Brand-Generated Content (BGC) and Consumer-Generated Advertising (CGA) on Instagram: The influence of Perceptions on Purchase Intention
Refi Salma Irelli (a), Rendra Chaerudin (b)
ab) School of Business and Management, Bandung Institute of Technology, Jl. Ganesha No. 10, Bandung, 40132, Indonesia
Abstract
Generation Y individuals start use social media as their main tools to obtain information about product and brand. One of the most active social media in Indonesia is Instagram. Broadcasting Brand-Generated Content (BGC) can be the most common marketing strategy that small enterprise will use on Instagram. The consumer perception of Brand-Generated Content (BGC) and consumer perception of Consumer-Generated Advertising (CGA) on Instagram can influence consumers- purchase intention towards fashion brand. However, study shows that online consumers more likely rely on information generated by other consumers than generated directly by marketers to assist their purchase decision because they perceive consumers will provide a more honest information than advertiser. Finding confirmed that consumer perception of BGC and CGA has positive influence on purchase intention on Instagram. Consumer needed BGC because it consists of important factors that could influence them to have intention to buy: expertise, relevance, reduce risk, positive valence, informativeness, and credibility. Furthermore, consumer also needed CGA to support they information of product because CGA has homophily and originality factor.
Keywords: Consumer Perception, Brand-Generated Content, Consumer-Generated Advertising, Purchase Intention, Fashion Brand, Social Media
Topic: Management