Effects of Social Media on Purchase Intention and Brand Equity of Marketplace Sites in Indonesia

International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue VI, June 2020 | ISSN 2454–6186

Effects of Social Media on Purchase Intention and Brand Equity of Marketplace Sites in Indonesia

Dr. Lady¹, Andrean Kie^2
1,2 Department of Business Management, Universitas Internasional Batam, Indonesia

Abstract: Marketplace is a popular term used in Indonesia online shopping experience, which a third party site who consists of many sellers (companies or individuals) selling their products to their customers. The purpose of this study was to analyze the effect of social media on the purchase intention of men’s fashion item on the Marketplace sites. This sample in this study was the customers of men’s fashion items in five largest marketplace sites in Indonesia, they are Tokopedia, Shopee, Lazada, Bukalapak and OLX. The results showed that all hypotheses were significantly positive, except for brand knowledge and perceived persuasiveness on marketplace brand equity; perceived in formativeness on purchase intention; and perceived usefulness as moderator between perceived persuasiveness and marketplace brand equity which are showed insignificant results. These results verify that companies must realize the enormity of the social media impact on the value of the company’s equity, which is a big thrust to trigger purchase intention.

Keywords: Purchase Intention, Social Media, Indonesia Marketplace, Brand Equity, and Brand Knowledge

I. INTRODUCTION

The growth of the Internet in Indonesia is increasing rapidly. The increasing of the internet speed and the decreasing cost of internet data also contribute to the usage of the internet in Indonesia (Citradi, 2019). Indonesia had 171.17 million internet users in 2018, from the total of population 264.15 million. This fact made Indonesia as the top 6 largest Internet users after China, USA, India, Brazil and Japan (Asosiasi Penyelenggara Jasa Internet Indonesia, 2018).
Social media is a part of Indonesian life and has even changed the way people interact with others. One of those is interaction in business communication patterns using Facebook. Facebook is considered a lucrative application for the Marketplace.
Marketplace is a popular term used in Indonesia online shopping experience, which a third-party site who consists of many sellers (companies or individuals) selling their products to their customers. The site is ensuring that the seller has the products and would send it safely to the buyer, after they keep the payment from the buyer.

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