Social Commerce for Optimal Marketing Performance Improvement: A Customer Engagement Approach

Abstract

Purpose – The study explores the social commerce capabilities and examining the relationship between social commerce, customer engagement, and marketing performance. Design/methodology/approach – This study focuses on the cause-and-effect relationship between two variables in food and beverage production in Solo, Semarang, Kudus, and Jepara. It uses primary and secondary data from 265 entrepreneurs, using structural equation modeling and AMOS data processing software. Findings – The study's findings demonstrated that social commerce does not have direct effect on Marketing performance, which contradicts other studies conducted by other researcher. Research limitations/implications – The study reveals that social media-based consumer engagement mediates between social commerce capacity and marketing performance, with significant positive correlation values. Practical implications – The study suggests that SMEs in the food and beverage industry can use social media to develop effective marketing strategies. It recommends managing Instagram accounts and Facebook pages, generating sales, and updating channels. Originality/value – This study provides a new perspective on how to manage social commerce capabilities in order to improve marketing performance in SMEs.