Role of Mobile Commerce App and Social Media to Built Brand Trust in e commerce (b2c) as a Form of Brand Advertising

Innovation (online/e advertising)

Submitted by :

1.Vina Prisita M NPM 1.427.R004

Abstract
Key words : mobile commerce, social media, innovation process, e commerce, brand trust, internet, online advertising Purpose : this paper is a research to find out the effectiveness or role from mobile commerce app and social media as an innovation process in brand advertising (online brand advertising) at e commerce (b2c) business toward or to built brand trust Findings : Media selection was also significantly related to the success of brand advertising. That the advertising message and creativity are significantly related to the success of brand advertising in China Paper type : Research Paper

1. Introduction Nowadays internet has become a great invention among our society, all over the world. We use it as a tool for communication everyday. Not only for mature people but kids and teens also start to use technology of internet frequently. Since web 2.0 introduced we can communicate to each others all over world through internet. Therefore internet not a static anymore but it become a social media. Through this social media we finaly familiar with social media marketing or online advertising, its a marketing or advertising system that doesnt use a traditional channel, but its using an online programs or channel such as blog, social and profesional network, wikipedia, forum, application multimedia user - centric : Facebook, Twitter, MySpace, LinkedIn, YouTube and other technology that use web 2.0 (eley & tillet, 2009 hlm.78) to connect the company, next customers and influencer.

In the next few years Indonesia will have some rapid changes in form of consumers type that caused by 2 fundamental causes : increasing byuing power and education, and as a result there will be type of consumers called consumer 3000, this type of consumer create Broadband Hunger: Social Media Boom, the type of consumer that need high level connectivity and make online purchasing the most (Yuswohady , 2008). Besides the social media people also downloaded a lots of mobile app through internet into their gadget lately. A mobile application (or mobile app) is a software application designed to run on smartphones, tablet computers and other mobile devices. They are usually available through application distribution platforms, which are typically operated by the owner of the mobile operating system, such as the Apple App Store, Google Play, Windows Phone Store, and BlackBerry App World. Some apps are free, while others must be bought by Usually, they are downloaded from the platform to a target device, such as an iPhone, BlackBerry, Android phone or Windows Phone, but sometimes they can be downloaded to laptops or desktops.The phrase mobile commerce was originally coined in 1997 to mean "the delivery of electronic commerce capabilities directly into the consumers hand, anywhere, via wireless technology. Many choose to think of Mobile Commerce as meaning "a retail outlet in your customers pocket."According to BI Intelligence in January 2013, 29% of mobile users have now made a purchase with their phones (mobile payment today BI, 2012). Walmart estimated that 40% of all visits to their internet shopping site in December 2012 was from a mobile device (Gibu Thomas, 2012). 2. Literature Review 2.1. Innovation The evolution of social media and mobile commerce app through internet has become innovation in brand company advertising, the company use them as an online advertising for their brand. Innovation has a positive impact on the economy (Teece, 2002) and a key element within the entrepreneurial process (Schaper and Colery, 2003). When viewed as a process, innovation may also be culture specific (El Sawy et al., 2001). Innovation, or at least the firms capacity to innovate, has been shown to have a relationship with firm performance. For example, successful product and process innovation has a positive link to firm performance (Caves and Ghemawat, 1992). Innovations can also focus on processes through which products are created or delivered. Online branding or Online brand advertising is an innovation from traditional brand advertising. 2.2. Online Advertising/Marketing as a form of innovation (process) The primary advantages of e-marketing or online advertising is reducing costs and enhancing reach. The cost of an e-marketing platform is typically lower than other marketing platforms such as face-to-face salespeople or middlemen/distributors (Watson et al., 2002). In addition,e-marketing or online advertising allows firms to reach customers that may not be accessible due totemporal and locational limitations of existing distribution channels.

3. online trust (Psychological elements in online business) Online trust is one of the issues researchers, as well as practitioners, frequently associate with the success or failure of online ventures. According to Harris Interactive (2001) around 70 per cent of the US Web users are seriously concerned about the safety of

their personal information, transaction security and misuse of private consumer data. Subjects like hacking, fraud, spam and online scams frequently make headlines, raising security concerns as well as skepticism and mistrust. The physical distance, lack of personal contact and the anonymity of the Internet are also factors further increasing the consumers anxiety and risk perceptions. Online firms, especially those lacking strong brand recognition and physical presence, should not underestimate the importance of trust as a Web experience element. 3.1. Brand Trust

Brand trust is defined as the willingness of the average consumer to rely on the ability of the brand to perform its stated function (A. Chaudhuri, and M. B. Holbrook,2001). In this study, brand trust is simply the trust a consumer has in a specific brand, a definitionn based on (Ha, 2004). The Values Institute, which conducted the study, identified five values that influence trust in a brand: ability (company performance); concern (care for consumers, employees and community); connection (sharing consumers' values); consistency (dependability of products/services); and sincerity (openness and honesty) (Paula Andruss, 2012). From the previous research we know about what correlates successful brand advertising factors are but it doesnt say about the media spesifically, but only in general way of media (traditional), how brand advertising delievered to be successful, specially in e commerce business (b2c) context. Therefore this research purpose is : To find out how the innovation (process) of brand advertising (which is now becoming online brand advertising) using mobile commerce app and social media can built brand trust among consumer. As we know that a brand trust and brand is important key element in advertising, brand trust will built the purchasing amount and for more it will create the Loyalti from our customer.

3.2. Modelling A modelling picture from the process of online advertising as a form of innovation (process) and brand trust :

Modelling

e-commerce