Influence of Social Media Marketing, Electronic Word of Mouth and Consumer Engagement to Brand Loyalty in Indonesia Grab Company

Abstract

This study aims to analyze social media marketing, electronic word of mouth, and consumer attachment to brand loyalty in Grab Indonesia. The research design used is quantitative research with a causal approach that examines the effect of exogenous variables (social media marketing, electronic word of mouth, and consumer attachment) on endogenous variables (brand loyalty). The population in this study were consumers of social media followers (Instagram) grab with an infinite number, therefore sampling was carried out using purposive sampling with the consideration of respondents as followers of Instagram grab with a minimum period of following is 6 months and has given "likes" to the grab Instagram posts. The sample used in this study were consumers of online transportation companies (grab) as many as 300 respondents. This research analysis tool uses a structural equation model (SEM). The results showed that the exogenous variables (social media marketing, electronic word of mouth, and consumer attachment) positively and significantly affect endogenous variables (brand loyalty). The variable that has the highest value in influencing brand loyalty is social media marketing. Meanwhile, the variable that directly influences brand loyalty with the lowest regression coefficient is electronic word of mouth.

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“…Namely, customer engagement can positively predict brand loyalty. These results are in line with research by (Tuti & Sulistia, 2022), (Widodo & Febrianti, 2021), and (Bismoaziiz et al, 2021), which state that customer engagement can positively predict brand loyalty. According to (Tuti & Sulistia, 2022), a brand must increase customer involvement so that consumers can increase their desire to order and ultimately increase brand loyalty.…”

“…Besides that, (Tuti & Sulistia, 2022), who researched online stores, showed that customer engagement significantly and positively affects brand loyalty. Other research conducted by (Bismoaziiz et al, 2021) shows that customer engagement has a positive and significant effect on the brand loyalty of online transportation.…”

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“…EWOM and social media content are crucial components of social media marketing to increase engagement [22,23]. Research in this field is still limited and challenging to comprehend despite researchers' increased attention to content marketing and engagement [24,25].…”

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“…The use of social media allows individuals to obtain information that is relevant to them quickly, and the impact of the adoption of this media on the world of marketing is very significant, turning it into a more efficient promotional tool than traditional media (Horbinski, 2019).Apart from that, the use of social media has also influenced people's lifestyles and shopping interests. Indonesian society, which is said to have a high level of self-confidence in its consumer behaviour, is the focus of this research (Bismoaziiz et al, 2021). The fast food industry is also an interesting phenomenon in this context, with increasing demand for practical food with minimal additives (Sari & Basit, 2020).…”

“…Apart from that, the use of social media has also influenced people's lifestyles and shopping interests. Indonesian society, which is said to have a high level of self-confidence in its consumer behaviour, is the focus of this research (Bismoaziiz et al, 2021). The fast food industry is also an interesting phenomenon in this context, with increasing demand for practical food with minimal additives (Sari & Basit, 2020).…”