Social Media and Word of Mouth Effects on Buying Decision Process on Kopi Janji Jiwa in East Jakarta

Abstract

The research aimed to analyze consumer behavior in particular, consumer buying decision from Kopi Janji Jiwa. The research focused on the buying decision process from consumers, including the influence of Instagram promotion and word of mouth on buying decisions, which is mediated by purchase intention and brand awareness from Kopi Janji Jiwa in East Jakarta. The research applied a quantitative method. The survey was conducted through questionnaires on Kopi Janji Jiwa customers with several criteria in AEON Mall Jakarta Garden City and Transera Waterpark at East Jakarta. There were several criteria used in selecting the sample. First, consumers had purchased Kopi Janji Jiwa in the last six months. Second, they had seen advertisements/promotions of Kopi Janji Jiwa on Instagram. Last, their purchasing decisions were influenced by word of mouth from their friends, family, and others. It obtained 103 respondents. All the responses were processed using path analysis with a smart Partial Least Square (PLS) application. The results reveal that Instagram promotion (advertising), word of mouth, purchase intention, brand awareness, and buying decision influence each other. However, there is no influence between word of mouth on purchase intention. In addition, purchase intention and brand awareness are proven to mediate and strengthen the relationship between Instagram promotion and word of mouth with buying decision. Last, brand awareness is also proven to mediate and strengthen the relationship between word of mouth and purchase intention.