How many times have you left a website or app because of the hassle of setting up a login account or because you forgot your username or password for one you had already set up? If you are like the 90 percent of users bothered by having to log in, you probably just leave the site and never return. Social networks are helping with that problem by offering social logins on third-party sites and applications. With more than 1.6 billion monthly active users, 1.44 billion of whom are monthly mobile users, Facebook is the largest social network. The company is using that power to become even more valuable to both users and businesses. Facebook Login allows website visitors and app users to use their Facebook login credentials to log in to other sites and apps instead of establishing a separate login for each one. Google+, Twitter, LinkedIn, and other social networks also offer social login capabilities, but Facebook is the leader, powering more than half of all social logins online and more than 60 percent of mobile logins. This seems to be a winning arrangement for all parties—users conveniently log in to multiple sites with one username and password, third-party sites and apps gain access to Facebook users’ demographic data, and Facebook gathers useful information on users’ behavior to better sell advertising. How is Facebook Login expanding the total demand for social networks?  A major criticism of social logins is consumer privacy. How has Facebook addressed this issue? Do you think it will hurt the company’s competitive advantage in this area?

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
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How many times have you left a website or app because of the hassle of setting up a login account or because you forgot your username or password for one you had already set up? If you are like the 90 percent of users bothered by having to log in, you probably just leave the site and never return. Social networks are helping with that problem by offering social logins on third-party sites and applications. With more than 1.6 billion monthly active users, 1.44 billion of whom are monthly mobile users, Facebook is the largest social network. The company is using that power to become even more valuable to both users and businesses. Facebook Login allows website visitors and app users to use their Facebook login credentials to log in to other sites and apps instead of establishing a separate login for each one. Google+, Twitter, LinkedIn, and other social networks also offer social login capabilities, but Facebook is the leader, powering more than half of all social logins online and more than 60 percent of mobile logins. This seems to be a winning arrangement for all parties—users conveniently log in to multiple sites with one username and password, third-party sites and apps gain access to Facebook users’ demographic data, and Facebook gathers useful information on users’ behavior to better sell advertising.

How is Facebook Login expanding the total demand for social networks? 

A major criticism of social logins is consumer privacy. How has Facebook addressed this issue? Do you think it will hurt the company’s competitive advantage in this area? 

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