Predicting Generation Y’s Purchase Intention towards Brands Advertised on Social Media: A PLS-SEM Analysis

Abstract

Social media advertising has become an integral part of product promotion by many companies. This strategy has impacted the sales and revenue departments of many advertisers. Hence, a strategically targeted advertising is needed to maximise return on investment on advertising in the form of sales, revenue, and profit. Although most businesses recognise the value of social media advertising opportunities, not many have figured out how to execute this strategy accordingly. With many western corporations embracing social media advertising, it is high time for Malaysian businesses to delve into this advertising territory. In order to familiarise them to the attitude of customers’ towards social media advertising, this study is timely to provide useful insights to guide Malaysian businesses.

Findings from this study will help advertising managers to ensure efficient utilisation of their budget and development of more effective advertising strategy, especially when formulating strategies to cater to Gen Y in Malaysia. Based on the data collected from 1,087 Gen Y consumers in Malaysia, the effect of belief factors (lifestyle, privacy and security concern, entertainment and credibility) on attitude towards social media advertising was examined. Partial Least Squares-Structural Equation Modelling (PLS-SEM) was employed to assess the hypothetical relationships between the belief factors and attitude towards social media advertising, purchase intention and actual purchase. The results revealed that the belief factors (lifestyle, privacy and security concern, entertainment and credibility) manifested a positive influence on attitude towards social media advertising.