The Effect of Social Media Marketing and Consumer Engagement as Mediating Variable towards Consumer Purchase Intentions at Renda Indonesia: Case Study of Social Media Instagram @Renda Indonesia

Abstract

The emergence and development of the internet brought a new way of communication to society. One of them is social media. Instagram is one of the most popular social media for the people of Indonesia. Around 86.6% of internet users use Instagram. Renda Indonesia is a business that promotes its product on Instagram. However, Renda Indonesia is outperformed by its competitors on Instagram. Comparatively speaking, this business is growing much slower than its competitors in terms of traffic and followers. As a result, the author is interested in identifying the issue the business faced and finding a solution so that it can catch up to and compete with its competitors. The purpose of this study was to examine the effect of Social Media Marketing and Engagement on the Consumer Purchase Intention of Renda Indonesia, as well as to measure the opinion of potential customers of Renda Indonesia on the variables of Social Media, Consumer Engagement, and Purchase Intention of Indonesian Consumers. This study uses an online questionnaire distribution method using Google Forms to 400 respondents who know and follow the Instagram Renda Indonesia social media. Researchers used Structural Equation Modeling (SEM), using SmartPLS software, to test the research model. The technique used is non-probability sampling, where the researcher uses purposive sampling. The results of the descriptive analysis show that Social Media Marketing, Consumer Engagement, and Purchase Intentions are in a good category. The results of the hypothesis show that there is a relationship between Social Media Marketing and Consumer Engagement towards Purchase Intention. This research is expected to provide benefits and insights to other researchers and companies regarding Social Media and Consumer Engagement with Purchase Intentions. The author advises Renda Indonesia to communicate with Instagram consumers by replying to consumer comments and using Instagram Stories that can display everyday moments in business. This will make consumers feel valued, engaged, and special.