Structural Equation Model on Purchase Decision among Senior High School Students

Abstract

This study was conducted to determine the best-fit model of purchase decision among senior high school students, based on perceived value, peer influence, and social media advertising. The study used a non-experimental, quantitative, correlational research using the Structural Equation Model (SEM). The 200 senior high school students were determined using the stratified random sampling procedure. Mean, Pearson-r, Multiple Linear Regression Analysis, and Structural Equation Modeling (SEM) were used as statistical tools. Moreover, adapted survey questionnaires were used and contextualized to the local setting. The results showed that the levels of perceived value, peer influence, social media advertising, and purchase decision among senior high school students were all high. Further, when each exogenous variable was correlated with the purchase decision, perceived value, peer influence, and social media advertising were found to be significantly associated with it. Perceived value and social media advertising were also significant predictors of purchase decision. Model 5 emerged as the best-fit model for explaining purchase decision among senior high school students. It revealed a direct causal relationship between perceived value and the purchase decision. Furthermore, structure modifications revealed that the purchase decision was defined by its retained indicators: problem recognition and information search. On the other hand, perceived value was described in terms of its domains: quality, emotional, price, and social. The study's findings may serve as a significant baseline for developing consumer education programs and marketing strategies targeting senior high school students.