The effect of social media advertising on consumers’ intention to purchasing online courses

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY HUA PHUONG QUYNH THE EFFECT OF SOCIAL MEDIA ADVERTISING ON CONSUMERS’ INTENTION TO PURCHASING ONLINE COURSES ECONOMICS MASTER'S THESIS Ho Chi Minh City - 2021 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY HUA PHUONG QUYNH THE EFFECT OF SOCIAL MEDIA ADVERTISING ON CONSUMERS’ INTENTION TO PURCHASING ONLINE COURSES Major: Business Administration (Faculty) Academic Research Direction Code: 8340101 ECONOMICS MASTER'S THESIS Instructor: Nguyen Phong Nguyen, Ph.D Ho Chi Minh City - 2021 STATEMENT OF AUTHENTICATION I herewith formally declare that I myself have written the submitted Master’s Thesis independently I did not use any outside support except for the quoted literature, and other sources mentioned at the end of this paper Hua Phuong Quynh TABLE OF CONTENT ABBREVIATIONS LIST OF TABLES LIST OF FIGURES LIST OF DIAGRAMS ABSTRACT CHAPTER 1: INTRODUCTION 1.1 BACKGROUND 1.2 RESEARCH GAPS 1.3 RESEARCH QUESTIONS AND OBJECTIVES 1.4 RESEARCH SCOPE 1.5 METHODOLOGY 1.7 OUTLINE OF THE THESIS SUMMARY OF CHAPTER CHAPTER 2: LITERATURE REVIEW 2.1 INTRODUCTION 2.2 OVERVIEW OF PREVIOUS RELATED RESEARCH 2.3 THEORETICAL BACKGROUND 10 2.3.1 Theory of planned behavior (TBP) 10 2.3.2 Advertising model 11 2.3.3 Flow theory 12 2.3.4 Social media 13 2.3.5 Purchase intention 13 2.3.6 Online courses 14 2.4 HYPOTHESIS AND RESEARCH MODEL 14 2.4.1 Flow experience 14 2.4.2 Credibility 15 2.4.3 Information 16 2.4.4 Entertainment 17 2.4.5 Interaction 17 2.4.6 Irritation 18 SUMMARY OF CHAPTER 20 CHAPTER 3: RESEARCH METHODOLOGY 21 3.1 INTRODUCTION 21 3.2 RESEARCH PROCESS 22 3.3 RESEARCH MODEL 22 3.4 RESEARCH METHODS 23 3.4.1 Methods of collecting primary information 23 3.4.2 Methods of collecting secondary information 23 3.5 RESPONDENTS AND SURVEY SAMPLE SIZE 23 3.6 QUESTIONARY DESIGN 24 3.7 DATA COLLECTION 26 3.8 CRONBACK’S ALPHA AND EFA 27 3.9 SURVEY DATA ANALYSIS 27 3.9.1 Descriptive statistical analysis 27 3.9.2 Advanced statistics 28 SUMMARY OF CHAPTER 30 CHAPTER 4: RESEARCH RESULTS 31 4.1 INTRODUCTION 31 4.2 DESCRIPTIVE STATISTICS 31 4.2.1 Descriptive statistics of the survey subject 32 4.2.2 Descriptive statistics and Pearson correlation for the independent variable33 4.3 ADVANCED STATISTICS 34 4.3.1 Cronbach’s Alpha reliability analysis 34 4.3.2 EFA analysis 35 4.3.3 Single regression analysis 36 4.2.4 Results of testing factors effect on purchase intention of online course 42 4.2.5 Independent Sample T-test 44 SUMMARY OF CHAPTER 46 CHAPTER 5: CONCLUSIONS 47 5.1 INTRODUCTION 47 5.2 CONCLUSION 47 5.2.1 Flow experience has a positive impact on purchase intention of online courses 47 5.2.2 Credibility has a positive impact on purchase intention of online courses48 5.2.3 Information has a positive impact on purchase intention of online courses48 5.2.4 Entertainment has a positive impact on purchase intention of online courses 48 5.2.5 Interaction has a positive impact on purchase intention of online courses49 5.2.6 Irritation has a positive impact on purchase intention of online courses 49 5.2.7 There is no significant difference between male and female about the affection of social media advertising towards purchase intention of the online course 49 5.3 RESEARCH IMPLICATIONS 50 5.4 LIMITATION AND FUTURE RESEARCH 51 SUMMARY OF CHAPTER 53 REFERENCES APPENDIX 1: QUESTIONARIES APPENDIX 2: DESCRIPTIVE STATISTICS FOR SURVEY SUBJECT APPENDIX 3: DESCRIPTIVE STATISTICS FOR THE INDEPEPNT APPENDIX 4: PRELIMINARY TESTING OF CROMBACK’S ALPHA RELIABILITY APPENDIX 5: OFFICIAL TESTING OF CROMBACK’S ALPHA RELIABILITY APPENDIX 6: PRELIMINARY TESTING EFA APPENDIX 7: OFFICAL TESTING EFA OF INDEPENDENCE APPENDIX 8: SINGLE REGRESSION APPENDIX 9: REGRESSION MODEL OF TOWARDS PURCHASING THE ONLINE COURSE APPENDIX 10: INDEPENDENT SAMPLES T-TEST ABBREVIATIONS TBP: Theory of planned behavior TRA: Theory of reasons action EFA: Exploratory factor analysis LIST OF TABLES Table 1.1 Classifying classes through the percent of content communicate on the internet Table 3.1 The scale of factors influencing online purchase intention courses through social media advertising 25 Table 4.1 Survey Result 31 Table 4.2 Demographics of the participating informants 32 Table 4.3 Pearson correlation and mean 34 Table 4.4 Cronbach's Alpha Coefficient 34 Table 4.5 Summary of EFA analysis for six independent factors 36 Table 4.6 Testing regression of hypothesis H1 37 Table 4.7 Testing regression of hypothesis H2 38 Table 4.8 Testing regression of hypothesis H3 39 Table 4.9 Testing regression of hypothesis H4 40 Table 4.10 Testing regression of hypothesis H5 41 Table 4.11 Testing regression of hypothesis H6 42 Table 4.12 Results of testing factors effect on purchase intention of online course 43 Table 4.13 ANOVA 44 Table 4.14 Group Statistics 44 Table 4.15 Independent Sample T-test 44 Table 4.16 Summary of hypotheses test results 45 LIST OF FIGURES Figure 2.1 Propose model 19 LIST OF DIAGRAMS Diagram 3.1 Research process 22 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Alpha Item Deleted if Item Deleted Total Correlation if Item Deleted CRE1 5.22 4.108 676 711 CRE2 5.25 4.264 676 713 CRE3 5.32 4.209 611 781 Reliability Statistics Cronbach's Alpha N of Items 838 Item Statistics Mean Std Deviation N INF1 3.26 1.317 210 INF2 3.22 1.133 210 INF3 3.26 1.238 210 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Alpha Item Deleted if Item Deleted Total Correlation if Item Deleted INF1 6.48 4.710 677 804 INF2 6.52 4.997 796 693 INF3 6.49 5.160 645 830 Reliability Statistics Cronbach's Alpha 781 N of Items Item Statistics Mean Std Deviation N ENT1 3.01 1.104 210 ENT2 3.10 1.082 210 ENT3 3.11 1.096 210 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Alpha Item Deleted if Item Deleted Total Correlation if Item Deleted ENT1 6.21 3.490 676 639 ENT2 6.13 3.825 591 734 ENT3 6.11 3.776 591 733 Reliability Statistics Cronbach's Alpha N of Items 833 Item Statistics Mean Std Deviation N INT1 2.99 1.312 210 INT2 2.78 1.288 210 INT3 3.38 1.189 210 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Item Deleted if Item Deleted Total Correlation Cronbach's Alpha if Item Deleted INT1 6.16 4.946 704 758 INT2 6.37 5.325 638 822 INT3 5.77 5.299 742 724 Reliability Statistics Cronbach's Alpha N of Items 829 Item Statistics Mean Std Deviation N IRR1 3.04 1.201 210 IRR2 3.02 1.155 210 IRR3 2.98 1.030 210 Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Total Correlation if Item Deleted Item Deleted IRR1 6.00 3.938 672 783 IRR2 6.02 3.942 722 729 IRR3 6.06 4.546 678 778 Reliability Statistics Cronbach's Alpha N of Items 807 Item Statistics Mean Std Deviation N PI1 2.84 740 210 PI2 3.12 745 210 PI3 3.54 949 210 Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha if Item Deleted Item Deleted Total Correlation Item Deleted PI1 6.66 2.408 600 791 PI2 6.38 2.104 775 624 PI3 5.96 1.826 627 792 APPENDIX 6: PRELIMINARY TESTING EFA KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy .536 Approx Chi-Square Bartlett's Test of Sphericity 270.035 Df 153 Sig .000 Total Variance Explained Component Initial Eigenvalues Total % of Variance Extraction Sums of Squared Rotation Sums of Squared Loadings Loadings Cumulative Total % % of Variance Cumulative Total % % of Cumulative Variance % 4.444 24.692 24.692 4.444 24.692 24.692 2.646 14.701 14.701 2.484 13.800 38.491 2.484 13.800 38.491 2.529 14.048 28.748 2.163 12.016 50.507 2.163 12.016 50.507 2.337 12.981 41.729 1.877 10.429 60.936 1.877 10.429 60.936 2.302 12.790 54.520 1.543 8.570 69.506 1.543 8.570 69.506 2.224 12.356 66.875 1.377 7.650 77.155 1.377 7.650 77.155 1.850 10.280 77.155 824 4.580 81.735 766 4.254 85.989 616 3.421 89.409 10 435 2.419 91.829 11 349 1.941 93.770 12 290 1.610 95.380 13 236 1.313 96.693 14 223 1.238 97.931 15 131 728 98.659 16 107 595 99.254 17 083 463 99.717 18 051 283 100.000 Rotated Component Matrixa Component INT2 923 INT3 862 INT1 767 ENT3 877 ENT1 863 ENT2 671 INF2 878 INF1 789 INF3 709 IRR2 854 IRR3 840 IRR1 500 FE1 758 FE3 746 FE2 639 CRE2 760 CRE1 751 CRE3 707 APPENDIX 7: OFFICAL TESTING EFA OF INDEPENDENCE KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy .731 Approx Chi-Square Bartlett's Test of Sphericity 1773.618 Df 153 Sig .000 Total Variance Explained Component Initial Eigenvalues Total % of Variance Extraction Sums of Squared Rotation Sums of Squared Loadings Loadings Cumulative Total % % of Variance Cumulative Total % % of Cumulative Variance % 4.228 23.488 23.488 4.228 23.488 23.488 2.412 13.400 13.400 2.833 15.736 39.224 2.833 15.736 39.224 2.339 12.992 26.393 2.199 12.215 51.440 2.199 12.215 51.440 2.310 12.833 39.225 1.843 10.240 61.680 1.843 10.240 61.680 2.304 12.801 52.026 1.457 8.094 69.774 1.457 8.094 69.774 2.205 12.247 64.273 1.117 6.207 75.981 1.117 6.207 75.981 2.107 11.707 75.981 599 3.329 79.310 542 3.013 82.324 499 2.771 85.095 10 456 2.531 87.626 11 413 2.294 89.920 12 349 1.940 91.860 13 327 1.819 93.679 14 301 1.674 95.353 15 238 1.324 96.677 16 219 1.215 97.893 17 204 1.133 99.026 18 175 974 100.000 Rotated Component Matrixa Component FE3 836 FE1 834 FE2 782 INT3 871 INT2 861 INT1 842 IRR2 874 IRR1 834 IRR3 829 INF2 897 INF1 853 INF3 848 CRE3 813 CRE2 808 CRE1 785 ENT1 861 ENT3 790 ENT2 657 APPENDIX 8: SINGLE REGRESSION Model Summaryb Model R R Adjusted Std Error of the Square R Square Change Statistics Estimate R Square F Durbin- Change Change 410a 168 164 63465 Watson df1 df2 Sig F Change 168 41.943 208 000 1.167 ANOVAa Model Sum of Squares df Mean Square F Regression 16.894 16.894 Residual 83.779 208 403 Total Sig 41.943 000b 100.673 209 Coefficientsa Model Unstandardized Standardized Coefficients Coefficients B (Constant) Std Error Sig Collinearity Statistics Beta 2.106 170 317 049 FE t Tolerance 12.417 000 6.476 000 410 1.000 VIF 1.000 Model Summaryb Mode R l R Adjusted R Square Square Std Error of Change Statistics the Estimate R Square Change 512a 262 258 59773 Durbin- F df1 df2 Sig F Watson Change Change 262 73.774 208 000 1.294 ANOVA Model Sum of Squares df Mean Square Regression 26.358 26.358 Residual 74.315 208 357 100.673 209 Total F 73.774 Sig .000b Coefficientsa Model Unstandardized Standardized Coefficients Coefficients B (Constant) CRE Std Error t Sig Collinearity Statistics Beta 2.211 119 363 042 Tolerance VIF 18.628 000 512 8.589 000 1.000 1.000 Model Summaryb Model R R Square Adjusted Std Error R Square 325a 106 Change Statistics of the R Square F Estimate Change Change 101 65791 Durbin- df2 Sig F Watson df1 Change 106 24.585 208 000 1.279 a Predictors: (Constant), PI b Dependent Variable: PI ANOVAa Model Sum of Squares Df Mean Square F Regression 10.641 10.641 Residual 90.031 208 433 100.673 209 Total Sig .000b 24.585 Coefficientsa Model Unstandardized Standardized Coefficients Coefficients B (Constant) INF Std Error 2.483 145 211 043 t Sig Collinearity Statistics Beta Tolerance VIF 17.085 000 325 4.958 000 1.000 1.000 Model Summaryb Model R R Square 473a 224 Adjusted R Std Error Square 220 Change Statistics of the R Square F Estimate Change Change 61296 224 59.943 df1 df2 DurbinSig F Watson Change 208 000 1.207 ANOVAa Model Sum of Squares Df Mean Square Regression 22.522 22.522 Residual 78.151 208 376 100.673 209 Total F Sig .000b 59.943 Coefficientsa Model Unstandardized Standardized Coefficients Coefficients B (Constant) Std Error 2.061 149 360 046 ENT t Sig Collinearity Statistics Beta Tolerance 473 13.828 000 7.742 000 VIF 1.000 1.000 Model Summaryb Model R R Adjusted R Std Error of Square 319a Square 102 Change Statistics the Estimate 098 R Square F Change Change 65929 df1 Durbin- df2 Watson Sig F Change 102 23.611 208 000 1.188 ANOVAa Model Sum of Squares Df Mean Square Regression 10.263 10.263 Residual 90.410 208 435 100.673 209 Total F Sig 23.611 000b Coefficientsa Model Unstandardized Standardized Coefficients Coefficients B (Constant) INT Std Error 2.550 135 203 042 t Sig Beta Collinearity Statistics Tolerance 319 18.891 000 4.859 000 1.000 VIF 1.000 Model Summaryb Model R R Adjusted Std Error Square R Square of the R Square Estimate 392a 153 149 Change Statistics F df1 Durbin- df2 Sig F Change Change 64011 Watson Change 153 37.698 208 000 1.378 ANOVAa Model Sum of Squares Df Mean Square Regression 15.447 15.447 Residual 85.226 208 410 100.673 209 Total F Sig 37.698 000b Coefficientsa Model Unstandardized Standardized Coefficients Coefficients B (Constant) IRR Std Error 2.328 144 278 045 t Sig Beta Collinearity Statistics Tolerance 392 16.213 000 6.140 000 1.000 VIF 1.000 APPENDIX 9: REGRESSION MODEL OF TOWARDS PURCHASING THE ONLINE COURSE Correlations PI Pearson Correlation Sig (1tailed) N FE CRE INF ENT INT IRR PI 1.000 410 512 325 473 319 392 FE 410 1.000 148 192 290 -.003 124 CRE 512 148 1.000 -.079 490 194 327 INF 325 192 -.079 1.000 004 -.027 041 ENT 473 290 490 004 1.000 143 316 INT 319 -.003 194 -.027 143 1.000 045 IRR 392 124 327 041 316 045 1.000 PI 000 000 000 000 000 000 FE 000 016 003 000 482 037 CRE 000 016 127 000 002 000 INF 000 003 127 477 347 278 ENT 000 000 000 477 019 000 INT 000 482 002 347 019 258 IRR 000 037 000 278 000 258 PI 210 210 210 210 210 210 210 FE 210 210 210 210 210 210 210 CRE 210 210 210 210 210 210 210 INF 210 210 210 210 210 210 210 ENT 210 210 210 210 210 210 210 INT 210 210 210 210 210 210 210 IRR 210 210 210 210 210 210 210 Model Summaryb Model R R Square Adjusted R Std Error of Square Change Statistics the Estimate R Square Change 761a 580 567 45650 F df1 df2 Change 580 46.681 DurbinSig F Watson Change 203 000 1.577 ANOVAa Model Sum of Squares df Mean Square Regression 58.368 9.728 Residual 42.304 203 208 100.673 209 Total F Sig 46.681 000b Coefficientsa Model Unstandardized Standardized Coefficients Coefficients B Std Error (Constant) 104 193 FE 183 038 CRE 226 INF t Sig Beta Collinearity Statistics Tolerance VIF 538 591 237 4.879 000 876 1.141 039 318 5.860 000 703 1.422 196 030 303 6.481 000 948 1.055 ENT 118 042 155 2.819 005 686 1.457 INT 150 030 236 5.072 000 956 1.046 IRR 132 035 186 3.790 000 856 1.168 APPENDIX 10: INDEPENDENT SAMPLES T-TEST Group Statistics Gender PI N Mean Std Deviation Std Error Mean Male 102 3,18 0,702 0,070 Female 108 3,15 0,689 0,066 Independent Samples Test Levene's Test t-test for Equality of Means for Equality of Variances F Sig t df Sig (2- Mean tailed) Difference Std Error 95% Confidence Difference Interval of the Difference Lower Upper Equal variances 1.397 239 -.256 208 798 -.026 100 -.223 172 -.246 136.256 806 -.026 104 -.232 180 assumed PI Equal variances not assumed ... the course and the provider From all of them, the author decided to conduct the research topic: ? ?the effect of social media advertising on consumers’ intention to purchasing online courses. ” 1.2... observations divided by the number of observations Used to calculate the average of the factors that show the influence of social media advertising on the intention to buy an online course consists of. .. appropriateness of the factors drawn from the theory and the current situation about the impact of social media advertising on online shopping intentions for online courses The interviews showed that the