CHAPTER III

RESEARCH METHODOLOGY

3.1 Research Characteristics

This study aims to analyze the influence of brand ambassador and three
dimensions of electronic word of mouth, which are eWOM quality, eWOM
quantity, and sender's expertise towards Wardah Colorfit Velvet Matte Lip Mousse
purchase intention based on data in research background.
This research used the quantitative method. The quantitative method is that
several variables are interrelated into a proportion or relationship between variables
determined by the hypothesis, usually in magnitude or direction (Creswell, 2014, p.
86). Meanwhile, according to Yusuf (2014, p. 58), Quantitative research is a
research method that strives promptly measure behavior, social reality, which
means objective and measurable. Therefore, the research results did not deviate
from the actual conditions due to the use of quantitative research with valid and
reliable instruments and precise and precise statistical analysis.
The purpose of this research is descriptive-casual. Descriptive research is
usually carried out when the researcher already knows the variables used to measure
the object of the research but does not yet know how the relationship between these
variables is (Indrawati, 2015, p. 115). In comparison, the purpose of causal research
is used to know the positive or negative relationship between the variables
implemented by experiment or non-experiment (Indrawati, 2015, p. 117). A causal
approach is used to determine definite causal relationships (Sekaran, 2011).
In this research, the type of investigation used is explanatory. An
explanatory method is a method of research that seeks to explain both the role of
the studied variables and the effect of one variable on another (Sugiyono, 2019).
This research used a non-contrived setting. The non-contrived setting is
research conducted in a normal environment, which is a natural environment, and
the researcher does not manipulate the data (Indrawati, 2015, p. 118).

43
 The time horizon in this research used cross-sectional. Cross-sectional is
when the data is proceeded in one period, analyzed, and the conclusion is made
after the data collection is completed (Indrawati, 2015, p. 118). In comparison, the
unit of analysis used in this research is individual.

Table 3.1
Research Characteristics

No. Research Characteristics Type

1 Based on the method Quantitative

2 Based on the purpose Descriptive-causal

3 Based on the type of investigation Explanatory method

4 Based on the research setting Non-contrived setting

5 Based on the unit of analysis Individual

6 Based on the time horizon Cross-sectional

Source: Data Processed by Author (2021)

3.2 Operational Variable
Operational variables are research measurement activities based on specific
characteristics reflected in the dimensions or indicators of research variables
(Widodo, 2017, p. 82).
A variable is anything that have different values and can be changes
(Sekaran & Bougie, 2010). This research include variables are follows:

44
 Table 3.2
Operational Variable
Items Dimension Items on Existing Journal
Brand Celebrities have the ability
Ambassador to convey the intent of the
(X1) message during promotion
(Utami et al., 2020)
Celebrities say honestly
according to the fact when
promoting the product
(Utami et al., 2020)
Celebrities have good
interaction when delivering
message
(Utami et al., 2020)
Celebrities have the ability
to attract prospective
buyers
(Utami et al., 2020)
Celebrities are familiar or
famous
(Utami et al., 2020)
Celebrities have good
personality (Utami et al.,
2020)
Electronic a. EWOM The online review is clear
Word of Quality (Utami et al., 2020)
Mouth (X2)
The online review is
understandable
(Utami et al., 2020)
The online review is
helpful
(Utami et al., 2020)
The online review is
helpful
(Utami et al., 2020)
45
Items in This Research Item Code
Zaskia Sungkar can convey the
intent of the message during the
BA1
promotion of the Wardah Colorfit
Velvet Matte Lip Mousse
Zaskia Sungkar say honestly
according to the fact when
BA2
promoting Wardah Colorfit
Velvet Matte Lip Mousse
Zaskia Sungkar has good
interaction when delivering the
BA3
message of the Wardah Colorfit
Velvet Matte Lip Mousse
Zaskia Sungkar has a good ability
BA4
to attract prospective buyers
Zaskia Sungkar is a familiar or
BA5
famous person
Zaskia Sungkar has good
BA6
personality
The online review about Wardah
Colorfit Velvet Matte Lip
EQL1
Mousse on Instagram is clear for
me
The online review about Wardah
Colorfit Velvet Matte Lip
EQL2
Mousse on Instagram is
understandable for me
The online review of Wardah
Colorfit Velvet Matte Lip
EQL3
Mousse on Instagram is useful
for me to evaluate the product
The online reviews about Wardah
Colorfit Velvet Matte Lip
EQL4
Mousse on Instagram is helpful
for me to recognize the product
continued…

The online review is
credible
(Utami et al., 2020)
The online review has
sufficient reasons
supporting
the opinions (Utami et al.,
2020)
The online review has
sufficient reasons
supporting
the opinions
(Utami et al., 2020)
The online review has
sufficient reasons
supporting the opinions
(Utami et al., 2020)
In general, the quality of
each online review is high
(Utami et al., 2020)
b. EWOM The number of online
Quantity review is
large, inferring that the
product is popular
(Utami et al., 2020)
The quantity of online
review information is
great, inferring
that the product has good
sales
(Utami et al., 2020)
Highly ranking and
recommendation, inferring
that the product has good
reputations
(Utami et al., 2020)
c. Sender’s The persons who provided
Expertise online review, I think they
are experienced (Utami et
al., 2020)
continuance…
In my opinion, the online reviews
on about Wardah Colorfit Velvet
EQL5
Matte Lip Mousse on Instagram
is credible
In my opinion, the online reviews
about Wardah
Colorfit Velvet Matte Lip EQL6
Mousse on Instagram is
convincing
In my opinion, the online reviews
about Wardah Colorfit Velvet
Matte Lip Mousse on Instagram EQL7
is persuasive
In my opinion, the online reviews
about Wardah Colorfit Velvet
EQL8
Matte Lip Mousse on Instagram
is accurate
Overall, the quality of each
online reviews about Wardah
EQL9
Colorfit Velvet Matte Lip
Mousse
The number of online reviews
inferring that Wardah Colorfit
Velvet Matte Lip Mousse is EQN1
popular
The number of online review
inferring that Wardah Colorfit
EQN2
Velvet Matte Lip Mousse is the
best selling
The number of online review
inferring that Wardah Colorfit
EQN3
Velvet Matte Lip Mousse is
trendy
In my opinion, the persons who
provided their online reviews on
Instagram have some experience SE1
using the Wardah Colorfit Velvet
Matte Lip Mousse
continued…
46

The persons who provided
online review, I think they
have abundant knowledge
toward the product
(Utami et al., 2020)
The persons who provided
online review, I think they
have ability on
judgment
(Utami et al., 2020)
The persons who provided
some different ideas than
other sources (Utami et al.,
2020)
The persons mentioned
some things I had not
considered
(Utami et al., 2020)
Purchase I have the intention to buy
Intention (Y) celebrity cake in the future
(Utami et al., 2020)
I think of celebrity cake as
a choice while buying cake
product
(Utami et al., 2020)
I will give efforts to buy
celebrity cake
(Utami et al., 2020)
I have the intention to buy
celebrity cake in the future
(Utami et al., 2020)
Source: Data Processed by Author (2021)
3.2.1 Independent Variable
The independent variable is a direct variable that responds to the research
problem and influences the dependent variable in either positive or negative
(Sekaran & Bougie, 2010). The Independent variable in this research is a brand
continuance…
In my opinion, the persons who
provided their online review on
Instagram have a lot of
SE2
knowledge about Wardah
Colorfit Velvet Matte Lip
Mousse
In my opinion, the persons who
provided online review on
Instagram about Wardah Colorfit SE3
Velvet Matte Lip Mousse they
have ability on judgment
In my opinion, the online review
on Instagram about Wardah
Colorfit Velvet Matte Lip SE4
Mousse that people provide is
different from other sources
In my opinion, people who
provide online reviews on
Instagram can influence new
SE5
considerations in purchasing
intention Wardah Colorfit Velvet
Matte Lip Mousse
After reading the online review
on Instagram, I have the intention
PI1
to buy Wardah Colorfit Velvet
Matte Lip Mousse in the future
Wardah Colorfit Velvet Matte PI2
Lip Mousse is one of my
considerations for buying lipstick
product in the future
I will give efforts to buy Wardah
Colorfit Velvet Matte Lip PI3
Mousse
If sometimes I need a lipstick
product, I will most likely
consider buying Wardah Colorfit PI4
Velvet Matte Lip Mousse
47
 ambassador and electronic word of mouth with three dimensions, which are
electronic word of mouth quality, electronic word of mouth quantity, and sender’s
expertise.
3.2.2 Dependent Variable
The dependent variable is the variable of primary concern to the researcher
(Sekaran & Bougie, 2010). The dependent variable used in this research is purchase
intention.
3.2.3 Scale
A scale is a tool or mechanism used to differentiates variables from one
another in a study (Sekaran & Bougie, 2010).
This research used an interval scale. The interval scale is a metric with both
nominal and ordinal properties which collects information from one observation to
another regarding variations in definition quantities (Zikmund et al., 2013, p. 252).
There is the number on the interval scale. The function of numbers on the interval
scale is a symbol that differentiates a state from another, ranks characteristic
qualities, and shows intervals (Indrawati, 2015, p. 131).
This research used the Likert Scale as a rating scale. The Likert Scale is
established to test how strong respondents agree or disagree with statements on five
points scale with the following: Strongly Agree (score 5), Agree (score 4), Neither
Agree nor Disagree/Neutral (score 3), Disagree (score 2), and Strongly Disagree
(score 1) (Sekaran & Bougie, 2010, p. 152).

Table 3.3
Likert Scale Rating
Answer Scale Score
Strongly Agree (SA) 5

48
 Agree (A) 4
Neither Agree or Disagree/Neutral (N) 3
Disagree (D) 2
Strongly Disagree (SD) 1
Source: (Sekaran & Bougie, 2010)
3.3 Research Stage

Figure 3.1 Research Stage

Source: Data Processed by Author (2021)

This research started by identifying the problem by finding a phenomenon

regarding the analysis of the factors that influence purchase intention. When the
problem has been identified, conduct to define the research objectives and establish
the purpose of this research. Then the author focuses on planning a research design,
where the research development is based on the method, the purpose of research
type, data interference, set-up, analysis system, and research time horizon.
Identify the population and sample conducted when a research design has
been planned. The author identifies population and sample means to determine
which target sample meets the needs of this research. Then the author will collect
research data to get the respondent and review the literature from several research-
related sources by distributing questionnaires using Google Forms online by

49
 Instagram, Line, WhatsApp, Facebook, Twitter, and Telegram in the family group,
class group, business group, and friends group.
After the data has been collected, the author will use specific formulas and
software to analyze and process the data. After the data has been processed and
analyzed, the author will formulate the conclusions and preparing the report.

3.4 Population and Sample

3.4.1 Population
The population is a generalization region consisting of objects or subjects
with specific quantities and characteristics to be investigated by researchers and
conclude. Population not only people but also objects and other natural objects. A
population also includes the amount in the object or subject being studied and all
the characteristics or properties possessed by the subject or object under study
(Sugiyono, 2019, p. 80).
The population is the whole group of individuals, events, and objects that
attract researchers to research them. The population that the researcher for research
has selected will limit the research results obtained (Indrawati, 2015, p. 164).
In this research, the population that the author chooses for this research
would be Wardah Instagram followers with 29,000,000 people.
3.4.2 Sample
The sample is part of the number and characteristics of the population, and
the sample is taken from a truly representative population. The question screening
process is needed before filling out questionnaires to respondents. The goal is that
the data obtained is representative of this study (Sugiyono, 2019, p. 127).
The sample is population members who have chosen to be involved in
research whether they are to be observed, treated, and able to be asked for opinions
on what is being studied (Indrawati, 2015, p. 164).
According to Indrawati et al. (2017, p. 153), for the selected sample to
approach the characteristics of the population, the sampling method used must
consider the representativeness of the population in the sample. To calculate the

50
number of samples, this study uses the Slovin formula because the population size
is known with a certain level of significance.
The bootstrapping analysis in SEM-PLS allows statistical testing of the
hypothesis that the coefficient is equal to zero (null hypothesis) instead of the
alternative hypothesis that the coefficient is not equal to zero (one-tailed test). The
effectiveness of bootstrapping depends on the sample's representativeness in terms
of the targeted population (Hair et al., 2011).
Slovin’s formula to calculate the number of samples needed for this
research with a confidence level of 95% (e= 0.05), with the formula:

(3.1)

Where,
n = number of samples
N = number of total populations
𝛼 = confidence level

The calculation of this research based on Slovin’s formula is:

𝟐𝟗,𝟎𝟎𝟎,𝟎𝟎𝟎
n=𝟏 𝟐𝟗,𝟎𝟎𝟎,𝟎𝟎𝟎 (𝟎.𝟎𝟓)
2 (3.2)

n = 399.99
The calculation using Slovin’s formula is n = 399.99, which rounded up to
400 respondents.
In this research, the author use nonprobability, purposive sampling. The
author chose it because the author has the unknown probability that each member
of the population will have the same opportunity since the respondent is determined
based on the intention or judgment of the author to provide the data for the study.
Nonprobability sampling is that population members do not provide the
same opportunities for every member to be selected as a sample. The results of the
research may not be generalized to the population conclusively (Indrawati, 2015, p.

51
 169). While, purposive sampling is sample members selected on purpose because
researchers believe only that sample can represent or provide information to answer
the research problem being researched (Indrawati, 2015, p. 170).
The author set several characteristics for respondents that can be enrolling
in this research with the criteria:
1. Instagram users
2. People who like to search for references on lipstick product on
Instagram
3. People who know local brand cosmetics (especially Wardah)
4. People who know and have already seen the advertisement of Zaskia
Sungkar x Wardah

3.5 Data Collection

3.5.1 Type of Data
1. Primary Data
Primary data is data obtained from respondents through focus group
questionnaires and panels or data from interviews with the author
(Sujarweni, 2015, p. 89). The survey method that was used in this
research is distributed online questionnaires and spread through
Instagram, Line, WhatsApp, Facebook, Twitter, and Telegram in family
groups, class groups, and business groups by using Google Form with
several characteristics for respondents that can be enrolling in this
research already set. The very critical screening question is that people
who know and have already seen the advertisement of Zaskia Sungkar
x Wardah. The people who do not know the Zaskia Sungkar x Wardah
advertisement cannot fulfill the questionnaire.
2. Secondary Data
Secondary data is data obtained from notes, books, and magazines in the
form of financial statements of corporate publications, government
reports, articles, books as a theory (Sujarweni, 2015, p. 89). The author
uses various sources in this research, including books, journals, articles,

52
 previous research, and other information via the internet deemed
relevant to the research topic.

3.6 Validity and Reliability Test

3.6.1 Validity Test
Validity is an index that shows the extent to which a measuring instrument
measures what needs to be measured. If a measurement instrument is valid, it means
the instrument can measure objects correctly. This validity is called construct
validity (Neolaka, 2014, p. 115). Validity content should be obtained by testing
each item used in the logically valid questionnaire for calculating description items
and indicators applied (Indrawati, 2015, p. 147). The validity test aims to determine
the extent to which the instrument developed measures a particular concept
(Sekaran & Bougie, 2010).
In this research, the author refined the elements of the questionnaire to meet
the needs of this study. The questionnaire items used by the author in this study
were adopted and modified from previous studies. After that, the author will
examine the elements of the questionnaire. Furthermore, the author ensures each
item on the questionnaire to be easily understood by the respondent when answering
the questionnaire. The validity test is taken based on the data obtained from the
questionnaire result using Pearson Product Moment Correlation.

(3.3)

Where,
r = Pearson product-moment correlation with the value of attitude
n = the number of samples
X = the total number of X score
Y = the total number of Y score
X2 = the total squares of the X score
Y2 = the total squares of the Y

53
 To test the validity of this research, the author uses 30 respondents. The
minimum limit that the author must take is 30 samples, but the more significant
sample of the total population is better (Cohen et al., 2007).
In this research, to process the data, the author uses IBM SPSS Statistic 25
as a tool and Corrected item-total Correlation (CITC) as a method with a
significance level ( ) = 0.05 and the number of samples (n) = 30 respondents.
So the correlation r-table is 0.361 obtained with the validity criteria:

1. Valid, if r value > rtable

2. Not valid, if r value < rtable

Table 3.4
Validity Test Results
Corrected
Variable Dimension Item Item Total rTable Result
Correlation
BA1 0.881 0.361 Valid
BA2 0.911 0.361 Valid
Brand BA3 0.940 0.361 Valid
Ambassador BA4 0.927 0.361 Valid
BA5 0.888 0.361 Valid
BA6 0.926 0.361 Valid
EQL1 0.799 0.361 Valid
EQL2 0.773 0.361 Valid
EQL3 0.874 0.361 Valid
EQL4 0.821 0.361 Valid
EWOM Quality EQL5 0.860 0.361 Valid
EQL6 0.819 0.361 Valid
EQL7 0.911 0.361 Valid
Electronic
EQL8 0.893 0.361 Valid
Word of
EQL9 0.926 0.361 Valid
Mouth
EQN1 0.911 0.361 Valid
EWOM Quantity EQN2 0.902 0.361 Valid
EQN3 0.951 0.361 Valid
SE1 0.870 0.361 Valid
SE2 0.921 0.361 Valid
Sender’s Expertise
SE3 0.809 0.361 Valid
SE4 0.866 0.361 Valid
continued…

54
 continuance…
SE5 0.830 0.361 Valid
PI1 0.860 0.361 Valid
Purchase PI2 0.911 0.361 Valid
Intention PI3 0.818 0.361 Valid
PI4 0.845 0.361 Valid
Source: Data Processed by Author (2021)

3.6.2 Reliability Test

A reliability test is a test that focused on measuring stability and consistency
(Indrawati, 2015: 145). If the research result measurement is consistent means
reliability is achieved, where the instrument used several times to measure the same
subject will produce the same data (Timotius, 2017). Reliability is an indicator of
the internal consistency measurement (Zikmund et al., 2013).
All items on the questionnaire must be reliable, meaning they can be used
repeatedly but still provide relevant and consistent results because reliability
concerns the level of confidence, reliability, and consistency of measured results
(Indrawati, 2015, p. 155). To measure reliability in this research, the author uses an
internal reliability test. To analyze internal reliability can use the Cronbach Alpha
method (Neolaka, 2014, p. 122). The Cronbach Alpha formula is as follows:

rxy = ( )(1 )
( )
(3.4)

Where,
Rxy = Cronbach Alpha reliability coefficient
K = number of items
2
= number of variance each item
𝑏
2
= number of total variance score
𝑡
The measurement indicator can be described reliability or good with the
Cronbach Alpha coefficient of at least 0.7 (Hair et al., 2010).

55
 Table 3.5
Reliability Test Results
Cronbach’s
Variable Dimension Result
Alpha
Brand Ambassador 0.957 Reliable
EWOM Quality 0.953 Reliable
Electronic Word of Mouth EWOM Quantity 0.909 Reliable
Sender’s Expertise 0.911 Reliable
Purchase Intention 0.879 Reliable
Source: Data Processed by Author (2021)
The validity and reliability results carried out with three variables and 27
items proposed in this study proved valid and reliable, which means that the
proposed measurement used in this study is ready for further use. Evidence of
validity and reliability test using IBM SPSS 25 Statistical Software is attached in
the attachment.

3.7 Data Analysis Technique

In quantitative methods, there are three techniques to analyze data based on
the number of processed variables: univariate technique, bivariate technique, and a
multivariate technique. The univariate technique is a technique used to analyze
single variables. The bivariate technique is a technique used to analyze the
relationship between two variables. The multivariate technique is used to analyze
the relationship of more than two variables (Indrawati, 2015, p. 184). This study
used a multivariate technique.
Based on the existence of the dependent variable, there are two groups in
the multivariate technique, namely the dependency method and the
interdependency method. The dependence method is used to measure at least one
variable in the multiple variables to be measured. The interdependence method is
used to measure multiple variables with no dependent variable (Zikmund et al.,
2013). This research used Structural Equation Modeling (SEM).
3.7.1 Structural Equation Modeling
According to Ghazali & Latan (2012, p. 5), SEM combines factor analysis
and path analysis that allows researchers to build, test, and confirm complex

56
relationship models. In SEM, systematic and comprehensive analysis is used to
answer research questions. SEM is used to analyze complex research models.
SEM is a procedure for estimating a series of dependent relationships,
concepts, or constructs represented by more than one measured variable and entered
into an integrated model. There are two subjects, namely the measurement model
and the structural model, which consists of SEM. The measurement model
determines how the constructs are represented, whereas how the constructs are
interrelated tested by the structural model. The structural model was modified and
tested using SEM. If tested by SEM, the hypothesis will be valid with the
measurement model that meets the research requirements (Malhotra, 2010).
There are four functions of SEM (Malhotra, 2010) such as:
1. Assess the properties of measurement and test proposed theoretical
relationships using a single technique
2. Be able to represent constructs that cannot be observed or are latent
factors in a dependency relationship
3. Estimate multiple and interrelated dependency relationships combined
in a single model
4. Determine the validity of a particular model, confirm whether certain
factors or constructs exist, and contain the observed variables or
expected indicators based on theory.
Structural equation modeling has two groups: covariance-based matrix
structural equation modeling (CB-SEM) and variance-based matrix structural
equation modeling (VB-SEM). CB-SEM focuses on how the structural model fits
with the results of observations and provides explanations, and focuses on
explaining the relationship between items in the variables and confirming the
model. Meanwhile, VB-SEM focused on making predictions from construct
relationships or dependent and independent variables in a model. PLS statistical
analysis is focused on explaining variance and explanatory purposes (Indrawati,
2015, p. 198). To conduct statistical analysis in this study, the author used PLS.

57
 3.7.1.1 Partial Least Square
Partial least square (PLS) is a multivariate statistical technique that focuses
on prediction and exploration of variance and is used for structural equation
modeling in variant-based matrix structure groups (VB-SEM) (Vinzi et al., 2010).
This study uses PLS. This study focuses on predicting the primary target
constructs or identifying driving and exploratory constructs or extensions of
existing structural theories, maximizing the variance explained in the dependent
constructs' dependencies, and evaluating data quality based on the characteristics
of the measurement model. In this research, the author use Partial Least Square
according to the reasons stated on Indrawati et al. (2017, p. 68), as follows:
1. Types of research in the field of information systems and information
management generally use PLS as their statistical analysis.
2. In general, PLS is commonly used in marketing research.
3. Data processing in PLS does not need data conditions with normal
distribution and the significance test in PLS uses a bootstrap procedure.
That way, PLS does not require data that is normally distributed, and
data normality is not required.
4. There are no specific data type requirements in using PLS. Various types
of scales such as nominal, ordinal, interval, and ratio can be processed
using PLS.
5. PLS can be used to process data in small and large sizes, from 38 to
more than 1,000 samples.
6. The main purpose of using PLS is to make predictions.
According to Indrawati et al. (2017, pp. 69–70), there are two test models in
processing data using PLS, namely the assessment of the measurement model (outer
model) and assessment of the structural model (inner model). The external model
is used to test the validity and reliability of data collection tools using all primary
data and test indicators against latent variables. Meanwhile, the inner model is used
to test the effect of latent variables on other latent variables. This test uses the
percentage of variance, namely R2, for the latent dependent variable, influenced by

58
the independent latent variable. The t-statistic test was used to estimate this stability
through the bootstrap procedure using SmartPLS 2.0.
3.7.1.2 Data Processing Using Partial Least Square
In this study, there are three steps in data processing using Partial Least
Square (PLS), including assessment of the measurement model, assessment of the
structural model, and assessment of the influence of the moderating variable. The
following steps must be taken in processing data using PLS according to Indrawati
et al. (2017, pp. 69–72) as follows:
1. Assessment of the measurement model or outer model
This test is to test the validity and reliability with data collection tools using
the overall primary data. In principle, it is to test the latent variable indicator
(measure how far the indicator/item can explain the latent variable). The
indicators used are convergent validity, discriminant validity, and
reliability.
a. Convergent validity measures the level of accuracy of an item or a set
of items in a variable against what the researcher wants to measure. The
item being measured is considered valid if the FL value is greater than
0.7. For explanatory research, items can be considered valid if the FL
value is less than 0.7 (0.5-0.6). Convergent validity can be measured
using Average Variance Extracted (AVE). AVE is used to measure how
much the items are used to measure a converge variable (correlated)
compared to other variables in a model.
b. Discriminant validity is used to measure how much the items that
measure a variable are different and measure other variables that are not
intended to be measured. The cross-loading value is the criterion used
to measure discriminant validity. The cross-loading value explains the
significant correlation between each variable and indicators from other
block constructs.
c. Reliability, in this case, is the internal consistency reliability used to
measure how much the variable increases when the latent variable
increases. Cronbach's Alpha (CA) or Composite Reliability (CR) was

59
 used to measure internal consistency. For exploratory research, the
recommended CA and CR values are 0.7, and for more advanced
studies, the recommended CA and CR values are more than 0.7.
2. Assessment of the structural model or inner model
Assessment of the structural model or inner model is the second test in using
PLS. This step is to test the effect of one latent variable with other latent
variables. To find out whether the results are significant or not, it can be
done by looking at the path value (t) by carrying out the bootstrapping
process. Apart from the path value (t), it can be seen from R 2 for the
independent latent variable that affects the latent dependent variable.
3. Assessment of the influence of moderator variables
The product term approach and group comparison approach are two types
of analysis commonly used to assess the influence of moderator variables in
using PLS. In this study, the author uses a group comparison approach. In
the group comparison approach, multicollinearity usually does not occur.
The calculation results can produce a reasonable standard error and easily
determine the predictor variables' effect. The group comparison approach is
divided into two data based on the moderator category and then calculated
using SmartPLS. The path value (t) and standard error of each group are
generated. This value is then entered in the chin formula so that the t statistic
will be obtained. The t statistic will then be used as a benchmark to analyze
whether there are significant differences between the two groups or not.
Chin's formula as follows:

(3.5)

Where,
t = t statistic is significant, if the t statistic at least 1.645
s.e. = standard error
Pathsample1 = path of group 1
Pathsample2 = path of group 2

60
3.7.2 Descriptive Analysis
In this research, the author uses descriptive analysis as a data analysis
technique. Descriptive analysis is a data analysis technique used to describe the
research variable conditions. The descriptive result can be seen as the condition of
the research variable, whether in good condition, sufficient, or insufficient
(Widodo, 2017, p. 16). Descriptive analysis is a technique used to describe and
analyze data without making a general conclusion (Sugiyono, 2019, p. 206).
Calculating the questionnaire result is relevant to the research question
because the result is known to the respondents’ perceptions. From the questionnaire
result, the author creates used 5-point Likert Scale and conducts a distribution of
frequencies and a linear continuum analysis to describe the respondents’
perceptions based on the variables. The frequency distribution is accomplished by
making class interval groups into five intervals: very low, low, medium, high, and
very high.
According to Riduwan (2012), grouping interval classes can be conducted by:
1. The cumulative score is the total score of respondents’ answers. The total
score is from the multiplication and math addition multiplication result of
the total on each scale.
2. The percentage is the cumulative score divided by the frequency score and
multiplied by 100%.
3. The total number of respondents is 400 with the highest scale is 5 and the
lowest scale is 1.
4. From the calculation, the interval group is divided into five categories. The
five categories of interval groups, which are:
a. 20% - 36% is “Very Low” category,
b. > 36% - 52% is “Low” category,
c. > 52% - 68% is “Medium” category,
d. > 68% - 84% is “High” category, and
e. > 84% - 100% is “Very High” category.

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 Table 3.6
Score Category
Percentage Category
20% - 36% Very Low
> 36% - 52% Low
> 52% - 68% Medium
> 68% - 84% High
> 84% - 100% Very High
Source: (Riduwan, 2012)
The categories of percentage obtained from the previous calculation,
it will be illustrated in the continuum line as Figure 3.2.

Figure 3.2 Continuum Line

Source: (Riduwan, 2012)
The calculation of the total score of each variable indicator as follows:
1. Total score = (number of respondents strongly agree x 5) + (number of
respondents agree x 4) + (number of respondents neutral x 3) + (number of
respondents disagree x 2) + (number of respondents strongly disagree x 1)
2. Ideal score = (assuming all respondents answered strongly) x (total score)

3. Category classification (%) = x 100%

3.7.3 Goodness of Fit Test

To test the validation of the overall model in this research, the author use
the Goodness of Fit (GoF) test. The Goodness of Fit is a measurement used to
analyze how well the specified model fits the observed or sample data, so higher
values of these measures are desirable (Malhotra et al., 2017, p. 806). The formula
of GoF index (Henseler & Sarstedt, 2012) is:

(3.6)

62
Where,
𝐴𝑉𝐸 = the averages of communalities index
R2 = the R2 model
GoF = The GoF value between 0-1 with the interpretation of the value being 0.1
(small GoF), 0.25 (medium GoF), and 0.36 (large GoF)

3.8 Hypothesis Testing

The hypothesis is a temporary answer to the research problem statement,
where the research problem has been stated in the form of a question sentence
(Sugiyono, 2019, p. 99). The hypothesis is a presumption or assumption that must
be tested through data or research facts (Dantes, 2012). Hypotheses are tested by
comparing the researchers' guesses with the empirical reality of the study (Zikmund
et al., 2013).
This research was conducted with a one-tailed test. The level of confidence
used to test the business research hypothesis is 95%. Therefore, the author uses a
significance level of 5%, inner model shown by t-statistic, for the one-tailed
hypothesis t-statistic > 1.645 (Hair et al., 2011). In one-tailed hypothesis t-statistic
> 1.645 on the path between variable with p-value < 0.05, it shows a significant
relationship (Ghozali & Latan, 2014, p. 80).

Figure 3.3 H0 Rejection Area on One-Tailed Test

Source: (Riduwan, 2010)

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 For 𝛼 score 0.05:
H0 is accepted if the t-statistic < 1.645
H1 is accepted if the t-statistic > 1.645
Hypothesis testing 1
H0: Brand Ambassador has no positive and significant influence towards Purchase
Intention
H1: Brand Ambassador has a positive and significant influence towards Purchase
Intention
Hypothesis testing 2
H0: Electronic Word of Mouth Quality has no positive and significant influence
towards Purchase Intention
H1: Electronic Word of Mouth Quality has a positive and significant influence
towards Purchase Intention
Hypothesis testing 3
H0: Electronic Word of Mouth Quantity has no positive and significant influence
towards Purchase Intention
H1: Electronic Word of Mouth Quantity has a positive and significant influence
towards Purchase Intention
Hypothesis testing 4
H0: Sender’s Expertise has no positive and significant influence towards Purchase
Intention
H1: Sender’s Expertise has a positive and significant influence towards Purchase
Intention

64