The effect of facebook advertising on generation Y purchase decision

Chiang, Xue Yi (2018) The effect of facebook advertising on generation Y purchase decision. Project Report. Universiti Teknikal Malaysia Melaka, Melaka, Malaysia. (Submitted)

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Abstract

In Malaysia, Facebook has announced the regulations for promoting the advertisement as the buyers may unconsciously confuse between personnel Facebook account and also business pages would be seen as annoying. Therefore, this study is to benefit the marketers to more effectively reach Generation Y customers as in this globalisation era, for every marketer, it is challenge to address the influence of Facebook advertisements on this generation’s buying behaviour. Hence, the aims of this study is to investigate the effect of Facebook advertising on Gen Y purchase decision and moderating effect of demographic factors on the relationship between perception of Facebook and purchase decision. The three perceptions proposed in the model, namely perceived trust, perceived informativeness and perceived risk with moderating effects of gender, education level and occupation between perceptions of Facebook advertising and consumer purchasing decision. The quantitative research was used for 300 respondents from Gen Y participated were selected from Generation Y in Johor, Malaysia and close-ended question in form of Nine- Likert scale used in the study. The data analysis was conducted using Pearson’s Correlation while Multiple Regression Analysis are conducted hypotheses testing and to test the Moderating Effect. Results of the study shows that perceived trust and perceived risk have a significant relationship with purchase decision, but perceived informativeness does not have a significant relationship with purchase decision. In addition, only gender had a significant moderating effect on the relationship between perception of Facebook ads and purchase decision. While education level and occupation does not have a significant moderating effect on the relationship between perception of Facebook ads and purchase decision.

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