DOI 10.5281/zenodo.6956054 112 | V17.I08 GENERATION Y: INFLUENCE OF ONLINE ADVERTISEMENT ON PURCHASE DECISION IN MALAYSIA TEH YU SAN 1 , ASOKAN VASUDEVAN 1* , SAM TOONG HAI 1 , ZHOU FEI 2 , CHEE- PUNG NG 1 and JASON SEE TOH SEONG GUAN 1 1 Faculty of Business and Communications, INTI International University, Persiaran Perdana BBN, Putra Nilai, Negeri Sembilan, Malaysia. 2 President office, Shinawatra University, 99 Moo 10, Bangtoey, Samkhok, Pathumthani Thailand. * Corresponding Author: asokan.vasudevan@newinti.edu.my Abstract Purpose - This paper aimed to investigate the influence of online advertising on purchase decisions, focusing on four independent variables: credibility, informativeness, hedonic, and materialism. Design/Methodology/Approach - For data collection, online questionnaires were distributed to the targeted respondents of this research, which were Generation Y between the twenty-three to thirty-nine years old, and 570 sets of data were collected and analysed. Factor analysis, reliability test, descriptive analysis, and regression analysis were conducted using SPSS software, followed by Smart PLS software as confirmatory analysis. Findings - The analysis conducted through Smart-PLS. Cronbach’s Alpha, Composite Reliability, and AVE value of the constructs were higher than the minimum acceptable level, higher than 0.7 for Cronbach’s Alpha, higher than 0.7 for Composite Reliability, and higher than 0.5 for AVE. The findings showed that H1, H2, H3 were accepted since their t-values were greater than 1.96 and the p-values were lower than 0.05. However, H4 was rejected since the t-value was 0.409 and the p-value is 0.682.The result of bootstrapping analysis provided an R2 value of 0.371 indicating that this model explained 37.1% of the data variance. Practical Implications - The outcome of this research provided a reference to markets on how to improve the performance of their online advertisement by exploiting the independent variables investigated in this research. Since all independent variables were positively connected to purchase decisions, the advertisement should not prioritize materialism- related content in advertisement over the other variables unless necessary. Originality/value- This research study was conducted during the pandemic, which provides a unique setting to examine adjustability and learning. Keywords: Online Advertisement, Purchase decision, Credibility, Informativeness, Hedonic, Materialism 1. Introduction In the modern business world, advertising had become an essential tool for business survival, and now it existed in every media that enterprises have access to. Advertisement serves the purpose of notifying, convince, and prompt consumers about the product and services offered by the enterprise. It also plays an important part in executing and realizing the goal associated with different stages in the product life cycle (Qaswa & Danish, 2019).A business can compete by incorporating different elements in their advertisement, including product messages, design, personality, frequency, and many others to capture consumer’s attention (Shaina, 2016; Madawa, Jana & Galia, 2014). The global advertising market size is growing steadily for the past ten years, from USD 339 billion in 2010 to USD 563 billion in 2019, equivalent to an average of 4% growth annually (Guttmann, 2020). It is expected that the growth will continue in 2020, increasing by another