GENERATION Y: INFLUENCE OF ONLINE ADVERTISEMENT ON PURCHASE DECISION IN MALAYSIA
Purpose - This paper aimed to investigate the influence of online advertising on purchase decisions, focusing on four independent variables: credibility, informativeness, hedonic, and materialism. Design/Methodology/Approach - For data collection, online questionnaires were distributed to the targeted respondents of this research, which were Generation Y between the twenty-three to thirty-nine years old, and 570 sets of data were collected and analysed. Factor analysis, reliability test, descriptive analysis, and regression analysis were conducted using SPSS software, followed by Smart PLS software as confirmatory analysis. Findings - The analysis conducted through Smart-PLS. Cronbach’s Alpha, Composite Reliability, and AVE value of the constructs were higher than the minimum acceptable level, higher than 0.7 for Cronbach’s Alpha, higher than 0.7 for Composite Reliability, and higher than 0.5 for AVE. The findings showed that H1, H2, H3 were accepted since their t-values were greater than 1.96 and the p-values were lower than 0.05. However, H4 was rejected since the t-value was 0.409 and the p-value is 0.682.The result of bootstrapping analysis provided an R2 value of 0.371 indicating that this model explained 37.1% of the data variance. Practical Implications - The outcome of this research provided a reference to markets on how to improve the performance of their online advertisement by exploiting the independent variables investigated in this research. Since all independent variables were positively connected to purchase decisions, the advertisement should not prioritize materialism-related content in advertisement over the other variables unless necessary. Originality/value- This research study was conducted during the pandemic, which provides a unique setting to examine adjustability and learning.
Online Advertisement, Purchase decision, Credibility, Informativeness, Hedonic, Materialism