The Assignment: Advance Marketing (MGT 609)

Semester: Fall 2022

Submitted to: Dr. Ameer Rajput.

Submitted by: Junaid Afzal

Registration number: FA22- RMS- 003

Due date: 25th December, 2022 4th January, 2023

FIELD: Masters in Management Science Specialization in Finance

Topic: Effect of social media marketing of brand on purchase intention of customer

keeping brand trust and customer price perception as mediator

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 Introduction

Customer purchase intention is dependent ofon many variables, in this study we will critically
analysisanalyze the effect of Effect of social media marketing of a brand on the purchase
intention of customercustomers keeping brand trust and customer price perception as mediator.
Formmediators. From the literature review, we concluded that, price perception is positively
impacted customer purchase intention. Also, from the literature review, we concluded that brand
trust also has a positive impact on the purchase intention of customercustomers in the social
media marketing of the brand. The background of this study is to answersanswer how social
media marketing of a brand effectsaffects the customer purchase intention after keeping these
questions as mediating, does price perception affect customer purchase intention, and Does brand
trust affect customer purchase intention.? Making a positive Customer purchase intention is
ultimately the objective of all marketing done to influence customer’scustomers’ purchase
intentions. Both mediator brand trust and customer price perception model have a positive
impact on influencing customer purchase intentions, but some time due tosometimes social
media marketing of the brand is greatly impacted on brand trust, irrespective of the price
perception model. Such as the purchase intention of customers with high paying power is only
affected by the brand trust. But the intention of low -paying power, purchase intention is mostly
impacted by price perceptions. .

Keywords social media marketing of brand, brand trust, price perception model, customer
purchase intentions.

Independent variable mediator variables dependent variable

. . . .

Brand Trust

Customer Purchase
Social Media Marketing
Intention
of Brand
Price Perception Model

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Social Media Marketing of Brand

Social media marketing of a brand is a marketing tool by which companies can communicate
with consumers effectively (easily and with a very small amount of expense and time) in
building brand trust instead of other old traditional methods such as new papers and face -to -
face marketing. It is the easiest and most economical way of marketing any product or brand in
the current era. Among the most significant developments in social media is the introduction of
Facebook, Twitter, Instagram, YouTube, Tik-TokTikTok, and others like them which have
accelerated the potential for business -to -consumer communications. Consequently, many
organizations have leveraged their marketing efforts on social media; these include retail stores,
airlines, hotels, and educational institutions (Chinje, 2018).(Chinje, 2018). Just due to social
media marketing marketermarketers are now eligible to communicate and exchange information
with the target audience through a virtual channels  in an effective manner which is very useful
and helpful for all stakeholders such as customers, consumers, and marketers. Due to these,
social media marketing is now the best -acknowledged online selling platform. For example,
approximately a quarter of consumers tend to share their buying experiences on social
media(Jain, 2018). In general,(Statista, 2021) (Jain, 2018). In general, (Statista, 2021) states that
the penetration rate of social media in Malaysia is one of the highest in the Asia–Pacific region:
74% of the Malaysia’s population have access to social media platforms where they socialize and
obtain the latest market information. So, customer purchase intention is greatly impacted on by
social media marketing. In the current era people are now busy they do not have time to pay
attention on face-to-face marketing, instead of this they now use and entertain social media
marketing such as communication done by some social media apps and sites like Facebook,
Instagram, snapchat and YouTube. So, for making good influence on customer purchase
intention, it is very necessary. Social media marketing is not only factor on customer purchases
intention they are many other factors which also mediates then relationship of social media

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marketing and customer purchase intention such as brand trust, customer price perception model
and other factor behind the scope of our study. In this era, many brands use the power of
social media marketing in creating, sustaining, engaging, and interacting with their new
potential consumers. Due to social media marketing provides the policy maker multiple
opportunities to grab new customer and can be helpful for detaining their old and new
customer with the help of social media marketing in very short time (Ra’d Almestarihi,
Gasawneh, Malik Khlaif Gharaibeh, & Odai Nawras, 2021) .(Ra’d Almestarihi, Gasawneh, Malik
Khlaif Gharaibeh, & Odai Nawras, 2021). customers which are acquired by social media
marketing can express their feedback easily as compared to traditional marketing also they
act as ambassadors if their experience is good.   Regardless of the fact that social media
marketing allows brands and marketers unlimited potential, there have been numerous
instances where traditional methods of advertising have failed, and businesses are not in
full command of their brand identities. Customers almost always provide feedback on the
products they have purchased and their interactions with other users. Sites with millions of
users will proliferate bad experiences as they are shared. This seriously influences a business
(Ra’d Almestarihi et al., 2021).This seriously influences a business (Ra’d Almestarihi et al., 2021).
So social media marketing may have negative impact on influencing customer purchase
intention if they are negative feedback old customers (Ra’d Almestarihi et al., 2021). (Ra’d
Almestarihi et al., 2021).  Due to social media marketing, level of audience is not much
enhanced to global level. Business is now very much concerned about how they can take
maximum benefit to enhance brand and so influence customer purchase intention.
Previous studies shown they is positive association of social media marketing in brand
association (Llopis-Amorós, Gil-Saura, Ruiz-Molina, & Fuentes-Blasco, 2019; Vinh, Phuong, Nga, &
Nguyen, 2019).(Llopis-Amorós, Gil-Saura, Ruiz-Molina, & Fuentes-Blasco, 2019; Vinh, Phuong,
Nga, & Nguyen, 2019). Social media marketing of brand impact on brand awareness and
also product awareness of that brand which causes the positive influence on customer
purchase intention. Social media marketing of brands has a positive influence on perceived
quality which also ultimately influence customer purchase intention(Cheung, Pires, &
Rosenberger III, 2020; Llopis-Amorós et al., 2019). Many studies also shows that social media marketing
directly influences loyalty (Amoako, Okpattah, & Arthur, 2019; Ebrahim, 2020). Social media marketing
also have positive impact on brand image (Savitri, Hurriyati, Wibowo, & Hendrayati, 2022).
(Cheung, Pires, & Rosenberger III, 2020; Llopis-Amorós et al., 2019). Many studies also shows
that social media marketing directly influences loyalty (Amoako, Okpattah, & Arthur, 2019;
Ebrahim, 2020). Social media marketing also have positive impact on brand image (Savitri,
Hurriyati, Wibowo, & Hendrayati, 2022). Social media is the preferred method of internet
use in Indonesia, which is why e-marketing, or the use of marketing tricks using social
media to promote a product or company's brand, is expanding. Due of the lack of direct
face-to-face contact, consumers will indeed find it simpler to find more information about
the things they wish to purchase (Sanny, Arina, Maulidya, & Pertiwi, 2020).(Sanny, Arina,
Maulidya, & Pertiwi, 2020). Customer can easily get their required information from social
media instead of face-to-face meetings. Social media have rich content comprising of high
information, uploaded by peoples who use social media technology, which is very easily to
access, effective communication with customers. This technology has broadened the
marketing scopes (Yuliantoro, Goeltom, Juliana, Pramono, & Purwanto, 2019).(Yuliantoro,
Goeltom, Juliana, Pramono, & Purwanto, 2019). Due to social media marketing the more
commonly a product is displayed on social media, the more routinely it is discussed, and it
can promote word-of-mouth advertisement where consumers who do not directly see the
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product on social media might learn about it (Rahadjeng et al., 2022).(Rahadjeng et al., 2022).
Based on observation of the previous studies, the current direction of traditional marketing
in the coming years, marketing activities (e.g., promotion, advertising, and campaigns) will
be fully dominated and controlled by social media platforms. (Hande et al., 2021; Ibrahim,
2022). (Koay, Ong, Khoo, & Yeoh, 2020)(Hande et al., 2021; Ibrahim, 2022). (Koay, Ong, Khoo, &
Yeoh, 2020) define, social media marketing as “how consumers perceive a company or
brand engagement in various social media marketing activities”. After a covid-19
pandemic, the trend of online sales and purchased is grow very speedily in whole world. So,
special emphasis is given to social media marketing of brands as it target customers more effectively
(Dubbelink, Herrando, & Constantinides, 2021).So, special emphasis is given to social media
marketing of brands as it targets customers more effectively (Dubbelink, Herrando, &
Constantinides, 2021). With the help of social media marketing, firm can increase the volume of
sale which will ultimately effect the profit of that firm (Savitri, Hurriyati et al. 2022) . Effective
result of social media marketing on purchase intention is only obtain if they are some mediating
and moderating factors such as brand trust, price perception model and product image. Due to
these moderator and mediator researcher concludes that social media marketing of brand if more
effected on customer purchase intention. The use of social media is considered very
important, because of its wide and unlimited reach. Thus, it will provide many benefits for
entrepreneurs (Saputra, Setyoko, & Kurniasih, 2022).(Saputra, Setyoko, & Kurniasih, 2022).
Making the most of social media will enable businesses to create strong connections with
clients and rivals, enhancing their capabilities and, eventually, their performance. One of
them is enhancing marketing performance, which may be measured by rising revenue,
sales volume, and consumer base. The effective use of social media has an effect on sales
revenue(Olanrewaju, Hossain, Whiteside, & Mercieca, 2020) (Olanrewaju, Hossain, Whiteside, &
Mercieca, 2020) this mean they is significancy of social media marketing in influencing
purchase intention of customers. It is impossible to ignore the advantages of social media
use, which dramatically increases sales. the availability of social media as a catalyst for
ongoing, sustained marketing initiatives. Utilizing social media for brand or product
promotion helps build a very strong network for it. Using social media as a tool for
marketing does not mean doing away with much more existing technique, such face-to-face
communication with consumers, partners, and suppliers. Conversely, the accessibility to
social media might be a complement to traditional routes, at least under the present
circumstances where it is risky to meet in person. Social media can be important for having a
constant touch and communications with certain parties (Saputra et al., 2022). According to (Saputra et
al., 2022) and (Ningsih & Afriaris, 2021),Social media marketing of any brand is impacted by many
factors and multiple research projects has been already conducted in many countries. Social
media can be important for having a constant touch and communications with certain parties
(Saputra et al., 2022).  According to (Saputra et al., 2022) and (Ningsih & Afriaris, 2021), The
use of social media has a positive relationship to the marketing performance and customer
purchase intentions of service and brands. The literature view ravels that social media
marketing of brand has significant and positive impact on brand loyalty and brand image
and this leads to influence customer purchase intentions.
Brand Trust

Brand trust is simply the consumer's willingness to believe that a brand's products are superior to
those of other brands and the best available in the modern world. Brand trust is crucial for

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effective marketing, particularly in social media marketing for brands. To maintain consumer
trust, brand reputation is just as crucial as perceptions of value and quality. There are numerous
instances where a buyer is content with the perceived value of a product but decides against
making a purchase because he does not trust the brand. Therefore, brand credibility is essential
for the successful social media marketing of a brand. For customer customers to buy back
products from the company, the company must introduce its products well to build brand trust in
customer (Sulivyo & Ekasari, 2021).customers (Sulivyo & Ekasari, 2021). So, brand trust is thea
vital component to build long -term relationship relationships with consumers as well as
customers. Trust is always Sobuilt after fulfilling of expectations of the second party, here
customers and consumers. So, for effective marketing of the brand, brand trust plays a vital role
in influencing the customer purchase intentions. built after fulfilling of expectation of second
party, here customers and consumers. Trust is the willingness of a person to rely on others at a
certain risk (Atulkar, 2020).(Atulkar, 2020). In social media marketing of the brand, brand trust
causes the hope of high expectationexpectations in customers such as emirates airline has a good
brand name, after a little bit of social media marketing, the purchase decision of
customercustomers is highly influenced. Because, due to social media marketing of brand
(emirates) recalls about emirates, emirates have a great brand name, so a customer with high
expectation startingexpectations starts to buy the product/ service of that brand. Brand trust is
developed by many factors such as past experience and world of the month, by hearing already
experienced customers about the brand. So, brand trust is a combination of two important factor
offactors knowledge and experience. Price perception is also  important to factor or brand. In this
advanceadvanced era, the customer is validating brand trust again and again by comparing of
price, quality, and quantity of items of a different brand. This is only due to the advancement of
social media marketing. Brand Trust represents the recognition that brand value can be created
and developed by regulating several aspects that exceed customer satisfaction with performance.
(Sulivyo & Ekasari, 2021).Brands trust are(Sulivyo & Ekasari, 2021). Brand trust is valuable pieces
of legal property for any business, capable of affecting customers customers' intentions (Ra’d Almestarihi
et al., 2021). (Nagoya et al., 2021)and (Ra’d Almestarihi et al., 2021)(Ra’d Almestarihi et al., 2021).
Nagoya et al. (2021) and Ronald et al. (2020), social media can be used to encourage a consumer to
express his/her opinion on the product or service offered, and publish his/her opinion inon social
networks on the internet, which can later increase the knowledge of consumers who read the comments or
opinions of that person on the market and the goods or services offered so that they are more likely to

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inform friends and colleagues about the products they see. The use of internet in various countries is
dominated by social media. Therefore, Brand Image can indirectly improve consumer purchasing
decisions.

Preposition 1: social media marketing has positive relation on customer purchase intentions.

Price Perception Model

Basically , the price perception model is defined as the amount of money that a seller demands from the
customer to render a service or product that he has renders (ARTIK & Duygun).rendered (ARTIK &
Duygun). The basic concept of price means "the value for money of something in selling or buying,
worth, pricey (ARTIK & Duygun). Price (ARTIK & Duygun). The price perception variable havehas a
positive significancy withsignificance on customer purchase intentions. (Susilawati, Prastiwi, &
Kartika, 2022).(Susilawati, Prastiwi, & Kartika, 2022). Price perception refers to a consumer's
evaluation and the emotional aspect that goes with it of whether the price being supplied by the
seller and the price in comparison to other parties is fair, reasonable, or rational (Rahayu, 2021).
(Rahayu, 2021).  It is very common in the marketing, that a customer’customer’s perception of
the price depends on a very sharp comparison of the market price of that demographic. Due to
social media marketing, they are many apps and websites that, make comparisoncomparisons of
quality and quantity inat a very fast speed without any serious effect done by customercustomers
in a very short time. So, marketermarketers should exercise due care in practicing social media
marketing of their brand(ARTIK & Duygun). (ARTIK & Duygun). Social media marketing of
brandbrands is much impacted by mediator name as customer purchase price perception model.
So, the price perception of the product is differentiated on the basis of price whether it is low, or
reasonable andreasonably high, which havehas a great impact ofon customer purchase intention.
Price perception, and positively and significantly affect the satisfaction of customers (Arigata,
Anggraini, & Ribek, 2022) (Muhammad, 2018) and (Wiedyani & Prabowo, 2019).(Arigata,
Anggraini, & Ribek, 2022) (Muhammad, 2018) and (Wiedyani & Prabowo, 2019). Price
perception can be taken in two contexts, one is from the seller context and otheranother one is
buyer content. In seller contexts, the best price is cost plus his reasonable margin. In contextsthe
context of the buyer, price is the value of a product or servicesservice in the eye of the buyer.
Price perception can also be referred to as psychology state, the price in the bottom right
appearappears higher than the actual (Williams, 2018),(Williams, 2018), while the price in only

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the bottom looks lower (Odhong' et al., 2019).(Odhong' et al., 2019). Price perception is the
amount of money that is charged for a service or a product or the amount of value exchanged by
both parties I-e ( sellers and buyers) to utilize the service or a product(Ricardo, 2021). (Ricardo,
2021). It is an emotional form about the price of a product or service, eitherwhether the price is
acceptable, justifiable and reasonable (Ricardo, 2021).(Ricardo, 2021). Price Perception can be
applied according to two indicators, number one is Price according to the benefits and the second one is
the price according to the quality, both will effect on Customer Satisfaction (Husadha, Hidayat, Suryati,
Prasetyo, & Meutia, 2021)affect Customer Satisfaction (Husadha, Hidayat, Suryati, Prasetyo, & Meutia,
2021) So, this can be concluded that the price offered by the seller to the consumer will lead to the
customer satisfaction, and in this era, customer make purchase intention if he is satisfied aboutwith the
product or services before actual purchase because of feedback by other customer and information
available in social media due to social media marketing enhancement. Price Perception havehas a positive
and significant effect on customer purchasing decisions (Agesti, Ridwan, & Budiarti, 2021).
Customers(Agesti, Ridwan, & Budiarti, 2021). Customers' understanding of the deep meaning aboutof the
product or service is often term as price perception. If a brand effectively maintainmaintains pricing
according to its customer, then price perception can play a vital role as a mediator. The term mediator
means the variable by which the independent effect on the dependent variable can be influenced. So, if
Price perception is efficiently maintained thenthe effect of social media marketing is enhanced on
customer purchasedpurchase intentions. In many  Many studies such as (Agesti et al., 2021) , (Husadha
et al., 2021) and (Arigata et al., 2022) revealed(Agesti et al., 2021), (Husadha et al., 2021), and (Arigata
et al., 2022) revealed a positive and significant impact of price perception on customer purchase intention
and ultimately leads to customer purchase intention.

Customer Purchase Intention  

Social media marketing encourages customers to feedback to express their opinion on the service
rendered or offered or product, and share their opinion inon social networks on the internet (different
social media websitewebsites and appapps such as face-bookFacebook, Instagram, link din,
twitterTwitter, snap chat, and tikTik Tok,  which can further increase the knowledge and understanding of
product or service of customers who are reading the opinions or comments as a feedback old customers/
experienced person. Also, they are more likely to colleagues and inform friends about the products they
seensee. Therefore, social media marketing can indirectly improve customers purchasing decisions
(Nagoya et al., 2021).(Nagoya et al., 2021). Many researchesresearchers such as (PRAMONO, Sondakh,

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BERNARTO, JULIANA, & PURWANTO, 2021)(PRAMONO, Sondakh, BERNARTO, JULIANA, &
PURWANTO, 2021) states that social media marketing of a brand is  positively and significantly impact
onimpacts customer purchase intention. Making a positive Customer purchase intention is ultimately
the objective of all marketing done to influence customer’scustomers’ purchase intentions. Both
mediator brand trust and customer price perception model have a positive impact on influencing
customer purchase intentions, but some time due tosometimes social media marketing of the
brand is greatly impacted on brand trust, irrespective of the price perception model. Such as the
purchase intention of customers with high paying power is only affected by the brand trust. But
the intention of low -paying power, purchase intention is mostly impacted by price perceptions.
They are many factors on which customer’a customer’s purchase intention is dependent. Social
media marketing has a positive effect on brand image, which means that if the use of social media
increases, then the brand image will also increase. on purchasing decisions, which means that if brand
image increases, purchasing decisions will also increase. Brand image is able to mediate the relationship
between social media marketing and purchasing decisions, which means that if brand image increases, the
relationship between social media marketing and purchasing decisions will also increase.

Conclusion

Concluding all the above discussions, and formfrom the literature review, it is concluded that social
media marketing has a positive great impact on customer purchase intention, which ultimately leads to
customer purchase decisiondecisions. Brand trust and customer price perception modelmodels also have
positive and significant impactimpacts on customer purchase intentions and brand trust and customer
price perception can enhancedenhance the impact of social media marketing of a brand on the purchase
intention of customers byto a great extent.

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