumers use social media, such as online communities, to generate content and to

network with other users. The subject area of social media can also identify the advantages to be

gained by business concern.

As far as, it’s unquestionable that technological advancements of the last 20 years has improved

our standard of living, and it has integrated the internet into our daily life. Nowadays, almost

anyone who has access to the World Wide Web has a social media sites. Social accounts on social

networking sites enthusiasm is particularly apparent among young social media users and it may

change the way of communication between individuals and how they connect with one another

(Ryan & Xenos, 2011).

The emergence of social media has dramatically influenced marketing practice. The conventional

well established marketing practices are not highly influential anymore and in many cases can

backfire on the firm Habibi, M. R., Laroche, M., & RichArd, M.-O. (2014). Social media has

deeply changed interpersonal communication. Social media is a tool offering real time text

transmission over the Internet. In the past few years, Social media has gained popularity as a means

of effective and efficient communication. Social media is particularly attractive to younger

generations because it permits users to instantly obtain and share information with a list of their
Online, Che Hui Lien &Yang Cao. (2014). Therefore, there is an ever increasing need for updating

the understandings of social media and further which suits the imperatives of marketing in social

media environments, Habibi, M. R., Laroche, M., & RichArd, M.-O. (2014).

Social media offers different values to organizations, such as enhanced brand popularity,

facilitating word of mouth communication, increasing sales, sharing information in a business

concern and generating social support for consumers . In addition, the networking of individuals

through social media provides shared values, leading to a positive impact on

Trust ,Hajli (2014).

Trust is a keystone in increasing e-commerce. In a B2C relationship, trust in the e-vendor is

significant in evaluating risk in the transaction (McCole et al. 2010).

1.2 PROBLEM SATEMENT:

The study examines how social media – namely online forums, communities, ratings and reviews

can influence trust in e-commerce. Second, it looks at the relationship between trust and intention

to buy. Third, this research examines the relationship between trust and perceived usefulness (PU)

of a site on intention to buy. In conclusion, it examines the direct and indirect influence of social

media on trust and intention to buy.

1.3 RESEARCH OBJECTIVE:

The main objective of this paper is to focus the role of social factors on trust, which can

influence an individual’s intention to buy. An understanding of this issue can aid in identifying

factors that establish trust and social commerce intention through social networking sites.
1.4 RESEARCH QUESTION:

Our study aims to answer the following research question.

 How much trust can enhance the usage of social media

 What user perceived about social media used for e-commerce.

 What perceived usefulness and trust affect the user’s intention to buy.

 Which factor(trust and perceived usefulness) is create more influence to use social media

1.5 SIGNIFICANCE:

This research explores the usefulness of social media for social media users, Now a days social

media play an essential role in the life of peoples. Many of the people do businesses through it

and earning lots of money on daily basis. The advertising through social media has reached the

business world sharing information about marketing would be an easy way to communicate. It

also helps people to post idea through social media. We believe that this study would have a

contribution in the field of marketing and advertising through giving information about the

outcomes of social media for promotion. It provides lots of benefits to the business men and help

them to make a successful business.it also increase the trust of users to buy more from social

sites and then they get more benefits from social sites in term of saving the travel expense etc.

1.5 LIMITATIONS AND DELIMITATIONS:

There are some limitations in this research that many resources were not available for the

research as our study is limited only to the students of Iqra University who are interested in using

social media, so we gathered 50 respondents but if there was more time , so more variables
should be measured and collect data from others whom we not focus in our study so the result

would be more accurate.

The research was limited to see the impact of trust and perceived usefulness on social media

usage. The same research can be taken with the other independent variables to find out its

influence on social media usage.

1.6 ORGANIZATION OF THE STUDY:

The paper is organized as follows. First, a literature review is provided to identify the issues and

gaps in the current literature that have driven this study. The next section provides the research

model and hypotheses. The paper continues with research methodology and the structural model.

Finally, theoretical and managerial implications for the study are presented, along with

limitations, future research directions and conclusions.

CHAPTER2: Literature Review

2.1 THEORETICAL FRAME WORK

The hypothesis that I will utilize is Social Media and Trust and it was utilized to ponder the key

ideas of Social Media in connection with trust with its use (Peter Håkansson, 2015). This study

stressed a positive connection between social media and trust. As connected to my investigation,

this hypothesis holds that I would expect social media to impact or clarify the needy factors; trust

and perceived usefulness in light of the fact that perceived usefulness is characterized here as

"how much a man trusts that utilizing a specific framework would improve his utility." This
pursues from the meaning of the word valuable: "equipped for being utilized favorably." (Pfeffer,

1982; Schein, 1980; Vroom, 1964). A framework high in perceived usefulness, thusly, is one for

which a client puts stock in the presence of a positive utilize execution relationship. The job of

trust has for quite some time been recognized among market analysts and political researchers. It

is frequently contended that large amounts of trust among individuals help advance

democratization, monetary action, well-performing organizations and low dimensions of

viciousness. Social media has been distinguished as a noteworthy vehicle in encouraging social

associations anyway the profundity and criticalness of these associations with the making of trust

has not been very much created. (Dwindle Håkansson, 2015) Social media has been

distinguished as a huge vehicle in cultivating social associations that keep up or grow existing

social systems (Ellison et al., 2007; Joinson, 2008).

2.2 CONCEPTUAL FRAMEWORK:

TRUST

SOCIAL
MEDIA USERS
PERCEIVED
USEFULNESS
2.3 Empirical Studies:

Michel Laroche, Mohammad Reza Habibi, Marie-Odile Richard, Ramesh Sankaranarayanan

(2014) Where social media is dependent variable and trust is independent variable. A survey

based empirical study with 441 respondents was conducted. The results show the significant

relation between variable. In the conclude researcher want to say that it is important to

understand what type of individual’s use social network for relationship maintenance and trust.

M Nick Hajli (2014) Examine that the link between social media and perceived usefulness.

Perceived usefulness was used as independent variable and social media was as dependent

variable. This data collected from a total of 500 emails and 300 paper questionnaires. The results

shows that the perceived usefulness has an significant relationship with social media. In conclude

social media satisfies its user’s in different ways depending on their individuals characteristics.

Mohammad Reza Habibi , Michel Laroche a, Marie-Odile Richard (2014) Where social media is

dependent variable and trust is independent variable. Further the data was collect through

unbiased, likert based questionnaire from 664 respondents respectively. Results shows the

relation of independent variables and dependent variable is significant. However, to be more

precise, future research should focus on a few specific brand communities and demonstrate the

existence of community markers

Anita Whiting, David Williams (2013). Where usefulness was used as independent variable and

social media was as dependent variable. This study use’s data of undergraduate and graduate in

total 219 undergraduate student participated and 143 voluntarily participated. Thus result showed
usefulness has an insignificant relationship with social media. They concluded that social media

has become an important occurrence to scholors and practitioners.

Hypothesis:

H1. There is a significant impact of the level trust on the level of social media usage.

H2. There is a significant relationship between trust and perceived usefulness

CHAPTER 3: RESEARCH METHODOLOGY

3.1 RESEARCH PURPOSE:

Explanatory research is used in this report .There is the significant relationship between Trust and
perceived usefulness on usage of social media both independent variable were already tested in
different models. Both the variables trust and perceived usefulness have significant impact on
usage of social media.

3.2 RESEARCH APPROACH:

It is a survey based research as researchers collected data using questionnaire converted it into

numerical form drew conclusions from results. It is a quantitative research conducted by

researchers.
3.3 RESEARCH DESIGN:

This research is based on descriptive research researcher collected data through questionnaire from

survey and used correlation research to determine the nature of relation between dependent and

independent variable.

3.4 SAPMLING TECHNIQUES:

Researchers choose non-probabilistic sampling technique to collect data as it is fast, inexpensive

and easy. Researcher choose convenience while collecting data all the individuals from population

were not selected for sample.

3.5 TARGET POPULATION:

In this research male and female students who use social media are the target population in order

to identify the relation between dependent and independent variable.

3.6 SAMPLE SIZE:

In this Research sample size of 50 respondents are selected from the target population. The results

are based on response of selected 50 respondents.

3.7 STATISTICAL TECHNIQUE:

In this research all the data collected through questionnaires are converted into numerical form

through SPSS as it accept the numerical value.

3.8 QUESTIONNAIRE:

In this research the framework focus on information based on following dimensions trust and

perceived usefulness. It is measured by using likert scale questionnaire whereas the most vital

instrument is Google form. All the questions were closed ended.

3.9 ETHICAL CONSIDERATION:

In this research, researcher will maintain confidentiality of the work, its authencity and doesn’t

intend to use anyone’s said statements in our names and not used collected data for a wrong

purpose.

CHAPTER 4 DATA ANALYSIS:

4.1 FREQUENCY ANALYSIS:

Demographic profiles are presented in Table 4.2. As seen from demographic characteristics, In

terms of gender the 34.0% of respondents were male, while 66.0% were female hence equally

distributed. The majority of the respondents were graduates (50.0%) whereas, 38.0% were

undergraduates, 10% were postgraduate and others were 2.0 %. According to FOS, the study

shows that 34% respondents were business students, 6.0% were of media students, whereas 8.0%

were falling in BSCS studies, and rest of the 52% respondent falling in others. The majority of

respondents were use the social media more than 2 hour in a day (74%), where as 22% use 1 hour

to 2 hour In a day and 4% were use less than 1 hour in a day.

 Gender

Frequency Percent Valid Cumulative

Percent Percent

Male 17 34.0 34.0 34.0

Valid female 33 66.0 66.0 100.0

Total 50 100.0 100.0

Education

Frequency Percent Valid Cumulative

Percent Percent

under graduation 19 38.0 38.0 38.0

graduate 25 50.0 50.0 88.0

Valid post graduate 5 10.0 10.0 98.0

others 1 2.0 2.0 100.0

Total 50 100.0 100.0

Fieldofstudy

Frequency Percent Valid Cumulative

Percent Percent

business 17 34.0 34.0 34.0

media 3 6.0 6.0 40.0

Valid BSCS 4 8.0 8.0 48.0

other 26 52.0 52.0 100.0

Total 50 100.0 100.0

Socailmediausage
 Frequency Percent Valid Cumulative
Percent Percent

less than 1 hour 2 4.0 4.0 4.0

1 hour to 2 hour 11 22.0 22.0 26.0

Valid
more than 2 hour 37 74.0 74.0 100.0

Total 50 100.0 100.0

4.2 RELIABILITY ANALYSIS:

The composite reliability, which should be greater than 0.7, has been applied to test the reliability

of the survey (McLure Wasko &c Faraj 2005).Reliability can be measured by Chronbach’s alpha

established by Lee Chronbach in 1951. The reliability test (Table 2) shows that Chronbach’s alpha

value is significant and the scale used for this study is reflected as reliable.

The first variable social media has 3 items and the value of alpha of these items is 0.745 which is

greater than the alpha’s value its means variable was reliable. In the second variable TRUST have

3 items and the value of alpha is 0.691 and the third variable is perceived usefulness and have also

3 items and the alpha’s value is 0.745. Thus all meets the criteria of 0.7 given by (McLure Wasko

&c Faraj 2005).and ensures the reliability of the data.

SCALE : SINGLE
VARIABLE

Reliability Statistics

Cronbach's N of Items
Alpha

.745 3
 Reliability Statistics

Cronbach's N of Items
Alpha

.691 3

Reliability Statistics

Cronbach's N of Items
Alpha

.745 3

Scale: ALL VARIABLES

Reliability Statistics

Cronbach's N of Items
Alpha

.740 9

Correlation Matrixa

T1 T2 T3 PU1 PU2 PU3 SM1 SM2 SM3

T1 1.000 .657 .373 .329 .265 .242 .122 .358 .052

T2 .657 1.000 .473 .211 .400 .268 .115 .202 -.118

T3 .373 .473 1.000 -.038 .231 .028 .062 .236 .083

PU1 .329 .211 -.038 1.000 .434 .375 .158 .092 .113

Correlation PU2 .265 .400 .231 .434 1.000 .476 .415 .328 .252

PU3 .242 .268 .028 .375 .476 1.000 .249 .271 .235

SM1 .122 .115 .062 .158 .415 .249 1.000 .471 .192

SM2 .358 .202 .236 .092 .328 .271 .471 1.000 .492

SM3 .052 -.118 .083 .113 .252 .235 .192 .492 1.000
a. Determinant = .062
4.3 FACTOR ANALYSIS:

TABLE 4.3

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling .661

Adequacy.
Approx. Chi-Square 125.791

Bartlett's Test of df 36

Sphericity .000
Sig.

Factor analysis is a data decrease technique designed to be a wide range of attributes on a smaller
number of scopes on the basis of their similarities. Bartlett’s test of sphericity, the Kaiser-Meyer-
Olkin degree of sampling adequacy and the value of determinant are tests that can be used to
determine the factorability of the matrix as a whole. KMO value should be more than 0.7 which
tells that enough items are predicted by each factor. Bartlett’s test should have a value below 0.5
to be significant. its tells us about that the variables are correlated highly enough to provide a
reasonable basis for factor analysis. The value of determinant should be under 0.0001 to conduct
the factor analysis. Table 3 shows that KMO, Bartlett’s test and the value of determinant are all
significant and factorability can be assumed.

Rotated Component Matrixa

Component

1 2 3

T1 .768
T2 .849
T3 .780
PU1 .827
PU2 .653
PU3 .711
SM1 .614
SM2 .820
SM3 .782
4.5 REGRESSION TABLE:

TABLE 4.5

Coefficientsa

Model Unstandardized Standardize t Sig. Collinearity Statistics

Coefficients d
Coefficients

B Std. Error Beta Tolerance VIF

(Constant) 2.995 .395 7.581 .000

1
PU .302 .109 .372 2.778 .008 1.000 1.000

a. Dependent Variable: SM

The factors analysis the variables are calculated to run the regression analysis. The result linked

to regression analysis is reported in table 4.5. The result shows that the adjusted R-square has the

value of 0.045 which means the independent variables can predict around 4.5% of the dependent

variable which mean our 2 variables were not enough for this study more variable get to be better

and fit model of this study. The VIF has the value below 10 which mean the multicollinearity

does not exist among the variables.

Model Summaryb

Model R R Square Adjusted R Std. Error of the Durbin-Watson

Square Estimate

1 .374a .140 .103 .68603 1.715

a. Predictors: (Constant), T, PU
b. Dependent Variable: SM
Table represents the model summary used for present study. R2 square value indicates how much

of the dependent variable “SOCIAL MEDIA” can be explained by the independent variables

“TRUST & PERCEIVED USEFULLNESS”.

The result shows that there is a positive and significant relationship between variable perceived

usefulness and trust impact on Social media usage. If independent variable trust increase by

0.332% so the dependent variable social media decrease by 0.332%. and if independent variable

perceived usefulness increase by 0.054% so the dependent variable social media decrease by

.054%. Thus the relation shows the positive impact on social media.

4.6 REGRESSION EQUATION

General Regression Equation

Y= α + β1(X1)+ β2(X2)+ +β3(X3)+ 

 Regression Equation Model
SM= 1.585 + 0.332(PU) + 0.054(T)

DISCUSSION:

The result of regression analysis is reported in table 4.5.

The first hypothesis regarding the Trust on Social media usage shows the significant, and positive

relationship (P < 0.075, β =0.274) thus hypothesis is accepted.

The second hypothesis regarding the perceived usefulness on Social media usage shows significant

and positive relation (P<0.809, β=0.037), hypothesis is accepted.

 CHAPTER 5: CONCLUSION

In this chapter, we’re concluding our research regarding the overall study; we’re discussing some

of the areas regarding Social media users. Finally, we’re given that a good ground for future

researchers on the same aspects related social media users.

5.1 CONCLUSION:-

The main purpose of this research is to consider the effects of Trust and perceived usefulness on

social media. Nowadays social media play a vital role to connect the peoples to each other and its

also facilitate e-commerce facility to the business communities and the consumers easily access

on their desired brand website through social media and buy what they want to buy at their homes

and recommend and give reviews about the product through social sites these interaction help both

business and consumer to

pt about social media users. grow our study is based on technology acceptance model where our

independent and depend variable correlate with each other and the result show that they have a

significant relationship between trust and social media and secondly perceived usefulness create

impact on a trust in this research SPSS is used to evaluate the data and 50 is our sample size this

study give the idea to the future researcher and its very beneficial to those consumers who use the

social media to purchase the product and help the business community used these research for

marketing and advertised the product through social networking sites e-business can be grow if

consumers trust more on social media .

5.2 MANAGERIAL IMPLICATIONS:

This research of our study contains the factors of social media influencing users in university

students. Research has been focused on the previous researches related to social media users and

their effects on trust and perceived usefulness. Then, the existing researches give us an idea of how

certain variables can contribute to our conce

As far as the managerial implications are concerned this study reveals the effects of certain factors

on social media users, based on a theory and explains that there is a positive relationship between

trust and social media users, perceived usefulness also has a positive relationship with social

media. In order to increase a level of trust regarding social media so they can communicate with

their social media friends as much as possible. Furthermore, they can socialize themselves and try

to remove trust and feel free to communicate any other person.

5.3 FUTURE RECOMMENDATIONS:

This study has some short coming the data was collected form small sample size and incorporate

the impact of two variables only on social media. The result of this research could be improve by

increasing the sample size and population size to increase generalizability. Because resources were

unavailable for this research as we were only restricted to gather the data from our university

because it is convenience for us. Future study should consider more value variables to measure the

impact of social media. We were only use SPSS technique for analyzing our data, future

researchers should go for the latest data analyzing software. . The same research can be taken out

with the other independent variables influence on social media usage.

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loyalty. Computers in Human Behavior, 28(5), 1755-1767.

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