Does KOL and UGC as a Moderating Variable Affect CPI in Indonesia FnB Industry?

Abstract

This research paper examines the impact of Key Opinion Leaders (KOLs) and User-Generated Content (UGC) as a moderating variable on consumer purchase interest (CPI) in the Indonesian food and beverage (F&B) industry. Through data collected from 110 respondents, the study employs the Pearson correlation test and Cronbach Alpha test to validate and ensure the reliability of the measurement items. The study reveals a significant positive influence of KOLs on CPI, with respondents showing considerable interest in purchasing products endorsed by influential KOLs. Additionally, the research underscores the pivotal role of UGC as a Pure Moderator, strengthening the impact of KOLs on consumer purchase interest. Consumers exhibited higher purchase interest when KOLs utilized UGC to convey messages or recommendations. Hypothesis testing using moderated regression analysis (MRA) and R-square tests confirms the acceptance of all research hypotheses. Hypothesis 1, asserting a positive impact of KOLs on Indonesian CPI in the FnB industry, finds support in the data. Similarly, Hypothesis 2, suggesting a positive influence of UGC on Indonesian CPI for FnB products, is also substantiated by the findings. Lastly, Hypothesis 3, proposing UGC as a moderator between KOLs and CPI in the Indonesian F&B industry, is validated. These findings offer valuable insights for businesses in Indonesia's F&B industry to strategically incorporate KOLs and leverage UGC to optimize their marketing strategies and gain a competitive edge. While the study covers a significant portion of Indonesia's provinces, future research could enhance its geographical representation, providing a further understanding of consumer purchase interest in the F&B market.