An Empirical Study On The Impact Of Effective Social Media Advertising On Consumer Purchase Intention And Perceived Value

Social media is defined as a virtual platform on which users share their knowledge and experiences and recently,social media gained a new dimension with the help of technology.As consumers spend more time indoors,at work,or at home,the use of social media increases and they develop a good knowledge about products and services through advertisement.The aim of this study is to examine the effects of consumer perceptions about social media advertisements on the attitudes,behaviors,and purchase intentions,and to evaluate them with regard to the consumer purchase decision process.The independent variables of this study are informativeness,entertainment,interactivity and reliability,while the dependent variables are purchase intention and perceived value.Structural Equation Modeling(SEM)statistical tool was used to analyze the structural relationships between all the stated variables in this research.This analysis was run using the software Smart PLS version 2.0 and SPSS version 22,that was used to summarize the frequency of responses,and also as basis for either acceptance or rejection of the research questions and hypothesis been tested.This study indicates that the independent variables,which are,informativeness,interactivity and reliability,all have a positive impact on the dependent variables;purchase intention and perceived value,both for the foreign respondents and the Chinese respondents,with the exception of the entertainment variable of the Chinese respondents,resulting to entertainment having a negative impact on perceived value.This also managerially implying that for the foreign students in China,a high volume of information in an advertisement on a social media platform,an interactive social media advertisement,an entertaining social media advertisement,and a very reliable social media advertisement would have a positive influence on the way consumers perceive an advertised product and their willingness to purchase the advertised product.On the other hand,for Chinese students,a high volume of information in an advertisement on a social mediaplatform,an interactive social media advertisement,and a very reliable social media advertisement would have a positive influence on the way consumers perceive an advertised product and their willingness to purchase the advertised product,but,an entertaining advertisement may not necessarily have any impact on the way they perceive an advertised product,but could have an influence on their willingness to purchase an advertised product.According to this study,the most important factor that influences the purchase intention and the perceived value of the consumers is the volume of information that is used in the advertisement of a particular product or service on any of the social media platforms.