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SOCIAL MEDIA ENGAGEMENT IMPACT

ON PURCHASE INTENTION: A CASE


STUDY AMONG GENERATION Y IN SABAH

BY:
ERWIN LAHO
ME1212021T

INTRODUCTION

Social media becoming very popular and Malaysia


was ranks no sixth worldwide in terms of
information production via Twitter and at the
same time Facebook users have increased by
more than 12 million over the last five years
(Oxford Internet Institute, 2013).
46 percent of Malaysian social media users
choose a mobile phone for their social media
interactions, which makes Malaysia one of the top
five users in the Asia Pacific region (Kumar, 2012).

INTRODUCTION (contd)

The focus of the study is based on generation Y in


Malaysia because this group tended to be more
exuberant in their spending habits, adding that
the proportion of the working age population has
continued to increase in recent years with the new
pool of young workers entering the labour market
(Daljit, 2013).
A quantitative research will be undertaken in
which data will be collected through a survey of
young generation age between 18 to 32 years old.

PROBLEM STATEMENT

Nowadays, social media widely accepted around the


world and represent a larger community and
considered as important elements in marketing tools
as the function and demand is increasing which
fundamentally brought significant changes in today
business.
Such technology has led to a dimension where
consumers are more connected more than before
through the connections to others.
With the availability of this kind of platforms to the
people, eventually create power and connectedness
among consumers which can reduce or enhance firms
brand name.

PROBLEM STATEMENT (contd)

The main issue of this study is mainly involves around on


how companies can utilize those power and
connectedness to their side and can social media
campaigns have a more direct effect on purchase
behaviour. There has been recent interest concerning how
to incorporate this power and connectedness into
evaluating a customer (Mathur, 2012).
Not only that, it seems to be a lack of understanding and
knowledge on consumer purchase intention toward social
media even though the internet and social media
penetration is high in Malaysia and at the same time there
is limited research about the consumer engagement
toward social media and factors that influence their
purchase intention in Malaysia.

RESEARCH QUESTION

1. What is the effect of social media consumption


on
generation Y purchase intention?
2. What is the effect of social media experience
on
generation Y purchase intention?
3. What is the mediating factor between social
media engagement and purchase intention?

RESEARCH OBJECTIVES

1. To study the effect of social media


consumption on generation Y purchase
intention.
2. To study the effect of social media experience
on generation Y purchase intention.
3. To study the moderating effect of brand
engagement between social media consumption
and purchase intention.
4. To study the moderating effect of brand
engagement between social media experience
and purchase intention.

LITERATURE REVIEW
Uses & Gratification (U & G) Theory
Rubin (2009) also elaborated the three
principles of uses and gratification theory;
1) to explain how people use media to
gratify their needs; 2) to understand
motives for media behaviour; and 3) to
identify functions or consequences that flow
from needs, motives and behaviour.

LITERATURE REVIEW (contd)

Purchase intention
Pavlou

and Fygenson (2006) further explained


purchase intention refers to the consumer desire for
a particular product or services, but the specific
product or service are not decide yet.
Yaobin et al (2010) suggest a consumer who has no
idea or information about specific model or brand
will take the relevant information from previous or
current customers such as their usage and reviews.
In the process of searching information, the
consumer gradually refines their specification and
eventually chooses the specific model or brand.

LITERATURE REVIEW (contd)

Social media consumption


Roberta et al (2012) stated understanding the
usage of social media is important because it is
became an important channel to interact with
current or potential customer and it is
commonly accepted that social media is one of
the important sales tools. Mathur et al (2012)
explained the use of social media is valuable
and is likely to become part of company
marketing strategy and has become a topic
interest for many companies around the world.

LITERATURE REVIEW (contd)

Social media experience


Social experience can create impacts

toward individual through connecting with


family, friends, peer, and mass media which
one of them has the power to influence
people thoughts, feelings and activities
(Schmitt, 2003).
Social experience can be categorized into
two; normative social influence and
informational social influence.

LITERATURE REVIEW (contd)

Normative Social Influence


Matthew (2011) defined normative social
influence as opinion of others influence peoples
purchase intention which involves social
pressure from family, peers, friends and others
to align with their expectations. To receive
reward and avoid punishment, people tend to
conforms to the others important expectations
means that compliance has occur. To avoid
called old fashioned, some people tend and
feel that they need to adopting certain
technologies to meet their requirement.

LITERATURE REVIEW (contd)

Informational Social Influence


Matthew (2011) defined informational social
influence as accepting information from another
person without question and accepting others
information to cope with some aspects of the
environment and to monitor problem solving.
The information from social groups only serves
as a supplementary function as the potential
user may or may not follow what was
suggested. Thus the information tries to change
people attitudes and positive informational
social influence eventually will impact people
adopting decisions.

LITERATURE REVIEW (contd)

Brand engagement
Just by liking the brand in Facebook for
example means people become the community
of that brand and even though their intention is
difference from person to person, but most of
them try to get information share knowledge,
and establish social relationship. (Mathwick et
al, 2008).
Engage in brands social media activities can be
achieve just by conversation through social
media.

LITERATURE REVIEW (contd)

Relationship between social media engagement


and purchase intention
Consumers tend to think that they are far more
likely to get an accurate review from a large
number of other consumers, than by following
on the recommendation of a paid reviewer from
a typical traditional media (Melcoulton, 2011)
Consumers increasingly base their purchasing
decisions on opinions provided by other users
through user generated content such as product
review, product rating (Wirt et al, 2011).

LITERATURE REVIEW (contd)

Relationship between brand engagement and


purchase intention
Bickart and Schindler (2001) mentioned
consumer purchase intention toward the brand
may influence by social media engagement. As
a result, brand engagement in social media will
have a positive effect on actual buying behavior
and especially on purchase intention
(Anastasia, 2011).

RESEARCH FRAMEWORK

RESEARCH HYPOTHESES

H1: There is direct positive relationship between


social
media consumption and purchase
intention.
H2: There is direct positive relationship between
social
media experience and purchase
intention.
H3: Brand engagement will mediate the
relationship
between social media consumption
and purchase intention.
H4: Brand engagement will mediate the
relationship
between social media experience
and purchase intention.

POPULATION & SAMPLING


TECHNIQUES

A survey will be conducted with generation Y


consumers aged 18 to 32 years old located in
Sabah, Malaysia. Existing full time business
students in the university, colleges and young
generation that allocated in Kota Kinabalu (the
capital city of Sabah) will be treated as the target
population and convenient sampling techniques
will be used

QUESTIONNAIRE (contd)
VARIABLES

SOURCE

SOCIAL MEDIA CONSUMPTION

Mathur P. et al (2012). The Impact of


Social Media Usage on Consumer
Buying
Behavior.
Advances
In
Management, Vol. 5 (1) Jan. (2012),
14-22.)

SOCIAL MEDIA EXPERIENCE

Kim
et
al
(2012).
Effect
of
Environmental
Marketing
Claims.
Clothing and Textiles Research Journal
2012 30: 4
Zeenat, I (2011). Buying Behavior:
Gender and Socioeconomic Class
Differences on Interpersonal Influence
Susceptibility. International Journal of
Business and Social Science Vol. 2 No.
4

QUESTIONNAIRE
VARIABLES

SOURCE

BRAND ENGAGEMENT

Anastasia, M. (2011). The influence


of brand engagement in Social
Network
on
the intention of
consumers to purchase a product
regarding its brand equity. Erasmus
Universitiet Rotterdam, 1-96

PURCHASE INTENTION

Qun et al (2012). Exploring The


Factors Affecting Purchase Intention
Of Smartphone: A Study Of Young
Adults In Universiti Tunku Abdul
Rahman, Perak Campus, Malaysia.

THANK YOU
Q & A SESSION