The Influence of Social Value on the Attitude of M-Advertising Users and the Purchase Intention of the Millenial Generation on the Instagram Application

Abstract

The purpose of this study is determine the role of social value and the attitude towards m-advertising on the intention to purchase products on the Instagram application. Structural Equation Modelling (SEM) based on AMOS is an analysis technique which is used to test the hypothesis in this research. The sample consists of 100 people selected with the criteria as follows: born in the year of 1980-1995 (millennials) and are domiciled in Denpasar. The research result shows that (1) social value does not influence the attitude of m-advertising users because the indicators of social value used in this research are directed only towards the conditional aspects, (2) social value has positive and significant influence on the purchase intention of the millennial generation, (3) the attitude of m-advertising users has positive and significant influence on the purchase intention of the millennial generation. The theoretical implication which may be taken from this research is that the TPB can be applied in the case of m-advertising for the millennial generation in the areas of Denpasar. Furthermore, the practical implication and the recommendation from this research is that advertisers are expected to be able to utilize the filtering feature on Instagram to reach market targets that are suitable so that the sponsored ads appear on Instagram users who are their advertisement targets. If possible, the management of Instagram are expected to provide data regarding the behavior of their customers to companies that wish to advertise using Instagram’s sponsored ads.

Keywords: m-advertising, millennials, social value, user’s attitude and purchase intention