The Influence of Social Media Marketing Activities on Brand Equity and Customer Response of Shopee Indonesia on Instagram
Sarah Khairunnisa Zukhrufiah Mulyawan, AMA Suyanto

a, b) Telkom University
Jl. Telekomunikasi No. 1, Terusan Buahbatu - Bojongsoang, Sukapura, Kec. Dayeuhkolot, Kabupaten Bandung, Jawa Barat 40257
*saraahmulyawan[at]student.telkomuniversity.ac.id

Abstract

Shopee is one of the largest e-commerce in Indonesia and has the most users compared to its competitors. Shopee uses Instagram to stay connected with its users. Shopee manages Instagram to form its brand equity. The brand equity can generate consumer responses to Shopee. Although Shopee is the ruler of the e-commerce market in Indonesia, several things show that Shopee loses compared to its competitor. This study aims to determine the influence of Shopee^s social media marketing activities on Instagram on Shopee^s brand equity, the influence of Shopee^s brand equity on customer response, and the influence of Shopee^s social media marketing on customer response. This research uses the quantitative method. A non-probability sampling technique is used. This study has 485 respondents with two criteria- followers of Shopee Indonesia^s Instagram and have made several purchases through Shopee. This study uses Structural Equation Modeling (SEM) by using SmartPLS. The results showed that trendiness was the most important component of Shopee^s social media marketing activities on Instagram. Shopee^s social media marketing activities on Instagram had significant effects on Brand Association, Brand Awareness, Perceived Quality, E-WOM, and Commitment. Perceived Quality had significant effects on E-WOM and Commitment. In addition, Brand Association had significant effects on Commitment, but not on E-WOM. Brand Awareness had no significant effects on E-WOM and Commitment.

Keywords: Social Media Marketing Activities, Brand Equity, Customer Response, Shopee, E-Commerce.

Topic: Digital Marketing