The Effect of Digital Marketing on the Purchase Intention: The Case of Habesha Brewery

Abstract

This thesis explores the influence of digital marketing on the purchase intention of Habesha Brewery customers, focusing on digital marketing dimensions; vividness, interactivity, information, entertainment, and incentive. The purpose of this study is to identify and analyze the impact of digital marketing on consumer behavior, specifically examining how digital marketing components contribute to purchase intention. The objectives include investigating the effects of vividness, interactivity, information, entertainment, and incentives in digital marketing content on customers' purchase intention. Employing a descriptive and quantitative research methodology, the target population consists of Habesha beer consumers in Addis Ababa who use digital media. A simple random sampling technique is employed, with a sample size of 385, following Corebetta's recommendation for an unknown population. The primary data collection method involves an online survey questionnaire with a five-item Likert scale. Results from the alpha testing phase indicate high-reliability coefficients for vividness, interactivity, information, entertainment, incentive, and purchase intention scales. The Pearson correlation matrix reveals positive associations among the independent variables, and a regression analysis demonstrates a moderate explanatory power with approximately 39.81% variance explained in purchase intention. Vividness, interactivity, information, entertainment, and incentives exhibit significant associations with purchase intention. Standardized beta coefficients offer insights into the relative importance of each predictor. Hypotheses testing supports the significant impact of vividness, interactivity, information, and entertainment on purchase intention, while the influence of incentives is marginally supported. These findings contribute to the understanding of the role of digital marketing in shaping consumer behavior and provide practical implications for marketers in optimizing digital marketing strategies.