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Kania Oktaviana Winarno, Indrawati

IMPACT OF SOCIAL MEDIA MARKETING AND


ELECTRONIC WORD OF MOUTH (E-WOM) ON
PURCHASE INTENTION

JAM Kania Oktaviana Winarno


20, 3 Indrawati
Received, March ‘22 Management Business Telecommunication and Informatics (MBTI), Telkom University,
Revised, April ‘22 Indonesia
August ‘22
Accepted, August ‘22

Abstract: The present quantitative research is intended to conduct an investigation into


the effect of social media marketing and electronic word of mouth (E-WOM), especially on
Instagram, on the purchase intention of Sunday Bowl Cereal Club products. As for the
sampling strategy, the non-probability purposive sampling method was employed in this
research. Samples were drawn from up to 300 respondents. To analyze the data, this re-
search employed the Structural Equation Modeling (SEM) models that are processed using
SmartPLS 3.2.9. The results show that social media marketing has a positive and significant
relationship to E-WOM. Age and gender moderate the relationship between social media
marketing and E-WOM. Social media marketing has a positive and significant relationship
on purchase intention. Age and gender do not moderate the relationship between social
media marketing and purchase intention. E-WOM has a positive and significant relation-
ship on purchase intention. Age moderate the relationship between E-WOM and purchase
intention. Gender do not moderate the relationship between E-WOM and purchase inten-
tion. Social media marketing has a positive and significant relationship on purchase inten-
tion through E-WOM. Age moderate the relationship between Social media marketing and
purchase intention through E-WOM. Gender do not moderate the relationship between
social media marketing and purchase intention through E-WOM. Sunday Bowl Cereal Club
Journal of Applied needs to pay attention to the framework in the customer life cycle: Plan-Reach-Act to
Management (JAM) increase their social media marketing. Then Sunday Bowl Cereal Club needs to improve its
Volume 20 Number 3, marketing mix through E-WOM in encouraging purchase intention from potential custom-
September 2022 ers.
Indexed in DOAJ -
Directory of Open Access
Journals, ACI - ASEAN Keywords: Electronic Word of Mouth (E-WOM), Purchase Intention, Social Media Market-
Citation Index, SINTA - ing
Science and Technology
Index, and Google
Scholar. Cite this article as: Winarno, K. O. and Indrawati. 2022. Impact of Social Media Marketing
and Electronic Word of Mouth (E-WOM) on Purchase Intention. Jurnal Aplikasi Manajemen,
Volume 20, Number 3, Pages 668–683. Malang: Universitas Brawijaya. DOI: http://dx.doi.org/
10.21776/ub.jam.2022.020.03.15.

Corresponding Author:
Kania Oktaviana Winarno, In line with the times, the become part of the lifestyle and recreation of the
Management Business Tele- culinary industry in Indone- community. As time goes by with technological de-
communication and
Informatics (MBTI), Telkom sia continues to experience velopments, people experience changes in the tran-
University, Indonesia, DOI: rapid development. Culinary sition from hobbies to lifestyles. The existence of
http://dx.doi.org/10.21776/
ub.jam.2022.020.03.15 is also considered to have this phenomenon causes hangout places such as

668 JOURNAL OF APPLIED MANAGEMENT VOLUME 20 NUMBER 3 SEPTEMBER 2022


668
Impact of Social Media Marketing and Electronic Word of Mouth (E-WOM) on Purchase Intention

cafes to become more creative in improving to cre- has 85 million active users in Indonesia. Those who
ate a cool and interesting place, both in terms of are actively involved in using Instagram on a daily
food presentation and visuals. The rise of the cafe basis reach 39.9% of the total population in Indone-
in Indonesia is accompanied by a specific theme sia of 274.9 million people. Of the total 85 million
and purpose, one of which is that a café must have Instagram social media users in Indonesia, 52.4%
a different concept, such as live music, affordable of them are female and 47.6% are male.
prices, and unique menu offerings that have many Setianingtyas and Nurlaili (2020) claims that social
choices. As information in the Open Data of West media, especially Instagram, has become a digital
Java Province (2021), which was reported from the marketing medium that is widely used by entrepre-
website, it is known that there has been an increas- neurs to help market their business.
ing trend in the number of cafes in the last eight In this study, we chose Sunday Bowl Cereal
years, of which a total of 2,548 cafes are located in Club which also uses Instagram as the main mar-
Bandung. Interestingly, compared to 2019, there was keting tool to promote their products. At the time of
a rise in the overall number of 142 cafes in Bandung the study, there are numerous similar cereal bar cafes
in 2020. that market their products through Instagram. The
With the continued growth of the digital eco- main competitors to Sunday Bowl Cereal Club,
system, it supports the market potential of the culi- namely Day Dreaming, Cereal Box, and Morning
nary industry. The internet penetration and quality Guzel, also use Instagram to promote their prod-
in Indonesia has been developing rapidly and now ucts. However, the number of followers of Sunday
has reached almost half the population. Kemp (2021) Bowl Cereal Club is far higher than their competi-
stated that the number of social media users in In- tors, as can be seen in Table 1.
donesia is quite significant. Instagram, for example,

Table 1. Cereal Bar Cafes Instagram Comparison

No Brand Instagram Account Posts Followers


1. Sunday Bowl Cereal Club @sundaybowl 117 26.520
2. Morning Guzel @morningguzel 51 6.006
3. Day Dreaming @daydreamingyogya 193 4.735
4. Cereal Box @cerealbox.id 75 4.497
5. Maltyans @maltyans 81 2.502
6. Cappio Cereal & Coffee @cappiocerealcoffee 19 1.491
7. Cereal Land @cerealland.id 9 1.427
8. Crunch Me @crunchme_bandung 90 1.066
Source: Processed Data, 2022

In addition to using the social media marketing, diverse, whether it is consumers who directly pro-
Sunday Bowl Cereal Club has also adopted an elec- vide reviews through the comments section on Sun-
tronic word of mouth (E-WOM) through its day Bowl Cereal Club posts, tagging them at the
Instagram account to promote its products. As can location of the uploaded photo or video, or share
be seen through the official Sunday Bowl Cereal their content via Instagram Stories. The existence
Club’s Instagram account, the E-WOM can be seen of this E-WOM can be utilized by Sunday Bowl
where many of its customers voluntarily share their Cereal Club as a strategy in attracting new poten-
experiences in consuming products from Sunday tial customers while browsing the information on
Bowl Cereal Club. The E-WOM that occurs is quite their Instagram account. Merdeka (2019) cites the

ACCREDITED by Ministry of Research and Technology Republic of Indonesia, No 200/M/KPT/2020 ISSN: 1693-5241 669
Kania Oktaviana Winarno, Indrawati

success of Sunday Bowl Cereal Club, which is now gies through social media. Data shows there was a
famous in the social media community, as an ex- decrease in intensity and frequency of upload on
ample of the E-WOM successfully carried out. This their Instagram account in 2021 compared to the
is also what caused Sunday Bowl Cereal Club goes previous year. There was only 25 uploaded con-
viral in early 2020. This situation makes Sunday Bowl tents in the form of photo or video in 2021, a de-
Cereal Club crowded with visitors every day, so it crease of 61.54% from 2020. A decrease in
is not uncommon for visitors who come to have to Instagram engagement caused by other factors was
enter the waiting list first and queue up to a dozen also observed. The total number of likes in 2021
guests. decreased by 26,270 (30.46%) compared to the pre-
The problem that emerged at Sunday Bowl vious year. In addition, other impacts also have an
Cereal Club was identified that there was a decrease impact on a decrease in engagement which causes
in sales figures which indicated that there was a the overall number of likes in 2021 to decrease by
decrease in consumers’ buying intention for their 26,270 or 30.46% from 2020. Starting from August
products. Sunday Bowl Cereal Club sales figures in 2021 to December 2021, the sales declined drasti-
2021 showed a significant decline from the previ- cally, coinciding with zero upload in Sunday Bowl
ous year. The sales figures in 2021 are also classi- Cereal Club’s Instagram account. In addition, Sun-
fied as the worst sales figures because previously day Bowl Cereal Club stopped posting Instagram
the sales figures from Sunday Bowl Cereal Club ads, which they did in January and May 2021. The
could always far exceed the sales increase target decrease of social media marketing activities cer-
that had been set. The decline in sales figures that tainly impacted the level of electronic word of mouth
occurred at Sunday Bowl Cereal Club was due to of its customer. This can be seen in the number of
factors that influenced the purchase intention of the comments on the Instagram account, which de-
public towards Sunday Bowl Cereal Club products. creased 79.69% from 2020 to only 251 comments
One of the factors that influenced the decline in 2021.
in sales figures was the lack of promotional strate-

Source: Sunday Bowl Cereal Club’s Internal Data, 2022

Figure 1. Sunday Bowl Cereal Club’s Data Sales in 2020-2021

670 JOURNAL OF APPLIED MANAGEMENT VOLUME 20 NUMBER 3 SEPTEMBER 2022


Impact of Social Media Marketing and Electronic Word of Mouth (E-WOM) on Purchase Intention

Entertainment
E-WOM
Interaction

Social Media Purchase


Trendiness
Marketing Intention

Customization

Perceived Risk Age Gender

Source: Processed Data, 2022


Figure 2. Conceptual Research Framework

This study aims to investigate the effect of so- spondents. Jinang et al. (2019) revealed that gen-
cial media marketing and electronic word of mouth der affects a person’s attitude regarding social me-
(E-WOM), especially on Instagram, on the purchase dia marketing communications where men show a
intention of Sunday Bowl Cereal Club product. The less favorable attitude than women. Karatsoli and
results of this study are expected to provide infor- Nathanail (2020) stated that women are more likely
mation, reviews, and recommendation for Sunday to trust content on social media, perceive informa-
Bowl Cereal Club in order to develop suitable so- tion from other people as more trustworthy than
cial media marketing and E-WOM strategies to in- men. Torres et al. (2018) stated that regarding the
crease the level of customers’ purchase intention. moderating effect of the gender variable, significant
Additionally, the study serves to increase the library differences were found between men and women
of studies in social marketing strategies and can be in receiving electronic word of mouth information
used as a reference for future studies in similar fields and buying behavior. Therefore, a hypothesis for-
or industries. mulation is designed as follows:
Hypothesis 1: Social media marketing has a posi-
HYPOTHESIS DEVELOPMENT tive and significant effect on electronic word
Dewi et al. (2021) and Pramudhita and of mouth.
Madiawati (2021) have shown that digital media Hypothesis 1a: The effect of social media market-
marketing, especially those in social media, retain a ing on electronic word of mouth is moderated
positive and strong correlation with E-WOM. A study by age.
carried out by Dewi et al. (2021) elaborates that Hypothesis 1b: The effect of social media market-
social media users who see the product have a higher ing on electronic word of mouth is moderated
likelihood of indirectly talking about the product and by gender.
promoting it to other consumers who do not use
social media. Muhammad et al. (2021) and Sinaga and
Hazzam (2021) stated that age is a strong de- Sulistiono (2020) have provided an explanation that
terminant of social media engagement and use. marketing through social media hold a great effect
Jinang et al. (2019) suggested that social media mar- on consumers’ buying intention. Sinaga and
keting is mostly used and accepted by younger re- Sulistiono (2020) had clearly illustrated that when

ACCREDITED by Ministry of Research and Technology Republic of Indonesia, No 200/M/KPT/2020 ISSN: 1693-5241 671
Kania Oktaviana Winarno, Indrawati

there is a significant marketing activity on social will be more effective in influencing purchasing de-
media, it will incite consumers’ buying intention. At cisions and is needed when targeting young con-
the same time, the existence of social media can be sumers, especially women. Furthermore, Das and
utilized as a creative and effective opportunity to Subudhi (2016) also stated that the 18-25 year age
promote certain products. group (Millennials and Gen Z) showed positive be-
Jinang et al. (2019) suggested that social me- havior to check online reviews on social media be-
dia marketing is mostly used and accepted by fore making a purchase. This age group was also
younger respondents. Hazzam (2021) stated that found to be very active in sharing experiences and
age is a strong determinant of social media engage- influencing the purchasing decisions of others in their
ment and use. Jinang et al. (2019) revealed that family, friends and social groups. Therefore, a hy-
gender affects a person’s attitude regarding social pothesis formulation is designed as follows:
media marketing communications where men show Hypothesis 3: Electronic word of mouth has a posi-
a less favorable attitude than women. Karatsoli and tive and significant effect on purchase inten-
Nathanail (2020) stated that women are more likely tion.
to trust content on social media, perceive informa- Hypothesis3a: The effect of electronic word of
tion from other people as more trustworthy than mouth on purchase intention is moderated by
men. Torres et al. (2018) stated that regarding the age.
moderating effect of the gender variable, significant Hypothesis3b: The effect of electronic word of
differences were found between men and women mouth on purchase intention is moderated by
in receiving electronic word of mouth information gender.
and buying behavior. Therefore, a hypothesis for-
mulation is designed as follows. Erkan and Evans (2014) have shown that so-
Hypothesis 2: Social media marketing has a posi- cial media marketing retain a positive and strong
tive and significant effect on purchase inten- correlation with purchase strong intention through
tion. E-WOM. Furthermore, Muhammad et al. (2021)
Hypothesis 2a: The effect of social media market- Sinaga and Sulistiono (2020) and Lontoh, et al.
ing on purchase intention is moderated by age. (2021) have shown that social media marketing and
Hypothesis 2b: The effect of social media market- E-WOM have a joint effect on retain a positive and
ing on purchase intention is moderated by gen- strong correlation with purchase intention. Social
der. media influences the relationship between consum-
ers and brands, and between consumers and other
Muhammad et al. (2021) and Sinaga and consumers positively. Social media activities causes
Sulistiono (2020) have shown that E-WOM can E-WOM to happen and consumers distribute infor-
possess a consequential effect on consumers’ buy- mation related to the brand to their friends and people
ing intention. Sinaga and Sulistiono (2020) shows around them. This distribution generates interest and
that consumers’ buying attention increased signifi- influence them to buy the same brand. Therefore, a
cantly when they receive more E-WOM. Moreover, hypothesis formulation is designed as follows:
the implementation of promotional strategies through Hypothesis 4: Social media marketing has a posi-
E-WOM on social media has a much higher effec- tive and significant effect on purchase inten-
tiveness value because it can reach the wider com- tion through electronic word of mouth.
munity. Hypothesis 4a: The effect of social media market-
Ismagilova et al. (2020) stated that there is a ing on purchase intention through electronic
moderating effect of age on the relationship between word of mouth is moderated by age.
purchase intention. Jorgensen and Ha (2019) Hypothesis 4b: The effect of social media market-
showed that the use of electronic word of mouth ing on purchase intention through electronic
word of mouth is moderated by gender.

672 JOURNAL OF APPLIED MANAGEMENT VOLUME 20 NUMBER 3 SEPTEMBER 2022


Impact of Social Media Marketing and Electronic Word of Mouth (E-WOM) on Purchase Intention

METHOD noulli formula. The sample minimum in this study is


Based on the background, problem formulation, 272 respondents based on the calculations results.
This Study used quantitative methods based on the Therefore, the researchers rounded the sample num-
background, problem formulation, and research ob- ber to 300 respondents in an attempt to make the
jectives. It as a method in research that tries to carry results obtained more precise. To collect data when
out accurate measurements of behavior, cognition, conducting research, the technique for sampling used
opinions, or attitudes (Indrawati, 2015). The aim is is non-probability sampling. The source of research
to describe and explain the effect of the indepen- data, primary data is from a questionnaire using a
dent variables, that is Social Media Marketing, in- Likert, then distributed online on Google Forms.
tervening variables, that is Electronic Word of Mouth,
towards the dependent variable, that is, Purchase RESULTS
Intention, so that researchers use descriptive and Outer Model Test
causal research. Indrawati (2015) stated that the factor loading
The population taken for use in this research value on the latent variable with its indication shows
are Instagram users who follow Sunday Bowl Ce- the degree of convergence of validity where the
real Club’s Instagram account for at least 3 months predictive value is greater than 0.70. The result is
and have seen e Sunday Bowl Cereal Club market- considered by determining the loading value on the
ing content on the platform. Furthermore, to find needed construct, which has to be more superior
out the total sample, the researcher used the Ber- relative to the loading value of different constructs.

Source: Processed Data, 2022


Figure 3. Outer Model SEM

ACCREDITED by Ministry of Research and Technology Republic of Indonesia, No 200/M/KPT/2020 ISSN: 1693-5241 673
Kania Oktaviana Winarno, Indrawati

Table 2. Result of Outer Model Test

Factor Validity Composite Cronbach’s Reliability


Variable Indicator Loading AVE Test Reliability Alpha Test

ENT1 0,727 0,538 Valid 0,946 0,939 Reliable


ENT2 0,715 Valid
ENT3 0,757 Valid
INT1 0,741 Valid
INT2 0,713 Valid
Social Media INT3 0,719 Valid
Marketing TRN1 0,754 Valid
(X1) TRN2 0,728 Valid
TRN3 0,710 Valid
CUS1 0,739 Valid
CUS2 0,717 Valid
CUS3 0,770 Valid
PRI1 0,745 Valid
PRI2 0,742 Valid
PRI3 0,726 Valid
EWM1 0,761 0,573 Valid 0,904 0,876 Reliable
EWM2 0,767 Valid
Electronic EWM3 0,768 Valid
Word of EWM4 0,734 Valid
Mouth (X2) EWM5 0,786 Valid
EWM6 0,747 Valid
EWM7 0,737 Valid
PCI1 0,786 0,621 Valid 0,891 0,848 Reliable
PCI2 0,831 Valid
Purchase
PCI3 0,753 Valid
Intention (Y)
PCI4 0,798 Valid
PCI5 0,770 Valid

Source: Processed Data, 2022

Table 2 showed that the values have described search criteria for convergent validity have been
that all of the variables in this research keep the met. Due to these results, therefore is admissible
Composite Reliability and Cronbach’s Alpha values that each and every indicator of the research vari-
beyond 0,70. Moreover, the data in the table shows able can acknowledge as reliable, precise, constant,
that each variable in the research score has an AVE and suitable to assess each variable in this research.
score 0.50. Therefore, all the variables in the re-

674 JOURNAL OF APPLIED MANAGEMENT VOLUME 20 NUMBER 3 SEPTEMBER 2022


Impact of Social Media Marketing and Electronic Word of Mouth (E-WOM) on Purchase Intention

Source: Processed Data, 2022


Figure 4. Inner Model SEM

Table 3. Hypothesis Testing Results (Main Model)

Variable Original Sample Standard T P Hypothesis


Relationship Sample Mean Deviation Statistics Values Conclusion
SMM  EWM 0,702 0,703 0,035 20,280 0,000 H0 rejected
SMM  PCI 0,211 0,214 0,077 2,731 0,007 H0 rejected
EWM  PCI 0,455 0,462 0,076 5,980 0,000 H0 rejected
SMM  EWM  PCI 0,319 0,325 0,056 5,733 0,000 H0 rejected
Source: Processed Data, 2022

Inner Model Test and p-Values must be below 0,050. In order to test
Figure 4 elaborates that t analyses each and the relevance of predictive modeling in assessing
every exogenous up to the endogenous latent vari- the structural model, the t-test between both inde-
able. The inner model is determined by means of pendent and dependent variables is employed. More-
R2 to calculate the extent of variance in the change over, conceding that the t-value exceeds the t-table
that occurred between both independent and de- value, hence the alternative hypothesis is accept-
pendent variables. able. (1) Social media marketing has a positive and
Acceptance of the research hypothesis requires significant effect on E-WOM with t-value 20,280 >
that the t-value is greater than 1,645 for main model 1,645 and p-values 0,000 < 0,050. This means hy-

ACCREDITED by Ministry of Research and Technology Republic of Indonesia, No 200/M/KPT/2020 ISSN: 1693-5241 675
Kania Oktaviana Winarno, Indrawati

pothesis 1 accepted. (2) Social media marketing 1,645 and p-values 0,000 < 0,050. This means hy-
has a positive and significant effect on purchase pothesis 3 accepted. (4) Social media marketing
intention with t-value 2,731 > 1,645 and p-values has a positive and significant effect on purchase
0,007 < 0,050. This means hypothesis 2 accepted. intention through E-WOM with t-value 5,733 > 1,645
(3) E-WOM has a positive and significant effect on and p-values 0,000 < 0,050. This means hypothesis
purchase intention with t-value t-value of 5,980> 4 accepted.

Table 4. Hypothesis Test Result (Moderating Age)

Path Path Standard


Variable
Coefficient Coefficient Deviation t-Value p-Values Hypothesis
Relation-
Original Mean Conclusion
ship
Young Adult Young Adult Young Adult Young Adult Young Adult
SMM 
EWM 0,669 0,706 0,672 0,743 0,041 0,071 16,457 9,955 0,000 0,000 H0 rejected
SMM 
PCI 0,235 -0,126 0,241 -0,154 0,079 0,278 2,977 0,454 0,003 0,650 H0 accepted
EWM 
PCI 0,377 0,665 0,378 0,687 0,081 0,267 4,633 2,486 0,000 0,013 H0 rejected
SMM 
EWM  PCI 0,252 0,469 0,254 0,507 0,056 0,207 4,522 2,263 0,000 0,024 H0 rejected
Source: Processed Data (2022)

Table 5. Hypothesis Test Result (Moderating Gender)

Path Path Standard


Variable
Coefficient Coefficient Deviation t-Value p-Values Hypothesis
Relation-
Original Mean Conclusion
ship
Male Female Male Female Male Female Male Female Male Female
SMM 
EWM 0,640 0,692 0,658 0,697 0,039 0,058 16,377 11,975 0,000 0,000 H0 rejected
SMM 
PCI 0,078 0,316 0,076 0,333 0,120 0,109 0,655 2,901 0,513 0,004 H0 accepted
EWM 
PCI 0,482 0,230 0,505 0,233 0,096 0,122 5,021 1,888 0,000 0,060 H0 accepted
SMM 
EWM  PCI 0,308 0,159 0,332 0,161 0,066 0,085 4,665 1,869 0,000 0,062 H0 accepted
Source: Processed Data (2022)

Acceptance of the research hypothesis requires able. The effect of social media marketing on elec-
that the t-value is greater than 1,960 for moderating tronic word of mouth is moderated by age with t-
variable and p-Values must be below 0,050. More- value >1,960 and p-values < 0,050. The effect is
over, conceding that the t-value exceeds the t-table stronger in the younger group than the adult group.
value, hence the alternative hypothesis is accept- This means hypothesis 1a accepted. The effect of

676 JOURNAL OF APPLIED MANAGEMENT VOLUME 20 NUMBER 3 SEPTEMBER 2022


Impact of Social Media Marketing and Electronic Word of Mouth (E-WOM) on Purchase Intention

social media marketing on purchase intention is not outside the model proposed in the study.The R² score
moderated by age with t-value < 1.960 and p-val- for the purchase intention is 0.386, indicating that
ues > 0,050. This means hypothesis 2a rejected. The the model is categorized as moderate. Purchase in-
effect of E-WOM on purchase intention is moder- tention is influenced by the social media marketing,
ated by age with t-value >1,960 and p-values < 0,050. E-WOM together as much as 38.6%, while the re-
The effect is stronger in the younger group than the maining 61.4% is explained by other variables out-
adult group. This means hypothesis 3a accepted. side the model proposed in the study.
The effect of social media marketing on purchase
intention through E-WOM is moderated by age with DISCUSSION
t-value < 1.960 and p-values < 0,050. This means Social Media Marketing to Electronic Word
hypothesis 4a accepted. of Mouth
Acceptance of the research hypothesis requires
Regarding potential customer behavior towards
that the t-value is greater than 1,960 for moderating
Sunday Bowl Cereal Club product, E-WOM is highly
variable and p-Values must be below 0,050. More-
influenced by social media marketing in a positive
over, conceding that the t-value exceeds the t-table
and significant manner. Social media users who see
value, hence the alternative hypothesis is accept-
the product have a higher probability of indirectly
able. The effect of social media marketing on elec-
talking about the product and promoting it to con-
tronic word of mouth is moderated by gender with
sumers. As specified by Dewi et al. (2021), conse-
t-value > 1.960 and p-values < 0,050. The effect is
quently, the utilization of social media and the possi-
stronger in the male group than the female group.
bility of a certain product becoming public’s topic
This means hypothesis 1b accepted. The effect of
discussion are inextricably linked. To put it another
social media marketing on purchase intention is not
way, increased use of social media is expected to
moderated by gender is not moderated by age with
have greater E-WOM at the same time. In addi-
t-value < 1.960 and p-values > 0,050. This means
tion, the representation of the relationship between
hypothesis 2b rejected. The effect of E-WOM on
social media marketing and E-WOM is practicable
purchase intention is not moderated by gender with
within the company’s efforts to increase customer
t-value < 1.960 and p-values > 0,050. This means
exposure to its products. Therefore, it is very im-
hypothesis 3b rejected. The effect of social media
portant for Sunday Bowl Cereal Club to form pro-
marketing on purchase intention through E-WOM
motions that are able to get public attention and cre-
is not moderated by gender with t-value < 1.960
ate interest in order to support customers to talk
and p-values > 0,050. This means hypothesis 4b
about the product and promote it to other potential
rejected.
customers.

Table 6. R2 Score Social Media Marketing to Electronic Word


of Mouth Moderated by Age
Construct R2 Conclusion
When it comes to prospective customers’ be-
Electronic Word of Mouth 0,493 Moderate havior toward Sunday Bowl Cereal Club products,
Purchase Intention 0,386 Moderate social media marketing which is moderated by age,
Source: Processed Data (2022) influences E-WOM significanly and shows a stron-
ger effect on the younger group. As specified by
Hazzam (2021), age is a strong determinant of so-
Table 6 described that the R² score for the E- cial media engagement and use. Young consumers,
WOM is 0.493, indicating that the model is catego- especially millennials and young generation Z are
rized as moderate. E-WOM is influenced by the the consumers who are the most engaged on the
social media marketing as much as 49.3%, while social media platform on the Instagram social net-
the remaining 50.7% is explained by other variables work. Millennials use Instagram to find information

ACCREDITED by Ministry of Research and Technology Republic of Indonesia, No 200/M/KPT/2020 ISSN: 1693-5241 677
Kania Oktaviana Winarno, Indrawati

about a product and interact with other consumers. et al. (2020) and Nguyen et al. (2020) aslo stated
As specified by Jinang et al. (2019), social media that social media marketing affect purchase inten-
marketing is mostly used and accepted by younger tions. As specified by Martinus and Anggraini (2018),
respondents. Therefore, it is very important for Sun- social media marketing can increase consumer con-
day Bowl Cereal Club to form a promotional effort fidence in the product, causing a desire to buy. If
that is focused on its young customers through its promotion through social media increases, the in-
Instagram account so that it can encourage the cre- terest in buying will also increase. Therefore, it is
ation of positive electronic word of mouth. very important for Sunday Bowl Cereal Club to form
promotions that are able to get public attention and
Social Media Marketing to Electronic Word create interest to encourage purchases.
of Mouth Moderated by Gender
When it comes to prospective customers’ be- Social Media Marketing to Purchase Inten-
havior toward Sunday Bowl Cereal Club products, tions Moderated by Age
social media marketing which is moderated by gen- When it comes to prospective customers’ be-
der, influences E-WOM significanly and showed a havior toward Sunday Bowl Cereal Club products,
stronger influence in the male group. As specified social media marketing which is moderated by age,
by Jinang et al. (2019), gender affects a person’s influences purchase intention insignificantly. As
attitude regarding social media marketing commu- specified by Jinang et al. (2019), age did not show
nications. As specified by Karatsoli and Nathanail significant differences regarding attitudes in social
(2020), uploads on social media accounts play an media marketing communications towards purchase
important role in the final purchase decision and intention. As specified by Khaleeli (2020), demon-
depend on gender. Torres et al. (2018) stated that strates that age, as a consume demographic char-
regarding the moderating effect of the gender vari- acteristic variable, has no moderating effect on the
able, significant differences were found between connection between marketing activity on social
men and women in receiving electronic word of media and consumers’ purchase intention. There-
mouth information and buying behavior. Therefore, fore, Sunday Bowl Cereal Club can form promo-
it is very important for Sunday Bowl Cereal Club to tional efforts without focusing on certain age groups
form a promotional effort that is focused on male to encourage product purchases.
customers through its Instagram account so that it
can encourage the creation of positive electronic Social Media Marketing to Purchase Inten-
word of mouth. tions Moderated by Gender
When it comes to prospective customers’ be-
Social Media Marketing to Purchase Inten- havior toward Sunday Bowl Cercal Club products,
tions social media marketing, which is influenced by gen-
Regarding prospective customers’ behavior to- der, influences purchase intention insignificantly. As
wards Sunday Bowl Cereal Club product, purchase specified by Jinang et al. (2019), gender does not
intention is highly influenced by social media mar- show a large influence on purchasing (behavioral
keting in a positive manner. Social media marketing attitudes) and preferences (affective attitudes) in
has the ability to increase consumer confidence in a terms of social media marketing communications
product, causing a desire to buy. If promotion through towards purchase intention. As specified by Khaleeli
social media increases, the interest in buying will (2020), demonstrates that gender, as a consumer
also increase. As specified by Khan (2019), when demographic characteristic variable, has no moder-
consumers receive messages commercially through ating effect on the interrelation between the mar-
social media, consumers will receive information keting activity on social media and consumer’s pur-
about the brand and this affects consumers’ buying chase intentions. Therefore, Sunday Bowl Cereal
intentions significantly. Other study by Moslehpour Club can form promotional efforts without focusing

678 JOURNAL OF APPLIED MANAGEMENT VOLUME 20 NUMBER 3 SEPTEMBER 2022


Impact of Social Media Marketing and Electronic Word of Mouth (E-WOM) on Purchase Intention

on certain gender groups to encourage product pur- before making a purchase. This age group was also
chases. found to be very active in sharing experiences and
influencing the purchasing decisions of others in their
Electronic Word of Mouth to Purchase Inten- family, friends and social groups. Therefore, it is
tion very important for Sunday Bowl Cereal Club to form
Regarding prospective customers’ behavior to- a promotional effort that is focused on its young
wards Sunday Bowl Cereal Club product, purchase prospective customers via E-WOM to encourage
intention is significantly influenced by E-WOM in a product purchases.
positive manner. As specified by Perkasa et al.
(2020), feedback from other customers in the form Electronic Word of Mouth to Purchase Inten-
of comments or reviews contributes to the purchas- tions Moderated by Gender
ing decision-making process. In other words, posi- When it comes to prospective customers’ be-
tive online feedback might improve the likelihood of havior toward Sunday Bowl Cereal Club products,
purchase intentions. Moreover, purchase intention E-WOM which is influenced by gender, influences
is influenced by E-WOM in a strong manner. As purchase intention insignificantly. As specified by
specified by Sinaga and Sulistiono (2020), gener- Abubakar, et al. (2016), electronic word of mouth
ally, after consumers purchase a product, they share in relation to influencing purchase intention has the
their perceptions of the product’s perceived ben- same effect for men and women. The credibility of
efits: surely, this is based on the consumer’s own electronic word of mouth messages is also impor-
exper ience. Other research by Arif (2019), tant for both men and women. Therefore, it is very
Pramudita and Sitinjak (2021), and Hidayat (2021) important for Sunday Bowl Cereal Club to form a
also stated that E-WOM affect purchase intention. promotional effort without focusing on certain gen-
The more E-WOM received by customers makes der groups through E-WOM to encourage product
the greater the effect on purchase intention. Due to purchases.
its ability to reach a wider community, the applica-
tion for Sunday Bowl Cereal Club’s promotional Social Media Marketing to Purchase Inten-
strategies via E-WOM that is carried out voluntar- tions through Electronic Word of Mouth
ily by its customers so that it can encourage other Regarding prospective customers’ behavior to-
potential customers to also make product purchases. wards Sunday Bowl Cereal Club product, purchase
intention is significantly influenced by social media
Electronic Word of Mouth to Purchase Inten- marketing through E-WOM in a positive manner.
tions Moderated by Age As specified by Sinaga and Sulistiono (2020), Com-
When it comes to prospective customers’ be- ments on social media increase the amount of in-
havior toward Sunday Bowl Cereal Club products. formation on the brand available in public space and
E-WOM which is influenced by age, influences help generate interest for people to buy the prod-
purchase intention significantly. As specified by ucts. Promotions and campaigns are also factors
Ismagilova et al. (2020) there is a moderating ef- affecting people’s decision to purchase a product.
fect of age on the relationship between purchase In doing marketing campaign through social media
intention. As specified by Jorgensen and Ha (2019), promotions and E-WOM, the brand must pay at-
by focusing on young consumers, particularly fe- tention to the reviews from customers or potential
males, the E-WOM through the digital world, espe- customers. As specified by Lontoh et al. (2021),
cially social media, is expected to be far more ef- pairing social media marketing and E-WOM to-
fective and essential (Jorgensen and Ha, 2019). Das gether creates a bigger impact to customers’ pur-
and Subudhi (2016) also stated that the 18-25 year chase intention All of these also applies to Sunday
age group (Millennials and Gen Z) showed positive Bowl Cereal Club. Therefore, Sunday Bowl Cereal
behavior to check online reviews on social media Club needs to create social media promotions and

ACCREDITED by Ministry of Research and Technology Republic of Indonesia, No 200/M/KPT/2020 ISSN: 1693-5241 679
Kania Oktaviana Winarno, Indrawati

campaigns that generates and improves E-WOM. CONCLUSIONS


This will in turn promote the product to other poten- Social media marketing has a positive and sig-
tial customers, increase the interest in the brand, nificant relationship to E-WOM. Age and gender
and increase the interest in buying the product. moderate the relationship between social media
marketing and E-WOM. Meanwhile, Social media
Social Media Marketing to Purchase Inten- marketing has a positive and significant relationship
tions through Electronic Word of Mouth Mod- on purchase intention. Age and gender do not mod-
erated by Age erate the relationship between social media mar-
When it comes to prospective customers’ be- keting and purchase intention. Further, E-WOM has
havior toward Sunday Bowl Cereal Club products, a positive and significant relationship on purchase
social media marketing which is influenced by age, intention. Age moderate the relationship between
influences purchase intention significantly through E-WOM and purchase intention. Gender do not
E-WOM. As specified by Jinang et al. (2019), so- moderate the relationship between E-WOM and
cial media marketing is mostly used and accepted purchase intention. Lastly, social media marketing
by younger respondents. As specified by Ismagilova has a positive and significant relationship on pur-
et al. (2020) there is a moderating effect of age on chase intention through E-WOM. Age moderate the
the relationship between purchase intention. Das and relationship between Social media marketing and
Subudhi (2016) also stated that the 18-25 year age purchase intention through E-WOM. Gender do not
group (Millennials and Gen Z) showed positive be- moderate the relationship between social media
havior to check online reviews on social media be- marketing and purchase intention through E-WOM.
fore making a purchase. Therefore, it is very im-
portant for Sunday Bowl Cereal Club to form a so- IMPLICATIONS
cial media promotional effort that is focused on the The most important factor in predicting purchase
young group through through the creation of elec- intention was E-WOM, where E-WOM is also
tronic word of mouth so that it can encourage pur- caused by activities on social media marketing.
chases. When a customer sees a high level of customer in
social media, they will find it more engaging and
Social Media Marketing to Purchase Inten- useful to follow. In turn, this will increase their in-
tions through Electronic Word of Mouth Mod- terest in purchasing the product talked about by the
erated by Gender other customers. Based on the findings of this study,
When it comes to prospective customers’ be- social media marketing will have a stronger impact
havior toward Sunday Bowl Cereal Club products, on purchase intention if it is mediated by E-WOM.
social media marketing which is influenced by age, Therefore, business in this study should focus on
influences purchase intention insignificantly through implementing this variable which is thought to be
E-WOM. As specified by Jinang et al. (2019), gen- most important in influencing purchase intention. As
der does not show a large influence on purchasing a result, social media marketing on Instagram should
(behavioral attitudes) and preferences (affective be performed in a way that retains and grow E-
attitudes) in terms of social media marketing com- WOM. Potential customers develops a purchace
munications. As specified by Abubakar, et al. (2016), intention when they see online positive feedback from
electronic word of mouth in relation to influencing other customer. Additionally, social media market-
purchase intention has the same effect for men and ing on Instagram enhances their marketing strate-
women. Therefore, Sunday Bowl Cereal Club can gies by uploading content and advertising to increase
form a social media promotional effort that without the appeal to the wider community.
focusing on certain gender groups through the cre-
ation of electronic word of mouth so that it can en-
courage purchases.

680 JOURNAL OF APPLIED MANAGEMENT VOLUME 20 NUMBER 3 SEPTEMBER 2022


Impact of Social Media Marketing and Electronic Word of Mouth (E-WOM) on Purchase Intention

LIMITATIONS ers to review products they have bought and share


There are some limitations to this study that promotion content on Instagram Story and then Sun-
can be taken into consideration when conducting day Bowl Cereal Club provides rewards (discount,
further research, including only focusing on one voucher, etc.), and create a discussion forum on
brand. Nevertheless, this research has identified key Sunday Bowl Cereal Club’s Instagram account.
variables that influence digital marketing, especially
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