Research Article | Volume 4 Issue 1 (Jan-June, 2023) | Pages 1 - 9
The Effect of Social Media Influencers, Word of Mouth, and Brand Awareness on Purchasing Decisions (Case Study of Influencer Titan Tyra and Secondate cosmetic products)
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1
Faculty of Economics and Business, Tanjungpura University, Indonesia
Under a Creative Commons license
Open Access
Received
Jan. 12, 2023
Revised
Jan. 17, 2023
Accepted
Jan. 23, 2023
Published
May 30, 2023
Abstract

This study investigates the impact of social media influencers and word of mouth on purchasing decisions, and brand awareness is a mediator variable in the relationship. Data were obtained from 244 respondents in Indonesia who were selected by using purposive sampling techniques. Structural Equation Modeling with AMOS 26 software was employed for data analysis. The findings revealed that word of mouth and the use of social media influencers as one of the social media marketing platforms affect purchase decisions. The indirect relationship between social media influencers through brand awareness is also very effective in increasing purchase decisions. The findings contribute to the literature by showing that the prevalence of social media influencers and word of mouth positively affect the purchasing decisions made by Indonesians regarding cosmetic items manufactured by Secondate. In addition, there is a significant effect of brand awareness on purchase decisions illustrating how consumers' impressions of a brand shape their perceptions of the confidence and security of using Secondate cosmetics.

Keywords
INTRODUCTION

The revolution brought about by social media platforms has altered conventional modes of communication and marketing. Social networks' function in daily communication is becoming increasingly significant and the most popular method of communication among customers. Users spend more time on these social media platforms sharing and learning about brands, products, and services [1]. This new communication tool allows users to take an active role in the communication process instead of a passive role in traditional communication. In marketing communications, social media platforms enable two-way contact between customers and brands [2] And users have become an influential part of such interaction compared to traditional marketing communication [3]. As a result, companies utilise social media to conduct targeted messaging and campaigns to engage with their users and customers.

 

The vast majority of companies in today's market use various forms of electronic communication media to promote their goods and services, as well as their core values and brand awareness. The proliferation of many communication channels in the modern era has created iconic human idols, which customers commonly refer to as celebrities. It is an opportunity for Indonesian entrepreneurs to recruit influential social media users to promote their products [4]. Many companies rely on the popularity of their endorsers, whether they be actual customers or celebrities. The concept being referred to by both of these phrases is the same. Public figures, celebrities, and influences use their renown to endorse goods and services online.

 

Social Media Influencers are currently one of the latest celebrities in cyberspace. It is a form of postmodernism in cyberspace by celebrities who are not as famous as artists, business people, or politicians. Social Media Influencers (SMI) tend to be celebrities with large followers on social media. SMI is a new independent influencer that changes potential consumers' mindsets through blogs, tweets, Instagram, and other social media

Titan Tyra, a prominent figure in the world of beauty, began uploading her videos to YouTube in 2008. The content covers advice on properly applying makeup and skincare products to day-to-day life. Titan Tyra has also been successful in the commercial world, where he builds cosmetic businesses by utilising online platforms and employing various branding strategies.

 

To gain public trust, win and promote through personal carry-out branding, personal branding is tied to Titan Tyra as the Secondate does. Secondate is a new cosmetic brand launched in 2020 with the conviction that a woman's unique history should be reflected in her appearance. Gitta Amelia, a successful entrepreneur and Indonesian beauty influencer Titan Tyra came up with the idea for Secondate . This cosmetics company has a website and an Instagram account, which they utilise for advertising, and its username is @secondatebeauty.

 

Reviews and recommendations from social life influencers, who have taken the initiative on behalf of the brand ahead of time and prioritised the importance of the brand in all needs before making a product purchase decision, are the primary factors that determine whether a consumer will make a purchase decision. While some researchers (SMI) consider themselves highly competitive only to dominate social media [5], others (SMI) work with companies to develop products/services. The company has established the groundwork for business leaders to use SMI as their corporate advertising vehicle to improve brand awareness and revenue. It will allow them to capitalise on the opportunities presented by the company trend. Increased brand awareness is the result that many businesses hope to achieve as a result of utilising the services offered by social media influencers.

 

Brand awareness is the ability of customers to recognise and remember brands in various contexts [6]. According to [7], Brand recognition and consumers' propensity to make purchases are important metrics for influencers. In addition, brand awareness can also have a significant impact on purchasing decisions [8]. The purchasing decision can be seen as a compromise between multiple potential solutions to a consumer's problem. [9]. It implied that brand awareness, positioning, and purchase decisions are the impacts of using SMI.

1. LITERATURE REVIEW
  1. Social Media Influencer

The definition of social media influencers, according to [10], refers to figures on social media who have many followers and can influence the behaviour of their followers. Influencers can influence others who might originate from various backgrounds, including those artists, celebrities, and bloggers. Influencer marketing is a form of the social media marketing that enables businesses to connect with a more extensive audience that is highly engaged across many social media platforms such as Instagram, Twitter, Youtube, Facebook, TikTok and Podcasts. Next, influencer marketing solicits the help of influential people in the target audience to promote the product. There are four types of Influencers based on the number of followers. They are in the following :

  1. Nano-Influencer is defined as having between 1,000 and 10,000 followers. Since influencers and followers typically know and participate in conversation with one another, the resulting engagement generally is quite robust. 

  2. Micro-influencers have between 10,000 and 100,000 people following them. People put much faith in these influencers since they are knowledgeable in various fields, including health, beauty, and automotive topics..

  3. Macro-Influencers are people who have 100,000 to 1,000,000 people following them. The message these influencers spread will naturally have a wider reach, but it will also come at a significant financial expense.

  4. Mega influencer has more than 1 million followers. Typically, these are nationally renowned artists or prominent members of the public. 

 

The use of social media influencer (SMI) services to promote products and services is very common in today's digital era.defines SMI as someone who attempts to persuade others to engage in particular behaviours and dynamics that may result in different outcomes for their relationships. According to [11] influencers can introduce a product to internet users, make them admire it, and encourage them to buy it. A positive attitude towards a brand is believed to significantly impact trust in purchasing decisions. Meng, [12] suggest that several factors influence emotions and buying intentions related to emotions. If a person is pleased with their previous shopping experience, their interest in making additional purchases in the future is likely to increase and vice versa.

 

Word of Mouth, often known as WOM, is a method of promotion that sets customers' expectations. Word of mouth is one of the most powerful marketing communications tactics, and it plays a significant role in consumers' decisions regarding the products and services they use. In the business world, "word of mouth" refers to customers sharing information about a brand, product, or service that is not intended for commercial purposes with other customers or from one person to another [13]. According to WOMMA (Word of Mouth Marketing Association), "word of mouth" (WOM) marketing is an activity that encourages customers to talk about, promote, suggest, and sell our products and brands to other customers [14] According to the definition provided by experts, we can draw the following conclusion: word of mouth is a promotional tool that is carried out by the audience to convey information about the value of a product or service that has been used, which affects the positive or negative value of the product or service. Hughes (2015:31) presents both positive and negative attributes in his argument.

  1. Positive Word of Mouth conveys word-of-mouth information from one individual to another based on a positive experience of a product, service, or company. 

  2. Negative Word of Mouth spreads unfavourable information about a product, service, or corporation from one person to another based on unpleasant experiences with the subject.

    1. Brand Awareness

 

According to [15],brand awareness is recognising and referencing a brand in the market without providing specifics about the goods being purchased. In addition, [16] suggested that understanding brand awareness can help customers understand how their products and services compete in the market. High brand awareness with an effective marketing plan can affect sales volume. The more familiar this product is, the more users can use it. The procedure for raising brand awareness can be modified to meet the requirements of a specific type of consumer selected in advance. According to [17] there are several indicators of Brand Awareness, they are:

  1. Recall, this indicator is used to determine how well they remember the product in question.

  2. Recognition, this indicator is used to demonstrate the degree to which customers are familiar with the brand and each product category.

  3. Purchase, an indicator, is used to ascertain how many consumers mention or choose a brand when faced with a large selection of brands in the same category.

  4. Consumption, an indicator, is used to determine how well customers remember a brand after using the goods or services of a competitor of that brand.

    1. Purchase Decision

 

According to [18], there are several dimensions to measure brand awareness. These dimensions are consumer knowledge of a particular type of branded product, perception of a specific brand among competitors, knowledge of a particular brand, memory of certain brand attributes, ability to remember brand logos, and ease of brand recognition. [19] also specify the parameters by which brand awareness, such as the brands that consumers find easiest to recall and recall readily, as well as those that are familiar to them and those that are not.

Purchase Choice is a decision that will occur if a consumer wants to buy an item that includes several steps before leading to the purchase of the product, including which product to purchase, whether to purchase it or not, when to buy it, where to purchase it, how to pay for it and other similar considerations. Therefore, the purchase decision occurs after the product evaluation and consumer confidence in the product [17]. According to Sumarwan, the definition of purchase decision provides an understanding that the purchase decision will occur if the consumer has found an item that matches the criteria set at the beginning, which is influenced by several factors. In addition, [20] adds that before making a purchase, consumers will look for information about a product based on personal experience and conservational influences. With purchase decision-making, consumers are influenced by different stages, one of which is looking for information about products or services that consumers are interested in, and one of the sources of information is commercial in various forms. According to Keller [21,22] a purchasing decision is a decision process by which a customer decides to buy and enjoy a good or service among various alternatives. 

According to Hikmawati (2016), purchasing decisions have a seven-component structure of indicators, including:

  1. Decision on the type of product

A buyer can buy a product with money or spend it entirely on something else. The corporation should focus on individuals interested in purchasing the product and inquire about the other options they are considering purchasing instead.

  1. Decision on the shape of the product

Factors such as size, quality, design, sound, and style are considered when deciding on the shape of a product. For businesses to optimise the appeal of their brands, marketing research must first be conducted on potential customers and their preferences for the product in question.

  1. Decisions about the brand

Consumers must decide which brand to buy because each brand has its differences and advantages.

  1. Decision about the seller

The consumer is responsible for determining the best place to acquire the product. The manufacturers, distributors, and retailers must be aware of the factors that go into customer decision-making when selecting a particular vendor.

  1. Decision on the number of products

Consumers can decide how many products they will buy. Companies must be able to prepare products in large quantities according to their customer's expectations.

  1. Decision on the timing of the purchase

The consumer is responsible for determining the best place to acquire the product. The manufacturers, distributors, and retailers must be aware of the factors that go into customer decision-making when selecting a particular vendor.

  1. Decisions about payment methods

    1. Social Media Influencer and Brand Awareness

The consumer is responsible for deciding how the goods will be paid for, whether in a single lump sum or several instalments. The organisation must learn the buyer's preferred form of payment to proceed.

 

According to research conducted by [23], companies that use SMI services as part of their social media strategies notice positive results that are measurable, tangible, and useful for their brand equity. Brand awareness is one of the many elements that form brand equity. It indicates that SMI has an impact on expanding brand awareness. As a result, brand awareness and SMI have a significant relationship. The impression of consumers on a brand will be influenced by marketing efforts such as promotion using SMI services (whether consumers know the brand or not). Increasing brand awareness requires a company to connect with its target audience's feelings. It can be accomplished through marketing communications, acceptable product values, and features that appeal to the target audience's emotions. Transmission can occur through intermediaries, which SMI frequently refers to as brand ambassadors. It has been proven that using brand ambassadors and SMI in HIJUP products significantly increases brand awareness of these products [24] Referring to the explanation above, the research hypothesis is formulated as follows:

 

H1: There is a positive and significant effect of Social Media Influencers on Brand Awareness.

 

  1. Social Media Influencer and Purchase Decision

SMI and Purchasing Decisions from SMI influences considerably impact consumers' purchasing decisions in the Indian apparel industry [25] As a result, businesses concentrate more on promoting and advertising their goods and services through SMI. In addition, [26] found empirical evidence of the influence of SMI on consumer purchasing choices in the fashion business. SMI is a third party that greatly influences consumer purchases [27].In line with that idea, found that SMI contributed to purchasing choices. Therefore, this study formulated the following hypothesis:

 

H2: Social Media influencers have a positive and significant effect on Purchase Decisions.

 

  1. Brand Awareness and Purchase Decision

The research conducted by [28] found evidence that the purchase of Sosro tea drink products in Bandung was significantly influenced by brand awareness. Brand awareness and brand image, as brand equity factors, were found to impact customers' purchasing decisions in the city considerably. In addition to these studies, brand perception research shows that brand awareness influences purchasing decisions [29] As customers become increasingly demanding in their product/service selection, Soebianto (2014) claims that brand equity also increases the chances for consumers to choose to buy products or services. Brand awareness signifies a favourable consumer reaction that can influence purchasing actions. The degree to which consumers are familiar with a particular brand affects the probability that they will choose its associated goods or services. Related to the explanation above, the hypothesis is formulated as follows:

 

H3: There is a positive and significant effect of Brand Awareness on Purchase Decisions.

 

  1. WOM and Purchase Decision

[14] defined Word of Mouth as sharing customer product-related information with other consumers. WOMMA (Word of Mouth Marketing Association) refers to customers telling other customers about their experiences with a business or its products. People's ongoing actions, such as attending events or reading particular newspaper articles, are advertised through word-of-mouth. In addition, word-of-mouth advertising encourages customers to spread a product. The third theory shows significant and positive coefficient values. Therefore, it entails that women significantly and positively influence consumer decisions. The findings of this study support the research conducted, which claims that women have a beneficial impact on purchasing decisions. Referring to the explanation above, the researcher formulated a hypothesis as follows:

 

H4: WOM has a positive and significant effect on Purchase Decisions.

 

  1. Methodology

    1. Measurements

This research employed a quantitative research design.The first variable, Social Media Influencer, was measured based on three indicators: Fashionable, Trustworthiness and Skill.In addition , Word of Mouth (WOM) , was measured based on three indicators: Positive words, Recommendation , Purchase Decision and Impluse of Buying. The Brand Awareness  was measured on four indicators: Recognition , Top of Mind , Purchase and Consumption.The Purchase Decision, was measured by three indicators : Convinced when deciding to buy, Careful consideration and Choice Priority. The respondents were categorized into several aspects: Age, Educational Background , Occupation , Income per month , Allowance per month.

 

  1.  Sampling and Data Collection

The population in this study was customers of Secondate brand Cosmetics , purposive samping as a part of the non-probability sampling technique was employed in this research. Two hundred forty four respondents were assigned as the sample. The data was obtained through an online questionnaire, and the results were analyzed with a 5-number Likert Scale. On this scale, a score of 5 indicates that the respondent strongly agrees with the expressed opinion, while a score of 1 indicates that they strongly disagree.

 

  1.  Data Analysis

This study utilised Structural Equation Modeling (SEM) using AMOS 24 software to analyse and evaluate measurement and structural models of research constructs. Fit model testing was performed based on goodness-of-fit index parameters such as CMIN/DF, Root Mean Square Error of Approximation (RMSEA), Root Mean Square Residual (RMSR), Goodness of Fit Index (GFI), Tucker Lewis Index (TLI), Incremental Fit Index (IFI), Comparative Fit Index (CFI), and Normed Fit Index (NFI). Standardised Loading Factor (SLF), a measure of data quality, requires a value of 0.50 to be considered valid. Meanwhile, construct reliability relies on the results of tabulation of Construct Reliability (C.R.) and Average Variance Extracted (AVE) values. SEM analysis aims to determine whether the research hypothesis is accepted or rejected. SEM analysis displays the t-test value for each coefficient. If the t-test is statistically significant at 0.05, then the hypothesis can be stated as having a causal relationship. Furthermore, the indirect effect of the mediation variable is determined by conducting the Sobel test.

3. RESULT AND DISCUSSIONS
  1. Respondent Characteristics

The analysis of the respondents’ profiles in this research was based on the following demographic characteristics:

 

Table 1. Characteristics of Respondents

Category

Items

f

%

AgeUnder 21 

43

17.6

21-30

31-40

41-50

Up to 50

143

32

25

1

58.6

13.1

10.2

0.4

Total

244

100

EducationElementary School

0

0

Junior High School

0

0

Senior High School

86

35.2

Diploma 1/2/3/4

65

26.6

Bachelor's Degree (S1)

92

37.7

Master Degree (S2/S3)

1

0.4

Total

244

100

Job

Student

41

16.8

Civil Servant

57

23.4

Entrepreneur

29

11.9

Private Employee

39

16

Student

69

28.3

Police/Army

4

1.6

State-Owned Entreprises

3

1.2

Other

2

0.8

Total

244

100

Monthly IncomeLess than Rp2.000.000

60

3.8

IDR 2,000,000 - IDR 4,000,000

61

31.3

IDR4,000,000 - IDR6,000,000

37

19

IDR 6,000,000 - IDR 8,000,000

29

14.9

IDR8,000,000 - IDR10,000,000

5

2.6

More than Rp10.000.000

3

1.5

Total

195

100

Allowance Monthly Income Less than Rp1.000.000

41

63.1

IDR 1,000,000 - IDR 1,500,000

11

16.9

IDR 1,500,000 - IDR 2,000,000

7

10.8

IDR 2,000,000 – IDR 2,500,000 

3

4.6

More than Rp2.500.000

3

4.6

Total

65

100


 

 

  1. Measurement and Structural Models

The results of goodness of fit, validity, and reliability tests can be described as follow:

 

Table 2. Measurement Model Results

Variable

Items

SLF

AVE

CR

Social Media 

Influencers

 

Titan Tyra always has an interesting fashion or style.

0.81

0.80

0.94

Titan Tyra is a  trustworthy influencer.

0.80

Titan Tyra has a good ability to communicate Secondate products.

0.80

Word of

 Mouth (WOM)

 

I often hear others talk about positive things.

0.86

0.81

0.95

I get recommendations for Secondate cosmetics from others.

0.88

 The information I received from others encouraged me to buy Secondate cosmetic products.

0.86

Brand

 Awareness

When I was asked to name a brand of cosmetic products, Secondate was the first brand that came to mind.

0.82

0.80

0.96

  When remembering various cosmetic brands,  the Secondate brand is one brand that I remember.

0.81

 The Secondate brand is more familiar than other brands.

0.83

Secondate  is a choice when choosing cosmetic products compared to other brands.

0.82

I think of the Secondate brand when using other brands.

0.73

Purchase  

Decision

I was convinced when deciding to buy Secondate cosmetic products.

0.80

0.82

0.95

My decision to buy Secondate cosmetic products has gone through vigilant consideration.

0.90

Secondate is my priority of choice when deciding to buy cosmetic products.

0.76

Based on Table ]2, the loading factor values of all items on the overall model are above 0.50. It means that the research item is considered valid and is believed to be able to measure the construct of a complete model.

 

Table 3. Goodness of Fit Index

The goodness of Fit Index

Cut off Value

Results

χ2

Expected to be low

197.553

Df 

72

χ2- Significance probability

≥ 0.05

0.000

CMIN/DF

≤ 3.00 pm

2.744

RMR

<0.05

0.024

NFI

≥0.90

0.953

IFI

≥0.90

0.970

TLI

≥0.90

0.962

CFI

≥0.90

0.970

 

Based on the results of goodness of fit (GOF) measurements in table 3, the calculation of the suitability model is acceptable. In addition, the table reveals that seven different metrics indicate a satisfactory fit. CMIN/DF value = 2.744 (3.00), and it has successfully fulfilled the requirements. RMR=0.024 (<0.05) also meets the criteria. NFI=0.953, IFI=0.970, TLI=0.962, and CFI-0.970 are greater than 0.90 and are sufficient to certify that a model is fit.


 

  1. Hypotheses Testing

Fig 1: Full Model Structural Test

 

This study was analysed using Structural Equation Modeling dealing with several variables: social media influencers, word of mouth, and brand awareness of purchase decisions. The model tests the relationship between three independent variables and one dependent variable. The model as a whole is interrelated in this study. 

 

Figure 1 and Table 4 show that the t-score of Instagram's social media influencers concerning brand awareness is 14,712, which is much higher than the t-table value of 1.96. Likewise, the p-value is 0.001and it is considered less than 0.05 (α = 0.05). These results relate to the first hypothesis that Instagram advertisement significantly and positively affects purchase decisions. Secondate's cosmetics have become more well-known as the impact of social media influencers has grown. It demonstrates that role of an influencer has been effective in delivering information about Secondate beauty items to consumers in Indonesia [14,30] Consumers can lessen their fear regarding the product yang by exchanging data, reviews, and comments through social media influencers. As a result, users are more inclined to be certain that they are infected with brands that an influencer supports. [31]

 

In the second hypothesis, the result of the t-test value of social media influencers to the purchase decision is 2.083, and the p-value is less than 0.05 (α = 0.05). It demonstrates that individuals who have a substantial following on social media have a beneficial impact on consumers' decisions about the acquisition of Secondate cosmetic items. Therefore the second hypothesis is accepted. To the extent that Secondate cosmetic products, through Titan Tyra, have been successful in enhancing consumer perceptions to consume the products. These findings are supported by [26,27]] who revealed that social media influencers positively and significantly affect purchasing decisions. 

 

The t-test value of brand awareness and purchase decision is 2.780, and the p-value is less than 0.05 (α = 0.05). The results revealed that brand awareness positively and significantly affects purchase decisions. Thus,  the third hypothesis is accepted and in line with previous studies [32,33] revealing that brand awareness significantly influences purchase decisions. Consumers who are familiar with the brand will experience an increase in their confidence and security when making purchases of Secondate cosmetic items after being provided with information and education regarding these products [29]. Brand awareness is considered as one of the instruments that can influence consumers' purchasing decisions [34]

 

It revealed the t-test value of the word of mouth and purchase decision of 4.141, and the p-value is less than 0.001; less than 0.05 (α = 0.05). It proves that word of mouth has a positive and significant effect on purchase decisions in Secondate cosmetic products; therefore, the fourth hypothesis is accepted, and it is in line with the previous researchers [14,34,35] Due to the proliferation of the internet, it is now much simpler for customers to connect and share information about the items they use, making it much simpler for those customers to acquire knowledge about those products [36] Personal communication channels in words or word of mouth can be an effective marketing strategy because they are generally conveyed by satisfied consumers and can become advertising media for companies [37]

Table 4. Hypothesis Testing

Items

Std Estimate

S.E.

C.R.

p-values

description

SMI

--->

BA

0.873

0.059

14.712

***

Accepted

SMI

--->

PD

0.297

0.143

2.083

0.037

Accepted

B.A.

--->

PD

0.162

0.058

2.780

0.005

Accepted

WOM

--->

PD

0.483

0.117

4.141

***

Accepted

Based on the results of the Sobel test in Table 5, statistical values were obtained on the influencer social media variable for purchase decisions as brand awareness as a mediator variable of 2,744 and a p-value of 0.006. These results showed that the statistical value of the Sobel test was greater than the t-table (1.96), and the p-value obtained was less than 0.05.   It implied that social media influencers' indirect effect on purchase decisions and brand awareness functioned as a mediator variable on Secondate cosmetics products.

4. CONCLUSIONS

This study reveals how social media influencers, product familiarity, and word-of-mouth all play a part in the purchasing decisions of Indonesians for Secondate cosmetics. Therefore, developers and marketers must experiment with various approaches to improve brand recognition by utilising well-known influencers to create more opportunities. This research reveals that brand awareness has a positive and significant effect on the purchasing decisions of  Indonesian consumers for Secondate cosmetic products. For future researchers, the results of this study are expected to be references to develop further and comprehensive research on social media marketing, especially social media influencers, word of mouth and brand awareness on local cosmetic products.

 

Acknowledgements

Special thanks to Faculty of Economics and Business Universitas Tanjungpura and Lembaga Pengelola Dana Pendidikan (LPDP) of Ministry Finance in Indonesia

Conflict of Interest:

The authors declare that they have no conflict of interest

Funding:

No funding sources

Ethical approval:

The study was approved by the Tanjungpura University, Indonesia.

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