Driving Consumer Value Co-creation and Purchase Intention by Social Media Advertising Value

Abstract

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Social media advertisement (ad) is a growing phenomenon designed to reach and engage customers. However, despite their continued adoption, less remains known regarding the effectiveness of social media ads to co-create brand value. In response to this gap, this study aims to deepen the theoretical understanding of consumer value co-creation through social media advertising value. The data were collected using purposive sampling from 286 experienced social-media users, and the model was tested using partial least square (PLS)-based structural equation modeling. The results indicate that entertainment, aesthetic appeal, interactivity, and trendiness significantly affect the adverting value of social media ads. In turn, ad value affects consumers’ intention for value co-creation. Consequently, our findings suggest the importance of social media advertising value where marketers may enhance consumer-brand engagement (CBE) by incorporating interesting content, which may encourage the customer’s interaction with the social media ads and strengthen value co-creation behavior. The results further contribute to nascent marketing literature by demonstrating that value co-creation acts as an antecedent to generating positive electronic word-of-mouth (e-WOM) on social media platforms to drive consumers’ online brand purchase intention.

Keywords

• social media advertising
• value co-creation
• purchase intention
• service-dominant logic (S-D logic)
• e-WOM (electronic word-of-mouth)