Using advertising value as the stimulus customer to change from trial action to repurchasing action - The case study of Grab
Abstract
Online advertising has been rapid grew and became an integrated part of every business. Although numerous research has been studied the effectiveness of advertising, how the perceive advertising value can increase consumers’ awareness and stimulate behaviors is not addressed. This current paper examines online advertising value and its effects on consumers’ response by presenting an adapted model of advertising message contents, involvement, and interactivity to consumers’ awareness, and accordingly trial and repurchase behaviors. Using Smart PLS to handle higher order construct and formative latent variable to handle 209 data, the result shows significant contributions of several dimensions to advertising value, such as informativeness, credibility, personalization, involvement and interactivity. In contrast, entertainment and irritation negatively impact on online advertising value. And such an advertising value, in turn, influence the actions of potential customers. Several implications and recommendation for future research also mentioned at the end of this paper.