Advertising Value Constructs’ Implication on Purchase Intention: Social Media Advertising

Authors

  • Edirisinghe Arachchige Chaminda Prasanna KARUNARATHNE Wayamba University of Sri Lanka
  • Weerasinge Asha THILINI Wayamba University of Sri Lanka

Abstract

Social media advertising has become one of the most popular and profitable advertising modes in today’s business world. Thereby, many firms have adopted digital marketing strategies to promote their business and to increase customer purchases. This study was conducted to examine how identified influential factors, namely, Informativeness, Entertainment, and Irritability, affect social media advertising value and find the ultimate implication on customer’s purchase intention. An online questionnaire was developed and used as a survey instrument to gather the required information from social media users. Relevant research hypotheses were developed and tested using structured equation modelling to identify targeted relationships. The analysis results indicate a more substantial implication of advertising value on customer purchase intention. It implies customers’ positive perception of the advertisement; nevertheless, irritability generates a negative effect. Though the informative components and entertainment acts of promotion had a positive impact on Advertising Value, a more substantial implication was recognized through customers’ evaluation of the entertainment content of those advertisements. Further, the more significant importance of advertising value on brand image and purchase intention was identified through the analysis. The study contributes by identifying needed actions in advertised content to gain customers’ attention through social media advertisements. Further, the model presented confirms the requirement of an effective social media advertising strategy to gain more significant benefit to the firm by enhancing advertising value. Firms need to express a more profound concern about advertised content and repetition frequency since the irritating perception of customers can weaken the advertising value of social media advertisements.

References

Ahmed, K. (2020). Effect of design elements for social media ads on consumer’s purchasing decision. Global Media Journal, 18(34), 1-12. https://www.globalmediajournal.com/open-access/effect-of-design-elements-for-social-media-ads-on-consumers-purchasing-decision.php?aid=87915

Alalwan, A. (2018). Investigating the impact of social media advertising features on customer purchase intention. International Journal of Information Management, 42(1), 65-77. https://doi.org/10.1016/j.ijinfomgt.2018.06.001

Alfeel, E., & Ansari, Z. A. (2019). The impact of social media marketing on consumer purchase: consumer survey in Saudi Arabia. Journal of Marketing and Consumer Research, 56(1), 13-22. https://doi.org/10.7176/JMCR/56-03

Arli, D. (2017). Does social media matter? Investigating the effect of social media features on consumer attitudes. Journal of Promotion Management, 23(4), 521-539. https://doi.org/10.1080/10496491.2017.1297974

Ashaduzzaman, M., & Rahman, S. M. (2015). Impact of television advertisements on buying pattern of women in Dhaka City. European Journal of Business and Management, 3(3), 16-28. https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.1012.1734 &rep=rep1&type=pdf

Astini, R., & Panigoro, E. (2020). Consumer emotion changes on online advertisement case (experimental research on online advertisement that used online behaviour advertising approach). International Journal of Innovation, Creativity and Change, 13(12), 636-648.

Azeem, A., & Haq, Z. (2012). Perception towards internet advertising: a study with reference to three different demographic groups. Global Business and Management Research: An International Journal, 4(1), 28-45. http://www.gbmrjournal.com/pdf/Azeem%20and%20Haq,%202012.pdf

Aziza, D. N., & Astuti, R. D. (2018). Evaluating the effect of YouTube advertising towards young customers’ purchase intention. Advances in Economics, Business and Management Research, 72(12), 93-98. https://doi.org/10.2991/icbmr-18.2019.16

Balakrishnan, B. K., Dahnil, M. I., & Yi, W. J. (2014). The impact of social media marketing medium toward purchase intention and brand loyalty among generation Y. Procedia-Social and Behavioral Sciences, 148, 177-185. https://doi.org/10.1016/j.sbspro.2014.07.032

Belch, G. E., & Belch, M. A. (2004). Advertising and promotion: An integrated marketing communications perspective. McGraw-Hill.

Bezjian-Avery, A., Calder, B., & Iacobucci, D. (1998). New media interactive advertising vs. traditional advertising. Journal of Advertising Research, 38(4), 23–32. https://people.utm.my/thoo/wp-content/blogs.dir/1795/files/2016/03/New-Media-Interactive-Advertising-Vs-Traditional-Advertising.pdf

Brahim, S. (2016). The impact of online advertising on tunisian consumers’ purchase intention. Journal of Marketing Research & Case Studies, 2016(2016), 1-13. https://doi.org/10.5171/2016.357783

Brackett, L. K., & Carr, B. N. (2001). Cyberspace advertising vs. other media: consumer vs. mature student attitudes. Journal of Advertising Research, 41(5), 23-32. https://doi.org/10.2501/JAR-41-5-23-32

Central Bank of Sri Lanka. (2020, August). Sri Lanka Socio Economic Data 2020, (Central Bank of Sri Lanka Volume XLIII). Central Bank of Sri Lanka, Statistics Department. https://www.cbsl.gov.lk

Dehghani, M. (2013). The role of social media on advertising: a research on effectiveness of facebook advertising on enhancing brand image (Doctoral dissertation, Eastern Mediterranean University (EMU)-Doğu Akdeniz Üniversitesi (DAÜ)). http://i-rep.emu.edu.tr:8080/jspui/bitstream/11129/1583/1/Dehghani.pdf

Deshpande, I. (2020, August 25). What is social media advertising? Definition, cost, best practices, benefits and examples. Social Media Marketing, article 1. https://www.toolbox.com/marketing/social-media/articles/what-is-social-media-advertising/

Dixon, S. (2022, January 28). Number of active advertisers on Facebook 2016-2020. Statista. https://www.statista.com/statistics/778191/active-facebook-advertisers/

Ducoffe, R. H. (1995). How consumers assess the value of advertising. Journal of Current Issues and Research in Advertising, 17(1), 1-18. https://doi.org/10.1080/10641734.1995.10505022

Duffett, R. G. (2015). Facebook advertising’s influence on intention-to-purchase and purchase amongst millennials. Internet Research, 25(4), 498-526. https://doi.org/10.1108/IntR-01-2014-0020

Eighmey, J., & McCord, L. (1998). Adding value in the information age: uses and gratifications of sites on the World Wide Web. Journal of Business Research, 41(3), 187-194. https://doi.org/10.1016/S0148-2963(97)00061-1

Economic Times. (2020). Definition of 'Advertising', article 2. https://m.economictimes.com/definition/ advertising/amp:m.economictimes.com

Firat, D. (2019). YouTube advertising value and its effects on purchase intention. Journal of Global Business Insights, 4(2), 141-155. https://doi.org/10.5038/2640-6489.4.2.1097

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. https://doi.org/10.1177/002224378101800104

Hamze, M. (2020). An analysis of advertisement, customer's purchasing performance and behaviors: a case study on Kurdistan region. Humanities Journal of University of Zakho (HJUOZ), 8(2), 300-310. https://doi.org/10.26436/hjuoz.2020.8.2.536

Harrigan, P., & Miles, M. (2014). From e-CRM to s-CRM. Critical factors underpinning the social CRM activities of SMEs. Small Enterprise Research, 21(1), 99-116. https://doi.org/10.1080/13215906.2014.11082079

Harshini, C. (2015). Influence of social media ads on consumer's purchase intention. International Journal of Current Engineering and Scientific Research, 2(10), 110-115.

Hussain, H., Murtaza, M., Ajmal, A., Ahmed, A., & Khan, M. O. K. (2020). A study on the effects of social media advertisement on consumer’s attitude and customer response. Department of Business Administration, Iqra University. https://mpra.ub.uni-muenchen.de/104675/

Ina, M. (2019). Analysis of online video advertising factors influencing attitudes towards social media advertising and purchase intention on social media (YouTube): research on millennials in Jakarta. International Journal of Information Communication Technology and Digital Convergence, 4(1), 8-18.

Joreskog, K. G., & Sorbom, D. (1993). LISREL 8: A Guide to the Program and Applications. Scientific Software International.

Kathiravan, C. (2017). Effectiveness of advertisements in social media. Asian Academic Research Journal of Multidisciplinary, 4(7), 179-190.

Kemp, S. (2021, February 12). Digital 2021: Sri Lanka. DataReportal, article 3. https://datareportal.com/reports/digital-2021-sri-lanka

Laksamana, P. (2018). Impact of social media marketing on purchase intention and brand loyalty: evidence from Indonesia’s banking industry. International Review of Management and Marketing, 8(1), 13-18. https://dosen.perbanas.id/docs/wp-content/uploads/2020/08/02-Jurnal-Impact-of-Social-Media-Marketing.pdf

Lim, X., Radzol, A., Cheah, J., & Wong, M. (2017). The impact of social media influencers on purchase intention and the mediation effect of customer attitude. Asian Journal of Business Research, 7(2), 19-36. https://doi.org/10.14707/ajbr.170035

Logan, K., Bright, L. F., & Gangadharbatla, H. (2012). Facebook versus television: advertising value perceptions among females. Journal of Research in Interactive Marketing, 6(3), 164-179. https://doi.org/10.1108/17505931211274651

Mak, B. L., & Sockel, H. (2001). A confirmatory factor analysis of IS employee motivation and retention. Information & Management, 38, 265-76. https://doi.org/10.1016/S0378-7206(00)00055-0

Mazeed, S., & Kodumagulla, R. (2019). Effectiveness of social media marketing on customer purchase intention. International Journal of Innovative Technology and Exploring Engineering (IJITEE), 9(1), 2107-2109. https://doi.org/10.35940/ijitee.A4402.119119

Michael, P. (2017). The impact of social media on consumer buying intention. Journal of International Business Research and Marketing, 3(1), 7-13. https://doi.org/10.18775/jibrm.1849-8558.2015.31.3001

Pappu, R., Quester, P. G., & Cooksey, R. W. (2005). Consumer-based brand equity: improving the measurement – empirical evidence. Journal of Product & Brand Management, 14(3), 143-154. https://doi.org/10.1108/10610420510601012

Rajan, P., Lyn, F., Mun, N., Sian, K., & Yi, L. (2021). Facebook advertising and online purchasing decisions: an analysis of the uses and gratifications theory. Advanced International Journal of Business, Entrepreneurship and SMEs (AIJBES), 3(7), 10-23. https://doi.org/10.35631/AIJBES.37002

Sama, R. (2019). Impact of media advertisements on consumer behaviour. Journal of Creative Communications, 14(1), 54-68. https://doi.org/10.1177/0973258618822624

Sasmitha, J., & Suki, N. M. (2015). Young consumers’ insights on brand equity: effects of brand association, brand loyalty, brand awareness, and brand image. International Journal of Retail & Distribution Management, 43(3), 276-292. https://doi.org/10.1108/IJRDM-02-2014-0024

Shivhare, V., & Paul, V. J. (2020). Effectiveness, awareness and consumer perception towards online behavioural advertisements: a micro level study focusing gen Z. Studies in Indian Place Names, 40(29), 211-222.

Siriman, G., & Kathiravan, C. (2014). Effect of social media and factors influencing a brand’s reputation. International Journal of Innovative Research and Studies, 3(8), 365-378.

Toor, A., Husnain, M., & Hussain, T. (2017). The impact of social network marketing on consumer purchase intention in Pakistan: consumer engagement as a mediator. Asian Journal of Business and Accounting, 10(1), 167-199.

Wei, K., Jerome, T., & Shan, L. (2010). Online advertising: a study of Malaysian consumers. International Journal of Business and Information, 5(2), 111-134. https://doi.org/10.2139/ssrn.1644802

Downloads

Published

2022-09-10

How to Cite

KARUNARATHNE, E. A. C. P. ., & THILINI, W. A. . (2022). Advertising Value Constructs’ Implication on Purchase Intention: Social Media Advertising. Management Dynamics in the Knowledge Economy, 10(3), 287–303. Retrieved from https://www.managementdynamics.ro/index.php/journal/article/view/474

Issue

Section

Articles