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The dynamic stimulus of social Social media

marketing of
media marketing on purchase airline
products
intention of Indonesian airline
products and services
Massoud Moslehpour Received 16 July 2019
Revised 15 November 2019
Department of Business Administration, Asia University, Taichung, Taiwan and 12 February 2020
Department of Management California State University, San Bernardino, 4 April 2020
Accepted 25 April 2020
California, USA
Alaleh Dadvari
Department of Business Administration, National Central University,
Taoyuan, Taiwan
Wahyudi Nugroho
Department of Business Administration, Asia University, Taichung, Taiwan, and
Ben-Roy Do
Department of Business Administration, National Central University,
Taoyuan, Taiwan
Abstract
Purpose – The present paper aims to explore the antecedents and consequences of social media marketing
(SMM) subsets on consumers’ purchase intentions of Indonesian airline products and services. We propose a
research framework to empirically test the influence and interaction of factors, including entertainment (ENT),
and interaction (INT) through the effect of trust (TR), and perceived value (PV) as mediators on purchase
intention (PI).
Design/methodology/approach – The study employs an online survey to collect data. We collect 301
qualified questionnaires and employ structural equation modeling (SEM) to test the proposed model. The
research findings enrich our understanding of the mediating role of TR and PV. Trust and perceived value
significantly mediate the relationship between SMM factors and PI during initial stages of decision-making
toward purchasing airline products and services.
Findings – Research findings provide support for most hypotheses regarding the significant influence of the
variables proposed in the model. Furthermore, trust mediates the relationship between two of the SMM factors
(INT and ENT) and purchase intention. Notably, perceived value mediates the link between entertainment and
purchase intention.
Originality/value – This study successfully offers a model to examine the influence of social media
marketing on Indonesian consumers’ purchasing intentions of airline products and services. Social
media marketing components progressively impact the fundamentals of purchase intention, creating a new
marketing communication style. These changes generate new opportunities and challenges for companies.
This study provides a better understanding of how social media factors influence Indonesian consumers’ initial
decision to purchase airline products and services.
Keywords Social media marketing, Trust, Perceived value, purchase intention
Paper type Research paper

The authors are most grateful for unrelenting helpful comments and suggestions of the editor and the
three referees. The first author would like to acknowledge the continued support from Asia University,
Prof. Wing-Keung Wong, California State University San Bernardino and Dean Lawrence C. Rose. The
Asia Pacific Journal of Marketing
second author would like to express gratitude to the National Central University, School of Management, and Logistics
and Business Administration Department. Finally, thanks to Mr. Faraj Rafiei for English editing of the © Emerald Publishing Limited
1355-5855
manuscript. DOI 10.1108/APJML-07-2019-0442
APJML 1. Introduction
Social media influence in our personal and professional lives is increasing. Companies and
businesses are engaging with their customers through social media platforms daily. The
revolution of social media applications has changed the way people and businesses are
interconnected. In this respect, airline companies have shown great interest in using social
networks such as Facebook, Instagram, and YouTube (Koch and Tritscher, 2017).
Given that nowadays, the airline industry must survive in a highly competitive
environment using social media technologies to maintain competitive advantages in the
marketplace is necessary (Oliverwyman, 2017). The growing importance of such applications
has remarkably influenced the way organizations to attract customers. The fast rate of
technological transformation has also changed consumer online behavior. Since consumers
spend a considerable amount of time on social media and participate in online discussions or
share experiences with other consumers, organizations are more active in cyberspace to
conduct their advertising and marketing programs (Evans, 2010; Ismail, 2017; Phau and
Meng Poon, 2000). The social media marketing approach provides new opportunities and
challenges for companies to improve their customers’ purchase intention (Ismail, 2017). Hinz
et al. (2011) stated that when making a purchase decision, consumers highly depend on their
social network comments and reviews. Several studies have described the pivotal role of
social networks as ideal platforms for interaction that fits perfectly with marketing in the
cyber landscape (Kamboj, 2018; Kim and Ko, 2010; L
opez et al., 2016).
Social media empowers companies to engage with the customers easily. Compared to
traditional marketing, social media marketing approach is a cost-efficient way of
communication that is broadly offered by the majority of companies and accepted by
consumers in different businesses (Kim and Ko, 2012). In the airline industry, where the
competition is high, interaction with consumers while providing a pleasant personal
experience for them can improve the marketing of products and services (Ahmad et al., 2016).
According to the internet World Stat report, Indonesia, with over 143 million users, has the
third-largest number of Internet consumers and the fourth number of Facebook users in the
world (Miniwatts Marketing Group, 2019). Therefore, the growing interest in social media
and digital interactivity necessitates further exploration of social media marketing to
promote products and services.
This research aims to evaluate the effect of using social media marketing (hereinafter
referred to as SMM) on purchasing decision making among Indonesians. This study proposes
the role of SMM as an independent variable. Furthermore, we investigate the mediating effect
of customer trust and perceived value on the influence of SMM on purchasing decision
making. The foundations of this study are the theory of reasoned action (hereinafter referred
to as TRA) and value-based adoption model (hereinafter referred to as VAM). A review of the
literature reveals that both defined theories are applicable in diverse fields of study (Armitage
and Conner, 2001; Kim et al., 2007). Thus, contributions of this study to scholars and
practitioners are multifaceted. First, the framework represents the influence of SMM factors
on consumers’ trust and perceived value, which, in return, affect purchase intention. Then,
the applicability of VAM and TRA theories is extended to the current context. Last, research
findings enable marketers to predict the most influential factors that assist SMM subsets that
impact consumer purchasing intent. The results of this study ultimately assist airline
marketing decision-makers in preparing new strategic marketing approaches to motivate
consumers’ purchase intention. The conclusion section includes a detailed discussion of the
implications of this study.
In this paper, social media marketing (SMM) refers to a habitual and a general
conversation among people about a topic of mutual interest (Shareef et al., 2019) in social
media. Dimensions of SMM include (1) entertainment (hereinafter referred to as ENT) as a
form of communication that reaches audiences and gives some pleasure to them
(Bates and Ferri, 2010; Kim and Ko, 2012), (2) interaction (hereinafter referred to as INT) as Social media
users ability of actively exchanging online information (Jiang et al., 2010; Kim and Ko, 2010; marketing of
Kirk et al., 2015; Yang and Shen, 2018). In our hypothesized model, we propose two mediating
variables. One of the mediating variables is the perceived value (hereinafter referred to as PV)
airline
describing the worth that a product or service has in the consumer’s mind (Chen and Chen, products
2010; Zeithaml, 1988). Another mediating variable is trust (hereinafter referred to as TR),
representing consumers’ level of tendency relying on a specific organization’s capability to
execute a promised utility (Chaudhuri and Holbrook, 2001; Hong and Cha, 2013). This study
investigates the intermediary influence of these two variables, TR and PV, on purchase
intention (hereinafter referred to as PI). PI is an element of the consumer’s cognitive behavior
representing the probability of purchasing a specific product or service (Dodds et al., 1991;
Duffet, 2017).

2. Literature review and hypotheses development

To structure the research framework and develop the hypotheses of this study, we borrow the
concepts from different theories in the literature. This study is based on the theory of
reasoned action (TRA) (Fishbein and Ajzen, 1975), and value-based adoption model (VAM)
(Kim et al., 2007). Based on TRA, the antecedents of consumer’s intention to purchase are
perceived attitude, belief, and subjective norms (e.g. the influence that individuals can have
on each other’s opinion, attitude, and behavior in different ways) (Fishbein and Ajzen, 1975).
TRA is a broad theory, and it is not limited to a specific belief that may only apply to a
particular situation. It mainly aims to explain the relationship between an individual’s
perceived value (PV) or belief and behavioral intention. Moreover, it is commonly adopted by
many studies (Armitage and Conner, 2001; Gleim et al., 2013) in the marketing field to
examine consumer’s online shopping behavior. Social media can shape consumers’ attitudes
toward a certain service or product (Alalwan et al., 2017; Wang et al., 2012). In other words,
marketers can facilitate communication and interaction through digital platforms with
consumers. Ample studies clarified that marketers can influence consumers’ attitudes toward
their products or services through social media (Alalwan et al., 2017; Baum et al., 2019).
Specifically, a recent work by Bigne et al. (2018) underlined the impact of social media in the
airline industry. Social media marketing factors (such as entertainment and interaction) can
affect attitudinal factors (such as trust and perceived value), which in turn influence
consumers’ purchase intention. In this respect, a survey conducted by Seo and Park (2018)
addressed the significant positive effect of social media marketing activities on consumer
perception toward airline product brands in South Korea that eventually influence
consumers’ behavior. PV plays an essential role in the consumers’ decision making and
assessment of a product before purchasing it. VAM suggests that consumers’ overall
estimation of the perceived value (PV) of a product or a service is affected by other factors
such as enjoyment, interaction, and social norms and they contribute to the prediction of
online purchasing behavior (Kim et al., 2007). From the consumers’ perspective, PV is an
essential factor to influence users’ behavior, while effective factors on PV include benefits
such as enjoyment (Chen and Chen, 2010; Chi et al., 2011; Saqib, 2019). Therefore, we propose
that ENT and INT as SMM subsets influence consumers’ value perception toward a product
or service. These mentioned principles are compatible as the base theories for the
present study.

2.1 Social media and social media marketing factors

Social media is a set of Internet-based applications that allows creation and exchange of user-
generated content, enabling individuals to inform each other about the existing products or
services in a specific market (Kaplan and Haenlein, 2010; Kusumasondjaja, 2018; Prasad et al.,
2017). Social media platforms have revamped interaction and collaboration among people.
APJML Having access to social media anytime and anywhere provides support and benefit for
different activities among users in a large variety of approaches such as marketing and
advertising (Alalwan et al., 2017; Hajli, 2014). Accordingly, as individuals become more
engaged with major social media platforms such as Instagram, Facebook, and YouTube,
companies show growing interest in employing social media to create strategies to engage
consumers with their products (Ismail, 2017). In other words, businesses prefer SMM because
of their uniqueness and cost-efficiency. Extant literature argues that in order to achieve the
ultimate goal of SMM activities it is necessary to align marketing process, content, and
objective with consumer’s inclinations in using social media that includes interaction with
friends or relatives, seeking new information, and following celebrities as entertainment
(Gallup, 2014; Zhu and Chen, 2015).
Social media marketing (SMM) is a form of online marketing that applies social
networking platforms as a tool to fulfill communication goals (Alves et al., 2016; Liao and Hsu,
2019) to produce and share content that helps brand disclosure and consumer expansion
(Chan and Guillet, 2011; Cheung and Rosenberger, 2020). According to the 2019 Social Media
Industry Report, a substantial 93% of all marketers point out that social media interaction
(INT) contributed to more visibility for their businesses. Also, 87% of marketers report that
INT increased traffic (Ennis-O’Connor, 2019). Previous related studies have pointed out the
components of SMM activities in different contexts. Kim and Ko (2012) identified SMM
features into five categories, such as entertainment, interaction, trendiness, customization,
and word of mouth. In line with that, Seo and Park (2018) used four components of SMM
activities to develop a model and analyze the effect of SMM on brand equity and consumer
behavior in the airline industry. Their findings indicate that utilitarian motives influence
consumers’ choice of products and services.
Individuals who apply social media for hedonistic purposes are searching for
entertainment (Ashraf et al., 2019; Godey et al., 2016; Ko et al., 2016; Manthiou et al., 2013;
Saji et al., 2013; Yu and Yuan, 2019). The cyberspace provides the chance for them to follow
particular interests. Entertainment is a significant component of SMM that enhances
participating behavior. It also promotes consumers’ continuous intention to use the Internet
in search of a product or service.
INT generates useful information about consumer purchasing behavior. More specifically,
social media helps companies build better communication with their customers and promote
their products better (Kaplan and Haenlein, 2011). Godey et al. (2016) declared that SMM
significantly influences consumers’ preferences. SMM activities also influence consumer
brand loyalty, brand consciousness, as well as value consciousness (Ismail, 2017).
Social media is an environment for sharing opinions and discussion. Interaction through
social media, therefore, offers insights to consumers who are looking for a particular product
or service. Several researchers maintain that interactions can change the dynamic of
communication and encourage word of mouth recommendations (Kaplan and Haenlein, 2010;
Kim and Ko, 2012).
Kim and Ko (2012) studied the impact of SMM on consumers’ purchasing intentions
toward luxury fashion brands. According to their findings, among other factors, ENT and
INT are two of the foremost critical determinants of SMM factors. Likewise, Gautam and
Sharma (2017) used a similar framework to test the role of the customer relationship as a
mediating variable on the relationship between SMM and purchase intention. Their results
identified ENT and INT as essential items measuring SMM factors. ENT is a set of
communications, which reach the consumer and gives some portion of pleasure to them
(Bates and Ferri, 2010). ENT significantly enhances the value perception among the
consumers (Gallarza and Saura, 2006; Song et al., 2015). Interaction (INT) is a user’s control
over the information flow online (Jiang et al., 2010; Kim and Ko, 2010; Kirk et al., 2015; Yang
and Shen, 2018). An intensive INT on social media between companies and customers can
motivate consumer’s PI to buy specific services or products (Gallarza and Saura, 2006; Hutter Social media
et al., 2013; Jiang et al., 2010; Yen, 2014; Young Kim and Kim, 2004). In the same way, the online marketing of
INT process influences consumer’s trust (Chang and Dong, 2016; Jakic et al., 2017), as well as
consumer’s PV (Jalilvand et al., 2017; Wu, 2017; See-To and Ho, 2014).
airline
Despite the above arguments on SMM, lack of empirical evidence concerning the link products
between dimensions of SMM factors and consumers’ purchase intention (PI) exists. SMM has
a significant impact on consumers’ trust (TR) that consequently affects consumers’ PI
(Gautam and Sharma, 2017; Jakic et al., 2017). As previously discussed, SMM factors play a
significant role in influencing consumers’ trust (TR) (Jakic et al., 2017; Jalilvand et al., 2017).
Additionally, TR has a vital and influential mediating role in consumer purchasing decisions
(Prasad et al., 2017). Chang and Dong (2016) stated that if the interaction between consumers
and companies intensely occurred and they feel entertained by that, consumer’s trust will
grow as they obtain needed information about the services or products. Therefore, it appears
that consumers use their emotions when communicating and discussing certain products.
Thus, we propose H1 and H3:
H1. ENT has a significant positive effect on TR.
H2. ENT has a significant positive effect on PV.
H3. INT has a significant positive effect on TR.
Also, past studies indicate that SMM factors, including ENT and INT have a strong influence
on PI (Basheer and Ibrahim, 2010; Clark and Melancon, 2013; Fan and Miao, 2012; Gautam
and Sharma, 2017; Hutter et al., 2013; Jiang et al., 2010; Kim and Ko, 2010, 2012; Young Kim
and Kim, 2004; Yen, 2014). Engaging in frequent communication with others is an indicator
that the consumer intends to purchase a product or service (Kim and Ko, 2010). In line with
that, Chang and Dong (2016) also asserted that when companies or organizations have
intensive interaction (INT) with their consumers on social networking sites, the customers
spend more time to engage their friends with the products and services of the company.
Thereby, airlines need to provide a communication media that enables customers to convey
and share their opinions of common interest.
SMM factors are significant antecedents of consumers’ PV (Gallarza and Saura, 2006;
Song et al., 2015; Yi et al., 2014). Furthermore, PV has a significant influence on PI (Abdolvand
and Norouzi, 2012; Charlton et al., 2012; Zhang et al., 2017). Having a regular interaction
through social media and the feeling of being entertained generate more customer
engagement, which often ends up with increasing customer PV. Therefore, this paper
proposes H2 and H4:
H4. INT has a significant positive effect on PV.

2.2 Trust
In online marketing, the concept of TR is a critical driving force that directly influences customer
PI (Liu and Tang, 2018). Precisely defining TR is difficult because it is complex and highly
subjective (Gefen et al., 2003). In a general sense, TR is the consumer’s willingness to believe in
the seller’s actions and promises based on the consumer’s expectation (Mayer et al., 1995). TR is
typically built through personal contact and face-to-face communication. This concept is also
true in business settings and particularly in collectivist cultures. Collectivism is a cultural theory
based on the idea that the good of a group takes priority over the welfare of the individual. A
more interpersonal relationship among consumers of a particular company can motivate them to
offer recommendations influencing their purchasing behavior (Fan et al., 2018).
Marketing practitioners are aware of the significance of TR and particularly its influence
on consumer’s decisions. Scholars show continuous interest in identifying the determinants
APJML that impact TR in cyberspace (Choi and Lee, 2017; See-To and Ho, 2014; Kim and Peterson,
2017). Hubert et al. (2018) explained that TR influences consumers’ willingness to commence
interacting with others in an online environment.
Young Kim and Kim (2004) specified TR as the belief that others will act in responsible
behavior in an interchange relationship. According to Kim and Ko (2010), TR is a level of the
tendency to rely on a particular organization’s capability to execute a promised utility.
While in the e-marketplace, uncertainty always exists, trust can be a vital element to
mitigate the feelings of ambiguity (Yao-Hua Tan, 2000). Thus, TR is considered a significant
component to strengthen the relationship between customers and organizations built
through a continuing relationship. Indeed, social interactions and frequent communications
are trust (TR) boosters (Kaur and Khanam Quareshi, 2015). Past related studies mostly relied
on the theory of reasoned action (TRA) ( Fishbein and Ajzen, 1975) to explain increased
purchase intention (PI) through an elevated perceived trust (Aziz et al., 2019; Hajli et al., 2017;
Pappas, 2016; Weisberg et al., 2011). However, in the SMM context, uncertainty regarding
how this theory motivates intention exists. Based on TRA, personal belief or individual
perception influences behavioral intention. Our understanding of TR relies on the proposed
approach by Fishbein and Ajzen (1975).
Trust is a vital component of the relationship between a person and society. Trust has an
influential role in affecting consumers’ purchasing intention (Hong and Cha, 2013; Kaur and
Khanam Quareshi, 2015; Kim and Ko, 2010; Li et al., 2007; Lin and Lu, 2010). TR is the
customers’ reliance that a specific organization or company will not act in a way that harms
them (Hong and Cha, 2013). TR is an assurance that the purchaser plans to purchase a
particular service or product, believing that the company will not conduct an activity that can
hurt them (Kaur and Khanam Quareshi, 2015).
One reason that a customer may decide not to buy a product or service is the lack of trust
in the selling partner’s business practices. In an SMM campaign, companies have to build the
consumers’ trust to increase PI (Li et al., 2007). Thus, we propose:
H5. TR has a significant positive effect on the PI.

2.3 Perceived value

Zeithaml (1988) described PV as the consumer’s overall assessment of the utility of a product
or service based on perceptions of the received value and the assumed cost. In particular, it is
a tradeoff between perceived advantages and perceived expenses (Chen and Chen, 2010; Chi
et al., 2011; Saqib, 2019). Thus, PV is a result of a customer’s perceived benefits. PV is an
underlying construct to understand consumer’s behavior and maintain a competitive
advantage, and it is an essential item when predicting consumer’s PI (Eom and Lu, 2019; Yi
et al., 2014).
Customers tend to select the products or services that increase their value perception. In
other words, the higher the PV of a product or service, the greater the possibility that the
customer will intend to purchase the product (Chen and Chen, 2010; Kamtarin, 2012; Yi et al.,
2014; Moslehpour et al., 2017). Functional, emotional, social, and epistemic values influence
consumers’ behavior. Each of these values, depending on the diverse contexts, makes
different contributions (Choe and Kim, 2018; Sheth et al., 1991). Customer’s perception of
value (PV) is the link between antecedents and outcome variables such as increased brand
strength (Wiedmann et al., 2018), customer loyalty (Jiang et al., 2016), and customer
satisfaction (Allameh et al., 2015; Gan and Wang, 2017). PV is a primary determinant of
consumer intention to purchase a product (An et al., 2019; Jeng and Lo, 2019; Moslehpour et al.,
2019; Wu, 2014). Initiated by the consumer’s evaluation and preference, PV is a core concept
in both traditional and digital marketing. Creating PV is a prerequisite for successful
marketing. Previous studies have empirically shown the impact of PV on consumer behavior
in a variety of settings such as traditional shopping (Kesari and Atulkar, 2016), e-shopping Social media
(Carlson et al., 2015; Chiu et al., 2014), tourism shopping (Choi et al., 2018), and smartphone marketing of
shopping (Liu et al., 2015). However, our review of the existing relevant studies shows that
they rarely discuss the association between SMM subsets and PV.
airline
Values may be interpreted in different forms, such as performance or quality value, products
emotional value, social value, or experiential value (Clawson and Vinson, 1978). From a
marketing viewpoint, organizations should use customers’ experiential values to realize
consumers’ intentions and preferences to modify their products or services and consequently
enhance their values. In this respect, social media platforms ease the interaction between
consumers and sellers to create a favorable PV. According to VAM, customers
comprehensively evaluate the perceived quality of a product or service and extensively
assess the perceived sacrifices required to obtain the product or service before establishing
their perceived value (Monroe and Krishnan, 1985). VAM predicts consumers’ willingness
and value perception to adopt Internet usage (Kim et al., 2007). We define PV as the worth that
a product or service has in the mind of the consumer. Therefore, this paper proposes H6:
H6. Perceived Value (PV) has a significant positive effect on the PI.

2.4 Purchase intention

PI indicates the probability that consumers will purchase certain products in the future (Kim
and Ko, 2010; Liu et al., 2019; Moslehpour et al., 2018; Wu et al., 2011). The customer’s decision
to purchase a product or service highly depends on the PV (Zeithaml, 1988). To restate,
consumers intend to gather relevant information about a product or service relying on shared
personal experiences of others (e.g., friends) or from other sources (e.g., social media) and
evaluate all the information leading to purchasing behavior. Although PI, as a subjective
preference, is introduced as a determinant of consumer’s behavioral intentions (Chandon et al.,
2005; Whitlark et al., 1993), we found no consensus on what SMM factors directly motivate PI.
Moreover, Zhang et al. (2017) recently raised a question about the dependence of consumer’s
online purchasing activities on their use of social media platforms. Thus in this study, relying
on researches such as Hong and Cha (2013), we use mediating variable TR and PV to study the
effects of SMM factors on PI. We will discuss this concept in-depth in the next section.

2.5 The mediating role of trust and perceived value

Previous studies have examined the role of TR and PV as mediating variables between SMM
and PI. Chi et al. (2011) revealed that a higher degree of value perception leads to increased
purchasing intention. A research conducted by Guihong and Yu (2014), provided evidence to
support PV mediates the relationship between SMM and PI. Kim and Ko (2010) mentioned
that in the fashion industry, TR mediates the relationship between SMM and PI. Similarly,
Gautam and Sharma (2017) confirmed that TR could influence the relationship between SMM
subset (ENT and INT) and PI. Following the above arguments, this paper proposes the next
hypotheses:
H7. TR mediates the relationship between social media elements (ENT, INT) and PI.
H8. PV mediates the relationship between social media elements (ENT, INT) and PI.

3. Method
3.1 Scale operationalization
We adopted the measurement scales from previous related researches to assess the
constructs of interest and slightly modified the original items to fit the current research
environment. The research instrument contained demographic and construct item sections.
APJML The antecedents in the research framework, including ENT, and INT, were adopted from Kim
and Ko (2010); Kim and Ko (2012), and Godey et al. (2016). ENT, and INT, each comprised of
three items. The mediating variable, PV, was assessed using an adapted version of the scale
suggested by Chen and Chen (2010). TR, the mediator, was measured by the scale drawn from
Hong and Cha (2013), and each consisted of three items. A four-item scale developed by
Duffett (2017) was employed to access outcome purchase intention (PI). We derived all
measurement scales from English sources. Given that the field survey was Indonesia, where
the official language is Bahasa, we used a back-translation procedure to ensure the quality
and accuracy of the translation. We designed the questionnaire according to related literature
and experts’ opinions. After the draft was completed and translated, a pretest was
administered to a small sample group to single out ambiguous items. Small sample
questionnaire respondents verified that they could understand the questions in the formal
survey. Through this process, therefore, the initial content validity of the questionnaire was
ensured.

3.2 Data collection

The research data were collected through an online survey process using Google forms
between April and June 2017. According to Wright (2005), Internet-based surveys provide
scholars with access to a unique population as target respondents, while the identity and
privacy of the participants are protected.
As the primary focus of the current paper is related to the impact of SMM, the use of an
online questionnaire was consistent with our research objectives. For this study, we
employed snowball sampling and convince sampling techniques.
Questionnaires were distributed to all Indonesian consumers who often use airlines to
travel around, particularly individuals who live, study, or work abroad. To select qualified
respondents, we purposely placed the screening questions at the beginning of the survey (e.g.,
Have you previously used the Internet to learn more about products? Have you previously
used the Internet to learn more about airline companies’ products and services?). Based on
Hair et al. (2013) sample population recommendations for SEM, we collected 301 qualified
questionnaires.

4. Data analysis results

This section reports the results of the descriptive statistics, exploratory factor analysis (EFA),
confirmatory factor analysis (CFA), reliability and validity of measurements. This study used
structural equation modeling (SEM) to test the hypotheses for the proposed model. SEM is
appropriate when testing a series of complex relationships (Hair et al., 2011, 2013). In this
study, we use both SPSS and AMOS 23 to analyze the data. AMOS is more suitable for large
samples when the primary objective is theory testing. It enables the researcher to represent
the model and hypothesized relationship among research constructs (Hair et al., 2011).

4.1 Demographic results

Table 1 presents the respondents’ profile, including gender, age, and education. As shown in
Table 1, most of the respondents were female (56.48%), between 20 and 24 years old (63.1%),
with bachelor’s degrees as their highest educational level (53.8%).
Among the respondents, about 95.3% acknowledged their awareness of social media
platforms, while about 82.1% mentioned their previous experience in using social media to
know about the airlines’ products and services. Respondents’ familiarity with the concept of
SMM is the first step toward the validation of data. The next sections will detail the
instrument’s validity and reliability results.
Profile Classifications Frequency (%)
Social media
marketing of
Gender Male 131 43.52 airline
Female 170 56.48
Total 301 100 products
Age Under 20 years old 77 25.6
20–24 years old 190 63.1
25–30 years old 25 8.3
Above 30 years old 9 3
Total 301 100

Education Junior High School 8 2.7

Senior High School 82 27.2
Bachelor 162 53.8
Master 45 15.0
PhD 4 1.3 Table 1.
Total 301 100 Demographic
characteristics

4.2 Measurement model and scale accuracy testing

Before factor analysis, the Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy was
utilized in our study to determine the degree of inter-correlations among the variables and the
validity of factor analysis. Following Tabachnick and Fidell (2001), the KMO value between
0.5 and 1.0 indicates that the sample is adequate to perform factor analysis, while 0.60 and
higher value of KMO test is essential for good factor analysis. The total KMO value for this
instrument is 0.93 (p < 0.005). To verify multicollinearity effect, we tested variance inflation
factor (VIF) for the independent variables (Table 2), and all VIF values were lower than the
cutoff threshold of 3, indicating that multicollinearity was not likely to affect our results (Hair
et al., 2011; Neter et al., 1990). Table 2 also presents the descriptive statistics, reliability, and
validity measures of the instrument.
We demonstrate the instrument’s reliability through vigorous calculations of Cronbach’s
alpha coefficient (α), composite reliability (CR), and average variance extracted (AVE). CR is a
measure of the overall reliability of a collection of heterogeneous but similar latent variables
(Fornell and Larcker, 1981). It is a measure of reliability and internal consistency of the
instrument. AVE is a measure of the amount of variance that is captured by a construct
concerning the amount of variance due to measurement error (Fornell and Larcker, 1981).
Cronbach alpha and CR values are above the standard threshold of 0.70, and similarly, AVE
values exceed the minimum required level of 0.50 (Hair et al., 2013). EFA and CFA loadings for
each item were greater than 0.50. Hence, all the necessary indices are satisfactorily above the
least required values (Table 3).
We use convergent and discriminant validity measures to validate the instrument.
Convergent validity explains the extent to which two measures of the same construct are
related. Convergent validity is evaluated by testing factor loadings of research items. All
research item loadings were above the commonly suggested threshold of 0.70 (Table 2). Thus,
the test achieved convergent validity. In this study, we also followed Fornell and Larcker’s
(1981) technique to consider discriminant validity by comparing the square root of AVE value
with the correlation between constructs. Therefore, with AVE > 0.5, MSV < AVE, CR > AVE,
√AVE > Max r (Maximum interrelated correlation) all minimum required validation
conditions are satisfied. In Table 3, √AVEis shown in bold-face diagonal. All essential
validity and reliability measures (Hair et al., 2011) such as CR, AVE, Maximum Shared
Variance (MSV), and Maximum Inter-construct Correlation (Max r) are illustrated in Table 3.
APJML Variables Items EFA loadings CFA loadings Mean SD Cronbach’s Alpha (α) VIF

ENT ENT1 0.76 0.76 3.63 0.71 0.76 1.85

ENT2 0.75 0.81
ENT3 0.70 0.76
INT INT1 0.81 0.82 3.59 0.84 0.87 2.16
INT2 0.84 0.83
INT3 0.76 0.81
TR TR1 0.64 0.82 3.98 0.68 0.81 1.81
TR2 0.58 0.81
TR3 0.84 0.68
PV PV1 0.80 0.81 3.78 0.70 0.85 1.66
PV2 0.75 0.86
PV3 0.78 0.75
PI PI1 0.66 0.82 3.74 0.67 0.87 2.19
PI2 0.83 0.73
PI3 0.70 0.84
PI4 0.67 0.80
Instrument Total KMO 0.933
Note(s): CR > 0.7; VIF < 3; Research items are as follows: ENT-The information available through social
media about airlines is ENT1: interesting. ENT2: is exciting. ENT3: easy to help me pass the time. INT-The
opportunity available through social media about airlines makes it INT1: easy to convey my opinion. INT2:
easy to exchange opinions with others INT3: possible to give and receive information from other users. TR-
Airlines’ advertisements on social media TR1: provide trustworthy information. TR2: reliable information.
TR3: will keep their promises and commitments. PV-After I acquire information about products/services of
Airlines available through social media, PV1: I know the value of their products/services better. PV2: I know
Table 2. their products/services are worth for my personal style. PV3: I know I can save a lot of time and energy. PI-After
Factor loadings, seeing airlines’ advertisements/information about their products/services available through social media, PI1: I
instrument validity, am more determined to buy their products/services. PI2: I will consider buying their products/services in the
and instrument near future. PI3: I plan to purchase its products and services. PI4: It has a positive influence on my purchase
reliability measures intention

MSV AVE CR Max r ENT INT TR PV PI

ENT 0.37 0.55 0.78 0.61 0.74

INT 0.37 0.69 0.87 0.61 0.61 0.83
Table 3.
Test of composite TR 0.50 0.60 0.82 0.71 0.51 0.53 0.77
reliability, convergent PV 0.46 0.65 0.85 0.68 0.50 0.45 0.56 0.81
validity, and PI 0.50 0.63 0.87 0.71 0.49 0.49 0.71 0.68 0.80
discriminant validity Note(s): AVE > 0.50, AVE > MSV, √AVE > Max r, √AVE is bold-face diagonal

We conducted CFA to confirm the factors of the measurement model, and the results were
satisfactory. The results of the model fit for CFA and the proposed model are satisfactory and
all model fit indices exceed the minimum criteria recommended by previous studies: χ 2/
df 5 2.22, p 5 0.000, GFI 5 0.94, CFI 5 0.97, TLI 5 0.96, RMSEA 5 0.06 (Table 4).

4.3 Structural model and hypotheses testing

Hypotheses were analyzed after the overall model fit was approved. All hypotheses were
supported except hypothesis 3 (see Figure 1).
There are positively significant relationships between ENT toward TR (β 5 0.55,
p < 0.001) and PV (β 5 0.59, p < 0.001). INT has a positive significant influence on TR
(β 5 0.23, p < 0.05). However, there is no significant relationship between INT toward PV
(β 5 0.10, NS). Two hypotheses dealing with the relationship between TR, and PI (β 5 0.56, Social media
p < 0.001), as well as PV and PI (β 5 0.45, p < 0.001) were statistically significant. Table 5 marketing of
summarizes the results of direct relationship and path coefficients.
airline
products
4.4 Testing the mediating effect of trust and perceived value
We followed the four-step procedure recommended by Baron and Kenny’s (1986) to analyze
the influence of the two mediators (TR and PV) in the relationship between the antecedents
(ENT and INT) and the outcome variable (PI). Table 6 shows that TR and PV fully mediated
the relationship between ENT and PI, lending support to H7a and H8a. The relationship
between INT and PI shows that TR is a full mediator, while PV had no mediating effect on the
proposed relationship. Therefore, statistical results provided support for H7b, while H8b is
not supported.

Indices Criteria Model CFA

χ /df
2
<3 2.00 2.22
GFI >0.8 0.91 0.94
CFI >0.9 0.96 0.97 Table 4.
TLI >0.9 0.95 0.96 Model fit indices of the
RMSEA ≤0.08 0.06 0.06 measurement model

ENT
Entertainment H1 = 0.55***

H2 = 0.59*** TR
Trust
H7 (a,b) H5 = 0.56***

PI
Purchase Intention
H6 = 0.45***
H3 = 0.23*
PV
Perceived Value
H4 = 0.10 (NS)
H8 (a,b)

INT
Interaction
Figure 1.
Structural
equation model
Note(s): *P < 0.05; ***P < 0.001; NS = Not Significant

Hypotheses Path β t-value p-value Result

H1 ENT → TR 0.55 5.28 *** Supported

H2 ENT → PV 0.59 5.38 *** Supported
H3 INT → TR 0.23 2.52 * Supported
H4 INT → PV 0.10 1.06 NS Not supported Table 5.
H5 TR → PI 0.56 8.68 *** Supported Results of hypotheses
H6 PV → PI 0.45 8.10 *** Supported testing and statistical
Note(s): ***p < 0.001; *p < 0.05; NS 5 Not Significant significance
APJML 5. Discussion, conclusion, and research implications
The current research studies the impact of SMM factors (ENT and INT) on Indonesian
consumers PI of airline services and products through the mediation of TR and PV in the
airline industry for Indonesian customers. TR is identified as a significant and influential
variable toward PI and mediates the relationship between SMM factors (ENT and INT) and
PI. The results also indicate that PV fully mediates the relationship between ENT and PI.
However, it has no significant influence on the relationship between INT and PI. Next, we
discuss our conclusions based on the reported results for all hypotheses.
We postulate that ENT has a significant influence on TR. In this regard, our research
findings are consistent with existing literature. For example, Gautam and Sharma (2017)
expressed that ENT influences consumer’s expectations and TR in luxury fashion brands.
This research indicates that ENT has a significant role in increasing consumers’ TR (β 5 0.55,
p < 0.001). So, by sharing entertaining content on social media, the consumers’ TR in airline
companies are positively influenced because consumers would feel engaged with the airline
companies. Correspondingly, Hoffman and Novak (1996) explained that providing
entertaining content on their computer-based media, let organizations obtain a more
significant benefit to influence consumers’ perception of the company. Thus, the
entertainment part of social media marketing is a significant contributor to build trust for
Indonesian consumers.
Next, we hypothesize that ENT has a significant influence on PV. The structural model of
the study supports H2. PV is significantly influenced by ENT (β 5 0.59, p < 0.001). This
relationship is also the strongest influence exhibited by ENT. A review of the literature shows
that findings are consistent with previous studies claiming the influence of ENT on PV for
other products and services (Gallarza and Saura, 2006; Song et al., 2015; Yi et al., 2014). It
means that in the airline industry in Indonesia, the more entertained the consumers, the
higher the degree of PV. In other words, highly entertained consumers potentially give higher
scores on PV. It also creates the possibility that PV might mediate the relationship between
ENT and PI. Thus, the entertainment and engagement part of social media marketing is an
important contributor to create perceived value for Indonesian consumers.
We also put forward that INT has a significant influence on TR. Our hypothesis was based
on Chang and Dong (2016) that states INT has a significant positive impact on consumers’
TR. Moreover, regular interactions through social media cause consumers to get useful
purchasing information. A recent study by Jakic et al. (2017) proposed that interaction (INT) is
a crucial antecedent of trust. Our findings are consistent with previous studies indicating that
interaction (INT) has a significant effect on increasing consumer trust (TR) toward airline
companies (β 5 0.23, p < 0.05). Therefore, Indonesian customers’ interaction (INT) with airline
representatives influence their trust (TR) of the company. Thus, we advise airline companies
to consider the role of interaction (INT) to attract Indonesian consumers’ trust (TR).
Indonesian airline customers perceive social media interactions such as exchanging
information, receiving information, or conveying their opinion as a means to build trust.
This finding points out the fact that social media marketers in Indonesia should pay more
attention to the role of interaction (INT) in social media marketing.

Hypotheses Path Total Direct Indirect Mediation

H7a ENT → TR → PI 0.48*** NS 0.36** Supported (Full Mediation)

H7b INT → TR → PI 0.22** NS 0.24** Supported (Full Mediation)
Table 6. H8a ENT → PV → PI 0.48*** NS 0.17*** Supported (Full Mediation)
Results of mediation H8b INT → PV → PI NS NS NS Not supported (No Mediation)
analysis Note(s): *p < 0.05, **p < 0.01, ***p < 0.001, NS 5 Not Significant
Next, we posit that INT has a significant positive influence on PV. Some previous studies Social media
indicate the positive effect of INT on PI (Charlton et al., 2012; Zhang et al., 2017) in other marketing of
industries. However, our statistical analysis results show that INT has no significant
influences on PV. The possibility of giving and receiving information from others, the ease of
airline
exchanging opinions with others, and the website availability for conveying opinions have no products
significant influence on PV. Control over the exchange of information through social media in
the airline industry in Indonesia has no significant influence on consumers’ PV toward airline
products and services. Indonesian customers pay no attention to the availability of the
interactions provided by the airlines. For most Indonesians, the pricing strategy and real
experiences are essential to create or change their perceived value of the product or services
offered. Perhaps INT about a service or product in Indonesia is more trusted when it happens
through an independent third-party website. When the information received from
commercial sources or unknown sources, Indonesian prefer to “coba dulu, baru ngomong!”
which means “try it first before you speak!”
Another conclusion about the relationship between INT and TR, as well as INT and PV, is
that perhaps Indonesian airline social media marketers do not pay enough attention to the
importance of interaction. We, therefore, recommend that social media marketers pay more
attention to how they use interaction (INT). More observation and studies are needed to
determine whether the results of the influence of INT on TR and PV are cultural or technical.
The findings of the next two hypotheses point out to the fact that, concerning Indonesian
consumers, perhaps airline social media marketers and social media platforms neglect the
interaction aspect of social media.
This study proposes that TR significantly influences the PI. As explained in the literature
review, consumers’ TR profoundly influences PI (Hong and Cha, 2013; Kaur and Kanam
Quareshi, 2015; Kim and Ko, 2010; Li et al., 2007; Lin and Lu, 2010). Based on the results of our
analysis, the effect of trust toward PI appears to be substantial and significant (β 5 0.56,
p < 0.001). Put differently, a high degree of consumers’ trust can stimulate consumer’s
intention to purchase the airlines’ products. Li et al. (2007) also confirmed that for an
organization to improve its social media’s competence, it needs to build customer’s trust first.
Our results also conclude that PV has a significant influence on PI (β 5 0.45, p < 0.001),
which is consistent with previous studies identifying PV as an essential predictor of PI (Chi
et al., 2011; Kamtarin, 2012; Kuo et al., 2009; Yi et al., 2014). To restate, in the airline industry,
consumer’s positive opinions toward the value of airlines’ products and services, promote the
consumer’s PI. In this respect, social media platforms as unique communication tools play a
pivotal role in airline companies’ marketing.
Next, we hypothesize that TR mediates the relationship between the SMM factors (ENT
and INT) and outcome variable PI. The result shows that trust significantly and fully
mediates the relationship between ENT and PI. Table 6 shows that the direct influence of
ENT on PI is significant only through the presence of TR, which underlines the importance of
consumer trust for airline companies.
Finally, we assert that that PV mediates the relationship between independent variables,
including (ENT, INT) and outcome variable PI. With the presence of the PV, the influence of
ENT on PI becomes significant. We, therefore, conclude that entertaining information, as well
as good reviews about airline companies’ services or products noted by consumers from other
consumers, makes them generate positive purchasing intentions.

5.1 Theoretical and managerial implications

The research findings enrich our understanding of the significance of TR and PV as
mediators on the relationship between SMM factors and PI. However, further evidence in the
field study is needed. The present study develops and empirically examines a conceptual
framework, thus providing theoretical insight into SMM subsets, affecting consumers TR
APJML and PV, which, in turn, affect PI. To meet the research objective, we established hypotheses
and used proper procedures to obtain the results. The results of the tested theoretical
framework based on the previous studies (Chang and Dong, 2016; Chen and Chen, 2010;
Gautam and Sharma, 2017; Kim and Ko, 2010, 2012) indicate that SMM plays an influential
role in the airline industry to motivate Indonesian consumer’s intention to buy specific
airline’s products and services, while consumers’ TR and PV toward airline’s services work
as mediators.
In greater detail, TR and PV mediate the relationship between ENT and the dependent
variable PI, and PV mediates the relationship between ENT and PI. Therefore, this study
provides empirical support for the applicability of TRA and VAM theories to SMM as a
differentiated marketing medium in the context of Indonesia’s airline industries where
Internet infrastructure and use of social media are still increasingly growing. Social media
facilitates the interaction between the organization and consumers. In this study, TR refers to
the consumer’s credence in the seller’s trustworthiness, reliability of the information,
promises, and commitments. If the information available through social media about the
airlines is engaging, exciting, and an easy way to pass the time (ENT), then consumers are
willing to spend more time on the airline’s social media. The more effective the ENT aspect of
the airline’s social media, the higher the consumers’ trust (TR) in the commitment of the
airline company. Likewise, the more effective the ENT aspect of the airline’s social media, the
higher the consumer’s perception of the value (PV) of the products and services offered. PV is
the result of customers’ perceived benefits of the airline, after acquiring information about the
products and services of the airline through social media. Research findings show that ENT
as one of the SMM subsets can provide favorable benefits for consumers, and significantly
influence PV to show a specific behavior toward airline product or service. Thus, the more
interesting and exciting the information through the airline’s social media, the more aware the
consumers about the value and worth of the products and services offered. The higher
the consumer’s perception of the value and worth of airline’s products and services, the higher
the possibility of consumers purchasing those products and services.
The opportunity to convey and exchange opinions with others (INT) through the
company’s social media increases the consumers’ trust in the company’s products and
services. However, it is important to note that from the Indonesian consumer’s viewpoint, INT
does not provide enough desirable benefits to impact PV. Indonesian consumers prefer to
make their mind about the value of the product and services offered, rather than relying on
others’ opinions. Thus, despite the power and popularity of social media in Indonesia, the
effectiveness of SMM activities are limited for Indonesian consumers using airline products
or services. The findings of this study pave the way for further studies to explore other
applicable constructs of SMM with the Indonesian population.
In terms of managerial implications, this study reports that TR and PV are valuable
parameters that create a path to link the consumers’ relationship and their actual buying to
social media. Not to mention that social media marketers of the airline industry are highly
recommended to reconsider the effectiveness of INT through social media to enhance the
possibility of buying behavior among consumers. Decision-makers may put different
marketing strategies to affect potential customer’s value perception. Although using SMM to
promote consumer’s PI is rational, but airline companies should consider that this would be
effective only if they enrich consumers’ TR and PV. This study verifies the previous findings
that enhancing consumer’s TR and PV increases PI regarding the purchase of airline’s
products or services. By increasing the level of the entertainment of social media, companies
can involve the consumers for a longer period. Once they have achieved the goal of keeping
the consumers online, then it is time to gain their trust and increase their perception of the
company’s services and products. Companies must consider both TR and PV concepts into
their long-term marketing strategies to increase PI. Perceived value is an evaluation of the
value, worth, and benefits of a product or service. All activities promoted by the company that Social media
relates to reducing the cost, or boosting the benefits of the products or services, can improve marketing of
consumers’ PI. Marketers must pay attention to the influence of INT on PV through the
mediation of trust and adopt a particular marketing strategy to promote their products and
airline
services accordingly. Meanwhile, decision-makers in the airline industry should pay more products
attention to maintaining the quality of the products or services to satisfy consumers and gain
their TR. TR and PV are fundamental mediators of differentiation and competitive advantage
that contribute to furthering PI.
Moreover, creating a quality and effective interaction on an airline’s online platform for
consumers through social media eventually leverages trust and consumer’s perceived value
that will convince them to purchase the airline’s services and products. Therefore, the
researchers suggest that airline companies must invest more in increasing consumers’ trust
and promoting the value of the services and products to urge consumers to have a favorable
purchase intention (PI). INT and ENT, as a marketing medium, could effectively increase
consumer TR and PV of airline products and services. This underlines the novel contribution
of ENT in the airline industry. On the other hand, findings give a managerial hint to the
marketing strategist of the company for further exploring how INT can act as a vital driving
force to promote consumer TR and PV toward the products or services.
The fact that the customer feels it is easy to convey opinion and exchange ideas through
social media (INT-The opportunity available through social media about airlines makes it
INT1: easy to convey my opinion. INT2: easy to exchange opinions with others. INT3:
possible to give and receive information from other users), does not influence one’s perceived
value (PV-After I acquire information about products/services of Airlines available through
social media. PV1: I know the value of their products/services better. PV2: I know their
products/services are worth for my personal style. PV3: I know I can save a lot of time and
energy. On airline advertisements for products and services. Indonesian airline customers are
eager to post convey and exchange opinions with others, but that does not influence their
perceived value toward the airlines’ products or services and reliability of advertisements on
social media.
Likewise, for Indonesian social media users, the freedom to give and receive information
through social media (INT) does not have a significant influence on the perception of the
consumers about the price and value of the products and services. In this study, a new
phenomenon emerges, reiterating the influence of epistemic value on attitudinal and
behavioral intention (Choe and Kim, 2018; Pura, 2005; Sheth et al., 1991). INT does not
influence PV, indicating that for Indonesians, the convenience of sharing opinions on social
media does not affect their perceived value (Chung and Koo, 2015). Airlines targeting
Indonesian consumers should provide platforms to encourage and increase consumers’ INT
and perhaps spend money on the INT aspect of the SMM (Pura, 2005).

5.2 Limitations and future research

Although current research expands the findings of related fields, however, some of the
limitations provide a new direction for future studies. We researched in Indonesia and
assumed that social media users are from major cities and of a younger age. Consequently, the
representativeness of the sample may contain some bias necessary for this research. It would
be interesting to select samples from other nations and compare the results for cultural
comparison. We used three factors related to social media. Future studies may explore other
factors. We recommend, for example, variables such as perceived risk, brand credibility, and
customer satisfaction as further mediating variables for future research. This study relies on
a quantitative approach to investigate the antecedents of SMM toward consumer purchasing
intention. Future studies may apply a combination of both quantitative and qualitative
methods to include more constructs to develop existing models.
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Further reading
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Corresponding author
Alaleh Dadvari can be contacted at: ala.dadvari@gmail.com; dadvari.alaleh@g.ncu.edu.tw

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