Article

Vision
23(1) 56–69, 2019
Empirical Study on Perceived Value and © 2019 MDI
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Attitude of Millennials Towards Social in.sagepub.com/journals-permissions-india
DOI: 10.1177/0972262918821248

Media Advertising: A Structural Equation journals.sagepub.com/home/vis

Modelling Approach

Taanika Arora1
Bhawna Agarwal1

Abstract
The purpose of the article is to provide a comprehensive advertising model, which examines the impact of the identified predictors
such as entertainment, informativeness, irritation, credibility, incentives and personalization on social media advertising value (SMAV)
and further see the impact of SMAV on the attitudes of millennials towards social media advertising (ATSMA). A quantitative and
deductive approach of research was followed, where data were collected using a self-administered questionnaire from 478 Indian
social media users. The model developed was validated using exploratory factor analysis and confirmatory factor analysis followed
by structural equation modelling to test the relationships between the identified predictors and SMAV. The results confirm the
relationship between identified predictors and SMAV. Also, positive relationship has been found out between SMAV and ATSMA.
Further, in the research article, there is a detailed discussion on results, implications, limitations and directions for future work.

Key Words
Advertising Model, Social Media Advertising Value, Millennials, Structural Equation Modelling (SEM), Attitudes Towards Social Media
Advertising

Introduction
In the last decade, there has been an expeditious rise of
Internet and information and communication technologies,
which has resulted in the massive spread and usage of
social media sites (El-Haddadeh, Weerakkody, & Peng,
2012). ‘Social media is a hybrid element of the promotion
mix because in a traditional sense it enables companies to
talk to their customers, while in a non-traditional sense it
enables customers to talk directly to one another’ (Mangold
& Faulds, 2009). These sites have enabled the users to
create profiles and also have given them the opportunity of
surfing the friends list (Boyd & Ellison, 2007; Neti, 2011).
There has been a transitional shift among the Internet users
as it has been found that they spend more than four and a half
hours in a week on social media sites than they spend their
time using e-mail (Anderson, Brusa, Price, & Sims, 2011).
So, if the people are using these sites extensively, by express-
ing themselves and seeking opinions of others on every
sphere of lives, these social media sites are bound to impact
their buying decisions as well (Saxena & Khanna, 2013).
These sites play an important role by providing the compa-
nies a huge platform for advertisements that entice millions
of users who are multilinguistic from different countries and
also from different demographics (Rizavi, Ali, & Rizavi,
2011). According to the report of Global Web Index, ‘As
users become more passive over time and increasingly turn
to people in the public eye or well-known organisations for
interesting content, social media will increasingly become a
broadcast channel’ (Bosomworth, 2012).
Need of the Study
Seeing the influential impact of social media on people’s
lives, companies have now turned to more cost-effective
advertising avenues using the Internet like social network-
ing sites, blogs, email marketing, websites advertisements
and many more (Saxena & Khanna, 2013). In response to

1 Amity College of Commerce and Finance, Amity University, Noida, Uttar Pradesh (AUUP), India.

Corresponding author:
Taanika Arora, A-35 Ashok Vihar, Phase 3, Delhi 110052, India.
E-mail: taanika.68@gmail.com
Arora and Agarwal 57
which many business firms have shifted their advertise-
ment budget from traditional platforms to the social media
platforms (Lee & Hong, 2016). It has allowed companies
to have one-to-one interaction with their customers
directly and timely in a reasonable budget (Kaplan &
Haenlein, 2010). According to a report released by
PricewaterhouseCoopers Private Limited in 2011, there
was a growth in the size of Internet advertising industry by
28.3 per cent. The report also stated that the usage of social
networking sites has risen to 43 per cent in 2010 from
2009, with a huge growth (54%) in advertising on these
sites (PricewaterhouseCoopers Private Limited, 2011).
So, seeing the enormous funds invested in advertising
budgets especially in developing countries like India, it
becomes imperative to see what factors contribute in
generating advertising value and its further influence on
consumers attitudes.
Various studies have been conducted on measuring
advertising value and its impact on attitudes towards
different forms of advertising like traditional or modern
forms, but the topic of social media advertising is still at its
inception and also ‘an ever-evolving area’ (Zhang & Mao,
2016). Another reason for choosing this topic of research
was because very few studies have been conducted by
undertaking a particular model for testing the hypothesis
(Knoll, 2015). Finally, this research also investigates the
impact of those antecedents like incentives and personali-
zation, which have a huge relevance with respect to social
media advertising, but still a very little work has been done
to draw upon implications from it. Thus, on the basis of
these discussions, future studies need to be conducted
(Bolton et al., 2013) especially when the social media is
widely used across numerous business activities (Odoom
Anning-Dorson, & Acheampong, 2017). So this study aims
to minimize these gaps by making an attempt to and gain
insights upon social media advertising by working on the
‘Advertising Value Model proposed by Ducoffe (1996)’ as
a specific conceptual model and identify the Indian con-
sumers perceived social media advertising value (SMAV)
and understanding the attitudes of Indian consumers
towards social media advertising. In the proposed study,
we have chosen millennials as our sample group in order to
carry out the research. Millennials, also known as the
Generation Y, are the offspring of the Baby Boomers
(Berndt, 2007; Dotson & Hyatt, 2005). By using the defini-
tion given by Bolton et al. (2013), we have defined the age
of millennials as the people born between the 18-35years
of age. Age puts a significant amount of influence on a per-
son’s attitude and purchase decision (Beatty & Smith, 1987;
Klippel & Sweeny, 1974; Pandey, Sahu, & Dash, 2018).
There is greater unwillingness to adopt new technologies
as the people grow old (Gilly & Ziethaml, 1985; Phillips &
Sternthal, 1977). Millennials have been chosen as the sample
group because they are the most willing people to adopt new
technologies (Prensky, 2001).
The article has been organized as follows. First, we
have given a theoretical background of the constructs such
as entertainment, informativeness, irritation, credibility,
incentives, personalization, advertising value and attitudes
towards advertising, which have been used to test the
proposed research model. In the next section, the research
methodology has been explained which deals with scale
development, sample and data collection. Next, the data
have been analysed by performing various validity and
reliability measures. Then, structural equation modelling
(SEM) has been performed using AMOS to test the pro-
posed research model. Thereafter, we have presented the
results and implications. Finally, limitations and directions
for future research have been discussed.
Theoretical Background and
Hypothesis Formulation
Advertising Value
To evaluate the effectiveness of advertisements, the concept
of advertisement value has been used. Ducoffe (1995)
defined advertising value as the ‘utility or worth of the
advertisement’. It ‘may serve as an index of customer
satisfaction with the communication products of organi-
zation’. It was also defined as ‘a subjective evaluation of
the relative worth or utility of advertising to consumers’
(Ducoffe, 1995). It revealed consumer satisfaction with the
advertised product (Haghirian, Madlberger, & Inoue, 2008).
The perceived value of advertising helps forming positive
opinions about different characteristics of advertisements.
Advertising value model has been one of the most effective
and widely used theories for understanding and determining
consumer attitudes and perceptions towards advertising
(Murillo, Merino, & Núñez, 2016). For better understand-
ing of the advertising value model, Table 1 summarizes the
past research and work done in this area.
This study apart from focusing the cognitive and affective
factors of advertisements, economic factors (incentives)
have also been given due intention which can positively
influence the consumer attitude. As previous advertising
studies show, incentives are important predictor of custo-
mers’ reactions (Varnali, Yilmaz, & Toker, 2012). Another
major predictor of consumer attitude towards the advertise-
ments is personalization, which has been considered as an
important attribute of advertisements for determining
consumers attitude by various studies conducted by DeZoysa
(2002), Rao and Minakakis (2003), Robins (2003), Tsang,
Ho, and Liang (2004), Xu (2006), Xu, Liao, and Li (2008).
Informativeness
Ducoffe (1996) has defined advertising informativeness
refers to the ability of advertising to inform consumers of
alternative product information, which can create a balance
between consumers’ needs and producers’ offerings, thus ena-
bling a more efficient marketplace (Pollay & Mittal, 1993).
Advertising’s capacity to supply functional information
may be the prime rationale of consumers’ acceptance
Table 1.  Summary of the Past Studies with the Application of Advertising Value Model

Type of
Authors Variables Involved Sample Size Implications Advertisement
Ducoffe (1996) Information, entertainment and 477 US consumers The role of informativeness, entertainment and irritation act as important Web advertising
irritation predictors of the web advertising value
Eighmey and McCord Information, entertainment, personal 31 US adult The study revealed along with the previous antecedents information, World Wide web
(1998) involvement, credibility, clarity of consumers entertainment personal involvement and continuing relationship play an
purpose and purchase interest important role in shaping consumer responses towards the ads.
Brackett and Carr Entertainment, informativeness, 421 US college This study aimed to find out the attitudinal difference of web advertising with Web advertising
(2001) irritation, credibility, demographic students other media by adding credibility as another predictor and found out that
variables, advertising value and the web advertising was believed to be informative and entertaining, but the
attitude toward advertising irritation factor reduced the advertising value.
Wolin and Informative, deceptive, Enjoyable, 420 US consumers It was found out that Males have a more positive attitude towards web Web advertising
Korgaonkar (2003) offensive and useful advertising than tradition form of advertising, whereas females reported web
advertising to be annoying. Moreover, males were found to be do more online
shopping than females.
Haghirian, Entertainment, informativeness, 815 Austrian The study revealed that in Austria advertising value and advertising message Mobile advertising
Madlberger, and irritation and credibility consumers content have a significant impact on mobile advertising attitude
Tanuskova (2005)
Tsang et al. (2004) Entertainment, informativeness, 380 Taiwan The study found out entertainment to be the major predictor of advertising Mobile advertising
irritation, credibility, permission, consumers value, but generally the result reported negative attitude towards mobile
attitudes, incentives, intention and advertising, unless the advertized messages were sent with prior permission and
behaviour had incentives attached with it.
Xu, Oh, and Teo Entertainment, informativeness, Laboratory The study used a structural model approach to test the impact of Location-based
(2009) irritation, advertising value, attitude experiment consisted entertainment, informativeness and irritation on consumer perceptions. advertising
towards advertising and purchase of 82 undergraduates Results show that purchase intention is positively impacted by multimedia LBA
intention messages.
Hassan et al. (2013) Infotainment, credibility, irritation, 306 Pakistan The study reported that the infotainment, irritation and credibility have a Social networking
personalized product content, University students positive association with the perceived value of an ad. Whereas, personalized sites advertisements
personalized price content and contents had a direct relationship with the attitude towards the social
personalized promotion content networking advertisement. Perceived value strongly contributed towards the
attitude formation.
Dao et al. (2014) Entertainment, informativeness, 295 Vietnam The study reported informativeness, entertainment and credibility to be Social media
credibility, advertising value, attitude undergraduate significant predictors of value of social media advertising, thereby influencing advertising
towards advertising, social networking students online purchase intention. Moreover, the effects of advertising value of content (Facebook and
sites and content community webSites community websites are stronger than social networking on the basis of YouTube)
informativeness and entertainment
Kim and Han (2014) Incentives, entertainment, irritation 256 South Korean The study reported the antecedents of advertising value have appositive Smartphone
credibility, informativeness, University students relationship with personalization. Also, it explored that flow theory is positively advertising
personalization, advertising value, flow affected by incentives, entertainment and credibility. finally that advertising value
experience and purchase intention and flow experience theory positively contributes to the purchase intention
Murillo et al. (2016) Informativeness, entertainment, 630 Mexican The study reported that social media advertisements are more acceptable Social media
irritation, credibility, advertising value, millennials to them, with information and entertainment being the highest predictor, advertising (Twitter)
attitude towards advertising and credibility had gender differences and irritation was not found to be a significant
demographic variables predictor of advertising value.
Hamouda (2018) Entertainment, informativeness, 352 Tunisian The study focused on tourism advertising on Facebook and reported that apart Social media
credibility, advertising value, attitude Facebook users from entertainment, credibility also impacts the advertising value. Moreover, advertising
towards advertising, corporate corporate reputation also plays an important role in shaping the attitudes (Facebook)
reputation andconsumer responses towards the advertisement
Source: The authors.
Arora and Agarwal 59
(Bauer & Greyser, 1968). Moreover, Schlosser, Shavitt,
and Kanfer (1999) confirmed that there is a positive rela-
tion between consumers’ attitude towards Internet advertis-
ing is informative characteristics. Thus, information plays
as a very important incentive in marketing because recipients
are inclined towards advertisements that offer incentives
(Andrews, 1989; Varshney, 2003). Searching out for infor-
mation is one of the important reasons for the usage of
social media (Muntinga, Moorman, & Smit, 2011). Social
media advertisement can provide with soughted product-
related information and grab the attention of consumers
(Van-Tien Dao, Nhat Hanh Le, Ming-Sung Cheng, & Chao
Chen, 2014). The perception of the relevance of SMA
information will then create value for consumers (Zeng,
Huang, & Dou, 2009). Using the abovementioned argu-
ments and considering the evidence from previous studies
and literature on social media advertisements, the current
research, on the basis of the conceptual model in order to
test the relationship, proposes the following hypothesis:
HI: There is a significant impact of informativeness of
advertisement on consumers’ perceived value of
social media advertising.
Entertainment
Enjoyable advertisement grabs the attention of a consumers
exposed to the ad (Ducoffe, 1995; Haghirian, Madlberger,
& Tanuskova, 2005; Liu, Sinkovics, Pezderka, & Haghirian,
2012; Shimp, 1981). In a digital environment, advertise-
ment has the capability of satisfying the hedonic needs of
consumer by offering pleasant entertainment (Edwards Li,
Lee, 2002). In a Web 2.0-based digital social media envi-
ronment, ‘the entertainment value lies in the ability to fulfil
audience needs for emotional release, diversion and enjoy-
ment’ (Muntinga et al., 2011) by permitting the users to
exchange different types of experiences, information,
video clips and music and much more with their connec-
tions on the social media sites (Kim, Sohn, & Choi, 2011).
This was also confirmed in Ducoffe’s mall-intercept study,
which reported ‘a substantial, significant, and positive
correlation significant, and positive correlation of 0.48
between multiple-item measures of entertainment and
advertising value’ (Ducoffe, 1996). Considering the evi-
dence from previous studies and literature on social media
advertisements, the current research, on the basis of the
conceptual model in order to test the relationship, proposes
the following hypothesis:
H2: There is a significant impact of entertainment factor
of advertisement on consumers’ perceived value of
social media advertising.
Irritation
The effectiveness of advertisement is decreased with
irritation in an advertisement (Aaker & Bruzzone, 1985;
Ducoffe, 1995; Liu et al., 2012). Critics argue that advertis-
ing diverts attention from notable social targets (Galbraith,
1956), dampens human experiences (Boorstin, Wright, &
Mertes, 1974) and exploits human anxiety and fondly held
desires (Schudson, 1984). Greyser (1973) reported, in their
research, that the clutter as well as content of advertising
can irritate the consumers. In online advertising, loss of
privacy can also cause contribute to irritation content of
advertising in case of online advertising (Taylor, Lewin,
& Strutton, 2011). Altuna and Konuk (2009), Luna Cortés
and Royo Vela (2013), Okazaki (2004), Rau, Liao, and Chen
(2013), Tsang et al. (2004), Ducofee and Carlo (2000), Ünal,
Ercis, and Keser (2011), Wong (2010) reported, in their
studies, that irritation and intrusiveness negatively affect
the attitudes of the consumers. Using the aforementioned
arguments, we propose the following hypothesis,
H3: There is a significant negative impact of Advertising
Irritation on consumers’ perceived value of social
media advertising.
Credibility
MacKenzie and Lutz (1989) defined advertisement credi-
bility as ‘the extent to which the consumers perceive the
claims about the brand/product advertised in the advertise-
ment to be truthful and believable’. Advertising credibility
can positively impact the attitude of consumers and their
behaviour (Jin & Villegas, 2007). When it comes to social
media advertisements, Chu and Kim (2011) reported that
the content on social media advertisements is considered
to be reliable and trustworthy due to the display of com-
ments from existing social connections. As a consequence,
social media advertisements are generally considered as a
credible source of product information (also Mangold &
Faulds, 2009). Based on the above literature and scholarly
studies, the current research study purposes the following
hypothesis.
H4: There is a significant positive impact of advertising
credibility on consumers’ perceived value of social
media advertising.
Incentives
‘Advertisements with an incentive provide specific finan-
cial rewards to individuals who agree to receive an adver-
tisement’ (Tsang et al., 2004). ‘Incentives encompasses
many monetary benefits like discounts, gifts and coupons,
and non-monetary benefits including intrinsic value such
as level-ups, status awards, and right for priority service’
(Varnali et al., 2012). Some consumers have interest in
obtaining monetary benefits from marketing programmes
(Milne & Gordon, 1993). The consumers focus on those
messages which include some financial benefits or incen-
tives on the messages (Hoffman & Novak, 1996) and make
sure of every opportunity to get that benefit of the message
60
(Kim and Han, 2014). Previous literature proposes that
price discounts are extremely effective in inciting results,
like trial of a product and purchase decision (Shi, Cheung,
& Prendergast 2005). Customers are interested in tangible
benefits and give more attention to an advertising message
for financial advantage (Kim and Han, 2014). Therefore,
based on prior findings, the current research proposes the
following hypothesis:
H5: There is a significant positive impact of advertising
incentives on perceived value of social media
advertising.
Personalization
With so many advertisements, consumers are bombarded
with, and essential consumers are exposed to much suitable
advertisements, which they find useful and relevant. Yan,
Wang, and Wei. (2004) revealed in their study by particu-
larly focussing on SMS personalized advertising and have
a chance that consumers are inclined towards these adver-
tisements. This result is dependent on the personalized
characteristics of the mobile device due to which individ-
ual has the capability of virtually accessing information
anytime and anywhere. Hence, the contents of advertise-
ments should be more personalized (Tsang et al., 2004).
Rao and Minakakis (2003) argued that reforming the mar-
keting techniques based on the prerequisites of the ‘know-
ledge of customer profiles, history, and their needs’. Robins
(2003) in his study proposed that mobile consumers find an
advertisement relevant for them if the advertising content
is tailored or customized according to their needs
H6: There is a significant positive impact of advertising
personalization on perceived value of social media
advertising.
Figure 1.  A Conceptual Model
Source: The authors.
Vision 23(1)
Attitude Towards Social Media Advertising
Fishbein and Ajzen (1975) defined attitude as ‘learned pre-
disposition of human beings’. Kotler and Armstrong (2008)
described attitudes as ‘an individual’s evaluation and feeling
toward something’. In terms of advertising, attitudes have
been defined as a ‘learned predisposition to respond in a
constantly favourable or unfavourable manner toward
advertising in general’ (MacKenzie & Lutz, 1989).
Generally, how a person evaluates an organization’s
advertising message depends on the attitude towards adver-
tising (Greyser & Bauer, 1966; Mehta & Purvis, 1995; Ha
& MacCann, 2008).
There are important implications behind studying the
impact of attitudes on the effectiveness of advertising as
marketers can selectively work on those attitudes which
shape or influence attitudes towards a particular advertis-
ing message, which then affects attitudes towards the brand
advertisement (Mehta, 2000). A variety of models to
measure attitudes towards advertising have been generated
by these studies, thereby various scales have been used to
measure the attitudes; however, this study focuses primar-
ily on those antecedents which are in accordance with the
research objectives. Many studies have been drawn on
the Ducoffe (1996) model, for example, Haghirian et al.
(2005) have found out that by generating advertising value,
the attitudes of the consumers are positively impacted.
Thus, in order to check the positive relationship of adver-
tising value with social media advertising, the current
research proposes the following hypothesis:
H7: Perceived Value of SMAV positively impacts con-
sumers’ Attitude toward social media advertising.
After an extensive literature review, a conceptual
model (Figure 1) including the seven-research hypothesis
Arora and Agarwal 61

has been developed. The research model is on the premise Participants

that informativeness, entertainment, credibility, irritation,
incentives and personalization contributes towards gener-
ating advertising value, which in turn impacts the attitude
of consumers towards social media advertisements.
Based on the above conceptual model, the following are
the research objectives:
1. To examine the relationship between the identified
predictors and SMAV.
2. To examine the relationship between SMAV and
attitude towards social media advertisements.
Research Methodology
Scale Development
The measuring scales have been adapted from the previous
literature listed in Table 2.
For measuring these constructs, respondents were asked
to answer on a 5-point Likert scale which ranges, from 1 =
strongly disagree to 5 = strongly agree. The initial survey
has been refined through extensive discussion with the
experts and scholars from the area of marketing and
research. Also, a pilot test was conducted taking a sample
(n = 100). The participants of the pilot tests were asked to
provide with valuable suggestions and feedback, where
they felt the questionnaire was unclear.
Data Collection and Sample
For this study, the sample consists of graduates, post-
graduates, doctorate students and academicians of different
universities located in National Capital Region (NCR)
of India, representing the population of Generation Y,
respondents familiar with social media sites and having
an account in at least one of them were only considered for
the research study. Using non-probability convenience
sampling, the online questionnaires were distributed to
550 respondents through Google forums. The data were
collected during 3-month period from June 2018 to August
2018. Out of the total, 478 respondents completed the
structured survey, so the response rate was 86 per cent.
On the basis of frequency analysis, the sample consists
of 265 (56%) males and 213 (44%) females. A total of
68% of the respondents are from the age group of 18–23
years. More than half (53%) of the respondents were
pursuing their graduation degree. As in the case of pro-
fession, 68 per cent of the respondents were students
followed by servicemen and then some had their own
business. Further details of the participants are mentioned
in Table 3.
Data Analysis
For performing the data analysis, a two-step procedure
was carried out. At the first hand, an exploratory factor
analysis (EFA) through SPSS 21.0 was performed. At the
second step, in order to reinforce the results for validity
and reliability concerns, confirmatory factor analysis (CFA)
using the scales generated through EFA was performed.
Then for testing the hypothesis and interrelationships SEM,
AMOS 22.0 software is used.
Validity and Reliability
EFA of Dimensionality and Reliability
EFA was undertaken with 31 construct items of the ques-
tionnaire, in which Kaiser–Meyer–Olkin (KMO) test along
with Bartlett’s test of sphericity was run. A KMO value of
0.6 or above and a significant Bartlett’s test indicated that
data were acceptable for factor analysis (Pallant, 2010).
The results obtained for both these tests were satisfactory,
KMO = 0.915, p = 0.000 < 0.05, so the data were suitable
for factor analysis.
To the initial set of items, an EFA was carried out using
principal component analysis with Varimax rotation.
This procedure extracted eight factors with eigenvalues
above 1.0 and loadings above 0.5, and these eight factors
explained 69 per cent of the total variance.
Table 3 shows the internal consistency and reliability of
the constructs by listing out the Cronbach’s alpha which
ranges 0.742–0.898, which is satisfactory as it exceeds

Table 2.  Sources

Constructs Sources Number of Items

Informativeness Ducoffe (1996), Wang and Sun (2010) and Liu et al. (2012) 4
Credibility Liu et al. (2012) and Yang, Kim, and Yoo (2013) 4
Entertainment Ducoffe (1996), Wang and Sun (2010) and Yang et al. (2013) 3
Irritation Varnali et al. (2012) and Yang et al. (2013) 5
Incentives Ünal et al. (2011) 4
Personalization Xu et al. (2008), Ünal et al. (2011) and Kim and Han (2014) 4
Advertising value Ducoffe (1995) and Liu et al. (2012) 3
Attitudes towards social Ramaprasad and Thurwanger (2000), Ling, Piew, and Chai (2010) and Pollay and 4
media advertisements Mittal (1993)
Source: The authors.
62 Vision 23(1)

Table 3.  Survey Respondent Profile (n = 478)

Measure Item Frequency Percentage

Gender Male 265 56
Female 213 44
Age group 18–23 years 322 67.37
24–29 years 100 20.92
30–35 years 36 7.53
More than 35years 20 4.18
Educational level Undergraduates 200 41.84
Graduates 100 20.92
Postgraduates 120 25.20
PhD 58 12.14
Occupation Student 342 71.55
Service 105 21.97
Self employed 31 6.48
Usage of social media sites 1–3 hours 85 17.77
4–6 hours 88 18.41
7–9 hours 90 18.82
More than 10 hours 215 45
Preference of social media sites Facebook 145 30.33
Instagram 130 27.20
YouTube 125 26.15
LinkedIn 48 10.04
Twitter 30 6.28
Reasons for usage of social media sites Finding connections 151 31.50
Getting information on brands 120 25.20
Getting information on products/service. 105 21.97
Catching up on the latest news/gossip 102 21.33
Brand following on social media sites Yes 400 83.68
No 78 16.32
Bought a product after seeing it Yes 148 30.96
on social media No 228 47.70
Maybe 102 21.34
Frequency of reading or viewing an 1–4 per day 147 30.76
advertisement on social media sites More than 4 per day 115 24.06
1 per 3–4 days 120 25.10
1 per week 96 20.08
Source: The authors.

the minimum cut-off point of 0.6 (Hair, Black, Babin,
Anderson, & Tatham, 2006). Also, composite reliability
has been used as a further measure (Jöreskog, 1971;
Smith, 1974), using a cut-off value of 0.6 (Nunnally &
Bernstein, 1994). The mean score and standard deviation
of all items have been calculated and shown in Table 3.
Confirmatory Factor Analysis
At the second step, a CFA was run using AMOS 22 for
establishing convergent and discriminant validity. For the
analysis, maximum likelihood estimation method is used.
Convergent validity refers to the ‘principle that the indi-
cators for a given construct should be at least moderately
correlated among themselves’ (Blanco, Blasco, & Azorín,
2010). According to Steenkamp and Geyskens (2006), the
factor loadings of the confirmatory model should be statisti-
cally significant (level of 0.01) and more than 0.5 points.
Average variance extracted (AVE) of all the eight constructs
is above the minimum cut-off point of 0.5 confirming the
convergent validity (Hair et al., 2006; refer to Table 4).
Discriminatory validity implies that the indicators for
different constructs should not highly correlated such that
the lead one may conclude that they measure the same
thing (Blanco et al., 2010). For establishing discriminant
validity, the square root of the AVE (represented by the
diagonal items shown in Table 5) should be greater with the
correlations with other constructs (off diagonal items)
(Fornell & Larcker, 1981). Also, the assumptions of common
method bias and linearity were examined, and they were
not violated.
Structural Model and Hypothesis Testing
In the conceptual research model, the causal relationships
were tested with the help of AMOS and the goodness of fit,
and the significance of the path coefficients was estimated
Arora and Agarwal 63

and tested. On the whole, the data provide a good model fit,
which was verified by estimating some model fit test stati-
stics, that is, the absolute fit indexes were calculated such as
goodness-of-fit indices (GFI), the ratio of χ2/df and the root
mean square error of approximation (RMSEA). Also, some
incremental fit indices were also considered like the incre-
mental fit index (IFI), like the comparative fit index (CFI)
and the Tucker-Lewis index (TLI). In addition, the article
also shows the estimation of normed fit index (NFI) and
adjusted GFI. Table 6 shows the fit statistics of the research
model and the recommended values or the cut-off points.
As per the recommended criterion, the fit indices
provide a good model fit to the data, and model is appropri-
ate for hypothesis testing (Etezadi-Amoli & Farhoomand,
1996; Steiger & Lind, 1980; Seyal, Rahman, & Rahim, 2002).
In order to test the different model interrelationships
and for testing the hypothesis, three criterions have been
used such as the regression coefficients, their degree of
significance (p-value < 0.001) and critical ration (CR >
1.96). On the basis of this, the hypothesis has been supported
or rejected. The results of the hypothesis are shown in
Figure 2.
Results and Discussion
Based on the above-listed indicators, H1, H2, H3, H4, H5
and H7 were statistically supported. In this model, the total
explained variance in SMAV is 70 per cent and explained
variance in attitude towards social media advertising is
24 per cent. Table 7 summarizes the hypothesis results.
Theoretical and Managerial Implications
This research models confirms the relationships of infor-
mativeness, entertainment, irritation with SMAV, and
similarly in accordance with the previous study, there has

Table 4.  Statistics of Construct Items

Factor
Constructs Items Loadings CR AVE CA Mean SD
Information Info1 0.74 4.21 0.706
Info2 0.76 0.821 0.536 0.831 4.06 0.738
Info3 73 4.05 0.641
Info4 0.80 4.06 0.732
Entertainment Ent1 0.71 3.95 0.728
Ent2 0.88 0.759 0.52 0.742 4.01 0.715
Ent3 0.76 4.05 0.838
Credibility Cred1 0.72 3.83 0.827
Cred2 0.73 0.829 0.549 0.827 4.04 0.693
Cred3 76 4.11 0.717
Cred4 0.75 4.00 0.735
Irritation Irr1 0.85 3.35 1.026
Irr2 0.79 3.04 1.080
Irr3 0.78 0.898 0.639 0.898 3.55 0.993
Irr4 0.79 2.96 1.013
Irr5 0.77 2.97 1.175
Incentives Inc1 0.75 3.85 0.752
Inc2 0.81 0.842 0.573 0.839 3.90 0.753
Inc3 0.80 3.86 0.797
Inc4 0.76 3.98 0.744
Personalization Per1 0.72 3.77 0.896
Per2 0.84 0.848 0.685 0.845 3.87 0.846
Per3 0.70 4.04 0.773
Per4 0.80 3.80 0.784
Social media advertising SMV1 0.83 0.763 0.52 0.753 3.93 0.770
value SMV2 0.76 4.08 0.865
SMV3 0.71 3.91 0.924
Attitude towards social Att1 0.75 0.767 0.552 0.765 4.03 0.822
media advertising Att2 0.77 4.22 0.742
Att3 0.69 4.08 0.775
Att4 0.72 4.02 0.808
Source: The authors (using Amos and SPSS).
Notes: CR = Composite reliability, AVE = Average variance extracted, CA = Cronbach alpha, SD = Standard deviation.
64 Vision 23(1)

Table 5.  Discriminant Validity

Advertising
Irritation Information Personalization Value Credibility Entertainment Incentives Attitude
Irritation 0.799            
Information −0.341*** 0.732          
Personalization −0.366*** 0.346*** 0.828        
Advertising −0.217*** 0.619*** 0.320*** 0.721      
value
Credibility −0.562*** 0.717*** 0.403*** 0.678*** 0.741    
Entertainment −0.232*** 0.181** 0.333*** 0.229*** 0.205*** 0.721  
Incentives −0.754*** 0.614*** 0.377*** 0.409*** 0.718*** 0.250*** 0.757
Attitude −0.258*** 0.356*** 0.506*** 0.308*** 0.401*** 0.504*** 0.347*** 0.743
Source: The authors (using Amos 22.0).
Notes: The bold numbers on the diagonal are the square roots of the AVE.
     *Correlation is significant at p < 0.05 level (two-tailed).
     **Correlation is significant at p < 0.01 level (two-tailed).
     ***Correlation is significant at p < 0.001 (two-tailed).

Table 6.  Fit Indices for the Research Model

Fit Indices Research Model Recommended Criteria

|2/df 1.773 <3.0
GFI 0.906 >9.0
RMSEA 0.040 <0.08
TLI 0.948 >9.0
CFI 0.955 >9.0
NFI 0.902 >9.0
AGFI 0.885 >0.8
Source: The authors (using Amos 22.0).

Figure 2.  Structural Model Test Results

Source: The authors (using Amos 22.0).
Note: Significant at ***p < 0.001.
Arora and Agarwal 65
Table 7.  Summary of the Hypothesis Testing Results
Independent Dependent Standardized
Hypothesis Variable Variable Estimate
H1(+) Informativeness SMAV 0.273
H2(+) Entertainment SMAV 0.123
H3(–) Irritation SMAV −0.261
H4(+) Credibility SMAV 0.776
H5(+) Incentives SMAV 0.206
H6(+) Personalization SMAV 0.026
H7(+) SMAV ATSMA 0.494
Source: The authors (using Amos 22.0).
Note: SMAV = Social media advertising value, ATSMA = Attitude towards social media advertising.
been a significant positive relationship between perceived
value of social media advertising and attitude towards
social media advertising, therefore it reinforces the applic-
ability of Ducoffe model. Moreover, considering other impor-
tant antecedents of predicting advertising value, more vari-
ables and their relationships have been tested such as
credibility, personalization and incentives. Credibility
identified by Brackett and Carr (2001) in predicting adver-
tising value has found a significant factor in affecting
SMAV. Also, with related to these four variables, the results
are consistent with the previous studies which have been
done in various different contexts such as traditional adver-
tising, web advertising, SMS advertising and social media
advertising. In the case of web advertising, the results are
consistent with the previous studies conducted by Ducoffe
(1996), Eighmey and McCord (1998), Brackett and Carr
(2001) and Bevan-Dye (2013); for SMS advertising, similar
results have been found with the studies conducted by
Haghirian et al. (2005), Kim and Han (2014), Tsang et al.
(2004) and Sinkovics et al. (2012); for social media adver-
tising, the results are consistent with the studies conducted
by Dao et al. (2014), Hamouda (2018), Hassan, Fatima,
Akram, Abbas, and Hasnain (2013), Logan, Bright, and
Gangadharbatla (2012) and Murillo et al. (2016). Incentives
have also been found to be a significant predictor of adver-
tising value, which is similar to the results of previous
studies conducted by Kim and Han (2014), Martins, Costa,
Oliveira, Gonçalves, and Branco (2018). Also, from the
previous studies incentives been positively associated with
attitude towards campaign ads (Varnali et al., 2012), with
positive word of mouth and intention of clicking ads
(Standing, Benson, and Karjaluoto, 2005; Ünal et al., 2011;
Varnali et al., 2012) also with overall positive attitude
(Huq, Alam, Nekmahmud, Aktar, & Alam, 2015). However,
surprisingly, personalization has not been found as a signifi-
cant predictor of SMAV. According to this study, the sample
taken as the Generation Y does not feel that the social media
advertisements are tailored according to their needs, thereby
failing to generate advertising value. These results can also
be found in previous studies in the context of social net-
working sites where personalization has been found insig-
nificant for predicting advertising value (Hassan et al.,
2013) and smartphone advertising (Kim & Han, 2014).
Critical Value Hypothesis
SE (CR) P-value Decision
0.053 5.128 0.001 Supported
0.026 4.412 0.001 Supported
0.070 −3.749 0.001 Supported
0.050 15.622 0.001 Supported
0.034 4.838 0.001 Supported
0.027 0.977 0.328 Not supported
0.043 11.49 0.001 Supported
Also, there has been a significant relationship found
between advertising value attitude towards social media
advertisements, which has been supported by the previous
studies, firstly by Ducoffe (1995) then in the case of web
advertising by Ducoffe (1996), Brackett and Carr (2001)
also in the case of smartphone advertising by Haghirian et al.
(2005); Lee, Lee, and Yang (2017). In the social media
advertising sites, the result is consistent with the previous
studies conducted by Logan et al. (2012), Hassan et al.
(2013), Murillo et al. (2016), Hamouda (2018). So, our
study contributes to understand the six important anteced-
ents of social media advertisements for the Generation Y,
which will help the marketers and brand managers in
understanding the art of designing advertisements of social
media sites, in order to generate positive advertising value,
which will further favourably impact their attitudes. The
evidence suggests that the advertisements on social media
sites should be credible, informative, entertaining and
incentives attached to it. As advertisements are recognized
by consumers as being annoying and intrusive which
negatively affects the value of advertisements, so in order
to minimize the negative impact, marketers can address
this issue by giving them an option to decide whether they
want to receive advertisements or not, in order to reduce
the irritation and intrusiveness effect.
Limitations and Future Directions
Our study is subject to certain limitations. First, this study
is only on Indian Millennials, for generalization of the
results, and the research should be extended to other deve-
loping countries. Second, this study has considered only
a limited number of predictors of advertising value, and
future study can be extended by considering more vari-
ables such as personal factors, user-generated content, trust
as well as interactivity and could be explored and consid-
ered for building a more comprehensive advertising model.
Third, our study can be generalized for predicting the
attitudes of overall products, and social media future
research can be investigated for considering a specific
product category or a particular social media site such as
Facebook, twitter, YouTube, Instagram, and so on.
66
Declaration of Conflicting Interests
The authors declared no potential conflicts of interest with respect
to the research, authorship and/or publication of this article.
Funding
The authors received no financial support for the research, author-
ship and/or publication of this article.
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About the Authors
Taanika Arora (taanika.68@gmail.com) is a Research
Scholar in the Amity College of Commerce and Finance,
Amity University, Uttar Pradesh (AUUP), Noida, India.
She is pursuing her Doctoral degree in commerce, with the
research area on ‘social media advertising’. Her current
research interests include, social media advertising,
internet advertising and consumer buying behaviour. Her
research work has been published in prestigious journals
like Indian Journal of Marketing, in Edited books and
Conference proceedings. Also, she has presented various
research articles in national and international conferences.
Arora and Agarwal 69
Bhawna Agarwal (bagarwal@amity.edu) is an Associate
Professor in Amity University Uttar Pradesh, Noida
campus. She has 16+ years of experience of teaching
in reputed colleges/universities. She has published 24
research papers in high-indexed national/international
journals, 3 chapters in edited book and 3 articles in in-
house magazine. She has also contributed as a co-author in
eight international conferences and presented 11 papers
in national /international conferences (including those
that held in Harvard University, Suffolk University, IIM
Ahmedabad, etc.). She is also a full professional member of
International Association of Educators and Researchers and
a Book Reviewer of South Asian Journal of Management
(SAJM) and a paper reviewer of International Journal
of Business Analytics (IJBAN). She was co-chair in the
International Conference on Emerging Trends in Research
in Entrepreneurship, Accounting, Business & Management
at Amity College of Commerce & Finance, Amity University,
Noida. She also received an award ‘Excellence in Teaching’
by Confederation of Education Excellence in 2014.