Advances in Economics, Business and Management Research, volume 220

6th Global Conference on Business, Management, and Entrepreneurship (GCBME 2021)

The Impact of Social Media Marketing on Consumer

Purchase Decisions
Dibias Lazuardi Maulid1,* Ratih Hurriyati 2, Heny Hendrayati3
1
Universitas Pendidikan Indonesia
2
Universitas Pendidikan Indonesia
3
Universitas Pendidikan Indonesia
*
Corresponding author. Email: dibiazlazuardi@gmail.com

ABSTRACT
The purpose of this study is to determine the impact of social media marketing on consumer purchasing decisions for
Indonesian rail transportation service users who operate in a monopoly market. Explanatory research with a quantitative
approach was used in this study. This study utilized five variables: content creation, content sharing, connecting,
community building, and purchase decision structure. The data were gathered through the distribution of online
questionnaires (e-questionnaires) to PT. Kereta Api Indonesia Instagram followers. Descriptive analysis and multiple
linear regression analysis were used to analyze the data. The study found that the variables of Content Creation, Content
Sharing, Connecting, and Community Building had a simultaneous and significant impact on the Purchase Decision
Structure. Then, each variable of Content Creation, Content Sharing, Connecting, and Community Building has a partial
and yet significant impact on the Purchase Decision Structure.

Keywords: Social Media Marketing, Purchase Decision.

1. INTRODUCTION a particular source of concern in gaining better

knowledge and researching social media marketing.
The development of social media and its application
in marketing has a significant impact on business This research aims to see how social media marketing
structure, organizational model changes, and the can influence consumer purchase decisions for the
dynamics of the company's marketing. [1,2] According positive outcome. The customers of PT. Kereta Api
to [3], social media is a collection of internet-based Indonesia, a state-owned transportation company in
applications based on the ideology and foundations of Indonesia, is the subject of this study. The company's
web 2.0 technology. As marketers begin to understand services provide the research with its uniqueness. Unlike
consumer purchasing behavior and increase their other modes of transportation, such as airplanes or other
understanding of consumer feelings toward a particular types of land transportation, such as buses, rail
brand or product, social media has become a component transportation services in Indonesia are controlled by a
of market intelligence [4]. This opportunity can assist single firm with no market competition.
marketers in developing consumer communication,
adjusting marketing messages, and maintaining a brand 1.1. Social Media Marketing
presence in the online marketplace [5].
According to [12], social media marketing is direct or
While social media has been proven to be useful in indirect marketing that uses web-based tools to build
business for learning what customers and the general awareness, recognition, memory, and action for brands,
public think about a company's products and services [6, businesses, products, people, or other entities. Similar to
7], not all customers are comfortable with the technique blogging, microblogging, social networking, social
[8]. When customers are uncomfortable, they are more bookmarking, and icontent sharing, social media
likely to form bad perceptions that influence their marketing is a process that encourages individuals to
purchasing decisions, resulting in a loss of consumer promote their websites, products, or services through
confidence in the company's products and a deterioration online social channels and to communicate by leveraging
of the customer-company relationship. [9,10,11] This is a much larger community who are more likely to do

Copyright © 2022 The Authors. Published by Atlantis Press International B.V.

This is an open access article distributed under the CC BY-NC 4.0 license -http://creativecommons.org/licenses/by-nc/4.0/. 231
 Advances in Economics, Business and Management Research, volume 220

marketing than through traditional advertising channels Consumers have the option of purchasing a product
[13]. Social media marketing is a type of online or spending their money elsewhere. The company should
advertising that uses the cultural context of social concentrate its efforts on people interested in purchasing
communities such as social networks, virtual worlds, the product and other alternatives they are considering.
social news sites, and social opinion sharing sites to
2) Decisions about product form
achieve communication goals [14].
This decision is related to what customers learn about
According to [12], four variables are used to
the products they purchase. In this case, the train service
determine the success of social media marketing:
is in line with what customers expect.
1) Content Creation
3) Brand-related decisions
Engaging content is the foundation of any social
Consumers must choose which brand to purchase
media marketing strategy. The content created must be
because each brand has unique characteristics.
appealing and represent the personality of a company in
order for target consumers to trust it. 4) Decision about the seller
2) Content Sharing Consumers must decide where they will purchase the
product, whether via the train's online application, other
Sharing content with social communities can help a
online applications that also offer train ticket purchasing
company's network, and online audience grow.
services, or other channels.
Depending on the type of content shared, sharing can
result in indirect and direct sales. 5) Decision on product quantity
3) Connecting Consumers can choose the number of products they
wish to purchase. Companies must be able to prepare a
Social networking sites allow the company to meet
large number of products to meet the various needs of
more people who share their interests. Extensive
buyers.
networks can help to foster relationships that can lead to
increased business. When engaging in social networking, 6) Decision about the time of purchase
it is critical to maintaining open and honest
The availability of money owned by consumers is
communication.
closely related to purchasing an item. Companies must
4) Community Building understand the factors that influence consumer
purchasing decisions to manage the timing of production
The social web is a large online community of people
and marketing activities.
who use technology to interact with people worldwide.
With social networking, it is possible to create a 7) Decision on the payment method
community of people who share similar interests on the
Consumers must decide whether to pay in cash or
internet.
installments for the purchased product. The company
must be aware of the buyer's preference for the payment
1.2. Purchase Decision method.
Purchasing decisions are processes in which
consumers evaluate various choices and select one or 1.3. Hypothesis
more based on specific considerations [15]. According to
H1 : Social media marketing, which includes content
[16], purchasing decisions are an evaluation process in
creation, content sharing, connecting, and community
which prospective consumers combine their knowledge
building, has a significant concurrent effect on the
of two or more alternative products and choose one of
Purchase Decision Structure variable.
them. According to [17], consumer decision-making
integrates knowledge to evaluate and choose one of two H2 : The variable Content Creation has a significant
or more alternative behaviors. This integration process partial effect on the variable Purchase Decision Structure.
yields a choice, which is presented cognitively as a desire
H3 : The variable Content Sharing has a significant
to behave. The purchase decision is defined as a
partial effect on the variable Purchase Decision Structure.
consumer's subjective judgment that is reflected after the
general decision to purchase a product or service [18, 19, H4 : The connecting variable has a marginally
20 and 21]. significant effect on the Purchase Decision Structure.
According to [22], purchasing decisions have a H5 : The variable Community Building has a
seven-component structure that includes : significant partial effect on Purchase Decision Structure.
1) Product Type Selection

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2. METHODS percent contribution, as measured by the Adjusted R

Square value. Meanwhile, the rest is influenced by
This was an explanatory study with a quantitative factors outside of this study. As a result, the findings of
approach. The study was carried out by distributing this study indicate that all variables from Social Media
random questionnaires to 41 respondents via the internet. Marketing have a significant effect on the Purchase
In this study, the sample collection technique is non- Decision Structure when considered together. This
probability sampling with a purposive sampling method, means that PT. Kereta Api Indonesia's Social Media
which is a sampling technique that is used if certain Marketing is already good, and if the company gets closer
criteria are met. According to [23], determining a sample to consumers, it can improve Social Media Marketing
size greater than 30 but less than 500 is an appropriate even more, which can improve the Consumer Purchase
and reasonable amount for general research. The Decision Structure for PT. Kereta Api Indonesia's
questionnaire results were analyzed using multiple linear products and services.
regression via the SPSS application for the statistical
method. Table 2 Model Summary

Adjusted R Std. Error if the

3. RESULTS AND DISCUSSION Model R R Square
Square Estimate
1 .735a .540 .524 138.824
3.1. Respondent Characteristics a. Predictors : (Constant), X4, X1, X2, X3
b. Dependent Variable : Y
completed surveys that were then analyzed.
According to the questionnaire results, most respondents
were 58.5 percent female and 41.5 percent male. The findings of this study support [12] assertion that
According to age, the majority of respondents were social media marketing impacts purchasing decisions by
between the ages of 17 and 35, with 87.8 percent of those allowing the public to provide online reviews that can
between the ages of 26 and 35 accounting for as many as influence people's thinking when making purchasing
12.2 percent of those between the ages of 26 and 40. With decisions for a product or service. Furthermore, the
a presentation of 80.5 percent, the most recent education findings of this study back up [24] claim that Social
held by the majority of respondents was undergraduate. Media Marketing has a significant impact on purchasing
The master's degree is only 7.3 percent, while the high decisions. There are several differences between this
school level is 12.2 percent. study and the previous one, including the fact that in this
study, Social Media Marketing is used as a concept with
variables such as Content Creation, Content Sharing,
3.2. Statistical Test Result
Connecting, and Community Building. Regression
Table 1 shows the results of the F test on the Purchase analysis result show by Table 3
Decision Structure variables of Content Creation, Table 3 Regression Analysis Result
Content Sharing, Connecting, and Community Building
with a significance level of 5% or equivalent to 0.05, a Model Unstandardized Standardized t Sig.
significance value of F 0.05, i.e., sig. F of 0.000 was coefficients Coefficients
obtained. As a result, the variables of Content Creation, B Std. Beta
Content Sharing, Connecting, and Community Building Error
significantly affects the Purchase Decision Structure 1 (Constants) 2.442 .943 . 2.589 .011
when combined. X1 .392 .118 .282 2.332 .001
X2 .320 .106 .232 3.020 .003
Table 1 F Test Result X3 .292 .109 .248 2.676 .009
X4 .237 .107 .180 2.218 .029
Anova
Sum of Mean
Model
Squares
Df
Square
F Sig. 3.3. Content Creation
1 Regression 251..390 4 62.847 32.611 .000b
Table 3 shows that Content Creation has a significant
Residual 213.920 111 1.927
and positive effect on the Purchase Decision Structure,
Total 465.310 115
a. Dependent Variable : Y with a regression coefficient value of 0.392. This means
b. Predictors : (Constant), X4, X1, X2, X3 that as the Purchase Decision Structure variable rises, so
will the Content Creation variable. The Partial Test (t-
test) results with a significance level of 5% or equivalent
The findings of this study are illustrated in Table 2, to 0.05 revealed the significance value of t (0.001) 0.05
which concludes the structure of consumer purchasing with a t-value of 3.332. The result also concluded that the
decisions for PT. Kereta Api Indonesia services were respondents that answered agree on the Content Creation
influenced by Content Creation, Content Sharing, variable are the majority. The exciting content provided
Connecting, and Community Building with a 52.4

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by PT. Kereta Api Indonesia's Instagram is sufficient to 4. CONCLUSIONS

make the findings of this study significant.
From this research, it can be concluded that all four
3.4. Content Sharing variables impact consumer purchase decisions, especially
on train service users in Indonesia. Further researchers
According to the Multiple Linear Analysis Test result can expand this research by increasing the number of
in table 3, Content Sharing has a significant and positive respondents to ensure more accurate results, examining
effect on the Purchase Decision Structure, with a other variables that can influence consumer purchasing
regression coefficient value of 0.320. This means that as decisions, and examining other more interesting research
the Purchase Decision Structure variable rises, so will the objects.
content Sharing variable. The partial test (t-test) results
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