Social Media Advertising and Consumer Perception on Purchase Intention

Abstract

In the era of Industrial Revolution 4.0, many companies are using social medias as one of their promotional tools, especially Instagram. The aim of this research is to investigate the influence of Instagram advertising and consumer perception on purchase intention in local building material stores. As this research is using a quantitative approach, the data are collected using questionnaires. The population of this research is the customers who have done several purchases and have followed the stores’ Instagram accounts. Out of the whole population, a number 100 respondents are selected through a purposive sampling technique. The collected data are processed using a SmartPLS program, with the results of no significant influence between Instagram advertising and purchase intention. However, the Instagram advertising has a significant influence on purchase intention through customer perception as the Instagram advertising has a significant influence on customer perception. Therefore, customer perception acts as the intervening variable in this research.