UNDERSTANDING FACTORS THAT AFFECT SOCIAL MEDIA ADVERTISEMENT ADOPTION FOR SMALL MEDIUM ENTERPRISES IN INDONESIA THE CASE OF FACEBOOK ADVERTISEMENT
Advancement of technology in the field of marketing has been one significant factor in assisting Small Medium Enterprises (SMEs) to increase their competitiveness. In competiting with bigger corporate competitors digital marketing service, in this case social media advertising, are very helpful to S...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/80740 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Advancement of technology in the field of marketing has been one significant factor in assisting Small Medium Enterprises (SMEs) to increase their competitiveness. In competiting with bigger corporate competitors digital marketing service, in this case social media advertising, are very helpful to SMEs by its effectiveness and flexibility considering SMEs limited fund and resources In Indonesia, SMEs contribute significantly to the national economy hence this business sector should not be overlooked. Meta, as a technological company, provide Facebook advertisement as a mean of digital social media advertising. One of the challenges that Meta faced is to attract more Facebook ads adoption especially in the Small Medium Enterprise sector. This research objective is to understand the factors that affect social media advertisement adoption, in this case facebook advertisement, for small medium enterprises in Indonesia. Based on the literature review, there are eight variables that are believed to influence customer intention to adopt Facebook advertisement which are performance expectancy, effort expectancy, social influence, facilitating condition, hedonic motivation, price value, perceived technology security and self efficacy.
An interview was conducted with eight SMEs actor to further explore the research business issue and and online survey was conducted with 505 SMEs throughout Indonesia to see Facebook advertisement usage among SMEs. For the main data, an online survey was conducted with 350 SMEs. The respondents are SMEs that operate in Indonesia and either have not use Facebook advertisement service or do not use the service anymore. The sample was gathered using non-probability convenience sampling and the data was analyzed using structural equation model technique. To have broader insight, the study classified the survey result into three category which are overall category, have not use category and do not use anymore category. The research found that Self-efficacy is the highest influencing variable that are statistically significant to influence SMEs intention to adopt Facebook advertisement. Effort expectancy and social influence are found to be statistically significant to influence SMEs intention to adopt Facebook advertisement. Hedonic motivation and price value factor are found to be statistically significant to influence intention to adopt Facebook ads for SMEs that have use the service but choose not to use it anymore. In the contrary, the factor of performance expectancy, facilitating condition and perceived technology security are found to be not statistically significant to influence intention to adopt Facebook ads among Indonesia SMEs.
To address Meta business issue in attracting Indonesia SMEs to adopt facebook advertisement, the reseach suggest Meta to prioritize an effort to increase SMEs self-efficacy in using Facebook advertisement. Meta should educate SMEs on their capability to use the service by giving free training and certification. Meta should also partner with relevant key opinion leaders (KOL) and communities to create social influence among SMEs in adopting Facebook advertisement. Creating fun and entertaining event to engage with SMEs users are also adviseable. Monetary incentives such as discount coupons are also likely to be effective for SMEs. For future research, researcher suggest doing similar research with different/smaller respondent demography and/or with different social media advertising platform. Reserch with respondent that are actively using Facebook advertising sercive could also give additional insight to the study.
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