The effect of Facebook in-application advertisements on purchase intent: a case of retail shopping in South Africa

• Main Author: Radise, Neo Makgalong
• Format: Others
• Language: en
• Published: 2018
• Online Access: https://hdl.handle.net/10539/26041

A research report submitted to the faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfillment of the requirements for the Degree of Master of Management in strategy marketing Johannesburg, 2018 === Social media has transformed how people communicate with each other and has carved alternative ways for businesses to engage and interact with customers by sending them targeted campaigns and promotions using various social media platforms. Social media has made information accessible to consumers which assists them to make well informed decisions when making a purchase. The focus of the study is to establish the effectiveness of in-application advertisement on Facebook on purchase intent - a case study on retail in South Africa. The analysis is based on the black baby boomer cohort, an under studied segment of the population, in South Africa. The findings of the study reveal the growing adaptation and use of Facebook by baby boomers in South Africa, as they use and rely on this platform to remain connected with family, friends and peers and to be able to source information on products and services based on peers via word of mouth. This study relies on quantitative analysis of the results obtained through an online survey. A total of 603 respondents engaged with the survey, which was placed on Facebook, and 235 of the successfully completed questionnaires were by baby boomers in South Africa. The study testes five hypotheses using Structural Equation Modelling and SPSS. The study revealed that the hypotheses that tested in-application advertisement on Facebook and its effectiveness does show a strong relationship with performance expectancy by baby boomers. Effort and social influence had a weak relationship to any of the variables, however this changed when new mediator variables, clicking on and advertisements and word of mouth, are introduced. The study contributes to the literature and theoretical knowledge on the positive effectiveness of Facebook and online banner advertisement towards purchase intent, and the effectiveness and impact of word of mouth both online and offline, in South Africa. The findings may be applied and expanded to other African regions. === MT 2018