INVESTIGATING THE IMPACT OF SOCIAL MEDIA ADVERTISING ON CUSTOMER PURCHASE

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INDUS UNIVERSITY- GULSHAN CAMPUS

COURSE TITTLE
BUSINESS RESEARCH METHOD

SUBMITTED TO:
____ Muhammad Faraz Khan Zai ____

RESEARC ARTICLE
___________________________

SUBMITTED BY:

BEHZAD TAIMORI (370-2019)

HAFIZ MUHAMMAD ASAD ZAHID (500-2019)

HAMZA ZAFAR (26-2019)

AHAD HASAN KHAN (339-2019)

MOHSIN ALI (186-2019)

MUHAMMAD TABISH (773-2019)

Gulshan Campus KARACHI

24-December-2022

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Table of Contents
1 INTRODUCTION:...........................................................................................................6
1.1 BACKGROUND:....................................................................................................6
1.2 RESEARCH QUESTION:.....................................................................................7
1.3 RESEARCH OBJECTIVE:...................................................................................7
1.4 PROBLEM STATEMENT:...................................................................................7
1.5 LIMITATION OF STUDY:...................................................................................8
2 LITERATURE REVIEWS:............................................................................................10
2.1 Theoretical Background:......................................................................................10
2.2 Organization Engagement:..................................................................................10
2.3 Online and Offline Gap:.......................................................................................11
2.4 Online Purchase Intension:..................................................................................11
2.5 Effect of Fashion Innovativeness:........................................................................11
2.6 Effect of Online Reviews on Purchase Intention:...............................................12
3 Methodology:..................................................................................................................13
3.1 RESEARCH APPROACH:..................................................................................13
3.2 RESEARCH DESIGN:.........................................................................................13
3.3 RESEARCH PURPOSE:......................................................................................13
3.4 Research Framework:..........................................................................................14
3.5 DATA COLLECTION AND ANALYSIS:..........................................................14
3.6 QUESTIONNAIRE:.............................................................................................14
3.7 QUESTIONNAIRE:.............................................................................................14
3.8 PERSONAL IMFORMATION:..........................................................................14
3.9 INSTRUCTION:...................................................................................................15
4 Conclusion:.....................................................................................................................18

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INVESTIGATING THE IMPACT OF SOCIAL MEDIA ADVERTISING ON

CUSTOMER PURCHASE INTENSION

Abstract:

Social media is being an increasing number of used as a platform to behavior

marketing and advertising sports. Companies have spent a whole lot of time, money,
and resources on social media commercials. However, there is usually a venture in
how groups can layout social media advertising to correctly entice customers and
inspire them to purchase their brands. As a result, this observe goals to become aware
of and take a look at the main elements related to social media advertising that would
predict buy aim. The conceptual model changed into proposed based on three factors
from the extending Unified theory of reputation and Use of technology (UTAUT2)
(performance expectancy, hedonic motivation, and habit) together with interactivity,
in formativeness, and perceived relevance. The facts become collected the usage of a
questionnaire survey of 437 contributors. The important thing consequences of
structural equation modelling (SEM) in large part supported the modern-day version’s
validity and the considerable impact of overall performance expectancy, hedonic
motivation, interactivity, in formativeness, and perceived relevance on purchase
intentions. This examine will with any luck provide a number of theoretical and
practical suggestions on how entrepreneurs can efficiently plan and put into effect
their commercials over social media platforms.

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1 INTRODUCTION:
1.1 BACKGROUND:
Social media has changed the way of peoples living. They are more occupied with
involving online media for various purposes, for example, to connect, know about
their environmental factors, and mingle and a ton of different reasons. Online media
has additionally changed the manner in which individuals used to collaborate, and
associate with their companions, family, and irregular public. Web-based media
permits every individual who incorporates distinct individuals, associations,
gatherings and surprisingly well known people to impart and communicate
strategically, socially, and even monetarily. The social media platform which
includes Facebook, Twitter Snap chat, Instagram and many other applications have
also initiated different options of marketing too which has increased the demand of
social media.

Consequently, organizations worldwide have started thinking about how using these
stages could assist in drawing in clients and building a beneficial promoting
relationship with those clients.

There are tons of marketing practices which can be implemented on social media such
as SEOs (Search engine optimization), WOM (Word of mouth), branding, and
customer relationship management. However, the significant interest in social media
marketing has been in terms of advertising from both researchers’ and practitioners’
perspectives

Most big firms like Unilever, Engro spend a huge amount of money on their
advertising campaigns. The marketers of every company is always brainstorming and
searching for advertising and social media ads which will fascinate the consumers and
will convince them to buy their products. . In comparison with traditional mass media
advertising or online ads (that are used for Web 1.0 applications), firms are able to
have more informative and interactive (two-way) communication with their customers

Social media effort and numerous advertisements have assisted most firms with
accomplishing their objectives and points which are to urge buyers to purchase their
items, making mindfulness about their items among clients living in various regions
of the planet, and changing their main interest groups' insights about their items.
Analysts need to zero in additional on finding the principle aspects that could impact

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the client's response and insight toward web-based media advertisements (Oh et al.,
2015)

One of the major reasons of using social media for promotions and ads is to shape
buyers dynamic expertise and to speak with them. This study will discover the
elements that predict the client buy aim for the items that are advanced web based
utilizing internet promoting rehearses.

1.2 RESEARCH QUESTION:

This research has following question:

 What are the main points which are associated with social media
marketing/advertising which influences the customers purchase intention?
 What is the theoretical/conceptual model which could be used to present all the
aspects related to social media advertising?

1.3 RESEARCH OBJECTIVE:

Research objectives are as under:

 The main objective of this research is to study the intention of discovering the
main extent of social media marketing that could form the customer’s purchase
intention.
 To study the theoretical model that could be used to represent all related aspects
to the social media advertising.

1.4 PROBLEM STATEMENT:

This is a new era of globalization, due to advanced technology and the growing trend
of internet, management of brand has become of importance. Hence, many of the
organizations face challenges that how they successfully attract or motivate customers
to purchase their brands through social media advertising (Ali Abdullah Alalwan, 2In
contrast with US and U.K, and surprisingly other created and non-industrial nations

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the internet buying expectation in Pakistan is amazingly low (Khalid and Farooq
2009), so the difficulty part here is individuals of Pakistan showing contempt conduct
with regards to web based shopping. The above detail shows that advertisers need to
comprehend that purchasing conduct of US and UK Internet clients to be effective in
this new showcasing and correspondence medium with the developing pattern. It is,
accordingly, critical to lead research among Internet clients in Pakistan to add to the
assemblage of information that is expected to touchy advertisers to comprehend the
elements included while seeking after the Internet (Social Media) as a showcasing
channel to draw in clients or to make expectation among the clients to purchase their
items.

Consequently, the general outcome shows that to complete an exploration to

demonstrate the significance of brand value on purchaser view of a brand that
ultimately prompts buy goal. Henceforth, presently the given whole need to
incorporate the job of shopper based brand value as a main thrust for client's web-
based buy purpose.

1.5 LIMITATION OF STUDY:

There are a number of limitations that limit this study and might be addressed in
future research .As a result, it may be beneficial if future research considers such
factors.
 Personality traits such as (image, technological readiness, advertising
inventiveness, community, and privacy concern) are not taken into account in this
study.
 this study does not discuss about the brand consciousness (for instance the way in
which an individual act toward a particular brands and how the disposition of an
individual remaining parts on the particular brand) however it discusses the
impact of social media advertising on the person perspective.
 There is need for further analysis, such as in this study, the important crowds
were focused on however in little numbers and there is chance of not getting real
data.

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 This study examined the social media advertising across different social media
platforms on the same scale without considering the effect of outcome and
characteristics on the present study model.

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2 LITERATURE REVIEWS:
2.1 Theoretical Background:
Ali Abdallah Alalwan, 2018 conducted the research named as “Investigating the
impact of Social Media advertising features on customer purchase intention “, which
was published in an International Journal of Information Management. The problem
to conduct this research was that there is always a challenge in how organizations can
design social media advertising to successfully attract and motivate customers to
purchase their brands. To cater this problem, the research’s main purpose is to
identify and test the main factors related to social media advertising that could predict
purchase intention. This study was based on Unified Theory of Acceptance and Use
of Technology with the 6 main variables, “performance expectancy, hedonic
motivation, habit, interactivity, in formativeness and perceived relevance”. The data
was collected from 437 respondents through questionnaire from a convenience sample
of Jordanian customers in which 59.3% of male and 40.7% of females. Through this
sampling, the result was found that respondents seem to be interested in purchasing
the product that are presented in social media. Therefore, the overall result shows that,
this study was conducted only to broaden the current understanding about the main
aspects associated with social media ads and their impact on the customer’s purchase
intention.

2.2 Organization Engagement:

World-wide, costumers are becoming more and more proficient with these digital
platforms, organizations are increasingly attempting to engage them in their online
brand communities (OBCs), which have been reported to facilitate the development of
positive word-of-mouth, referrals, consumer trust, purchase intention and loyalty, also
therefore, hierarchical productivity and upper hand. In the present savagely serious
showcasing climate, the job of instructing and empowering customers to co-make
esteem has turned into a significant assignment for advertisers. The factors in this
examination were:
 Openness to experience
 Conscientiousness
 Extroversion
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 Agreeableness
 Neuroticism.

2.3 Online and Offline Gap:

According to previous 2020 conducted a research named as Bridging the online
offline gap: Assessing the impact of brands’ social network content quality on brand
consciousness and purchase intention the research aims to understand the influence
social media maintain on consumer brand knowings and purchase intentions, by
establishing a interface between the attributes of the online media climate and the
client reaction inside the web-based media climate, content quality and brand
intelligence are viewed as the improvements. Web-based media likewise assumes a
functioning part in affecting shoppers' buy choice and 70% of buyers have visited
online media destinations to get data and close to half of these clients have settled on
a buy choice in view of the data they got to through web-based media locales.

2.4 Online Purchase Intension:

Social media influencers considering the consumer’s purchase intention and attitude.
The purpose of this research was to the adequacy of online media forces to be
anticipate with, ordinal in on these independent variable which are source reliability,
source attractiveness, item coordinate, and significance move. The dependent variable
is purchase intention and the mediating variable is consumer’s attitude. social media
influencers has trivial relationship with purchase intention and attitude, source
attractiveness of social media influencers have unsuccessful journey to influence
costumers, item coordinate of web-based media influencers was set up to be huge
with buy goal and customer's mentality. The importance move of online media
powerhouses has a positive relationship in buyer's disposition and buy aim. The future
examination could be correspondence. It is the main communication among
organizations and shoppers in the worth creation process. Advertisers must give time
in leading a veritable and real time discourse with clients to advance their items.

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2.5 Effect of Fashion Innovativeness:

Fashion innovativeness has a positive effect on online fashion purchase intention.
While on the other hand the electronic innovativeness has a negative effect on the
online purchase intention. The future research could be an analyzing the influence of
moderating variable like gender, age, marital status, user experience on online
purchasing on purchase intention.

2.6 Effect of Online Reviews on Purchase Intention:

Perceived information quality of positive online reviews has been found to have a
greater impact on trust, satisfaction, and purchase intention. The findings of this study
have significant implications for both theoretical research and practical applications of
online reviews in relation to purchase intention. This study, which also research
model, shows how online reviews influence purchase intent. In the meantime, the
moderating and mediating effects are examined.

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3 Methodology:
The data was collected through 5-point Likert scale questionnaire survey, the
questionnaire was self-prepared and divided into two variables dependent and
independent variables accordingly. The respondents who fill the survey were asked to
mark their level of agreement according to their preferences of their thoughts on
social media advertising. The range of the scale that used in this questionnaire starts
from strongly disagree to strongly agree i.e.) 1-5.

3.1 Research Approach:

This research has an alternate way to deal with comprehend the job of social media
advertising impacts on costumer purchase intention. We examine the effect various
variables influencing costumer internet buying expectation. The methodology of
Customer based brand value have explored in the examination and viewed as
applicable. Customer based brand value can be characterized as a connection of a
customer with the brand. The vital variable for this exploration is Consumer based
brand value; but different factors are likewise important to quantify.

3.2 Research Design:

To show the relationship between dependent and independent the design used for this
research is quantitative. However there are many different research designs can be
used for this purpose but this quantitative approach is more appropriate in this
scenario because this research is conducted through survey.

3.3 Research Purpose:

The main purpose of our paper is to create the new information about the impact of
social media advertising on costumer’s online purchase intentions. To examine the
relation among different variables such as, connections among Interactivity of the
consumer with the online advertising, the impact of on consumer based brand equity,
and further all these impacting on purchase intentions of consumer.

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3.4 Research Framework:

Dependent variable independent variable

CUSTOMER PURCHASE SOCIAL MEDIA

INTENSION ADVERTISING

Hypothesis:

H1: There is a positive relationship between customer purchase intention and social
media advertising.

H2: There is an negative relationship between customer purchase intention and social
media advertising.

Data Collection and Analysis:

There were numerous ways of gathering the data. However, we gathered the
information through questionnaire. Since the model size was huge, it was almost
difficult to meet or notice individuals. We requested that our respondents fill the
surveys which were assessed in scales; strongly disagrees, Disagree, Neutral, Agree,
Strongly agree.

This survey is responded by 200 participants as we have provided the link to the
participants and they all are from the age group 16 to 50+ as this age group is matured
and have the good sense of social media advertising that what to buy and where to
buy. This survey was conducted by the students of Indus University and the
participants are the residents of Karachi because we have targeted the only people live
in Karachi and some participants are university students and some faculty members.

3.5 Questionnaire:

3.6 Questionnaire:
“Investigating the impact of social media advertising features on customer purchase
intention”

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3.7 Personal Information:

Name:

Age:

Gender:

Education:

3.8 Instruction:
a. Please answer ALL the questions on this page.

b. Please mark an answer, which you think best represent your stand by using the
following scale:

1. Strongly disagrees
2. Disagree
3. Neither disagrees nor agrees
4. Agree
5. Strongly agree

NOTE:

Please consider your recent view of a brand in social media, answers for the following
questions.

 A- Social Media advertising: 1 2 3 4 5

1. There are many advertising campaigns
(advertisements, videos, images, posts, reviews
etc.) collected by the brand on social media site.
2. The brand regularly updates its contents for
promoting its products or services.
3. The contents (posts, pictures, videos, reviews,
etc.) are relevant to the customer.
4. Do you think brand uses applications (mobile
apps) and different platform in promoting their

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products and services?

5. Does people follow brand on social media?
 B- Customer Purchase Intention
6. Does the people take social media as
electronic word-of-mouth?
7. Does the relationship of social media
marketing to the purchase intention?
8. The probability that people will buy the
product or service is very high.
9. The People will buy the product/service the
next time when need it.
10. Does the feedback
(comments/posts/reviews/etc.) affects brand
purchase intention on social media?
11. Do people feel that their purchase is influenced
by social media?
12. Do people think social media plays an important
role in promoting a brand?
13. Does social factors play a very important role in
influencing the buying decision of consumers?
14. Does social ties matter for purchase
frequency and the buyer's attitude toward social
media marketing?

Reliability

Scale: ALL VARIABLES

Case Processing Summary

N %
Cases Valid 197 98.5
Excluded a
3 1.5
Total 200 100.0

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a. List wise deletion based on all variables in the

procedure.

Reliability Statistics
Cronbach's Alpha N of Items
.888 14

Regression

Model Summaryb
Std. Error of the
Model R R Square Adjusted R Square Estimate Durbin-Watson
1 .721a .520 .517 .610904634604086 2.383

a. Predictors: (Constant), SOCIAL MEDIA ADVERTISING

b. Dependent Variable: CUSTOMER PURCHASE INTENSION

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 79.929 1 79.929 214.170 .000b
Residual 73.894 198 .373
Total 153.824 199
a. Dependent Variable: CUSTOMER PURCHASE INTENSION
b. Predictors: (Constant), SOCIAL MEDIA ADVERTISING

Coefficientsa
Standardize
d
Unstandardized Coefficient 95.0% Confidence
Coefficients s Interval for B
Lower Upper
Model B Std. Error Beta t Sig. Bound Bound
1 (Constant) .834 .194 4.298 .000 .451 1.216

SOCIAL MEDIA .798 .055 .721 14.635 .000 .691 .906

ADVERTISING

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a. Dependent Variable: CUSTOMER PURCHASE INTENSION

4 Conclusion:
The related issues of social media advertising have been increasingly the focus of
attention of both researchers and practitioners over the marketing area. Therefore, this
study was conducted to expand the current understanding about the main aspects
associated with social media ads and their impact on the customer’s purchase
intention. A closer review of the related literature leads to the identification of six
main factors (performance expectancy, hedonic motivation, habit, interactivity, in
formativeness, and perceived relevance) as key predictors of purchase intention. The
data of the current study was collected from Jordan using a questionnaire survey.
Then, 437 completed and valid responses were targeted for further analyses in SEM.
The model was able to predict about 0.52 of variance in the customer purchase
intention, and five factors, performance expectancy, hedonic motivation, interactivity,
in formativeness, and perceived relevance, were noticed to have a significant impact
on the customer’s purchase intention. Interactivity was also found to have a crucial
role in accelerating both performance expectancy and hedonic motivation. Further,
statistical results provide strong evidence supporting the impacting role of both
perceived relevance and in formativeness on performance expectancy. After that, the
yielded results have been discussed in the light of logical justification as well as what
has been found and argued over in prior studies of social media advertising. A number
of practical and theoretical implications were also discussed in prior sections. The last
subsection focuses on the main limitations restricting this study along with the
important directions that worth considering by future studies.

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