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ABSTRACT Published Online: 30 June 2022
During the era of digital technology, the implementation of digital marketing is considered the right
innovation in understanding consumer behaviour and forming brand loyalty. This study aims to
analyse the effect of digital marketing implementation on brand loyalty moderated by buying interest
in the coffee shop business. The study was conducted in the Greater Jakarta area including 136 coffee
shops. The research sample amounted to 154 people determined by convenience sampling. The data
collection method used a closed questionnaire with a Likert scale of 1-5. Questionnaires were
distributed to respondents electronically via Google Forms. The research questionnaire has passed
the validity and reliability tests. Data analysis using the Structural Equation Modeling method
assisted by Partial Least Square (SEM PLS) software version 3.0. The results showed the effect of
digital marketing implementation on brand loyalty was moderate and significant, while the effect on
Keywords:
buying interest was weak and significant. While the influence of buying interest on brand loyalty is coffee shop; brand loyalty;
also weak. Another research finding is that the relationship between digital marketing buying interest; digital
implementation with purchase intention and brand loyalty is positive. marketing
INTRODUCTION
In conditions of increasingly fierce competition and the The application of digital media has changed the context of
increasingly popular use of digital marketing in today's interaction between marketers and consumers as well as with
business, building consumer buying interest and maintaining other consumers (Desai, 2019), and created a wide scale
brand loyalty is both a necessity and an opportunity (Rahman between mass communication methods and interpersonal
Khan & Aminul Islam, 2017). The development of digital communication (Geçti & Gümüş, 2013).
communication technology has not only changed consumer Digital marketing is the use of digital technology to
behavior, especially in seeking information (Yasmin et al., help manage marketing by increasing knowledge about
2015), but also has facilitated consumers with various customers (Deekshith & Kinslin, 2016); and improve
information in the form of reviews or comments of people on relationships, and encourage purchases (Bala & Verma,
the buying experience, all of which work wonders in the 2018). On digital marketing, marketers can interact and
minds of consumers and consumers. form buying interest communicate directly and allow reaching and interacting with
(Alharbi & Alhider, 2018). On a wider spectrum, the customers through extensive purchase tracing (Choedon &
development of digital technology has changed the marketing Lee, 2020). Digital marketing facilitates marketers to
management landscape through the application of digital promote and distribute offerings through portals so that real-
marketing (Hutter et al., 2013). time exchange of information can be transmitted anywhere
and anytime to customers and helps build brand sustainability
Corresponding Author: Nafiah Ariyani (Confos & Davis, 2016).
* Digital marketing not only sells products but also
Cite this Article: Nafiah Ariyani, Mira Septiani (2022). The
develops brand loyalty (Laksamana, 2018). When the brand
Effect of Digital Marketing Implementation on Brand
is captured by consumers in an exclusive, positive, and
Loyalty Was Moderated by Buying Interest: Study on Coffee
prominent way in their minds, the brand becomes
Shop Business. International Journal of Social Science and
irreplaceable and will win consumer loyalty (Kotler & Keller,
Education Research Studies, 2(6), 217-227
2016). Social media marketing and brand loyalty become
very crucial dimensions of consumer brand resonance and
Based on the operationalization of the research variables, the framework of thinking as well as the initial model of this
research is shown in Figure 1.
Figure 1. Initial Model of Causality Relationship Between Digital Marketing with Purchase Intention and Brand
Loyalty
Population and Sampling Structural Equation Model (SEM) analysis method which is
The population of this study were consumers of 136 the approach in this study, the minimum sample size in this
(one hundred and thirty-six) coffee shops in the Greater study) is 150 people, which is five times the number of
Jakarta area with a total sample of 154 people, which were questions analyzed (Sarstedt et al., 2020), so that the number
determined based on the convenience sampling method. By of research samples meets the requirements.
the rules of determining the minimum sample in the Data Collection Method
Respondents' assessment of digital marketing digital marketing performance is on the trendiness dimension,
performance at coffee shops visited in the last six months is while the lowest performance is on the customization
shown in Table 3. From Table 3 it is known that the best dimensions.
Figure 3. Initial Model of Causality Relationship between Digital Marketing with Purchase Intention and
Brand Loyalty with Loading Factor
After the F1 indicator is eliminated, the research model is retested and produces a new path diagram value along with the
loading factor as presented in Figure 4.
Figure 4. Second Model of Causality Relationship between Digital Marketing with Buying Intention and
Brand Loyalty with Loading Factor
Based on Figure 4, it is known that more than 70% R1, R2, R3, RE1 , RE2, T1, T2, TR1, TR2, and TR3 can
of the variance on 21 (two recovered one) indicators, be explained by digital marketing variables. Meanwhile,
namely C1, C2, C3, C4, Ex1, Ex2, Ex3, F2, QI1, QI2, QI3, the buying interest variable can explain the variance of the
The composite reliability value presented in Table To determine the validity of the research construct,
4 shows that the three latent variables have a composite a discriminant validity test was conducted. Discriminant
reliability value above 0.6. That is, the indicators that have Validity is useful for knowing the correlation between
been set have been able to measure each latent variable manifest variables and their constructs by looking at the
(construct) well or it can be said that the three cross loading value of each construct. A measurement
measurement models are reliable. The value of convergent model has good discriminant validity if the correlation
validity shows the correlation between indicators, where between the construct and its indicators is higher than the
the higher the correlation between the indicators that make correlation with indicators from other constructs. The
up a construct, the better the model. The AVE value cross loading value is shown in Table 5, which shows it is
shown in Table 4 shows that the three latent variables have higher than 0.5 so that it meets the discriminant validity
an AVE value above the minimum criteria, namely 0.5 so criteria.
that the convergent validity measure is good or it can be
said to have met the convergent validity criteria.
Table 5. Relationship Values Between Digital Marketing, Purchase Intention and Brand Loyalty
Variables Brand Loyality Purchase Intention Digital Marketing
Brand Loyalty 1 0,807 0,666
Purchase Intention 0,807 1 0,746
Digital Marketing 0,666 0,746 1
Figure 5. Bootstrapping Calculation Results Between Digital Marketing with Purchase Intention and Brand
Loyalty
From Table 6, it is known that all manifest values obtained through the bootstrapping process are
variables have values above 1.65 so they are significant. shown in Table 7.
While the results of the path coefficients and t-statistic
From Table 7, it is known that the effect of digital The causal relationship between digital marketing and
marketing on buying intentiont is 0.619, which means that brand loyalty is 0.269 which means that there is a positive
there is a positive influence of digital marketing on buying influence between digital marketing and brand loyalty. The t-
intentetion. With a t-statistic value of 11.870 and a P value statistic value is 11,927 with P Values of 0.000, the
of 0.000, the influence of digital marketing on buying relationship between digital marketing and brand loyalty is
interest is significant. significant. While the causal relationship between buying
From Table 8 it is known the R Square value assessing strengthen the results of previous research on the effect of
how much influence digital marketing (X1) and buying digital marketing on buying interest and brand loyalty. The
interest (X2) have on brand loyalty (Y) is 0.696 with an results of this study can be a reference for coffee shop
adjusted r-square value of 0.692. Therefore, it can be managers to strengthen the quality and role of digital
explained that all exogenous constructs (X1 and X2) marketing in increasing buying interest and brand loyalty, as
simultaneously affect Y by 0.692 or 69.2%. Because a source of competitive advantage.
Adjusted R Square is more than 33%, the effect of all Suggestions for further research should be able to use
exogenous constructs X1 and X2 on Y is strong (Ghozali & a larger sample size so that a more suitable model is produced.
Latan, 2015). In addition, it is necessary to re-examine the significance of
Meanwhile, the simultaneous influence of digital one of the website indicators, namely that buyers get what
marketing and brand loyalty on purchase intention is 0.383 they ordered through the website as a manifest variable of
with an Adjusted R Square value of 0.379. These results digital marketing. Further marketing can also add other
indicate that the influence of digital marketing and brand variables related to changes in consumer behaviour,
loyalty simultaneously affects buying interest by 37.9%, especially concerning technological advances and an in-depth
which is moderate effect. study of the selection of indicators is needed.
To find out whether or not there is a significant
relationship between variables can assess the magnitude of REREFENCES
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