A study by the University of California, Berkeley determined there are educational and economic differences between users of social networking sites. The report claims users of MySpace are more likely to come from families with parents who didn't attend college, and users of the service are more likely to go straight to work out of high school. Facebook is preferred by those who are college educated and define themselves by their extracurricular activities.
Implications - Data-mining is a tool that all modern companies should take advantage of. Exhaustive research into the educations, backgrounds and tendencies of one's customers is not only necessary, but mandatory in order to survive in such a hostile economic environment. Companies willing to invest resources into demographic research will quickly find that the benefits far outweigh the costs.
Socioeconomic Differences
MySpace vs. Facebook
Trend Themes
1. Educational Inequalities - Opportunities for startups to develop social networking platforms that cater to the specific needs of users from diverse educational backgrounds.
2. Digital Divide - Potential for technology companies to bridge the gap between users who have access to different social networking platforms based on their socioeconomic status.
3. Big Data Analysis - Advancements in data-mining tools and techniques create opportunities for companies to better understand their customers and tailor services accordingly.
Industry Implications
1. Social Media - Disruptive innovation opportunities for social media platforms to develop features and functionalities that cater to the educational and socioeconomic differences between users.
2. Market Research - Growing demand for market research services that focus on analyzing the educational and socioeconomic backgrounds of target customers to inform business strategies.
3. Technology - Opportunities for technology companies to develop tools and solutions that bridge the digital divide and provide equal access to social networking platforms for users of different socioeconomic backgrounds.