The 3rd International Conference on Techonolgy, Education, and Social Science 2020 ( The 3rd ICTESS 2020)

THE ROLE OF DIGITAL MARKETING ON PURCHASE INTENTION

AND PURCHASE DECISIONS AT KOPI SI BUDI SURAKARTA

Allouisia Herlina Diventy1), Marjam Desma.Rahadhini2), Rahayu Triastity3)

1,2,3)
Economic Faculty of Universitas Slamet Riyadi Surakarta
e-mail: 1) ventyveos@gmail.com ; 2)rahadhininew@gmail.com

ABSTRACT

This research was conducted at Kopi Si Budi Surakarta and uses a survey method
conducted on Kopi Si Budi's Instagram followers. The population of the research is all of
Kopi Si Budi's followers. The sampling technique used probability sampling with a simple
random sampling of 125 respondents. The analysis technique uses Structural Equation
Modeling (SEM). The validity and reliability test uses Confirmatory Factor Analysis (CFA)
and Cronbach Alpha. The result shows that social media marketing has no effect on
purchase intention. E-word of mouth effect purchase intention. Social media marketing has
an effect on purchasing decisions. E-word of mouth has no effect on purchasing decisions.
Purchase intention effects purchasing decisions. Social media marketing has an effect on
purchasing decisions through purchase intention and e-word of mouth influences
purchasing decisions through purchase intention.

Keywords: social media marketing, e-word of mouth, purchase intention, and purchase
decisions

1. Introduction
Social media is one of the tools in information technology used in digital
marketing. One of the most popular social media is instagram. The number of
instagram users in Indonesia is 60 million and is ranked third behind the United
States' instagram users of 116 million (www.statisca.com, 2019). Many coffee shops
in Surakarta use social media to promote products, one of which is Kopi Si Budi.
Kopi Si Budi uses social media instagram as a means of publication and promotion,
through instagram @kopisibudi.
There were 792 interactions and 7.617 impressions that took place on the
@kopisibudi instagram in 2019. Some photo uploads also contain comments from
@kopisibudi instagram followers. This proves that the @kopisibudi instagram in
demand by instagram users. Social media marketing carried out by a business can
affect a person's thinking which will have an impact on other people's thoughts more
broadly before making a purchase decision (Gunelius, 2011:144-145). The use of
e-word of mouth through social media will also encourage communication from
consumers who will review and comment on products being sold and make the
marketing network wider, because before consumers purchase products,
consumers will look for product information and will create purchase intention
(Laksmi and Oktafani, 2016: 80). E-wom through social media is done by providing
product reviews, providing recommendations to other consumers or just sharing
experiences. On the instagram @kopisibudi there has been an e-wom, where
followers invite others to visit the coffee shop and enjoy the products offered.

488
The 3rd International Conference on Techonolgy, Education, and Social Science 2020 ( The 3rd ICTESS 2020)

2. Literature Review
2.1. Social media marketing
Social media marketing is a system that allows marketers to engage,
collaborate, interact and take advantage of the intelligence of the people who
participate in it for marketing purposes (Tsitsi, 2013:366). Social media marketing is
a form of direct or indirect marketing used to build awareness, recognition, memory
and action for brands, businesses, products, people and to use tools from the social
web, such as blogging, microblogging, social networking, social bookmarking, and
content (Genelius, 2011:10). Social media marketing is measured with 3
dimensions, namely: entertainment, interaction and trendiness (Kim and Ko,
2012:1485).
2.2. Electronic word of mouth (e-wom)
E-wom is a negative or positive statement made by actual, potential or
previous consumers regarding a product or company where this information is
available to people or institutions through the internet media (Jalilvand and Samiei,
2012:465). Electronic word of mouth (e-wom) is a very important place for
consumers to give their opinion and is considered more effective than traditional
word of mouth (Priansa, 2017:351). According to Charo (2015:41) electronic word
of mouth is a form of exchange information and knowledge online on social media.
There are four elements in e-wom, namely: response, communicator, stimulus and
receiver (Cheung & Thadani, 2010:340).
2.3. Purchase intention
Purchase intention is defined as an attitude of consumers who are happy with
this object by paying money or by sacrifice (Schiffman and Kanuk, 2010:36).
Purchase intention is something that appears after receiving stimulation from the
product seen, then there is a desire to buy and own (Kotler and Armstrong,
2012:185). Meanwhile, Kinnear and Taylor (2010:153) suggest purchase intention,
namely a component of consumer behavior in consuming before deciding to buy a
product. The aspects of purchase intention are: aspects of interest, aspects of
desire, aspects of belief (Lucas and Britt, 2012:101).
2.4. Purchase decisions
Purchase decisions is a decision stage where consumers actually purchase
a product (Tjiptono, 2012:193). Purchasing decision behavior refers to the final
purchasing behavior of consumers, both individuals and households who buy
products for personal consumption. (Kotler and Armstrong, 2014:158). The stages
in purchasing decision process are: problem recognition, information search,
evaluation of alternatives, purchase decisions, post-purchase behavior (Kotler and
Keller, 2012: 227).

2.5. Hypothesis
1. The influence of social media marketing (X1) on purchase intention (Z)
Social media marketing is a form of direct or indirect marketing that is used to
build awareness, recognition, memory, and action for brands, businesses,
products, people, or other entities (Gunelius, 2011:10). Research by Arief and
Millianyani (2016) states that social media marketing has a significant effect on
purchase intention.
H1: There is an effect of social media marketing on purchase intention

489
The 3rd International Conference on Techonolgy, Education, and Social Science 2020 ( The 3rd ICTESS 2020)

2. The effect of electronic word of mouth (X2) on purchase intention (Z)

Electronic word of mouth is a negative or positive statement made by actual,
potential or previous consumers about a product or company where this
information is available to people or institutions through the internet (Jalilvand
and Samiei, 2012:465). Research by Laksmi and Oktafani (2016) states that
electronic word of mouth has a significant effect on purchase intention.
H2: There is an effect of electronic word of mouth on purchase intention
3. The influence of social media marketing (X1) on purchasing decisions (Y)
Social media marketing is a system that allows marketers to engage,
collaborate, interact and take advantage of the intelligence of the people who
participate in it for marketing purposes (Tsitsi, 2013:366). Mileva and Fauzi's
research (2018) states that social media marketing has a significant effect on
purchasing decisions.
H3: There is an influence of social media marketing on purchasing decisions.
4. The effect of electronic word of mouth (X2) on purchase decisions (Y)
Electronic word of mouth is a positive or negative statement made by potential
customers and actual customers about a product or company via the internet
(Malik, et al. 2013:119). Utami and Saputri's research (2016) states that
electronic word of mouth has a significant effect on purchase decisions.
H4: There is an effect of electronic word of mouth on purchase decisions
5. The effect of purchase intention (Z) on purchase decisions (Y)
Purchase intention is something that arises after receiving stimulation from the
product he sees, then the desire to buy and own it appears (Kotler and
Armstrong, 2012:185). Putri, Kumadji and Sunarti's research (2016) states that
purchase intention has a significant effect on purchase decisions.
H5: There is an effect of purchase intention on purchase decisions
6. The influence of social media marketing (X1) on purchase decisions (Y) through
purchase intention (Y)
Social media marketing is a marketing strategy that is used by people in the
form of online networks (As'ad and Alhadid, 2014:316). Research of Putri,
Kumadji and Sunarti (2016) states that social media marketing has a significant
effect on purchase decisions through purchase intention.
H6: There is an influence of social media marketing on purchase decisions
through purchase intention
7. Effect of electronic word of mouth (X2) on purchase decisions (Y) through
purchase intention (Z)
According to Charo (2015:41), the form of online information and knowledge
exchange on social media is known as electronic word of mouth (e-wom). The
research of Lutfiyatillah, Millatina, Mujahidah and Herianingrum (2020) states
that electronic word of mouth has a significant effect on purchase intention and
has an impact on purchase decisions.
H7: There is an effect of electronic word of mouth on purchase decisions
through purchase intention

3. Research Methods
This research was conducted on Kopi Si Budi's followers to determine the
effect of social media marketing and e-wom on purchase decisions through
purchase intention. The population of this study were all active followers of Kopi Si
Budi's instagram in Surakarta. Total population of 2,556 followers (data until June
2020). Sampling using simple random sampling, taking random samples without

490
The 3rd International Conference on Techonolgy, Education, and Social Science 2020 ( The 3rd ICTESS 2020)

paying attention to the strata in the population (Sugiyono, 2013:118). In this study,
the number of indicators was 25 from 4 latent variables so that the minimum sample
size was: (Ferdinand, 2014: 54)
Sample = number of indicators (25) x 5 (minimum requirement) = 125
The number of samples is at least 125 respondents. Retrieval of data by distributing
questionnaires in the google form to active followers of Kopi Si Budi's instagram by
sending direct messages to respondents.

3.1. Instrument Test

The results of the validity test on social media marketing (X 1) 7 items,
electronic word of mouth (X2) 8 items, purchase intention (Z) 5 items, and purchase
decisions (Y) 5 items using confirmatory factor analysis (CFA) shows the value
estimate > 0,50 so that all items are valid. Reliability test results show that the value
of cronbach alpha (0,877; 0,863; 0,864; 0,796) > 0,60. So that all the variable
instruments of social media marketing, electronic word of mouth, purchase intention
and purchase decisions are reliable.

3.2. Good of Fit Index (GFI)

Observations on the full model analysis show that the model meets the fit
criteria. This is indicated by the value that meets the eligibility criteria for the full
model as in the following table:
Table 1. Good of Fit Index
Goodness of Cut off value Before After Model
Fit Index modification modification evaluation
Chi-square It is expected to 581,078 204,907 Good fit
be less than the
table value
Probability > 0,05 0,000 0,743 Good fit
RMSEA < 0,08 0,096 0,000 Good fit
GFI > 0,90 0,735 0,890 Marjinal
AGFI > 0,90 0,680 0,837 Marjinal
CMIN/DF < 2,00 2,152 0,936 Good fit
TLI > 0,95 0,834 1,009 Good fit
CFI > 0,95 0,850 1,000 Good fit
Source: Primary data processed, 2020

4. Result and Discussions

The structural model shows the chi-square value of the full model is 204,907.
The values of RMSEA, CMIN / DF, TLI, and CFI show good fit, while the values of
GFI and AGFI show marginal, so the model deserves to be analyzed to the next
stage.

491
The 3rd International Conference on Techonolgy, Education, and Social Science 2020 ( The 3rd ICTESS 2020)

p = 0,004
Social media CR = 2,906
marketing
(X1) H3

DE = 0,226
IE = 0,004
H1 TE = 0,229
p = 0,961 H6
CR = 0,049 Purchase H5 Keputusan
intention Pembelian
(Z) p = 0,000 (Y)
p = 0,000 CR = 6,531
CR = 6,703
H2 H7
DE = (-0,076)
IE = 0,708
TE = 0,632 H4
p = 0,548
Electronic CR = (-0,601)
word of mouth
(X2)

Figure 1. Path diagram (path analysis)

4.1. Hypothesis test

Hypothesis testing is done by analyzing the critical ratio (CR) value and the
probability (p) value of the data processing results compared with the required
statistical values, there is CR > 1,96 and p < 0,05.
Table 2. Results of Regression Weights
Estimate S.E. C.R. p Sig / No sig
Z <--- SMM 0,006 0,116 0,049 0,961 Significance
Z <--- EWOM 0,924 0,138 6,703 0,000 No significance
Y <--- Z 0,855 0,131 6,531 0,000 Significance
Y <--- SMM 0,288 0,099 2,906 0,004 Significance
Y <--- EWOM - 0,085 0,141 - 0,601 0,548 No significance
Source: Primary data processed, 2020

Table 3. Direct Effects, Indirect Effects, Total Effects

DE IE TE
Z <--- EWOM 0,816 0,000 0,816
Z <--- SMM 0,004 0,000 0,004
Z <--- Y 0,000 0,000 0,000
Y <--- EWOM -0,076 0,708 0,632
Y <--- SMM 0,226 0,004 0,229
Y <--- Z 0,868 0,000 0,868

Source: Primary data processed, 2020

From the hypothesis testing, the results are discussed as follows:

1. The influence of social media marketing on purchase intention
The results showed that social media marketing has no effect on purchase
intention because the CR value 0,049 < 1,96 and the p value 0,961 > 0,05 so
that H1 was not proven. The results of this study do not support the research of
Arief and Millianyani (2016), Luthfiyatillah, Millatina, Mujahidah and

492
The 3rd International Conference on Techonolgy, Education, and Social Science 2020 ( The 3rd ICTESS 2020)

Herminingrum (2020) which concluded that social media has an effect on

purchase intention. The successful concept of social media marketing can be
used as an interactive marketing tool, service and building relationships with
customers (Siswanto, 2013:83). Kopi Si Budi should create interesting and
different Instagram social media content so that it has characteristics that
followers can recognize, so that by looking at this content, consumers are
interested in buying products.
2. The influence of electronic word of mouth on purchase intention
The results showed that electronic word of mouth has an effect on purchase
intention because the CR value 6,703 > 1,96 and the p value 0,000 < 0,05, so
that H2 was proven. Purchase intention is something that arises after receiving
stimulation from the product he sees, then the desire to buy and own (Kotler and
Amstrong, 2012:185). The results of this study support the research of Laksmi
and Oktafani (2016) which concluded that electronic word of mouth has a
significant effect on purchase intention. Kopi Si Budi should be able to provide
good encouragement in creating quality products and services so that
consumers can provide positive comments and constructive reviews on Kopi Si
Budi's instagram social media.
3. The influence of social media marketing on purchasing decisions
The results showed that social media marketing has an effect on purchasing
decisions because the CR value 2,906 > 1,96 and the p value 0,004 < 0,05, so
that H3 was proven. The results of this study are in accordance with the theory
of Tjiptono (2012:193) which states that the purchase decision is a decision
stage where consumers actually purchase a product. The results of this study
support the research of Mileva and Fauzi (2018) which concluded that social
media marketing has a significant effect on purchasing decisions. Kopi Si Budi
should be able to provide good encouragement in marketing on social media
instagram so that consumers in particular are increasingly interested in content
uploaded on instagram.
4. The influence of electronic word of mouth on purchasing decisions
The results showed that electronic word of mouth has no effect on purchasing
decisions because the CR value (- 0,601) < 1.96 and the p value 0,548 > 0,05
so that H4 was not proven. The results of this study support research of
Luthfiyatillah, Millatina, Mujahidah and Herianingrum (2020) which states that
electronic word of mouth has no effect on purchasing decisions. Electronic word
of mouth is an important place for consumers to provide opinions and is
considered more effective than traditional word of mouth (Priansa, 2017:351).
Kopi Si Budi should further increase interaction with followers on instagram
social media and expand information networks. Information that contains
positive reviews and comments from followers will be useful for consumers who
take advantage of the e-wom communication model.
5. The influence of purchase intention on purchasing decisions
The results showed that purchase intentions has an effect purchasing decisions
because the CR value 6,531 > 1,96 and the p value 0,000 < 0,05 so that H5 was
proven. Purchasing decisions are decisions taken by consumers to purchase
products through the stages before making a purchase. The results of this study
support the research of Putri, Kumadji and Sunarti (2016) which concluded that
purchase intention has a significant effect on purchasing decisions. Kopi Si Budi
should be able to provide good encouragement in marketing products through
the instagram media used.

493
The 3rd International Conference on Techonolgy, Education, and Social Science 2020 ( The 3rd ICTESS 2020)

6. The influence of social media marketing on purchasing decisions through

purchase intention
The results showed that social media marketing has an effect on purchasing
decisions through purchase intention because it has TE > (DE x IE) or 0,229 >
0,000904 so that H6 is proven. Social media marketing is a marketing strategy
that is used in the form of online networking. The results of this study support
the research of Putri, Kumadji and Sunarti (2016) which states that social media
marketing has a significant effect on purchasing decisions through purchase
intention. Kopi Si Budi should increase the marketing carried out on instagram
accounts aimed at followers or other instagram users.
7. The influence of electronic word of mouth on purchasing decisions through
purchase intention
The results showed that electronic word of mouth has an effect on purchasing
decisions through purchase intention because the value of TE > (DE x IE) or
0,632 > (- 0,053) so that H7 is proven. The results of this study are in accordance
with Charo's (2015:41) theory that the form of exchange of information and
knowledge online on social media is called electronic word of mouth (e-wom).
The results of this study support the research of Lutfiyatillah, Millatina,
Mujahidah and Herianingrum (2020) that electronic word of mouth has a
significant effect on purchase interest and has an impact on purchasing
decisions. Kopi Si Budi should increase the interaction carried out on Kopi Si
Budi's instagram account so that information or positive reviews on Instagram
provided by consumers who have made a purchase can generate interest in
buying.

5. Conclusions and Suggestions

The results show that there is no influence of social media marketing on
purchase intention, there is an influence of electronic word of mouth on purchase
intention, there is an influence of social media marketing on purchasing decisions,
there is no influence of electronic word of mouth on purchasing decisions, there is
an influence of purchase intention on purchasing decisions, there is the influence of
social media marketing on purchasing decisions through purchase intention, and
there is an influence of electronic word of mouth on purchasing decisions through
purchase intention.
Kopi Si Budi should pay attention to social media marketing factors because
social media marketing carried out through instagram has no effect on buying
interest. Kopi Si Budi must be more creative and innovative in marketing through
social media in order to generate consumer buying interest. Kopi Si Budi should pay
attention to the electronic word of mouth factor because e-wom has no effect on
purchasing decisions. E-wom that occurs on instagram @kopisibudi is still low, so
Kopi Si Budi must improve its quality and improve its instagram management. Kopi
Si Budi should make new progress in developing marketing methods on social
media and innovating coffee products and improving the concept of selling its
products with interesting and unique concepts than other coffee shops, in order to
encourage consumers to decide to buy Kopi Si Budi’s products.

References

494
The 3rd International Conference on Techonolgy, Education, and Social Science 2020 ( The 3rd ICTESS 2020)

Arief, Giri Maulana. dan M. Heppy. 2016. “Pengaruh Sosial Media Marketing
Melalui Instagram Terhadap Minat Beli Konsumen Sugar Tribe”. Jurnal
Manajemen Bisnis. Vol 5, No 3, Desember, hlm. 2581-2587. Universitas
Telkom. Bandung.
As’ad H. dan Alhadid A. 2014. “The impact of Social Media Marketing on Brand
Equity: An Emprical Study on Mobile Service Provider in Jordan”. Science
Private University, Amman Jorddan. Review of Integrative Business and
Economics Research. Vol 3, No 1, p. 315-326.
Charo, N. 2015. “Determining the Impact of E-wom on Brand Image ang Purchase
Intention Through Adoption of Online Opinions”. International Journal Of
Humanities and Management Sciences. Vol 3, No 1. p 41-46.
Ferdinand, A. 2014. Structural Equation Modeling Dalam Penelitian Manajemen:
Aplikasi Model-Model Rumit Dalam Penelitian Untuk Skripsi, Tesis, dan
Disertasi Doktor. UNDIP. Semarang.
Gunelius, Susan. 2011. 30-Minute Social Media Marketing. McGraw-Hill
Companies. United States.
Jalilvand, Mohammad R. and Samiei, Neda. 2012. “The Effect of Electronic Word
of Mouth on Brand Image And Purchase Intention An Empirical Study In The
Automobile Industry In Iran”. Marketing Intelligence & Planning, Vol 30 No.4,
p. 460-476.
Kotler, Philip dan Amstrong. G. 2012. Dasar-Dasar Pemasaran. Jilid I (Alih
Bahasa:Alexander Sindoro dan Benyamin Molan). Prenhalindo. Jakarta.
__________________. 2014. Principles of Marketing. 12 Edition.Jilid 1(Alih
Bahasa: Bob Sabran). Erlangga. Jakarta.
Laksmi, Aditya dan Oktavani, Farah . 2016. “Pengaruh E-Wom Terhadap Minat Beli
Followers Instagram Pada Warunk Upnormal”. Jurnal Computech & Bisnis. Vol
10, No 2, Desember, hlm. 78-88. Universitas Telkom. Bandung.
Luthfiyatillah, Millatina, Mujahidah dan Herianingrum. 2020. “Efektivitas Media
Instagram dan E-WOM (Electronic Word of Mouth) Terhadap Minat Beli Serta
Keputusan Pembelian”. Jurnal Penelitian IPTEK, Vol 5, Januari, hlm. 101-115.
Malik, M. E., Ghafoor, M. M.,Iqbal,H. K., Ali, Q., Hunbal, H., Noman, M., & Ahmad,
B. 2013. “Impact of Brand Image and Advertisement on Consumer Buying
Behaviour”.World Applied Sciences Journal, Vol 1, No 23, p. 117- 122.
Mileva, Lubiana dan Fauzi, Achmad. 2018. “Pengaruh Sosial Media Marketing
Terhadap Keputusan Pemelian Konsumen”. Jurnal Administrasi Bisnis , Vol
58, No 1, Mei, hlm. 190-199. Universitas Brawijaya. Malang.
Peter dan Olson, C. 2013. Perilaku Konsumen dan Strategi Pemasaran
(Terjemahan: Diah Tantri). Salemba Empat. Jakarta.
Putri, dkk. 2016. “Pengaruh Word of Mouth terhadap Minat beli serta Dampaknya
Pada Keputusan Pembelian (Survei pada Konsumen Legipait Coffeeshop
Malang)”. Jurnal Administrasi Bisnis, Vol 34, No 1, Mei, hlm. 86-95. Universitas
Brawijaya. Malang.
Putri, Citra Sugianto. 2016. “Pengaruh Media Sosial Terhadap Keputusan
Pembelian Konsumen Cherie Melalui Minat Beli”. Jurnal Manajemen, Vol 1,
No 5, Desember, hlm. 595- 603. Universitas Ciputra.Jakarta.
Priansa, Doni. 2017. Komunikasi Pemasaran Terpadu pada Era Media Sosial.
Pustaka Setya. Bandung.
Schiffman, Leon G, dan Kanuk, L. L. 2010. Perilaku Konsumen. Indeks. Jakarta.
Siswanto, Tito. 2013. “Optimalisasi Media Sosial Sebagai Media Pemasaran Usaha
Kecil”. Jurnal Liquidity. Vol. 1, Januari, hlm. 80-86.

495
The 3rd International Conference on Techonolgy, Education, and Social Science 2020 ( The 3rd ICTESS 2020)

Sugiyono. 2010. Metode Penelitian Kuantitatif Kualitatif dan R & D. Alfabeta.

Bandung.
Tjiptono, Fandi. 2012. Strategi Pemasaran. Banyu Media. Yogyakarta.
Tsitsi, Sarah. 2013. “The Adoption of Social Media Marketing in South African
Banks”. European Journal Bussiness Review. Vol 25, p. 280-385.

496