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

Edirisinghe Arachchige Chaminda Prasanna Karunarathne and Weerasinge Asha Thilini
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Edirisinghe Arachchige Chaminda Prasanna Karunarathne: Wayamba University of Sri Lanka
Weerasinge Asha Thilini: Wayamba University of Sri Lanka

Management Dynamics in the Knowledge Economy, 2022, vol. 10, issue 3, 287-303

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.

Date: 2022
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