Impact of Facebook Advertisements on Purchase Intentions of Mobile Facebook Users

212 Pages·2017·1.13 MB·English

by  Tayyab Yaqoob Qazi

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
[email protected]
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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,
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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.
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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
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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.
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