Impact of Facebook Advertisements on Purchase

Intentions of Mobile Facebook Users:

Investigating the Moderating Role of Brand
Origin and Perceived Product Value

著者 QAZI TAYYAB YAQOOB

学位授与機関 Tohoku University
学位授与番号 11301甲第17831号
URL http://hdl.handle.net/10097/00122543
Impact of Facebook Advertisements on Purchase
Intentions of Mobile Facebook Users:
Investigating the Moderating Role of Brand
Origin and Perceived Product Value

by

Tayyab Yaqoob Qazi

B4ED1504

Dissertation Submitted in Partial Fulfilment of the

Requirements for the Degree of
Doctorate in Philosophy.

Graduate School of Economics and Management,

Tohoku University, Japan
March-2018
 DEDICATION

To All My Ancestors, Beloved Parents, Siblings & My Wife.

Tayyab Yaqoob Qazi

i
 ACKNOWLEDGMENT
Being a Muslim, I consider it my utmost duty to express my deep gratitude to
Almighty Allah, the Compassionate and Merciful, Who gave me health and opportunity
to complete this study. I offer my humble thanks from the core of my heart to the Holy
Prophet Mohammad (Peace Be Upon Him), who is forever source of guidance and
knowledge for entire humanity.

I extend deep gratitude to my Supervisor, Professor Seiichi Ohtaki, for his

encouragement, scholarly guidance, timely help, sympathetic attitude and exclusive
cooperation during my study in Tohoku University. I gratitude his kind guidance,
persistent inspiration, patience and crucial contribution from the very beginning to the
end of this Ph.D. dissertation. I am very grateful to him in every possible way and hope
to keep up this collaboration also in the future. No doubt, without his kind guidance this
thesis would not have been possible.

It is my pleasure to pay tribute to Japanese Government for their grant of

Monbukagakusho: MEXT Scholarship to meet my financial needs during my study.

Many thanks go in particular to all research interviewees who contributed

through their precious time and information, when I conducted the field studies.

I am also thankful to University`s staffs and all my warm-hearted friends for their
friendly attitude and valuable guidance both in study and daily life, without their support,
my dissertation would not have been completed and my life in Japan would not have
been so joyful.

Lastly, I wish to thank and express my appreciation to my family members who

helped and prayed for me. I can never forget my mother’s efforts she put forward for my
bright and prosperous future. May Allah Almighty bestow His blessings and forgiveness
upon her in this life and afterward. I could never complete this study without the help
and encouragement of my entire family.

Tayyab Yaqoob Qazi

01. Jan. 2018
tayyab.qazi@hotmail.com

ii
 TABLE OF CONTENTS

CONTENTS PAGE NO.

DEDICATION i
ACKNOWLEDGMENT ii
TABLE OF CONTENTS iii
CHAPTER 1: INTRODUCTION 1
1.1. BACKGROUND 1
1.2. MOBILE FACEBOOK ADVERTISING 8
1.3. COUNTRY OF ORIGIN 14
1.4. PERCEIVED VALUE 15
1.5. PRESENT RESEARCH SITUATION AND RESEARCH GAP 15
1.6. RESEARCH PROBLEM 16
1.7. RESEARCH OBJECTIVES 17
1.8. RESEARCH QUESTIONS 18
1.9. SIGNIFICANCE OF THE STUDY 19
1.10. SUMMARY OF THE CHAPTER 20
CHAPTER 2: LITERATURE REVIEW 23
2. 1 PREVIOUS STUDIES ABOUT ADVERTISING TO PURCHASE
INTENSIONS 23
2. 2 PURCHASE INTENTIONS 34
2. 3 SOCIAL NETWORKING ADVERTISING WEBSITES 40
2. 4 PREVIOUS STUDIES ABOUT FACEBOOK ADVERTISEMENT TO
PURCHASE INTENSIONS 49
2. 5 MOBILE FACEBOOK ADVERTISING 50
2. 6 COUNTRY OF ORIGIN 72
2. 7 PERCEIVED VALUE 78
2. 8 CONCEPTUAL FRAMEWORK OF THE STUDY 84
2. 9 HYPOTHESES 84
2. 10 SUMMARY OF CHAPTER 86
CHAPTER 3: METHODOLOGY 88
3. 1 POPULATION 88
3. 2 SAMPLE SIZE 90
3. 3 SAMPLING TECHNIQUE 90
3. 4 MOBILE FACEBOOK USAGE CHARACTERISTICS IN PAKISTAN 91

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3. 5 DESIGN OF QUESTIONNAIRE BEFORE PILOT TESTING 91
3. 6 PILOT TESTING FOR ITEMS REDUCTION IN QUESTIONNAIRE 98
3. 7 QUESTIONNAIRE AFTER PILOT TESTING 99
3. 8 RELIABILITY TESTS VALUES 103
3. 9 RELIABILITY TESTS FOR PILOT STUDY 104
3. 10 SOFTWARE AND STATISTICAL TESTS 104
3. 11 SUMMARY OF THE CHAPTER 104
CHAPTER 4: DATA ANALYSIS, RESULTS AND DISCUSSIONS 106
4.1 PILOT TESTING 106
4.2 RESULTS OF MAIN STUDY 125
4.3 DESCRIPTIVE STATISTICS 125
4.4 MULTICOLLINEARITY DIAGNOSTICS 132
4.5 REGRESSION ANALYSIS 133
4.6 REGRESSION MODEL 1 134
4.7 REGRESSION MODEL 2 136
4.8 MODERATED REGRESSION MODEL 3 142
4.9 COMPARATIVE IMPACT OF THREE TYPES OF MOBILE FACEBOOK
ADVERTISMENTS 156
4.10 COMPARATIVE MODERATION EFFECTS OF COUNTRY OF ORIGIN
AND PERCEIVED VALUE 158
4.11 SUMMARY OF CHAPTER 160
CHAPTER 5: FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 164
5. 1. MAJOR FINDINGS 164
5. 2. CONCLUSIONS 172
5. 3. MAJOR CONTRIBUTIONS OF THE STUDY 174
5. 4. THEORETICAL IMPLICATIONS 176
5. 5. MANAGERIAL IMPLICATIONS 177
5.5.1. Managerial Implications for Corporations 177
5.5.2. Managerial Implications for Marketers 178
5.5.3. Managerial Implications for Facebook Incorporation 179
5. 6. LIMITATIONS AND FUTURE RESEARCH 179
5. 7. SUMMARY OF CHAPTER 180
REFERENCES 182

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 CHAPTER 1: INTRODUCTION

1.1. BACKGROUND

Social media has provided a great advertising opportunity for the organizations.

The organizations of the current era are advertising their products and services on the

social media due to reach and popularity around the world (Maina, 2016). Priyanka

and Srinivasan, (2015) argues that social media has wide reach to the potential

customers in the form of interactive and viral means of social networking advertising

to inform, persuade, and remind the customers about the products and services.

Through social media, an organization can upload advertising contents to attract target

audience and obtains reviews of products or services (Ngai et al., 2015). A business

example of social media advertising is traced backed to Taco Bell’s advertising on

Instagram about the experience in which user experiences are shared to acquire and

retain customers. Taco Bell reached 12.5 million customers of ages between 18 to 44

years old in United States (US) in just four weeks which was (04) four times higher ad

recall in groups (Allen, 2014). Interestingly, the users of social media sites do not

realize that they are being marketed by the companies and promote the product or

services (Adamopoulos and Todri, 2015) and they also have a positive attitude towards

social media advertising campaigns (Jung et al., 2015).

There is a list of top 20 popular social media websites which include social

networking websites of Facebook, Twitter, LinkedIn, Google+, Youtube, Pinterest,

1
Instagram, Tumblr, Flickr, Reddit, Snapchat, WhatsApp, Quora, Vine, Periscope,

BizSugar, StumbleUpon, Delicious, Digg and Viber (Maina, 2016). The author further

argued that the both the small and big businesses use these social media websites for

advertising their products and services. However, the reach and popularity of each

social media website is not equal. Hence, an organization has to know the popularity

of social media sites for cultivating optimum benefit from social media advertising.

According to the author (Maina, 2016), Facebook was the most popular social media

website in terms of total number of users and name recognition across all top most 20

popular social media websites.

Facebook is an important social networking website used by the firms to reach

the potential customers, to inform, persuade, and remind the users about various

products and services (Priyanka and Srinivasan, 2015). Many organizations upload

their advertising contents to attract target audience and obtains reviews of products or

services (Ngai et al., 2015) on Facebook because it provides two way communication

through which marketers avail the opportunity of advertising and customers can

analyze, react and purchase products or services (Parveen et al., 2015) advertised there.

The importance of Facebook as advertising media is evident from the very popular

business example AirAsia. AirAsia launched a Facebook campaign “gave away a plane”

by offering free trip to Kuala Lumpur if anyone shares his/her trip information with

their Facebook contacts (Jung et al., 2015). Many of the customers shared their

experiences with AirAsia with their Facebook friends and got the prize of free trip. But

the company got many new customers through this Facebook advertising campaign.

2
 According to Koch and Dikmen (2015), Facebook advertising provides a major

benefit of global access to the Facebook users who do not even know that they are

being advertised with a greater impact on their purchase decisions. The Facebook users

who are exposed to Facebook advertisement have not only positive purchase intentions

towards campaigns but also share or promote it among their social contacts

(Adamopoulos and Todri, 2015). Hence, a study of Facebook advertising is very

crucial to cope the advanced use of technology in business.

Advertising

Advertisement refers to the messages communicated to general public which

are containing detailed information about services or products. These messages contain

important information about service/product’s availability, features, usage and price.

Advertising is intended for providing information about services/products and

influencing recipient people to purchase those advertised products/services (Adams

and Stanton, 1984). The main aim of advertising is to inform people about some

specific service or product and ultimately persuading them to purchase that specific

service or product (Shimp, 1997). The content or message displayed to the general

public is referred to advertisement or ad (De Cenzo et al., 2011).

According to Kotler (1989) advertising may take various media and forms

according to the nature of product and potential users. Advertising may take various

forms such as printed document, audio, video, or a blend of some of these or all of

3
them. However advertising does not promote personal views or thoughts. De Cenzo et

al., (2011) argued that advertising may also use various media as per available budget

and advertisement goals such as newspaper, hoardings, bill boards, magazines, outdoor

advertising, search results, blogs, mailers, contests, direct mail, text messages,

sponsorships, posters, events, radio, television and internet. The medium used for

advertising is called advertising channel or advertising industry which includes

companies and agencies and collectively known as advertising industry. The

advertising industry helps organizations in creating advertisements, selecting media to

be used for advertising, editing the messages, visualizing the contents, designing the

layout of advertisement and conducting research (Arens, 2004; Katz, 2016; Moriarty et

al., 2014).

The internet advertising which is also called online or modern world

advertising is deemed to be very effective in terms of cost and has world-wide reach.

The organizations use websites where they paste their advertisements on the internet.

The advertising organizations are easily identified as the advertising organizations by

the viewers in online mode on the internet (Ha and McCan, 2008). Out of the internet

advertising, social media advertising is the main category which has been gaining a

wide popularity during the recent decade (Schaffer, 2013). However, from various

websites of social media on the internet, Facebook is considered to be the easy to use

and widely spread social media website around the globe (Ernst, 2017). Therefore, the

advertising on the Facebook got a special attention as a modern advertising media in

the business world.

4
 All types of advertising, at least, provides basic information about a product or

service, its availability, its features and benefits. This information increase the chances

that a person will purchase goods or services advertised to him/her (Schiffman and

Kanuk, 2009). The viewers or potential users also get the benefit of making a buying

choice by assessing various substitutes of the product or service though advertisement

(Hafeez et al., 2017). The scholar of advertising and marketing argue that when

customers evaluate goods or services positively, they have a tendency of purchase

intentions towards the advertised service or product (Adelarr et al., 2003; Beatty and

Ferrell, 1998; Bowden, 2009; Cheung and To, 2017; Dittmar et al., 1996; Hausman,

2000; Qazi et al., 2017). However, an advertisement which is aligned with potential

users’ needs and wants can result in stimulating purchase intentions and ultimate

buying of the advertised products/services (Ducoffe, 1996, (Pollay & Mittal, 1993,

Brown, Pope & Voges, 2003, Dahlen, 2001.

From the above discussion, the researcher concludes that the study of

advertising is really very important for the academia, businesses and the end users of

services/products. The advertising creates a positive attitude towards advertised

service/product and ultimately forms purchase intentions relating to the advertised

products that lead to ultimate purchase by the advertisement viewers. Keeping in the

view the modern advanced technology world, the researcher assesses that Facebook

advertisement has positive impact on purchase intentions and it is easier to customize

advertisements son Facebook than traditional advertising. Hence, a study of Facebook

advertisement is deemed to be the need of the current advanced advertising industry.

5
Purchase Intentions

Purchase intentions refer to the potential consumers/customers’ intention to

purchase a specific product or service. It includes all types of stimulus which influence

the behavioral intentions about the future buying by the customers (Taylor and Baker,

1994). Hence, we can conclude that purchase intention is an important constituent of

consumer buying behavior which encompasses through desired purchase decisions.

Impact of Advertising on Purchase Intentions

Advertising has a positive impact on consumer behavior specially on framing

purchase intentions of the target viewers of that advertising (Kotler, 1989). Such

association of advertising with purchase intentions is found by the almost all studies in

this domain (Anshen, 1955; Drossos, 2014; Rewal et al., 1998; Helm and Evans, 2016;

Lee et al., 2011; Pechmann and Stewart, 1990; Petty et al., 1983; Ramond, 1960;

Woodside and Taylor, 1978). Hence, the following can be inferred:

6
Facebook Advertising

With the passage of time and advancement of new technology in the business

world, the channels and modes of advertising have been changed dramatically

(Dekoulou et al., 2017). The advertisement went through print media to electronic

media i.e. newspaper advertisement to the electronic mediums such as radio, television

and internet. Internet advertising went beyond mere website to social media

advertising and Facebook is a type of social media advertising (Chu, 2011; Srinivasan,

2015). Facebook adverting includes the dimensions of homepage impression, organic

impression and homepage impression (Nielsen, 2012). While advertising on Facebook,

the companies face the major challenge of security restrictions by the facebook users.

Hence, the advertising companies has reached to the solution of this problem. They

have categorized the places through which they can show their ads on the facebook

7
such as users’ News Feeds, friends’ likes, friends’ experiences etc.

To understand the working of the facebook advertisement one must has to

understand the term “impression” which refers to how many times a post seen, and

how frequently users are exposed to that particular content. So, the frequency of ads

displays on facebook is measured in Impression which is a key metric for measuring

Facebook performance. Impression reveals how many users an ad is reaching and how

frequently those users are seeing the ad. Paid advertising on Facebook can also drive

impressions for a particular advertisement by the marketers. They know the exact

factors which are important and serve as driving force for a particular brand

advertisement exposure on Facebook.

It is interesting to mention here that all three types of advertising (social

impression advertisement, homepage impression advertisement and organic

impression advertisement) are available in both the desktop and mobile versions of

facebook advertisement. However, mobile facebook advertisements have different

look from desktop version due to the size of screen and webpage settings.

1.2. MOBILE FACEBOOK ADVERTISING

With the advancement of technology and progress in android & windows

mobile phones (smartphones), the facebook gained more popularity than ever before

on desktop version (Rowles, 2017). In the desktop version, the users had to sit on

desktop computers in home or a place specifically spared for the use of desktop

computers. They also needed electricity cables to be attached with the computers in

8
order to run facebook in their desktop computers. However, with the invention and

advancement of smartphones, running facebook has become an easier task for users.

Now, the users have to download facebook application in their mobile and can run

facebook on just one click. Now, they are tension free about the electricity, place and

time (Rowles, 2017).

The advertisement on mobile version of facebook became important for the

advertisers and organization with the wide use of facebook on mobile phones.

According to Srinivasan (2015), Jung et al., (2015) and Qazi et al., (2017), Mobile

Facebook became an important media for advertising around the world in a global

competition. Like desktop version of Facebook adverting, mobile version of facebook

advertising has the similar ways of advertising. The major ways of advertising on

mobile version of facebook include homepage impressions, organic impressions and

homepage impressions (Nielsen, 2012). All these three types of advertising on mobile

version have their specific places through which the companies can display their ads

on the facebook such as users’ News Feeds, friends’ likes, and friends’ experiences.

Like desktop version of facebook advertisements, mobile version of facebook

advertisement also use the term “impression” which refers to how many times a post

seen, and how frequently users are exposed to that particular content to calculate the

effectiveness of mobile facebook advertisement.

Types of Mobile Facebook Advertising

Facebook advertising may opt the three basic ways of reaching facebook users.

These ways are called the types or dimensions of facebook advertisement. They are:

9
homepage impression, organic impression and homepage impression (Gibs and

Bruich, 2012). The details of these types is illustrated below:

i. Social Impression

An advertisement on facebook with the social information of

facebook users is called social impression advertisement. The term social

impression explains the number of times an ad is viewed when that

advertisement is displayed on facebook with social information such as

Facebook friends who are engaged with Facebook Page or ad. This type of

advertisement is appeared on specific places on Facebook which are called “

placements” in the right column of facebook pages which includes social

circle information about a Page, event or app such as viewer's friend(s)

connected with specific Page, event or app. The effectiveness of this type of

advertisement is measured in “Social Metrics”. Social Metrics is used to

measure Advertising Performance if the social context is added to an

advertisement (Li et al., 2012).

In Social Metrics, there are some important elements which needs to

be understood before forwarding next in the study. In social impressions,

social clicks are deemed important which refers to the number of times an

advertisement is clicked with social context such as with information about a

viewer's friend(s) who connected with your Page, event, or application. This

may also be shown in the form of percentage (social %). It is interesting to

mention here that social impression Ads can also appear in both the desktop

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 and mobile versions of facebook advertisement in News Feed at the right

column. However, mobile applications advertisers can also use Audience

Network to show their advertisements (Smock et al., 2011)

ii. Organic Impression

According to Jung et al., (2016), organic impression is a type of

facebook advertisement in which the advertisement contents are displayed in

a user’s News Feed, ticker, or on advertisers’ page. This form of advertising is

generally from unpaid sources rather than paid sources. In this advertisement

the organic reach is considered to be the total number of “unique people” who

are exposed to the advertisement through unpaid distribution on facebook. It

is most usually from an organization’s or advertiser’s own facebook pages. In

organic reach of an advertisement, the sum of post reach won't equal total

reach because Pages can reach people through content other than posts. For

example, if someone visits a Page after searching for it, they'll be counted in

total reach but not post reach. Also, if someone sees more than one Page post,

they'll be counted in post reach for each post they see, but they'll only be

counted once in total reach.

Improving organic impressions means making it into News Feeds

more frequently and optimizing your marketing tactics against Facebook’s

EdgeRank algorithm (McGee, 2013). The focus for improving organic

impressions should be growing the number of active and engaged fans on

11
 your page, placing emphasis on shareable content, and limiting the negative

feedback of the viewers. Paid advertising on Facebook can also drive

impressions, for marketers, this underscores the importance of understanding

what’s driving brand exposure on Facebook. It is interesting to mention here

that organic impression Ads can also appear in both the desktop and mobile

versions of facebook advertisements.

iii. Homepage Impression

According to Jung et al., (2016), in facebook advertising through

homepage impressions, the companies and advertisers focus on entire view of

a facebook page. Advertisements through homepage impressions are located

in the sidebar of Facebook that contain creative content including text and

image. Such advertisements also provide the viewers an option to access and

like the page on which the advertisement is actually based. Hence, the

advertisers and organizations may set up their custom short domain to Buffer

homepage where the viewers see their updates. According to Rawee (2016),

homepage impression advertisement may include the various elements on

facebook but are not limited to Facebook Pages, Facebook Profiles, Facebook

Groups, Linked Twitter Accounts, LinkedIn Profiles, LinkedIn Company

Pages, and Google+ Pages. It is interesting to mention here that homepage

impression advertisements can also appear in both the desktop and mobile

versions of facebook (Wang and Reani, 2017).

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Features of Mobile Facebook Advertising
Advertising on mobile version of Facebook has various positive characteristics

which make it as an attractive platform for advertising by the corporations around the

world. Mobile version of facebook provides easy access to the right people, capture

their attention and get desired results at low costs. The huge number of mobile

facebook users around the world has necessitated the corporations to advertise on this

version of facebook too. The users of mobile facebook users in the world are around

one billion in the world. The people you want to reach are here. There are 0.5 billion

people who use Facebook every day on mobile (Facebook, 2017). Another important

feature of mobile facebook is that the advertisements are easy to create and costs lower

than desktop version and any other social media advertisement.

Facebook Advertising and Purchase Intentions

Facebook advertisement has a significant and direct association impact with

purchase intentions of the potential customers/consumers (Chu & Kim, 2011; Leung et

al., 2015; Van et al., 2014; Yang, 2012). The study of Jung et al., (2015) revealed a that

Facebook advertisement offers an aligned match of company offerings with customers’

needs & wants more effectively than to traditional advertising. They found a positive

and significant relationship of Facebook advertisement with purchase intentions of the

customers. Besides this, the studies of Leung et al., (2017) and Qaz et al., (2017) found

a positive and significant relationship of Facebook advertisement with purchase

13
intentions of the customers. Hence the following relationship of Facebook

advertisement and purchase intentions is well established:

1.3. COUNTRY OF ORIGIN

Country of origin (COO) refers to the country of ownership of a corporation or

organization from which it is belonged. It is the positive or negative tendency of a

customer toward a specific product or service. This tendency is the result of

preconceived ideas about the quality of products originating in a specific country.

However, there is a difference in the impact of COO on consumer buying behavior

especially framing purchase intentions with respect to socio-economic groups, mixed

products (tangible and intangible) and services. According to Schooler (1971), COO is

14
a type of country patriotism bias towards domestic products or services over foreign

similar products or services due to inherent information suckled in the minds of

citizens. Hence, we can conclude that COO has both the direct and indirect effect on

purchase intentions.

1.4. PERCEIVED VALUE

Perceived value refers to various value facets such as functional value, economic

value, emotional value and social value positively perceived by a customer by the use

of a specific product or service. Various studies treated perceived value as a positive

trade-off of benefits over sacrifices perceived by a customer by using a specific

product and they also considered it very important in research in buying behavior and

purchase intentions (Gallarza et al., 2017; Koller et al., 2011; Slater and Narver, 2000;

Ulaga and Chacour, 2001). It is a proved fact that perceived value has a significant

effect on purchase intentions and consumer buying behavior. However, both the direct

and indirect effect of perceived value on purchase intentions needs to be analyzed.

1.5. PRESENT RESEARCH SITUATION AND RESEARCH GAP

Jung et al., (2015) conducted a study and recommended to study mobile

version of Facebook advertisements and check their influence on purchase intentions

of the advertisement viewers. Till now it is an unfilled research gap to be studied by

the marketing researchers. Hence, the researcher took the task of studying the impact

of mobile version of Facebook advertisements (social impression advertisements;

15
homepage advertisements; and organic impression advertisements) on purchase

intentions of the advertisement viewers. They used perceived advertising value as

moderating variable in their study. But the researcher would use perceived value of the

products being advertised because it has strong impact on purchase intentions (Eggert

and Ulaga, 2002) instead of perceived advertising value as used by Jung et al., (2015).

Besides the direct impact of mobile version of Facebook advertisements on

purchase intentions, the moderating effect of brand origin as a moderating variable

while examining purchase intentions was recommended by four recent studies

(Ferreira and Ribeiro, 2016; Gineikiene et al., 2017; Holtbrügge and Zeier, 2017; Insch

et al., 2017). Hence, this study is an effort to study the impact of Facebook

advertisements on one hand and investigating the moderating role of brand origin on

the other hand. Besides moderating effect of brand origin, perceived value is also

being used as moderating variable in this study due to its importance in explaining

purchase intentions.

1.6. RESEARCH PROBLEM

Evaluating the impact of advertising on ultimate sales remained the basic

concern for the organizations. The role of advertising is well established in framing

purchase intentions of the potential users and ultimate sales. However, the advertising

may be done in various forms and media. It is very important decision of a business

organization to select a specific media because the media will result in the

effectiveness of an advertisement. The media also define the cost and reach of the

16
message of advertisement. As the business organizations try to find a cheap media

which can also have a wide reach to the most of the target people, the social media

website of Facebook has both the desired qualities of low cost of advertisement and

wide reach to the viewers.

The literature of marketing and advertising has already established a valid

association of advertisement with purchase intentions. Previous studies also have

established a direct impact of desktop version of Facebook advertisement on purchase

intentions. But the research problem is still unaddressed due to the lack of studies

evaluating the impact of mobile version of Facebook advertisement on purchase

intentions. Besides, the moderating role of brand origin and perceived value are also

needed to be studied. This research problem induced the researcher to conduct the

present study to solve this research problem.

1.7. RESEARCH OBJECTIVES

The researcher has identified the research gap and defined the research problem

for the current study. The researcher has set the below mentioned research objective to

be fulfilled by this current study. The researcher’s analysis would comprise of the food,

clothing and electronics products.

i. To explore the positive impact of mobile version of Facebook

advertisement (social impression, homepage impression and organic

impression) on purchase intentions.

ii. To investigate the moderating role of brand origin between relationships

17
 of mobile version Facebook advertisement and purchase intentions.

iii. To investigate the moderating role of perceived value between

relationships of mobile version Facebook advertisement and purchase

intentions.

1.8. RESEARCH QUESTIONS

From the background build-up for this study, understanding the importance of

advertisement, impact of advertisement on purchase intentions, current research gap

availability, analyzing the research problem, and after determining the research

objectives for this study, the researcher has developed following questions to be

probed in the current study:

i. Is there any relationship of mobile version of Facebook advertisement

(social impression, homepage impression and organic impression) and

purchase intentions?

ii. What is the impact of social impression on purchase intentions?

iii. What is the impact of homepage impression on purchase intentions?

iv. What is the impact of organic impression on purchase intentions?

v. What is the moderating impact of brand origin between relationship of

mobile version Facebook advertisement and purchase intentions?

vi. What is the moderating impact of perceived value between relationship

of mobile version Facebook advertisement and purchase intentions?

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1.9. SIGNIFICANCE OF THE STUDY

The current study would be significant in terms of academic contribution to the

existing body of knowledge in the field of facebook advertising and its role in framing

purchase intentions. This study also has significance in terms of contribution to the

practice of using facebook advertising and initiating purchase intentions and gaining

ultimate purpose of selling goods. These two dimensions of significance of the study

are described with details as under:

i. Theoretical Significance

The study would add to existing literature and fill the grey area left by

the researchers in the field of consumer research, purchase intentions,

advertisement, brand origin and perceived value. The desktop version of

Facebook advertisement (social impression advertisements; homepage

advertisements; and organic impression advertisements) have direct influence

on purchase intentions of the advertisement viewers (Jung et al., 2015). They

also highlighted a future research area of studying customers using Facebook

on their mobile phones. This research gap is also supported by the study of

Koch and Dikmen (2015) who mentioned that Facebook users on mobiles had

grown to more than half of the total Facebook users in the world. Hence, the

study of advertisements on mobile version of Facebook can be useful for all

stake holders because mobile version of Facebook differs from desktop

19
 version in terms of time available to sit, read, and write long replies; type of

messenger used for communication; difference in the homepage and

newsfeed; and frequency and size of advertisements. Besides these arguments,

the study of brand origin and perceived value as moderating variables while

examining purchase intentions would fully comprehend the impact of mobile

version of Facebook advertisements (social impression advertisements;

homepage advertisements; and organic impression advertisements) on

purchase intentions of the advertisement viewers.

ii. Practical Significance

The current study would help the governments, industries, consumers

and academics to understand the moderating role of brand origin and

perceived value in framing consumers purchase intentions by seeing

Facebook advertisement of the products and services. This study would help

firms offering products/services. All mentioned stakeholders can easily

recognize the patterns of purchase intentions and can incorporate desired

features in their products or services.

1.10. SUMMARY OF THE CHAPTER

This chapter has discussed the background of advertisement and its impact on

purchase intentions of consumers. This chapter discussed the evolution of

advertisement which encompassed through social network advertisement, desktop

20
facebook advertisement and mobile facebook advertisement. All types of

advertisements have positive impact on purchase intentions. In spite this, the study

discussed research gap available which became a source of motivation to start this

research study. This study would explore the relationship between three types of

mobile facebook advertisements (homepage impression, organic impression, social

impression) and purchase intentions. However, the moderating effect of country of

origin and perceived value would also be explored.

Structure of the Study

The researcher has structured the current study in five major parts (chapters) as

per international standard doctoral dissertation writing by the leading universities of

the world. The following are the chapters of this research study (doctoral dissertation):

1. Chapter 1: introduction

2. Chapter 2: Literature Review

3. Chapter 3: Research Methodology

4. Chapter 4: Data Analysis and Discussion of Results

5. Chapter 5: Conclusions, Implications, Recommendations and Future Research

Directions

A diagrammatic description of the structure of the study is given as under:

21
 Introduction

Literature Review

Research Methodology

Data Analysis and Discussion of Results

Conclusions, Implications, Recommendations and Future Research Directions

22
 CHAPTER 2: LITERATURE REVIEW

2. 1 PREVIOUS STUDIES ABOUT ADVERTISING TO PURCHASE

INTENSIONS

Advertising refers to planning and using media (mass, interactive, or personal)

to promote the sales of an advertiser’s products and services (McCorkle and Payan,

2017). It is purposed to increase the awareness of target audience regarding the

product while impacting consumer minds subtly (Godey et al., 2016). The major

purpose of advertising is to inform, persuade, and remind target markets to buy the

advertiser’s offerings (Kumar et al., 2016). Research shows that the advertising has a

direct impact on the business performance of an organization including its sales

(Kumar et al., 2016), profits (Kumar et al., 2017), brand equity (Aaker, 1992; Keller,

1993), and business value (Godey et al., 2016).

Nevertheless, research shows that the effectiveness of the advertising varies

from business to business as well as their offerings. One kind of advertising effort

might be useful to one business while the same kind could be harmful to the other

(Mansour and Diab, 2016). There are many factors affecting advertising effectiveness

including consumer tastes, values, industry norms/trends, and product/service

personality (Ansari and Riasi, 2016). Advertisers face numerous challenges while

enhancing their advertising effectiveness and they are concerned to draw the attention

of the consumer while minimizing the noise/clutter generated by competing products

and services. One suggested way to achieve audience reception and overcome noise is

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creativity. Research studies strongly support the role of creativity for advertising

effectiveness (Godey et al., 2016). Advertising is a strategic tool to represent a

business and its products to the local and regional market as well as to draw the

attention of the customers (Kumar et al., 2016). Through advertising function of the

organization, customers gain awareness about the product as well as its benefits and its

usage (Patwa et al., 2016).

Advertising is a source of communication between the firm and the consumers

regarding the value offered by company to satisfy consumers’ needs and wants

(Mansour and Diab, 2016). In contemporary business world, competitors are focusing

on integrated marketing communication and 360 degree media campaigns to reach

their target audience effectively (Woodside, 2016). Even today, the classical forms of

mass non-personal media such as television, print, radio, mailers, selling contests,

paper, direct and endorsement is being used although it is losing its effectiveness with

the emergence of digital media technologies (Ogilvy, 2013).

Advertiser can engage in advertising function using two ways: (1) performing

advertising function on its own and/or (2) hiring an advertising agency to perform

advertising activities on its behalf (Ogilvy, 2013). The most common practice is the

latter that is firms hire specialized advertising agencies that have expertise in

production, media planning, and execution to inform, remind, and persuade consumers

using traditional and non-traditional media (Heerde et al., 2013). These firms are also

specialized and creative enough to overcome the noise generated by competition

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offering similar products and services (Ansari and Riasi, 2016). At this stage,

creativity comes into play and defines the brand positioning of company in the minds

of the target customers (Ogilvy, 2013).

The Purpose of Advertising

Advertising is an important element of marketing mix. It is a multi-purpose

process directly impacting the promotional component of marketing mix. The major

purposes of advertising are but not limited to the following:

i. Increasing and enhancing customer awareness about advertiser’s offerings

(Wells, 2014).

ii. Matching the product/service offerings with personal needs and wants of

target audience (Liu & Shankar, 2015).

iii. Achieving the desired brand positioning in the marketplace (Swani, Milne,

& P. Brown, 2013).

iv. Building brand loyalty and associate positive associations with the brand

(Bernstein, Ottenfeld, & Witte, 2014).

v. Announcing new products and services (Muda, Musa, Mohamed, & Borhan,

2014).

vi. Reinforcing company’s selling proposition (Wang, et al., 2014).

vii. To stand out the noise/clutter generated by competition (Peng, Qu, Peng, &

Quan, 2017).

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 viii. Using all means necessary to reach the target audience while minimizing

wasted reach (Shao, Grace, & Ross, 2015).

ix. Enhancing brand recall (Tellis, 2014).

x. Communicating brand promises and warranties to the consumer (Diehl,

Terlutter, & Mueller, 2016).

xi. Enhancing purchase intentions (Chu et al., 2011; Van-Tien et al., 2014).

Specific advertising goals vary from organization to organization. It is the

business strategy that defines narrow and specific advertising goals of an organization

(Diehl et al., 2016). For example, an advertising goal to increase sales inquiry will be

based on the business strategy of sales development. Likewise, it has different goals in

different phases of a business lifecycle and product life cycle as well. In the

introduction phase of product lifecycle, the major focus of advertising is to create a

unique identity of the product/service in the marketing (Aaker, 1992). At this stage,

advertising spending of the company is maximum because there is a need to reach the

maximum number of target customers and to maximize the brand awareness (Kumar et

al., 2016). Therefore, all kinds of media can be used at this stage to maximize the

advertising impact (Godey et al., 2016).

As the product moves to growth phase, the focus of the advertising changes to

encouraging the target customers to prefer and buy the product relative to competitors

(Heerde et al., 2013). At this stage, the focus of advertising is to persuade the

customers that the product/service offering is the right choice for them relative to

competing brands. As customers have some awareness of the brand at this stage,

26
advertising spending reduces a little (Ogilvy, 2013). When the product moves towards

maturity stage, the focus of the advertising changes towards reminding customers

about the brand or service offering (Kumar et al., 2016). In this phase, advertising

focuses on awareness, interest, desire, and action (AIDA) as the need to refocus

awareness arises as market becomes highly competitive. At this stage, advertising

becomes more focused and creative as brands struggle to stand out the noise generated

by competition (Tellis, 2014). Therefore, at maturity stage, advertisers mostly focus on

niche and focused markets to generate maximum response while using non-

conventional media and advertising means (Woodside, 2016).

Types of Advertising

Advertising itself has changed its trends from traditional methods to non-

conventional methods (Moon and Kwon, 2011). It is easy to reach the end users on

personal level through these social sites (Fuchs, 2017). Also, targeting customers has

become more efficient through these social sites. As compared to traditional methods,

these methods are way more cost effective as well. Online advertisement works very

fast that the day that one gets started is the same day that results manifest. There is

basically neither waiting period nor long start-up process. Once an entrepreneur

initiates its business promotion on the internet, he/she can very easily get results

online. The advertising campaign can be launched successfully on multiple channels of

social media (Radtke, 2017.

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 Advertising has thousands of different channels for a business to convey

message to customers. Today’s advertisers have massive variety of choices at their

disposal. Internet has provided a lot of these, with a help of videos, websites, chat-

rooms and many more. Here are some examples which are available for the business

owner to advertise his product through these channels (Bright, 2017). The major types

are discussed as follow:

A. Above-the-Line Media Advertising

Above the line media advertising involves non-personal/mass-media

campaigns using television, radio, newspaper, and outdoor/billboard advertising

(Ansari and Riasi, 2016). It has different forms described below:

i. Television
It is the most obvious form of above the line media used for advertising.

Advertisements on television can attract millions of customers to firm’s products and

services (Liaukonyte, Teixeira, & Wilbur, 2015). It has an advantage that the customer

can watch, listen and see the different colors which attract the customer to the product

(Brasel & Gips, 2014). On the television advertisements, advertisers can convey their

message to the audience by the demonstration that how their product or service work

(Choubineh, Zarei, & Ahmadi, 2014). It is the most expensive type of advertising.

Advertising on television is sold in units (10, 20, 30, 60 seconds) and the prices vary

according to the time slot (Ansari & Riasi, 2016).

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 ii. Radio
Advertising on the radio is another very good and productive source to target

the audience (Williams, 2015). If the target audience listens to a typical station, the

advertisements on radio can bring new customers to the business (Martín-Santana,

Reinares-Lara, & Muela-Molina, 2015). However, sound has its boundaries. For

listeners, it is difficult sometimes to remember or comprehend with listening only

without having any visuals (Moriarty, et al., 2014). The best way is to craft the

message creatively while repeating it on regular intervals (Diehl, Terlutter, & Mueller,

2016).

iii. Print Media

Print Advertising is the third form of mass-media that can used for massive

non-personal communication (Brasel & Gips, 2014). Once there was a huge market of

sales through print media but now it is on the back seat in the advertising market

(Diehl, Terlutter, & Mueller, 2016). However, there is one thing that is about the

advertising on the print media, it is a kind of different and different is good (Godey et

al., 2016). When customer tires from the contemporary advertising, they return to the

print media. Print media can be divided into three sub-categories:

i. Periodical Advertising: If the ad is in a magazine or newspaper or

anything else that comes out on regular basis then it can be called

periodical advertising (Moriarty, et al., 2014). For decades, print

advertising was the best standard for advertisers and for their

customers. To get a place in the center spread of a well-known

magazine or on front or back page of the newspaper meant millions

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 of people were seen that advertisement (Bernstein, Ottenfeld, &

Witte, 2014).

ii. Brochure, Leaflet & Point of Sale Advertising: Another way to

convey your message to the customer is print the message on a

brochure, leaflet or on a flyer and distribute it into the market

(Moriarty, et al., 2014). Usually these ads have fewer chances to be

seen.

iii. Direct Mail Advertising: It is a very simple way of advertisement,

all you have to do is print company’s ad and mail it direct to the

customers (Moriarty, et al., 2014). It is a very good and productive

way to convey your message to the consumers about your products

or services.

iv. Directories
Directories are another form of above the line media that list businesses by

your name or category (Yellowpages, phone directory). The printed directories have a

drawback that they cannot be changed and updated overnight and as compared to that

online directories have a massive edge on the print directories (Wells, 2014).

Advertiser can change your details accordingly and they can up-to-date your details of

business and it can be done on a click of a button. Organizations can also add and

remove things from their list if they want to target the market then it is best to

advertise in both (Moriarty, et al., 2014).

B. Interactive Media

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 Interactive media advertising involves all sources which provide an interaction

between the viewer and the advertiser. It has different forms described as under:

i. Internet and Online Media

Internet and online advertising is one of the most obvious forms of interactive

media. Interactive media is personal and it allows one-to-one relationship with target

audience (Priyanka and Srinivasan, 2015). Using interactive media like internet and

online website, personalized and customized needs of target audience can be identified

and targeted using advertising (Ngai et al., 2015). This increases advertising

effectiveness. More importantly, advertisement feedback is obtained in real-time

relative to above the line media advertisements that results in performance

improvement and advertising contingency planning (Parveen, et al., 2015).

ii. Website Advertisements

Online advertising includes website advertisements such as banner ads, pop-

ups, textlinks, coupons, Adwords, videos, and social media linkages (Parveen et al.,

2015). Online advertising also refers to other form of digital marketing such as paid

search, search engine optimization, content marketing, email marketing, and pay-per-

click advertising (Bernstein et al., 2014). It also includes social media advertising and

Facebook advertising that will be discussed in detail in coming sections.

C. Below-the-Line Media

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 The advertising using below the line media is extremely focused, specific, and

direct relative to above the line media advertisements. Advertising using such media is

also referred to be ‘direct marketing’. Forms of below-the-line media are mentioned as

under:

i. Outdoor Billboard
There are different ways of the advertisement outside and on the go. Outdoor

billboard (an above the line media tool) can be seen alongside the roads and on

different events (Muda et al., 2014). Transit advertisement can be seen on buses, taxies

and on different transport through posters on them (Kumar et al., 2016). Big and

massive billboards can convey advertiser’s message to the public across with a big

impact. If a customer passes through advertiser’s billboard everyday on the way to

work, when they want to buy something relevant to your product, advertiser will be the

first business who they think of (Patwa et al., 2016). Sometimes, even the largest

billboard contain limited information and hard to see the web address or the phone

number (Muda et al., 2014). It is usually in the favor of advertiser to make it easier to

read the information for the customers so that they can follow up and find maximum

information about advertised business and product (Peng et al., 2017). Outdoor

billboards advertising can be very expensive, if a place near station or on a prime

location is hired (Moriarty et al., 2014). Outdoor Advertising may also contain support

media. Support media consists of different options for the business to convey their

message to the public. This kind of media includes bus and taxi seats, bus stop benches,

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aerial and trade publications. Each has its own benefits and drawbacks but they have a

wide range of audience in a local and regional market (Moriarty et al., 2014).

ii. Direct Mail

Direct mail marketing is one of another below the line strategy used by

marketers in which they send tailor-made messages to potential customers through

direct mails (Ansari and Riasi, 2016). The message is crafted as per needs of the target

and their needs are pinpointed in advertising message. Therefore, below the line

campaigns can be sometime more effective in generating response (Patwa et al., 2016).

iii. Sponsorships and Public Relations

Sponsorships and public relations is an important tool of below the line media

in which advertisers sponsor different events and press conferences (Wells, 2014). In

such conferences, the advertising message is crafted subtly and indirectly to build

product or brand image. Examples of such kinds of advertisements involve hospitals

sponsoring seminars or press conferences on a specific disease and giving out

information to generate awareness (Wells, 2014). In such events, participants or

audience do not realize that they are being advertised (Moriarty et al., 2014).

iv. Brand Activation and Direct Selling

Brand Activation and Direct Selling are tools of advertising that enable the

target audience to test the product quality in real-time simulations. Through door-to-

door selling and distribution of free samples, advertiser gift the product to target

33
audience by encouraging them to try the product for free or at a minimal costs (Kumar

et al., 2016). As a result, an advertising message is giving through the product

performance, quality, and customer services provided by representative. In brand

activation, brand events are launched in which customers are invited to test the product

or service for free at branded premises (Wells, 2014).

v. In-store advertising or shelf marketing

In store advertising or shelf marketing involves using in-store or on premise

advertising activities such as point-of-sales or discount offers to engage the target

audience (Moriarty et al., 2014). The above mentioned techniques are discussed in

brief although advertising has gained evolution to a wide range of other media.

2. 2 PURCHASE INTENTIONS

Purchase intention is a central characteristic of consumer behavior which refer

to the decision of a customer to purchase goods or services (Dodds et al., 1991; Kim et

al., 2011; Van der Heijden, 2003), chances of a person to purchase goods or services

(Schiffman and Kanuk, 2009) and making a buying choice by assessing various

substitutes of the product or service (Zeithaml, 1988; Karimi et al., 2015). Various

studies argue that when customers evaluate goods or services positively, then they

have tendency to buy a specific product or service which is termed as purchase

intention of the customers (Beatty & Ferrell, 1998; Dittmar, Beattie, & Friese, 1996;

Hausman, 2000; Rook, 1987; Rook & Fisher, 1995; Weinberg & Gottwald, 1982).

34
Purchase intention are truly the subjective judgments by the users that is obtained after

general evaluation to purchase products or services (Hsu, 1987; Dodds et al., 1991;

Blackwell et al., 2001 and Shao et al, 2004). The statement describes several points,

which are: (1) consumer willingness to consider a product or service to purchase, (2)

Purchase intention in the future, and (3) repurchase decisions. Other than that,

purchase intentions also refer to the degree of perceptual conviction a customer holds

to purchase a product or service. Moreover, satisfaction has a positive incremental

effect on brand loyalty. This satisfaction comes with the positive feedback from the

circle of influence surrounding one’s social life.

According to Putrevu and Lord (1994), if has a person has an intention to buy

backed by a will to buy any specific product or service on a specific price, it is said

that he/she purchase intention for that specific product or service. Besides the

intentions, they must also have a strong desire to buy products that are promoted, a

definite plan to purchase and positive influence on their ultimate purchase decisions.

Taylor & Hunter (2002) also agreed with the definition and dimensions of purchase

intentions provided by Putrevu and Lord (1994). According to Schiffman and Kanuk

(2010), purchase intention shows the transaction behavior of a customer after

evaluating the goods and services from various angles such as utility and price. Some

researchers treat purchase intention as a base of ultimate decision. They argue that

without proper purchase intention, the actual purchase is not possible because it show

the likelihood behavior of a customer to make ultimate purchase (Alford and Biswas,

2000; Wang et al., 2012). They suggest that in order to increase purchase intention, the

35
corporations must have to make adjustment in the price and promotion of a product

(Alford & Biswas, 2000) and advertisement contents (Johnson and Russo, 1984).

Purchase
Advertisement
Intention

Hence, the researcher concludes that purchase intention is the initial step towards the

ultimate and actual purchase of a product by a customer and the purchase intention can

be enhanced through proper advertisement of the products for creating awareness

among the potential customers.

Relationship between Facebook Advertising and Purchase Intentions

The influence of Facebook advertising on one’s intentions to purchase are

discussed by many scholars as evidenced by Hsu and Hsu (2017), Boerman et al.,

(2017), Qazi et al., (2017) and many other recent papers (Christodoulides et al. 2012;

Hajli et al., 2017; Leong et al., 2017; Phua et al., 2017; Smith et al. 2012; Taylor,

2013; Villanueva et al., 2008). Purchase intentions of customers are driven &

motivated by a relationship of price, quality, and perceived value associated with the

brand (Dodds and Monroe, 1985). Various studies consider alignment of

advertisement with needs and wants of the target customers that results in stimulating

purchase intentions of potential customers (Ducoffe, 1996, (Pollay & Mittal, 1993,

Brown, Pope & Voges, 2003, Dahlen, 2001. Facebook advertisement has positive

36
impact on purchase intentions (Chu & Kim, 2011). An SNA successfully relating the

company offerings with the users’ needs and wants, creates positive associations of a

brand and purchase intentions (Van et al., 2014). Jung et al., (2015) narrate that mostly

an advertisemnt on Facebook match company offerings with customers’ needs &

wants more effectively than to traditional advertising because it is easier to customize

advertisement than to traditional advertising (Yang, 2012; Leung et al., 2015).

Facebook advertising offers users or consumers the opportunity to interact

actively with the adverts on links allowing them to ‘‘like’’ and ‘‘share’’ and also view

who else or which friends liked or shared the same adverts. In this way, company and

consumers are directly involved with each other. Some researches states that social

media sites such as Facebook act as a credibility tester of brands. Lee and Kim (2011)

found that consumers review other consumer’s messages on social media as being

motivated by altruism, unlike advertising generated by advertisers. In today’s

corporate world, the success or failure of any product or brand hinges on public

perceptions and relations. The success of advertising should be measured through

consumers’ evaluations of the interest aroused by the advertisements. Facebook creates

wide platforms for viral online recommendations (Smock, Ellison, Lampe, & Wohn,

2011). This encourages organizations to willingly spend a reasonable portion of their

budgets on analyzing procedures to determine potential customers and target them

with advertisements on Facebook (Falls, 2009). However, organizations are shifting

from push advertising to trust-based advertising, in which advertisers engage their

consumers with their brands and stimulate word of mouth (WOM) promotion (Knight

37
& Kristina, 2007). These WOM are developed through Facebook, which positions

Facebook advertising as an effective means to enhance the brand image of any product

or service (Kaplan & Haenlein, 2010)

Most of the modern advertisers establish “Facebook Pages” for the purpose of

advertising various products online (Lipsman et al., Bruich 2012). For 2014, Super

Bowl ads, 58% contained hashtags (#), that is increase from 50% in 2013 (Novet

2014). A study by DEI Worldwide (2008) found 70% of consumers visit social media

sites for updates and up to date information for any product or service, 49% of these

consumers were influenced by the information they found through the social media

sites for making buying decisions, 60% pass along information to others online and

were transmitting the information to different sources, and 45% of those who searched

for information via social media sites engaged in word of mouth. Stambor 2014,

almost 25% of U.S. internet users have made a purchase on a retail websites after

clicking from a social media sites. Certain social media sites produce more lucrative

purchases than others, with Pinterest’s average order value of $123.50 almost three

times larger than a Facebook order (Stambor 2014), that shows the Facebook enjoys

more than $40 as an average order value. Regarding its professional potential, in the

second half of 2011, about 2.5 million websites integrated with Facebook, including

over 80 of comScore’s top 100 US websites and over half of its top 100 global

websites (www.facebook.com, 2011). These numbers highlight the importance of

Facebook as a most important communication tool for both end users and

organizations. For entrepreneurs, social media platforms can be used as a valuable

38
mean for communicating with their targeted customer groups (ANKENY, 2011a;

FORBES, 2011). The research reveals that up to 60 percent of the Facebook

advertising market is made up of small and mid-sized businesses (ANKENY, 2011b).

There are various advertising strategies companies use to target Facebook users

who might be potential customers. One specific way of establishing a social presence

and engaging customers is to create brand fan pages on Facebook. Companies can

place brand posts containing photos, videos, messages, quizzes, anecdotes, and other

materials on these pages, while customers can become fans or followers of these brand

fan pages, and indicate that they like the brand posts, comment on, or forward them

(de Vries et al. 2012). The reviews, recommendations and likes results in the online

Word of mouth for the followers as well. These dedicated brand pages offer the

followers to express their liking and passion for the brand and in this way the fans are

united their shared interest in the brand (Kozinets 1999). Brand fan pages also

showcase part of the customers’ relationship with the brand (McAlexander, Schouten,

and Koenig 2002), help to strengthen the brand–customer relationship (Muñiz and

O'Guinn 2001), serve as a source of information, and sometimes provide social

benefits to the fans (Bagozzi and Dholakia 2002; Dholakia, Bagozzi, and Pearo 2004).

A recent study of Qazi et al., (2017) found a direct relationship between the facebook

advertisement and purchase intention of mobile facebook users.

39
2. 3 SOCIAL NETWORKING ADVERTISING WEBSITES

Initially, internet was limited to desktop computers. As the technologies, have

evolved and the mega and heavy computers are shrinking to small palm top machines

it has become easy to stay on line (Shao, 2009). Mobile devices are playing vital role

in maintaining this connectivity. In the beginning of this millennia, affordability of

such devices was limited. Soon many companies jumped in to the race for developing

smaller and cost effective devices (Fuchs, 2017). In this way now people have much

advanced mobile sets and on a very affordable price. The service providers have also

shifted their trend from voice to data and are offering more attractive data packages.

Similarly, the social sites have adapted to these smaller devices. Now, almost every

site is accessible on smart phones. This has increased the connectivity and presence on

the sites as well (Fuchs, 2017; He et al., 2017; Moon and Kwon, 2011).

This advancement in technology of the current era has significantly changed

the concept of online and internet advertising. With the launch of social media

websites, the corporations and advertisers have changed their focus from general

advertisement techniques to the specific advertisement techniques and medium for

getting appropriate results. The corporations can advertise their products or services on

the social media which can enable them to reach potential customers around the globe

(Maina, 2016). This social media not only provides a global reach to the potential

customers but also provides an interactive and viral means advertising. The reach and

popularity and interaction of social media helps corporations in getting positive results

40
on social media websites in the form of informing, persuading, obtaining reviews and

reminding the potential customers about their products or services (Ngai et al., 2015;

Priyanka and Srinivasan, 2015).

There are a lot number of social networking websites in the world. However,

the popularity, reach, number of users and frequency of usage of social networking

websites matter a lot when we see in the perspective of advertisements by the

corporations. Hence, preparing a list of important social networking websites with the

above mentioned concerns can be handy for the corporations interested in social media

advertising. According to Maina (2016), there are top twenty (20) popular social media

websites being used in the world. He explains that these social networking websites

include Facebook, Twitter, LinkedIn, Google+, Youtube, Pinterest, Instagram, Tumblr,

Flickr, Reddit, Snapchat, WhatsApp, Quora, Vine, Periscope, BizSugar, StumbleUpon,

Delicious, Digg and Viber respectively. The author recommends these websites for

advertising irrespective of size and nature of business. But, the reach, popularity and

associated costs with the social media websites are not equal. Therefore, a corporation

has to decide about the ultimate advertising on some certain social media

website/websites to obtain maximum benefit from advertising.

Comparison of Social Networking Advertising Websites

It is very useful if we can make a useful comparison of social networking

advertisement websites in terms of number of users and popularity. The higher the

number of users are, the higher effectiveness of an advertisement is there. Among all

41
types of social media advertising, facebook advertising is considered to be the most

important type of advertising due to its usefulness, reach, cost and achievement of

desired results. This comparison would be very helpful for the corporations in deciding

a specific or some specific social networking websites as their planned advertisements.

Maina (2016) has provided this useful comparison of top twenty (20) social

networking websites in terms of users, features and popularity. This comparison is

briefed as follow:

i. Facebook

Facebook is the most popular social media network website on the Internet

with the highest number of users. Since its inception in 2004 up to 2016, it has reached

more than 1.59 billion monthly active users around the globe. This global reach and

popularity has attracted the corporations to advertise their product and services

irrespective of their nature and size of business. Currently, more than one (01) million

business enterprises are advertising their products and services on facebook. In

comparison to other social media network website on the Internet, it is considered and

rated best by the corporations.

ii. Twitter

Twitter has limited the users to 140 characters for an update or post. This can

be an important hurdle for the corporations if they want to advertise here on twitter.

Surprisingly, this has been proven wrong by the users and the corporations. There are

more than 320 million active monthly users on twitter, since its inception in 2006, who

pass on information to others with the limitation of 140 characters. Twitter allow users

42
to share video, picture and other links which may carry a huge advertising information

for the potential customers around the world. In spite of sharing advertising content,

corporations can also see customers’ reviews, answer questions, and release latest

news updates.

iii. LinkedIn

It is an important social networking website which was launched in 2003.

There are more than 400 million registered users on LinkedIn who are also

professionals around the world. Most of the professionals in the world create LinkedIn

account in order to be in touch with this most popular social media site for searching

people in similar industries or interests with the purpose of sharing professional

interests and information. Due to the above reasons, this website is available in 24

languages of the world.

iv. Google+

It was launched in December, 2011. After its launching, it has joined various

big leagues and consequently registered 418 million users who are also active as

reported in December, 2015. It is placed as number four among the most popular

social media websites. It has feature which make it as must-use tool for small business

enterprises. However, big business enterprises are also using it as a medium of

advertisement.

v. YouTube

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 It is an important type of social media website launched in 2005 which uses

videos as its contents. In the category of video-based social media website, it is

considered as the largest and most popular social media website. As far as the number

of active users are concerned, more than one (01) billion visitors visit the website on

monthly basis. One another surprising fact about YouTube is that it is the second most

popular search engine being used around the world coming after Google. The

corporations advertise their products and services on YouTube in the form of links and

videos. Such huge number of visitors makes it an attractive place to advertise to the

corporations.

vi. Pinterest

Pinterest was launched in 2010. It is deemed that Pinterest is a newcomer in the

field of social media and social networking website. However it has more than 100

million users. It displays digital bulletin boards where the business enterprises can pin

their advertisements. As per the classification of users is concerned, more than half of

the users of Pinterest are women. Hence, a business engaged in products or services

which are related to females must not miss this social media networking website as an

opportunity and medium of advertisement.

vii. Instagram

Instagram was launched in 2010. Like Pinterest, it also consists of visuals as its

contents. This social networking website has more than 400 million active users. The

website is owned by the parent company Facebook. Hence, a majority of almost 95%

of Instagram users are also the users of facebook. This website provides extra features

44
of editing videos and images to be uploaded by the users on Instagram. Most of the

users share posts relating to their hobbies such as travel, fashion, food and art. Hence,

the corporations involved in similar type of businesses are keen to advertise on this

social media and social networking website.

viii. Tumblr

Tumblr is a very complex social networking website which was launched in

2007. It is hosting more than 200 million blogs which have very interesting features

helpful for advertisements. Various format for sharing information are available in

Tumblr which make it unique than other social media websites such as quote posts,

chat posts, video posts, photo posts, and audio posts. These vibrant feature and wide

variety of format through which the advertisement contents can be shared by the

corporations make it an attractive choice for advertisement.

ix. Flickr

This social media website is an online image and video hosting platform which

was launched in 2004. It has more than 112 million active users who share at least one

(01) million pictures/photos on daily basis with its footprint in more than 63 countries.

Such a huge image and video sharing feature make it a good for the corporations with

reference to advertisement of their products and services.

x. Reddit

This social networking websites was launched in 2005 to share news and

entertainment. Currently, it has 36 million registered accounts and 231 million

45
monthly visitors. An interesting feature in Reddit is that if a post gets more positive

votes, that post is appeared in the top category and vice versa. This website provides a

platform for corporations to advertise their products and services.

xi. Snapchat

This is an application software which allows images/pictures/photos messaging

which was launched in 2011. By the end of May 2015, more than 100 million daily

active users. Moreover, round 18% of various social media users also use Snapchat.

This app provides a vibrant platform for corporations to advertise their products and

services.

xii. WhatsApp

WhatsApp is an application software which allows instant messaging, audio

messaging, image messaging and video messaging to the others who also have

installed WhatsApp on their smartphones, personal computers or tablets. The

application was launched in 2010 and it has more than one (01) billion active users

who communicate with other on daily basis. This app provides good platform for

corporations to advertise their products and services.

xiii. Quora

This is a question-and-answer social media website which was launched in

2009. It had more than 80 million monthly unique visitors up to 2016. This website is

also used by the companies to advertise their products and services.

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 xiv. Vine

This is a video sharing social media application software which was launched

in 2012. It allows users to share short video clips of six (06) seconds. It had more than

40 million users up to 2016. Business enterprises around the world are getting benefit

by advertising their products and services on vine.

xv. Periscope

This is live video-streaming mobile application which was launched in 2015.

Periscope declared its user accounts more than 10 million up to December 2016. This

application is being used by various business organizations as a medium of advertising.

xvi. BizSugar

This is a social networking website, launched in 2007, specially designed for

small business owners, entrepreneurs and managers. This business oriented social

networking website allows its users to share videos, articles, blog posts, podcast,

review and vote by the other users. This is used by the small business enterprises as a

source of advertisement.

xvii. StumbleUpon

This is also a business oriented discovery engine which was launched in 2007.

This social networking website collects and recommends useful information for its

users. It had more than 25 million users, more than 80,000 publishers, brands, and

other marketers have used its “Paid Discovery” feature to promote their businesses up

to 2016.

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 xviii. Delicious

This is a social networking website which was launched in 2003. It bookmarks

the websites to discover, store and share them as desired by its users. By the end of

2008, it had bookmarked 180 million URLs and acquired more than 5.3 million users.

Such a unique feature makes him prominent and an attractive website for

advertisements by the companies.

xix. Digg

This is a social media website, launched in 2004, which aggregates the news

with a curated front page that then refines stories for its users. These stories cover

issues of all fields which can also be shared to other social media networking websites

like Facebook and Twitter. The company claimed to have more than 11 million active

monthly users. Off course, the businesses also advertise their products and services on

it.

xx. Viber

Viber is an application software which allows Voice over IP (VoIP), instant

messaging, audio messaging, video messaging, and image messaging for smartphones.

This application was launched in 2010. In April 2014, it had had round 600 million

registered users and 230 monthly active users. This application is also used by the

companies to advertise their products and services.

After this comparison, the researcher concludes that Facebook is the most

popular and most widely used social networking website being used by the various

48
people and organizations in the world. It also has the facility of sharing information in

almost all formats such as text, audio, video, instant messaging, and images. Hence,

the researcher has chosen Facebook as the major medium to be used by the companies

for advertising their products and services.

2. 4 PREVIOUS STUDIES ABOUT FACEBOOK ADVERTISEMENT TO

PURCHASE INTENSIONS

According to Maina (2016), Facebook is the most popular social media website

in terms of total number of users and name recognition across all top twenty (20) most

popular social media platforms. Ellison et al., (2007) narrates that facebook has

become a part of almost everyone’s daily life. People are habitual of using this site for

their updates and even gossips. Many believe that this site is playing a very great role

in communications as well which fulfils the human desire of sharing his/her feelings

and thoughts which he/she wanted others to listen. We can say Facebook has become a

global white board where people can write and express whatever they want. Kelley et

al., (2011) narrates that Facebook is equipped with a feature that one can chose to

follow or join the People having similar believes, liking, political followings or even

lifestyles. This site is part of social media as it influences masses to interact with each

other in groups and one can form a network of people living around with similar

habits, liking or disliking.

Most of the people start to believe and trust the sites on social media as they

are interacting to them on daily basis. Facebook is one of those sites which has

49
powerful impact on its users. (Dekoulou et al., 2017; Shao, 2009). Facebook has

brought internet advertising beyond mere website and social media advertising (Chu,

2011; Srinivasan, 2015). Gibs and Bruich (2010 and 2012) have categorized Facebook

adverting into three distinct dimensions of homepage impression, organic impression

and homepage impression. While advertising on Facebook, the companies face the

major challenge of security restrictions by the facebook users (Steel and Fowler,

2010). Hence, the advertising companies has reached to the solution of this problem.

They have categorized the places through which they can show their ads on the

facebook such as users’ News Feeds, friends’ likes, friends’ experiences etc. It is

interesting to mention here that all three types of advertising (social impression

advertisement, homepage impression advertisement and organic impression

advertisement) are available in both the desktop and mobile versions of facebook

advertisement (Marshall and Krance, 2014).

Facebook Purchase
Advertisement Intention

2. 5 MOBILE FACEBOOK ADVERTISING

Advancement in mobile phone technology has brought a revolution in the use

of facebook more than ever before on desktop version (Rowles, 2017). The desktop

version computers created many limitations for the users such as sitting in home or a

50
place specifically spared for the use of desktop computers, electricity cable and power

issues. However, with the invention and advancement of smartphones, these

limitations have been removed to a great extent. As far as facebook usage is

concerned, desktop version (PCs) facebook had the similar issues. However, after the

advancement in mobile technology, the users have to download facebook application

in their mobiles and can run facebook on just one click without the tension of a

specific place, cables and power issues. Now, they are tension free about the

electricity, place and time and can use facebook as per their desire (Rowles, 2017).

Since the inception of facebook, there are no signs of slowing down the use of

facebook in future. As the consumers has embraced the use of mobile devices, Mobile

version of Facebook is considered to be the undisputed leader of advertising of the

current era (Katz, 2016, Nanigans, 2016). By looking into the facts of such a massive

base of 1.55 billion monthly active users of facebook in 2016, CEO Mark Zuckerberg

is taking three major advertising business objectives as 1) capitalizing the Facebook

shift to mobile version, 2) encouraging the marketers to grow in large number, and 3)

ensuring that the advertisement on facebook are more relevant and effective

((Nanigans, 2016). According to the report of Nanigans (2016), there are more than

half of the Facebook users who use the sole mobile device to access facebook. The

Desktops and personal computers (PCs) are vanishing if we analyse their use in

accessing facebook. Hence, advertisers have to concentrate on mobile Facebook for

cultivating advertising results through smartphone facebook. The report also predicts

that facebook advertisements through mobile version would surpass $100 billion and

51
account for more than 50% of all other types of digital advertisements expenditure in

the world (Broeck et al., 2017). According to the studies of Duggan et al., (2015) and

Parveen et al., (2015) 71% of the social media users are Facebook users and 70% of

the Facebook users check their profile pages at least once daily while 45% of the users

check their profile pages several times a day. In 2013, there were more than 10 million

users of Facebook in Pakistan comprising of 8 million male and 3 million female; and

approximately 6 million users between the ages of 18-24 (Nasir, 2013). According to

Pakistan Telecommunication Authority (PTA), there were 136.4 million mobile phone

subscribers in January 2015 out of which 10.34 million users were reported as 3G

users in February 2015. Out of 10.34 million 3G users, 3.41 million users (33%) use

Facebook on their mobiles (Prime Minister's Office Board of Investment, 2015).

Advertisement on mobile facebook has become important medium for the

advertisers and organization with the wide use of facebook on mobile phones around

the world (Jung et al., 2015; Qazi et al., 2017; Srinivasan, 2015) Like desktop version

of Facebook adverting, mobile version of facebook advertising has the similar ways of

advertising such as homepage impression, organic impression and homepage

impression advertising (Gibs and Bruich, 2010 & 2012). However, the layout and

screen size have created dissimilarity of the advertisement on both versions. All these

three types of advertising on mobile version have their specific places through which

the companies can display their advertisements. As the mobile version of Facebook

has various positive characteristics, it has become an attractive platform for advertising

by the corporations around the world. It provides an easy access to the right people,

52
capture their attention and get desired results at low costs on mobile version of

facebook. The huge number of mobile facebook users around the world has

necessitated the corporations to advertise on this version of facebook too. The users of

mobile facebook users in the world are around one billion in the world. The people

you want to reach are here. There are 0.5 billion people who use Facebook every day

on mobile (Facebook, 2017). Another important feature of mobile facebook is that the

advertisements are easy to create and costs lower than desktop version and any other

social media advertisement. Facebook (2017) claims to have more than 1.8 billion

active users every month and 20% of total time used on facebook in the US is from the

mobile.

The term “impression” is used to measure the frequency of watching a post by

the various mobile facebook users (McAndrew and Jeong, 2012; Neiger et al., 2012).

Impression, hence, is an important indicator of effectiveness of mobile facebook

advertisement. In order to understand the working of the facebook advertisement one

must has to understand the term “impression” which refers to how many times a post

seen, and how frequently users are exposed to that particular content. So, the

frequency of ads displays on facebook is measured in Impression which is a key

metric for measuring Facebook performance (Byker et al., 2016; He et al., 2014; Hong

et al., 2017). Impression reveals how many users an ad is reaching and how frequently

those users are seeing the ad. Paid advertising on Facebook can also drive impressions

for a particular advertisement by the marketers. They know the exact factors which are

important and serve as driving force for a particular brand advertisement exposure on

53
Facebook. In the current era, the mobile version of facebook is frequent in the users

than the desktop version. However, the cost of mobile facebook advertisement

impressions is much higher than in desktop version (Khan et al., 2012; Sieber and

Seager, 2017).

There is a key difference between reach and impressions of mobile facebook

advertisement (. Reach simply refers to the people who see an advertisement content

on mobile facebook while the impression refers to the number of times an

advertisement content is displayed to the people. This means that when ten people

each see an advertisement content twice, the result will be twenty impressions (times

displayed) and a reach of ten (unique people who see it). In spite impressions and

reach, the advertisers may also consider the clicks by the mobile facebook users

irrespective of that the click are not shown in Stories of News Feed (. These clicks get

factored into the News Feed algorithm (Werbin, 2017). If the clicks are large in

number, the advertisement content will continue to News Feeds of the mobile

facebook users. The advertising companies ask the corporations to view the “click-

through rate” which is established by them for the advertised content on facebook so

that they can understand and measure the frequency of engagement with their

advertisements on mobile facebook. By doing so, the corporations are also in a

position to view the profiles of the people who actually see and engage with their

advertisements.

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 An important point to consider here in the context of impression is that there is

a difference between served-impressions and viewed impressions (Bounie et al., 2016).

The viewed impressions on mobile version of facebook have their value for the

advertisers and the corporations. That is why the corporations, advertisers, publishers

and advertising industry groups use appropriate ways to increase the impression of a

mobile facebook advertisement. According to Byker (2017) there is a general

consensus on the opinion that viewed impression is the better method to measure the

delivery of an ad (advertisement). This means that the higher the viewed impressions

for an ad, the greater the chances to drive value for an advertiser. Whereas the served-

impressions only refer to the circulating of an ad (advertisement) irrespective of its

viewership. The method of viewed-impression adds an extra layer of analytical rigor,

as well as common sense. They more accurately define delivery and help ensure that

people have seen the ads they’re supposed to see (Bounie et al., 2016; Marder et al.,

2016; Qazi et al., 2017).

Mobile
Purchase
Facebook
Intention
Advertisement

Difference between Mobile Facebook & Desktop Facebook

Facebook is an advertising-supported service that is free to users. Facebook provides a

large amount of information which many users have difficulty keeping up with; for

these people, mobile Facebook can be extremely useful as it is fast to load and update,

55
and cuts out much of the extraneous content of the desktop site. Facebook gamers may

be disappointed, as Facebook apps will not work in mobile browsers; on the other

hand, people looking to spend less time on Facebook may appreciate the absence of

temptation. Advertisers who wish to reach Facebook users should consider whether

they need to be part of a mobile experience, as that will determine the type of presence

they purchase on Facebook (Davidson, 2016).

Facebook debuted as a website designed for desktop computers, but is

increasingly accessed from mobile devices. For these users, Facebook provides both a

mobile-optimized Web site as well as dedicated applications that directly access the

site. Facebook can be reached from a mobile Web browser or from a dedicated

Facebook app. Their appearances are very similar, but the Facebook app is generally

faster and more responsive to user taps. Facebook also provides ancillary applications

that connect to specific Facebook services, such as the Messenger app that enables IM

and longer messaging. On desktop Facebook, these features appear in pop-up windows

on the edge of the overall interface. Mobile Facebook is substantially different from its

desktop counterpart. Advertisements are liberally displayed in desktop sidebars, but

are mostly removed from the mobile interface. However, Facebook allows advertisers

to purchase premium status updates that are pushed to both mobile and desktop

Facebook users. These updates appear as part of the main content. In desktop version,

the traditional Web browser, Facebook uses a three-column layout that displays the

primary content in the center column, with navigation and advertisements in sidebars

on the left and right sides of the window. Mobile Facebook does not have as much

56
screen real estate to work with, so it displays only the main content, filling up the

entire mobile window. This provides a streamlined view of Facebook for people who

only wish to check status updates, but omits a great deal of content available on the

desktop.

The marketers have realized the fact that the majority of your audience will

come from mobile devices. Hence, they have advised the corporations to keep the

following things in their minds while designing their mobile Facebook advertisement

(Heine, 2014). They ask advertisers to use short copy ads because ads containing

lengthy copy gets truncated on mobile devices to make sure that the message is not

getting cut off on users’ phones. Copy length depends on the type of an advertisement.

Checking and complying with “Facebook’s Ads Guide for ad specs” is highly

recommended in this regard. They ask to use mobile friendly landing pages and thank

you pages. If an ad is going to send traffic to an external landing page or website,

make sure that those pages or websites work properly on mobile devices. Heine (2014)

further recommend to use attention grabbing images. On the go, people scroll through

their newsfeed so use a photo that captures their attention and makes them stop, look at

the ad and take the desired action.

Why Mobile Facebook Advertising?

According to Lockard (2016), in the current time, smartphone and tablet take

60% of all digital media time being used by the users. Facebook incorporation has

revealed in Q4 of 2015 Earnings report that it has earned 80% of advertising revenue

57
came from mobile and 93% of total Facebook advertising spend was from mobile

advertisements. As the mobile facebook advertisement spending is significantly

higher, it means that the performance is also better than desktop version. Mobile

Facebook has a higher click-through rate and a lower cost per click (CPC) than

desktop (Hein, 2014).

How Desktop-vs-Mobile Versions Affect Facebook Marketing

For brands on Facebook, the fact that there are essentially two different versions of

Facebook can get a bit confusing at times (Johnson, 2016). There are pros and cons to

both desktop and mobile to keep in mind, especially when it comes to advertising.

According to Heine (2014) and Johnson, (2016), the following comparative points of

pros and cons will make some clarity in this regard:

Pros of Desktop

i. The desktop version of Facebook enables you to reach a larger audience

overall. This is due to the fact that, even with an emerging mobile market, the

majority of Facebook users still access the site through desktop.

ii. When it comes to sales, tablets have two to three times higher commerce

conversion rates than smartphones, rates approaching desktops, plus they

deliver to households with higher discretionary incomes spending roughly 20

58
 percent more per checkout than desktop, so we encourage clients to optimize

their sites for tablet.

iii. This is an obvious one that was brought up in desktop's favor that it has larger

screen. Advertisers should remember that people will watch the best screen in

front of them, and therefore marketers must be present in every environment if

they hope to reach a busy audience that doesn't discriminate between devices.

iv. Desktop is still the superior model in terms of features and customization and

control. If you want ultimate control over your posts, as in the length, format,

etc, then desktop benefits you more.

v. In terms of user options, desktop makes for easier engagement and you’re most

likely going to reach more desktop news feeds of more of your base when you

make a post or target an ad.

Cons of Desktop

i. Facebook is ultimately going to place more of its focus on mobile. This may be

a year or two down the road, but desktop is going to play second fiddle in the

Facebook band.

ii. For advertising, you’re ultimately going to spend more money when you create

ads targeted desktop. The positive here is that you’re reaching more people, but

many businesses simply cannot afford the investment needed to reach so many.

59
iii. While it’s easier to physically engage with desktop users, the ads themselves

aren’t as engaging. They’re not as trusted, they’re not as popular, and they’re

not delivered in the same fashion as a mobile ad.

Pros of Mobile

i. The biggest positive here, obviously, is that the mobile market is going to

explode in the coming years. We’re still climbing up towards the peak.

ii. Users give 100 percent attention to their mobiles unlike the desktop and share

of voice and provides the highest impact to consumers, taking over the entire

screen.

iii. By taking advantage of the variety of data available from mobile devices, as

well as the intimate relationship users have with them, marketers have a greater

potential to deliver the right message to the right consumer at the right moment

and more effectively influence actions and decisions.

iv. The mobile drives better results than desktop version of facebook. A user can

see mobile video delivering better view-ability, completion rates and user

engagement than video running on desktop. Consumers have personal, intimate

connections with their mobile devices, and mobile video is delivered full-

screen without all the distractions.

v. Mobile Facebook makes it a lot easier to target someone with an ad directly.

Some businesses wish to employ marketing methods that are more personal,

and blending mobile marketing with Facebook advertising gives a marketer an

easy and direct line of communication with an individual.

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 vi. For the mobile Facebook ad, the click-through ratios are higher, the ads bring

in higher engagement numbers, they cost less, and users take more actions and

are more easily guided with these types of ads.

Cons of Mobile

i. When you’re using mobile Facebook to market, you’re reaching a market that’s

more person-based instead of people-based. You’re reaching out only to mobile

users and not the Facebook population in general.

ii. The sheer number of mobile devices you may need to format material for can

create a lot more work for something that may not pay off as much as desktop.

Not only do Smartphones differ in terms of OS, but you have to contend with

other mobile devices as well.

iii. The ad options on Facebook mobile are more limited. Desktop is still the more

feature-rich environment, and while that is inevitably going to change, mobile

doesn’t quite have the features as of yet to bring in more marketers to force

Facebook’s hand.

iv. Since the overall engagement on mobile ads is higher – people tend to like,

comment and share more on their phones – this is something to have in mind

when creating the ads. Try to make posts that are likable and sharable as they

are and tie sponsored stories to them.

v. In general, you should see mobile advertising as an opportunity to strengthen

your brand and spread the word about your business.

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Types of Mobile Facebook Advertising

The corporations and advertisers use mobile facebook as a medium of

advertising. The advertising agencies have been using various places available

specifically for mobile facebook advertising. Gibs and Bruich (2010 & 2012) have

explored various places which can be used for facebook advertising. They described

three distinct ways of mobile facebook advertising to reach to the users. The authors

have named these ways of advertising as the types or dimensions of facebook

advertisement on mobile version. Gibs and Bruich (2012) described these types as i)

homepage impression, ii) organic impression and iii) homepage impression. The

details of these types of mobile facebook advertisements are mentioned as under:

i. Social Impression Mobile Facebook Advertisement

Social impression advertisement is a type of Social Impression Mobile Facebook

Advertisement which is shown to the facebook users with social context such as the

names of a user’s friends who also like the advertisement, product or service (Gibs and

Bruich, 2010). An advertisement on mobile version of facebook may be containing

information about social circles of facebook users (Ellison et al., 2007). Such social

affiliation depicted in an advertisement is called social impression advertisement on

mobile facebook. Social impression advertisement on mobile version of Facebook

provides peer recommendation and the earned media portion. In this type of

advertisement on mobile facebook, an advertisement is displayed on facebook with

social information of Facebook friends who like, or engage with a specific

62
advertisement. This advertisement is displayed in the right column of facebook pages

along with the social circle information about a Page, event or application such as

friends connected with specific advertisement, Facebook Page or an event. The

effectiveness of social impression facebook advertisement is measured in terms of “

Social Metrics” (Gibs and Bruich, 2010). This metrics measures the Advertising

Performance of an ad if the social information or social context is added to an

advertisement (Li et al., 2012). In social impressions, social clicks are deemed

important which refers to the number of times an advertisement is clicked with social

context such as with information about a viewer's friend(s) who connected with your

Page, event, or application. This may also be shown in the form of percentage (social

%). It is interesting to mention here that social impression Ads can also appear in both

the desktop and mobile versions of facebook advertisement in News Feed at the right

column. However, mobile applications advertisers can also use Audience Network to

show their advertisements (Smock et al., 2011).

Social impression facebook advertisement offers the ad with liking form the

friend of a person being exposed to the advertisement (Swani et al., 2013). In this type

of advertisement, the products which are liked by the users’ friends are advertised to

the potential customers. Hence, corporations collect information about a person’s

friends who likes an advertisement. Afterwards, the friends of that particular users are

also exposed to that specific advertisement with showing that their friend also ‘like’

this product or service. An advertisement with such social information such as liking

by the facebook friends, induces the exposed persons to take keen interest in knowing

63
full features, availability and price of that product or service (Dodoo, 2017; Kelley et

al., 2011). Moreover, such advertisements already contain detailed information about

the product or service being advertised in an advertisement. Hence, there is great

likelihood of creating purchase intentions in an advertisement viewer. A social

impression facebook advertisement that is clicked by the persons exposed to them,

creates further exposure with a chain effect to the users who also have different friends

in their lists (Steel and Fowler, 2010). Hence, the social percentage (%) and social

click rate of a social impression mobile facebook advertisement (ad) is increased

which was also concluded by (Gibs and Bruich, 2012).

When the advertiser is conveyed about the social impressions mobile facebook

advertisement, they are told about the frequency an advertisement is shown to the

Facebook users with at least one of their personal friends showing as “liking” the page

or attending the event. Social impressions also describe the number of clicks an

advertisement receives and the personal friends of the users take an action upon that

advertisement. However, this is possible if the advertisement is within the domain of

facebook rather than an external link (Vahl, 2011). Social impressions mobile

facebook advertisement may also use the profile picture or the name of a user’s

facebook fiend paired with an advertisement to show that friend’s activity on

Facebook. However, the general public may not see profile picture or profile name

shown with the advertisement due to privacy setting of a user and the privacy setting

of the person who is referred in the advertisement. Using the profile name or profile

picture directly in an advertisement is against the advertisement policy of facebook

64
(Facebook, 2017). In social impression mobile facebook advertisements for Pages,

events and applications, the user watches the stories about the actions his/her friends

have taken regarding that advertisement (like or comment). Generally, facebook

doesn’t share information with advertisers, partners or advertising agencies through

which they can identify a user personally (name or email that can be used to contact a

user or identify who he/she is) that person allow facebook to do so. In case of

disliking, the user can hide the advertisement from his/her news feed, unfollow the

advertiser, and report to facebook about community standards’ violation for redressal

of complaint. Hence, the advertisers use friends name in a different way such as a user’

s friend is interested or has liked that advertisement. In social impression mobile

facebook advertisement, the special focus on social circle of an advertisement viewer

is targeted and used for convincing him/her to buy a particular product or service

(Ellison et al., 2007; Gibs and Bruich, 2010). The tagged names or names of friends

mentioned in a mobile facebook advertisement increases the likelihood of acceptance

of social influence.

ii. Organic Impression Mobile Facebook Advertisement

Organic impressions refer to the stories shared on facebook by the user’s

facebook friends about the experience of using a product or service (Gibs and Bruich,

2010). Such stories on Mobile Facebook advertisements show likes and ultimate

purchases by the friends with detailed information about all the features of the

advertised products. Organic impression mobile facebook advertisement is an

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advertisement for which the contents are displayed in a user’s News Feed, ticker, or on

advertisers’ page (Gibs and Bruich, 2012; Jung et al., 2016). Most of the times, an

advertisement of a product or service in this form of mobile facebook advertising is

from unpaid sources. Like social impression mobile facebook advertisement, the

effectiveness of this advertisement is also measured in terms of impression called

organic impression or organic reach. However, it also differs from social impression

mobile facebook advertisement in such way that the organic reach only takes the total

number of “unique people” who are exposed to the advertisement through unpaid

distribution on facebook. This means that if someone sees an advertisement more than

once, there will be the only one organic impression or organic reach the advertisement

(Facebook, 2017; Gibs and Bruich, 2012).

The advertisers and corporations try to improve organic impressions by using

Facebook’s EdgeRank algorithm for reaching maximum ‘unique users’ of mobile

facebook (McGee, 2013). Gibs and Bruich (2012) suggests the organizations to focus

on new accounts of active mobile facebook users, engage already likers, promote

shareable content, and limit the negative feedback of the viewers on an advertisement

of a product or service. Some of the organizations use paid mobile facebook

advertising sources to increase organic impressions by making users see the

advertising posts irrespective of their wish. The mobile facebook users may be

compelled to see an advertisement of they may be exposed to a link which contain that

specific advertisement about a product of service. This situation has risen the concern

for privacy to the mobile facebook users (Steel and Fowler, 2010). Hence, compelled

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exposure and hidden link advertisement may bring negative effects for the advertisers

and corporations.

In organic impression mobile facebook advertisement, the advertisement show

that the user’s friend(s)s not only like the product or service being advertised but also

purchase those products or services. But in organic impression, the effectiveness of an

advertisement depends upon the new or unique people who see the advertisement for

the first time (Facebook, 2017). Organic impression mobile facebook advertisement

not only show that the friends of a mobile facebook user like but also have actually

purchased or used the product or service being advertised (DeMers, 2015). This

feature of an organic impression mobile facebook advertisement creates an attraction

and enhance chances that the viewers will also purchase the products and services

being advertised. The results found in the study of Jung et al., (2016) revealed that

organic impression advertisements were preferred by the facebook users because they

had friend names liking/buying/trying a product/service on their news feed relative to

paid advertisements that were not available on homepage but posted on sidebar of

Facebook profile. Similarly, the mobile version of facebook also brought similar

positive results of organic impression mobile facebook advertisement (Qazi et al.,

2017). This may be because the mobile facebook users were exposed in their news

feed that their Facebook friends not only liked the products or service advertised on

facebook advertisement but also purchased them.

iii. Homepage Impression Mobile Facebook Advertisement

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 Homepage impression advertisements refer to the advertisements which are

shown on facebook which contain an image, text and an option for users to engage

with the advertised product or service (Gibs and Bruich, 2010). The home page is what

a person sees when he/she logs into his/her Facebook account. The first thing which a

person can see is his/her news feed, constantly updating posts from the facebook

friends, various facebook pages and other connections which he/she has made (Fox

and Naidu, 2009). A mobile facebook user may react to the posts or pages shown in

news feed (Sun et al., 2009). If a user like a comment or post, it means that he/she

enjoyed the post or comment. However a user also has an option to show a specific

reaction such as love, laugh, sad and angry. But the user has only one option to do

instead of more than one or all reactions. If a user has a click on “Like”, the other

person/organization comes to know that he/she has enjoyed the post on mobile

Facebook without leaving a comment. After such liking, a story is posted his/her

timeline that he/she has liked the post and a notification is also sent to the

person/organization who has made/shared the post. To reverse the “Like” or love,

laugh, sad and angry reaction, one has to click again on the reaction button to undo the

reaction on the post (Kim and Yang, 2017).

A mobile facebook user can control the stories and posts showed on his/her news

feed (Hoadley et al., 2010; Murray, 2017). They argue if the connections and activities

on Facebook are large in number, there would be large number of posts in his/her news

feed. A wide circle of liked pages and facebook friends provides more stories and

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posts (photo, video, status update) related to his/her friend(s) liking or their activities.

Most of the activities in a “liked” pubic or closed group may also appear in a user’s

homepage. However, a user can customize his/her settings to limit or widen the stories

and posts on his/her homepage (Dow et al., 2013; Hoadley et al., 2010). If he/she

wants to limit, he/she has to unfollow the person or group or permanently leave the

group in case of group and unfriend a person in case of person. In the contrary a

person sharing a post or story may also limit the audience of that post or story.

Sometimes a post or story which a user have already seen may appear in the top of

his/her homepage News Feed. This may also be deemed as the popularity of the

post/story. This can happen if many of his/her friends have liked or commented on that

post or story (DeVito, 2017).

The homepage also has an option of search through which a user can search for

people, posts, photos, places, Pages, Groups, apps (applications) and events on

Facebook (Facebook, 2017; Zuckerberg, 2017). When the user types some words in

search option, the homepage provides a list of results that he/she can filter. This option

also helps a user to explore various ideas by trying some of the keywords or combining

some phrases together, or add things like locations, times, likes and interests to get

more specific results. Facebook search option can enable a user to find unique search

results based on his/her connections to people, places, and things. The user may also

see results from people he/she is not friends with because he/she may be a part of the

audience for the post. The corporations use audience selector control to make their

posts public. This search option also respects privacy settings of a user. A user can

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manage what others may see about him/her by using three (03) distinct ways: 1) using

the audience selector for a post being shared, 2) restricting activity log, and 3) using “

About” setting in his/her profile to view and manage basic information. It means that

all depends upon the privacy setting of the user and the setting of a person who shares

a story or post (Facebook, 2017; Zuckerberg, 2017).

A mobile facebook user can view and adjust his/her homepage News Feed

preferences which helps in controlling what he/she sees on his/her News Feed. He/she

can hide News Feed posts or stories from a person, Page or group or first see and then

decide whether to hide or show the post or story on his/her homepage by customizing

news feed preferences (Facebook, 2017; Zuckerberg, 2017). Facebook claims that the

user can opt to view stories or posts on his/her homepage News Feed in two ways: 1)

Top Stories (Default Setting) which shows the most popular stories from friends,

Pages and groups at the top of your News Feed, and 2) Most Recent (Customized

Setting) which shows stories from friends, Pages and groups in the order that they

were posted. A user can share a post or story on his/her homepage News Feed by

choosing from various options including: share on your own timeline, share on a

friend's timeline, share in a group, share in an event, share on your Page you manage,

and share in a private message. If the user is choosing the option of “share on your

own timeline”, he/she has to select the audience of that post (friends, group, event,

Page, or only me).

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 Homepage impression mobile facebook advertising refers to the advertisements

shown on the main page of facebook (Gibs and Bruich, 2012; He et al., 2014; Jung et

al., 2016). In this type of mobile facebook advertising, advertisers and corporations

focus on an entire view of a facebook page which means that the advertisement

contents cover all the page being displayed to the mobile facebook users. Gibs and

Bruich (2012) argue that these advertisements may also be located in the sidebar of

Facebook that contain creative content including text and image. Such text and images

may contain a link to a facebook page, twitter page, google+ page or any other social

media page for which the viewers have an option to access and like the page on which

the advertisement is actually based. Homepage impression Mobile Facebook

advertisements can also be displayed through specific groups created by the producers

to promote their product or services. When the mobile facebook users watch that the

other group members are from their friends or of same interests, they tend to take deep

interest in the group and the contents shared in the group. Usually, these types of

advertisements contain some special image(s), unique text and some certain option for

users to engage with the detriment and the product or service being advertised (Gibs

and Bruich, 2010). The home page is what a person sees when he/she logs into his/her

Facebook account. The first thing which a person can see is his/her news feed,

constantly updating posts from the facebook friends, various facebook pages and other

connections which he/she has made (Fox and Naidu, 2009).

As the Homepage impression Mobile Facebook advertisements contain detailed

information about the features of the advertised products and services which are also

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verified by the producers, it has strong positive impact on the mentality of the viewers.

Similar results were found by Qazi et al., (2017) in their research where the Homepage

impression Mobile Facebook advertisements had enhanced purchase intentions of the

advertisement viewers. These advertisements are also attractive which induces the

viewers’ interest to fully see the advertisements which are directly present on mobile

Facebook pages/groups created by producers. For buffering these advertisements, the

advertisers and corporations may set up their custom short-domain to Buffer homepage

where the viewers see their updates. Homepage impression mobile facebook

advertisement not only include various elements of facebook such as Facebook Pages,

Facebook Profiles, Facebook Groups etc. but also includes other social media websites

links such YouTube links, Pinterest linked pages, Tumblr linked pages, Flickr linked

pages, Reddit linked pages, Snapchat linked pages, WhatsApp linked pages or groups,

Quora pages, Vine linked pages, Periscope linked pages, BizSugar linked business and

advertisement pages, StumbleUpon linked accounts, Delicious linked pages, Digg

linked accounts, Viber linked pages, Linked Twitter Accounts, Instagram Pages,

LinkedIn Profiles, LinkedIn Company Pages, and Google+ Pages etc. (Luna-Nevarez

& Torres, 2015; Rawee, 2016; Wang and Reani, 2017).

2. 6 COUNTRY OF ORIGIN

Country-of-origin (COO) is defined as the positive or negative influence of the

base country in which a product is manufactured (Cateora, 2008). They argue that the

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country of origin of a product directly affects a consumer’s positive or negative

perception of a product in terms of purchase intentions. According to Diamantopoulos

et. al, (2011), the image of Country of Origin (COO) is a stimulating factor through

which the purchase intentions of the customers are significantly enhanced or reduced.

According to Balabanis et al., (2017) also treat Country-of-origin as a powerful factor

which affect the evaluation of a product. They explain COO as the extent to which the

manufacturing place effects the consumer evaluations of the product. Therefore,

country of origin is among the important factors that might influence the consumer

purchase intentions.

Moderating Role of Country of Origin towards Purchase Intentions

Country-of-origin (COO) is defined as the positive or negative influence of the

base country in which a product is manufactured (Cateora, 2008). They argue that the

country of origin of a product directly affects a consumer’s positive or negative

perception of a product in terms of purchase intentions. According to Diamantopoulos

et. al, (2011), the image of Country of Origin (COO) is a stimulating factor through

which the purchase intentions of the customers are significantly enhanced or reduced.

According to Balabanis et al., (2017) also treat Country-of-origin as a powerful factor

which affect the evaluation of a product. They explain COO as the extent to which the

manufacturing place effects the consumer evaluations of the product. Therefore,

country of origin is among the important factors that might influence the consumer

purchase intentions.

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 The country of origin of a product creates perceived value in the minds of the

customers/consumers with time, experience and word of mouth of their circle of

influence. Brett Martin (2011) conducted an experiment to compare the effect of origin

on consumers’ mind. The experiment was about to sell a camera made in Germany vs

the camera made in Poland. The results were obvious that people paid more intentions

on the camera with a label made in Germany. Most of the respondents believed that

the products made in Germany must have good quality, better technology and are more

durable. On the other hand, the respondents were reluctant to buy the camera made in

Poland. Most of the respondents were of the opinion, that products made in Poland are

not as good as the products from Germany. Now in the same experiment the

respondents were provided with the counter arguments to mitigate negative country of

origin perception.

Shirin and Kambiz (2011) found a positive significant impact of COO on

purchase intentions of the customers. They argue that the countries which are

perceived as the more developed, the moderating role of COO on the purchase

intentions is positive. Which means that the consumers have more purchase intentions

for the products which are manufactured in developed countries. The similar results

are found by Parkvithee and Miranda (2012) in their study that the people care a lot

about the country in which the product is manufactured. Hence, the countries which

are perceived as positive, enjoy positive COO impact on the purchase intentions of the

customers for their products whereas countries which are perceived as negative, face

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negative COO impact on the purchase intentions of the customers for their products.

To counter this, companies try to market their products through the distributors

originated in positive or Neutral Country of origin or sometimes no names of the

country are displayed on their brands (Nagy, 2017). In such cases counter stereotypical

associations are activated. In case of online advertisements, the counter stereotypical

associations can be the followers, see first followers that replace preconceive country

notions. This is done through their reviews, comments, likes and forwards.

There is a huge data of products, online sellers and retailers offering numbers

deals over mobile Facebook. This has made a clear impression on the minds of the

public that online buying in much easier (Moser et al., 2017). However, there are

certain constraints hidden in it. The impact of country of origin is also form one of

those hindrances. Somehow or the other the country of origin of buyer is also a critical

factor for advertisers. More flexible and innovative campaigns are required to

stimulate the buying perceptions of the youth tending more toward new mediums.

Youth interacting with the new commercial media culture, have developed a sense to

judge through their social circles also called social impression mobile facebook

advertisement (Gibs and Bruich, 2010). Researches involved to understand their

behavior are more complex and set of collaborative and interdisciplinary, combining

expertise from numerous fields to position the studies that cut cross both disciplines

and level of influence.

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 In developing countries like Pakistan, the country of origin effect has another

dimension which is the comparison of local brand with foreign brand. The products

from the foreign country of origin especially western are preferred in the developing

country due to the perceived quality of the products and the social status differences

(Rajeev et. al, 2000). In developing countries, a brand's country of origin not only

serves as a “quality halo” or summary of product quality (Batra et al., 2000). But also

possesses a dimension of non-localness that, among some consumers and for some

product categories, contributes to attitudinal liking for status-enhancing reasons. The

country of origin of a product is an extrinsic clue which similar to brand name, is

known to influence consumers’ perceptions and to lead consumers to cognitive

elaboration (Pappu et al., 2006). Country of origin is known to guide to associations in

the minds of consumers (Aaker, 1991; Keller, 1993). In the process of buying,

consumers are not only concern about the quality and price of a product but also other

factors such as the brand’s country-of-origin.

Buying products from the market or over the internet, people are more conscious

about the origin of the product. The origin of the product is linking with the general

perception about the country production abilities. ‘Made in China’ is seen everywhere

in the international market. However, China still has a long way to go to gain

consumers’ confidence and trust. Previously, the reputation of the ‘Made in China’ is

not that positive in consumers’ mind (Ahmed et al., 2004). In fact, even the country

had started the positive growth as a leading manufacturer in the world but the quality

of the products is still being perceived as likely low (Lew and Sulaiman, 2013). This

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perception is very common in the Pakistan and neighbouring countries. Many

consumers utilize country-of-origin stereotypes to appraise products for example, “

Japanese electronics are reliable”, “German cars are excellent”, “Italian pizza are

superb”. Many consumers believe that a “Made in . . .” label means a product is “

superior” or “inferior” depending on their perception of the country (Yasin et al.,

2007). In detail, Anwar, Yasin, Iqbal and Sajid (2013) stated that Country of Origin is

being viewed like different brands belongs to the different countries. Those owning

countries are called country-of-origin. Example given by Anwar et.al, (2013) is Dell.

Dell is an American brand, thus America is country-of-origin for Dell. Same goes to

Lenovo and Huawei which known as the Chinese brands. Due to that reason, China is

the products’ country-of-origin. Similarly, Apple one of the most reputed brand in the

world is originated from USA and is made in China these days. The company, has not

spread the word of its manufacturing units in China. However, the quality of the

product has not reduced in any way.

The factor like country of origin is effecting the purchase intention of the

product (Balabanis et al., 2017; Gineikiene et al., 2017; Hsu et al., 2017). This is clear

from the study of the literature that culture, economic condition and perceived image

of the country clearly effects the purchase intentions. However, the impact of

Facebook advertising moderated by country of origin is to be understood. We have

also learnt that the face book advertising is the most effective medium of promoting

product. Companies have managed themselves to reach the minds of consumers

through the continuous interactions with them. They have started to understand the

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needs and wants of the consumers. Facebook advertisements are creating a new

medium of advertising and the intensity of the trending medium is so high that

multinational organizations are shifting towards this new phenomenon (Bellew et al.,

2017). It is also noted that country of origin somehow, stimulates the buying intentions

arose by the facebook advertisement. It is yet to be studied that the impact would be

positive or negative on the relation. According to Ferreira and Ribeiro (2017), the

customers are inclined to pay the price to the socially responsible corporations for their

products. They investigated the moderating role of country of origin between the

relationship of corporate social responsivity embedded in the advertisements of a

corporation and purchase intentions. Their study also provided a direction for future

research to study country of origin (COO) as moderating variable between the

relationship of mobile facebook advertising and purchase intentions.

Hence, the researcher takes keen interest in exploring various types of impacts of

a product’s country of origin on the purchase intentions of the customers if the product

is categorized in only two categories of “national brands” and “foreign brands”.

2. 7 PERCEIVED VALUE

Perceived value is an extremely important concept in marketing and many authors

have dealt with it in recent years. Perceived brand value can be defined as value facets

(functional, economic, emotional and social) perceived by an individual consuming a

particular brand (Woodruff, 1997). The perceived value of a product includes the

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reasonable and economical price, better outcomes, and better than competing products.

Perceived value is a trade-off between benefits and sacrifices perceived by customers

in a product offering (Woodruff et al., 1993; Slater and Narver, 2000; Snoj and

Gabrijan, 2000; Sanchez-Fernandez and Iniesta-Bonillo, 2007; Ulaga and Chacour,

2001; Zeithaml et al., 1996). As the perceived value is an important factor in

explaining the purchase intensions of a customers, the study of perceived value is

considered to be very important (Koller et al., 2011). Perceived value is a surplus of

Perceived benefits over perceived sacrifices. Perceived benefits are a combination of

different attributes of products (tangible and intangible; intrinsic and extrinsic etc.),

available in relation to a particular buy and use situation. Perceived sacrifices are a

combination of a nominal price and all other costs of product acquisition and its use

(e.g. Zeithaml, 1988; Monroe, 1990; Pisnik, 2000; Slater and Narver, 2000; Ulaga and

Chacour, 2001). To this point, the literature review suggests that perceived value has a

significant effect on customer satisfaction, which in turn influences behavioral

intentions such as word-of-mouth intentions and intentions to purchase for the

products.

Moderating Role of Perceived Value towards Purchase Intentions

Previous literature has shown that the relationship between service quality and

customer satisfaction is strongly moderated by perceive value. For example, Eggert

and Ulaga (2002) conducted a study about customer satisfaction based on 301

employees in US organizations. This study found that properly implementing service

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quality features (i.e., assurance, empathy, reliability, responsiveness and tangibles)

have increased individuals’ perceive value about the quality features. As a result, it

might lead to an increased customer satisfaction. The service quality research literature

is consistent with the notion of perceive quality models. For example, Parasuraman et

al. (1985) conceptual service quality model highlights that matching between service

quality standards and customers’ standards may decrease service performance gap and

increase customers’ perceive value about the quality systems. Consequently, it may

lead to higher customer satisfaction. However, in this study, the researcher is going to

apply the moderating effect of perceived value on the relationship between mobile

Facebook advertisement and purchase intentions of consumers.

Perceived value is considered an important element that drives ultimate purchase

through enhancement of purchase intentions of the potential customers or consumers

(Bansal and Jain, 2017; Chiu et al., 2014). A large number of academic researchers have

found that perceived value appears to be the direct antecedents of behavioral intentions

i.e. purchase intentions (Cronin et al., 2000; Dodds, et al., 1991; McDougall and

Levesque, 2000; Petrick and Backman, 2002; Tam, 2000). It means that perceived value

not only directly affects actual purchase decisions of the consumers but also enhances

consumers’ intentions to purchase the product. It is widely known to the field of marketing

research that perceived value has a strong and positive association with customer

satisfaction, loyalty, purchase intentions and purchase decisions of the customers (Eggert

and Ulaga, 2002; Patterson and Spreng, 1997). Perceived value not only shape pre-

purchase choice behavior of the consumers, but also affects post-purchase consumer

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satisfaction, repurchase intentions and recommending the product to others (Parasuraman

& Grewal, 2000). Hence, study of perceived value is considered as an important aspect of

purchase intentions (Hong et al., 2017; Lacroix and Jolibert, 2017; Vijaranakorn et al.,

2017).

Various studies use perceived value as a moderator variable between the

relationship of advertising and purchase intentions (Aulia et al., 2016; Chen and Tsai,

2008; Khan and Kadir, 2011). When the advertised products carry great value for the

customers, the purchase intentions of the customers who are exposed to the advertising

are enhanced significantly because they perceive that the use of product will provide

them a surplus of benefits over the cost incurred for that purchase (Kamil and Musah,

2017). The products having higher perceived value are sold on higher prices because

of the positive perception of the customer about the product value. On the contrary, if

the perceived value of the product is low, the customers have less purchase intentions

westwards these products and ultimately these are sold on lower prices with low profit

margins. Hence, instead of continuously reducing the price, the corporations have to

increase the perceived value of their product in order to enhance purchase intentions,

sales and profit margin (Gabler et al., 2017).

Among many factors, one factor that plays a vital role in creating the perceived

value of a product is the brand name, also called brand equity (Keller, 2017). Brand

names that are well-known often add perceived value to a product. For example,

clothing typically does not cost much to manufacture as it only involves some material

and labour (Mostafa and Klepper, 2017). Certain brands of clothing sell for much more

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than others simply because they have a logo or a brand name on them. The right brand

name can make a big difference for some customers. We take an example of two white

shirts seemingly not different to one and another. We place a logo of Bonanza or

Cambridge on one of the shirts and place a non- familiar brand logo on the other. The

consumer on the internet are just watching the picture of both shirts. The perceived

value of the shirt with Famous logo will be more than the one with the less imaged

company logo. Bues et al., (2017) argues that when the perceived advertising value is

higher, the purchase intentions of the advertisement viewers are enhanced. As the

perceived value refers to the main difference between the benefits received from using

a product and the monetary and nonmonetary cost of paid receiving that particular

product, the products with higher value derive more purchase intentions and vice versa.

The products with positive perceived value have positive purchase intentions (Bolton

and Drew, 1991).

Previous studies have suggested corporations to increase perceived value of

their advertised products in order to enhance purchase intentions of the advertisement

viewers. The firms have to carefully understand and work with customers’ perceived

value for enhancing purchase intentions, getting loyalty and retaining them. Therefore,

all the firms try to improve perceived value of customers by providing them beneficial

information regarding the products and their expected uses in the advertisements of the

modern online world (Escobar-Rodríguez and Bonsón-Fernández, 2017). As the

products of various firms are almost identical or slightly differentiable, the creation of

perceptive product value can be done for inducing more buy from the customers by

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blow outing the positive word of mouth and maximum positive information about

beneficial uses of the products in their advertisements. This positive impact of

perceived value on purchase intentions of the customers for the online advertised

products shows a moderating effect of perceived value on purchase intentions.

By summing the related literature of moderating impact of enhancing or

decreasing the advertised products’ purchase intentions, the researcher concludes that

in mobile facebook advertising, the perceived value may also be affected by

consumers’ attention to an advertisement. One of the way to catch the consumers’

attention is advertising endorser which attracts many business advertisers’ attention

too. Advertising endorsers are often famous celebrities or experts who hold expertise,

awareness and attractiveness. The Brand name enhances with the endorsements and

eventually it has an effect over the perception. The use of celebrity spokespeople in

advertising, focusing on 3 dimensions of source credibility: attractiveness,

trustworthiness, and expertise (Ohanian, 1991). We have seen many advertisments on

Television and Facebook which have used famous faces to grab the attention of the

potential consumers. The recent example of such campaign is “Jazz” which casted the

Indian actress and model Narjis Fakhri. The similar Narjis Fakhri advertisement is

shown on facebook by the Mobilink cellular network company. The loud gossip on the

social media about the model led the campaign to a success level. Similarly the new

lawn brand of Pakistan, Firdus used Indian Top actress karina Kapoor. By using these

celebrities, perceived value of the lawn was raised to the highest level by the

corporations. Customers started to believe that the new brand is as superior as the old

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leaders of the industry. We again comment on the point that perceived value increased

by any mean as a powerful impact on the purchase intentions and ultimate purchase

decisions. Hence, the researcher is going to apply the moderating effect of perceived

value on the relationship between mobile Facebook advertisement and purchase

intentions of consumers.

2. 8 CONCEPTUAL FRAMEWORK OF THE STUDY

After analyzing the findings of previous research studies and directions for

future research, the researcher has developed the following conceptual framework to

be carried in the current study:

2. 9 HYPOTHESES

After developing the conceptual framework, the following hypotheses which

are aligned with the objectives of the study, are being developed to be tested in the

current study:

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Hypothesis 1: Mobile Facebook Advertisements have positive significant impact on

purchase intentions.

Hypothesis 2: Mobile homepage impression facebook advertisement has positive

significant impact on purchase intentions.

Hypothesis 3: Social impression mobile facebook advertisement has positive

significant impact on purchase intentions.

Hypothesis 4: Organic impression mobile facebook advertisement has positive

significant impact on purchase intentions.

Hypothesis 5: Country of origin of a product positively moderates the relationship

between mobile homepage impression facebook advertisement and purchase intentions.

Hypothesis 6: Perceived value of the product origin positively moderates the

relationship between mobile homepage impression facebook advertisement and

purchase intentions.

Hypothesis 7: Country of origin of a product positively moderates the relationship

between mobile facebook social impression advertisement and purchase intentions.

Hypothesis 8: Perceived value of the product origin positively moderates the

relationship between social impression mobile facebook advertisement and purchase

intentions.

Hypothesis 9: Country of origin of a product positively moderates the relationship

between mobile facebook organic impression advertisement and purchase intentions.

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Hypothesis 10: Perceived value of the product origin positively moderates the

relationship between organic impression mobile facebook advertisement and purchase

intentions.

2. 10 SUMMARY OF CHAPTER

In this chapter, the researcher has briefed about the relevant literature of this

study. Advertising is considered as a major element of promoting products of the

corporations. With the passage of time and advancement in technology, the advertising

has changed from traditional media to new online media such as websites and social

media networking websites. Among various popular social media networking

websites, facebook is considered to be the major site being used for advertising due to

its popularity, large number of users, associated costs and ease of advertisement. Due

to an ever increase in smartphones around the world, almost more than half of the

facebook users are using facebook through their mobiles. Purchase intentions refer to

the willingness and intention of the users to purchase a specific product at a specify

price and within a specific time frame. As the traditional media has positive impact of

advertising of the products on purchase intentions of the users, the mobile facebook

advertising also has positive impact on the purchase intentions of the users. Country of

origin is an important variable that can enhance or reduce the purchase intentions of

the mobile facebook users who see advertisements on their mobile facebook. Country

of origin refers to the country in which the company is established. The researcher

used national products which are produced within Pakistan and Foreign products

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which are produced outside Pakistan. Likewise, perceived value is also an important

variable that can enhance or reduce the purchase intentions of the mobile facebook

users who see advertisements on their mobile facebook. Perceived value is an

important feature of consumer behavior in which the consumers think that their

sacrifices are lesser than their gains if they purchase a specific product. After

mentioning all relevant literature, the researcher has developed his conceptual

framework for current study and developed hypotheses to be tested by this study.

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 CHAPTER 3: METHODOLOGY

This study has used causal research design to fulfil the objectives set and

hypotheses developed after critical review of the relevant literature. The study has used

quantitative data technique for collecting quantitative data by using questionnaire as a

primary data collection tool. The researcher also has applied factor analysis in pilot

study for the questionnaire for reducing the scale dimensionality and managing the

items included in the original scale. The questionnaire was sent to the respondents

through email followed by hard copy for better communication with the respondents.

One of the reasons for using google along with the hard copy was that the results

obtained from google form could go directly into a shareable spreadsheet. The

researcher could get email notification of results and being the mobile-friendly for

quick updates simultaneously. The researcher shared questionnaire in google form with

an email and a link. The researcher remained informed about all the updates regarding

data collection and watched the responses appearing in real time.

3. 1 POPULATION

The population of the study comprised of the university students of public and

private sector universities of Pakistan located in four major cities i.e. Karachi, Lahore,

Rawalpindi and Islamabad. There were various reasons of selecting this population for

the current study. One of the major cause was the availability of android mobile phone

through which mobile Facebook advertisement can be seen. Firstly, in Pakistan most

of the people did not have android phone and the school or college going students also

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did not have android mobiles in which Facebook feature is incorporated. Secondly,

majority of school or college students in Pakistan did not have email addresses on

which they could be accessed. Thirdly, the university students had an idea of mobile

Facebook advertisement and had enough power to purchase a product they like in the

mobile Facebook advertisements. So, the prime purpose of the current study could

only be fulfilled if the researcher had collected data from university students. Hence,

the researcher selected university students as the population for this study.

As the population of the study was the university students, the researcher has

taken three major categories of food, clothing and electronics products in this study.

There were the following reasons to choose these categories of the products:

i. Most of the companies who are the clients of facebook incorporation deal in

food, clothing and electronics products (Harris and Dennis, 2011).

ii. Food, clothing and electronics products are frequently used by the majority of

the masses in general and the respondents especially (Raju and Kumar, 2016).

iii. These products of food, clothing and electronics products are demanded by

each and every person irrespective of their income level (Raju and Kumar,

2016).

iv. The population of this study consists of the university students, so the products

like Car, Air Ticketing, Business/Industrial Goods etc. are irrelevant (Gao et al.,

2016).

v. Food, clothing and electronics products are consumer goods with high demand

among the masses (Ehrenberg and Smith, 2016).

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 After considering the factors mentioned above, the researcher took food,

clothing and electronics products as his prime concern for this study.

3. 2 SAMPLE SIZE

The researcher took 1000 students as sample size of this study on the basis of

statistical formulae provided in the table “Sample Size Determination for Given

Population” by Krejcie and Morgan (1970). As the researcher did not know the exact

size of population, he used statistical formulae to calculate sample size for this study as

provided by Krejcie and Morgan (1970). While determining the sample size Margin of

Error (Confidence Interval), Confidence Level, and Standard of Deviation were also

kept in mind by the researcher.

3. 3 SAMPLING TECHNIQUE

Researcher has used cluster sampling technique for collecting the data from the

respondents. The researcher made four (04) clusters of the population. Four cities in

which the universities were located, were selected as independent clusters for

gathering data and 250 respondents were selected as a sample size from each cluster.

In, cluster sampling, the population was divided into four (04) groups which were

called “clusters”. The clusters of the current study were four major cities i.e. Karachi,

Lahore, Rawalpindi and Islamabad. After making the clusters, the researcher randomly

selected respondents form each cluster as sample.

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 3. 4 MOBILE FACEBOOK USAGE CHARACTERISTICS IN PAKISTAN

There are many Facebook usage characteristics on mobile version. Mobile

version also provides a wide range of activities just like the desktop version. The

largest proportion of Facebook users are people who declare vocational, secondary and

higher education – according to Gemius, they make up more than 60 per cent of users

in total. The age group 15–24 is the second largest (22 per cent). So, it can be a good

market for various corporations. In May, 2016, Pakistan deepens Facebook user base

with over 40 million mobile subscribers in the country, 33% of Mobile users of

Pakistan. From these, 25 million users use mobile version of Facebook.

3. 5 DESIGN OF QUESTIONNAIRE BEFORE PILOT TESTING

3.5.1. Measurements of Variables

In my study, the related variables include mobile Facebook advertisement,

purchase intentions, Ethnocentrism and perceived value. The variable of mobile

Facebook advertisement was subdivided into three variable which were: social

impression, homepage impression and organic impression. The variable of country of

origin was subdivided into national products and foreign products.

Table 1: Measurement of Facebook Advertisement

Variable NO. Contents References

Social S1 Products liked by your friends on mobile FB are Nielsen’s

Impression attractive. (2012)

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 S2 I am interested to fully see the advertisements The book

which are liked by my friends on mobile FB written by

S3 Mobile Facebook advertisements displayed with Gibs, J., &

likes by your FB friends contain detailed Bruich, S.

information about the features of the advertised (2010).

products. Advertising

Homepage H1 Mobile Facebook advertisements displayed effectiveness:

Impression through pages/groups created by producers contain understanding

detailed information about the features of the the value of a

advertised products. social media

H2 Products advertised through mobile Facebook impression.

pages/groups created by producers you like are New York,

attractive. NY: The

H3 I am interested to fully see the advertisements Nielsen

which are directly present on mobile Facebook Company.

pages/groups created by producers In 2012, the

Organic O1 Mobile Facebook advertisements displayed with Nielsen

Impression likes and ultimate purchases by your friends company

contain detailed information about all the features published a

of the advertised products. blog post “

O2 Products liked and purchased by your friends on Consumer

mobile Facebook are attractive. trust in online,

92
 I am interested to fully see the advertisements social and

O3 which show that my mobile Facebook friends liked mobile

and purchased. advertising

grows”

http://www.ni

elsen.com/us/e

n/insights/new

s/2012/consu

mer-trust-in-

online-social-

and-mobile-

advertising-

grows.html

Respondents need to evaluate all items on a five-point Likert type scale,

ranging from strongly disagree(1) to strongly agree(5).

Table 2: Measurement of Purchase Intentions

Variable NO. Contents References

Purchase P1 I Shall buy products that are advertised on Taylor & Hunter

Intentions mobile FB in the near future (2002)

93
 P2 I desire to buy products that are promoted Taylor, S. A., &

on mobile FB Hunter, G. L.

P3 Advertisements on mobile FB do not (2002) published

increase purchase intent of featured brands the research paper,

P4 Advertisements on mobile FB have a “The impact of

positive influence on my purchase loyalty with e-

decisions CRM software and

P5 I would buy the products that are advertised e-services” in

on mobile FB if I had the money International

P6 I do not intend to acquire products that are Journal of Service

promoted on mobile FB Industry

P7 I am likely to buy some of the products that Management,

are promoted on mobile FB 13(5), 452-474.

P8 I plan to purchase the products that are

advertised on mobile FB

P9 Advertisements on mobile FB have a

negative influence on buying decisions

Respondents need to evaluate all items on a five-point Likert type scale,

ranging from strongly disagree(1) to strongly agree(5).

94
 Table 3: Measurement of Country of Origin
Variable NO. Contents References

Country of C1 Pakistani people should always buy Shimp, T. and

Origin Pakistani-made products instead of imports. Sharma, S., (1987)

C2 Only products that are unavailable in

Pakistan should be imported. They published a

C3 Buy Pakistani-made products. Keep research paper “

Pakistan working Consumer

C4 Pakistani products first, last and foremost. ethnocentrism:

construction and
C5 Purchasing foreign-made products is un-
validation of the
Pakistani.
CETSCALE” in
C6 It is not right to purchase foreign products,
Journal of
because it puts Pakistanis out of jobs.
Marketing
C7 A real Pakistani should always buy
Research 24(3):
Pakistani-made products.
280–289.
C8 We should purchase products manufactured

in Pakistan instead of letting other countries

get rich of us.

C9 It is always best to purchase Pakistani

products.

C 10 There should be very little trading or

purchasing of products from other countries

95
 unless out of necessity.

C 11 Pakistanis should not buy foreign products,

because this hurts Pakistani businesses and

causes unemployment.

C 12 Curbs should be put on all imports.

C 13 It may cost me in the long-run, but I prefer

to support Pakistani products.

C 14 Foreigners should not be allowed to put

their products on our markets.

C 15 Foreign products should be taxed heavily to

reduce their entry into the Pakistani market.

C 16 We should buy from foreign countries only

those products that we cannot obtain within

our own country.

C 17 Pakistani consumers who purchase products

made in other countries are responsible for

putting their fellow Pakistanis out of work.

Respondents need to evaluate all items on a five-point Likert type scale,

ranging from strongly disagree(1) to strongly agree(5).

96
 Table 4: Measurement of Perceived Value
Variable NO. Contents References

Perceived PV 1 The price of the brand will be very Chowdhury, H. K.,

Value economical for me. & Abe, S. (2002).

PV 2 The price of the brand will be unacceptable

for me.* They published a

PV 3 The price of the brand will appear as research paper “

bargain. Consumer

PV 4 The price to acquire the brand will be Perceptions of

reasonable. Value: a Multi-

PV 5 The brand will have a longer product life. Item Scale For Its

Measurement” in
PV 6 I will not feel superiority by owing this
ACR Asia-Pacific
brand.*
Advances.
PV 7 From my experience of this brand, I feel

that I will get quality attributes.

PV 8 I do not feel that the brand for the price will

be of good quality.*

PV 9 I do believe that the brand for the price will

outperform other brands.

PV 10 I think the brand will contain unique

features for the price.

97
 PV 11 The purchase of the brand will be a good

deal but I have to search for the related

information before making the purchase

decision.

PV 12 Acquisition of this brand will not be

worthwhile if I do not spend time to

compare with others.*

PV 13 The purchase of the brand will have a good

value, for that I would have to employ a lot

of effort.

Respondents need to evaluate all items on a five-point Likert type scale,

ranging from strongly disagree(1) to strongly agree(5). The questions with asterisk

marks are reverse coded which means that response for these questions will be 1=5,

2=4, 3=3, 4=2, 5=1.

3. 6 PILOT TESTING FOR ITEMS REDUCTION IN QUESTIONNAIRE

For decreasing the number of items/questions in each variable, the researcher

would a pilot study in which data from 30 respondents will be collected as a pilot test.

The researcher will use factor analysis for data reduction and on the basis of factor

loading the researcher will decide to delete items used in questionnaire. The items with

low factor loading will be deleted from the original scale.

98
 3. 7 QUESTIONNAIRE AFTER PILOT TESTING

3.7.1. Measurements of Variables

After conducting pilot testing, the questionnaire was revised as per the results

of Principal Component Factor Analysis (PCA). The questions in the scales of

variables of Facebook advertisement, purchase intentions, Ethnocentrism and

perceived value were reduced. The variable of mobile Facebook advertisement was

subdivided into three variable which are: social impression, homepage impression and

organic impression. The variable of country of origin was subdivided into national

products and foreign products. The revised version of variables and their questions

were as follow:

Table 5: Measurement of Facebook Advertisement

Variable NO. Contents References

Social S1 Products liked by your friends on mobile FB are Nielsen’s

Impression attractive. (2012)

S2 I am interested to fully see the advertisements

which are liked by my friends on mobile FB

S3 Mobile Facebook advertisements displayed with

likes by your FB friends contain detailed

information about the features of the advertised

products.

99
Homepage H1 Mobile Facebook advertisements displayed

Impression through pages/groups created by producers contain

detailed information about the features of the

advertised products.

H2 Products advertised through mobile Facebook

pages/groups created by producers you like are

attractive.

H3 I am interested to fully see the advertisements

which are directly present on mobile Facebook

pages/groups created by producers

Organic O1 Mobile Facebook advertisements displayed with

Impression likes and ultimate purchases by your friends

contain detailed information about all the features

of the advertised products.

O2 Products liked and purchased by your friends on

mobile Facebook are attractive.

OO I am interested to fully see the advertisements

3 which show that my mobile Facebook friends liked

and purchased.

Respondents need to evaluate all items on a five-point Likert type scale,

ranging from strongly disagree(1) to strongly agree(5).

100
 Table 6: Measurement of Purchase Intentions
Variable NO. Contents References

Purchase P1 I Shall buy products that are advertised on Taylor & Hunter

Intentions mobile FB in the near future (2002)

P2 I desire to buy products that are promoted

on mobile FB

P3 Advertisements on mobile FB have a

positive influence on my purchase

decisions

P4 I plan to purchase the products that are

advertised on mobile FB

Respondents evaluated all items on a five-point Likert type scale, ranging from

strongly disagree (1) to strongly agree (5) for the main study.

Table 7: Measurement of Country of Origin

Variable NO. Contents References

Country of C1 Pakistani people should always buy Shimp, T. and

Origin Pakistani-made products instead of imports. Sharma, S., (1987)

C2 Buy Pakistani-made products. Keep

Pakistan working

C3 Pakistani products first, last and foremost.

101
 C4 Pakistanis should not buy foreign products,

because this hurts Pakistani businesses and

causes unemployment.

C5 Curbs should be put on all imports.

C6 Foreign products should be taxed heavily to

reduce their entry into the Pakistani market.

Respondents evaluated all items on a five-point Likert type scale, ranging from

strongly disagree (1) to strongly agree (5) for the main study.

Table 8: Measurement of Perceived Value

Variable NO. Contents References

Perceived PV 1 The price of the brand will be very Chowdhury, H. K.,

Value economical for me. & Abe, S. (2002).

PV 2 The price to acquire the brand will be

reasonable.

PV 3 I do believe that the brand for the price will

outperform other brands.

PV 4 The purchase of the brand will be a good

deal but I have to search for the related

information before making the purchase

decision.

102
 Respondents evaluated all items on a five-point Likert type scale, ranging from

strongly disagree (1) to strongly agree (5) for the main study.

3. 8 RELIABILITY TESTS VALUES

To test the reliability of questionnaire’s items for each scale, the test of

reliability Cronbach’s alpha (Cronbach, 1951) was run. Cronbach’s alpha coefficient of

reliability usually varies between 0 and 1. But there is no such lower limit to the

coefficient. For greater consistency Cronbach’s alpha value should be close to 1. Basic

formula for Cronbach’s alpha is _ = rk / [1 + (k -1)r] where the number of items

considered are denoted by k is and represents is the mean of the inter-item correlations.

The following rules of thumb were provided by George and Mallery (2010).

1. _ > .9 – Excellent,

2. _ > .8 – Good,

3. _ > .7 – Acceptable,

4. _ > .6 – Questionable,

5. _ > .5 – Poor,

6. _ < .5 – Unacceptable” (p. 231).

In pilot study, data was collected from 42 respondents from Karachi, Lahore,

Rawalpindi and Islamabad. The following table showed the results:

Reliability Statistics
Cronbach's N
Alpha of Items
.895 45

103
 Overall Reliability Statistics (Cronbach's Alpha) for the study was 0.895 which

showed a greater reliability before running the factor analysis.

3. 9 RELIABILITY TESTS FOR PILOT STUDY

To test the reliability of questionnaire’s items for each scale in the main study,

the test of reliability Cronbach’s alpha (Cronbach, 1951) was run. In main study, data

was collected from 1015respondents from Karachi, Lahore, Rawalpindi and

Islamabad. The following table showed the results:

Reliability Statistics
Cronbach's N
Alpha of Items
.891 20

3. 10 SOFTWARE AND STATISTICAL TESTS

The researcher gathered the data from the respondents and used advanced

statistical packages like Statistical Package for Social Sciences (SPSS 21.0 version).

Inferential statistics [Correlation and Regression Analysis for measuring effect,

Independent Sample T-Test for measuring differences between national and foreign

brands and descriptive statistics were used to draw valuable results and conclusions

therefrom.

3. 11 SUMMARY OF THE CHAPTER

This chapter discussed the research design which was causal research design in

order to fulfil the objectives set and hypotheses developed by the researcher. The

104
researcher has taken university students of public and private sector universities of

Pakistan located in four major cities i.e. Karachi, Lahore, Rawalpindi and Islamabad as

population of this study. The researcher took 1000 students as sample size of this study.

The researcher also conducted pilot test and measured its reliability which was good

enough and the researcher moved forward for the main study.

105
 CHAPTER 4: DATA ANALYSIS, RESULTS AND
DISCUSSIONS
This chapter consists of two major sections; descriptive statistics and inferential

statistics from which the results were drawn on the basis of data collected through a

questionnaire from the one thousand and fifteen (1015) respondents. The researcher

broke down the data into constituent parts to obtain answers of research questions and

test the hypotheses which were formulated after literature review. In this chapter, the

researcher has tried to exhibit detailed results with possible accuracy and clarity by

focusing on the objectives and topic of the study. The two most important objectives of

the study are to analyze the impact of facebook advertisements on purchase intentions

of mobile facebook users and investigate the moderating role of brand origin &

perceived product value. To achieve these objectives, different appropriate descriptive

and inferential statistical tests are used on the collected data from the respondents. The

researcher collected questionnaire from four (04) major cities of Pakistan that are

Rawalpindi, Islamabad, Lahore and Karachi. The respondents were the university

students of public and private sector universities. To measure the impact of independent

variable on dependent variable, correlation and regression analysis and descriptive

statistics are used in this study.

4.1 PILOT TESTING

It is advised by the scholars to conduct a pilot study in order to check the reliability

and reduce the number of items included in a scale. The pilot testing allow us to check

the normal responses of the respondents at the initial stage and correct them before

106
going to major study after which correction is not possible. The term pilot study is

used in two different ways in social science research. It refers to the feasibility study at

"small scale version[s], or trial run[s], done in preparation for the major study" (Polit

et al., 2001: 467) or pre-testing or 'trying out' of a particular research instrument

(Baker 1994: 182-3) or avoiding the risk at later stages (De Vaus, 1993: 54). The pilot

testing helps us to develop and test research instruments, assess the feasibility of a

(full-scale) study/survey, estimate the variability in outcomes for determining sample

size, collect preliminary data, and propose appropriate statistical tools to be used in

full-scale study.

4.1.1. Respondents

Hence, the researcher conducted a pilot study on the basis of data collected from 42

respondents and analysed reliability statistics and Principal Component Analysis (a

data reduction technique). The respondents belonged to four major cities of Pakistan

i.e. Karachi, Lahore, Rawalpindi and Islamabad. The respondents were university

students who had shopping experience after seeing Facebook advertisement on mobile

version while keeping perceived value and brand country of origin in mind.

4.1.2. Reliability Statistics before Pilot Testing

According to Cronbach, L. J. (1951), coefficient alpha which is also called

Cronbach's Alpha is the reliability rest for internal consistency and reliability of a

scale. Overall Reliability Statistics (Cronbach's Alpha) for the study was 0.895 which

107
showed a greater reliability before running the factor analysis. The results are shown in

the table 4.1 given below:

Table 4.1: Reliability Test

Reliability Statistics
Cronbach's Alpha N of Items
.895 45

4.1.3. Principal Component Analysis (PCA) for Reducing Scale Items

The researcher run factor analysis to reduce the number of questions in the

questionnaire on the basis of responses collected from 42 respondents as pilot study.

Principal Component Analysis (PCA) is a data reduction technique used to reduce

number of items in a variable. PCA is used when scale items of a variable are highly

correlated and reduces the number of observed variables to a smaller number of

principal components which account for most of the variance of the observed variables

The total amount of variance in PCA is equal to the number of observed variables

being analysed. In PCA, observed variables are standardized, e.g., mean=0, standard

deviation=1, diagonals of the matrix are equal to 1. The amount of variance explained

is equal to the trace of the matrix (sum of the diagonals of the decomposed correlation

matrix). The number of components extracted is equal to the number of observed

variables in the analysis. The first principal component identified accounts for most of

the variance in the data. The second component identified accounts for the second

largest amount of variance in the data and is uncorrelated with the first principal

component and so on. Components accounting for maximal variance are retained

108
 while other components accounting for a trivial amount of variance are not retained.

Eigenvalues indicate the amount of variance explained by each component.

Eigenvectors are the weights used to calculate components scores. PCA determines

the number of components to retain on the following method:

a. Eigenvalue > 1 criterion [(Kaiser Criterion, (Kaiser, 1991)]. Each observed

variable contributes one unit of variance to the total variance. If the

eigenvalue is greater than 1, then each principal component explains at

least as much variance as 1 observed variable.

b. Proportion of variance for each component (5-10%)

c. Cumulative proportion of variance explained (70-80%)

d. Interpretability – principal components do not exhibit a conceptual meaning

e. Rotations is a linear transformation of the solution to make interpretation

easier (Hatcher, p.28). With an orthogonal rotation, loadings are equivalent

to correlations between observed variables and components.

The following scale of purchase intentions was analysed:

Purchase Intentions
P1 I Shall buy products that are advertised on mobile FB in the near future

P2 I desire to buy products that are promoted on mobile FB

P3 Advertisements on mobile FB do not increase purchase intent of featured brands

P4 Advertisements on mobile FB have a positive influence on my purchase decisions

109
P5 I would buy the products that are advertised on mobile FB if I had the money

P6 I do not intend to acquire products that are promoted on mobile FB

P7 I am likely to buy some of the products that are promoted on mobile FB

P8 I plan to purchase the products that are advertised on mobile FB

P9 Advertisements on mobile FB have a negative influence on buying decisions

The results of factor analysis through principal component analysis (PCA) showed the

following results:

Table 4.2: Communalities

Initial Extraction

P1 1.000 .797

P2 1.000 .857

P3 1.000 .662

P4 1.000 .817

P5 1.000 .633

P6 1.000 .743

P7 1.000 .847

P8 1.000 .792

P9 1.000 .538

Extraction Method: Principal Component Analysis.

110
Table 4.2 showed communalities in both the initial and extractions terms for the scale

items. Initial communalities for all scale items were 1 whereas the extractions were

.797, .857, .662, .817, .633, .743, .847, .792 and .538 respectively for P1 to P9.

Table 4.3: Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Loadings

Total % of Cumulative Total % of Cumulative

Variance % Variance %

1 3.100 34.441 34.441 3.100 34.441 34.441

2 1.397 15.523 49.964 1.397 15.523 49.964

3 1.126 12.506 62.470 1.126 12.506 62.470

4 1.065 11.832 74.302 1.065 11.832 74.302

5 .910 10.109 84.411

6 .759 8.432 92.843

7 .363 4.037 96.880

8 .178 1.979 98.859

9 .103 1.141 100.000

Extraction Method: Principal Component Analysis.

The results in table 4.3 showed significant factor loading in “Extraction Sums of

Squared Loadings” for only four (04) items of the scale. The percentage of variance

for the four items were 34.441, 15.523, 12.506, and 11.832 respectively. The all four

111
component contributed an overall 74% share in the total explanation of purchase

intentions.

In order to identify these four (04) items with high factor loading, the component

matrix helped.

Table 4.4: Component Matrix

Component

1 2 3 4

P1 .835 -.117 .011 .294

P2 .743 -.222 .204 .464

P3 .026 .407 .532 .461

P4 .827 .018 -.087 -.355

P5 .351 .700 -.069 -.121

P6 -.274 .312 .720 -.231

P7 -.486 .301 -.415 .590

P8 .855 .229 -.082 -.046

P9 .041 .661 -.304 -.083

Extraction Method: Principal Component Analysis.

a. 4 components extracted.

The results of table 4.4 showed four (4) items with factor loading more than 0.70 as

components extracted for data reduction. They were P1, P2, P4 and P8. Hence, the

following items would be included in scale of main study:

112
 Purchase Intentions-REDUCED
P1 I Shall buy products that are advertised on mobile FB in the near future

P2 I desire to buy products that are promoted on mobile FB

P4 Advertisements on mobile FB have a positive influence on my purchase decisions

P8 I plan to purchase the products that are advertised on mobile FB

The researcher run factor analysis to reduce the number of questions in the

questionnaire. The following scale of country of origin was analysed:

Country of Origin
C1 Pakistani people should always buy Pakistani-made products instead of imports.

C2 Only products that are unavailable in Pakistan should be imported.

C3 Buy Pakistani-made products. Keep Pakistan working

C4 Pakistani products first, last and foremost.

C5 Purchasing foreign-made products is un-Pakistani.

C6 It is not right to purchase foreign products, because it puts Pakistanis out of jobs.

C7 A real Pakistani should always buy Pakistani-made products.

C8 We should purchase products manufactured in Pakistan instead of letting other

countries get rich of us.

113
C9 It is always best to purchase Pakistani products.

C 10 There should be very little trading or purchasing of products from other countries

unless out of necessity.

C 11 Pakistanis should not buy foreign products, because this hurts Pakistani businesses and

causes unemployment.

C 12 Curbs should be put on all imports.

C 13 It may cost me in the long-run, but I prefer to support Pakistani products.

C 14 Foreigners should not be allowed to put their products on our markets.

C 15 Foreign products should be taxed heavily to reduce their entry into the Pakistani

market.

C 16 We should buy from foreign countries only those products that we cannot obtain

within our own country.

C 17 Pakistani consumers who purchase products made in other countries are responsible

for putting their fellow Pakistanis out of work.

The results of factor analysis through principal component analysis (PCA) showed the

following results:

Table 4.5: Communalities

Initial Extraction

114
 C1 1.000 .983

C2 1.000 .985

C3 1.000 .983

C4 1.000 .983

C5 1.000 .924

C6 1.000 .909

C7 1.000 .525

C8 1.000 .985

C9 1.000 .874

C10 1.000 .711

C11 1.000 .839

C12 1.000 .719

C13 1.000 .874

C14 1.000 .764

C15 1.000 .831

C16 1.000 .791

C17 1.000 .893

Extraction Method: Principal Component Analysis.

Table 4.5 documented initial factor loading for all scale items. Initial communalities

for all scale items were 1 whereas the extractions were .983, .985, .983, .983, .924,

115
.909, .525, .985, .874, .711, .839, .719, .874, .764, .831, .791, and .893 respectively for

C1 to C17.

Table 4.6: Total Variance Explained

Initial Eigenvalues Extraction Sums of Squared Loadings

Component Total % of Cumulative Total % of Cumulative

Variance % Variance %

1 4.986 29.332 29.332 4.986 29.332 29.332

2 3.089 18.171 47.503 3.089 18.171 47.503

3 2.487 14.632 62.135 2.487 14.632 62.135

4 1.746 10.272 72.407 1.746 10.272 72.407

5 1.244 7.320 79.727 1.244 7.320 79.727

6 1.019 5.995 85.722 1.019 5.995 85.722

7 .838 4.929 90.651

8 .568 3.341 93.993

9 .292 1.715 95.708

10 .222 1.309 97.016

11 .195 1.146 98.162

12 .152 .893 99.055

13 .094 .556 99.611

14 .066 .389 100.000

15 1.000E-013 1.000E-013 100.000

116
16 1.000E-013 1.000E-013 100.000

17 -1.000E-013 -1.002E-013 100.000

Extraction Method: Principal Component Analysis.

The results in table 4.6 showed significant factor loading in “Extraction Sums of

Squared Loadings” for only six (06) items of the scale. The percentage of variance for

the six items were 29.332, 18.171, 14.632, 10.272, 7.320 and 5.995 respectively. The

all six components contributed an overall 86% share in the total explanation of

purchase intentions.

In order to identify these six (06) items with high factor loading, the component matrix

helped.

Table 4.7: Component Matrix

Component

1 2 3 4 5 6

C1 .952 -.148 -.227 .012 -.060 .017

C2 .220 -.333 .890 -.143 -.034 -.109

C3 .952 -.148 -.227 .012 -.060 .017

C4 .952 -.148 -.227 .012 -.060 .017

C5 .204 .220 -.350 -.337 .520 -.572

C6 .211 .143 .250 .849 .072 .238

C7 .141 .030 -.021 -.483 .176 .489

117
 C8 .220 -.333 .890 -.143 -.034 -.109

C9 .469 -.011 .196 .164 .764 -.071

C10 -.160 .334 .102 .697 .092 -.264

C11 -.574 .161 .060 -.075 .519 .453

C12 .689 -.125 .431 -.033 .151 .143

C13 .231 .859 .154 -.224 -.054 .077

C14 .012 .865 .056 .049 -.026 .097

C15 .840 .022 -.244 .156 -.001 .202

C16 .179 .682 .487 -.179 -.102 -.117

C17 .476 .791 .049 -.098 -.163 -.038

Extraction Method: Principal Component Analysis.

a. 6 components extracted.

The results of table 4.7 showed six (06) items with significant factor loading as

components extracted for data reduction. They were C1, C3, C4, C11, C12, and C15.

Hence, the following items would be included in scale of main study:

Country of Origin-REDUCED
C1 Pakistani people should always buy Pakistani-made products instead of imports.

C3 Buy Pakistani-made products. Keep Pakistan working

C4 Pakistani products first, last and foremost.

118
C 11 Pakistanis should not buy foreign products, because this hurts Pakistani businesses and

causes unemployment.

C 12 Curbs should be put on all imports.

C 15 Foreign products should be taxed heavily to reduce their entry into the Pakistani

market.

The researcher run factor analysis to reduce the number of questions in the

questionnaire. The following scale of perceived value was analysed:

Perceived Value
PV 1 The price of the brand will be very economical for me.

PV 2 The price of the brand will be unacceptable for me.*

PV 3 The price of the brand will appear as bargain.

PV 4 The price to acquire the brand will be reasonable.

PV 5 The brand will have a longer product life.

PV 6 I will not feel superiority by owing this brand.*

PV 7 From my experience of this brand, I feel that I will get quality attributes.

PV 8 I do not feel that the brand for the price will be of good quality.*

PV 9 I do believe that the brand for the price will outperform other brands.

119
PV 10 I think the brand will contain unique features for the price.

PV 11 The purchase of the brand will be a good deal but I have to search for the related

information before making the purchase decision.

PV 12 Acquisition of this brand will not be worthwhile if I do not spend time to compare

with others.*

PV 13 The purchase of the brand will have a good value, for that I would have to employ a

lot of effort.

The results of factor analysis through principal component analysis (PCA) showed the

following results:

Table 4.8: Communalities

Table 7: Communalities

Initial Extraction

PV1 1.000 .930

PV2 1.000 .813

PV3 1.000 .880

PV4 1.000 .827

PV5 1.000 .854

PV6 1.000 .662

PV7 1.000 .865

PV8 1.000 .774

120
 PV9 1.000 .914

PV10 1.000 .912

PV11 1.000 .967

PV12 1.000 .831

PV13 1.000 .769

Extraction Method: Principal Component Analysis.

Table 4.8 showed initial factor loading for the scale items. Initial communalities for all

scale items were 1 whereas the extractions were .930, .813, .880, .827, .854, .662,

.865, .774, .914, .912, .967, .831, and .769 respectively for PV1 to PV13.

Table 4.9: Total Variance Explained

Table 8: Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Loadings

Total % of Cumulative Total % of Cumulative

Variance % Variance %

1 4.640 35.695 35.695 4.640 35.695 35.695

2 3.791 29.160 64.855 3.791 29.160 64.855

3 1.498 11.526 76.380 1.498 11.526 76.380

4 1.069 8.223 84.603 1.069 8.223 84.603

5 .613 4.714 89.317

6 .426 3.280 92.597

121
7 .348 2.676 95.273

8 .235 1.810 97.082

9 .185 1.424 98.506

10 .125 .965 99.471

11 .049 .375 99.847

12 .014 .106 99.952

13 .006 .048 100.000

Extraction Method: Principal Component Analysis.

The results in table 4.9 showed significant factor loading in “Extraction Sums of

Squared Loadings” for only four (04) items of the scale. The percentage of variance

for the four items were 35.695, 29.160, 11.526, and 8.223 respectively. The all four

component contributed an overall 85% share in the total explanation of purchase

intentions.

In order to identify these four (04) items with high factor loading, the component

matrix helped.

Table 4.10: Component Matrix

Component

1 2 3 4

PV1 .369 .857 -.244 .000

PV2 .827 -.088 -.051 .343

122
 PV3 .244 .712 -.027 .559

PV4 .833 -.241 -.125 -.244

PV5 .332 .736 -.449 -.001

PV6 .639 -.166 .310 .361

PV7 .716 -.293 .472 -.209

PV8 .038 .719 .413 -.292

PV9 .911 -.056 -.254 -.130

PV10 .187 .772 .200 -.490

PV11 .880 -.163 -.379 -.148

PV12 .051 .785 .419 .188

PV13 .625 -.258 .553 .070

Extraction Method: Principal Component Analysis.

a. 4 components extracted.

The results of table 4.10 showed four (4) items with factor loading more than 0.70 as

components extracted for data reduction. They were PV1, PV4, PV9 and PV11.

Hence, the following items would be included in scale of main study:

Perceived Value-REDUCED
PV 1 The price of the brand will be very economical for me.

PV 4 The price to acquire the brand will be reasonable.

PV 9 I do believe that the brand for the price will outperform other brands.

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PV 11 The purchase of the brand will be a good deal but I have to search for the related

information before making the purchase decision.

4.1.4. Reliability Statistics after Pilot Testing

Overall Reliability Statistics (Cronbach's Alpha) for the questionnaire was 0.891

which showed a greater reliability after running the factor analysis and reducing scale

items.

Table 4.11: Reliability Statistics

Reliability Statistics
Cronbach's Alpha N of Items
.891 20

The results of reliability test given in table 4.11 showed a great reliability of reduced

items questionnaire to be used in main study. Hence, the researcher used the reduced

items scale for purchase intentions, country of origin and perceived value for the main

study.

After conducting the pilot study and getting reduced items scales in questionnaire, the

researcher obtained data from 1015 respondents for the main study. The details

pertaining to the main study are discussed in the following section.

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4.2 RESULTS OF MAIN STUDY

In this section the results of main study are discussed on the basis of data collected

from 1015 respondents. In this study, impact of mobile version of facebook

advertisements have been evaluated and the moderating role of country of origin and

perceived value have also been evaluated on the basis of the data collected from the

respondents. The researcher has applied frequency distribution tests to analyze the

demographic variables and summarized the overall results in the form of tables. The

following sections pertain to the results of main study:

4.3 DESCRIPTIVE STATISTICS

Frequency distributions are shown for demographic details of the respondents in the

tables which is a part of descriptive statistics. Mean, standard deviations are also

shown for main variables of the study in the tables given below.

Table 4.12: Frequency Distribution W.R.T. Gender

Number of respondent (N=100)

Gender Frequency Percentage (%)
Male 696 68.6
Female 319 31.4
Total 1015 100.0

It is observed from the frequency distribution given in table 4.12 that 68.6 percent

respondents are male, and 31.4 percent respondents are female from total of 1015

respondents undertaken in current research. Females are lesser in number in this study

due to the cultural values, ethics and norms in Pakistan.

125
 Table 4.13: Frequency Distribution W.R.T. Age
Number of respondent (N=100)
Age Frequency Percentage (%)
<20 Years 45 4.4
20-25 Years 417 41.1
26-30 Years 277 27.3
31-35 Years 265 26.1
36-40 Years 11 1.1
Total 1015 100.0

Results in Table 4.13 show that the majority of the respondents belonged to the age

group of 20-25 years that is 41.1 percent. The second and third high percentage of

respondents belong to the age groups of 26-30 years (27.6 percentage) and 31-35 years

(26.1 percentage).

Table 4.14: Frequency Distribution W.R.T. Monthly Income

Number of respondent (N=100)
Monthly Income
Frequency Percentage (%)
(Rs.)
<15000 172 16.9
<30000 340 33.5
<45000 190 18.7
<60000 101 10.0
<75000 186 18.3
>75000 26 2.6
Total 1015 100.0

Results of table 4.14 reveal that a majority of respondents fall in the income groups of

Rs. 15,000-30,000 income group. This shows that the majority of the respondents of

126
this study belongs to the middle economic class. In spite this, an average spread can be

seen along all income groups.

Table 4.15: Frequency Distribution W.R.T. Education

Number of respondents (N=100)
Education Frequency Percentage (%)
Graduation 484 47.7
Master 305 30.0
MS/PhD 226 22.3
Total 1015 100.0

Table 4.15 shows the rate of response from the respondents with respect to their

educational qualifications such as Graduation, Master and MS/Ph.D. the results show

that a majority of respondents (47.7 percentage) are from graduate degree programs

whereas the students of MS/PHD programs are least in this regard.

Table 4.16: Frequency Distribution W.R.T. Work Experience

Number of respondent (N=100)
Work Experience Frequency Percentage (%)
NIL 604 59.5
<1 Year 9 .9
1-3 Years 249 24.5
4-5 Years 153 15.1
Total 1015 100.0

The results of table 4.16 show that a majority (59.5 percentage) of the respondents

have no work experience. While a second majority of respondents (24.5 percent) have

experience of 1-3 years.

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 Table 4.17: Frequency Distribution W.R.T. Length of Facebook Usage
Number of respondent (N=100)
Length of Use Frequency Percentage (%)
<1 Year 229 22.6
1 Year 387 38.1
2 Years 288 28.4
3 Years 77 7.6
>3 Years 34 3.3
Total 1015 100.0

The results of table 4.17 reveal that a majority (38.1 percentage) of the respondents

have been using facebook networking social media on mobile for round one (01) year.

The results further reveal that only 7.6 percent have been using facebook for 3 years

and only 3.3 percent of the respondents have been using facebook for more than 3

years.

Table 4.18: Frequency Distribution W.R.T. Frequency of Facebook Usage

Number of respondent (N=100)
Frequency of Use Frequency Percentage (%)
Daily 533 52.5
Twice a Week 412 40.6
Weekly 48 4.7
Twice a Month 22 2.2
Total 1015 100.0

The results of table 4.18 show that that a majority (52.5 percentage) of the respondents

have been using facebook networking social media on mobile on daily basis and

another majority (40.6 percent) have been using facebook twice a week. These results

about “Frequency of Facebook Usage” show a good sign for inferential statistics.

128
 Table 4.19: Frequency Distribution W.R.T. Log-On Duration
Number of respondent (N=100)
Log-On Duration Frequency Percentage (%)
1 Hour or Less 109 10.7
2 Hours 183 18.0
3 Hours 186 18.3
4 Hours 252 24.8
>4 Hours 285 28.1
Total 1015 100.0

The results of table 4.19 exhibit that a majority (28.1 percentage) of the respondents

log-on facebook networking social media on their mobiles with a duration of more

than 04 hours. Another majority (24.8 percent) have log-on duration of 4 hours. These

results about “Log-On Duration” also show a supporting demographics for inferential

statistics in order to generalize the results of this study.

Table 4.20: Frequency Distribution W.R.T. Profile Update

Number of respondent (N=100)
Profile Update Frequency Percentage (%)
Twice a Month 234 23.1
Monthly 781 76.9
Total 1015 100.0

The results of table 4.20 show that that a majority (76.9 percentage) of the respondents

have been updating facebook profiles on “Monthly” daily basis whereas 23.1 percent

have been updating facebook profiles on “Twice a Month” basis.

129
 Table 4.21: Descriptive Statistics

N Mean Std. Skewness Kurtosis

Deviation
Statistic Statistic Statistic Statistic Std. Statistic Std.
Error Error
HPI 1015 4.3314 .29459 -.109 .077 1.164 .153
SI 1015 4.1875 .36289 -1.025 .077 .425 .153
ORGI 1015 4.1537 .49766 -1.118 .077 .545 .153
PI 1015 4.2419 .57745 -.223 .077 -1.026 .153
COO 1015 3.8882 .43180 -.609 .077 -.333 .153
PV 1015 4.1165 .61721 -.014 .077 -.860 .153
Valid N 1015
(listwise)

The results of descriptive statistics shown in table 4.21 reveal the description of data in

terms of average (mean) and its deviation from the average (standard deviation).

Results of above table showed the descriptive statistics of Facebook advertisement

(homepage impression, social impression, and organic impression), purchase

intentions, country of origin and perceived value. The results showed an average level

of HPI (4.33), SI (4.18), ORGI (4.15), PI (4.24), COO (3.88) and PV (4.11) in the

students of universities of Pakistan that were more than the neutral value of 3. Hence,

the researcher concluded that the students have a favourable tendency towards of three

types of Facebook advertisements which are homepage impression, social impression,

and organic impression. They also have agreed that their purchase intentions towards

the products advertised on mobile facebook were positive and more than the neutral

130
value of 3. The respondents also showed that they have concern about country of

origin of a product which is advertised on mobile facebook advertisement. They also

have agreed that they consider the perceived value of a product which is advertised on

mobile facebook advertisement.

The values of standard deviation (.29459, .36289, .49766, .57745, .43180, .61721)

show that there is deviation of the responses from its mean value showing a deviation

of 29% in homepage impression, 36% in social impression, 49% in organic

impression, 57% in purchase intentions, 43% in country of origin and 61% in

perceived value of individual responses around their means respectively.

All the skewness and kurtosis value are less than 2, which show that the data is

normally distributed. As a basic need in most of the statistical analyses, it is vital to

check the location and variability (skewness and kurtosis) of a data set. Skewness

measures the symmetry or lack of symmetry of data set. In a normal distribution data

set should look symmetric i.e. bell shaped data set which is same to the left and right

sides from its centre. Whereas Kurtosis measures the flatness or peakness of data set. It

is shown by heavy-tailed or light-tailed data set. A flat or low tailed kurtosis data set

shows minimum outliers and normal distribution of data set. The values of skewness

and kurtosis between -2 and +2 are considered acceptable in order to prove normal

univariate distribution (George & Mallery, 2010).

131
4.4 MULTICOLLINEARITY DIAGNOSTICS

Multicollinearity is a state in which independent variables are highly correlated. There

is some certain correlation between independent variables but it should not be enough

high to bias the significance test or findings and inference the results. It is better to run

collinearity diagnostic test in SPSS before regression analysis (Menard, 2002). O’

Brien (2007) describes variance inflation factor (VIF) less than 5 shows the lack of

Multicollinearity and reliability of significance test and findings.

Table 4.22: Multi-Collinearity Statistics

Coefficientsa
Model Collinearity Statistics
Tolerance VIF
HPI .605 1.653
1 SI .385 2.599
ORGI .307 3.258
a. Dependent Variable: PI

The results show that Multicollinearity is not high enough that may distort the findings

of regression analysis which is shown by VIFs that is lower than 5. The results of

multicollinearity analysis show that there was no issue of multi collinearity in the data

set because variance inflation factor was significantly lower. Hence, the researcher

applied regression analysis.

132
 4.5 REGRESSION ANALYSIS

The researcher applied regression analysis to test the hypotheses which were

developed after literature review. Researcher used r egression analysis to determine the

degree to which independent variables homepage impression, social impression, and

organic impression (Mobile Facebook advertisements) can explain purchase intentions

(dependent variable) keeping in the view country of origin (moderating variable) and

perceived value (moderating variable).

In the first regression model, purchase intentions is regressed with all the independent

variables; homepage impression, social impression, and organic impression (Mobile

Facebook advertisements) in aggregate to assess the goodness of fit for the model and

asses the collective impact of these predictors. In the second regression model,

purchase intentions is regressed with all the independent variables; homepage

impression, social impression, and organic impression (Mobile Facebook

advertisements) separately to assess the individual impact of these predictors. In the

third regression model, purchase intentions is regressed with all the independent

variables; homepage impression, social impression, and organic impression (Facebook

advertisements) separately to assess the assess the individual impact of these predictors

along with the interaction impact i.e. moderation of country of origin and perceived

value separately.

But before applying regression analysis, the researcher checked the basic assumption

of regression analysis as follow:

133
 4.5.1. Assumptions of Regression Analysis

The following main assumptions are to be fulfilled to cope with the distortion in the

results of significance test and findings in regression analysis:

1. The sample is true representative of the population for reliable prediction

2. Variables should be normally distributed because non-normal distribution can

distort associations and test of significance (Skewness and Kurtosis).

3. Dependent and independent variables should be linearly independent in nature

and so that there is no multicolinearity because non-linearity under-estimates

existing association of variables. It may be approximately linear for a range of

the population for practical purpose (Multicollinearity Analysis).

4. Variance of errors should be the same across all levels of the independent

variables (Homoscedasticity). Heteroscedasticity (lack of similarity) may

distort significance test and findings of analysis.

4.6 REGRESSION MODEL 1

The researcher regressed purchase intentions with all the independent variables;

homepage impression, social impression, and organic impression (Mobile Facebook

advertisements) in aggregate to assess the goodness of fit for the model and asses the

collective impact of Mobile Facebook advertisements (homepage impression, social

impression, and organic impression) on purchase intentions. Results of regression

analysis are shown as under:

134
 Table 4.23: Model Summary

Model R R Square Adjusted R Std. Error of

Square the Estimate
a
1 .757 .572 .572 .37783
a. Predictors: (Constant), FB_ADV

The results of “Adjusted R Square” show that 57% of deviation from the mean in

purchase intentions was explained by the independent variable mobile Facebook

Advertisements as an aggregative variable consisting of homepage impression, social

impression, and organic impression dimensions. The value of standard error of

estimates show that there is a slight variation in the model which may change the

results up to +0.37783 or -0.37783.

Table 4.24: ANOVA

Model Sum of Df Mean Square F Sig.

Squares
Regression 193.508 1 193.508 1355.502 .000b
1 Residual 144.613 1013 .143
Total 338.120 1014
a. Dependent Variable: PI
b. Predictors: (Constant), FB_ADV

The results of ANOVA show that the significance value (p=0.000) in this model show

that the model is statistically significant. A total change of 338.120 in purchase

intentions is took place. Whereas mobile facebook advertisements bring 193.508

change in purchase intentions.

135
 Table 4.25: Coefficients

Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) -1.190 .148 -8.039 .000
1
FB_ADV 1.286 .035 .757 36.817 .000
a. Dependent Variable: PI

The Significance value (p=0.000) show a significant and positive impact of mobile

facebook advertisements on purchase intentions. Hence, the researcher accepted the

hypothesis that of mobile facebook advertisements have positive impact on purchase

intentions. This cause and effect relationship was further confirmed by the

standardized beta coefficient (0.575) which is not zero which was also confirmed

further by t-value which is more than 2.

Hypothesis 1: Mobile Facebook Advertisements have positive significant impact on

purchase intentions. Accepted.

4.7 REGRESSION MODEL 2

The researcher regressed purchase intentions with all the independent variables;

homepage impression, social impression, and organic impression (Mobile Facebook

advertisements) separately in order to assess their individual impact on purchase

intentions. Results of regression analysis are shown as under:

136
4.7.1. Mobile Facebook Homepage Impression Advertisement and Purchase

Intentions

Table 4.26: Model Summary

Model R R Square Adjusted R Std. Error of

Square the Estimate
a
1 .562 .316 .315 .47777
a. Predictors: (Constant), HPI

The results of “Adjusted R Square” show that 31.5% of deviation from the mean in

purchase intentions was explained by the independent variable homepage impression.

The value of standard error of estimates show that there is a slight variation in the

model which may change the results up to +0.47777 or -0.47777.

Table 4.27: ANOVA

ANOVAa
Model Sum of df Mean Square F Sig.
Squares
Regression 106.889 1 106.889 468.272 .000b
1 Residual 231.231 1013 .228
Total 338.120 1014
a. Dependent Variable: PI
b. Predictors: (Constant), HPI

The results of ANOVA show that the significance value (p=0.000) in this model show

that the model is statistically significant. A total change of 338.120 in purchase

intentions is took place. Whereas homepage impression mobile facebook

advertisement individually bring 106.889 change in purchase intentions.

137
 Table 4.28: Coefficients

Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) -.532 .221 -2.405 .016
1
HPI 1.102 .051 .562 21.640 .000
a. Dependent Variable: PI

The Significance value (p=0.000) show a significant positive impact of homepage

impression mobile facebook advertisement on purchase intentions. Hence, the

researcher accepted the hypothesis that of mobile facebook advertisements have

positive impact on purchase intentions. This cause and effect relationship was further

confirmed by the standardized beta coefficient (0.562) which is not zero which was

also confirmed further by t-value which is more than 2.

Hypothesis 2: Mobile homepage impression facebook advertisement has positive

significant impact on purchase intentions. Accepted.

4.7.2. Mobile Facebook Social Impression Advertisement and Purchase

Intentions

Table 4.29: Model Summary

Model Summary
Model R R Square Adjusted R Std. Error of
Square the Estimate
a
1 .519 .269 .268 .49394
a. Predictors: (Constant), SI

138
The results of “Adjusted R Square” show that 26.8% of deviation from the mean in

purchase intentions was explained by the independent variable mobile social

impression facebook advertisement. The value of standard error of estimates show that

there is a slight variation in the model which may change the results up to +0.4939 or -

0.4939.

Table 4.30: ANOVA

Model Sum of df Mean Square F Sig.

Squares
Regression 90.968 1 90.968 372.850 .000b
1 Residual 247.152 1013 .244
Total 338.120 1014
a. Dependent Variable: PI
b. Predictors: (Constant), SI

The results of ANOVA show that the significance value (p=0.000) in this model show

that the model is statistically significant. A total change of 338.120 in purchase

intentions is took place. Whereas social impression mobile facebook advertisement

individually bring 90.968 change in purchase intentions.

Table 4.31: Coefficients

Model Unstandardized Standardized t Sig.

Coefficients Coefficients
B Std. Error Beta
(Constant) .786 .180 4.372 .000
1
SI .825 .043 .519 19.309 .000
a. Dependent Variable: PI

139
The Significance value (p=0.000) show a significant positive impact of homepage

impression mobile facebook advertisement on purchase intentions. Hence, the

researcher accepted the hypothesis that social impression mobile facebook

advertisement has positive impact on purchase intentions. This cause and effect

relationship was further confirmed by the standardized beta coefficient (0.519) which

is not zero which was also confirmed further by t-value which is more than 2.

Hypothesis 3: Social impression mobile facebook advertisement has positive

significant impact on purchase intentions. Accepted.

4.7.3. Mobile Facebook Organic Impression Advertisement and Purchase

Intentions

Table 4.32: Model Summary

Model R R Square Adjusted R Std. Error of

Square the Estimate
a
1 .838 .703 .702 .31503
a. Predictors: (Constant), ORGI

The results of “Adjusted R Square” show that 70.2% of deviation from the mean in

purchase intentions was explained by the independent variable organic impression

mobile facebook advertisement. The value of standard error of estimates show that

there is a slight variation in the model which may change the results up to +0.315 or -

0.315.

140
 Table 4.33: ANOVA

Model Sum of df Mean Square F Sig.

Squares
Regression 237.589 1 237.589 2394.052 .000b
1 Residual 100.531 1013 .099
Total 338.120 1014
a. Dependent Variable: PI
b. Predictors: (Constant), ORGI

The results of ANOVA show that the significance value (p=0.000) in this model show

that the model is statistically significant. A total change of 338.120 in purchase

intentions is took place. Whereas organic impression mobile facebook advertisement

individually bring 237.589 change in purchase intentions.

Table 4.34: Coefficients

Model Unstandardized Standardized t Sig.

Coefficients Coefficients
B Std. Error Beta
(Constant) .202 .083 2.426 .015
1
ORGI .973 .020 .838 48.929 .000
a. Dependent Variable: PI

The Significance value (p=0.000) show a significant positive impact of organic

impression mobile facebook advertisement on purchase intentions. Hence, the

researcher accepted the hypothesis that organic impression mobile facebook

advertisement has positive impact on purchase intentions. This cause and effect

141
relationship was further confirmed by the standardized beta coefficient (0.838) which

is not zero which was also confirmed further by t-value which is more than 2.

Hypothesis 4: Organic impression mobile facebook advertisement has positive

significant impact on purchase intentions. Accepted.

4.8 MODERATED REGRESSION MODEL 3

In this regression model, purchase intentions is regressed with all the independent

variables; homepage impression, social impression, and organic impression (Facebook

advertisements) separately to assess the individual impact of these predictors along

with the interaction impact i.e. moderation of country of origin and perceived value

separately. Results of regression analysis are shown as under:

4.8.1. Mobile Facebook Homepage Impression Advertisement and (Purchase

Intentions x Country of Origin)

Table 4.35: Model Summary

Model R R Square Adjusted R Std. Error of the

Square Estimate
1 .562a .316 .315 .47777
2 .953b .909 .909 .17444

Change Statistics
R Square F Change df1 df2 Sig. F Change
Change
.316 468.272 1 1013 .000
.593 6586.804 1 1012 .000

a. Predictors: (Constant), C_HPI

b. Predictors: (Constant), C_HPI, I_PI_COO

142
The results of table 4.35 show that 31.5% of deviation from the mean in purchase

intentions is explained by the independent variable homepage impression. Whereas,

when the researcher has applied the interaction (moderation) effect of country of

origin, the impact was increased to 90.9%.

Table 4.36: ANOVA

Model Sum of df Mean Square F Sig.

Squares
Regression 106.889 1 106.889 468.272 .000b
1 Residual 231.231 1013 .228
Total 338.120 1014
Regression 307.325 2 153.663 5049.722 .000c
2 Residual 30.795 1012 .030
Total 338.120 1014
a. Dependent Variable: PI
b. Predictors: (Constant), C_HPI
c. Predictors: (Constant), C_HPI, I_PI_COO

The results of ANOVA show that the total change of 338.120 in purchase intentions is

took place from which homepage impression mobile facebook advertisement

individually bring 106.889 change in purchase intentions before moderation. After

running the moderating effect of COO, the change increased to 307.325.

143
 Table 4.37: Coefficients

Model Unstandardized Coefficients Standardized t Sig.

Coefficients
B Std. Error Beta
(Constant) 4.240 .015 282.757 .000
1
C_HPI 1.102 .051 .562 21.640 .000
(Constant) 1.761 .031 56.713 .000
2 C_HPI -.007 .023 -.003 -.296 .767
I_PI_COO .149 .002 .955 81.159 .000
a. Dependent Variable: PI

The results show an increase in the standardized beta coefficient (from 0.562 to 0.955)

which shows a significant positive impact of homepage impression mobile facebook

advertisement on purchase intentions with significant moderating role of country of

origin. Hence, the researcher accepted the hypothesis that homepage mobile facebook

advertisement’s positive impact on purchase intentions is positively moderated by the

country of origin.

Hypothesis 5: Country of origin of a product positively moderates the relationship

between mobile homepage impression facebook advertisement and purchase

intentions. Accepted.

4.8.2. Mobile Facebook Homepage Impression Advertisement and (Purchase

Intentions x Perceived Value)

144
 Table 4.38: Model Summary

Model R R Square Adjusted R Std. Error of the

Square Estimate
a
1 .562 .316 .315 .47777
b
2 .961 .923 .923 .16031
Change Statistics
R Square F Change df1 df2 Sig. F Change
Change
.316 468.272 1 1013 .000
.607 7985.868 1 1012 .000
a. Predictors: (Constant), C_HPI
b. Predictors: (Constant), C_HPI, I_PI_PV

The results of table 4.38 show that 31.5% of deviation from the mean in purchase

intentions is explained by the independent variable homepage impression. Whereas,

when the researcher has applied the interaction (moderation) effect of perceived value,

the impact was increased to 92.3%.

Table 4.39: ANOVA

Model Sum of df Mean Square F Sig.

Squares
Regression 106.889 1 106.889 468.272 .000b
1 Residual 231.231 1013 .228
Total 338.120 1014
Regression 312.114 2 156.057 6072.622 .000c
2 Residual 26.007 1012 .026
Total 338.120 1014
a. Dependent Variable: PI
b. Predictors: (Constant), C_HPI
c. Predictors: (Constant), C_HPI, I_PI_PV

145
The results of ANOVA show that the total change of 338.120 in purchase intentions is

took place from which homepage impression mobile facebook advertisement

individually bring 106.889 change in purchase intentions before moderation. After

running the moderating effect of perceived value, the change increased to 312.114.

Table 4.40: Coefficients

Model Unstandardized Standardized t Sig.

Coefficients Coefficients
B Std. Error Beta
(Constant) 4.240 .015 282.757 .000
1
C_HPI 1.102 .051 .562 21.640 .000
(Constant) 2.346 .022 107.652 .000
2 C_HPI .238 .020 .121 12.127 .000
I_PI_PV .107 .001 .895 89.364 .000
a. Dependent Variable: PI

The results show an increase in the standardized beta coefficient (from 0.562 to 0.895)

which shows a significant positive impact of homepage impression mobile facebook

advertisement on purchase intentions with significant moderating role of perceived

value. Hence, the researcher accepted the hypothesis that homepage mobile facebook

advertisement’s positive impact on purchase intentions is positively moderated by

perceived value.

Hypothesis 6: Perceived value of the product origin positively moderates the

relationship between mobile homepage impression facebook advertisement and

purchase intentions. Accepted.

146
4.8.3. Mobile Facebook Social Impression Advertisement and (Purchase

Intentions x Country of Origin)

Table 4.41: Model Summary

Model R R Square Adjusted R Std. Error of the

Square Estimate
a
1 .519 .269 .268 .49394
b
2 .953 .909 .909 .17445
Change Statistics
R Square F Change df1 df2 Sig. F Change
Change
.269 372.850 1 1013 .000
.640 7109.452 1 1012 .000

a. Predictors: (Constant), C_SI

b. Predictors: (Constant), C_SI, I_PI_COO

The results of table 4.41 show that 26.8% of deviation from the mean in purchase

intentions is explained by the independent variable social impression advertisement on

mobile facebook. But, when the researcher has applied the interaction (moderation)

effect of country of origin, the impact was increased to 90.9%.

147
 Table 4.42: ANOVA

Model Sum of df Mean Square F Sig.

Squares
Regression 90.968 1 90.968 372.850 .000b
1 Residual 247.152 1013 .244
Total 338.120 1014
Regression 307.323 2 153.662 5049.340 .000c
2 Residual 30.797 1012 .030
Total 338.120 1014
a. Dependent Variable: PI
b. Predictors: (Constant), C_SI
c. Predictors: (Constant), C_SI, I_PI_COO

The results of ANOVA show that the total change of 338.120 in purchase intentions is

taken place from which social impression advertisement on mobile facebook

individually bring 90.968 change in purchase intentions before moderation. After

running the moderating effect of COO, the change increased to 307.323.

Table 4.43: Coefficients

Model Unstandardized Standardized t Sig.

Coefficients Coefficients
B Std. Error Beta
(Constant) 4.236 .016 273.139 .000
1
C_SI .825 .043 .519 19.309 .000
(Constant) 1.768 .030 59.378 .000
2 C_SI .002 .018 .002 .134 .894
I_PI_COO .148 .002 .953 84.318 .000
a. Dependent Variable: PI

The results show an increase in the standardized beta coefficient (from 0.562 to 0.953)

which shows a significant positive impact of social impression mobile facebook

148
advertisement on purchase intentions with significant moderating role of country of

origin. Hence, the researcher accepted the hypothesis that social impression mobile

facebook advertisement’s positive impact on purchase intentions is positively

moderated by the country of origin.

Hypothesis 7: Country of origin of a product positively moderates the relationship

between mobile facebook social impression advertisement and purchase intentions.

Accepted.

4.8.4. Mobile Facebook Social Impression Advertisement and (Purchase

Intentions x Perceived Value)

Table 4.44: Model Summary

Model R R Square Adjusted R Std. Error of the

Square Estimate
a
1 .519 .269 .268 .49394
b
2 .957 .917 .917 .16673
Change Statistics
R Square F Change df1 df2 Sig. F Change
Change
.269 372.850 1 1013 .000
.648 7879.060 1 1012 .000
a. Predictors: (Constant), C_SI
b. Predictors: (Constant), C_SI, I_PI_PV

The results show that 26.8% of deviation from the mean in purchase intentions is

explained by the independent variable social impression mobile facebook

149
advertisement. However, after running the moderated regression with interaction

(moderation) effect of perceived value, the impact was increased to 91.7%.

Table 4.45: ANOVA

Model Sum of df Mean Square F Sig.

Squares
Regression 90.968 1 90.968 372.850 .000b
1 Residual 247.152 1013 .244
Total 338.120 1014
Regression 309.989 2 154.995 5575.777 .000c
2 Residual 28.131 1012 .028
Total 338.120 1014
a. Dependent Variable: PI
b. Predictors: (Constant), C_SI
c. Predictors: (Constant), C_SI, I_PI_PV

The results of ANOVA show that the total change of 338.120 in purchase intentions is

took place from which social impression mobile facebook advertisement individually

bring 90.968 change in purchase intentions before moderation. After running the

moderating effect of perceived value, the change increased to 309.989.

Table 4.46: Coefficients

Model Unstandardized Standardized t Sig.

Coefficients Coefficients
B Std. Error Beta
(Constant) 4.236 .016 273.139 .000
1
C_SI .825 .043 .519 19.309 .000
(Constant) 2.299 .022 102.487 .000
2 C_SI .127 .016 .080 7.715 .000
I_PI_PV .109 .001 .917 88.764 .000
a. Dependent Variable: PI

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The results show an increase in the standardized beta coefficient (from 0.519 to 0.917)

which shows a significant positive impact of social impression mobile facebook

advertisement on purchase intentions with significant moderating role of perceived

value. Hence, the researcher accepted the hypothesis that social mobile facebook

advertisement’s positive impact on purchase intentions is positively moderated by

perceived value.

Hypothesis 8: Perceived value of the product origin positively moderates the

relationship between social impression mobile facebook advertisement and purchase

intentions. Accepted.

4.8.5. Mobile Facebook Organic Impression Advertisement and (Purchase

Intentions x Country of Origin)

Table 4.47: Model Summary

Model R R Square Adjusted R Std. Error of the

Square Estimate
a
1 .838 .703 .702 .31503
b
2 .954 .910 .910 .17322
Change Statistics
R Square F Change df1 df2 Sig. F Change
Change
.703 2394.052 1 1013 .000
.208 2338.518 1 1012 .000
a. Predictors: (Constant), C_ORGI
b. Predictors: (Constant), C_ORGI, I_PI_COO

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The results of table 4.47 show that 70.2% of deviation from the mean in purchase

intentions is explained by the independent variable organic impression advertisement

on mobile facebook. But, when the researcher has applied the interaction (moderation)

effect of country of origin, the impact was increased to 91%.

Table 4.48: ANOVA

Model Sum of df Mean Square F Sig.

Squares
Regression 237.589 1 237.589 2394.052 .000b
1 Residual 100.531 1013 .099
Total 338.120 1014
Regression 307.756 2 153.878 5128.447 .000c
2 Residual 30.365 1012 .030
Total 338.120 1014
a. Dependent Variable: PI
b. Predictors: (Constant), C_ORGI
c. Predictors: (Constant), C_ORGI, I_PI_COO

The results of ANOVA show that the total change of 338.120 in purchase intentions is

taken place in purchase intentions from which organic impression advertisement on

mobile facebook individually bring 237.589 change in purchase intentions before

moderation. After running the moderating effect of COO, the change increased to

307.756.

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 Table 4.49: Coefficients

Model Unstandardized Standardized t Sig.

Coefficients Coefficients
B Std. Error Beta
(Constant) 4.238 .010 428.612 .000
1
C_ORGI .973 .020 .838 48.929 .000
(Constant) 1.579 .055 28.567 .000
2 C_ORGI -.093 .025 -.081 -3.799 .000
I_PI_COO .160 .003 1.026 48.358 .000
a. Dependent Variable: PI

The results show an increase in the standardized beta coefficient (from 0.838 to 1.026)

which shows a significant positive impact of organic impression mobile facebook

advertisement on purchase intentions with significant moderating role of country of

origin. Hence, the researcher accepted the hypothesis that organic impression mobile

facebook advertisement’s positive impact on purchase intentions is positively

moderated by the country of origin.

Hypothesis 9: Country of origin of a product positively moderates the relationship

between mobile facebook organic impression advertisement and purchase

intentions. Accepted.

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4.8.6. Mobile Organic Impression Facebook Advertisement and (Purchase

Intentions x Perceived Value)

Table 4.50: Model Summary

Model R R Square Adjusted R Std. Error of the

Square Estimate
a
1 .838 .703 .702 .31503
b
2 .966 .933 .933 .14916
Change Statistics
R Square F Change df1 df2 Sig. F Change
Change
.703 2394.052 1 1013 .000
.231 3506.285 1 1012 .000
a. Predictors: (Constant), C_ORGI
b. Predictors: (Constant), C_ORGI, I_PI_PV

The results show that 70.2% of deviation from the mean in purchase intentions is

explained by the independent variable organic impression mobile facebook

advertisement. However, after running the moderated regression with interaction

(moderation) effect of perceived value, the impact was increased to 93.3%.

Table 4.51: ANOVA

Model Sum of df Mean Square F Sig.

Squares
Regression 237.589 1 237.589 2394.052 .000b
1 Residual 100.531 1013 .099
Total 338.120 1014
Regression 315.604 2 157.802 7092.240 .000c
2 Residual 22.517 1012 .022
Total 338.120 1014

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 a. Dependent Variable: PI
b. Predictors: (Constant), C_ORGI
c. Predictors: (Constant), C_ORGI, I_PI_PV

The results of ANOVA show that the total change of 338.120 in purchase intentions is

took place from which organic impression mobile facebook advertisement individually

bring 237.589 change in purchase intentions before moderation. After running the

moderating effect of perceived value, the change increased to 315.604.

Table 4.52: Coefficients

Model Unstandardized Standardized t Sig.

Coefficients Coefficients
B Std. Error Beta
(Constant) 4.238 .010 428.612 .000
1
C_ORGI .973 .020 .838 48.929 .000
(Constant) 2.608 .028 93.402 .000
2 C_ORGI .273 .015 .235 18.075 .000
I_PI_PV .092 .002 .771 59.214 .000
a. Dependent Variable: PI

The results of table 4.52 show a slight decrease in the standardized beta coefficient

(from 0.838 to 0.771) which shows a significant positive impact of organic impression

mobile facebook advertisement on purchase intentions with significant moderating role

of perceived value. Hence, the researcher accepted the hypothesis that organic mobile

facebook advertisement’s positive impact on purchase intentions is positively

moderated by perceived value.

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Hypothesis 10: Perceived value of the product origin positively moderates the

relationship between organic impression mobile facebook advertisement and

purchase intentions. Accepted.

4.9 COMPARATIVE IMPACT OF THREE TYPES OF MOBILE

FACEBOOK ADVERTISMENTS

The researcher ran multiple regression model to check and compare the

comparative effects of homepage mobile facebook advertisement, social impression

mobile facebook advertisement and organic mobile facebook advertisement on

purchase intentions in order to assess their comparative impact on purchase intentions.

Results of this multiple regression analysis are shown as under:

Table 4.53: Model Summary

Model R R Square Adjusted R Std. Error of
Square the Estimate
a
1 .869 .755 .754 .28638
a. Predictors: (Constant), C_ORGI, C_HPI, C_SI

The results of “Adjusted R Square” show that 75% of deviation from the mean

in purchase intentions was explained collectively by the independent variable mobile

Facebook Advertisements (homepage impression, social impression, and organic

impression). The value of standard error of estimates show that there is a slight

variation in the model which may change the results up to +0.286 or -0.286.

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 Table 4.54: ANOVA
Model Sum of df Mean F Sig.
Squares Square
Regression 255.202 3 85.067 1037.203 .000b
1 Residual 82.918 1011 .082
Total 338.120 1014
a. Dependent Variable: PI
b. Predictors: (Constant), C_ORGI, C_HPI, C_SI

The results of ANOVA show that the significance value (p=0.000) in this model show

that the model was statistically significant. A total change of 338.120 in purchase

intentions is took place. Whereas mobile facebook advertisements bring 255.202

change in purchase intentions.

Table 4.55: Beta Coefficients

Model Unstandardized Standardized t Sig.

Coefficients Coefficients
B Std. Error Beta
(Constant) 4.241 .009 471.686 .000
C_HPI .113 .039 .058 2.883 .004
1
C_SI -.574 .040 -.361 -14.359 .000
C_ORGI 1.259 .033 1.085 38.587 .000
a. Dependent Variable: PI

The standardized absolute values of beta coefficients for homepage mobile

facebook advertisement, social impression mobile facebook advertisement and organic

impression mobile facebook advertisement were 0.058, 0.361, and 1.085. This shows

that homepage mobile facebook advertisement has least impact (beta Standardized

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Coefficients value 0.058) on purchase intentions of the mobile facebook users, social

impression mobile facebook advertisement has more impact (beta Standardized

Coefficients value 0.361) on purchase intentions of the mobile facebook users than

homepage mobile facebook advertisement and organic impression mobile facebook

advertisement has the largest impact (beta Standardized Coefficients value 1.085) on

purchase intentions of the mobile facebook users.

4.10 COMPARATIVE MODERATION EFFECTS OF COUNTRY OF

ORIGIN AND PERCEIVED VALUE

When the researcher compared the results of moderating effect of mobile

facebook advertisements, purchase intentions was regressed with all the independent

variables; homepage impression, social impression, and organic impression (Facebook

advertisements) separately to assess the individual impact of these predictors along

with the interaction effect of country of origin (COO) and perceived value. The

following results were helpful in making a comparison:

Table 4.56: Moderated Regressions-Homepage Impression

Mobile Facebook Homepage Impression Mobile Facebook Homepage Impression

Advertisement and (Purchase Intentions Advertisement and (Purchase Intentions
x Country of Origin) x Perceived Value)
Model R R Square Adjusted R Model R R Square Adjusted R
Square Square

1 .562a .316 .315 1 .562a .316 .315

2 .953b .909 .909 2 .961b .923 .923

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 The results of table 4.56 show that there was 31.5% of deviation from the mean

in purchase intentions explained by the independent variable homepage impression.

Whereas, when the researcher has applied the interaction (moderation) effect of

country of origin, the impact was increased to 90.9%. But when the researcher applied

the interaction (moderation) effect of perceived value, the impact was increased to

92.3%. Hence, the researcher concludes that interaction (moderation) effect of

perceived value is greater than the moderating effect of country of origin.

Table 4.57: Moderated Regressions-Social Impression

Mobile Facebook Social Impression Mobile Facebook Social Impression

Advertisement and (Purchase Intentions Advertisement and (Purchase Intentions
x Country of Origin) x Perceived Value)
Model R R Square Adjusted R Model R R Square Adjusted R
Square Square

1 .519a .269 .268 1 .519a .269 .268

2 .953b .909 .909 2 .957b .917 .917

The results of table 4.57 show that there was 26.9% of deviation from the mean

in purchase intentions explained by the independent variable social impression mobile

facebook advertisement. Whereas, when the researcher has applied the interaction

(moderation) effect of country of origin, the impact was increased to 90.9%. But when

the researcher applied the interaction (moderation) effect of perceived value, the

impact was increased to 91.7%. Hence, the researcher concludes that interaction

(moderation) effect of perceived value is greater than the moderating effect of country

of origin.

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 Table 4.58: Moderated Regressions-Organic Impression

Mobile Facebook Organic Impression Mobile Facebook Organic Impression

Advertisement and (Purchase Intentions Advertisement and (Purchase Intentions
x Country of Origin) x Perceived Value)
Model R R Square Adjusted R Model R R Square Adjusted R
Square Square

1 .838a .703 .702 1 .838a .703 .702

2 .954b .910 .910 2 .966b .933 .933

The results of table 4.58 show that there was 70.3% of deviation from the mean

in purchase intentions explained by the independent variable social impression mobile

facebook advertisement. Whereas, when the researcher has applied the interaction

(moderation) effect of country of origin, the impact was increased to 91%. But when

the researcher applied the interaction (moderation) effect of perceived value, the

impact was increased to 93.3%. Hence, the researcher concludes that interaction

(moderation) effect of perceived value is greater than the moderating effect of country

of origin.

4.11 SUMMARY OF CHAPTER

In this chapter, the researcher conducted a pilot study on the basis of data

collected from 42 respondents and analysed reliability statistics and Principal

Component Analysis (a data reduction technique). The respondents belonged to four

major cities of Pakistan i.e. Karachi, Lahore, Rawalpindi and Islamabad. The

160
respondents were university students who had shopping experience after seeing

Facebook advertisement on mobile version while keeping perceived value and brand

country of origin in mind. On the basis of pilot study, the researcher conducted main

study and collected data from 1015 respondents. The impact of mobile version of

facebook advertisements had been evaluated and the moderating role of country of

origin and perceived value had also been evaluated on the basis of the data collected

from the respondents. The researcher applied frequency distribution tests to analyze

the demographic variables and summarized the overall results in the form of tables.

Majority of the respondents (38.1 percentage) have been using facebook on mobiles

for round one (01) year. Majority (52.5 percentage) of the respondents from a total of

1015 respondents, have been using mobile facebook on daily basis. Majority (76.9

percentage) of the respondents have been updating facebook profiles on “Monthly”

daily basis. Majority (28.1 percentage) of the respondents log-on facebook on their

mobiles with a duration of more than 04 hours.

The results showed that there was a positive collective impact of all three types

of mobile facebook advertisements (homepage impression, social impression, and

organic impression) on purchase intentions. The relationship between independent

variables (mobile facebook advertisements) and dependent (purchase intentions)

variable was statistically significant as p-value is <0.05. It means that mobile facebook

advertisements (collectively) is a good predictor of purchase intentions which was

further confirmed by the standard beta coefficient value. The comparative impact of

three types of mobile facebook advertisements showed that homepage mobile

161
facebook advertisement had least impact on purchase intentions of the mobile

facebook users, social impression mobile facebook advertisement had more impact on

purchase intentions of the mobile facebook users than homepage mobile facebook

advertisement and organic impression mobile facebook advertisement had the largest

impact on purchase intentions of the mobile facebook users.

After that, the researcher used country of origin as moderator between mobile

facebook advertisements (homepage impression, social impression, organic

impression) and purchase intentions. The results show that a significant increase were

there after the moderation was run. The researcher also used perceived value as

moderator between mobile facebook advertisements (homepage impression, social

impression, organic impression) and purchase intentions. The results show that a

significant increase were there after the moderation was run. The comparative

moderation effects of country of origin and perceived value showed that interaction

(moderation) effect of perceived value is greater than the moderating effect of country

of origin between the relationship of Mobile Facebook Homepage Impression

Advertisement and Purchase Intentions. The moderating moderation effects of country

of origin and perceived value showed that interaction (moderation) effect of perceived

value is greater than the moderating effect of country of origin between the

relationship of Mobile Facebook Social Impression Advertisement and Purchase

Intentions. Likewise, the moderating moderation effects of country of origin and

perceived value showed that interaction (moderation) effect of perceived value is

162
greater than the moderating effect of country of origin between the relationship of

Mobile Facebook Organic Impression Advertisement and Purchase Intentions.

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 CHAPTER 5: FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS
This chapter consists of three major sections; findings, conclusions and

recommendations presented on the basis of the results obtained from the data analysis.

Results of the current study revealed that there is a positive and significant impact of

mobile facebook advertisements (all three types: homepage impression, social

impression, organic impression) on purchase intentions. Following is the brief of these

three sections:

5. 1. MAJOR FINDINGS

The fundamental purpose of this study was to assess the impact of impact of

three types of mobile facebook advertisements (homepage impression, social

impression, organic impression) on purchase intentions. However, there are the

possibilities that this simple cause and effect relationship is moderated by the

important variables of country of origin of a product and perceived value of a product

which are closely related to purchase intentions. Hence, the researcher included these

two variables as moderating variables. It means that country of origin and perceived

value of a product may reduce or accelerate the impact of impact of mobile facebook

advertisements (homepage impression, social impression, and organic impression) on

purchase intentions. After the data analysis (provided in chapter 4), below are the

major findings of this study:

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 i. Majority of the respondents (38.1 percentage) have been using

facebook on mobiles for round one (01) year.

ii. Majority (52.5 percentage) of the respondents from a total of 1015

respondents, have been using mobile facebook on daily basis.

iii. Majority (76.9 percentage) of the respondents have been updating

facebook profiles on “Monthly” daily basis.

iv. Majority (28.1 percentage) of the respondents log-on facebook on their

mobiles with a duration of more than 04 hours.

v. It is found in regression analysis that there is a positive collective

impact of three types of mobile facebook advertisements which are

homepage impression, social impression, and organic impression on

purchase intentions. The relationship between independent variable

(mobile facebook advertisements) and dependent (purchase intentions)

variable is statistically significant as p-value is <0.05. It means that

mobile facebook advertisements (collectively) is a good predictor of

purchase intentions which was further confirmed by the standard beta

coefficient value.

vi. It is found in regression analysis that there is a positive impact of

homepage impression mobile facebook advertisement on purchase

intentions. The relationship between independent variable (homepage

impression mobile facebook advertisement) and dependent (purchase

intentions) variable is statistically significant as p-value is <0.05. It

means that homepage impression mobile facebook advertisement is a

165
 good predictor of purchase intentions which was further confirmed by

the standard beta coefficient value.

vii. However, when the researcher used country of origin between the

independent variable (homepage impression mobile facebook

advertisement) and dependent (purchase intentions) variable, the impact

was statistically significant and increased significantly as well. It means

that country of origin positively moderates the relationship between

independent variable (homepage impression mobile facebook

advertisement) and dependent (purchase intentions) variable.

viii. When the researcher used perceived value as a moderator in the

relationship between homepage impression mobile facebook

advertisement and purchase intentions, the impact was increased

significantly. It means that perceived value positively moderates the

relationship between independent variable and dependent variable.

ix. It is found in regression analysis that there is a positive impact of social

impression mobile facebook advertisement on purchase intentions. The

relationship between independent variable (social impression mobile

facebook advertisement) and dependent (purchase intentions) variable

is statistically significant as p-value is <0.05. It means that homepage

impression mobile facebook advertisement is a good predictor of

purchase intentions which was further confirmed by the standard beta

coefficient value.

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 x. When the researcher used country of origin between the independent

variable (social impression mobile facebook advertisement) and

dependent (purchase intentions) variable, the impact was increased

significantly. It means that country of origin positively moderates the

relationship between independent variable (social impression mobile

facebook advertisement) and dependent (purchase intentions) variable.

xi. When the researcher used perceived value as a moderator in the

relationship between social impression mobile facebook advertisement

and purchase intentions, the impact was increased significantly. It

means that perceived value positively moderates the relationship

between independent variable and dependent variable.

xii. It is found in regression analysis that there is a positive impact of

organic impression mobile facebook advertisement on purchase

intentions. The relationship between organic impression mobile

facebook advertisement and purchase intentions is statistically

significant as p-value is <0.05. It means that organic impression mobile

facebook advertisement is a good predictor of purchase intentions

which was further confirmed by the standard beta coefficient value.

xiii. When the researcher used country of origin between the independent

variable (organic impression mobile facebook advertisement) and

dependent (purchase intentions) variable, the impact was increased

significantly. It means that country of origin positively moderates the

167
 relationship between independent variable (organic impression mobile

facebook advertisement) and dependent (purchase intentions) variable.

xiv. When the researcher used perceived value as a moderator in the

relationship between the independent variable (organic impression

mobile facebook advertisement) and dependent variable (purchase

intentions), the impact was increased significantly. It means that

perceived value positively moderates the relationship between the

independent variable (organic impression mobile facebook

advertisement) and dependent variable (purchase intentions).

xv. The comparative impact of three types of mobile facebook

advertisements showed that homepage mobile facebook advertisement

had least impact on purchase intentions of the mobile facebook users,

social impression mobile facebook advertisement had more impact on

purchase intentions of the mobile facebook users than homepage mobile

facebook advertisement and organic impression mobile facebook

advertisement had the largest impact on purchase intentions of the

mobile facebook users.

xvi. The comparative moderation effects of country of origin and perceived

value showed that interaction (moderation) effect of perceived value is

greater than the moderating effect of country of origin between the

relationship of Mobile Facebook Homepage Impression Advertisement

and Purchase Intentions. The moderating moderation effects of country

168
 of origin and perceived value showed that interaction (moderation)

effect of perceived value is greater than the moderating effect of

country of origin between the relationship of Mobile Facebook Social

Impression Advertisement and Purchase Intentions. Likewise, the

moderating moderation effects of country of origin and perceived value

showed that interaction (moderation) effect of perceived value is greater

than the moderating effect of country of origin between the relationship

of Mobile Facebook Organic Impression Advertisement and Purchase

Intentions.

The researcher has accepted all the hypothesis developed on the basis of

critical literature review as follow:

Table 5.1: Decisions about Hypotheses

Sr. No. Hypotheses Status

1 Mobile Facebook Advertisements have positive Accepted

significant impact on purchase intentions.

2 Mobile homepage impression facebook Accepted

advertisement has positive significant impact on

purchase intentions.

3 Social impression mobile facebook advertisement Accepted

has positive significant impact on purchase

intentions.

169
4 Organic impression mobile facebook advertisement Accepted

has positive significant impact on purchase

intentions.

5 Country of origin of a product positively moderates Accepted

the relationship between mobile homepage

impression facebook advertisement and purchase

intentions.

6 Perceived value of the product origin positively Accepted

moderates the relationship between mobile

homepage impression facebook advertisement and

purchase intentions.

7 Country of origin of a product positively moderates Accepted

the relationship between mobile facebook social

impression advertisement and purchase intentions.

8 Perceived value of the product origin positively Accepted

moderates the relationship between social

impression mobile facebook advertisement and

purchase intentions.

9 Country of origin of a product positively moderates Accepted

the relationship between mobile facebook organic

impression advertisement and purchase intentions.

10 Perceived value of the product origin positively Accepted

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 moderates the relationship between organic

impression mobile facebook advertisement and

purchase intentions.

The finding from the inferential statistics analysis which found a positive

collective impact of three types of mobile facebook advertisements on purchase

intentions matches to the findings of Hutter et al., (2013) and Dehghani & Tumer

(2015). However, difference is that they used desktop and the researcher used mobile

version of facebook advertisements. The researcher found a positive impact of

homepage impression mobile facebook advertisement, social impression mobile

facebook advertisement and organic impression mobile facebook advertisement on

purchase intentions which confirms the findings of (Jung et al., 2016; Leong et al.,

2017; Qazi et al., 2017; Wang and Chang, 2013).

The finding from the inferential statistics analysis of moderated regression

show that country of origin positively moderates the relationship between homepage

impression mobile facebook advertisement, social impression mobile facebook

advertisement and organic impression mobile facebook advertisement and purchase

intentions. This needs to be further confirmed by the other studies in future. Likewise,

perceived value positively moderates the relationship between homepage impression

mobile facebook advertisement, social impression mobile facebook advertisement and

organic impression mobile facebook advertisement and purchase intentions.

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 As the researcher has taken three major categories of food, clothing and

electronics products in this study, he also has considered the generalizability issues

regarding the change in the purchase intentions as the products are changed in a study.

The results may vary when the products are changed. However, this might be slightly

happen for the products of food which is a perishable item. While the products relating

to the clothing and electronics remain unchanged with respect to the purchase

intentions and as a dependent variable of mobile facebook advertisement. Hence, there

would be no issue in this study regarding the generalizability of the results on the basis

of the argument that the purchase intentions may vary for various types of the products.

Hence, the findings of this current study are generalizable as per the results of the

statistical tests and analysis.

5. 2. CONCLUSIONS

On the basis of results obtained from inferential statistics in previous chapters

and discussion of findings in this chapter, the researcher draws the following

conclusions:

i. Like impact of traditional advertisement, the facebook advertisement

and mobile facebook advertisements also contributes positively in

shaping purchase intentions of the potential customers. Hence, the

corporations need to advertise their products or services on all these

media being used for advertising.

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 ii. Facebook advertising is new and advanced technique which involves

low costs and higher coverage. Hence, the corporations can enhance the

purchase intentions of potential customers by advertising their products

or services on facebook.

iii. Mobile facebook advertising has become a creative advertisement

technique due to its low cost and higher coverage. Use of smart phones

around the world has been rising with a large frequency. Hence, the

corporations can enhance the purchase intentions of potential customers

by advertising their products or services on mobile version of facebook.

iv. Corporations can use three types of mobile facebook advertisements

which are homepage impression, social impression and organic

impression for enhancing purchase intentions. However, they can use a

positive aspect of country of origin of a product. They can utilize

domestic market effectively.

v. In spite utilizing positive aspect of country of origin of their products

to capture domestic market effectively, corporations can also utilize

positive aspect of perceived value. They can enhance purchase

intentions by creating value in the mind of the potential customers

regarding their products. They can utilize all three types of mobile

facebook advertisements which are homepage impression, social

impression and organic impression for enhancing purchase intentions

through moderating effect of perceived value.

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 vi. The comparative impact of three types of mobile facebook

advertisements showed that homepage mobile facebook advertisement

had least, social impression mobile facebook advertisement had more

and organic impression mobile facebook advertisement had the largest

impact on purchase intentions of the mobile facebook users. Hence, the

corporations ought to utilize organic impression mobile facebook

advertisement options.

vii. The comparative moderating effects of country of origin and perceived

value showed moderating effects of perceived value are greater than the

moderating effects of country of origin between the relationship of All

Three Types of Mobile Facebook Advertisements (homepage

impression, social impression, and organic impression) and Purchase

Intentions. Hence, the companies have to keep in mind the concern of

perceived value for the advertisement viewers in order to reap the

benefit of mobile facebook advertising.

5. 3. MAJOR CONTRIBUTIONS OF THE STUDY

This research has filled the academic literature gap of studying mobile version

of Facebook advertisements as a business advertising strategy and its effectiveness in

creating and enhancing purchase intentions of the potential consumers/customers.

Hence, this study has bridged this research gap in the marketing research. Furthermore,

this study has extended the knowledge of mobile facebook advertising in terms of

three (03) distinct types of mobile version of Facebook advertisements which are

174
social impression advertisements; homepage advertisements; and organic impression

advertisements.

A second contribution of this study is that it has studied perceived value of the

advertised products through mobile facebook advertising as an important moderating

variable which could enhance or decrease impact of mobile facebook advertising

(social impression mobile version of Facebook advertisements; homepage mobile

version of Facebook advertisements; and organic impression mobile version of

Facebook advertisements) on the purchase intentions of the advertisement viewers.

This study has contributed to the literature by its finding that when there is a positive

perceived value of product presented in the mobile version of facebook advertisement,

the purchase intentions of the advertisement viewers are enhanced significantly. So

marketing research can use these findings in building new knowledge in the field of

contemporary advertising in the current modern era of technological advancement and

globalization.

A third major contribution of this study is that it has studied country of origin

of the advertised products through mobile facebook advertising as an important

moderating variable which could enhance or decrease impact of mobile facebook

advertising (social impression mobile version of Facebook advertisements; homepage

mobile version of Facebook advertisements; and organic impression mobile version of

Facebook advertisements) on the purchase intentions of the advertisement viewers.

This study found that if the advertised products are domestic, the purchase intentions

175
of the advertisement viewers are enhanced significantly. This result has contributed to

the literature by creating new knowledge in the field of contemporary advertising in

the current modern, technologically advanced, globalized business world.

5. 4. THEORETICAL IMPLICATIONS

The current study has added ample knowledge to existing literature in the field

of consumer research, purchase intentions, advertisement, brand origin and perceived

value. This study has highlighted that Facebook users on mobiles have been growing

with an accelerated speed. The mobile version of Facebook differs from desktop

version in terms of time available to sit, read, and write long replies; type of messenger

used for communication; difference in the homepage and newsfeed; and frequency and

size of advertisements. So, the current study has used mobile version of Facebook as

an important advertisement media and found it very useful in creating and enhancing

purchase intentions of the advertisement viewers. This study has fully comprehended

the impact of mobile version of Facebook advertisements (social impression

advertisements; homepage advertisements; and organic impression advertisements) on

purchase intentions of the advertisement viewers. Besides these, this study has used

country of origin of advertised products as an important moderating variable for

enhancing purchase intentions of the advertisement viewers. Likewise, this study has

also used perceived value of the product as moderating variable and found that it also

176
enhances the purchase intentions of the mobile facebook advertisement viewers. This

situation leads the future researchers to use these theoretical implications of this study

and create knowledge.

5. 5. MANAGERIAL IMPLICATIONS

This study has brought into the discussion various managerial implications.

The details of those managerial implications are given as under:

5.5.1. Managerial Implications for Corporations

This study recommends the corporations to utilize mobile facebook

advertisement technique because this type of advertisement brings lower costs and has

high coverage. On the basis of the findings, the researcher recommends corporations to

utilize all three types of mobile facebook advertisements which are homepage

impression, social impression and organic impression for enhancing purchase

intentions. However, this impact can be enhanced if the corporations use

ethnocentricity (country of origin) in their favour in the domestic market. So, the

corporations should effectively utilize ethnocentricity (country of origin) conditions in

their favour to increase their sales volume. Besides this, the corporations have to create

perceived value in the minds of potential customers if they want to increase their sales

volume. Because, they can enhance purchase intentions of the potential customers

regarding their products by incorporating perceived value in the advertisement on

177
mobile version of facebook and ultimately convert these purchase intentions into

consequent real purchase by the advertisement viewers.

5.5.2. Managerial Implications for Marketers

The current study has managerial implications for the marketing

firms/corporation or the marketers. The marketers and marketing firms know the role

of advertising in framing purchase intentions of the potential users and instigating real

purchase and ultimate sales. On the basis of the results of this study, the advertising

agencies can utilize facebook media for their marketing and advertising campaigns. It

is a fact that selecting advertising media is very important decision for any business

because the media will result in the effectiveness of an advertisement. The media also

define the cost and reach of the message of advertisement. Furthermore, the business

organizations try to find a cheap media which can also have a wide reach to the most

of the target people. Hence, the marketers can convince them and take up the

advertising campaigns by mentioning the social media website of Facebook which can

fulfill both the desired qualities of low cost of advertisement and wide reach to the

viewers. This study has guided them in understanding the impact of mobile version of

facebook advertisement in three distinct types of advertisements such as social

impression advertisements; homepage advertisements; and organic impression

advertisements and their impact on purchase intentions of the advertisement viewers.

By using these findings, they can develop/create advertisements which can bring better

results with low investments in advertisement. They can develop an advertisement

strategy of using these three types simultaneously for reaping better results. They also

178
have to keep in mind the moderating role of brand origin and perceived value in

framing consumers purchase intentions while developing advertisement proposals and

ultimate advertisement campaigns for the corporations.

5.5.3. Managerial Implications for Facebook Incorporation

The current study has managerial implications for Facebook Corporation which

is an American FOR-PROFIT CORPORATION and an online social media and social

networking service based in Menlo Park, California. Facebook can utilize the findings

of this study and enrich its three distinct types of advertisements and generate revenues

from such advertisements. As the world is going to use smartphone technology,

Facebook has to consider it as a great opportunity and use it in their favour. Facebook

can charge more for the type of an advertising which has more impact on purchase

intentions of the advertisement viewers and charge lesser for the other types. It can

utilize all mechanisms being used by the marketers and the corporations to advertise

their products and can consequently generate revenues.

5. 6. LIMITATIONS AND FUTURE RESEARCH

In present study, the researcher has various limitations which include time

duration, number of variables, finances needed to accomplish the study, geography,

availability of the respondents, scales’ availability. After considering these constraints,

the researcher has delimited his study. The researcher used Pakistani mobile Facebook

users in this study. Due to the time and resources limitations, the researcher utilized

four (04) big cities of Pakistan. The study included university students of public and

179
private sectors from Karachi, Lahore, Rawalpindi and Islamabad. As far as the

variables are concerned, these variables are enough to be studied within time and

financial constraints.

This research study has some academic limitations which can be utilized by the

future studies as future research direction. Firstly, the researcher has used university

students in this study as population. The future studies may use sample other than

university students in this regard. Secondly, the researcher has used country of origin

and perceived value as moderating variables in the framework. Other studies may use

some other related variable such as price, distribution channel and discounts as

moderators. Future studies may also use perceived value as mediating variable in the

current framework to explore further relationships.

5. 7. SUMMARY OF CHAPTER

This chapter discussed the major finding of the current study. The study found

a positive collective and individual impact of all three types of mobile facebook

advertisements (homepage impression, social impression, and organic impression) on

purchase intentions. However, homepage mobile facebook advertisement had least

impact on purchase intentions of the mobile facebook users, social impression mobile

facebook advertisement had more impact on purchase intentions of the mobile

facebook users than homepage mobile facebook advertisement and organic impression

mobile facebook advertisement had the largest impact on purchase intentions of the

mobile facebook users. The study also found country of origin and perceived value as

180
significant moderators between mobile facebook advertisements (homepage

impression, social impression, and organic impression) and purchase intentions.

However, moderation effects of perceived value were more than the interaction

(moderation) effect of country of origin between the relationship of Mobile Facebook

(Homepage Impression Advertisement, Mobile Facebook Social Impression

Advertisement and Mobile Facebook Organic Impression Advertisement) and

Purchase Intentions.

The study concluded mobile facebook advertisement as a creative source which

might be utilized by the companies. The study also recommended the corporations to

utilize mobile facebook advertisement technique for being lower cost and with high

coverage. However, this impact can be enhanced if the corporations use

ethnocentricity (country of origin) in their favour in the domestic market and utilize

positive aspect of perceived value. They can enhance purchase intentions by creating

value in the mind of the potential customers regarding their products. The study also

has discussed important managerial implications for the marketers and marketing firms

and Facebook incorporations. This chapter also discussed its limitations and

recommended important areas for future research.

181
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