The Role of Brand Awareness as a Mediating Variable on the Effect of Instagram Advertisement and Word of Mouth on Purchase Decision (Case Study in Erigo)

Abstract

This study aimed to examine the effect of Instagram Advertisement and Word of Mouth on Purchase Decision, involving Brand Awareness as a mediating variable. Data were analyzed using Structural Equation Modeling with the help of AMOS 26 software. Data were collected from 250 Indonesian respondents who were chosen using a purposive sampling technique. The primary finding in this study was that Word of Mouth and the use of Instagram Advertisement as a social media marketing platform had an effect on Purchase Decision. The relationship between Instagram Advertisement and Word of Mouth also increased Brand Awareness. This research implied that Purchase Decision improved due to the increased use of Instagram Advertisement and Word of Mouth, strengthening Indonesian people's Purchase Decision for Erigo products. In addition, Brand Awareness had no effect on Purchase Decision, indicating that perceptions of international products did not affect consumer trust in local brands.