Arasu

Proceedings of Eurasia Business Research Conference

16 - 18 June 2014, Nippon Hotel, Istanbul, Turkey, ISBN: 978-1-922069-54-2

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Social Marketing Needs a Reboot: Malaysian Youths Interpretation

Arasu Raman* and Vijayan Ramasamy**

Marketing using Social Media offers a number of opportunities for modern marketers. Also are the unknowns involved if businesses fail to consider vicissitudes that are linked with Social Media marketing today. The purpose of this study is to provide an attempt of youths perspective towards social media advertising, and the methods social media be used as a platform to improve the advertising efforts amongst the youth. The researchers used wide-ranging survey data to collect and analyse the Malaysian youths perspective of the social media advertising and results indicate that social media is a behavioural aspect. A total of 180 valid feedbacks were obtained from the students coinciding as being the Youth, with the findings indicating that entertainment and privacy and security of social media being the key to most of the marketers success having Youth as the focus making the social media a powerful entity for promoting the products of today and advertising of tomorrow.

Field of Research: Social Media Advertising, Social Marketing, Social Networking Sites

1. Introduction The new technologies of communications have been efficaciously adopted and become a model. As reported by Pingdom (2012), number of Internet users worldwide in the year 2012 reached 2.27 billion, almost twice it was 5 years ago (1.15 billion). It is human nature to get used to changes, so most of us have a tendency to forget how rapidly the world has changed, and keeps changing. Despite the popularity of social media, there is very limited research literature regarding social media advertising itself and measuring attitude towards social media advertising (SMA). Most previous research studies are on investigating consumers attitudes towards advertising on traditional media (O'Donohoe, 2001), or attitudes towards advertising on new media such as the Internet or mobile phone (Tsang, Ho, & Liang, 2004). In relevance to this study, there are some literatures discussing different aspects of social media but with certain limitations. For example Zeng, Huang and Dou (2009) have been studied on how the group norms and social identity affect social networking sites users perception on online advertising. __________________________ *Arasu Raman is with Faculty of Business, Communications and Law, INTI International University, Malaysia. E-mail: [email protected] **Vijayan Ramasamy is with Faculty of Business, Communications and Law, INTI International University, Malaysia. E-mail: [email protected]



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There is also a study by Hoy & Milne (2010) about gender differences in privacy beliefs towards social media among young adult aged between18-24, but there is expectation for a further study in order to understand how privacy concern impacts on attitude towards advertising. Another study made by Kelly, Kerr and Drennan (2010), discusses about the teenagers advertising avoidance on social networking sites. It concludes that teenagers avoidance on advertising on social networking sites because of their previous bad experience with it regardless of medium. However it only focuses on qualitative research and needs a future study on how the credibility of social media affects its targeted audiences. In Malaysia, only little academic research was done on this field like the research done by Adam Mahamat (2011) on the influence of social networking sites on students academic performance and also Consumer attitude towards Facebook Advertising. Within the context, the study by Raman and Chien (2013), presents majority of the respondents are using internet every day for character-promotion and not highly relying on internet for non-socio activities. Also, findings by Raman and Annamalai (2012) believes the young generation has a corresponding association to internet, as their life gets structured around internet when more involvement. No study was found focusing the Malaysian youths perception regarding their perception towards advertisements on social media. As reminded by Raman (2013), keeping in mind that the youth are the ones who heavily use social media almost every day, there is a greater need that a research should be done on what they think about advertisements on social media and what kind of advertisements they find attractive. Therefore, the lack of research studies and scholarly data on perceptions of advertising in social media stimulated the beginning of this study. Eventually, Wolin and Korgaonkars study (2003) presents the attitude differences between genders. The finding of their study concludes that the females are more favorable towards online advertising. However, so far little research work discusses about the different perceptions towards social media advertising among youths. Therefore there is demand for investigating on gender issue. Some other studies on this topic conducted were users attitude and perception towards advertising was conducted by various researchers like Speck and Elliot in 1997. Study was also done on customer perception towards the internet by Cho, Lee and Tharp in 2001. Also, many questions regarding social media advertising has remained one-sided. Issues on how to reach the right target audience and to understand the consumers opinion of advertisements placed on social networks. The online social networks as advertising medium have developed so fast left its researchers in limbo. Sometimes it has happened that advertisements are read by the wrong market segment and as a result, it will lead to minimum benefits to the marketers or sometimes it might also lead to a loss. This is an issue which is faced by almost all businesses today. Thus the problems can be concluded as there has been an inability to reach the potential customers by the marketers because they were not able to understand their behavior on



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the internet and thereby there has been the inability to choose the right type of advertising strategy. The study has attempted to response the below stated research questions:

1. Does privacy and security concern of the Malaysian youth influence their perception toward social media advertising?

2. What are the improvements that can be made on advertising on social media so that marketers can target more customers in time?

The overarching research objective of this study is to examine the level of perception of Malaysian youth towards social media advertising. The specific objectives of the study are as follows:

1. To examine the influence of privacy and security concern of the Malaysian youth towards social media advertising.

2. To suggest improvement on advertisements on social media for marketers.

2. Literature Review

2.1 Social Media Advertising

Currently, advertising appears on all these different types of social media websites. All these advertising that is carried on social media could be referred as social media advertising, and it could be categorized as part of Internet advertising. It adopts many common features from Internet advertising such as interactivity, freedom of choice, and two-way communication. But social media advertising also has its uniqueness because of distinctive characteristics of social media, which make it different from Internet advertising (Kolek and Saunders, 2008), for example advertising on social media has evolved from the characteristics of social media such as user-generated content. The social media users could upload and publish the video of their own advertisement of their favorite products or brands on the content community sites such as YouTube. The advertising content itself is no longer generated or control by the company itself as it used to be in traditional media or on Internet. 2.2 Youth in Malaysia There are various definitions for youth in different parts of the world. The term "youth" is referred to individuals between the ages of 16-25 (Berkley and Burton, 2009). The National Youth Policy (2012), categories Malaysian individuals who are within the age group of 18 to 25 years as Youth. Where else, The United Nations has defines youth as persons aged between 15 to 24 years. In Malaysia, during the year 2011, there were 10.1 million youth in the country. The Department of Statistics Malaysia (2011) has stated that for the 18 to 25 years age group, there were equal numbers of males and females, while in the age group of 26 to 40 years the proportion of males was slightly higher than females at 50.3 per cent and 49.7 per cent respectively. The majority of the youth (53.5 per cent) lived in urban areas. There were



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equal proportions of males and females in both age groups in rural and urban areas. According to World Fact book (2012) ethnically, Bumiputera formed the majority of the youth population at 57.9 per cent. Of that majority, 47.2 per cent of young people were Malay Bumiputera and 10.7 per cent were non-Malay Bumiputera. Of the remaining 52.8 per cent of youth, 24.9 per cent were Chinese, 7 per cent were Indian, 7 per cent were non-citizens of Malaysia, and 3.2 per cent belong to other groups. 2.3 Privacy and Security Concern Perception is the interpretation of sensory information (Woolfolk, 2004). Product information and social role can have an impact on perception toward advertising and its effectiveness (Mehta and Purvis, 1995). The abundance of information on Internet indeed brings some economic benefits for its users, and the convenience of online searching saves a huge amount of time compared with traditional paper-based searching. However, the Internet is a double-edge sword, as it also has disadvantages such as privacy infringement. The privacy concerns over social media are also drawn attention from regulators, advocacy groups, and consumers as well. There are several studies about the different privacy concerns over social media from many perspectives such as gender and age. For example, one of previous research has found that on social media, females are more likely to reveal personal information more than males (Hoy and Milne, 2010). As more and more privacy breaching events are happening around us, the social media users are now becoming more and more concerned about the privacy of their profiles on social media, and they concern about their personal information could be stolen and used by others without authorization. On the other hand, lack of the knowledge of privacy protection over social media sites would be another reason that affects the users perception on disclosures of personal information (Hoy and Milne, 2010). Their study also depicts the users Facebook profile information is highly correlated social media' efforts and protection of their privacy. Thus, perception or attitude towards advertising might be influenced by the privacy protection behavior of advertisers and social media sites. As a result, based on the literature it can be hypothesized as: H1: Privacy and security concern has an influence on users perception toward social media advertising 2.4 Entertainment Peoples feelings of enjoyment linked with advertisements play an important role in the formation of their perception towards advertisements. Viral marketing contents need to be concise and be able to capture consumers attention. The level of consumer involvement and loyalty on a social network do really depends on the entertainment services provided by the network. Many past studies are confirming entertainment as a significant predictor of



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the value of web-based advertisements. According to Boyd and Ellison (2006), entertainment affects consumers attitude towards mobile advertising. Also, as Palka et al. (2009), stressed on entertainment as one of the strongest elements of mobile marketing acceptance among consumers. Factors such as brand experiences, sense of control, interactivity, and entertainment are the most influencing factors on consumers web attitudes (Gangadharbatla, 2008). This resulted into actual acceptance of the products and services by customers that are offered on those sites. Therefore, an entertaining advertising message could increase the attention to a companys products or services, bringing opportunity for the company. This is a trend that the effectiveness of advertising would continuously deliver entertaining messages throughout different media including social media. Therefore, it is assumed that an entertaining advertising message would be perceived more positively by social media users and would eventually affect their attitudes towards it. Hence the following hypothesis is proposed: H2: Entertainment of the message is associated with users perception toward social media advertising.

3. Methodology A total of 250 questionnaires were distributed and 180 valid feedbacks were obtained and the data analyzed with the help of SPSS. The respondents of this study consist of only the youth of Malaysia who are of the age group of 18 to 25 years. A combination of both descriptive and explanatory research types is used in this study. The descriptive research is used in order to explain the variables used in this study such as user perceptions towards social media advertising, entertainment and privacy and security concern, whereas the explanatory research is used in this study in order to identify the relationship between the variables used. Adopting quantitative research method is the most appropriate way to answer each of the research questions and collect data from the targeted population, i.e., Malaysian youth (18 to 25 years) from popular shopping malls such as Mid Valley, Jaya Jusco and Pavillion thru self-administered surveys. Convenience sampling is adopted as it is a technique in which interviewers are asked to find respondents who happen to be conveniently accessible (Zikmund and Babin, 2007). The research has benefited from this by obtaining high response rate. The first section of the questionnaire in this study is regarding the social media usage of respondents, the second section is regarding the various variables used in the study in order to know the respondents perception toward social media advertising. All the questions in this section are used by 5-point Likert scale. Respondents are asked to rate their responses from 1 Strongly Disagree to 5 Strongly Agree with the statements about different perspectives of the characteristics of social media and psychographic factors. In order to avoid confusion, the statements have the same order of response categories. (i.e. the option Strongly Agree is always on the far left side).



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Both continuous as well as categorical methods are applied in designing the questions. To make sure that the respondent assigns cognitive capacity to each question, the statements are both positive and negative in nature. At last, these Likert scale items are used to summate a single average score for each measured factor. The last section collected data about the demographic information of respondents. This section used category questions, which allow only one response from a given set of categories including gender, age, race and education. For this purpose, the Cronbach Alpha is used which determines the correlations of questions in a variable. Also, Kaiser-Meyer-Olkin (KMO) and Bartletts test of spericity was used in this study. Originally, multiple regression analysis was planned for analyzing data, however, only regression was used as there were insufficient independent variables to support the use of multiple regression analysis. The independent variables of this research include entertainment, and privacy and security concern. The dependent variable is user perception toward social media advertising.

4. Findings and Discussion

Table 4.0 indicates all the respondents profiled in the demographic characteristics. A total of 180 Malaysian youth participated in this study. With regards to gender, the sample shows a slight imbalance between male and female. 53.3% (n=96) is made up of males and the rest 46.7% (n=84) are made up of females. The high number of reported males could be due to the sampling process and higher rate of willingness of the males to participate in the given survey compared to women.

Table 4.0: Summary of Social Media User Demographics (N=180)

Variable Classification Frequency Percentage (%)

Gender Male 96 53.3

Female 84 46.7

Age 18 46 25.6

19 56 31.1

20 23 12.8

21 25 13.9

22 6 3.3

23 5 2.8

24 11 6.1

25 8 4.4

Race Malay 72 40

Chinese 65 36.1

Indian 27 15

Others 16 8.9

Education Diploma 66 36.7

Degree 70 38.9

Masters 14 7.8

Others 30 16.7



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All of the respondents are in the age group of 18 to 25 years old. It can be concluded from the table that majority of the respondents (31.1%) are primarily young whose age is 19 years. The second biggest age of respondents comprised of individuals who are the age of 18 years (25.6%). This means that the youth who are 18 and 19 years of age are the ones who use social media heavily. This can be due to the higher popularity of social media among teenagers. In terms of education level, majority of the respondents are Degree students are bachelors degree holders (38.9%) and the following significant group are Diploma students (36.7%). The race structure presented in the table illustrated that 72% of the respondents are Malay, followed by 65% of Chinese and 27% Indians. The rest of the 16% comes under the Others category which consisted of local ethnics respondents. The breakdown of the survey sample can be considered as a representative of Malaysian population composition.

Table 4.1 Social Media User Duration Summary

Variable Classification Frequency Percentage (%)

Social media websites Facebook 65 36.1

Twitter 11 6.1

YouTube 35 19.4

LinkedIn 18 10

Word Press 6 3.3

Blogspot 8 4.4

Xanga 4 2.2

Slide share 29 16.1

Others 4 2.2

Website member duration Below 6 months 7 3.9

6 months - 1 year 15 8.3

2 - 3 years 40 22.2

Above 3 years 118 65.6

Hours using website Less than 1 hour 7 3.9

1 - 3 hours 35 19.4

4 - 6 hours 9 5.0

More than 6 hours 129 71.7

Table 4.1 demonstrates the social media websites in the respondents are a member. It shows that 36.1% of the total sample use Facebook followed by 19.4% of the sample using YouTube. It means that a higher number of respondents are engaged in the website Facebook when compared to the other social media website. It can also be understood that 65.6% of the total respondents have been a members of these social media websites for more than 3 years. Also, majority of the respondents (71.7%) spend more than 6 hours on social media websites. This evidencing that the youth use social media heavily now-a-days.



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Table 4.2 Summary of Reliability Test Construct No. of Items Cronbach's Alpha No. of Items Removed

Perception toward SMA 4 0.885 1

Entertainment 3 0.789 1

Table 4.2 shows the summary of reliability test. The first construct is Perception toward SMA which is the dependent variable of the study. The cronbach alpha for this construct was initially 0.435 which is not acceptable. The cronbach alpha for the first construct, Privacy and security scored a very low value of 0.073. In conclusion, the constructs used in the study such as Perception toward SMA, and Entertainment are all reliable except for privacy and security which scored a low cronbach alpha and therefore cannot be relied on.

Table 4.3 Summary of KMO and Bartletts test

Perception toward SMA

Entertainment

Privacy and Security

KMO Measure of Adequacy 0.745 0.500 0.500

Bartlett's Significance 0.000 0.000 0.000

From Table 4.3, it is understood that the KMO values for each and every construct have fulfilled the minimum requirement adequacy. The construct Perception toward SMA, which is the dependent variable of the study initially, scored a low value of 0.435. Due to this reason, one item with low communalities and low component matrix was discarded. Thus the KMO score of Perception toward SMA increased to 0.745 which is > 0.5. The constructs Entertainment and Privacy and Security had a low score at first, which are 0.466 and 0.436 respectively. These values cannot be accepted thus one item with the lowest value from each of the constructs was removed and the overall KMO score of Entertainment and Privacy and Security went up to 0.500 which is acceptable. The values of all the constructs mean that all variables are correlated with one another. On the whole, it can be said that all the constructs used in this study are meeting the requirements of adequacy. The relationship between privacy and security concern and perception toward SMA Privacy and Security concern scored a low cronbach alpha and the items under privacy and security concern are not correlated to each other. Also, it is not significant in the overall regression. Thus, Privacy and Security concern does not have an association with perception toward SMA. Hence, Hypothesis 1 is rejected. The hypothesis H1 examined whether there is any association between privacy and security concern and user perception towards SMA. From obtained results, it can be seen that there is no association between privacy and user perception towards SMA. This finding contradicts with the findings of Isp and Suhr (2009), in which they found out that there is a positive significant



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relationship between consumer perceptions of privacy and their overall perceptions towards SMA. This difference in study findings can be mainly due to the fact that these studies were carried out in different countries, one is in Spain and the other in Turkey and thus, the perceptions of users in one country might be different from that of the other country. It is also important to note that not many researchers investigated the relationship between consumer perceptions of privacy and security concern regarding social media websites and its influence on the overall consumer perceptions towards advertisements on social media. To put light on this, it can be suggested that future researchers who studies consumer perceptions toward SMA need to concentrate more thoroughly on examining the consumer perceptions of privacy and security concern as a predictor of consumer perceptions towards SMA. The relationship between entertainment and perception toward SMA

Table 4.4 Model Summary of Entertainment and Perception toward SMA

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate Durbin-Watson

1 .605a .366 .358 .71001 2.746

a. Predictors: (Constant), Enjoyable to watch, Captures attention

b. Dependent Variable: Perception toward SMA

The Table 4.4 demonstrates that the R value is 0.605 which means 60.5% of the variation in perception of SMA can be explained by Captures attention and Enjoyable to watch. The Adjusted R Square is 36.6%. The Durbin-Watson is 2.746.

Table 4.5 F test of Entertainment and perception toward SMA

Model Sum of Squares df Mean Square F Sig.

1 Regression 51.417 2 25.709 50.998 .000a

Residual 89.227 177 .504

Total 140.644 179

a. Predictors: (Constant), Enjoyable to watch, Captures attention

b. Dependent Variable: Perception toward SMA

The p value from Table 4.5 shows that it is < 0.001 which means that at least one of the two variables: Captures attention and Enjoyable to watch. Hence, Entertainment is a significant predictor. Entertainment is significant (sig=0.000) in the overall regression. As depicted in the Table 4.6, the t value is 4.804 and coefficient of Entertainment is 0.556. Therefore, entertainment has a positive relationship with user perception toward SMA at 1% significance level. The perception toward SMA will



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increase by 0.390 for one standard deviation increase in entertainment. Thus, Hypothesis 2 is supported.

Table 4.6 Coefficients of Entertainment and Perception toward SMA

Unstandardized

Coefficients

Standardized

Coefficients

t Sig. Model B Std. Error Beta

Entertainment 0.556 0.116 0.390 4.804 .000

The hypothesis H2 investigated whether there is an association between entertainment and the perception of users towards SMA. The results indicate that there is a significant association between entertainment and the overall perception towards advertising on social media. The perception of consumers of entertainment value of mobile advertisement is the highest predictors in the model. This finding is supported with the study conducted by Haghirian, Madlberger and Tanuskova (2005). However, in studies carried out by Tsang et al (2004) they found out that entertainment was the most significant determinant factor in influencing the respondents attitudes. In the previous studies, it was found that entertainment is the third significant factor after credibility of advertisement message. These results generally support each other, and only differ in terms of the strength of relationship to predict consumers perception towards social media advertising. This can be due to the fact that all these studies were carried out in different countries, and the results that were obtained could significantly be influenced by different economical and socio-cultural environments in those countries.

5. Conclusion and Implications As the landscape of media has gradually changed, new Internet-based social media keeps increasing usability especially among the young demographics of social media users. The ultimate implication of this study is alarming marketers to rethink the ways advertising works on social media and the effectiveness of traditional media spending. In this study the researcher aims to identify the level of perception of Malaysian youth toward SMA. It is a challenge for authors to work in this specific area with limited supporting literatures. Based on the results, the Malaysian youth hold a positive perception towards the advertising on social media. The conclusion of this study is just in line with the findings of many previous studies, which conclude that the perception towards advertising in general is positive. The study discusses some of the factors that are likely to affect the perception of the youth towards social media advertising and thus this study has taken into consideration two variables namely Entertainment, and Privacy and Security concern. In this study, it is also found out that currently the Malaysian youth consider advertising on social media provide abundance of information regarding the products or services and it also provides them with timely and



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up-to-date information. The study also indicates that the Malaysian youth prefers the advertisement messages to be entertaining and interactive. Moreover, even though the results shows there is no strong correlation between privacy concern and negative perception towards social media advertising, the social media users worry that social media sites will disclose their personal information to advertisers. From this, it can be understood that the privacy and security concern of the Malaysian youth towards advertisements on social media does not influence their perceptions regarding the same. In this study, the advertising on social media in general is being examined and not a specific category of advertising or a particular type of products, then this might be the reason that there is no significant relationship between privacy and security concern and user perceptions toward advertisements on social media. This study has shown high levels of faith by the youth in their social media websites. It is very essential that marketers do not misuse this trust. So marketers need to make it very clear to the users that what their personal information will be used for and also, who will be utilising the information supplied. The youth have the potential to become a very profitable market if they can be encouraged to response online. Marketers need to develop strategies that will build the trust of the users and persuade them to purchase a particular product. In order to do this, the marketers needs to present a consistent and very clear brand message on their website and do not make claims or promises or try to trick them. Marketers need to safeguard the personal information of the users by advertising their products in such a website which is highly trusted by a person and which has reliable privacy settings to secure the personal information they have provided about them on the social media website.

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