Brand-Generated Content (BGC) and Consumer-Generated Advertising (CGA) on Instagram: The Influence of Perceptions on Purchase Intention

Generation Y individuals start to use social media as their primary tools to obtain information about product and brand. One of the most active social media in Indonesia is Instagram. Broadcasting Brand-Generated Content can be the most common marketing strategy that local fashion brands will use on Instagram. However, the previous study shows that online consumers more likely rely on information generated by other consumers (Consumer-Generated Advertising) than generated directly by marketers (Brand-Generated Content) to assist their purchase decision because they perceive consumers will provide more factual information than the advertiser. Hence, this study objective is to know how does Indonesia consumer perceive Brand-Generated Content and Consumer-Generated Advertising that has been used by a fashion brand on Instagram and which one is the most significant to influence consumer purchase intention. The sample consisted of 165 Instagram active users from Jakarta and Bandung whom voluntary agreed to participate in the online survey of this research. Finding confirmed that consumer perception of BGC and CGA has a positive influence on purchase intention on Instagram. The consumer needed BGC because it consists of important factors that could influence them to have the intention to buy: expertise, relevance, reduce risk, positive valence, usefulness, and credibility. Furthermore, the consumer also needed CGA to support the 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