Factors Affecting Gen Y’s Purchase Intention of Online Shares: The Fusion of Online Financial Communication and Social Impact Branding as an Integrated Marketing Communication Strategy
Abstract
The objective of this study is to determine the effect of disseminating financial information via user generated content and firm generated content on millennials’ purchase intention of Shariah-compliant shares. A convenience sampling procedure using online questionnaires from millennials in Malaysia was used to test seven hypotheses based on prior literature. The partial least squares structural equation modelling (PLS-SEM) technique was used to analyse this study. The findings of this study indicated that user generated content and firm generated content positively influence brand attitude. By applying the signalling theory, the result showed a contradictive outcome to previous literature. User generated content has no direct effect on the purchase intention of Shariah-compliant online stocks. Theoretical and managerial implications of online financial communication and social impact branding as an integrated marketing strategy are discussed.
References
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Khan, F. & Callanan, M. (2016). The halalification of tourism. Journal of Islamic Marketing. 8(4): 558-577.
Kumar, A., Bezawada, R., Rishika, R., Janakiraman, R., & Kannan, P.K. (2016). From Social to Sale: The Effects of Firm-Generated Content in Social Media on Customer Behavior. Journal of Marketing. 0(1): 7-25.
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Li, Y., Fu, H., & Huang, S. (2015). Does conspicuous decoration style influence customer's intention to purchase? the moderating effect of CSR practices. International Journal of Hospitality Management. 51(2015): 19-29.
Miller, N.J., Ruoh-Nan Terry Yan, Daniela Jankovska, & Camille Hensely. (2017). Exploring US Millennial consumers’ consumption values in relation to traditional and social cause apparel product attributes and purchase intentions. Journal of Global Fashion Marketing. 8(1): 54-68. doi:10.1080/20932685.2016.1261040.
Miller, T., & Triana, M. D. C. (2009). Demographic diversity in the boardroom: Mediators of the board diversity firm performance relationship. Journal of Management Studies. 46: 755-786.
Muradoglu, Gulnur, & Harvey, Nigel. (2012). Behavioural finance: the role of psychological factors in financial decisions. Review of Behavioral Finance. 4(2).
Omar Farooq Amal Alahkam. (2016). Performance of shariah-compliant firms and non-shariah compliant firms in the MENA region: Which is better? Journal of Islamic Accounting and Business Research. 7(4). http://dx.doi.org/10.1108/JIABR-10-2013-0039.
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Praditbatuga, P. (2018). Reaching the Decision To Purchase A Franchise In Thailand. AU Journal of Management. 4(2): 42-50. https://aujm.au.edu/index.php/aujm/article/view/71.
Prahalad CK, & Ramaswamy V. (2004). Co-creation experiences: the next practice in value creation. Journal of Interactive Marketing. 18(3): 5-14.
Preacher, K. J. & Hayes, A. F. (2008). Asymptotic and Resampling Strategies for Assessing and Comparing Indirect Effects in Multiple Mediator Models. Behavior Research Methods. 40 No. 3: 879-891.
Ramayah, T., Cheah, J., Chuah, F., Ting, H., & Memon, M. A. (2018). Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 3.0: An Updated Guide and Practical Guide to Statistical Analysis (2nd Ed.). Kuala Lumpur, Malaysia: Pearson.
Reiter L., & Connell K.H. (2017). US Consumers’ Environmentally Sustainable Apparel Purchase Intention: Investigating the Role of Social Influence of Peers to Use Social Networking Sites Applied to the Theory of Reasoned Action (An Abstract). In Proceedings of the Academy of Marketing Science. Springer, Cham.
Salleh, N.M., Ariff, M.S.M., Zakuan, N., Sulaiman, Z., & Saman, M.Z.M. (2016). Attitudinal Factors Affecting Viral Advertising Pass-On Behaviour of Online Consumers in Food Industry. In IOP Conference Series: Materials Science and Engineering. 131(1): 12013-12022.
Schivinski, B., & Dabrowski, D. (2014). The Effect of Social Media Communication on Consumer Perceptions of Brands. Journal of Marketing Communications. doi:10.1080/13527266.2013.871323.
Snell, S. A., & Dean, J. W. (1992). Integrated Manufacturing and Human Resource Management: A Human Capital Perspective. The Academy of Management Journal. 35(3): 467–504.
Spence, M. (2002). Signaling in retrospect and the informational structure of markets. American Economic Review. 92: 434-459.
Strauss, W., & Howe. N. (1991). Generations: The History of America’s Future 1584 to 2069. New York: William morrow and Company.
The Edge Markets. (2018). Bursa FY18 trading volume seen to improve by some 9%. http://www.theedgemarkets.com/article/bursa-fy18-trading-volume-seen-improve-some-9.
The Edge. (2018). Shariah Investing Fair 2018 gets 11,000 visitors. http://www.theedgemarkets.com/article/shariah-investing-fair-2018-gets-11000-visitors.
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The Star Online. (2017). More young investors entering into Malaysian market.”https://www.thestar.com.my/business/business-news/2017/05/03/young-investors/#dA4KY68WZyrsWG9T.99.
The Star Online. (2017). Survey shows young Malaysians prefer security over flexibility. http://www.thestar.com.my/news/nation/2016/06/23/youths-want-9to5-jobs-survey-shows-young-malaysians-prefer-security-over-flexibility/.
Vallen, T. (2014). How communication becomes the key to financial strength. http://www.mosaichub.com/resources/download/how-communication-becomes-the-key-to-financial-str.
Wiertz, C., & de Ruyter, K. (2007). Beyond the call of duty: Why customers contribute to firm-hosted commercial online communities. Organization studies. 28(3): 347-376.
Ahmad, M.F., Samsi, S.Z.M., Rasit, R.M, Yunus, N. & Abdul Rahim, N.R. (2016). Corporate Social Responsibility for Takaful Industry’s Branding Image. Jurnal Pengurusan. 46: 115-124.
Albert, N. Merunka, D. & Valette-Florence, P. (2009). The feeling of love toward a brand: concept and measurement. Advances in Consumer Research, Association for Consumer Research. 36: 300-307.
Alhabsyi, S.Y. (2008). Stock screening process. Islamic Finance Bulletin. 20: 24-30.
Amaro, S., Andreu, L., & Huang, S. (2017). Generation Y Travelers’ Intentions to Book Airbnb Accommodation: An Abstract. Developments in Marketing Science. In Proceedings of the Academy of Marketing Science. 43–44. doi:10.1007/978-3-319-47331-4_10.
Blankespoor, Elizabeth. (2018). Firm Communication and Investor Response: A Framework and Discussion Integrating Social Media. Accounting, Organizations and Society 2017 Conference on New Corporate Disclosure and New Media. https://ssrn.com/abstract=3144678 or http://dx.doi.org/10.2139/ssrn.3144678.
Bowden JLH. (2009). Customer engagement: a framework for assessing customer–brandrelationships: the case of the restaurant industry. Journal of Hospitality Marketing and Management. 18(6): 574–96.
Chin, W. W. (1998). The partial least squares approach to structural equation modelling. Modern methods for business research. 295–336. Mahwah, New Jersey: Lawrence Erlbaum Associates.
Chu, S. C., and Kim, Y. (2011). Determinants of Consumer Engagement in Electronic Word-of-Mouth (EWOM) in Social Networking Sites. International Journal of Advertising. 30(1): 47-75.
Cohen, J. (1988). Statistical power analysis for the behavioral sciences. (2nd ed.). Hillsdale, NJ: Lawrence Earlbaum Associates.
Cooper, Lisette, Jeremy Evnine, Jeff Finkelman, Kate Huntington, & David Lynch. (2016). Social Finance and the Postmodern Portfolio: Theory and Practice Lisette Cooper. The Journal of Wealth Management Spring. 18(4): 9-21. doi:https://doi.org/10.3905/jwm.2016.18.4.009.
Demont, L., Kempf, A., Rapidel, M. & Scibetta, C. (2000). Communication des Entreprises Strate’gies et Pratiques. Nathan.
Department of Statistics Malaysia. (2017). Press Release ICT Use and Access by Individuals and Households Survey Report, Malaysia, 2017. https://www.dosm.gov.my/v1/index.php?r=column/pdfPrev&id=bHBzbWxkWElxRDlmaU81Q3R2ckRkZz09.
Formánková, S., Trenz, O., Faldík, O., Kolomazník, J. & Sládková, J. (2019). Millennials’ Awareness and Approach to Social Responsibility and Investment—Case Study of the Czech Republic. Sustainability. 11(2): 504. doi:10.3390/su11020504.
Gold, A. H., Malhotra, A., & Segars, A. H. (2001). Knowledge Management: An Organizational Capabilities Perspective. Journal of Management. 18(1): 185-214.
Hair, J. F., C. M. Ringle & M. Sarstedt. (2011). PLS-SEM: Indeed a Silver Bullet. Journal of Marketing Theory and Practice. 19(2): 139-151.
Hazari, S., Bergiel, B.J., & Sethna, B.N. (2017). Hedonic and utilitarian use of user-generated content on online shopping websites. Journal of Marketing Communications. http://www.dx.doi.org/10.1080/13527266.2016.114338.
Hulland, J., Baumgartner, H., and Smith, K. M. (2017). Marketing survey research best practices: evidence and recommendations from a review of JAMS articles. Journal of the Academy of Marketing Science. 1-17. doi: 10.1007/s11747-017-0532-y.
Kietzmann, J.H., Hermkens, K., McCarthy, I.P., & Silvestre, B.S., (2011). Social media? Get serious! Understanding the functional building blocks of social media. Business horizons. 54(3): 241-251.
Khan, F. & Callanan, M. (2016). The halalification of tourism. Journal of Islamic Marketing. 8(4): 558-577.
Kumar, A., Bezawada, R., Rishika, R., Janakiraman, R., & Kannan, P.K. (2016). From Social to Sale: The Effects of Firm-Generated Content in Social Media on Customer Behavior. Journal of Marketing. 0(1): 7-25.
Lee, Y.C. (2017). Effects of branded e-stickers on purchase intentions: the perspective of social capital theory. Telemat Informatics. 34(2017): 397-411.
Li, C., & J. Bernoff. (2011). Groundswell: Winning in a World Transformed by Social Technologies. Boston, MA: Harvard Business Review Press.
Li, Y., Fu, H., & Huang, S. (2015). Does conspicuous decoration style influence customer's intention to purchase? the moderating effect of CSR practices. International Journal of Hospitality Management. 51(2015): 19-29.
Miller, N.J., Ruoh-Nan Terry Yan, Daniela Jankovska, & Camille Hensely. (2017). Exploring US Millennial consumers’ consumption values in relation to traditional and social cause apparel product attributes and purchase intentions. Journal of Global Fashion Marketing. 8(1): 54-68. doi:10.1080/20932685.2016.1261040.
Miller, T., & Triana, M. D. C. (2009). Demographic diversity in the boardroom: Mediators of the board diversity firm performance relationship. Journal of Management Studies. 46: 755-786.
Muradoglu, Gulnur, & Harvey, Nigel. (2012). Behavioural finance: the role of psychological factors in financial decisions. Review of Behavioral Finance. 4(2).
Omar Farooq Amal Alahkam. (2016). Performance of shariah-compliant firms and non-shariah compliant firms in the MENA region: Which is better? Journal of Islamic Accounting and Business Research. 7(4). http://dx.doi.org/10.1108/JIABR-10-2013-0039.
Pew Research Centre. (2015). The future of world religions: population growth projections, 2010-2050 - why Muslims are rising fastest and the unaffiliated are shrinking as a share of the world’s population. http://www.pewforum.org/2015/04/02/religious-projections-2010-2050/ [20 July 2016].
Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioural research: A critical review of the literature and recommended remedies. Journal of Applied Psychology. 88(5): 879-903.
Praditbatuga, P. (2018). Reaching the Decision To Purchase A Franchise In Thailand. AU Journal of Management. 4(2): 42-50. https://aujm.au.edu/index.php/aujm/article/view/71.
Prahalad CK, & Ramaswamy V. (2004). Co-creation experiences: the next practice in value creation. Journal of Interactive Marketing. 18(3): 5-14.
Preacher, K. J. & Hayes, A. F. (2008). Asymptotic and Resampling Strategies for Assessing and Comparing Indirect Effects in Multiple Mediator Models. Behavior Research Methods. 40 No. 3: 879-891.
Ramayah, T., Cheah, J., Chuah, F., Ting, H., & Memon, M. A. (2018). Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 3.0: An Updated Guide and Practical Guide to Statistical Analysis (2nd Ed.). Kuala Lumpur, Malaysia: Pearson.
Reiter L., & Connell K.H. (2017). US Consumers’ Environmentally Sustainable Apparel Purchase Intention: Investigating the Role of Social Influence of Peers to Use Social Networking Sites Applied to the Theory of Reasoned Action (An Abstract). In Proceedings of the Academy of Marketing Science. Springer, Cham.
Salleh, N.M., Ariff, M.S.M., Zakuan, N., Sulaiman, Z., & Saman, M.Z.M. (2016). Attitudinal Factors Affecting Viral Advertising Pass-On Behaviour of Online Consumers in Food Industry. In IOP Conference Series: Materials Science and Engineering. 131(1): 12013-12022.
Schivinski, B., & Dabrowski, D. (2014). The Effect of Social Media Communication on Consumer Perceptions of Brands. Journal of Marketing Communications. doi:10.1080/13527266.2013.871323.
Snell, S. A., & Dean, J. W. (1992). Integrated Manufacturing and Human Resource Management: A Human Capital Perspective. The Academy of Management Journal. 35(3): 467–504.
Spence, M. (2002). Signaling in retrospect and the informational structure of markets. American Economic Review. 92: 434-459.
Strauss, W., & Howe. N. (1991). Generations: The History of America’s Future 1584 to 2069. New York: William morrow and Company.
The Edge Markets. (2018). Bursa FY18 trading volume seen to improve by some 9%. http://www.theedgemarkets.com/article/bursa-fy18-trading-volume-seen-improve-some-9.
The Edge. (2018). Shariah Investing Fair 2018 gets 11,000 visitors. http://www.theedgemarkets.com/article/shariah-investing-fair-2018-gets-11000-visitors.
The Malaysian Reserve. (2018). Bursa Malaysia looks to retail, foreign investors for further value. https://themalaysianreserve.com/2018/02/06/bursa-malaysia-looks-retail-foreign-investors-value/.
The Star Online. (2017). More young investors entering into Malaysian market.”https://www.thestar.com.my/business/business-news/2017/05/03/young-investors/#dA4KY68WZyrsWG9T.99.
The Star Online. (2017). Survey shows young Malaysians prefer security over flexibility. http://www.thestar.com.my/news/nation/2016/06/23/youths-want-9to5-jobs-survey-shows-young-malaysians-prefer-security-over-flexibility/.
Vallen, T. (2014). How communication becomes the key to financial strength. http://www.mosaichub.com/resources/download/how-communication-becomes-the-key-to-financial-str.
Wiertz, C., & de Ruyter, K. (2007). Beyond the call of duty: Why customers contribute to firm-hosted commercial online communities. Organization studies. 28(3): 347-376.
Published
2020-07-31
How to Cite
DE COSTA, Mohd Feroz Shah.
Factors Affecting Gen Y’s Purchase Intention of Online Shares: The Fusion of Online Financial Communication and Social Impact Branding as an Integrated Marketing Communication Strategy.
International Journal of Advanced Research in Economics and Finance, [S.l.], v. 2, n. 2, p. 60-69, july 2020.
ISSN 2682-812X.
Available at: <https://myjms.mohe.gov.my/index.php/ijaref/article/view/10199>. Date accessed: 18 jan. 2025.
Section
English Section
