The popularity of social media has contributed to the development of the Influencer Economy, a new economic model that has significantly changed consumer behavior. In Malaysia, Instagram is the second most popular social media platform, with an extremely high penetration rate among the youth population. Five factors can be used to classify the perceived value of Instagram advertising: functional, social, emotional, epistemic, and economic. This paper categorizes the perceived value of Instagram advertising into functional, social, emotional, epistemic, and economic values, and develops a conceptual model to explore the relationships between perceived value, persuasion knowledge, and purchase intention. Based on the results of a questionnaire survey of 358 Malaysian respondents, this study empirically analyses the mechanism of perceived value on purchase intention, interpreting the mediating role of persuasive knowledge, using the PLS-SEM model. The study results show that emotional, epistemic, and economic values significantly impact purchase intention, while social value was found to be insignificant. This study identified PK as a crucial mediator in this process. The study provides valuable insights for brands and businesses seeking to enhance their marketing efforts through advertising.
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