BRAND-GENERATED CONTENT (BGC) AND CONSUMER-GENERATED ADVERTISING (CGA) ON INSTAGRAM: THE INFLUENCE OF PERCEPTIONS ON PURCHASE INTENTION

• Main Author: Salma Irelli, Refi
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/40981
• Institution: Institut Teknologi Bandung

Generation Y start to use social media as their primary tools to obtain information about product and brand. One of the most active social media in Indonesia is Instagram. As become the most active social media in Indonesia, many businesses began to use Instagram as their marketing tools. Mostly business will provide their product information or other content that wrapped nicely by the brand itself as a way of filling their business page, or it is called Brand-Generated Content (BGC). However, the previous study shows that online consumers more likely rely on information generated by other consumers (Consumer-Generated Advertising) than generated directly by marketers (Brand-Generated Content) to assist their purchase decision because they perceive consumers will provide more factual information than the advertiser. Hence, this study objective is to know how does Indonesia consumer perceive Brand-Generated Content and Consumer-Generated Advertising that has been used by a fashion brand on Instagram and which one is the most significant to influence consumer purchase intention. The sample consisted of 165 Instagram active users from Bandung and Jakarta whom voluntary agreed to participate in the online survey of this research. In this research, consumer perception of BGC and consumer perception of CGA defines as independent variable and purchase intention as dependent variable. The researcher used descriptive analysis and multiple regression as the method to answer the research questions. Finding confirmed that consumer perception of BGC and CGA has a positive influence on purchase intention on Instagram. The consumer needed to perceives BGC because it consists of important factors that could influence them to have the intention to buy: expertise, relevance, reduce risk, positive valence, usefulness, and credibility. Furthermore, the consumer also needed CGA to support the information of product because CGA has homophily and originality dimension. This study provides BGC and CGA strategy for managerial implication. The proposed strategy will be insightful for fashion business in Indonesia, especially for local fashion SMEs who want to generate more purchase intention on Instagram. Local fashion SMEs suggested to put BGC and CGA in order based on the AIDA model for maximum result, also to combine with the usage of CRM strategy for creating a competitive advantage.