How Brand Ambassador and Social Media Marketing of Luxury Brand Affect Purchase Intention of Generation Z in Jakarta

Abstract

The growth of fashion luxury brands has been remarkable in recent years. Indonesia has emerged as a prominent market for luxury goods, witnessing an 84% surge in sales, making it the leading online luxury goods sales market in Asia. This research focuses on Generation Z consumers in Jakarta due to their increasing economic influence and potential to account for a substantial portion of luxury goods sales by 2025. As social media becomes a ubiquitous platform for communication and marketing in Indonesia, businesses increasingly utilize Social Media Marketing to engage with consumers. Luxury brands have also embraced social media to transform their communication strategies, shifting the balance of power from marketers to consumers. The role of a brand ambassador goes beyond mere endorsement, as they actively promote the brand on their platforms, fostering trust and imitation. However, previous research on brand ambassadors' impact on purchase intention yields contradictory results. Therefore, this study aims to investigate the specific relationship between luxury brand ambassadors and purchase intention. The research objectives are to examine the positive effects of luxury brand marketing campaigns, specifically Brand Ambassador and SMM, on the purchase intention of Generation Z consumers in Jakarta. The findings of this research will benefit the marketing departments of luxury brands preparing strategies for the Indonesian market. Furthermore, it will contribute valuable insights to future studies on luxury brand purchase intentions, with potential applications for marketing strategists targeting the Indonesian luxury market, particularly Jakarta. Ultimately, this study aims to shed light on the impact of brand ambassadors and social media marketing on luxury brand purchase intentions among Generation Z consumers in Jakarta. Based on the statistical data analysis, the research concludes that both brand ambassador and social media marketing exert significant and positive influences on luxury brand purchase intention.