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Master thesis Social Network Advertising: Investigating what factors affect the change of consumers’ attitudes. Name : Alam Yudhokesumo Student number : 5758580 Major : Business studies Supervisor : Drs. Ing. A.C.J. Meulemans Faculty of Economics and Business: Universiteit van Amsterdam Table of contents Abstract 1. Introduction…………………………………………………………………......5 1.1. The emerging social networking websites and the participants………………………………………………………5 2. 1.2. Problem statement………………………………………......…6 1.3. Purpose of research……………………………………..……9 1.4. Research questions……………………………………………12 Literature review………………………………………………………………14 2.1. E-Commerce…………………………………………….………14 2.2. Advertising in Marketing and Promotion Mix………………...19 2.2.1. Advertising…………………………………………………...22 2.2.2. Social network advertising………………………….……...25 2.3. Measuring advertising (communication) result………………36 2.3.1. Consumers’ attitudes……………………………………….40 2.3.1.1. Attitudes toward advertising…..……………………42 2.3.1.2. Attitudes toward brand (Brand attitude)…………...46 2.3.2. Factor definitions and measurements……………………..47 2.3.2.1. Perceived message contents…………….…..…….47 2.3.2.1.1. Entertainment…………………….………..….....47 2.3.2.1.2. Informativeness…………………………..……...48 2.3.2.1.3. Irritation…………………………………...………49 2.3.2.1.4. Credibility……………………………………..…..50 2.4. 2.3.2.2. Attitude toward Institution of advertising………..…51 2.3.2.3. Attitude toward Instrument of advertising………....51 2.3.2.4. Frequency of advertisement exposure…………….52 2.3.2.5. Consumers’ demographic backgrounds…………..53 Social Media…………………………………………………......54 2.4.1. Social Networking Websites………………………………..56 2.4.2. Facebook……………………………………………………..63 3. Methodology……………………………………………….…………………68 3.1. Type of research………………………………………………...68 Author: A. Yudhokesumo________________________________________________ ________________ 2 Faculty of Economics and Business: Universiteit van Amsterdam 3.2. Hypotheses and conceptual model………………………..68 3.3. Data collection……………………………………………….71 3.4. Data analyses………………………………………….…….73 3.4.1. Descriptive analyses…………………………….………73 3.4.2. Reliability analyses……………………………..………..74 3.4.3. Correlation and Regression analyses……….………...76 4. 3.4.3.1. Correlation…………………………….……….....76 3.4.3.2. Regression analyses……………….………..…..78 Results, Discussions and implications……………………………………85 4.1. Results, discussion and implications……….………………85 4.2. Limitations and further research………….…………………94 4.3. Managerial contributions………………..……………………96 Reference………………………………………………………………….….97 Appendix A. Questionnaire……………………………………………........104 B. SPSS Output………………………………………………….109 Author: A. Yudhokesumo________________________________________________ ________________ 3 Faculty of Economics and Business: Universiteit van Amsterdam Abstract Social networking websites are changing the way companies create advertisements on the Internet. Many online social networking websites (SNS) have grown rapidly during the past 10 years. Although still in its infancy, social networking advertising or online advertising that focuses on social networking sites are the largest and fastest growing form of social marketing. Given the reason, it is every advertiser’, companies’ and marketing managers’ dream to answer the million-dollar question of how can advertisements be carry out more effectively throughout social networking websites. Creating an ad campaign is timely and costly efforts. This study offers a clear explanation of the main aspects that should be stressed and emphasized in designing advertisements and to avoid elements that might generate a decline in consumers’ attitudes post to the exposure of advertisement. A conceptual model was developed and sets of hypotheses were proposed to statistically test the survey-based data and quantitatively analyze the results. 241 members of Facebook social networking website filled the online questionnaires. Among all the factors analyzed, the finding of this research has concluded that Entertainment, Informativeness, and Credibility of advertising message content as well as advertising Instrument selection and Frequency of exposure, play important role in affecting consumers’ attitudes investigated. The research is timely and may be of importance for academics, advertising practitioners, and companies in general. Author: A. Yudhokesumo________________________________________________ ________________ 4 Faculty of Economics and Business: Universiteit van Amsterdam 1. Introduction 1.1.1. The emerging Social networking websites and the participants Companies around the world are trying to exploit and take advantage the opportunity created by technology, such as it is today with Internet. Since the explosion of the Internet, more than 1 billion people worldwide have connected to the World Wide Web (Torres, 2008). Through this new “flattened” world (Friedman, 2005), this user base has created and facilitated significant opportunities for communication and collaboration today, making social networking synonymous with the use of the Internet. Consequently many online social networking websites (SNS) have grown rapidly too during the past 10 years. They have become a popular tool of communication and an active online platform to socialize with friends, families, associates or anyone in own networks. Social networking sites such as MySpace and Facebook, to name just a few, have been increasingly popular in the last few years (Joinson, 2008). They have experienced a significant growth in their number of visitors. A 2006 Nielsen-NetRatings study revealed that a number of social networking Web sites experienced a 47% increase in visitor traffic between 2005 and 2006. During the same period, MySpace witnessed a 367% growth in the number of visitors. In the UK, the usage of Facebook increased by 500% between November 2006 and May 2007. Mixi, a popular social networking site in Japan, had over 10 million users and an 80% share of the social networking market in Japan (Wikipedia, 2008). Similarly, in the Netherlands, by July 2008, Hyves announced that they had reached 7 million users, of which about 5 million were Dutch (Wikipedia, Author: A. Yudhokesumo________________________________________________ ________________ 5 Faculty of Economics and Business: Universiteit van Amsterdam 2008). This amounts to about a third of the entire population of The Netherlands. Looking at bigger picture, Nielsen (2008) statistics shows that out of a total population of 6.7 Billion in the world; around 1.5 Billion people of the population are connected to the Internet (Internet users). From that 1.5 Billion world Internet users, 140 million of them are “on Facebook” (Facebook, 2008), approximately 30 million more are “professionally Linked-in” (LinkedIn, 2008), and more than 110 million are on “their Space” (MySpace, 2008). Moreover, a huge number, 95%, of teens and “tweens” (preteens and young adolescents aged 10-14) across the globe, report their participation in online social networks (Klaassen, 2007a). Currently, social network participation is one of the most common usages of the Internet. It seems as if online social network has become “a new town square” for teens to hangout (O Reilly, 2006). This social networking trend has created a major shift in the Internet's function and design (Torres, 2008). The fact that millions of users have adopted social networks for everything from friendships to dating to job hunting shows the indication of the significant change in the manner in which the “connected” community interacts with each other. And this phenomenon shows that social networking has led to a digitalization of the human conversation (Torres, 2008). 1.1.2. Social network websites as a new advertising medium For years traditional marketing involved a one-way communication effort. Through televisions, radio, printed media and other traditional marketing tools, companies put onward value propositions to generate market Author: A. Yudhokesumo________________________________________________ ________________ 6 Faculty of Economics and Business: Universiteit van Amsterdam appeal, attract and retain customers, and drive sales (Ford, 2008). However, with consumers showing the increasing resistance to traditional forms of advertising, marketers must turn to alternate strategies to reach the targeted market (Leskovec, Adamic & Huberman, 2008). According to a study by Stanford as mentioned by Laudon & Traver (2008), for every traditional hour users spend online, they reduce their corresponding time spent with traditional media such as television, newspaper, and radio. Several points from literature by Ducoffe (1996) on his study also suggested few points of why advertising in the traditional media often possesses rather little value to consumers. With the ever-changing world of technology, consumers can be reached through more and more media. These opportunities are only possible if companies and their marketing department follow their audiences and understand how to reach them effectively (Stephansen, 2008). This can be done such as through social networking websites, which are increasingly being recognized as important sources of information influencing the adoption and use of products and services (Subramani & Rajagopalan, 2003). Ford (2008) suggested that effectively advertising products using traditional media approaches is impractical. He suggested that using more targeted marketing approaches such as through social networks is advantageous both to the merchant and the consumer, who would benefit from learning about new products. A Study conducted by Klassen (2007b) reported that friends passing along brand messages on online social networks contribute to 70% of the sales return on investment (ROI). This means that 70% of advertisement found in online social network catch users attention and encourage them to Author: A. Yudhokesumo________________________________________________ ________________ 7 Faculty of Economics and Business: Universiteit van Amsterdam share the advertisements again through their networks. A recent research by Razorfish (2008) reported that interestingly 40% of survey respondents said they have made a purchase based on advertising they saw on a social media site, and the vast majority welcome advertising in social media experiences. On the following part, Todi (2008) summarized four main reasons of why social networks are playing more prominent parts in companies’ advertising strategies: Large reach: In December 2007, the top three social networking sites, Facebook, MySpace and YouTube, had roughly 161 million unique visitors combined in the US alone. This accounted for roughly twothirds of the total US population online and nearly half of the total US population. Additionally, Internet users worldwide are spending increasing amounts of time on activities with social connections. By incorporating social networks in their advertising strategies, companies can reach out to a large user base spread across the country with relative ease. Cost efficiency: Advertising on social networks is relatively cheap compared to other traditional medias. It usually has a similar or expanded reach at much lower costs. In addition, it is possible for companies to generate free publicity through creative advertising techniques. There have been a number of successful viral marketing campaigns on YouTube and Facebook in recent years. Targeted advertising: Advertisers have access to a great deal of information about users and their interests, allowing them to customize Author: A. Yudhokesumo________________________________________________ ________________ 8 Faculty of Economics and Business: Universiteit van Amsterdam and target their ads to a degree not yet seen in any other advertising medium. Time spent online: People are spending increasing amounts of time online, especially on social networking websites, at the expense of traditional advertising media such as television and newspapers. This can be viewed as a result of many of the traditional functions – news, television shows – of the old advertising media being shifted online to social networks such as in YouTube. As a result, advertisers are increasingly looking for ways to reach out to consumers who are spending more and more time online. 1.1.3. Problem statement As Social networking websites have grown in popularity, seeing the facts and figures mentioned before suggest that marketers and advertisers may see them as extraordinary opportunities. Besides providing an arena for people to interact with one another, social networking websites also display a great deal of potential for businesses to easily reach their target audiences through advertising (Wind & Todi, 2008). Evidently, most corporations have already created multiple methods of advertising in this new medium, ranges from banners to newer forms such as the creation of product groups that people can join freely such as like it is available now on Facebook. These corporations may have believed so, due to the fact that online social networks have an enormous outreach and able to provide the ability of targeting many people at a relatively low cost in a short period of time. Author: A. Yudhokesumo________________________________________________ ________________ 9 Faculty of Economics and Business: Universiteit van Amsterdam However, conversely to the earlier reasons suggested, many sources had suggested that advertising on web-based advertising in general to be ineffective. Brackett and Carr’s (2001) research showed that their samples were irritated, and annoyed by Web Advertising in general, and Internet advertising can be irritating (Rettie, Robinson and Jenner, 2000), hence this may reduce advertising effectiveness. Clemon, Barnett, & Appadurai (2007) suggest that advertising in these online venues will be unsuccessful, and that at best advertising will be little more than irrelevant to viewers and waste of advertisers’ money. At worst, advertising will be seen as an unwelcome intrusion, and as reducing the value of the social website to its participants. A similar opinion also tossed from Hadija (2007), who suggested that online social networks represent intimate environments for Internet users, hence advertising might not be welcome there if it continues to be wrongly targeted and intrusive, and that could possibly lead to substantial revenue loss from advertising in these sites. Moreover, there are many also blogs, online article, forum and discussions over the Internet suggesting that advertising on social network websites do not and will not work (Uphoff, 2009; Bgamal, 2009; Porter, 2008; Stern, 2008). 1.2. Purpose of Research The growth of advertising on the World Wide Web requires research on users' view (Ducoffe, 1996). Ever since the first pop-up advertisement hit the Internet in 1994, Internet users have accepted advertising as a necessary evil on the Internet. Consumer preferences have evolved along with the Internet. If marketers want to use the communication channels that social media, Author: A. Yudhokesumo________________________________________________ ________________ 10 Faculty of Economics and Business: Universiteit van Amsterdam particularly social networking websites provide in an efficient way, they need to understand how consumer perceive and evaluate social networking websites as a source of advertising. Creating an ad campaign is timely and costly efforts. Marketers need to be aware of the negative attitudes held by consumers towards advertising on social network advertising and the adverse effect it could have on the brands advertised. Even though companies are investing heavily on advertising in social networking websites, the nature and implications of how customers perceive advertising in this channel have yet to be fully understood and studies need to be performed. Because social network advertising is relatively new, not much is known about how consumers’ attitudes change when being exposed by social network advertising or what affect the change of consumers’ attitudes when they are being exposed by social network advertising in their everyday life. Specifically, prior researches have yet to explore on how social network advertising message contents, attitudes toward institution of social network advertising, attitudes toward instruments of social network advertising, and frequency of social network advertising exposure will affect consumers’ attitudes, namely attitude toward advertisements and attitude toward brand. Therefore, this thesis aims to contribute to this objective. The purpose of this research is to study the area of social network advertising, an emerging method of advertising which uses social networking websites as new advertising medium, based on how their viewers perceive the advertisements in which they had encountered before. In addition, the contents being asked as examples in the questionnaire would be all types of advertisements exposed in social networking websites, and not just an Author: A. Yudhokesumo________________________________________________ ________________ 11 Faculty of Economics and Business: Universiteit van Amsterdam exposure from a particular form of advertisement of a particular organization. In short, the concrete objectives of this research are listed as following: To examine what factors affect the change of consumers’ attitudes when social network advertising exposes them. To understand how consumers’ attitudes (attitude toward advertisement, and attitude toward brand) will change, affected by the elements of social network advertising message contents, attitude toward institution of social network advertising, attitude toward instrument of social network advertising, and frequency of social network advertising exposure. To provide insights and suggestions to marketers and advertisers based on the result of the study 1.3. Research Questions For the purposes of the research mentioned, the following main research questions and sub research questions are developed: Main research questions: What factors affect the change of consumers’ attitudes when exposed by social network advertising? In this study, attitude toward advertising and attitude toward brand will be taken as examinations of consumers’ attitudes. To answer the research question, a conceptual model consisting factors of advertising message contents (entertainment, informativeness, irritation, credibility), attitudes toward institution of advertising, and attitude toward instrument of advertising Author: A. Yudhokesumo________________________________________________ ________________ 12 Faculty of Economics and Business: Universiteit van Amsterdam as well as consumers’ attitudes (attitude toward advertisement and attitude toward brand) are adopted from existing literature and prior researches, adapted to fit the nature of the research, and analyzed the relationship for the purpose of this study. Additionally, in order to cover broader results, consumers’ demographic backgrounds such as, age, and frequency of advertisement exposure, number of social networking websites participation) will also be analyzed the relationship. Hypotheses and conceptual model carried out in this thesis will be displayed on the latter part after the definitions and the measurements of each construct have been delineated. Author: A. Yudhokesumo________________________________________________ ________________ 13 Faculty of Economics and Business: Universiteit van Amsterdam 2. Literature review 2.1. E-commerce E-commerce technologies permit many business models, including ones on social networking websites to exist. Therefore, in this research, literatures of e-commerce will be presented as the opening section of this chapter. Electronic commerce, commonly known as e-commerce consists of the buying and selling of products or services over electronic systems, such as through the Internet and other computer networks (Wikipedia, 2009). The amount of trade conducted electronically has grown extraordinarily since the spread of the Internet. A wide variety of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange, inventory management systems, automated data collection systems, and etc. Modern electronic commerce typically uses the World Wide Web at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail as well (Wikipedia, 2008). Laudon and Traver (2008) defined e-commerce as “the use of Internet and the Web to transact business focusing on digitally enabled commercial transactions between and among individual”. Another definition of ecommerce is “the delivery of goods/services or payments via networks, application technology towards automation of business transactions, and as a tool for increasing business efficiency and for cutting costs” (Kataloka, 1997). Electronic commerce is generally considered to be the sales aspect of eAuthor: A. Yudhokesumo________________________________________________ ________________ 14 Faculty of Economics and Business: Universiteit van Amsterdam business. It also consists of the exchange of data to facilitate the financing and payment aspects of the business transactions. Laudon and Traver (2008) listed eight unique features of e-commerce technology. These unique features of e-commerce technologies suggest many new possibilities for marketing and selling. E-commerce technologies make it possible for merchants to know much more about consumers and to be able to use this information more effectively than ever was before in the past. Potentially, merchants use this new information to develop new information asymmetries. They can enhance their ability to brand products, and segment the market better. The unique features of e-commerce technology (Laudon and Traver, 2008) said before will be described next. Ubiquity: The Web/Internet enables e-commerce technology available just about everywhere, at all times. The marketplace is extended beyond traditional boundaries and is removed from a temporal and geographic location, and transformed into “Marketspace”. Global reach: The technology reaches across national boundaries and around the earth. Universal standards: There is one set of technology standards, namely Internet standards. Richness: The complexity and content of the message. Video, audio and text message are possible to be integrated into a single marketing message and consuming experience. Interactivity: The technology works through interaction with the user. It allows for two-ways communication between merchant and consumer, thus making the consumer a co-participants Author: A. Yudhokesumo________________________________________________ ________________ 15 Faculty of Economics and Business: Universiteit van Amsterdam Information density: The technology reduces information costs and raises quality, because the total amount and quantity of information are available to all market participants. Personalization/Customization: The technology allows personalized messages to be delivered to individuals as well as groups, by adjusting the message to interests and preference, or prior behavior and past-purchase. Social Technology: The technology enables user content creation and distribution, and supports social networks. Zooming in the last feature, Social Technology, suggests that in a way quite different from all previous technologies, the Internet and e-commerce technologies have evolved to be much more social by allowing users to create and share content in the form of text, videos, music, or photos with a worldwide community. Using these forms of communication, users are able to create new social networks and strengthen existing ones. All previous mass media in modern history, including the printing press, use broadcast model (one-to-many) where content is created and in a central location by experts (professional writers, editors, directors, actors, and producers,) and audiences are concentrated to consume a standardized products. The Telephone would appear to be an exception but it is not a “mass communication” technology, instead, the telephone is one-to-one technology. The new Internet and ecommerce technologies have the potential change this standard media model by giving users the power to create and distribute content on a large scale, Author: A. Yudhokesumo________________________________________________ ________________ 16 Faculty of Economics and Business: Universiteit van Amsterdam and permit users to program their own consumption. The Internet provides many-to-many model of mass communication that is unique. There are variety of different types of e-commerce and many different ways to characterize it. Laudon and Traver (2008) also listed five major types of e-commerce in their book. These types of e-commerce are distinguished by the nature of the market relationship, which is who is selling to whom. They are described briefly below: Business-to-Consumer (B2C) E-commerce is in which online business attempt to reach individual consumers. Within B2C category, there are many different types of business models, such as: portals, content providers, transaction brokers, service providers, and community network providers (social networking websites) such as Facebook. Business-to-business (B2B) E-commerce provides business focus on selling to other business, and is the largest form of e-commerce. There are two primary business models used within the B2B arena, such as: Net marketplaces, which include e-distributors, e-procurement companies, exchanges and industry consortia; and private industrial networks, which include single firm networks and industry-wide networks. Consumer-to-Consumer (C2C) E-commerce provides a way for consumers to sell to each other, with the help of an online market maker such as the global auction site eBay (eBay, 2008), or Marktplaats (Marktplaats, 2008) in the Netherlands. Nowadays, many popular social networking websites (such as Facebook) may seem to Author: A. Yudhokesumo________________________________________________ ________________ 17 Faculty of Economics and Business: Universiteit van Amsterdam start adopting this feature and therefore allowing transactions and payments to be made without even having to leave the website. Peer-to-Peer (P2P) E-commerce technology enables Internet user, to share files and computer resources directly without having to go through a central web server. In peer-to-peer’s purest form, no intermediary is required, although in fact, most P2P networks make use of intermediary “super servers” to speed operations. The business models that support P2P commerce are unusual and in most cases are illegal. Like for example with Napster that was being put out of the business to bankruptcy on 2002 by series of negative court decisions, and was re-purchased again lately on 2008 by US Electronic retailer, Best Buy, for $US 121 million (Wikipedia, 2009). Facebook, MySpace, and hundreds of other niche-oriented social networking sites, are emblematic of the new e-commerce (Laudon and Traver, 2008). These sites and others are defining a new and vibrant model of e-commerce growing up alongside the more traditional e-commerce retail sales models exemplified by Amazon and eBay, as well as funded by advertising models. In these new models, services are provided both to subscribers (users) as well as to business firms to advertise to entire audiences of the websites (consumer-to-consumer and business-to- consumer). Never before in the history of media have such large audiences been aggregated and made accessible (Laudon and Traver, 2008), thus making the social networks technology that is highly disruptive for traditional media firms. Furthermore, with the eyeballs toward social networking sites Author: A. Yudhokesumo________________________________________________ ________________ 18 Faculty of Economics and Business: Universiteit van Amsterdam (SNS) and user-generated content (UGC) sites mean fewer audiences of traditional advertising medias. Social networks are becoming the place where new products can be introduced and where new sales can be achieved to highly targeted and segmented audiences with a precision that was impossible to be reached before (Laudon and Traver, 2008). E-commerce technology permits commercial transactions to cross cultural and national boundaries far more conveniently and cost-effectively than is true in traditional commerce. As a result, according to industry sources Internet Worldstats (2007), the potential market size for e-commerce merchants is roughly equal to the size of world’s online population, which is over than 1.2 billion in 2007 and growing rapidly. The total number of users or customers an e-commerce business can obtain is a measure of its reach (Evans & Wurster, 1997). 2.2. Advertising in Marketing and Promotion Mix This research investigates the area of advertising done particularly on Social networking websites. Therefore, literatures of Advertising are essentials to be included in this thesis. The relation of advertising in Marketing and Promotion Mix is beforehand described in the first part of this section. Then, literatures of Advertising will be presented subsequently on the second part. And Social network advertising specifically will be focused on the last part of this section. Organizations handle advertising in different ways. In small companies, someone handles advertising in the sales or marketing department who works with an outside advertising agency, whereas a large company will often set up its own department. The advertising department’s job is to propose a budget, Author: A. Yudhokesumo________________________________________________ ________________ 19 Faculty of Economics and Business: Universiteit van Amsterdam develop advertising strategy, approve ads and campaigns, and handle a number other forms of advertising. Most companies today use an outside agency to help create advertising campaigns and to select and purchase media (Kotler, 2003). The marketer’s task is to build a marketing program or plan to achieve the company’s desired objectives. The marketing program consists of numerous decisions on the mix of marketing tools to use. Advertising is just a tool that can be integrated with other promotion tools within promotion mix, and promotion mix is also a smaller part of marketing mix. According to Kotler (2003), Promotion mix or Marketing Communication mix is “a company’s total marketing communication program”. Promotion mix consists of specific mix of advertising, personal selling, sales promotion, and public relations tools that the company uses to pursue its advertising and marketing objectives. And Marketing mix is “the set of marketing tools the firm uses to pursue its marketing objectives in the target market”. Kotler (2003) also brought up McCarthy in his book that classified these tools into four broad groups, the so called four P’s of Marketing, consisting of Product, Price, Place, and Promotion (figure 1). These four P’s of (traditional) marketing mix are extended for service firms (Booms & Bitner, 1981), adding up another 3 P’s, which are People, Physical evidence, and Process. In addition, Lovelock & Wright (1999) added another extension, the eight P, which is Productivity and Quallity. Many questions have arisen, however, regarding whether these (offline) P’s of marketing mix are applicable for online environment. Regardless of some sources may have said otherwise, but some other literatures found have suggested that these Author: A. Yudhokesumo________________________________________________ ________________ 20 Faculty of Economics and Business: Universiteit van Amsterdam differences may only lay with the implications tools and not the interpretations and the elements, and therefore they can be adapted to fit each nature of business. Figure 2.1 The Four P components of Marketing Mix Source: Kotler, 2003 In Figure 2.1 above are shown particular variables under each “P” of Marketing Mix, and in Figure 2.2 next is shown a company’s Marketing-Mix strategy consisting of Offering Mix of products, services, and process and utilization of a Promotion Mix of sales promotion, advertising, sales force, public relations and direct marketing to reach the trade channels and target customers. Kotler (2003) suggested that firms can change their price, sales force size, and advertising expenditures in the short run, but in the long run they can only develop new products and modify its distribution channels. Author: A. Yudhokesumo________________________________________________ ________________ 21 Faculty of Economics and Business: Universiteit van Amsterdam Figure 2.2 Marketing-Mix strategy Source: Kotler, 2003 2.2.1. Advertising There are many definitions of advertising given from different sources. According to Kotler (2003), advertising is “any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor”. Similarly, American Marketing Association (1984) defined advertising as “a statement or propagation, which is paid by advertisers, can be displayed in any forms, and they can convey any concepts, commodities or services that are provided by the advertisers”. Wikipedia (2009) showed the definition of Advertising as “a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service”. Dunn (1990) made a specific definition for advertising, that is “Advertising is paid, non-personal communication through various mass media by business firms, nonprofit organizations, and individuals who are in some way identified in the message and who hope to inform or persuade members of a particular audience”. Advertising can efficiently reach geographically dispersed buyers. Advertising can be used to build up a long-term image for a product or trigger Author: A. Yudhokesumo________________________________________________ ________________ 22 Faculty of Economics and Business: Universiteit van Amsterdam quick sales. Certain forms of advertising may require a large budget, whereas other forms do not. Just the presence of advertising might have an effect on sales. Consumers might believe that a heavily advertised brand must offer “good value” (Kotler, 2003). Because of many forms and uses of advertising, it is difficult to make generalizations. Yet the following qualities of advertising suggested by Kotler (2003) can be noted: Public presentation: Advertising’s public nature presents a kind of legitimacy on the product and also suggests a standardized offering. Pervasiveness: Advertising permits the seller to repeat a message many times. It also allows the buyer to receive and compare the messages of various competitors. Large-scale advertising says something positive about the seller’s size, power and success. Amplified expressiveness: Advertising provides opportunities for dramatizing the company and its products through the artful use of print, sound, and color. Impersonality: The audience does not feel obligated to pay attention or respond to advertising. Advertising is monologue in front of not a dialogue with, the audience. Advertising plays a significant role in providing an introduction to the company and its product, and if the product embodies new features, advertising can explain them. Advertising can also remind customers of how to use the product and reassure them about their purchase (Kotler, 2003). Mehta (2000) recommended that advertising should be practical messages, Author: A. Yudhokesumo________________________________________________ ________________ 23 Faculty of Economics and Business: Universiteit van Amsterdam which are liked and trusted by public because those messages can provide up-to-date information about commodities or service. Furthermore, Kotler (2003) also suggested that in developing a program, marketing department must always start by identifying the target market and buyer motives. Then, five major decisions in developing an advertising program can be made. These five Ms of advertising includes: Mission: What are the advertising objectives? Money: How much can be spent? Message: What message should be sent? Media: What media should be used? Measurement: How should the results be evaluated? Moreover, in regard to Kotler’s first point above, many specific communication and sales objectives can be assigned to advertising. When developing the Mission part as it is shown above, advertising objectives must flow from prior decisions on target market, market positioning, and marketing mix. Advertising objectives can be classified according to whether their aim is to inform, persuade, remind, or reinforce. Each type of these advertising characters aims at different stages in the Hierarchy of Effects that will be discussed on the latter section. The character of advertising as distinguished by Kotler (2003) were as following: Informative advertising aims to create awareness and knowledge of new products or new features of existing products. Persuasive advertising aims to create liking, preference, conviction, and purchase of a products or service. Author: A. Yudhokesumo________________________________________________ ________________ 24 Faculty of Economics and Business: Universiteit van Amsterdam Reminder advertising aims to stimulate repeat purchase of products and services Reinforcement advertising aims to convince current purchasers that they had made the right choice. Here we can see that advertisement can be created to different objectives. Creating an advertisement campaign is also a costly and timely effort. Marketers and advertisers usually have to test and see the results first before they initiate it on a bigger scale. Therefore, knowing and planning what kind of advertisement, what aspect should be stressed, and what media or techniques should be implemented is an important task for marketers and advertisers. The sooner are these objectives be identified can help them to plan the campaign effectively and efficiently as well as will speed up the whole campaign planning process, so there will not be a bigger time gap with the product launch, which of course will be an advantage if a company is competing heavily with its competitors. As advertising has been described briefly, specifically, next section will discuss on Social Network Advertising, and how in fact it has shown to be a new form of Internet Advertising, emerged due to the rise of social networking websites phenomenon. Literatures found on both Social Network Advertising and Internet Advertising is presented together in the section. 2.2.2. Social Network Advertising Companies have been investing in Internet presence management since past decade. Since the first banner advertisement was appeared, Internet advertising has evolved dramatically (Adams, 1995). Internet Author: A. Yudhokesumo________________________________________________ ________________ 25 Faculty of Economics and Business: Universiteit van Amsterdam advertising is treated widely as “any forms of commercial content available on the Internet, and it can be delivered via any channel, in any form, and provides information at any degree of depth”. The commercial content is what businesses want to inform consumers about (Schlosser, Shavitt & Kanfer, 1999). Unlike traditional one-way advertisements, Internet advertising allows consumers to take active role in marketing communications. According to Schlosser (1999) Internet Advertising has the following benefits: Information richness: With the Internet, the advertising message can contain more content-rich product information, not just one short, memorable message as traditional advertisements do. Ease of updating: Updating online information is less costly, quicker and easier than maintaining traditional advertisements. Brand information: Internet advertisements can contain more brandrelevant information for building brand image, such as trivia about the company and details about the sponsored organizations. Data collection: Online advertisers can easily gather information of their consumers’ activities without expensive cost, such as consumer reactions to current products and advertisements. Global exposure: Because the Internet reaches audiences worldwide, online advertisers can respond to this global accessibility easily. Customization: The nature of Internet allows consumers to choose advertising information that they want to obtain. For example, consumers can decide whether the information should be displayed in textual, graphic, video or auditory, and whether a product demonstration or detailed product description is used. Author: A. Yudhokesumo________________________________________________ ________________ 26 Faculty of Economics and Business: Universiteit van Amsterdam Enhance customer-company relations: Internet advertisements can be applied as a customer service vehicle. For instance, relationships can be enhanced through reducing purchase uncertainty, through online product trials or demonstrations, by providing online technical support. Role-playing: It is more persuasive to encourage consumers to generate arguments about product through role-playing in interactive games and contests. Purchase facilitation: Since Internet advertisements provide easy access for consumers to get details of product and to purchase, it also creates the opportunity for the ultimate in impulse buying. Other forms of Internet presence that companies have been investing are social network marketing. Social network marketing or social level marketing is “an advertising method that makes use of social network service and to increase their web presence (Wikipedia, 2009)”. This ranges from simply advertising directly on social networking sites, viral marketing that spreads throughout the web, email, and word of mouth, or providing niche social networking sites focused around the item being advertised. This thesis was initially attempted to research the effectiveness or the efficiency of advertising placed on the social networking sites, or may else be known better as Social network advertising. Besides one that was available from Wikipedia, there may have been another solid and more reliable precise definitions for Social Network Advertising from articles and literatures of academics that the researcher has not found yet, but surprisingly there were not many available. Author: A. Yudhokesumo________________________________________________ ________________ 27 Faculty of Economics and Business: Universiteit van Amsterdam This is understandable considering that Social Networking Websites are a quite new phenomenon and academics eyeballs have not looked there until recent years. There was no precise definition yet of Social Network Advertising given by Laudon and Traver (2008) on their book, but instead, they showed a number of different forms of online advertisement, as in the following part: Display ads (Banners and pop-ups) Rich media and video ads Search engine advertising In-game ads Social network, blog and game advertising Sponsorship Referrals (affiliate relationship marketing) E-mail Marketing Online Catalogs As seen above, social network advertising is a form of online advertising or Internet advertising. Laudon and Traver’s (2008) definition of online advertising or Internet advertising was “a paid message on a Web site, online service, or other interactive medium”. A “working” definition found from Wikipedia (2008) on Social Network Advertising was “a term that is used to describe a form of online advertising that focuses on social networking sites”. In addition, Wikipedia (2008) showed a more specific three major classifications of Social Network Advertising that are currently used. They were described and given the examples as following: Author: A. Yudhokesumo________________________________________________ ________________ 28 Faculty of Economics and Business: Universiteit van Amsterdam Direct Advertising that is based on one’s network of friends This can be the most effective format but also causes the most controversy. An example for this is the “Facebook’s Beacon Project” as it is shown in Figure 2.3 below. Based on an action taken by a person or friend, namely “Thi” as shown below, in his network. Thi’s friend might see a message in their “news feed” (which usually provided in most social networking sites) or in Thi’s “home” profile page, saying for example, Thi has just bought or reviewed or added to her wish list, a particular product from a particular shop. This can be an extremely effective mode as often people make decisions to purchase something or do something based on their close group of friends. However, there is also a lot of controversy surrounding this as it can be considered exploiting the personal relationships, which raises privacy concerns. Figure 2.3 Example of Facebook Beacon Project Advertising on Facebook Source: www.facebook.com (2009) Direct Advertising placed on social networking site As it is shown next on Figure 2.4, this is a more traditional form of web advertising. Just like banner ads on many other sites, this is a similar concept, except on a social networking site. One can see these, for example, as a brick in the top right of Facebook pages, or as a banner Author: A. Yudhokesumo________________________________________________ ________________ 29 Faculty of Economics and Business: Universiteit van Amsterdam on the right side of Facebook profiles (as shown on figure 2.4) and so on. The upside here is that these social networks can take advantage of demographic data on social network users’ profile and hence target the ad directly to the correct demographic market. Figure 2.4 Example of Banner advertisement on Facebook (bottom right) Source: www.facebook.com (2009) Indirect Advertising by creating “groups” or “pages” and “applications” or “gifts” An excellent way for companies to build a community around their product or service is to create a group representing it. This is an innovative marketing technique in which a company will create a “page” or “group” that users can choose to join. Some of the features that a group has are a discussion board, a “wall,” posted items (great place to post links) and the possibility to upload videos and pictures. They will use this group or page to build up subscribers or “fans” and use this to market a contest, introduction, discussion or review of a product, or simply just to increase brand awareness. These groups can quickly grow in numbers of subscribers and fans and become a very effective and interactive marketing communication tool. The downside of “page” or “group” is that since the communication flow on this medium is twoway, sometimes companies could not control the conversations traffic 30 Author: A. Yudhokesumo________________________________________________ ________________ Faculty of Economics and Business: Universiteit van Amsterdam within the group. Some might have a positive view towards the company or the brands, but some others might also have negative perceptions. That is why there have been emerging services provided by advertising agencies to deal with this problem. After hired, these advertising agencies will then provide companies with “ghost” consumers that will act as another customer and counter the negative communication flows on the page. Besides groups and pages, there are also “applications” and “gifts”. “Applications” are an innovative advertising in which companies create an application that users can play or interact with in different ways. As in “gift”, companies create their virtual product that can be sent by one user to another, and some of them are free while some others require credits purchase, which are not free. These gifts can be used to increase brand or product awareness. For an example, on figure 2.5 next is shown an example of The New York Times newspaper’s “page” on Facebook, on figure 2.6 is shown an example of Pizza hut’s ordering “application” on Facebook, and chocolate and candy “gifts” by different companies. Important to be noted, some of these new advertising methods on Facebook such as “page” and “gifts” may not require any cost at all. Author: A. Yudhokesumo________________________________________________ ________________ 31 Faculty of Economics and Business: Universiteit van Amsterdam Figure 2.5 Example of Facebook “groups” or “page” form of advertisement Source: www.facebook.com (2009) Figure 2.6 Pizza Hut’s “application” (left) and variety of “gifts” (right) on Facebook Source: www.facebook.com (2009) Having mentioned all the evidences earlier, from this point forward it is important to note that Social network advertising in this thesis will be referred to as “any paid form of communication placed on social networking websites, either direct or indirect, paid or free, that attempts to increase brand/product knowledge or awareness or persuade potential customers to purchase or to consume more of a particular brand of product or service”. Furthermore, a Author: A. Yudhokesumo________________________________________________ ________________ 32 Faculty of Economics and Business: Universiteit van Amsterdam study done by Wind & Todi (2008) proposed three criteria of advertising campaigns on social networks that need to be fulfilled in order to be successful. These criteria were concluded, based on the findings of the study. These criteria were described as following: It has to be unobtrusive: The inception of the Internet saw the first iteration of online advertising in the form of pop-up ads: these opened new browsing windows flashing advertisements that would distract users from optimally experiencing the website. However, consumer preferences saw increasing means to combat unwanted advertising. The advent of the pop-up blocker, which prevented any pop-up ads from opening on computers, forced advertisers to rethink their tactics. Thus, there has been a trend towards online advertising becoming less obtrusive and more integrated with the look of the page. It has to be creative: Advertising on social networks has to avoid the usage traditional forms of online advertising, such as text-based ads and banner ads, in order to reach out to users. Social network website users are increasingly ignoring these forms of advertising as they reiterate similar messages and detract from usage experiences. In order to attract attention, companies need to deliver their message in imaginative ways that have never been done before. They should take advantage of the structure of social networks, such as applications on Facebook, and the easy sharing between parties in order to spread awareness among users. It has to engage users: Social network websites have empowered users and allowed them to be creative. The technology behind the Author: A. Yudhokesumo________________________________________________ ________________ 33 Faculty of Economics and Business: Universiteit van Amsterdam websites has enabled its users to fully display their unique personalities online. Companies can harness this expression of creativity by engaging the users in the advertising process themselves through social networks. This will give users a greater sense of involvement with established brands, eventually identifying themselves with the companies. Even if the advertisements do not harness users‟ creativity, they should encourage user participation and involvement in order to develop a closer relationship The two key elements of web 2.0 are the rapid growth of usergenerated content and the use of Internet for socializing and sharing. With such enormous numbers of users participating in those social networking sites, it is more likely that marketers and advertisers are happy with the prospect of dominating this new audience. Evidently, Microsoft for example who purchased an interest in Facebook, and Google who purchased from Youtube (Laudon and Traver, 2008), suggest the excitement in the marketing community for the potential of social networking. Despite in the past, major brands have been reluctant to risk advertising on content they cannot control, it seems that now they are beginning to experiment with a number new of formats. Other social networks websites such as Youtube may offer advertisers all the new formats found on portal and search sites including banner ads (the most common), short pre-roll and post-roll ads before a video, and sponsorship of content (Laudon and Traver, 2008). Although still in its infancy, social networking advertising is the largest and fastest growing form of social marketing, generating $900 Million in Author: A. Yudhokesumo________________________________________________ ________________ 34 Faculty of Economics and Business: Universiteit van Amsterdam revenue for 2007 (eMarketer, 2007d). In 2008, all forms of social marketing are expected to generate $1 billion in revenues, and it is expected those revenues will double each year until 2011 (eMarketer, 2007). In addition, as seen on Figure 2.6 (eMarketer, 2008) below, the worldwide spending social network advertising are also expected to grow until 2011. Figure 2.6 Worldwide online social network advertising Source: www.emaketer.com There are a number of different types of social networks sites from general purpose like MySpace to niche networks of professionals and hobbyists, to sponsored networks created by firms. However, most of advertising action centers on the leading sites-MySpace ($525 million), Facebook ($125 million) and Youtube ($200 million). These leading sites account for 94% of social network advertising (eMarketer, 2007d). In the longer term of the next five to ten years, with the current trends, it is likely that social networking websites will have the most audience shares, being a dominance amongst other advertising platforms. Author: A. Yudhokesumo________________________________________________ ________________ 35 Faculty of Economics and Business: Universiteit van Amsterdam 2.3. Measuring advertising (communication) result. The main idea for this thesis was initially built up based on the researcher’s intention to study the communication result, the effectiveness and/or efficiency of social network advertising, an emerging method of advertising which uses social networking websites as new advertising medium. Therefore, this section will discuss further on the subject. Good planning and control of advertising depend on measures of advertising effectiveness and efficiency. However, many marketing managers believe that it is almost impossible to measure what they are getting for their advertising spending (Kotler, 2003). According to Jay Forrester as quoted by Kotler (2003) in his book, probably no more than 1/5 of 1% of total advertising expenditure is used to achieve an enduring understanding of how to spend another 99.8%. There are many ways of evaluating communication result/advertising effectiveness and efficiency as suggested by scholars and academics. Some of them as proposed by Kotler (2003) are by doing a communication-effect research and a sales-effect research. Sales-effect research or research of sales effect affected by advertising, is generally harder to measure than its communication effect (Kotler, 2003). In this method, researchers try to measure the sales impact through analyzing either historical or experimental data. The historical approach involves correlating past sales to past advertising expenditures using advanced statistical techniques. And the experimental approach can be examined by using different variables experimentally. Sales are influenced by many factors, such as product’s features, price, availability, as well as competitor’s action. The fewer or more controllable these other factors are, Author: A. Yudhokesumo________________________________________________ ________________ 36 Faculty of Economics and Business: Universiteit van Amsterdam the easier it is to measure its effect on sales. The sales impact is the easiest way to measure in direct marketing situations, and unfortunately is the hardest way to measure brand or corporate image-building advertising (Kotler, 2003). In addition, due to limitations of time and the researcher’s ability to collect genuine valid data (such as official sales and expenditures reports) from companies, which is also usually confidential for outsiders. Therefore this method is unfortunately will not be adopted in this research. Furthermore, the second advertising effectiveness research method proposed by Kotler (2003), Communication-effect research, seeks to determine whether an advertisement is communicating effectively or efficiently. There are three major methods of communication effect research as proposed by Kotler (2003). These three methods are as following: Consumer feedback method asks consumers for their reactions to advertisements. Portfolio tests ask consumers to view or listen to a portfolio of advertisements, taking as much time as they need. Consumers are then asked to recall all the ads and their content. Recall level indicates an advertisement’s ability to stand out and to have its message understood and remembered. Laboratory tests use equipment to measure physiological reactions to an advertisement. These physiological reactions are including heartbeat, blood pressure, pupil dilation, galvanic skin response, and perspiration, or consumers may be asked to turn a knob to indicate their moments-to-moment liking or interest while viewing sequenced material. Author: A. Yudhokesumo________________________________________________ ________________ 37 Faculty of Economics and Business: Universiteit van Amsterdam In addition, when conducting a communication effect research to evaluate advertising efficiency, Kotler (2003) suggested the following measure that can be taken into considerations: Advertising cost per thousand target buyers reached by media vehicle. Percentage of audience who noted, saw, or associated and read most of each advertisement Consumer opinions on the advertisement’s content and effectiveness. Measures of consumers’ attitudes. Number of inquiries stimulated by the ad Cost per inquiry. The fourth point suggested by Kotler (2003) above, a way of evaluating advertisement efficiency could be done by measuring the consumers’ attitudes themselves. Many scholars have related attitude meant here to different objects, such as to product (Kotler, 2003), brand (Mittal, 1990), advertisement (Muehling, 1987), (Sandage & Leckenby, 1980), buying or purchasing (Phau & Leng, 2008) (Amoroso & Hunsinger, 2009). Some other researchers as well have investigated consumer’s attitudes toward various media as advertising mediums, such as VCR (Lee & Katz 1993), television (Alwitt & Prabhaker 1992; Speck & Elliot, 1997), radio (Somasundaran & Light, 1991; Speck & Elliot, 1997), print (Haller 1974; Somasurandaran & Light; Speck & Elliot, 1997), Internet (Ducoffe, 1996; Brackett & Carr, 2001), mobile phones (Tsang, 2004), cinema (Philips & Noble, 2007), Web and email (Wang, 2007). Author: A. Yudhokesumo________________________________________________ ________________ 38 Faculty of Economics and Business: Universiteit van Amsterdam Moreover, proponents of the traditional hierarchy framework claim that audiences of advertising and other marketing communications respond to those messages in a very ordered way, which are Cognitively (thinking) first, Affectively (feeling) second, and Conatively (doing) (Barry & Howard, 1990) or behaviorally third. Lavidge & Steiner (1961) posited the most often cited model of advertising hierarchy of effect (Figure 2.8). These writers may believed that advertising was an investment in a long-term process that moved consumers over time through a variety of step-stair stages, beginning with product unawareness and moving to ultimately to actual purchase. Figure 2.8 Hierarchy of Effects model Source: (Robert J. Lavidge & Gary A. Steiner, 1961) As also can be seen from figure 2.8, the impact of advertising can be ascertained from cognitive, affective and conative dimensions (Hutchinson & Alba, 1991), because it is logical to assume that the impact of advertising should be measured along with these elements. For example, cognitive measures are used to determine the ability of an advertisement, or physical product, or other marketing stimulus to attract attention/interest, create Author: A. Yudhokesumo________________________________________________ ________________ 39 Faculty of Economics and Business: Universiteit van Amsterdam positive attitudes towards the advertisement, and ultimately generate product knowledge. Affective measures are used to identify either established or created attitudes from marketing or advertising stimulus, and attitude toward the brand (Brand attitude) serves as a commonly used effectiveness measure (Fazio, Powell & Williams, 1989). Likewise, conative measures are used to anticipate a response behavior resulting from marketing or advertising activities. They generally involve some type of behavior intention, such as searching for additional information or buying/purchase (Brucks, 1985). Hierarchy of effects model shown just now will be the fundamental basis for the elements investigated in this research, namely consumers’ attitude toward advertisement and attitude toward brand (Brand attitude). To understand more about attitude, in the next section, theory and literature about attitudes will be presented first. 2.3.1. Consumers’ Attitudes Many things may influence a person’s buying behavior (as shown in figure 2.7 next), including a person’s own characteristics. And within own characteristics there are another four influencing factors, which includes psychological. This psychological influence is also divided into four major factors: motivations, perception, learning, and attitudes (Kotler, 2003). Attitude is an important concept in research on marketing and information systems. Fishbein (1967) defined an attitude as “a learned predisposition of human beings”. Based on this predisposition, an individual would respond to an object (or an idea) or a number of things (or opinions). According to Kotler (2003), an attitude is “a person’s enduring favorable or unfavorable Author: A. Yudhokesumo________________________________________________ ________________ 40 Faculty of Economics and Business: Universiteit van Amsterdam evaluations, emotional feelings, and action tendencies toward some object or idea”. People have attitudes toward almost everything, and attitudes put them into a frame of mind of liking or disliking an object, moving toward or away from it. Attitudes lead people to behave in a fairly consistent way toward similar objects. People do not have to interpret and react to every object in a fresh way, because attitudes economize on energy and thought, and they are difficult to change (Kotler, 2003). Figure 2.7 Model of buyer behavior Source: Kotler (2003) According to Zheng (1994), attitude is “an individual’s subjective property”. We can regard it as a construct, categorize it, quantify it, and compare it between consumers. Generally, one attitude and another are independent. However, elements that construct an attitude are relevant (Zheng, 1994). Attitude scales are developed by social psychologists and consumption psychologists apply the attitude scales on marketing sales. To measure attitudes, numbers present everyone’s attitudes and differences between everyone’s attitudes. Zheng (1994) stated four methods to measure Author: A. Yudhokesumo________________________________________________ ________________ 41 Faculty of Economics and Business: Universiteit van Amsterdam attitudes: (1) questionnaires; (2) indirect tests and subjective tests; (3) direct observations; (4) measurement of physical reactions. In addition, there are also four most common attitude scales as mentioned by Zheng (1994): (1) Thurstone Type of Scale; (2) Likert Type of Scale; (3) Semantic Differential; (4) Multi- Attribute Attitude Scales. In this research, as said in the preceding section that the plan for this research was initially built upon the researcher’s idea to study the communication result, the effectiveness and/or efficiency of social network advertising, an emerging method of advertising which uses social networking websites as new advertising medium. Taking on the literatures mentioned earlier (hierarchy of effects) as fundamental basis. Therefore in this thesis, the performance of social network advertising will be analyzed by measuring consumers’ attitudes post to being exposed to social network advertising in their everyday life. In other words, consumers’ attitudes will be the dependent variable investigated here. In addition, consumers’ attitude toward advertising and attitude toward brand (brand attitude) will be taken into account as consumers’ attitudes in the study. First, both attitudes will be described briefly in the next section. Then, definitions of the predictor factors analyzed, together with the hypotheses proposed for this thesis will be delineated. 2.3.1.1. Attitudes toward advertising There is a great body of literature dealing with consumer attitudes toward advertising in general. As defined by Lutz (1985), attitude toward advertising in general is "a learned predisposition to respond in a consistently favorable or unfavorable manner to advertising in general." Prior advertising Author: A. Yudhokesumo________________________________________________ ________________ 42 Faculty of Economics and Business: Universiteit van Amsterdam researches have shown that the effects of advertising activities are influenced by the attitude toward an advertising content, the advertising company or even the applied media (MacKenzie and Lutz, 1989). The emergence of the Internet as a new medium for communication and advertising as well has motivated substantial amount of researches that focus on Internet advertising in the web-based environment. Because of the interactive nature of the Internet, some surveys report that respondents viewed Internet advertising as more informative and trustworthy than a demographically similar sample found in general advertising (Schlosser, Shavitt, & Kanfer, 1999). Ducoffe (1996) found that informativeness and entertainment are strong portions on Internet advertisement that interviewees indicate. Ducoffe’s model of consumer attitudes toward Internet advertisement showed that informativeness, entertainment, irritation and value of advertisement could affect consumers’ attitudes (Ducoffe, 1996). Schlosser, Shavitt, and Kanfer (1999) few years later then reported that attitudes toward Internet advertising are affected by enjoyment, informativeness, and the ad’s utility for making behavioral (purchasing) decisions. Bracket and Carr (2001) then modified several attitude models of Internet advertising by Ducoffe (1996) and developed an integrated Web advertising attitude model. This Ducoffe’s (1996) new model (figure 2.9) was based on the premise that the perceived message’s content (entertainment, informativeness, irritation, and credibility) of an advertisement affect customer’s perceived value and their attitudes towards the advertising. Besides these four variables of message content, the model also includes relevant demographic variables. Author: A. Yudhokesumo________________________________________________ ________________ 43 Faculty of Economics and Business: Universiteit van Amsterdam Figure 2.9 Message Content Entertainment Informativene ss Irritation Advertisement Value Advertisement Attitudes Credibility Demographic Variables Attitude toward Advertising Model Source: Brackett & Carr (2001), As the predictor factors in the model have developed theoretical orientations that aim to contribute to the understanding of the psychological process underlying attitudes of consumers favoring the contents of advertising in a similar particular medium, which is via Internet. Thus these factors (perceived Entertainment, Informativeness, Irritation, and Credibility of message content) will be included in the predictor factors analyzed in this research. In addition, based on the hierarchy of effects model (Lavidge & Steiner, 1961) that has been described earlier, these factors will also be searched the relationship with attitude toward brand (brand attitude). Hypotheses of the relations of these predictor factors will be proposed after Author: A. Yudhokesumo________________________________________________ ________________ 44 Faculty of Economics and Business: Universiteit van Amsterdam the definitions are presented on the latter section. Furthermore, Lutz (1985) viewed attitude toward advertising in general as being directly influenced by general perceptions of advertising. Previous researchers also considered general perception constructs to be likely antecedents of attitude toward advertising in general. For example, Sandage and Leckenby (1980) proposed that attitude toward advertising consist of two determinants: attitude toward institution of advertising and attitude toward instrument of advertising. In general, institutions may be seen as representing a convention, an arrangement, and a solution to a problem considered important by the society (Sandage & Leckenby, 1980). Here, they measure perceived purpose and role of advertisement whether it is valuable, necessary, or strong (Sandage & Leckenby, 1980). In other words, they wanted to see what the value of advertisement is to the society. In fact, this is similar to Ducoffe’s (1996) definition about “advertisement value” variable shown in the model earlier. Ducoffe (1995) defined advertisement value as “a subjective evaluation of the relative worth or utility of advertising to consumers”. Because of this resemblance, to prevent an overlap, the last variable in the model shown before, advertising value, will be substituted with attitude toward institution of advertising. Meanwhile, concerning the attitude toward instrument of advertising. In Sandage and Leckenby’s study (1980), they used it as a measure of how viewers perceive the execution qualities or techniques used in advertising (Sandage and Leckenby, 1980). However, the previously mentioned, predictor factors of message content (Entertainment, Informativeness, Irritation, and Credibility) have already represented a different ways and techniques of an Author: A. Yudhokesumo________________________________________________ ________________ 45 Faculty of Economics and Business: Universiteit van Amsterdam advertising can be made. And this can definitely cause an overlap between variables asked in the questionnaire. In addition, if we look at it from a logical perspective, an instrument may also represents as how consumers view the medium used for advertising. Along with this, the measurement can also show how they perceive the safety of the medium or how they perceive the comfortableness of being exposed through the medium. Because of the reason, in this study, attitude towards instruments of advertising will be treated as how consumers view social networking websites as advertising instrument. Further explanations and hypothesis for this will be proposed on the latter part together with all predictor variables included. 2.3.1.2. Attitudes toward brand (Brand attitude) If consumers are equally aware of a number of brands in a certain product category, they will base their brand choice on an evaluation of the different brands/companies as well as product/service. The result of this evaluation is called “brand attitude” or otherwise called attitude toward brand. Brand attitude is the perceived value of a brand to a consumer (Pelsmacker, Geuens, & van den Bergh, 2007). Mitchell and Olson (1981) define attitude toward the brand as “an individual internal evaluation of the brand”. Brand attitude is an important communication objective. Because a brand is stronger when the differentiation with another brand is bigger. Brand attitude can be viewed as an extension of brand image in that the term refers not only to thoughts and feelings about the brand but evaluations and, most importantly, predispositions to respond (purchase) (McDowell and Batten, 2005). In other words, although brand image represent what you know and feel about the Author: A. Yudhokesumo________________________________________________ ________________ 46 Faculty of Economics and Business: Universiteit van Amsterdam brand, brand attitude represent ones appraisal to the brand. How strong are their intentions to buy the brand, and so on. In this study, consumers’ attitude toward brand will be included together within the dependent variable analyzed. 2.3.2. Factor definitions and measurements In the previous section, the dependent variable measured in this study has been explained. In the next section, each factor’s definition and measurements will be presented. Hypotheses in regards to the relationship of these factors with the consumers’ attitudes will be proposed in the end, after each factor is delineated. 2.3.2.1. Perceived message contents 2.3.2.1.1. Entertainment Entertainment of advertising information is significantly related to advertising value of traditional advertising (Ducoffe, 1995). Individual’s feelings of enjoyment associated with advertisements strongly influence their attitude toward the advertisement (Shavitt, Lowrey. & Haefner, 1998). Entertainment denotes its full ability to fulfill consumers’ needs for “escapism, diversion, aesthetic enjoyment or emotional release” which can be used to involve customers more deeply and make them more familiar with the advertised service or product (McQuail, 1983). A high degree of pleasure and involvement during interaction with computer-based media leads to concurrent subjective perceptions of positive effect and mood of the consumer (Hoffman & Novak, 1996). An interesting, pleasant and likable advertisement Author: A. Yudhokesumo________________________________________________ ________________ 47 Faculty of Economics and Business: Universiteit van Amsterdam is considered a positive influence (Mitchell & Olson, 1981). Entertainment factor is measured with items like ”entertaining”, “enjoyable”, and “pleasing” (Brackett & Carr, 2001). Entertainment is also crucial factor for social network advertising. It is essential that the message is entertaining, and thus immediately captures online social networkers attention. As most people have a natural playfulness behavior, creating “games”, “applications” or “gifts“ like what some companies had done in Facebook may yield high participation from online social networkers’, because these features can be used to involve customers more deeply and make them more familiar with the advertised service or product. It is therefore can be proposed that: H1a: Entertainment of the message content is positively correlated with consumers’ attitudes. 2.3.2.1.2. Informativeness From a consumer’s point of view, consensus exists with the regard to the ability of advertising to inform consumers of product alternatives so that purchases yielding the greatest possible satisfaction can be made (Ducoffe, 1995). In other words, advertisement should inform the consumers the most complete and accurate information of products so that the consumers can obtain the biggest satisfaction during purchase. Consumers themselves, report that advertising’s ability to supply information is the primary reason for approving it (Bauer & Greyser, 1968). Informativeness is measured with items like “valuable source of information”, “supplies relevant product knowledge”, Author: A. Yudhokesumo________________________________________________ ________________ 48 Faculty of Economics and Business: Universiteit van Amsterdam “provides timely and up-to-date information”, and “a good source of product information”. In any event, consumers of social networking website (online social networkers) are just like other normal consumers that want the advertising content shown to them to be tailored to their interest. On top of this, they are interested in getting messages that are “up-to-date” and relevant to them. Therefore it can be proposed that: H1b: Informativeness of the message content is positively correlated with consumers’ attitudes. 2.3.2.1.3. Irritation When advertising employs techniques that annoy, offend, insult, or are overly manipulative, consumers are likely to perceive it as unwanted and irritating influence (Ducoffe, 1995). Bauer and Greyser (1968) indicated that when the consumers are annoyed and irritated of the advertisement, the efficiency of the advertisement declines. In other words, irritation has negative effects toward advertisement. Irritation scale is measured with items like “insult people’s intelligence”, “too much”, and “irritating” (Brackett & Carr, 2001). Social network advertising may also provide an overwhelmed information that confuses online social networkers and could be distracting. Online social networkers may feel confused about them and react negatively. Another point of possible annoyance like unwanted messages, for example Beacon project by Facebook and spam (sponsored) messages that intrudes online social networkers’ privacy. Therefore, it can be proposed that: Author: A. Yudhokesumo________________________________________________ ________________ 49 Faculty of Economics and Business: Universiteit van Amsterdam H1c: Irritation of the message content is negatively correlated with consumers’ attitudes. 2.3.2.1.4. Credibility Brackett and Carr (2001) added Credibility to the original model by Ducoffe (1996) because of its prevalence as a construct within other models (Shavitt, Lowrey, & Haefner, 1998). Credibility refers to “consumers’ perception of the truthfulness and believability of advertising in general” (MacKenzie and Lutz 1989), whereas Pavlou and Stewart (2000) refer to it as “predictability and fulfillment of implicit and explicit requirements of an (online document) agreement”. Credibility of an advertisement is influenced by different factors, especially by the company’s credibility or the bearer of the message (Goldsmith, Lafferty, & Newell, 2000). Credibility scale was measured with items like “credible”, “trustworthy”, and “believeable” (Brackett & Carr, 2001). In this study, the researcher will assume that credibility of message content will have a positive effect to consumers’ attitudes. Because in social networking websites, there are many unauthorized exposures of “product/brand/company information” that sometimes resembles the contents created by its own producers/manufactures. This could confuse consumers in a way that whether these contents should be trusted or not. So therefore, the more credibility is shaped in an advertisement will make a more positive consumers’ attitudes. H1d: Credibility of the message content is positively correlated with consumers’ attitudes. Author: A. Yudhokesumo________________________________________________ ________________ 50 Faculty of Economics and Business: Universiteit van Amsterdam 2.3.2.2. Attitude toward institution of advertising Prior researches have shown that attitude towards the institution of advertising influence consumers’ attitude toward advertising. Here, they measure the perceived purpose and role of advertisement to the society whether it is useless/valuable; worthless/necessary, or weak/strong are measured (Sandage & Leckenby, 1980). In other words, they wanted to see what the value of advertisement is to the viewers. Values are the basis of actions, attitudes, and judgments in advertising as well as in other aspects of social life (Beatty et al, 1985). Advertising value is defined as “a subjective evaluation of the relative worth or utility of advertising to consumers” (Ducoffe, 1995). Advertising value of web advertising has shown to have a significant influence on attitude toward web advertising (Ducoffe, 1996). In social network advertising, the more a consumer respect and value the act of the purpose and institution of advertising, it will increase their expectation and hence easier to be attracted to the exposure, or even participate like in social network advertising. In other words, when consumers respect the idea of why advertising is made, the more positive they will on their attitudes to advertising. Therefore, it is proposed that: H2: Attitude toward institution of advertising is positively correlated with consumers’ attitudes. 2.3.2.3. Attitude toward instrument of advertising Author: A. Yudhokesumo________________________________________________ ________________ 51 Faculty of Economics and Business: Universiteit van Amsterdam As mentioned before, in this study, attitude toward instrument of advertising may represent how consumers view social networking websites as advertising instrument. It is important to know how consumers value a website as advertising medium. A review of the literature reveals many studies that examine the advertising effectiveness where the Web is involved. Prior researches have suggested that in the case of commercial websites, if a website is well liked, some visitors to the website may be more receptive to the website's contents, including its advertisements. This proposition is further supported by studies conducted by Stevenson, Bruner & Kumar (2000). They suggest that attitude toward the website, which is the instrument of advertising, can be used in conjunction with the advertising hierarchy of effects model to evaluate the effectiveness of online advertisements. Stevenson, Bruner & Kumar’s (2000) measurement for this variable was good/bad, Like/dislike, dangerous/safe. Their findings suggest that attitude toward the website may influence the advertising hierarchy of effects. That is, if a viewer likes the website, he/she may be more receptive to advertisements played from within the website, and deeper processing of the advertisements may occur. Therefore it can be proposed here that: H3: Attitude toward instrument of advertising is positively correlated with consumers’ attitudes. 2.3.2.4. Frequency of advertisement exposure Frequency of advertisement exposure is an important factor that influences the advertising value for the consumer (Haghirian and Dickinger, 2004). Sometimes, marketers think that by aggressively bombarding the market with Author: A. Yudhokesumo________________________________________________ ________________ 52 Faculty of Economics and Business: Universiteit van Amsterdam advertising campaign will reach the highest level of advertising effectiveness. However, conversely Ducoffe (1995) states that informativeness and entertainment of advertising information should decline with repetition because the information will be learned by the audience and thereby lessening its value. As the quantity of message rises, the attitude of the individual towards the promotional vehicle also worsens and leads to tedium from consumers’ point of view (Haghirian and Dickinger, 2004). In this research, it will be investigated the relationship between the frequency of advertisement exposure and consumers’ attitudes as such: H4: Frequency of advertisement exposure is negatively correlated with consumers’ attitudes. 2.3.2.5. Consumers’ demographic backgrounds Besides the above-mentioned influencing factors that are mainly related to the message and its attributes, among different researches, demographic variables that are relevant to the study must be included in order to meet completeness (Lord, Lee, & Saurer, 1995). In examining antecedents of attitudes toward advertising in a particular medium, prior researchers have explored demographic characteristic such as age, and income (Alwitt & Prabhaker, 1992; Speck & Elliot, 1997). Within the model carried out on this thesis, since online social networkers are the unit of analysis, certain of their demographic characteristics such as “age”, and “number of social networking website participation” will be viewed as relevant demographic variables in order to examine whether correlation existed between these demographic Author: A. Yudhokesumo________________________________________________ ________________ 53 Faculty of Economics and Business: Universiteit van Amsterdam variables and consumers’ attitudes. For all demographic variables included, the following hypotheses are proposed: H5a: Age is positively correlated with attitudes toward social network advertising H5b: Number of social network websites participation is positively correlated with attitudes toward social network advertising 2.4. Social Media Social networking websites is just one form of social media that is available today. In order to give better information of the area studied in this research, literatures of Social Media by different sources will be presented. Subsequently, the second part of this section will get in deeper on Social Networking Websites. And the last part of this section will specifically focus on Facebook. According to Wikipedia (2009), Social media are primarily Internet- and mobile-based tools for sharing and discussing information among human beings. The term most often refers to activities that integrate technology, telecommunications and social interaction, and the construction of words, pictures, videos and audio. This interaction, and the manner in which information is presented, depends on the varied perspectives and "building" of shared meaning among communities, as people share their stories and experiences. Businesses also refer to social media as user-generated content (UGC) or consumer-generated media (CGM). An e-book written by Mayfield (2008) suggests that Social media is best understood as a group of new kinds Author: A. Yudhokesumo________________________________________________ ________________ 54 Faculty of Economics and Business: Universiteit van Amsterdam of online media which share most or all of the following characteristics, which are Participation, Openness, Conversation, Community, and Connectedness. Furthermore on his e-book, Mayfield (2008) included the different forms of social media that have been used and available today, It has shown that social networking websites is just one small form of social media. They were discussed as following. Social networking websites: These sites allow people to build personal web pages and then connect with friends to share content and communication. The biggest social networks are Facebook and MySpace (Mayfield, 2008). Blogs: Blogs are online journals, with entries appearing with the most recent first. It is argued by Mayfield (2008) to be the best-known form of social media. Wikis: These websites allow people to add content to or edit the information on them, acting as a communal document or database. The best-known wiki is Wikipedia, the online encyclopedia that has over 2 million English language articles (Wikipedia, 2009). Podcasts: Audio and video files that are available by subscription, through services like Apple iTunes. Forums: Areas for online discussion that often are based around specific topics and interests. Forums came about before the term “social media” and are a powerful and popular element of online communities. Content communities: Communities that organize and share particular kinds of contents. The most popular content communities Author: A. Yudhokesumo________________________________________________ ________________ 55 Faculty of Economics and Business: Universiteit van Amsterdam tend to form around photos (Flicker) and videos (Youtube). Microblogging: Social networking combined with bite-sized blogging, where small amounts of content (‘updates’) are distributed online and through the mobile phone network Twitter (www.twitter.com) social networking website is suggested to be the clear leader in this field. 2.4.1. Social Networking Websites The term social network has been around long before the Internet and popularization of Facebook, Myspace and other popular social networking websites (Yang, 2004). (Offline) Social network involves a group of people, shared social interaction, common ties among members, and people who share an area for some period of time (Hillary, 1955). Social networks do not necessarily have share goals, purposes or intentions. Social networks can be places where people just “hang out”, share space and communicate. Thanks to the rise of Internet, the geographic and time limitations of offline social networks can be removed online today. Laudon and Traver (2008) gave a similar definition of online social network, as “an area online where people who share common ties can interact with one another”. Pew/Internet (2007) defines a social networking site as an online location where a user can create a profile and build a personal network that connects him or her to other users. According to McKinsey (2007), social networking refers to systems that allow members of a specific site to learn about other members’ skills, talents, knowledge or preferences, and according to Boyd and Ellison (2007), social networking sites can be defined as “web-based services that allow individuals to (1) construct a public or semi-public profile within a bounded system, (2) Author: A. Yudhokesumo________________________________________________ ________________ 56 Faculty of Economics and Business: Universiteit van Amsterdam articulate a list of other users with whom they share a connection, and (3) view and traverse their list of connections and those made by others within the system”. There are many types and many ways of classifying social networks and online communities. Lauren and Traver (2008) described a great detail of five generic types of social networks that are classified on the characteristic of the communities involved. They are described and given the examples as following: General network is an online social gathering place to meet and socialize with friends, share content, schedules, and interests. General network communities offer members opportunities to interact with a general audience organized into general topics. Within the topics, members can find hundreds of specific discussion groups attended by thousand of like-minded members who share an interest in that topic. The purpose of general community is to attract enough members to populate a wide range of topics and discussion groups. The business model of general communities is typically advertising supported by selling ad space on pages and videos. Examples of social networking websites who facilitate these communities are MySpace (MySpace, 2008) and Facebook (Facebook, 2008). Practice network is a social network community of professionals and practitioners, creators of artifacts such as computer code or music. Practice network communities offer members focused discussion group, help, information and knowledge relating to an area of shared practice. For instance, Linux.org (Linux, 2008) is a non-profit Author: A. Yudhokesumo________________________________________________ ________________ 57 Faculty of Economics and Business: Universiteit van Amsterdam community for the open source movement, a worldwide global effort involving thousands of programmers who develop computer code for the Linux operating system and share the results freely with all. Other online communities involve artists, educators, art dealers, photographers, and nurses. Practice network can be either profit-based and or nonprofit, and support themselves by advertising or user donations. Interest-based social network is a social network community built around on a common interest, such as games, sports, music, stock, markets, politics, health, finance, foreign affairs, or lifestyle. Interest based communities offer members focused discussion groups based on a shared interest in some specific subject, such as above topics or thousands of other topics. Because the audience for interest communities is necessarily much smaller and more targeted, these communities have usually relied on advertising and tenancy/sponsorship deals. Sites such as E-democracy (E-democracy, 2008), Fool (Fool, 2008), Military (Military, 2008) and Sailinganarchy (Sailing Anarchy, 2008) are all examples of web sites that attract people who share a common pursuit. These sites are usually advertising supported. Affinity network is a social network community of members who selfidentify with a demographic or geographic category. Affinity network communities offer members focused discussion and interaction with other people who share the same affinity. Affinity refers to self- and group identification. Here people can self-identify themselves on the Author: A. Yudhokesumo________________________________________________ ________________ 58 Faculty of Economics and Business: Universiteit van Amsterdam basis of religion, ethnicity, gender, sexual orientation, geographical location and hundreds of other categories. For instance, iVillage (iVillage, 2008), Blackplanet (Blackplanet, 2008), and NaturallyCurly (NaturallyCurly, 2008) are affinity sites designed to attract women. These sites offer women discussion and services that focus on topics such as babies, beauties, books, diet and fitness, entertainment, health, and home and garden. These sites are usually advertising supported by advertising along with revenues from sales of products. Sponsored network is a social network community created by, government, nonprofit and for-profit organizations for the purpose of organizational goals or a variety of purposes. These goals can be diverse, from increasing the information available to citizens; for instance, a local country government site such as Weschester (Westchestergov, 2008), the Web site for Westchester county (New York) government; to a product site such as Tide (Tide, 2008), which is sponsored by an offline branded company (Procter & Gamble). Cisco, IBM, HP and hundreds of other companies have developed their internal corporate social networks as a way of sharing knowledge. Social networkers themselves can be categorized into distinct groups, because social networkers differ in their attitudes to social networking sites and in their behavior while using them. Ofcom’s (2008) research indicated that site users tend to fall into five distinct groups based on their behaviors and attitudes. These were reported as following: Author: A. Yudhokesumo________________________________________________ ________________ 59 Faculty of Economics and Business: Universiteit van Amsterdam Alpha Socialisers – (a minority) people who used sites in intense short bursts to flirt, meet new people, and be entertained. Attention Seekers – (some) people who craved attention and comments from others, often by posting photos and customizing their profiles. Followers – (many) people who joined sites to keep up with what their peers were doing. Faithfuls – (many) people who typically used social networking sites to rekindle old friendships, often from school or university. Functionals – (a minority) people who tended to be single-minded in using sites for a particular purpose. Likewise non-users also appear to fall into distinct groups. These groups are based on their reasons for not using social networking sites (Ofcom, 2008): Concerned about safety – people concerned about safety online, in particular making personal details available online. Technically inexperienced – people who lack confidence in using the Internet and computers. Intellectual rejecters – people who have no interest in social networking sites and see them as a waste of time. Dick Stroud (2008), founder of Internet Strategies, a marketing consultancy, wrote in his paper the five basic functions of a social networking Author: A. Yudhokesumo________________________________________________ ________________ 60 Faculty of Economics and Business: Universiteit van Amsterdam websites, and these functions have become the generic facility that must be provided in order to compete with competing similar sites: Profiles (Public and Private): Profiles are pages that enable individuals and companies to describe themselves. The profile can also contain rich content such as photographs, sound and video. The profiles can be private (only available to approved people); public (available to anybody as well as to search engines); or a combination of the two. Network of Contacts: After joining a social network site, consumers can identify others (individuals, groups or businesses) who are also registered on the site, with whom they can and want to communicate. Messaging: Most social network sites have a mechanism for users to send messages and append content to their friends’ profiles. For registered members of the social network, this can become a replacement for e-mail. Content Sharing: This includes exchanging messages, textual content, photos, music and videos. Add-Value Content: Increasingly, social networking sites are partnering with providers of content and widgets (modules of computer code) to enrich users’ profiles. People create, share and discover new content on their own. They create vibrant and rich cultures across online networks and use the social tools provided to stay connected (Solis, 2008). For the most part, users are involved in two kinds of activities: 1) they create new content by editing their profiles such as adding photos, uploading music, writing blogs and messages or Author: A. Yudhokesumo________________________________________________ ________________ 61 Faculty of Economics and Business: Universiteit van Amsterdam providing other digital content, or 2) users browse through profiles consuming content created by others such as looking at pictures, downloading music, reading blogs and messages or accessing other digital content. In summary, social networking sites are large collections of changing profiles and emerging connections (Trusov, Anand, Bodapati & Bucklin, 2006). Figure 2.10 Launch dates of major social network sites Source: Boyd & Ellison (2007) Author: A. Yudhokesumo________________________________________________ ________________ 62 Faculty of Economics and Business: Universiteit van Amsterdam Furthermore, numerous social network networking websites have been created, modified, loved and abandoned over the past decade. As seen from figure 2.10, SixDegrees.com was followed by several other major social networking websites, many of which pivoted around communal concepts of race and lifestyle, and included LiveJournal, AsianAvenue and BlackPlanet. Ryze.com was launched in 2001, and promoted both personal and professional links between its registered members. Friendster, LinkedIn, MySpace, Last.fm, Flickr YouTube, and Facebook all appeared within a relatively short period, and all compiled significant user databases. Each of these social networking websites swiftly developed unique senses of community, with Friendster hugely popular amongst younger users, MySpace virtually embodying the trials and tribulations of new bands, and Flickr attracting aspiring photographers from around the world. 2.4.2. Facebook This thesis tries investigate the consumers perception of advertising forms placed on social networking websites, specifically Facebook social networking website. Therefore, this section will focus thoroughly on Facebook. First, relevant information found about Facebook on its website (www.facebook.com) as well as a quite brief historical backgrounds of the company will be presented. Then, the latter part will briefly present the reasons for selecting Facebook in this study. Facebook is a free-access social networking website that is operated and privately owned by Facebook Inc, and was founded by Mark Zuckerberg on February 2004 (Facebook, 2009). Facebook is a social utility that helps Author: A. Yudhokesumo________________________________________________ ________________ 63 Faculty of Economics and Business: Universiteit van Amsterdam people communicate more efficiently with their friends, family and coworkers. Users can join networks organized by city, workplace, school, and region to connect and interact with other people. People can also add friends and send them messages, and update their personal profiles to notify friends about themselves. The website's name refers to the paper facebooks depicting members of a campus community that some US colleges and preparatory schools give to incoming students, faculty, and staff as a way to get to know other people on campus. Facebook users may choose to join one or more networks, organized by city, workplace, school, and region. These networks help users connect with members of the same network. Users can also connect with friends, giving them access to their friends' profiles. Facebook was initially designed to enable the creation of college networks only, and was conceived solely for a Harvard-based user-ship. At this stage, individuals had to be in possession of an @harvard.edu email address in order to join. Subsequent to its confinement to the online environs of Harvard, Facebook was eventually granted greater scope for expansion. Beginning with high school students, Facebook was then made available to professionals within corporate networks and, in late 2006, finally released to the global population. As of today, the company claims to have an active user base of over 175 million (users who have returned to the site in the last 30 days) (Facebook, 2009). Facebook Platform is a development platform that enables companies and engineers to deeply integrate with the Facebook website and gain access to millions of users through the social graph. Facebook’s website is free to users, but generates revenue from advertising. With the addition of Facebook Author: A. Yudhokesumo________________________________________________ ________________ 64 Faculty of Economics and Business: Universiteit van Amsterdam applications, gifts, pages and groups gives companies multiple options for targeting users through their advertising campaigns. One of the social network’s greatest strengths to advertisers is the availability of a wealth of information about its users. The website’s structure encourages people to register with their real names and put up relevant personal information such as hometown, favorite books, activities and other demographic information that advertisers thrive on to target consumers. For the purposes of this study, the researcher had decided to use Facebook Social networking website instead of others. The decision of selecting Facebook in this research were based on the following reasons: Reach: As Facebook is the most heavily trafficked website among other social networking websites, making a research on Facebook is more interesting to do. The researcher hoped that the findings of this study would be as interesting it is to others as well as for the researcher. Data Collection: As Facebook is among the most popular social networking websites on the Internet, the researcher expected shortage of information about the website to be less experienced. Business periodicals and research reports detailing website’s operations are expected to be easily available online. Traffic statistics, user base information and other relevant data may not have been easily available for other less popular social networking websites. Moreover, in terms of collecting data from respondents, with the help of “canvas” technology provided by Facebook, the online questionnaire that is actually based on a different server host (www.surveyconsole.com) can be directly Author: A. Yudhokesumo________________________________________________ ________________ 65 Faculty of Economics and Business: Universiteit van Amsterdam pulled and accessed without leaving the Facebook domain (as seen on figure 2.11 next). Therefore, with this approach it is expected that the respondents’ response rate will increase. Figure 2.11 Users’ view on the online questionnaire used in this study (Facebook “canvas” technology) Source: www.facebook.com & www.surveyconsole.com (2009) Customizability: Businesses have a number of ways to develop unique advertising methods on Facebook website. Advertising has more “faces” on Facebook, and thus businesses can advertise through the creation of applications or widgets that can be added to a user’s profile in order to provide them with increased functionality such as entertainment, more information about the user, other customizable advertising methods include Facebook pages/groups, Facebook gifts. Customizability is a large factor in successfully reaching out to users on these websites and less popular social networking websites do not offer this sort of functionality. Furthermore, as said before in the Author: A. Yudhokesumo________________________________________________ ________________ 66 Faculty of Economics and Business: Universiteit van Amsterdam previous point, customizability of the website is also an advantage for the researcher as it will also help the researcher linking the online questionnaire for this thesis to Facebook’s domain. One of the unique features of the Facebook social networking website is that it allows developers to create external application or games or etc (questionnaire in this case), to be accessed directly from the Facebook users’ accounts, although, such applications may actually run on a different server. By means of this, like with Facebook’s “canvas” technology, these applications can be pulled from the host server and shown, enabling users who log in to Facebook to access them without leaving the Facebook domain, which sometimes makes them logged out automatically. Personal Experience: The researcher has been a user of Facebook extensively over a quite long period of time in order to connect with friends, family, and associates. Thus, the researcher was already familiar with most of its features and was able to use some of this knowledge in conducting the research. Furthermore, by being a Facebook user for quite some time, consequently the researcher has made many friends on the platforms. Therefore, the researcher thought this network of friends could be utilized as part of the samples researched in this study, as well as to help the researcher spread out the questionnaires throughout their networks of friends. Author: A. Yudhokesumo________________________________________________ ________________ 67 Faculty of Economics and Business: Universiteit van Amsterdam 3. Methodology 3.1. Type of research In this chapter the research method is explained. For the purpose of this thesis an empirical investigation was conducted to examine how the dependent variable, Consumers’ attitudes, which will be represented by two other variables namely; Attitude towards advertising and Brand attitude (Attitude towards Brand), are affected by the independent variables namely; perceived message contents of social network advertising, which will be represented by Entertainment, Informativeness, Irritation, and Credibility; Attitude toward Institution of social network advertising; and Attitude toward Instrument of social network advertising. Additionally, customer demographic backgrounds such as Age and Frequency of social network advertising exposure, and Social networking websites (SNS) participation will also be analyzed the relationship with the dependent variable. This study was based on survey research so therefore this research employed quantitative research method approach. According to Muijs (2004), quantitative research is used in explaining phenomena by collecting numerical data that are analyzed using mathematically and statistically based methods. The objective of quantitative research is to develop, test and employ mathematical models, theories and/or hypotheses pertaining to natural phenomena (Muijs, 2004) Author: A. Yudhokesumo________________________________________________ ________________ 68 Faculty of Economics and Business: Universiteit van Amsterdam 3.2. Hypotheses and conceptual model Next are presented the summary of hypotheses proposed in this thesis based on the research questions and relevant literatures mentioned in preceding chapter, and then followed by the conceptual model shown in figure 3.1 which can be formed when integrating these hypotheses. H1: Message content affects consumers’ attitudes. H1a: Entertainment of the message content is positively correlated with consumers’ attitudes. H1b: Informativeness of the message content is positively correlated with consumers’ attitudes. H1c: Irritation of the message content is negatively correlated with consumers’ attitudes. H1d: Credibility of the message content is positively correlated with consumers’ attitudes. H2: Attitude toward institution of advertisement is positively correlated with consumers’ attitudes. H3: Attitude toward instrument of advertisement is positively correlated with consumers’ attitudes. H4: Frequency of advertisement exposure is negatively correlated with consumers’ attitudes. H5: Consumer demographic backgrounds affect consumers’ attitudes. H5a: Age of the consumer is positively correlated with consumers’ attitudes. Author: A. Yudhokesumo________________________________________________ ________________ 69 Faculty of Economics and Business: Universiteit van Amsterdam H5b: Number of social networking website participation is positively correlated with consumers’ attitudes Figure 3.1 Message Content - Entertainment -Informativeness -Irritation -Credibility Institution of advertisement H1 H2 Consumers’ attitudes Instrument of advertisement Frequency of advertisement exposure H3 H4 - Attitude toward advertisement - Attitude toward brand (brand attitude) H5 Consumers’ demographic -Age -Number of SNS participation Conceptual model of the research framework Author: A. Yudhokesumo________________________________________________ ________________ 70 Faculty of Economics and Business: Universiteit van Amsterdam 3.3. Data collection This research primarily used survey method, comprised of a questionnaire instrument consisting variables shown in the conceptual model before: Consumers attitude (attitude toward advertising, Attitude toward brand), Entertainment, Informativeness, Irritation, Credibility, Attitude toward the institution of advertisement, Attitude toward instrument of advertisement, Frequency of advertising exposure, Age, and Social networking websites (SNS) participation (please see appendix A). All of these items are assessed with a 5-point Likert-type ordinal scale ranging from “strongly disagree/very unlikely” (1) to “strongly agree/very likely” (5). The first 12 questions were related to how social network advertising’s message contents (entertainment, informativeness, irritation, and credibility) have been perceived by consumers, which are online social networkers in this case. Question 13th until 15th were related to how consumers perceive the institution of social network advertising. Question 16th to 18th were related to how consumers perceive the techniques and instruments used in social network advertising. Question 19th was aimed to provide answers on how often have these consumer been exposed with the social network advertising. Question 23rd and 24th were related to provide consumers’ level of agreement with how social network advertising has influenced consumers’ attitudes, namely attitude toward advertising and attitude toward brand. And the last 3 questions were aimed to Author: A. Yudhokesumo________________________________________________ ________________ 71 Faculty of Economics and Business: Universiteit van Amsterdam provide consumer’s demographic backgrounds (gender, age, number of social networking websites participation). Since the samples analyzed were consumers’ of social networking websites, which are online social networkers, therefore the data collection took place through the use of an online questionnaire (please see appendix A), with a paid subscription to www.surveyconsole.com that could be accessed by following a web link, and this link were informed of its existence to respondents by sending message or email to them. In addition, thanks to “canvas” technology provided by Facebook, in order to get a high response rate, the online questionnaire was directly linked to Facebook website so that respondents did not have to leave the Facebook domain page when they were asked to fill the questionnaires. Respondents were chosen among members of Facebook social networking website, however, not all of them would be chosen randomly due to some of Facebook’s privacy restriction settings facility that enable users the ability to control message to be sent or email address to be shown or not, if one is not “connected” with another person within their network of friends. Consequently, the researcher had selected many convenient and accessible samples from his network of friends on Facebook as well as randomly through friends of friends on Facebook (Convinience snowball probability sampling method) (Kotler, 2003). Although sample size for this research was targeted to be around 150 to 200 (Fowler, 2002), however, an email invitation initially was already sent to 200 Facebook members to ask for their participations. Hence the final numbers of respondents were expected to Author: A. Yudhokesumo________________________________________________ ________________ 72 Faculty of Economics and Business: Universiteit van Amsterdam grow higher since the researcher had also asked many of his network of friends on Facebook to help spread the questionnaires. 3.4. Data analyses In order to achieve the purposes of this research and test the hypotheses, the following data analyses were conducted using SPSS analytical statistics software for Windows version (version 15.0). In addition, before starting the analyses, 7 new variables were created on the base of scale items used in the questionnaire, they are; Consumers’ attitudes as dependent variable, and Entertainment, Informativeness, Irritation, Credibility, Attitude Institution and Attitude Instrument as independent variables. Next, in the first section is presented the descriptive analyses of the collected respondents. The second part will be discussed the reliability analysis of the scales used in the model. The results of correlation and regression analyses as well as the relevance with the hypotheses being tested are presented in the last part. 3.4.1. Descriptive analyses Descriptive statistics provide information regarding the sampling structure and basic characteristics of the subjects. Before going further, a brief investigation concerning the initial descriptive of the samples collected in this study will be made (see appendix B). In this study, 241 questionnaires were retrieved, in which 209 questionnaires were valid. The researcher had to Author: A. Yudhokesumo________________________________________________ ________________ 73 Faculty of Economics and Business: Universiteit van Amsterdam remove them because most of them were incomplete and thus would cost more errors if they were put together. From the frequencies, it is known that out of a total of 209 valid respondents who participated in this study, there were 128 male and 81 female respondents, which accounts to about 61.2% and 38.8%. Moreover, all respondents are in age between 16 to 46 years old, with a strong 59.8% are between 26-35 years old, other 33% are between 16 to 25 years old, while the rest 7.2% are between 36 to 46 years old. In addition, most of respondents participate in 2 to 3 social networking websites (about 64.1%), and about 46.9% of respondents encounter advertisements on social networking websites almost everyday to everyday (mean = 3.35, std. deviation = 1.470). 3.4.2. Reliability analyses Reliability is a measure of whether the scales used are reliable or not. Reliability analysis can be used to construct reliable measurement scales, to improve existing scales, and to evaluate scales already in use (Saunders, 2007). In this research, reliability analyses were performed to test the reliability of scales and items used in the model. Any variables having more than one item to represent their existence will be tested the reliability, and the minimum accepted Cronbach’s Alpha should not be below 0.6. Otherwise, the scales used may be considered unreliable to describe or represent the existence of a variable (Saunders, 2007). There are 7 variables that were tested the reliability, they were; “Consumers’ attitudes”, “Entertainment”, “Informativeness”, “Irritation”, “Credibility”, Attitude Institution”, and “Attitude Instrument”. In the reliability test Author: A. Yudhokesumo________________________________________________ ________________ 74 Faculty of Economics and Business: Universiteit van Amsterdam of the dependent variable, the 2 items scale used to represent the Consumers’ attitudes were reliable with the Cronbach’s Alpha of 0.752. Thus, no further improvement for this variable was needed. As for the independent variables, the first reliability test to Entertainment, the Cronbach’s alpha showed a score of 0.720, which means that no items needed to be deleted. There’s a chance, however, that the Cronbach Alpha would have grown to 0.801 if one of the item were deleted, which is entertainment2 (Please see appendix B). But the initial score of 0.720 has already showed that no further improvements needed to be made to this variable. Thus, all the 3 items used to describe Entertainment will still be included. The next independent variable, Informativeness, the reliability test showed a value for Cronbach’s Alpha of 0. 741. Thus, no further improvements needed to be made for the 3 items used to describe Informativeness variable. The third independent variable, Irritation, the reliability test for 3 items used in the scale, showed a value for Cronbach’s Alpha of 0.553. However, when checking the Cronbach’s Alpha if item deleted row (please see appendix B), it seems that no improvements could be made since deleting any item would have lowered the Cronbach’s Alpha too. Therefore, although this value of 0.553 was considered exhaustive, the variable would still be included because it is the same important predictor as well as like the other variables that are included in the model, which needed to be searched the relationship with the dependent variable. Author: A. Yudhokesumo________________________________________________ ________________ 75 Faculty of Economics and Business: Universiteit van Amsterdam The fourth independent variable, Credibility, the reliability test showed a value for Cronbach’s Alpha of 0.781. Thus, no improvement needed to be made for the 3 items used in the scale. The fifth independent variable, Attitude Institution, the reliability test showed a value for Cronbach’s Alpha of 0.788, and no items should be deleted to increase the value. Therefore, no further improvements were made to the 3 items used in the scale. The last independent variable needed to be checked the reliability, Attitude Instrument, the reliability test showed a value for Cronbach’s Alpha of 0.825. An improvement (to Cronbach’s Alpha = 0.829) could be made if the third item (attitude instrument3) was deleted. However, as it has been explained before that a least minimum value of Cronbach’s Alpha is 0.6, therefore, the initial value of 0.829 is considered very reliable, and thus, no further improvements needed to be made to the 3 items used by the variable. 3.4.3. Correlations and Regressions analyses 3.4.3.1. Correlations Correlation is a measure of association between variables. Despite that in correlations, the variables are not designated to be the independent nor the dependent variable, however, the researcher will try this approach as the first resort. In addition, the researcher has noticed some references (Statsoft, 2009; Wikipedia, 2009) that suggested the proper correlation technique should be just between 2 variables. But when the researcher tried to compare the results, between when having only two and having more than two variables in the SPSS calculation, the output showed a completely identical Author: A. Yudhokesumo________________________________________________ ________________ 76 Faculty of Economics and Business: Universiteit van Amsterdam result. Therefore in this part, the correlation analyses were employed to all variables mentioned (more than 2 variables at once) to speed up the process. Correlations were attempted few times to investigate the relationship of the included variables. Correlation Coefficient will be used to indicate the relationship between variables. Spearman’s technique correlation coefficient was applied since all variable have ordinal data. In the first attempt, when having Consumers’ attitudes together with all the other mentioned independent variables namely; Entertainment, Informativeness, Irritation, Credibility, Attitude Institution, Attitude Instrument, Frequency of exposure, Age, and SNS Participation, the table of correlation shows that Entertainment (correlation coefficient = 0.525), Informativeness (correlation coefficient = 0.613), Irritation, (correlation coefficient = -0.283), Credibility (correlation coefficient = 0.500), Attitude Institution (correlation coefficient = 0.588), Attitude Instrument (correlation coefficient = 0.551), and SNS participation (correlation coefficient = 0.190), are correlated to Consumers’ attitudes at a (significance level of 0.01). Furthermore, given that Consumers’ attitude is represented by another two variables, Attitude toward advertising and Brand attitude, therefore another correlations were attempted to those variables. In the second correlation attempt, when having Attitude toward advertising together with the previous mentioned Independent variables, the table of correlation showed the same results that Entertainment (correlation coefficient = 0.4990), Informativeness (correlation coefficient = 0.510), Irritation (correlation coefficient = -0.270), Credibility (correlation coefficient = 0.488), Attitude Institution (correlation coefficient = 0.468), Attitude Instrument (correlation Author: A. Yudhokesumo________________________________________________ ________________ 77 Faculty of Economics and Business: Universiteit van Amsterdam coefficient = 0.495), and SNS participation are correlated to Attitude toward advertising (at a significance level of 0.01). In the last correlation attempt, when having Attitude toward Brand together with all the previous mentioned Independent variables, the table of correlation also showed the same result as before where Entertainment (correlation coefficient = 0.426), Informativeness (correlation coefficient = 0.573), Irritation (correlation coefficient = -0.228), Credibility (correlation coefficient = 0.394), Attitude Institution (correlation coefficient = 0.584), Attitude Instrument (correlation coefficient = 0.469), and SNS participation (correlation coefficient = 0.168) are correlated to Attitude toward Brand (at a significance level of 0.01). Up till this point, these correlations may have shown rather absurd results and rather too broad and general to be interpreted. Therefore, another approach must be employed in order to generate better results and implications for the study. In order to do that, instead of using correlations to investigate relationships, Baron and Kenny (1986) suggested another approach, which is through the use of regression analysis. Regression coefficients are not affected by the differences in the variances of the independent variable of difference in the measurement error in the dependent variable. The regression analyses are presented next. 3.4.3.2. Regression Analyses Regression analysis is the analysis of data aimed at discovering how one or more independent variables affect dependent variable (Ashish, Sen, Srivastava, 1990). In this research, multiple regressions were conducted to examine of the variables mentioned. The general purpose of multiple Author: A. Yudhokesumo________________________________________________ ________________ 78 Faculty of Economics and Business: Universiteit van Amsterdam regressions is to learn more about the relationship between several independent or predictor variables and a dependent variable (Ashish, Sen, Srivastava, 1990). Customarily, the degree to which two or more predictors (independent or X variables) are related to the dependent (Y) variable is expressed in the Correlation Coefficient (R), which is the square root of Rsquare. In multiple regression, R can assume values between 0 and 1. To interpret the direction of the relationship between variables, one looks at the signs (plus or minus) of the regression or B coefficients. If a B coefficient is positive, then the relationship of this variable with the dependent variable is positive. If the B coefficient is negative then the relationship is negative. Of course, if the B coefficient is equal to 0 then there is no relationship between the variables (Statsoft, 2009). Moreover, the R-square (R2) or Coefficient of Determination value is an indicator of how well the model fits the data. An Rsquare close to 1.0 indicates that almost all of the variability with the variables specified in the model has been accounted (Statsoft, 2009). Multiple regressions were performed between all independent variables, namely Entertainment, Informativeness, Irritation, Credibility, Attitude toward Institution of advertising, Attitude toward Instrument of advertising, Frequency of advertising exposure, Age, and number of social networking websites (SNS) participation) on one dependent variable, Consumers’ attitudes. Given that Consumers’ Attitudes investigated were Attitude towards Advertising and Attitude towards Brand. Respectively, all independent variables were regressed as well with both attitudes. The first regression where using Consumers’ attitudes as dependent variable, the analysis output showed that Consumer Attitudes as dependent Author: A. Yudhokesumo________________________________________________ ________________ 79 Faculty of Economics and Business: Universiteit van Amsterdam variable could be modeled using the parameter used in this model. The model was significant at confidence level of 95% (significance of the model less than 0.05), has a Correlation Coefficient (R) of 0.724, a Coefficient Determination or R-squared (R2) value of 0.524, and adjusted R square of 0.503. Moreover, this output could determine the significant independent variables of this model, which can explain the dependent variable (Consumers’ attitudes) as much as 50.3%. Those significant independent variables are; Entertainment (significance = 0.000); Informativeness (significance = 0.002); Credibility (significance = 0.043); Attitude Instrument (significance = 0.004). When the next multiple regression was performed, where the nonsignificant variables were ignored and only the significant independent variables as well as the dependent variable were included in the model, the result was still significant at confidence level of 95% (significance of the model is less than 0.05). The model has a correlation coefficient (R) of 0.704, and has a coefficient determination (R2) of 0.495. This confirms the model for Consumer Attitudes as dependent variable as follows: Consumer Attitudes = -0.025(0.227) + [Entertainment]*0.217(0.063) + [Informativeness]*0.316(0.068) + [Credibility]*0.172(0.074) + [Attitude Instrument]*0.288(0.076) Coefficientsa Model 1 (Constant) Entertainment Informativeness Credibility Attitude Instrument Unstandardized Coefficients B Std. Error -.025 .227 .217 .063 .316 .068 .172 .074 .288 .076 Standardized Coefficients Beta .205 .304 .146 .241 t -.111 3.415 4.663 2.337 3.807 Sig. .912 .001 .000 .020 .000 a. Dependent Variable: Consumers Attitudes Author: A. Yudhokesumo________________________________________________ ________________ 80 Faculty of Economics and Business: Universiteit van Amsterdam Since the model shows positive correlation of the significant independent variables to the dependent variable Consumer Attitudes, this means that the more Entertainment, Informativeness, Credibility, and Attitude Instrument are emphasized; the effect on Consumer Attitude will also be higher. The plot between predicted Consumer Attitudes versus observed Consumer Attitudes can be seen in Figure 3.2 next. Figure 3.2 Consumers Attitudes 5 4 3 2 1 1 2 3 4 5 Predicted Consum ers Attitudes Data plot between observed consumers attitudes and predicted consumers attitude after the exposure of social network advertising The second multiple regression, when using Attitude towards advertising as dependent variable, the analysis output again showed that Attitude towards advertising could also be modeled using the parameter used in this model. The model was significant at confidence level of 95%, has a correlation coefficient (R) of 0.662, R-squared value of 0.438, and adjusted R square of 0.413. The output could determine the significant variables of this model, which can explain the dependent variable (Attitude toward advertising) as much as 41.3%. In this model, the significant independent variables are; Author: A. Yudhokesumo________________________________________________ ________________ 81 Faculty of Economics and Business: Universiteit van Amsterdam Entertainment (significance = 0.000); Credibility (significance = 0.007); Attitude Instrument (significance = 0.005); and Frequency of exposure (significance = 0.035). Again when another multiple regression was performed to test the significant independent variables (the non variables were not included in the model), the output still showed that the model was still significant at confidence level of 95%. The model has a correlation coefficient (R) of 0.630, and has a coefficient determination (R2) of 0.408. This verify the model for Attitude towards (social network) advertising as dependent variable as follows: Attitudes towards Advertising = -0.421 (0.298) + [Entertainment]*0.392(0.074) + [Credibility]*0.332(0.089) +[Attitude Instrument]*0.322(0.094) + [Frequency of exposure]*0.075(0.036) Coefficientsa Model 1 (Constant) Entertainment Credibility Attitude Instrument Frequency of exposure Unstandardized Coefficients B Std. Error -.421 .298 .392 .074 .332 .089 .322 .094 .075 .036 Standardized Coefficients Beta .323 .245 .234 .114 t -1.410 5.329 3.737 3.438 2.050 Sig. .160 .000 .000 .001 .042 a. Dependent Variable: atttitude toward advertising Since the model shows positive correlation of the significant independent variables to the dependent variable, Attitude toward Advertising, this means that the more Entertainment, Credibility, Attitude Instrument, and Frequency of exposure are stressed; the effect on Attitude towards Advertising will also be higher. Author: A. Yudhokesumo________________________________________________ ________________ 82 Faculty of Economics and Business: Universiteit van Amsterdam When performing multiple regression with the last model set, where using Attitude towards Brand as dependent variable, the analysis output showed that Attitude toward Brand could be modeled using parameter used in this model. The model was significant at confidence level of 95%, has a correlation coefficient (R) of 0.655, a R-squared value of 0.430, and adjusted square of 0.404. This output determines that the significant independent variables of this model, which can explain the dependent variable as much as 40.4%. The significant independent variables in this model are; Entertainment (significance = 0.008); Informativeness (significance = 0.001); and Attitude Instrument (significance 0.050). Once more when another multiple regression was performed, where the non-significant variables were not included in the model, the model has a correlation coefficient (R) value of 0.639 and coefficient determination (R2) of 0.409 (confidence level 95%). This confirms the model for Attitude toward Brand as dependent variable as follows: Attitude towards Brand = 0.203 (0.265) + [Entertainment]*0.325(0.325) + [Informativeness]*0.371(0.080) + [Attitude Instrument]*0.213(0.088) Coefficientsa Model 1 (Constant) Entertainment Informativeness Attitude Instrument Unstandardized Coefficients B Std. Error ,203 ,265 ,325 ,100 ,371 ,080 ,213 ,088 Standardized Coefficients Beta ,251 ,330 ,165 t ,764 3,239 4,613 2,427 Sig. ,445 ,001 ,000 ,016 a. Dependent Variable: attitude toward brand Since the model shows positive correlation of the significant independent variables to the dependent variable, Attitude toward Brand, this Author: A. Yudhokesumo________________________________________________ ________________ 83 Faculty of Economics and Business: Universiteit van Amsterdam means that the more Entertainment, Informativeness, and Attitude Instrument; the effect on Attitude towards Advertising will also be higher. In summary, in the first multiple regression that uses Consumers’ attitudes as dependent variable, with an adjusted R square of 0.503, the significantly affecting variables are Entertainment (significance = 0.000); Informativeness (significance = 0.002); Credibility (significance = 0.043); Attitude Instrument (significance = 0.004). The second multiple regression, that uses Attitudes towards Advertising as dependent variable, with an adjusted R square of 0.413, the significantly affecting variables are Entertainment (significance = 0.000); Credibility (significance = 0.007); Attitude Instrument (significance = 0.005); and Frequency of exposure (significance = 0.035). The last multiple regression, that uses Attitudes towards Brand as dependent variable, with an adjusted R square of 0.406, the significantly affecting variables are Entertainment (significance = 0.008); Informativeness (significance = 0.001); and Attitude Instrument (significance 0.050). Author: A. Yudhokesumo________________________________________________ ________________ 84 Faculty of Economics and Business: Universiteit van Amsterdam 4. Results, Discussions and Implications 4.1. Results, discussions and implications This research analyze the factors that influence consumers’ attitudes towards advertising and brand attitude, in which will determine the consumers’ attitudes change. Based on the analyses results on the previous chapter, the table 4.1 next summarizes the findings of this research. Table 4.1 Entertainment Informativeness Credibility Attitude towards Instrument Frequency of Exposure Consumers’ Attitudes sig = 0.000 sig = 0.002 sig = 0.043 sig = 0.004 XXXX Attitude towards Advertising sig = 0.000 XXXX sig = 0.007 sig = 0.005 sig = 0.035 Brand attitude sig = 0.008 sig = 0.001 XXXX sig = 0.050 XXXX Table 4.1 Summary of regression analyses results The first part of hypothesis one (H1a), concerning the presence of entertainment factor in social network advertising’s message contents on consumers’ attitudes, is supported. In fact, Entertainment has positive effect Author: A. Yudhokesumo________________________________________________ ________________ 85 Faculty of Economics and Business: Universiteit van Amsterdam also on both consumers’ attitudes variables investigated, namely attitude towards advertising and brand attitude, In this research, an entertaining, enjoyable and pleasing will have positive effects on all attitudes investigated. These findings are line with Ducoffe’s (1996), Brackett & Carr’s (2001) studies, in which they propose that a high degree of pleasure and involvement during interaction with advertising media play the greatest role for the overall attitudes toward them, and that leads to concurrent subjective of positive effects and mood of the consumer. The same relationship between entertainment and consumers’ attitudes, particularly attitudes towards advertising also occur now here in the study of social network advertising. An interesting implication can be proposed here is when online advertising is enriched with entertaining elements, it achieves more positive evaluation by recipients and leads to higher intention to revisit the homepage than the websites without entertainment features. In leading social networking websites such as Facebook, companies are allowed link applications to the website. As far as the researcher has seen, many companies have taken this chance, and they have managed to execute it successfully. New forms of “discrete” advertisements are developed in Facebook, from the classic Pepsi game advertising to pizza hut application ad, which amazingly connects also to their delivery call center. This means that big rooms of innovations opportunities are called to advertisers together with IT developers to creatively expand more advertisements formats that will emphasize more element of entertainment in social networking websites. The second part of the first hypothesis (H1b), regarding the influence of Informativeness in the social network advertising’s message contents on Author: A. Yudhokesumo________________________________________________ ________________ 86 Faculty of Economics and Business: Universiteit van Amsterdam consumers’ attitudes, is supported. The results also indicate a positive effect on brand attitude, although however, showed otherwise on their attitudes towards advertising. This finding is inconsistent with what Ducoffe (1996) and Bracket & Carrs’s studies, which showed that informativeness factor is positively related to consumers’ attitude towards advertising. Additionally, this finding adds to the knowledge of current literature, that if an advertisement provides timely and up-to-date information about products/services features or sales available on the marketplace, it seems to have a positive effect on the their brand attitude. Drawn from there, an interesting implication can be suggested for marketing managers or advertiser companies. When the major decisions of advertising program are being developed, company is well advised to first identify what are their advertising objectives. If indeed the objective is to persuade consumers about purchasing and repeating purchase, then emphasizing the informativeness element within an advertising message can result to a higher effectiveness. Informativeness here has proven to trigger ones appraisal to the brand, and thus increasing of their attitude towards buying the brand (brand attitude). The third part of hypothesis one (H1c), in which the irritation factor in the social network advertising’s message contents is being investigated the influence on consumers’ attitudes, is not supported. The result shows that Irritation is not positively correlated neither negatively on consumers’ attitudes. The same findings are also found on its influence to attitudes towards advertising and brand attitude. These findings are in contrary to the findings of prior scholars researches (Ducoffe, 1996; Brackett & Carr, 2001). In the context of web-based advertising reactance, consumers tend to avoid Author: A. Yudhokesumo________________________________________________ ________________ 87 Faculty of Economics and Business: Universiteit van Amsterdam websites that show interrupting advertisements (like pop ups). The perception of intrusiveness, however, can be decreased if the advertisements are relevant to the receiver or if they provide a certain level of value to the recipient. And It seems as if social network advertising has designed new possible array set of information that are more relevant and acceptable, so therefore consumers somewhat do not see social network advertising as form of irritation, insult or overwhelmed (too much) exposures as such like before with other advertising mediums. This could be due to Facebook’s system that enables advertisements to be targeted demographically according to the desired group, and therefore the relevancy of the advertisement is becoming higher. Moreover, perhaps this is because it is not a secret anymore that many business models, including ones on social networking websites use advertising to support their operating costs in order to maintain free memberships to their users. This emerging knowledge might have shifted the consumers’ attitudes, and as a result, consumers are more willing to accept the existence of advertising in social networking websites. An interesting implication for this is that this condition has actually created a win-win situation for all participating sides (users, social networking websites and advertisers). Advertisers must take advantage of this and always be optimistic and creative in making new formats of advertising, and expand the ad portfolio that eventually will be successful in attracting the consumers. Irritation is not a big of a deal of intrusion to consumers as long as it can give a certain value of something to them, or a relevant information needed by the consumer. Author: A. Yudhokesumo________________________________________________ ________________ 88 Faculty of Economics and Business: Universiteit van Amsterdam The last part of the first hypothesis (H1d), where credibility of social network advertising’s message content is being analyzed the effect on consumers’ attitudes, is supported. However, the result shows that credibility only has positive effect on attitudes towards advertising, and not to brand attitude. These findings are coherent with prior researches and literatures (Ducoffe, 1996; Bracket & Carr, 2001), which suggest that credibility of an advertisement would create a positive influence towards the advertisement itself. Another implication can be proposed based on this finding in this research. Credibility is based on the extent to which both marketer and advertisers have the expertise to build a trust in an advertisement. Building this trust is a process that involves technology and company’s credibility to be incorporated together in the medium. In social networking websites, as for example with Facebook that enables the creation of “groups”, “page” and “fan”, which enable companies to put their (mini) website in a (Facebook) website, companies can easily create the feel of trust, and generally the better the appearance would increase better sense of trustworthiness in the eyes of the consumers. On the other hand, one of the downside of social network advertising, or on a bigger scale, the Social media, is that sometimes companies could not control what information is distributed there. Because in social media, the users can also be the advertisers, and when they had an unpleasant past experience with an organization/product/service before, they would also tend to not support the company/products’ successfulness, and thus might spread a demoting “word of “clicks” within the medium based on their own freewill. Author: A. Yudhokesumo________________________________________________ ________________ 89 Faculty of Economics and Business: Universiteit van Amsterdam The second hypothesis (H2), concerning consumers’ attitude toward institution of advertisement, or other meant in this research as how high is social network advertising’s value to consumers, has influence on consumers’ attitudes, is not supported. Additionally, the factor does not show a positive as well as a negative effect on two other attitudes investigated (attitudes towards and brand attitude). This finding is in inconsistent with prior scholar researches (Ducoffe, 1996; Bracket & Carr, 2001), which showed a relationship between value and attitude in web advertising. On the other hand, the frequency analysis table (appendix B) shows that consumers had given good scores about advertising value. All three variable indicators used to express advertising institution value indicated that as much as 41% to 45% samples, of which more less about 32%-41% were neutral, had agreed about the institution of social networking advertising is strong, valuable to them, and thus the needs for its establishment is necessary. The third hypothesis (H3), regarding consumers’ attitude toward instrument of advertising, or other meant in this research as how consumers view social networking websites as advertising instrument, is supported. In fact, consumers’ attitude toward advertising has both positive effects on attitudes towards advertising and brand attitude. In this research, it seems that when the instruments or techniques used in an advertisement is good, the medium is liked, and the security is safe, it will have a positive influence on their attitudes (more than 43% samples agreed). These findings are consistent with Sandage & Leckenby (1980), Chen & Well’s (1999) studies, which suggest that advertising instruments (Web sites) and techniques influence brand attitude and attitude toward advertising in general. The Author: A. Yudhokesumo________________________________________________ ________________ 90 Faculty of Economics and Business: Universiteit van Amsterdam interesting implication here is, how an advertisement in social networking websites can be tailored to what the advertisers want the advertisements to be targeted to, or how company’s actual website can be “pulled” (linked and canvassed) directly into the social networking websites, as such it is applicable in Facebook. As explained before, it is like having a mini website in a (social networking) website, or, more extremely explained as having a new Worldwide Web in a (social networking) website. On the other hand, it is rather regrettable that this research did not really look into more important determinants of an effective successful website (such as page loading speed, navigation efficiency, security, etc (Gehrke & Turban, 1999), because frankly the research thought that he did not want to go into (computer) technical matter that involves another area of study that was not his (such as Computer science or IT). Otherwise this research would have proposed better implications for this particular predictor cause investigated. Nevertheless, it is already proven here that advertising’s instrument/media or techniques will be positively associated with the change of consumers’ attitude, in which of course (consumers’ attitude) can become the barometer for the effectiveness of an advertisement. Another conclusion that can be drawn from the last two hypotheses discussed here (H3 & H4) is that, it seems in this research the samples have more positive attitude toward advertising’s instrument used rather than its institutional value. This means that a good social networking website will have better chance to get more positive reactions from consumers than other non-popular and less liked social networking websites. This is in contrary to what Sandage & Leckenby (1980), and Muehling’s Author: A. Yudhokesumo________________________________________________ ________________ 91 Faculty of Economics and Business: Universiteit van Amsterdam (1987) studies, in which in their research, the samples have more favorable attitudes towards the institutional value rather than the instruments used. The fourth hypothesis (H4), in regards to how social network advertising’s frequency of exposure is related to consumers’ attitudes, is not supported, and the same result is also found on its influence on the brand attitude. However, when observing its influence on attitude toward advertising, the factor is significantly related. Apparently, a high frequency of exposure does not reflect negatively in consumers’ attitude towards social network advertising. This finding is in conflict with Ducoffe’s (1996) study that assumes consumers who are confronted with ads repeatedly are less informed or less attracted since they are already familiar with the content. The interesting implication here is that, this will reduce advertiser’s confusion about running advertising campaign excessively in a medium. This suggests that as long as the patrons accept an advertisement (in terms of accepting the other factors such as entertainment, informativeness, credibility, etc), it will create a certain value to consumers, thus will not become an unwanted intrusion to them. The fifth hypothesis (H5), regarding to how consumers’ demographic backgrounds; age (H5a) and SNS participation (H5b) are associated to consumers attitudes, the results show neither one of the factor is positively or negatively correlated to all attitudes observed, namely; consumers’ attitudes, attitudes towards advertising, and brand attitude. This confirms that hypotheses H5a and H5b are not supported. These findings are consistent with Bracket & Carr’s (2001) study that presented evidence about how age did not have an influence on consumers’ attitude towards social network advertising. On the other hand, regarding the number of social network Author: A. Yudhokesumo________________________________________________ ________________ 92 Faculty of Economics and Business: Universiteit van Amsterdam websites (SNS) participation, another interesting implication can be proposed here. Since participating in more social networking websites does not have any influence consumers’ attitude, therefore advertisers should not be wasting their marketing funds on running their ad campaigns in too many social networking websites. The best solution proposed here is perhaps by carefully selecting SNS that has more number of members, which usually can be easily identified through a minor facts and figures research on the Internet. Additionally, since different SNS might also posses different sociodemographic groups of members, therefore advertisers companies are well advised to carefully selecting which SNS has the groups they really desire. In conclusion, this thesis has resulted interesting findings for the study of new hot topic subject, Social Network Advertising. Suggestions for implications are applicable, especially for advertising agencies and companies who plan to advertise in social networking websites respectively. Firstly, for advertising agencies who wish to increase the effectiveness of advertising program that they will create. In this research, it is proven that in social network advertising, by emphasizing the Entertainment and the Credibility elements within the message content of an advertisement will create a positive consumers attitude towards the advertising. In addition, the frequency of advertisement exposure as well as the selection of medium in terms of how good, likeable, and how safe the advertising medium is, will have a positive effect too towards the ad. This is of course, however, if the level of advertisement’s entertainment and credibility elements are high enough, and thus the acceptableness. Additionally, the research predicts that this approach will be successful if the advertising goal is subjected on a longer-term basis, Author: A. Yudhokesumo________________________________________________ ________________ 93 Faculty of Economics and Business: Universiteit van Amsterdam like for example to increase consumers’ attitudes towards advertising in general and reduce their skepticism, create more awareness, or just to remind consumers about own product/brand (like Coca-cola). On the other hand, the second implication to marketing managers and advertising companies who wish to increase the effectiveness of their ad campaign on a shorter-term base, which means that the advertising objective is to persuade purchase or stimulate purchase over promotion or sales. It has been proven in this research Entertainment and Informativeness factors within an advertising message content play a dominant role on consumers’ attitude towards the brand, or other meant in this research as Brand Attitude. In addition, better and safer social networking websites are more likeable, and therefore it is a crucial part in determining a successfulness of an advertisement. Hence it is well-advised that companies and advertising agencies should carefully design their advertising message to stress on the Entertainment and Informativeness aspects and also plain their social network advertising campaigns to run on a more popular social network websites. 4.2. Limitations and further research The purpose of this study was to investigate what factors affect the change in consumer attitudes’ in the exposure of advertisements on social networking websites. Although this research was based on real-world data, the study has certain limitations. First, due to limitations of time, budget as well as access and connectivity to a broader samples, this study was mainly focused on Facebook’s social networking website members, and additionally the researcher did not randomly select participants. This may have created Author: A. Yudhokesumo________________________________________________ ________________ 94 Faculty of Economics and Business: Universiteit van Amsterdam sampling biases. In addition, different social networking website owns different demographic groups of samples that would have also formulated different outcome of results. As a consequence, one of the main issues of this research is how far the findings could be generalized to the entire population of consumers, which in this case are online social networkers in the entire Social Networking Websites (SNS), or the Internet. Secondly, there are many more of predictor causes that the research have not thought of yet, and the fact that not all discovered variables have not been measured along within the predictor variables in this research might have resulted a further limitation to the findings presented, which will also be the first suggestion for future research. Suggestions for future research based on the limitations identified in this study are proposed. First, different advertising mediums may possess different predictor variables that will define the effectiveness of an advertisement. Additionally, different fields of study may examine different predictor aspects that determine the successfulness of the aimed objectives. Variables such page loading speed, navigation efficiency, security, and other computer science related literature, should be measure along with model used here. Moreover, the scope of research should be broaden in the next event, in which samples will be taken from more types of social networking websites, such as Youtube, MySpace, Twitter, LinkedIn, and many more, to examine the difference or to make a generalization of the response. Moreover, leading social networking websites such as Facebook, Myspace, Twitter, etc have started to create mobile (phone) applications, which allow their users to log in to their accounts more easily. Although those mobile Author: A. Yudhokesumo________________________________________________ ________________ 95 Faculty of Economics and Business: Universiteit van Amsterdam applications do not expose advertisement as much like it is in normal computers (because these mobile devices are portable thus have more usage limitations), however, as the market has responded quite good to these mobile applications, therefore It is interesting to apply the model used in this study in order to investigate and compare the results. It is not a surprise if the future direction of social network advertising will be through mobile devices (Mobile Social Network Advertising). New portable devices such as iPhone, iPod Touch and etc, is just a small beginning of something way bigger in the future. 4.3. Managerial Contributions Social networking websites are changing the way companies develop advertising on the Internet. This study offers a clear explanation of the main aspects that should be stressed and emphasized in designing advertisements especially on social networking websites, and to avoid elements that might generate a decline in consumers’ interests and attitudes post to the exposure of an advertisement. Moreover, the findings of this thesis have provided some have provided interesting contributions for both researchers and practitioners. Researcher may find that the model used in this study is fairly a good predictor of consumers’ attitude study. Practitioners may use the findings in this research to better design marketing and advertising program with social networking websites that can create positive attitudes and avoid possible damaging effects. Author: A. Yudhokesumo________________________________________________ ________________ 96 Faculty of Economics and Business: Universiteit van Amsterdam References Literature Adams, M., “Brands of gold”, Mediaweek, 5(43), 30-32, 1995 Adam N. 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Yudhokesumo________________________________________________ ________________ 103 Faculty of Economics and Business: Universiteit van Amsterdam Appendix A: Questionnaire Hello participants, You are invited to spend a few minutes to complete the questionnaire. Please be assured that your personal information and answers would be kept anonymous, confidential and will only be revealed for academic purpose. Please take the time to fill out this questionnaire as truthfully and as accurately as possible. Your response would make a great contribution to this research. I am deeply appreciative to your kind cooperation. The purpose of this academic survey is to study the area of social network advertising, an emerging method of advertising that uses social networking websites as advertising medium. In this survey, you will be presented with statements and questions regarding your views of social network advertising, particularly on Facebook. It is important to keep in mind that what being examined here are your perceptions of all forms of advertisements exposed on Facebook social networking website (such as sponsored banners, sponsored pages, sponsored applications, sponsored games, sponsored gifts, or etc), and not just a particular form of advertisement from a particular organization. Please answer each statement by selecting the option that best reflects your degree of agreement or disagreement with that statement. You are free to choose from the following answers: Author: A. Yudhokesumo________________________________________________ ________________ 104 Faculty of Economics and Business: Universiteit van Amsterdam 1 Strongly disagree / very unlikely / very… (-) 2 Disagree / unlikely / … (-) 3 Neither agrees nor disagrees / neither likely nor unlikely / Neither… nor … / undecided 4 Agree / likely / … (+) 5 Strongly agree / very likely / very… (+) 1. Advertisements on social networking websites are often entertaining. 2. Sometimes contents of advertisements are more enjoyable than other contents available in social networking websites. 3. Advertisements on social networking websites are pleasing 4. Advertisements on social networking websites are valuable sources of information about sales. 5. Advertisements on social networking websites contribute to the knowledge about which brands have the features you are looking for. 6. Advertisements on social networking websites provide timely and up-todate information on products/services available in the marketplace. 7. Advertisements on social networking websites are irritating. 8. Sometimes advertisements on social networking websites insult people’s intelligence. 9. There is too much advertisement on social networking websites. 10. Advertisements on social networking websites are credible. Author: A. Yudhokesumo________________________________________________ ________________ 105 Faculty of Economics and Business: Universiteit van Amsterdam 11. Advertisements on social networking websites are trustworthy. 12. How likely are you to believe the information/facts shown in most advertisements on social networking websites? How would you rate the institution/establishment of social network advertising? 13. 1. Very weak 2. Weak 3. Neither weak nor strong 4. Strong 5. Very strong 14. 1. Very Worthless 2. Worthless 3. Neither worthless nor valuable 4. Valuable 5. Very valuable Author: A. Yudhokesumo________________________________________________ ________________ 106 Faculty of Economics and Business: Universiteit van Amsterdam 15. 1. Very useless 2. Useless 3. Neither useless nor necessary 4. Necessary 5. Very Necessary How would you rate the instruments/techniques used in social network advertising? 16. 1. Very bad 2. Bad 3. Neither bad nor good 4. Good 5. Very good. 17. 1. I hate it 2. I dislike it 3. Neither dislike/like it 4. I like it 5. I Love it Author: A. Yudhokesumo________________________________________________ ________________ 107 Faculty of Economics and Business: Universiteit van Amsterdam 18. 1. Very Dangerous 2. Dangerous. 3. Neither Dangerous nor safe. 4. Safe. 5. Very safe. 20. How likely is social network advertising, to have a positive impact to your attitude toward advertising in general? 21. How likely is social network advertising, to have a positive impact to your attitude toward the brands/companies or products/services advertised? Author: A. Yudhokesumo________________________________________________ ________________ 108 Faculty of Economics and Business: Universiteit van Amsterdam What is your gender? 1. Male 2. Female How old are you? 1. 15 years old and younger 2. 16 to 25 years old 3. 26 to 35 years old 4. 36 to 46 years old 5. More than 46 years old How often do you encounter advertisements on social networking websites? 1. Not often (once a month) 2. Once a week 3. Sometimes (once in every 2-3 days) 4. Everyday 5. Very often (more than few times everyday) How many social networking websites do you participate in? Author: A. Yudhokesumo________________________________________________ ________________ 109 Faculty of Economics and Business: Universiteit van Amsterdam 1. 1 2. 2 3. 3 4. 4 5. More than 5 Appendix B: SPSS Output Descriptive statistics Descriptives Author: A. Yudhokesumo________________________________________________ ________________ 110 Faculty of Economics and Business: Universiteit van Amsterdam Descriptive Statistics N atttitude toward advertising attitude toward brand Entertainment1 Entertainment2 Entertainment3 Informativeness1 Informativeness2 Informativeness3 Irritation1 Irritation2 Irritation3 Credibility1 Credibility2 Credibility3 Attitude Institution1 Attitude Institution2 Attitude Institution3 Attitude Instrument1 Attitude Instrument2 Attitude Instrument3 Frequency of exposure Gender Age SNS Participation Valid N (listwise) Minimum Maximum Mean Std. Deviation 209 1 5 2,95 ,967 209 209 209 209 209 209 209 209 209 209 209 209 209 209 209 209 209 209 209 209 209 209 209 209 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 2 4 5 3,22 2,99 2,87 2,87 3,35 3,28 3,52 3,41 3,09 3,55 2,98 2,78 2,77 3,28 3,36 3,34 3,40 3,07 3,16 3,35 1,39 2,74 2,52 ,910 1,019 1,034 ,926 1,000 1,034 ,966 ,911 ,931 ,919 ,762 ,822 ,963 ,816 ,849 ,846 ,855 ,869 ,729 1,470 ,488 ,580 1,165 Frequencies Frequency Table Author: A. Yudhokesumo________________________________________________ ________________ 111 Faculty of Economics and Business: Universiteit van Amsterdam atttitude toward advertising Valid 1 2 3 4 5 Total Frequency 14 54 77 57 7 209 Percent 6,7 25,8 36,8 27,3 3,3 100,0 Valid Percent 6,7 25,8 36,8 27,3 3,3 100,0 Cumulative Percent 6,7 32,5 69,4 96,7 100,0 attitude toward brand Valid 1 2 3 4 5 Total Frequency 6 42 68 85 8 209 Percent 2,9 20,1 32,5 40,7 3,8 100,0 Valid Percent 2,9 20,1 32,5 40,7 3,8 100,0 Cumulative Percent 2,9 23,0 55,5 96,2 100,0 Entertainment1 Valid 1 2 3 4 5 Total Frequency 15 59 53 77 5 209 Percent 7,2 28,2 25,4 36,8 2,4 100,0 Valid Percent 7,2 28,2 25,4 36,8 2,4 100,0 Cumulative Percent 7,2 35,4 60,8 97,6 100,0 Entertainment2 Valid 1 2 3 4 5 Total Frequency 17 71 49 67 5 209 Percent 8,1 34,0 23,4 32,1 2,4 100,0 Valid Percent 8,1 34,0 23,4 32,1 2,4 100,0 Cumulative Percent 8,1 42,1 65,6 97,6 100,0 Author: A. Yudhokesumo________________________________________________ ________________ 112 Faculty of Economics and Business: Universiteit van Amsterdam Entertainment3 Valid 1 2 3 4 5 Total Frequency 13 63 75 55 3 209 Percent 6,2 30,1 35,9 26,3 1,4 100,0 Valid Percent 6,2 30,1 35,9 26,3 1,4 100,0 Cumulative Percent 6,2 36,4 72,2 98,6 100,0 Informativeness1 Valid 1 2 3 4 5 Total Frequency 8 39 50 95 17 209 Percent 3,8 18,7 23,9 45,5 8,1 100,0 Valid Percent 3,8 18,7 23,9 45,5 8,1 100,0 Cumulative Percent 3,8 22,5 46,4 91,9 100,0 Informativeness2 Valid 1 2 3 4 5 Total Frequency 8 49 45 90 17 209 Percent 3,8 23,4 21,5 43,1 8,1 100,0 Valid Percent 3,8 23,4 21,5 43,1 8,1 100,0 Cumulative Percent 3,8 27,3 48,8 91,9 100,0 Informativeness3 Valid 1 2 3 4 5 Total Frequency 5 31 49 99 25 209 Percent 2,4 14,8 23,4 47,4 12,0 100,0 Valid Percent 2,4 14,8 23,4 47,4 12,0 100,0 Cumulative Percent 2,4 17,2 40,7 88,0 100,0 Author: A. Yudhokesumo________________________________________________ ________________ 113 Faculty of Economics and Business: Universiteit van Amsterdam Irritation1 Valid 1 2 3 4 5 Total Frequency 2 32 76 76 23 209 Percent 1,0 15,3 36,4 36,4 11,0 100,0 Valid Percent 1,0 15,3 36,4 36,4 11,0 100,0 Cumulative Percent 1,0 16,3 52,6 89,0 100,0 Irritation2 Valid 1 2 3 4 5 Total Frequency 6 54 75 64 10 209 Percent 2,9 25,8 35,9 30,6 4,8 100,0 Valid Percent 2,9 25,8 35,9 30,6 4,8 100,0 Cumulative Percent 2,9 28,7 64,6 95,2 100,0 Irritation3 Valid 1 2 3 4 5 Total Frequency 1 30 60 89 29 209 Percent ,5 14,4 28,7 42,6 13,9 100,0 Valid Percent ,5 14,4 28,7 42,6 13,9 100,0 Cumulative Percent ,5 14,8 43,5 86,1 100,0 Credibility1 Valid 1 2 3 4 5 Total Frequency 3 53 100 52 1 209 Percent 1,4 25,4 47,8 24,9 ,5 100,0 Valid Percent 1,4 25,4 47,8 24,9 ,5 100,0 Cumulative Percent 1,4 26,8 74,6 99,5 100,0 Author: A. Yudhokesumo________________________________________________ ________________ 114 Faculty of Economics and Business: Universiteit van Amsterdam Credibility2 Valid 1 2 3 4 5 Total Frequency 10 66 97 33 3 209 Percent 4,8 31,6 46,4 15,8 1,4 100,0 Valid Percent 4,8 31,6 46,4 15,8 1,4 100,0 Cumulative Percent 4,8 36,4 82,8 98,6 100,0 Credibility3 Valid 1 2 3 4 5 Total Frequency 18 71 62 57 1 209 Percent 8,6 34,0 29,7 27,3 ,5 100,0 Valid Percent 8,6 34,0 29,7 27,3 ,5 100,0 Cumulative Percent 8,6 42,6 72,2 99,5 100,0 Attitude Institution1 Valid 1 2 3 4 5 Total Frequency 1 37 81 82 8 209 Percent ,5 17,7 38,8 39,2 3,8 100,0 Valid Percent ,5 17,7 38,8 39,2 3,8 100,0 Cumulative Percent ,5 18,2 56,9 96,2 100,0 Attitude Institution2 Valid 1 2 3 4 5 Total Frequency 1 37 68 92 11 209 Percent ,5 17,7 32,5 44,0 5,3 100,0 Valid Percent ,5 17,7 32,5 44,0 5,3 100,0 Cumulative Percent ,5 18,2 50,7 94,7 100,0 Author: A. Yudhokesumo________________________________________________ ________________ 115 Faculty of Economics and Business: Universiteit van Amsterdam Attitude Institution3 Valid 1 2 3 4 5 Total Frequency 1 32 87 73 16 209 Percent ,5 15,3 41,6 34,9 7,7 100,0 Valid Percent ,5 15,3 41,6 34,9 7,7 100,0 Cumulative Percent ,5 15,8 57,4 92,3 100,0 Attitude Instrument1 Valid 1 2 3 4 5 Total Frequency 1 30 81 79 18 209 Percent ,5 14,4 38,8 37,8 8,6 100,0 Valid Percent ,5 14,4 38,8 37,8 8,6 100,0 Cumulative Percent ,5 14,8 53,6 91,4 100,0 Attitude Instrument2 Valid 1 2 3 4 5 Total Frequency 2 55 90 51 11 209 Percent 1,0 26,3 43,1 24,4 5,3 100,0 Valid Percent 1,0 26,3 43,1 24,4 5,3 100,0 Cumulative Percent 1,0 27,3 70,3 94,7 100,0 Attitude Instrument3 Valid 1 2 3 4 5 Total Frequency 1 28 126 44 10 209 Percent ,5 13,4 60,3 21,1 4,8 100,0 Valid Percent ,5 13,4 60,3 21,1 4,8 100,0 Cumulative Percent ,5 13,9 74,2 95,2 100,0 Author: A. Yudhokesumo________________________________________________ ________________ 116 Faculty of Economics and Business: Universiteit van Amsterdam Frequency of exposure Valid 1 2 3 4 5 Total Frequency 36 23 52 28 70 209 Percent 17,2 11,0 24,9 13,4 33,5 100,0 Valid Percent 17,2 11,0 24,9 13,4 33,5 100,0 Cumulative Percent 17,2 28,2 53,1 66,5 100,0 Gender Valid 1 2 Total Frequency 128 81 209 Percent 61,2 38,8 100,0 Valid Percent 61,2 38,8 100,0 Cumulative Percent 61,2 100,0 Age Valid 2 3 4 Total Frequency 69 125 15 209 Percent 33,0 59,8 7,2 100,0 Valid Percent 33,0 59,8 7,2 100,0 Cumulative Percent 33,0 92,8 100,0 SNS Participation Valid 1 2 3 4 5 Total Frequency 42 69 65 13 20 209 Percent 20,1 33,0 31,1 6,2 9,6 100,0 Valid Percent 20,1 33,0 31,1 6,2 9,6 100,0 Cumulative Percent 20,1 53,1 84,2 90,4 100,0 Author: A. Yudhokesumo________________________________________________ ________________ 117 Faculty of Economics and Business: Universiteit van Amsterdam Correlation Correlation 1 Nonparametric Correlations Author: A. Yudhokesumo________________________________________________ ________________ 118 Faculty of Economics and Business: Universiteit van Amsterdam Correlations Consumers Informativ Attitude Attitude Frequency of Attitudes Entertainment eness IrritationCredibilityInstitutionInstrument exposure Spearman's rho Consumers Attitudes Correlation Coefficient1,000 ,525** ,613** -,283** ,500** ,588** ,551** ,095 Sig. (2-tailed) . ,000 ,000 ,000 ,000 ,000 ,000 ,172 N 209 209 209 209 209 209 209 209 Entertainment Correlation Coefficient ,525** 1,000 ,516** -,182** ,355** ,421** ,385** -,120 Sig. (2-tailed) ,000 . ,000 ,008 ,000 ,000 ,000 ,083 N 209 209 209 209 209 209 209 209 Informativeness Correlation Coefficient ,613** ,516** 1,000 -,217** ,468** ,676** ,514** ,092 Sig. (2-tailed) ,000 ,000 . ,002 ,000 ,000 ,000 ,187 N 209 209 209 209 209 209 209 209 Irritation Correlation Coefficient -,283** -,182** -,217** 1,000 -,327** -,217** -,233** ,088 Sig. (2-tailed) ,000 ,008 ,002 . ,000 ,002 ,001 ,203 N 209 209 209 209 209 209 209 209 Credibility Correlation Coefficient ,500** ,355** ,468** -,327** 1,000 ,455** ,542** -,030 Sig. (2-tailed) ,000 ,000 ,000 ,000 . ,000 ,000 ,666 N 209 209 209 209 209 209 209 209 Attitude Institution Correlation Coefficient ,588** ,421** ,676** -,217** ,455** 1,000 ,583** ,149* Sig. (2-tailed) ,000 ,000 ,000 ,002 ,000 . ,000 ,031 N 209 209 209 209 209 209 209 209 Attitude InstrumentCorrelation Coefficient ,551** ,385** ,514** -,233** ,542** ,583** 1,000 ,102 Sig. (2-tailed) ,000 ,000 ,000 ,001 ,000 ,000 . ,142 N 209 209 209 209 209 209 209 209 Frequency of exposure Correlation Coefficient ,095 -,120 ,092 ,088 -,030 ,149* ,102 1,000 Sig. (2-tailed) ,172 ,083 ,187 ,203 ,666 ,031 ,142 . N 209 209 209 209 209 209 209 209 Age Correlation Coefficient ,005 ,042 ,030 -,140* ,022 -,034 ,194** ,059 Sig. (2-tailed) ,945 ,544 ,669 ,043 ,752 ,622 ,005 ,398 N 209 209 209 209 209 209 209 209 SNS Participation Correlation Coefficient ,190** ,178** ,218** -,095 ,057 ,192** ,118 -,027 Sig. (2-tailed) ,006 ,010 ,002 ,171 ,416 ,005 ,089 ,697 N 209 209 209 209 209 209 209 209 SNS Age Participation ,005 ,190** ,945 ,006 209 209 ,042 ,178** ,544 ,010 209 209 ,030 ,218** ,669 ,002 209 209 -,140* -,095 ,043 ,171 209 209 ,022 ,057 ,752 ,416 209 209 -,034 ,192** ,622 ,005 209 209 ,194** ,118 ,005 ,089 209 209 ,059 -,027 ,398 ,697 209 209 1,000 ,054 . ,439 209 209 ,054 1,000 ,439 . 209 209 **.Correlation is significant at the 0.01 level (2-tailed). *.Correlation is significant at the 0.05 level (2-tailed). Correlation 2 Nonparametric Correlations Author: A. Yudhokesumo________________________________________________ ________________ 119 Faculty of Economics and Business: Universiteit van Amsterdam Correlations atttitude toward Informativ Attitude Attitude Frequency of SNS advertising Entertainmenteness Irritation Credibility Institution Instrumentexposure Age Participation Spearman'satttitude rho towardCorrelation Coefficient 1,000 ,499** ,510** -,270** ,488** ,468** ,495** ,100 ,027 ,161* advertising Sig. (2-tailed) . ,000 ,000 ,000 ,000 ,000 ,000 ,148 ,696 ,020 N 209 209 209 209 209 209 209 209 209 209 Entertainment Correlation Coefficient ,499** 1,000 ,516** -,182** ,355** ,421** ,385** -,120 ,042 ,178** Sig. (2-tailed) ,000 . ,000 ,008 ,000 ,000 ,000 ,083 ,544 ,010 N 209 209 209 209 209 209 209 209 209 209 InformativenessCorrelation Coefficient ,510** ,516** 1,000 -,217** ,468** ,676** ,514** ,092 ,030 ,218** Sig. (2-tailed) ,000 ,000 . ,002 ,000 ,000 ,000 ,187 ,669 ,002 N 209 209 209 209 209 209 209 209 209 209 Irritation Correlation Coefficient -,270** -,182** -,217** 1,000 -,327** -,217** -,233** ,088 -,140* -,095 Sig. (2-tailed) ,000 ,008 ,002 . ,000 ,002 ,001 ,203 ,043 ,171 N 209 209 209 209 209 209 209 209 209 209 Credibility Correlation Coefficient ,488** ,355** ,468** -,327** 1,000 ,455** ,542** -,030 ,022 ,057 Sig. (2-tailed) ,000 ,000 ,000 ,000 . ,000 ,000 ,666 ,752 ,416 N 209 209 209 209 209 209 209 209 209 209 Attitude Institution Correlation Coefficient ,468** ,421** ,676** -,217** ,455** 1,000 ,583** ,149* -,034 ,192** Sig. (2-tailed) ,000 ,000 ,000 ,002 ,000 . ,000 ,031 ,622 ,005 N 209 209 209 209 209 209 209 209 209 209 Attitude Instrument Correlation Coefficient ,495** ,385** ,514** -,233** ,542** ,583** 1,000 ,102 ,194** ,118 Sig. (2-tailed) ,000 ,000 ,000 ,001 ,000 ,000 . ,142 ,005 ,089 N 209 209 209 209 209 209 209 209 209 209 Frequency of exposure Correlation Coefficient ,100 -,120 ,092 ,088 -,030 ,149* ,102 1,000 ,059 -,027 Sig. (2-tailed) ,148 ,083 ,187 ,203 ,666 ,031 ,142 . ,398 ,697 N 209 209 209 209 209 209 209 209 209 209 Age Correlation Coefficient ,027 ,042 ,030 -,140* ,022 -,034 ,194** ,059 1,000 ,054 Sig. (2-tailed) ,696 ,544 ,669 ,043 ,752 ,622 ,005 ,398 . ,439 N 209 209 209 209 209 209 209 209 209 209 SNS Participation Correlation Coefficient ,161* ,178** ,218** -,095 ,057 ,192** ,118 -,027 ,054 1,000 Sig. (2-tailed) ,020 ,010 ,002 ,171 ,416 ,005 ,089 ,697 ,439 . N 209 209 209 209 209 209 209 209 209 209 **.Correlation is significant at the 0.01 level (2-tailed). *.Correlation is significant at the 0.05 level (2-tailed). Correlation 3 Nonparametric Correlations Author: A. Yudhokesumo________________________________________________ ________________ 120 Faculty of Economics and Business: Universiteit van Amsterdam Correlations attitude Informativ Attitude Attitude Frequency of SNS toward brand Entertainmenteness Irritation Credibility Institution Instrumentexposure Age Participation Spearman'sattitude rho toward Correlation brand Coefficient 1,000 ,426** ,573** -,228** ,394** ,584** ,469** ,075 -,017 ,168* Sig. (2-tailed) . ,000 ,000 ,001 ,000 ,000 ,000 ,282 ,807 ,015 N 209 209 209 209 209 209 209 209 209 209 Entertainment Correlation Coefficient ,426** 1,000 ,516** -,182** ,355** ,421** ,385** -,120 ,042 ,178** Sig. (2-tailed) ,000 . ,000 ,008 ,000 ,000 ,000 ,083 ,544 ,010 N 209 209 209 209 209 209 209 209 209 209 InformativenessCorrelation Coefficient ,573** ,516** 1,000 -,217** ,468** ,676** ,514** ,092 ,030 ,218** Sig. (2-tailed) ,000 ,000 . ,002 ,000 ,000 ,000 ,187 ,669 ,002 N 209 209 209 209 209 209 209 209 209 209 Irritation Correlation Coefficient -,228** -,182** -,217** 1,000 -,327** -,217** -,233** ,088 -,140* -,095 Sig. (2-tailed) ,001 ,008 ,002 . ,000 ,002 ,001 ,203 ,043 ,171 N 209 209 209 209 209 209 209 209 209 209 Credibility Correlation Coefficient ,394** ,355** ,468** -,327** 1,000 ,455** ,542** -,030 ,022 ,057 Sig. (2-tailed) ,000 ,000 ,000 ,000 . ,000 ,000 ,666 ,752 ,416 N 209 209 209 209 209 209 209 209 209 209 Attitude Institution Correlation Coefficient ,584** ,421** ,676** -,217** ,455** 1,000 ,583** ,149* -,034 ,192** Sig. (2-tailed) ,000 ,000 ,000 ,002 ,000 . ,000 ,031 ,622 ,005 N 209 209 209 209 209 209 209 209 209 209 Attitude Instrument Correlation Coefficient ,469** ,385** ,514** -,233** ,542** ,583** 1,000 ,102 ,194** ,118 Sig. (2-tailed) ,000 ,000 ,000 ,001 ,000 ,000 . ,142 ,005 ,089 N 209 209 209 209 209 209 209 209 209 209 Frequency of exposure Correlation Coefficient ,075 -,120 ,092 ,088 -,030 ,149* ,102 1,000 ,059 -,027 Sig. (2-tailed) ,282 ,083 ,187 ,203 ,666 ,031 ,142 . ,398 ,697 N 209 209 209 209 209 209 209 209 209 209 Age Correlation Coefficient -,017 ,042 ,030 -,140* ,022 -,034 ,194** ,059 1,000 ,054 Sig. (2-tailed) ,807 ,544 ,669 ,043 ,752 ,622 ,005 ,398 . ,439 N 209 209 209 209 209 209 209 209 209 209 SNS Participation Correlation Coefficient ,168* ,178** ,218** -,095 ,057 ,192** ,118 -,027 ,054 1,000 Sig. (2-tailed) ,015 ,010 ,002 ,171 ,416 ,005 ,089 ,697 ,439 . N 209 209 209 209 209 209 209 209 209 209 **.Correlation is significant at the 0.01 level (2-tailed). *.Correlation is significant at the 0.05 level (2-tailed). Reliability analysis Reliability Author: A. Yudhokesumo________________________________________________ ________________ 121 Faculty of Economics and Business: Universiteit van Amsterdam Scale: Consumers’ attitudes Case Processing Summary N Cases Valid Excludeda Total % 100,0 ,0 100,0 209 0 209 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha ,752 N of Items 2 Item Statistics Mean atttitude toward advertising attitude toward brand Std. Deviation N 2,95 ,967 209 3,22 ,910 209 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted 3,22 ,829 ,603 . 2,95 ,935 ,603 .a atttitude toward advertising attitude toward brand Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted a a. The value is negative due to a negative average covariance among items. This violates reliability model assumptions. You may want to check item codings. Reliability Scale: Entertainment Author: A. Yudhokesumo________________________________________________ ________________ 122 Faculty of Economics and Business: Universiteit van Amsterdam Case Processing Summary N Cases Valid Excludeda Total % 100,0 ,0 100,0 209 0 209 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha ,720 N of Items 3 Item Statistics Entertainment1 Entertainment2 Entertainment3 Mean 2,99 2,87 2,87 Std. Deviation 1,019 1,034 ,926 N 209 209 209 Item-Total Statistics Entertainment1 Entertainment2 Entertainment3 Scale Mean if Item Deleted 5,73 5,86 5,86 Scale Variance if Item Deleted 2,601 3,162 2,902 Corrected Item-Total Correlation ,627 ,400 ,616 Cronbach's Alpha if Item Deleted ,519 ,801 ,548 Reliability Scale: Informativeness Author: A. Yudhokesumo________________________________________________ ________________ 123 Faculty of Economics and Business: Universiteit van Amsterdam Case Processing Summary N Cases Valid Excludeda Total % 100,0 ,0 100,0 209 0 209 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha ,741 N of Items 3 Item Statistics Mean 3,35 3,28 3,52 Informativeness1 Informativeness2 Informativeness3 Std. Deviation 1,000 1,034 ,966 N 209 209 209 Item-Total Statistics Informativeness1 Informativeness2 Informativeness3 Scale Mean if Item Deleted 6,80 6,87 6,64 Scale Variance if Item Deleted 2,959 2,757 3,213 Corrected Item-Total Correlation ,573 ,612 ,514 Cronbach's Alpha if Item Deleted ,647 ,598 ,713 Reliability Scale: Irritation Author: A. Yudhokesumo________________________________________________ ________________ 124 Faculty of Economics and Business: Universiteit van Amsterdam Case Processing Summary N Cases Valid Excludeda Total 209 0 209 % 100,0 ,0 100,0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha ,553 N of Items 3 Item Statistics Mean 3,41 3,09 3,55 Irritation1 Irritation2 Irritation3 Std. Deviation ,911 ,931 ,919 N 209 209 209 Item-Total Statistics Irritation1 Irritation2 Irritation3 Scale Mean if Item Deleted 6,64 6,96 6,50 Scale Variance if Item Deleted 2,261 2,258 2,049 Corrected Item-Total Correlation ,341 ,322 ,430 Cronbach's Alpha if Item Deleted ,486 ,517 ,343 Reliability Scale: Credibility Author: A. Yudhokesumo________________________________________________ ________________ 125 Faculty of Economics and Business: Universiteit van Amsterdam Case Processing Summary N Cases Valid Excludeda Total 209 0 209 % 100,0 ,0 100,0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha ,781 N of Items 3 Item Statistics Credibility1 Credibility2 Credibility3 Mean 2,98 2,78 2,77 Std. Deviation ,762 ,822 ,963 N 209 209 209 Item-Total Statistics Credibility1 Credibility2 Credibility3 Scale Mean if Item Deleted 5,55 5,75 5,75 Scale Variance if Item Deleted 2,518 2,296 1,928 Corrected Item-Total Correlation ,603 ,637 ,636 Cronbach's Alpha if Item Deleted ,727 ,686 ,697 Reliability Scale: Attitude Institution Author: A. Yudhokesumo________________________________________________ ________________ 126 Faculty of Economics and Business: Universiteit van Amsterdam Case Processing Summary N Cases Valid Excludeda Total % 100,0 ,0 100,0 209 0 209 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha ,788 N of Items 3 Item Statistics Attitude Institution1 Attitude Institution2 Attitude Institution3 Mean 3,28 3,36 3,34 Std. Deviation ,816 ,849 ,846 N 209 209 209 Item-Total Statistics Attitude Institution1 Attitude Institution2 Attitude Institution3 Scale Mean if Item Deleted 6,70 6,62 6,64 Scale Variance if Item Deleted 2,308 2,102 2,125 Corrected Item-Total Correlation ,589 ,653 ,645 Cronbach's Alpha if Item Deleted ,754 ,686 ,695 Reliability Scale: Attitude Instrument Author: A. Yudhokesumo________________________________________________ ________________ 127 Faculty of Economics and Business: Universiteit van Amsterdam Case Processing Summary N Cases Valid Excludeda Total % 100,0 ,0 100,0 209 0 209 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha ,825 N of Items 3 Item Statistics Attitude Instrument1 Attitude Instrument2 Attitude Instrument3 Mean 3,40 3,07 3,16 Std. Deviation ,855 ,869 ,729 N 209 209 209 Item-Total Statistics Attitude Instrument1 Attitude Instrument2 Attitude Instrument3 Scale Mean if Item Deleted 6,23 6,56 6,46 Scale Variance if Item Deleted 2,062 1,901 2,538 Corrected Item-Total Correlation ,689 ,763 ,610 Cronbach's Alpha if Item Deleted ,753 ,673 ,829 Regression analysis Regression 1a Author: A. Yudhokesumo________________________________________________ ________________ 128 Faculty of Economics and Business: Universiteit van Amsterdam Variables Entered/Removedb Model 1 Variables Entered SNS Participatio n, Credibility, Frequency of exposure, Age, Irritation, Entertainm ent, Attitude Institution, Attitude Instrumen t, Informative a ness Variables Removed Method . Enter a. All requested variables entered. b. Dependent Variable: Consumers Attitudes Model Summary Model 1 R R Square ,724a ,524 Adjusted R Square ,503 Std. Error of the Estimate ,5927 a. Predictors: (Constant), SNS Participation, Credibility, Frequency of exposure, Age, Irritation, Entertainment, Attitude Institution, Attitude Instrument, Informativeness ANOVAb Model 1 Regression Residual Total Sum of Squares 77,035 69,914 146,950 df 9 199 208 Mean Square 8,559 ,351 F 24,363 Sig. ,000a a. Predictors: (Constant), SNS Participation, Credibility, Frequency of exposure, Age, Irritation, Entertainment, Attitude Institution, Attitude Instrument, Informativeness b. Dependent Variable: Consumers Attitudes Author: A. Yudhokesumo________________________________________________ ________________ 129 Faculty of Economics and Business: Universiteit van Amsterdam Coefficientsa Model 1 (Constant) Entertainment Informativeness Irritation Credibility Attitude Institution Attitude Instrument Frequency of exposure Age SNS Participation Unstandardized Coefficients B Std. Error ,428 ,439 ,227 ,064 ,230 ,074 -,106 ,067 ,153 ,075 ,136 ,087 ,240 ,082 ,052 ,029 -,119 ,073 ,028 ,036 Standardized Coefficients Beta ,215 ,222 -,085 ,130 ,114 ,201 ,091 -,082 ,039 t ,974 3,549 3,093 -1,597 2,040 1,574 2,936 1,780 -1,619 ,767 Sig. ,331 ,000 ,002 ,112 ,043 ,117 ,004 ,077 ,107 ,444 a. Dependent Variable: Consumers Attitudes Regression 1b Author: A. Yudhokesumo________________________________________________ ________________ 130 Faculty of Economics and Business: Universiteit van Amsterdam Variables Entered/Removedb Model 1 Variables Entered Attitude Instrumen t, Entertainm ent, Credibility, Informative a ness Variables Removed Method . Enter a. All requested variables entered. b. Dependent Variable: Consumers Attitudes Model Summary Model 1 R .704a Adjusted R Square .485 R Square .495 Std. Error of the Estimate .6030 a. Predictors: (Constant), Attitude Instrument, Entertainment, Credibility, Informativeness ANOVAb Model 1 Regression Residual Total Sum of Squares 72.770 74.180 146.950 df 4 204 208 Mean Square 18.192 .364 F 50.031 Sig. .000a a. Predictors: (Constant), Attitude Instrument, Entertainment, Credibility, Informativeness b. Dependent Variable: Consumers Attitudes Coefficientsa Model 1 (Constant) Entertainment Informativeness Credibility Attitude Instrument Unstandardized Coefficients B Std. Error -.025 .227 .217 .063 .316 .068 .172 .074 .288 .076 Standardized Coefficients Beta .205 .304 .146 .241 t -.111 3.415 4.663 2.337 3.807 Sig. .912 .001 .000 .020 .000 a. Dependent Variable: Consumers Attitudes Regression 2a Author: A. Yudhokesumo________________________________________________ ________________ 131 Faculty of Economics and Business: Universiteit van Amsterdam Variables Entered/Removedb Model 1 Variables Entered SNS Participatio n, Credibility, Frequency of exposure, Age, Irritation, Entertainm ent, Attitude Institution, Attitude Instrumen t, Informative a ness Variables Removed Method . Enter a. All requested variables entered. b. Dependent Variable: atttitude toward advertising Model Summary Model 1 R R Square ,662a ,438 Adjusted R Square ,413 Std. Error of the Estimate ,741 a. Predictors: (Constant), SNS Participation, Credibility, Frequency of exposure, Age, Irritation, Entertainment, Attitude Institution, Attitude Instrument, Informativeness ANOVAb Model 1 Regression Residual Total Sum of Squares 85,142 109,280 194,421 df 9 199 208 Mean Square 9,460 ,549 F 17,227 Sig. ,000a a. Predictors: (Constant), SNS Participation, Credibility, Frequency of exposure, Age, Irritation, Entertainment, Attitude Institution, Attitude Instrument, Informativeness b. Dependent Variable: atttitude toward advertising Author: A. Yudhokesumo________________________________________________ ________________ 132 Faculty of Economics and Business: Universiteit van Amsterdam Coefficientsa Model 1 (Constant) Entertainment Informativeness Irritation Credibility Attitude Institution Attitude Instrument Frequency of exposure Age SNS Participation Unstandardized Coefficients B Std. Error ,227 ,549 ,309 ,080 ,171 ,093 -,135 ,083 ,253 ,094 -,001 ,108 ,289 ,102 ,078 ,037 -,115 ,092 ,042 ,045 Standardized Coefficients Beta ,254 ,144 -,093 ,187 -,001 ,210 ,119 -,069 ,051 t ,414 3,863 1,844 -1,617 2,707 -,013 2,824 2,127 -1,251 ,929 Sig. ,680 ,000 ,067 ,107 ,007 ,990 ,005 ,035 ,212 ,354 a. Dependent Variable: atttitude toward advertising Author: A. Yudhokesumo________________________________________________ ________________ 133 Faculty of Economics and Business: Universiteit van Amsterdam Regression 2b Variables Entered/Removedb Model 1 Variables Entered Frequency of exposure, Credibility, Entertainm ent, Attitude a Instrument Variables Removed Method . Enter a. All requested variables entered. b. Dependent Variable: atttitude toward advertising Model Summary Model 1 R .639a R Square .408 Adjusted R Square .397 Std. Error of the Estimate .751 a. Predictors: (Constant), Frequency of exposure, Credibility, Entertainment, Attitude Instrument ANOVAb Model 1 Regression Residual Total Sum of Squares 79.391 115.031 194.421 df 4 204 208 Mean Square 19.848 .564 F 35.199 Sig. .000a a. Predictors: (Constant), Frequency of exposure, Credibility, Entertainment, Attitude Instrument b. Dependent Variable: atttitude toward advertising Coefficientsa Model 1 (Constant) Entertainment Credibility Attitude Instrument Frequency of exposure Unstandardized Coefficients B Std. Error -.421 .298 .392 .074 .332 .089 .322 .094 .075 .036 Standardized Coefficients Beta .323 .245 .234 .114 t -1.410 5.329 3.737 3.438 2.050 Sig. .160 .000 .000 .001 .042 a. Dependent Variable: atttitude toward advertising Author: A. Yudhokesumo________________________________________________ ________________ 134 Faculty of Economics and Business: Universiteit van Amsterdam Regression 3a Variables Entered/Removedb Model 1 Variables Entered SNS Participatio n, Credibility, Frequency of exposure, Age, Irritation, Attitude Institution, Entertainm ent, Attitude Instrumen t, Informative a ness Variables Removed Method . Enter a. All requested variables entered. b. Dependent Variable: attitude toward brand Model Summary Model 1 R R Square ,655a ,430 Adjusted R Square ,404 Std. Error of the Estimate ,703 a. Predictors: (Constant), SNS Participation, Credibility, Frequency of exposure, Age, Irritation, Attitude Institution, Entertainment, Attitude Instrument, Informativeness ANOVAb Model 1 Regression Residual Total Sum of Squares 74,082 98,349 172,431 df 9 199 208 Mean Square 8,231 ,494 F 16,655 Sig. ,000a a. Predictors: (Constant), SNS Participation, Credibility, Frequency of exposure, Age, Irritation, Attitude Institution, Entertainment, Attitude Instrument, Informativeness b. Dependent Variable: attitude toward brand Author: A. Yudhokesumo________________________________________________ ________________ 135 Faculty of Economics and Business: Universiteit van Amsterdam Coefficientsa Model 1 (Constant) Entertainment Informativeness Irritation Credibility Attitude Institution Attitude Instrument Frequency of exposure Age SNS Participation Unstandardized Coefficients B Std. Error ,628 ,521 ,274 ,103 ,288 ,088 -,078 ,079 ,052 ,089 ,145 ,076 ,191 ,097 ,026 ,035 -,123 ,087 ,013 ,043 Standardized Coefficients Beta ,211 ,257 -,057 ,041 ,127 ,148 ,043 -,078 ,017 t 1,207 2,668 3,273 -,988 ,587 1,912 1,975 ,759 -1,411 ,313 Sig. ,229 ,008 ,001 ,324 ,558 ,057 ,050 ,449 ,160 ,754 a. Dependent Variable: attitude toward brand Author: A. Yudhokesumo________________________________________________ ________________ 136 Faculty of Economics and Business: Universiteit van Amsterdam Regression 3b Variables Entered/Removedb Model 1 Variables Entered Attitude Instrumen t, Informative ness, Entertainm a ent Variables Removed Method . Enter a. All requested variables entered. b. Dependent Variable: attitude toward brand Model Summary Model 1 R ,639a R Square ,409 Adjusted R Square ,400 Std. Error of the Estimate ,705 a. Predictors: (Constant), Attitude Instrument, Informativeness, Entertainment ANOVAb Model 1 Regression Residual Total Sum of Squares 70,486 101,944 172,431 df 3 205 208 Mean Square 23,495 ,497 F 47,247 Sig. ,000a a. Predictors: (Constant), Attitude Instrument, Informativeness, Entertainment b. Dependent Variable: attitude toward brand Coefficientsa Model 1 (Constant) Entertainment Informativeness Attitude Instrument Unstandardized Coefficients B Std. Error ,203 ,265 ,325 ,100 ,371 ,080 ,213 ,088 Standardized Coefficients Beta ,251 ,330 ,165 t ,764 3,239 4,613 2,427 Sig. ,445 ,001 ,000 ,016 a. Dependent Variable: attitude toward brand Author: A. Yudhokesumo________________________________________________ ________________ 137