Mediating Effect of Creative Information Advertising on Online Marketplace, Market Reach, and Influencer Marketing Toward Product Sales

Abstract

Purpose: This study aims to determine the effect of creative information advertising as a mediation between market expansion and influencer marketing on the number of sales in the online market. Theoretical framework: The design of creative information advertising is expected to be able to mediate the expansion of market reach and the use of influencer marketing techniques for sales of goods/products, where the expansion of market reach alone is not able to directly and significantly affect sales of goods/products, as well as influencer marketing techniques in the online market. With signaling theory, it can be understood that the wider the market reach, the more diverse the characters, cultures, and capabilities of customers. Design/methodology/approach: This is a quantitative research using purposive sampling conducted on 398 online marketers in Indonesia. Data is processed with SEM-Amos and SPSS. Findings: This research provides benefits by building a theoretical model to understand online marketing which raises new findings related to the Signal Theory Point of View, namely the expansion of market reaches whose effect becomes significant when using influencer marketing. Research, Practical & Social implications: The concept of creative information advertising is able to solve problems that occur between market expansion and insignificant/negative value sales. Originality/value: This research was conducted with the aim of bridging the negative influence between market reach on product sales by including creative information advertising as an intervening variable. Therefore, the concept of creative information advertising which is a novelty for this research is tested on online marketers of micro and small businesses that use 3rd party marketplaces in Indonesia.