The Effect of Brand Awareness, Price Perception and Electronic Word of Mouth (E-WOM) Toward Purchase Intention on Instagram

Abstract

The most popular social media promotion tool is Instagram. The main factor is that social networking tools enable users to exchange photographs and videos. Additionally, Instagram, which is open to all users and is free, is utilized as a promotional tool, particularly by business people who are trying to establish their own companies. The study aims to determine the effect of the relationship variables that affect purchase intention on Instagram, a social media platform whose popularity is growing at the present time. Primary data were collected through the use of questionnaires sent to a total of 120 respondents located in a variety of cities throughout Indonesia. The data were analyzed using the application of structural positive and equation model (SEM) partial least square (smartPLS 3.0), to determine all of the relationships that exist between the variables of price perception, electronic word of mouth (E-WOM), and brand awareness on purchase intention in the model. The structural model indicates that the model on the buying interest variable can be said to be strong because it has a value that is greater than 0.67. The model of the influence of the independent latent variables (price perception, electronic word of mouth, and brand awareness) on purchase intention has an R-Square value of 0.743, which can be interpreted to mean that the variability of price perception, E-WOM, and brand awareness is 74.3%.
 Keywords: price perception, Electronic Word of Mouth (E-WOM), brand awareness, purchase intention