The Influence of Social Media, Brand Trust, Brand Affect and Value Consciousness on Brand Loyalty: Online Transportation Cases in Indonesia

Abstract

Currently, the use of social media in Indonesia as part of social interaction activities in the community and at the same time as a medium for companies to promote their products is increasing. Likewise, digital technology has penetrated public transportation activities in the community, with the emergence of Gojek and Grab as the two leading online transportation brands in Indonesia. The purpose of this study is to find out whether digital marketing activities can affect the buying behavior of a brand. Specifically, this study aims to determine the effect of Social Media Marketing on Brand Trust, Brand Affect and Value Consciousness, and ultimately on Brand Loyalty. The research objects are the two major online transportation companies, namely Gojek and Grab. Using survey research methods and purposive random sampling technique, 240 respondents in Yogyakarta city, Indonesia, were given a questionnaire related to their perceptions of the five constructs above. By using structural equation modeling, measurement tests and structural tests were carried out. The results show that Social Media Marketing affects the Brand Affect, Brand Trust and Value Consciousness positively and significantly. While the Brand Affect affects the Brand Trust and Brand Loyalty positively and significantly. However, the Value Consciousness does not significantly affect the Brand Loyalty. The results of the study prove that digital marketing activities through social media can have a significant effect on the formation of consumer trust and finally on brand loyalty. Some of the implications of the results of this study are discussed further in the discussion.