Payment willingness for VIP subscription in social networking sites

In their brief history, social networking sites (SNSs) have enjoyed rapid membership growth. However, most users of SNSs do not engage in targeted commercial behavior. VIP subscriptions are a reliable source of revenue for social networks, but questions remain regarding exactly what factors influence users to subscribe for VIP services. This study examines the extent to which members’' interactions, preference for privilege, switching costs and perceived value influence willingness to pay for VIP subscriptions. The data are collected from one popular SNS in China. The empirical results from a two-element logistic regression analysis indicate that switching costs have a significant influence on users' willingness to pay for VIP subscriptions; however, member interactivity appears to have no important role with respect to willingness to pay for VIP services on SNSs. Members with stronger preferences for commercial value-added privileges with a relationship-oriented value perception are more willing to pay for VIP subscriptions.