The increasing number of internet users and social media users have positively impacted companies to attract various business opportunities to promote and introduce their products on the internet or social media. The social media Instagram is one of the social networks that companies in Indonesia use to present, promote and inform their products. The Ads feature on Instagram can provide new alternatives for business people to help market their products.
The purpose of this study is to determine the effect of Interactivity, Informativeness, Perceived Relevance through Hedonic Motivation, and Performance Expectancy on consumer Purchase Intention in advertising on social media Instagram.
This research is classified into causal/associative research which explored by case study method. The measurement scale instrument in this study is the Likert scale. The sampling technique used in this study is nonprobability sampling with accidental sampling. The research method used is quantitative with SEM (Structural Equation Model) analysis techniques using WarpPLS 7.0 software.
Findings of this research is business people who use Instagram as an advertising medium are increase the interactivity, informativeness, and perceived relevance variables. Because based on the results of this study, all of these variables are the variables that affect performance expectancy, hedonic motivation, and purchase intention. Therefore, the content in advertisements on Instagram social media must be able to develop aspects of performance expectancy, hedonic motivation, interactivity, informativeness and perceived relevance so that a purchase intention arises from the audience after seeing the advertisements displayed on Instagram social media.
This research can be used as information and input for companies in making or creating quality advertising promotion strategies to generate buying interest for consumers. In addition, for companies that have limited resources and are just about to start advertising on Instagram in this study should pay attention to the implementation of the variable that is considered the most important in influencing purchase intention, namely hedonic motivation.
Keywords: Interactivity, Informativeness, Perceived Relevance, Hedonic Motivation, Performance Expectancy, Purchase Intention.