The Direct and Indirect Effect of Exchange to Build Customer Loyalty in Social Network Sites.

The Internet has enabled people to connect to each other, regardless of time and space. This lead to a new phenomena, known as social networking through social network sites such Facebook, and Friendster. In social network sites members find new kinds of exchange, which is information exchange. Membership in many social network sites are free, which means that everyone is free to join or leave it. In that case social network providers must ensure that members keep using their site. Exchange has been known as subject matter in marketing. Exchange will lead to customer loyalty through value creation. This paper will show that exchange has direct impact to loyalty. The community based theory has been shown that if community members keep exchange activity, they will loyal to the community. The author will focus on friendship based communities such as Facebook.