How advertising disclosure and customer engagement trends affect purchase intention on social media: a case of the younger generation in Vietnam

Abstract

Marketing trends of many companies today involve two factors: social media influencers and customer engagement. This paper examines the impact of social media influencers' endorsements on product attitude and purchase intention under the condition that they disclose sponsored advertising. On the other hand, we also consider the influence of customer engagement on purchase intention. The proposed framework argues that social media influencer marketing increases purchase intention while advertising disclosure has a positive effect on attitudes and purchase intention. In addition, customer engagement has a positive relationship with purchase intention in digital marketing. This study used two supporting theories including social capital theory and customer behavior theory. The survey was conducted on 478 Vietnamese people between the ages of 18 and 45. The data analysis techniques used are checking the reliability of the scale, exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and Structural equation modeling (SEM) respectively. The results invalidated the negative impact of advertising disclosure on product attitudes and purchase intention. In contrast, findings support the positive impact of social media influencers and customer engagement on attitude and purchase intention. Overall, the paper makes academic sense and provides evidence of the importance of social media influencers as well as customer engagement in marketing.