THE IMPACT OF ELECTRONIC WORD OF MOUTH (EWOM), EASE OF USE, TRUST, AND BRAND IMAGES TO PURCHASE INTENTION ON TOKOPEDIA: EVIDENCE FROM INDONESIA Sri Rahayu 1, Budi Utomo 2, Nanik Kustiningsih 3 1,2,3 Sekolah Tinggi Ilmu
Ekonomi Mahardhika, Indonesia
1. INTRODUCTION The E-Commerce business in Indonesia have rapidly to grow, not only to facilitate the consumer needs, but also to connect the Small Medium Enterprises (SMEs) with new potential customers on a larger scale. As the development perspective over the past decade, the E-Commerce platforms can play role as a new non state actor or said as the ‘locomotive’ for Indonesia’s digital economic growth. The term of success of E-Commerce sector has led to the popularization of many other digital platforms such as digital services, financial technology services, smart logistics, and digital business management. In this connectivity indulge the succeeded in strengthening and moving to new business perspective from traditional to modern businesses such as food stalls (Warung) through a partnership joint. As the pandemic wide abroad, the nation makes the situation that failed to improve in early 2021 for the robust of E-Commerce penetration in this year. The statistic report from Digital Market Outlook Report, stating that E-Commerce users in Indonesia are expected to grow by 15% this year far beyond from the previous year with the total of 138 million users in 2020 or 158 million users in 2021. Meanwhile, the industry revenue is expected to grow 26% to $38 million beyond from $30 million in 2020. (https://jetcommerce.co.id/) In the E-Commerce sector, many amenities are offered for both sellers and buyers. However, in addition to the convenience and benefits offered, there are also drawbacks or risks that can create a sense of alertness among consumers seeking to transact and execute. Things to be concerned about such as fraud, mismatched goods, warranties, etc. With this resolution, this should be a concern of the e-commerce business to reduce or even eliminate consumer concerns so that they still be able to compete in running the e-commerce business. Concluding the risks, fraud and mismatch between information perception gives of goods or services received by consumers and those provided by sellers will certainly lead to low levels ethic connecting to customer confidence and poor presentation as perception of the e-commerce site. It should have been expected, the E-Commerce has become an easy and safe place for consumers to easily access all the products that sellers are offering to them. However, the acceptance of reality is the opposite. There are many cases to the seller with scam action as the poor quality of the product but the site being told as high quality. Trust is one of the factors influencing the consumers approach in purchasing decision through the online media. Consumer confidence has a major impact on the sustainability of the enterprises. If the enterprise's products are no longer trusted by consumers, it becomes difficult to develop the product in the market. On the other hand, if the company's products are trusted by the consumers, the company's products will continue to grow in the market. The enterprise must always win this trust, the more consumers believe, the company will continue to maintain a good relationship with its customers. Trust is one of the foundations of any business, and a business transaction will take place between two or more parties if each party trusts the other. This trust cannot simply be recognized by the other parties nor business partners, it must be built from the ground up and can be demonstrated. Hendri and Budiono (2021) in Yulianton (2017), argues that word of mouth is the most powerful means of communicating products or services to consumers in the business world. Word of mouth is an action taken by consumers to provide information to other consumers about brands, products, and services on a non-commercial basis. Consumers who have unique experiences with a particular company's products, services and brands tend to place those product services and brands on the conversation agenda. They consciously or unconsciously express it verbally (verbal speech) to others on various occasions. Along with the development of the Internet, word of mouth has now evolved into electronic word of mouth. Next up is the usability factor. Ease of use is an important factor in the development of e-commerce. Product research and product information are two important features of generating positive reviews from online retailers. Customers who have no trouble searching for products and information can increase store satisfaction. Based on the introduction and problem statement, this research comes to analyse the effect of Electronic Word of Mouth (EWOM), Ease of Use, Trust, and Brand Images to Purchase Intention with the object in Tokopedia as the E-Commerce business sector. The purposes of this research are (1) To test the positive effect of trust on Brand Image. (2) To test the Positive Effect of Electronic Word of Mouth (EWOM) on Brand Image. (3) To test the positive impact of Ease of Use on Brand Image. (5) Testing the positive effect of Trust on Purchase Intention. (5) To test the Positive Effect of the Electronic Word of Mouth (EWOM) on Purchase Intention. (6) To test the positive effect of Ease of Use on Purchase Intention. (7) To test the positive effect of Brand Image on Purchase Intention. (8) Testing the positive effect of Trust on Purchase intention through Brand Image. (9) Testing the positive impact of the Electronic Word of Mouth (EWOM) on Purchase Intention through Brand Image. (10) Testing the positive impact of Ease of Use on Purchase Intention through Brand Image. The utility of this research is as a form of scientific and scientific contribution related to marketing related to factors influencing increased Purchase Decisions or Purchase Intention. 2. LITERATURE REVIEW The rivalry business in E-Commerce sector is getting thougher, each of the company must followed by the development and changing situation to get the point of new potentional market. At the same time. the company need to increase the public trust on consument, the ease of use through the transaction, positive information that spreading to social media as the Electronic Word of Mouth (E-WOM), and also as the Brand Image. As all of the aspects getting improved, the company could expect to increase the Purchase Intention followed by the consument and company could increas the selling. Based on the past research Sulthana and Vasantha (2019) the Electronic Word of Mouth could be made by an anonym through all of social media such Facebook, twitter, etc. could influence by the Purchase Intention. At the same time, E-WOM could influencing people to buy products or services from various references shared on social media. Strengthen by the past research from Rahmiati and Yuannita (2019) E-WOM as the portrayal in Tokopedia as E-Commerce platform have the positive perception. The past research also said that EWOM have the positive impact on purchase decision. Juliana et al. (2020) mentioned the result test of hypothesis in Ease of Use has significant and positive effect through Purchase Intention. Also, the result test of hypothesis in Trust has significant and positive effect through Purchase Intention. Juliana et al. (2020) menyebutkan bahwa hasil pengujian hipotesis Ease of Use berpengaruh positif dan signifikan terhadap Purchase Intention. Dan Hasil pengujian hipotesis Trust berpengaruh signifikan dan positif terhadap Purchase Intention. Dijelaskan juga oleh Rahmiati and Yuannita (2019) yang menyebutkan dalam penelitiannya, variabel kepercayaan, persepsi keg naan, dan persepsi kemudahan penggunaan memiliki pengaruh signifikan terhadap niat beli. According to Uonita and Budiono (2020) in their research stated: 1) EWOM has significant and positive through Purchase Intention; 2) EWOM has significant and positive through Brand Image; 3) Brand Image has significant and positive through Purchase Intention; 4) Brand Image has significant and positive mediating EWOM through Purchase Intention. According to Hendri and Budiono (2021) showed the perception of Brand Image, Brand Trust, and EWOM as positive predictior for Purchase Intention. Chrysnaputra (2020) showed the Brand Image and Trust influence through Purchase Intention, Brand Image influence through Trust, Trust influence through Purchase Intention, and Brand Image influence through Purchase Intention mediating Trust. This means that the stronger the Brand Image and Trust, the stronger the Purchase Intention, the stronger the Brand Image will strengthen the Trust, the stronger the Brand Image will strengthen the Trust which has an impact on the stronger the Purchase Intention. Damayanti (2019) mentioned the Perceived Ease of Use as the variable have a positive and significant effect through Brand Image, Brand Image through Purchase Intention, Perceived Ease of Use through Purchase Intention, Perceived Ease of Use through Purchae Intention mediating Brand Image. Also, according to Juliana et al. (2020) Brand Image have a significant effect through Purchae Intention. 3. METHODS This research using path analysis, according to Sugiyono (2014) that path analysis is the development of regression statistics, so that regression analysis can be said to be a special form of path analysis. Path analysis is used to describe and test the relationship model between variables in the form of cause and effect. According to Kuncoro (2003) population as the object material related to some people, objectical identifying, transaction, or interesting phenomenon to analyse or become to the research object. In this research, population refer to the consument purchase in Tokopedia. The sampling technique used is non-probability sampling. The sampling of method used is purposive sampling. The sampling selection was based on certain criteria, namely being visitors and having shopped at Tokopedia at least once in the last 3 months and being 17 years old and over because they are considered to have understood the questions in the questionnaire. In path analysis before the researcher conducts the analysis of a study, the researcher first makes a path diagram that is used to present the problem in the form of an image and determines the structural equation that states the relationship between the variables on the path diagram. According to Noor (2014) Path diagrams can be used to calculate the direct and indirect effects of the independent variable on a dependent variable. These effects are reflected in the so-called path coefficients, where mathematically path analysis follows a structural mode. Figure 1
4. RESULTS AND DISCUSSION The purpose of this study was to determine how much influence (1) the positive influence of Trust on Brand Image, (2) the positive influence of Electronic Word of Mouth (E-WOM) on Brand Image, (3) the positive influence of Ease of Use on Brand Image, (4) positive effect of Trust on Purchase Intention, (5) positive effect of Electronic Word of Mouth (e-WOM) on Purchase Intention, (6) positive influence of Ease of Use on Purchase Intention. (7) the positive influence of Brand Image on Purchase Intention. (8) positive influence of Trust on Purchase Intention through Brand Image, (9) positive influence of Electronic Word of Mouth (e-WOM) on Purchase Intention through Brand Image, (10) positive influence of Ease of Use on Purchase Intention through Brand Image. The subjects in this study were respondents who had used or transacted the Tokopedia as E-Commerce company, totalling 120 respondents. 4.1. VALIDITY TEST The purpose of validity test is to measurement of matching the item on quissionare or the scale that we want to use. To make sure if the item is valid or not, we need to compare between rcount with rtable, where the significancy that we use is 0,05 with n = 120. The decision based on value of rcount (Corrected Item-Total Correlation) > rtable on 0,151, and df = 120-2 = 118; Sig. = 0,05. With this description, we can state that the item is valid or not valid if the signifancy is 0,05. Based on the results, we can sure that the item in those variables state valid, with rhitung value > rtabel value is 0,151 4.2. RELIABILITY TEST The purpose of reliability test on quesionnare items that prove valid. The variables could state reliable if there is consistency between in the answers. The analysis tool uses the split half method by correlating the total odd versus even scores, then the reliability is calculated using the "Alpha’s Cronbach" formula. The calculations were carried out with the help of a computer-assisted SPSS program. Table 1
Based on the table, each variable is said to be reliable or reliable if the answers to questions are always consistent. The results of the reliability coefficient is rα = 0,939, eWOM is rα = 0,937, Ease of Use is rα = 0,902, Brand Image is rα = 0,828, Purchase Intention is rα = 0,880 that has value of “Alpha Cronbach” bigger than 0,600. That means all of the variables are reliable and fulfilling the criteria. 4.3. HYPOTHESIS TEST (REGRESSION ANALYSIS MODEL 1) 4.3.1. INDIVIDUAL PARAMETER SIGNIFIICANCY TEST (T-TEST) Based on the SPSS individual parameter test, the results of the individual TRUST test show the unstandardized coefficients beta value of 0.230 with a significant showing at <0.05, then H1 is accepted. Thus, it can be concluded that the TRUST variable has a direct and significant positive effect on BRAND IMAGE. The results of the individual eWOM test show the unstandardized coefficients beta value of 0.277 with a significant showing at <0.05, then H2 is accepted. Thus, it can be concluded that the eWOM variable has a direct and significant positive effect on BRAND IMAGE. The results of the individual test of Ease of Use show the unstandardized coefficients beta value of 0.202 with a significant showing at <0.05, then H3 is accepted. Thus, it can be concluded that the Ease-of-Use variable has a direct and significant positive effect on BRAND IMAGE. 4.3.2. COEFFICIENT DETERMINATION (R2) The results of the SPSS model summary analysis show that the magnitude of R Square is 0.412 or 41.2%. The Brand Image variable can be explained by Trust, Electronic Word of Mouth, Ease of Use by 41.2% with the remaining 58.8% explained by other variables outside the model. 4.4. HYPOTHESIS TEST (REGRESSION ANALYSIS MODEL 2) 4.4.1. INDIVIDUAL PARAMETER SIGNIFIICANCY TEST (T-TEST) Based on the SPSS individual parameter test, the results of the individual TRUST test show the unstandardized coefficients beta value of -0.255 with a significant value at <0.05, then H4 is accepted. Thus, it can be concluded that the TRUST variable has a direct and significant positive effect on PURCHASE INTENTION. The results of the eWOM individual test show the unstandardized coefficients beta value of 0.316 with a significant showing at <0.05, then H5 is accepted. Thus, it can be concluded that the E-WOM variable has a direct and significant positive effect on PURCHASE INTENTION. The results of the EASE-OF-USE individual test show the unstandardized coefficients beta value of 0.219 with a significant showing at <0.05, then H6 is accepted. Thus, it can be concluded that the EASE-OF-USE variable has a direct and significant positive effect on PURCHASE INTENTION. The results of the individual BRAND IMAGE test show the unstandardized coefficients beta value of 0.214 with a significant showing at <0.05, then H7 is accepted. Thus, it can be concluded that the BRAND IMAGE variable has a direct and significant positive effect on PURCHASE INTENTION. 4.4.2. COEFFICIENT DETERMINATION (R2) Second model of Coefficient Determination (R2) aims to identify the amount of variable Trust (X1), Electronic Word of Mouth (X2) dengan Ease of Use (X3) overall defining the variable of Brand Image (Z). The result of Coefficient analysis in this research can be seen in the table below. Figure 2
The results of the SPSS model summary analysis show that the magnitude of R Square is 0.527 or 52.7%. The Brand Image variable can be explained by Trust, Electronic Word of Mouth, Ease of Use by 52.7% with the remaining 47.3% explained by other variables outside the model. 4.5. PATH ANALYSIS Testing this research using path analysis (path analysis). Path analysis is an extension of multiple linear regression analysis. Regression analysis was performed twice. The first regression analysis was to determine the strength of the relationship of the independent variable to the mediating variable (intervening). The second regression analysis was to determine the strength of the relationship of the independent variable to the dependent variable. 4.5.1. PATH ANALYSIS INTERPRETING Based on the t-test shown in Figure 1 the unstandardized coefficients beta value of the Trust variable is 0.230. The unstandardized coefficients beta value of 0.230 is the path value or P1 path. The unstandardized coefficients beta of the E-WOM variable is 0.277. The unstandardized coefficients beta value of 0.277 is the path value or P2 path. The unstandardized coefficients beta of the Ease-of-Use variable is 0.202. The unstandardized coefficients beta value of 0.202 is the path value or P3 path. Based on the t-test shown in Figure 2 the unstandardized coefficients beta value for the Trust variable is 0.255. The unstandardized coefficients beta value of 0.255 is the path value or P4 path. The unstandardized coefficients beta of the eWOM variable is 0.316. The unstandardized coefficients beta value of 0.316 is the path value or P5 path. The unstandardized coefficients beta of the Ease-of-Use variable is 0.219. The unstandardized coefficients beta value of 0.219 is the path value or P6 path. The unstandardized coefficients beta of the BRAND IMAGE variable is 0.214. The unstandardized coefficients beta value of 0.214 is the path value or P7 path. Based on R2 test that could be seen on Figure 2, e1 = = = = 0,767. The empirical of causal effect between variable (X1) TRUST, (X2) eWOM dengan (X3) EASE OF USE through BRAND IMAGE can be figured on first equation structural: Brand Image = b1Trust + b2 e-WOM + b3 Ease of Use + e1 or Brand Image = 0,230 Trust + 0,277 e-WOM + 0,202 Ease of Use + 0,767 e1 Based on R2 test that could be seen on Figure 3 e1 = = = = 0,688. The empirical of causal effect between variable (X1) TRUST, (X2) e-WOM, (X3) EASE OF USE dengan (Z) BRAN IMAGE terhadap PURCHASE INTENTION can be figured on second equation structural: Purchase Intention = b1Trust + b2 e-WOM + b3 Ease of Use + b4 Brand Image + e2 or Purchase Intention = 0,255 Trust + 0,316 e-WOM + 0,219 Ease of Use + 0,214 Brand Image + 0,688 e2 The interpretation of the path analysis results can be seen in the following figure: Figure 3
Based on the Figure 4 it could be explained on the table below: Figure 4
4.5.2. DIRECT AND INDIRECT MODEL In the path model, this study will explain the direct and indirect effect of exogenous variables on endogenous variables. · The Effect of Trust on Purchase Intention Direct Effect (X1 Y) = 0.255 Indirect influence (through Brand Image): X1*Z= (0.230) *(0.214) = 0.049 If the indirect effect is greater than the direct effect, it can be concluded that the actual relationship is an indirect or a mediating variable. From these results it can be concluded that Trust has a direct effect on Purchase Intention. This is because the direct effect value is greater than the indirect effect (0.255 < 0.049). · Effect of Electronic Word of Mouth on Purchase Intention Direct Effect (X2 Y) = 0.316 Indirect influence (through Brand Image): X2*Z= (0.277) *(0.214) = 0.0593 If the indirect effect is greater than the direct effect, then the actual relationship is an indirect or mediating variable. From these results, it can be said that electronic Word of Mouth has no direct influence on Purchase Intention. This is because the value of the direct effect is greater than the indirect effect (0,316 > 0,0593). · The Effect of Ease of Use Through Purchase Intention Direct Effect (X3 Y) = 0,219 Indirect Effect (through Brand Image): X3*Z= (0,202) *(0,214) = 0,0432 If the indirect effect is greater than the direct effect, then the actual relationship is an indirect or mediating variable. From these results, it can be said that Ease of Use has no direct influence on Purchase Intention. This is because the value of the direct effect is greater than the indirect (0,219 > 0,0432). Figure 5
Based on the description of the table above, the indirect effect of Trust (X1) on Purchase Intention (Y) through Brand Image (Z) is 0.1044 > the direct effect of trust (X1) on Purchase Intention (Y) is -0.136. Thus, Brand Image as an intervening variable. It can be concluded that H8 is Rejected. The indirect effect of EWOM (X2) on Purchase Intention (Y) through Brand Image (Z) is 0.1191 < the direct effect of EWOM (X2) on Purchase Intention (Y) is 0.235. Thus, BRAND IMAGE is not an intervening variable. It can be concluded that H9 is Rejected. The indirect effect of Ease of Use (X3) on Purchase Intention (Y) through Brand Image (Z) is 0.0785 < the direct effect of Ease of Use (X2) on Purchase Intention (Y) is 0.242. Thus, BRAND IMAGE is not an intervening variable. It can be concluded that H10 is Rejected. 4.6. DISCUSSION Based on the results of research, the discussion can be drawn according to the formulation of the problem as follows, Fist, Trust has a positive effect on Brand Image. This means that the more consumer trust increases, the brand image will significantly increase. At the opposite, if consumer trust is getting lower, the brand image will also decrease significantly. Based on Electronic Word of Mouth has a positive effect on Brand Image. This means that the more positively charged Electronic Word of Mouth spread by consumers on various social media, the Brand Image will significantly increase. At the opposite, if the Electronic Word of Mouth gets lower and contains a negative message, the Brand Image will also decrease significantly. Then, Ease of Use has a positive effect on Brand Image. This means that the increasing Ease of Use or ease of access for consumers, the Brand Image will significantly increase. At the opposite, if Ease of Use decreases or consumers find it increasingly difficult to access their needs, the Brand Image will also decrease significantly. The second state refers Trust has a positive effect on Purchase Intention. This means that the more consumer trust increases, the purchase intention will significantly increase. Consumer purchase intention will grow. On the other hand, if consumer trust is lower, the purchase intention will also decrease significantly. Then. Electronic Word of Mouth has a positive effect on Purchase Intention. This means that the more positively charged Electronic Word of Mouth spread by consumers on various social media, the Purchase Intention will significantly increase. At the opposite, if the Electronic Word of Mouth is getting lower and contains a negative message, the Purchase Intention will also decrease significantly. Ease of Use has a positive effect on Purchase Intention. This means that the greater the Ease of Use or the ease of access for consumers, the Purchase Intention will significantly increase. At the opposite, if Ease of Use decreases or consumers find it increasingly difficult to access their needs, Purchase Intention will also decrease significantly. Based on Brand Image has a positive effect on Purchase Intention. This means that the higher the Brand Image of a product in the eyes of consumers, the Purchase Intention will significantly increase. At the opposite, if the Brand Image decreases or consumers look down on a product, Purchase Intention will also decrease significantly. Brand Image is not an intervening variable between Trust and Purchase Intention. This means that the pure purchase intention is directly influenced by the trust that has been believed by consumers without being affected by the Brand Image. Brand Image is not an intervening variable between Electronic Word of Mouth and Purchase Intention. This means that pure purchase intentions are directly influenced by messages conveyed by previous consumers spread across various social media that have been trusted by consumers without being affected by brand image. Last, Brand Image is not an intervening variable between Ease of Use and Purchase Intention. This means that pure Purchase Intention is directly influenced by the ease of access felt by consumers in seeking their needs without being affected by Brand Image. 5. CONCLUSION Based on the results and discussion, the conclusion would be made, first, Tokopedia needs to increase customer trust in order to improve the Brand Image that has been built before. Second, Tokopedia needs to improve facilities to accommodate customer messages, so that customer voices or customer complaints can be adopted properly. If the message is a criticism, then Tokopedia can immediately respond and improve so that the Tokopedia Brand Image will be better in the eyes of consumers. Third, Tokopedia needs to improve the ease of use in various existing features, so that consumers can easily find their needs without having to feel difficult, and this will be a positive value for Tokopeda in maintaining a positive Brand Image. Refers to the results, Tokepedia needs to increase customer trust, especially in terms of the ordering process, payment to delivery of goods to consumers so that it remains a consumer choice and of course this will increase Purchase Intention (Purchase Intention) to consumers. Tokopedia needs to improve facilities that can accommodate the aspirations or voices of consumers so that the needs and desires of customers can be maximally fulfilled so that this will also increase the Purchase Intention of consumers. Also, Tokopedia needs to improve the ease of use in every feature offered, so that consumers do not find it difficult and look for their needs and transaction processes. This will certainly increase the Purchase Intention (Purchase Intention) of consumers will also increase. 6. LIMITATION AND FUTURE RESEARCH For further research, Trust, e-WOM, Ease of Use, and Brand Image in theory play a very important role in increasing Purchase Intention, especially in the current era, where competition in the e-commerce business is extraordinary. It is hoped that in further research Trust, e-WOM, Ease of Use, and Brand Image as supporting factors in increasing Purchase Intention. In addition, it is recommended to be able to develop the results of this study by adding other variables such as Social Media Influencer, Perceived Risk, and other variables that are felt to increase Purchase Intention.
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