Transformations  in
Business & Economics

MODELLING THE EFFECT OF YOUTUBE AS AN ADVERTISING MEDIUM ON CONVERTING INTENTION-TO-PURCHASE INTO PURCHASE
Rodney Graeme Duffett, Tudor Edu, Iliuta Costel Negricea, Rodica Milena Zaharia

ABSTRACT. The study aims to investigate the effect of the intention-to-purchase on purchase among South African and Romanian Generation Y respondents owing to YouTube advertising and to determine if a country, usage and demographic variables have an influence on this behavioural relationship. Quantitative research was conducted via a survey of 400 South African and 400 Romanian respondents. Structural equation modelling (SEM) and multi-group SEM were utilised to assess the hypothesised relationships. The results confirm that intention-to-purchase had a positive effect on purchase for the combined, South African and Romanian samples. YouTube access, length of usage, log-on frequency, number of advertisements viewed, and age were found to have an influence on behavioural responses. Organisations should adopt YouTube advertising strategies to stimulate the intention to purchase and to consider usage and demographic variables when targeting Generation Y. Future studies on behavioural responses towards YouTube advertising could consider longitudinal and qualitative approaches .

KEYWORDS:  YouTube advertising, Generation Y, structural equation modelling (SEM), intention-to-purchase, purchase.

JEL classification:  D12, L86, M31.