Demystifying the Effect of Social Media Advertising on Purchase Intention of Millennials: Role of eWOM and Privacy Concerns

Abstract

The substantial impact of businesses’ strong online presence on consumers’ spending habits, especially among decision-makers, cannot be overstated. One of the forms of online product reviews is electronic word-of-mouth (eWOM), and it has a significant impact on consumers’ attitude towards a product as well as their intentions to purchase. This article aims to provide a conceptual framework that assesses how eWOM and privacy issues affect Indian millennials’ attitude towards social media advertising and the subsequent effect of attitude on purchase intention. The data were gathered through non-probability sampling from 340 social network users utilising an online questionnaire through Google Forms. The adapted scales were validated using confirmatory factor analysis, followed by path analysis using SPSS AMOS 26.0 to examine numerous hypotheses that had been formulated. The results revealed significant relationships that are helpful in recognising the attitude and purchase intention of Indian millennials regarding social media advertisements. The study can be helpful to brand managers, marketing executives, and advertisers in generating social media commercials by incorporating key elements that can positively mould attitudes and further develop purchase intention.