EFFECTS OF PRODUCT DESIGN, INSTAGRAM POST VISUAL AESTHETHICS AND BRAND EQUITY TO CONSUMERS PROPENSITY TO
ENGAGE WITH BRAND RELATED CONTENT ON SOCIAL MEDIA (COBRAS)
By
Sheila Jesica Shan 21953006
MASTER’S DEGREE in
Business Administration
Faculty of Business Administration and Communication
SWISS GERMAN UNIVERSITY The Prominence Tower
Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia
Revision after Thesis Defense on 10th of August 2021
Sheila Jesica Shan
STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Sheila Jesica Shan
_____________________________________________
Student
21/08/21 Date
Approved by:
Deborah Nauli Simorangkir,PhD
_____________________________________________
Thesis Advisor
21/08/2021 Date
(OPTIONAL)
-
_____________________________________________
Thesis Co-Advisor Date
Dr. Nila K. Hidayat,SE.,MM
_____________________________________________
Dean
21/08/2021 Date
Sheila Jesica Shan
ABSTRACT
Effects of Product Design, Instagram Post Visual Aesthethics and Brand Equity to Consumers Propensity to Engage with Brand Related Content on Social
Media (COBRAs)
By
Sheila Jesica Shan
Deborah Nauli Simorangkir, PhD SWISS GERMAN UNIVERSITY
With increasing internet penetration and social media use in Indonesia, especially Instagram, and the ever increasing competition for consumer´s engagement in the platform, this study aims to find out whether the product design, instagram post visual aesthethics and brand equity of the products featured in the Instagram account has effects on the consumer´s propensity to engage with brand related content on social media. In this study, the Instagram account @asianbearindo, belonging to Asian Bearindo Group, a significant player in the bearing and spareparts industry in Indonesia is studied. After examining 141 valid responses of the followers of @asianbearindo using SEM, it has been found that for this account, the instagram post visual aesthethics and brand equity of the products correlates to COBRAs, however this is not the case with product design.
Keywords: Product Design, Instagram, Visual Aesthethics, Brand Equity, COBRA
Sheila Jesica Shan
© Copyright 2021 by Sheila Jesica Shan
All rights reserved
Sheila Jesica Shan
DEDICATION
I dedicate this paper to my family, especially my parents who loves me unconditionally.
Sheila Jesica Shan
ACKNOWLEDGEMENTS
I would like to first thank my advisor, Mrs. Deborah Nauli Simorangkir,PhD, who has been patient and always willing to help. I would also like to thank Dr. Soebowo Musa, who has patiently helped me developing my thesis proposal. The completion of this paper will also not be possible without the help of my classmates, who have helped me during the course of my thesis. Lastly, I would like to thank my family and boyfriend for the never ending moral support.
Sheila Jesica Shan
TABLE OF CONTENTS
Page
STATEMENT BY THE AUTHOR 2
ABSTRACT 3
DEDICATION 5
ACKNOWLEDGEMENTS 6
TABLE OF CONTENTS 7
LIST OF FIGURES 9
LIST OF TABLES 11
CHAPTER 1 - INTRODUCTION 12
1.1. Background 12
1.2. Research Problems 24
1.3. Research Questions 28
1.4. SCOPE AND LIMITATION 29
1.5. SIGNIFICANCE OF THE STUDY 29
1.6. Thesis Framework 30
CHAPTER2-LITERATURE REVIEW 32
2.1.1. Internet 32
2.1.2. E-Commerce 34
2.1.3. Social Media 35
2.2. Instagram 36
2.3. Product Design 43
2.4. Instagram Post Visual Aesthethics 50
2.5. Brand Equity 53
2.6. COBRAs 60
2.7. Research Model 62
CHAPTER 3 – RESEARCH METHODS 79
3.1. Research Design 79
3.2. Unit Analysis & Observation 86
3.3. Sampling Design 89
3.4. Time & Location of the Study 94
3.5. Data Collection Method 94
3.6. Variable Operationalization 96
3.7. Data Processing Procedure 104
3.8. Data Coding 111
3.9. Data Analysis Method 112
CHAPTER 4 – RESULTS AND DISCUSSIONS 115
4.1. Pre-Test 115
Sheila Jesica Shan
4.3. Data Analysis 118
4.4.Missing Data 118
4.5. Descriptive Statistics 119
4.6. Vailidity Test 122
4.7. Realibility Test 122
4.8. Normality Test 122
4.9. SEM 123
4.10. Discussion 131
CHAPTER 5 – CONCLUSION AND RECCOMENDATIONS 135
5.1. Conclusion 135
5.2. Practical Implications 135
5.3. Recommendation for Future Research 136
GLOSSARY 137
REFERENCES 138
CURRICULUM VITAE 153
Sheila Jesica Shan
LIST OF FIGURES
Fig Title Page
1.1 Percentage of Indonesian Population with Internet Connection
1990-2019 11
1.2
Datas of number of Instagram users in Indonesia in January 2020 and December 2020, per age group and gender
(Napoleoncat ,2021)
14
1.3 Screenshot of tagged section of @off___white´s instagram
account as in February 2021 (Instagram @off___white , 2021) 18 1.4 The look of instagram´s home page (BlogUseJournal, 2019). 20 1.5 Screenshot of @unionjkt. It is the instagram page of a famous
high end restaurant chain in Jakarta 22
1.6 The top locations of the followers of @asianbearindo 27 2.1.1 The top locations of the followers of @asianbearindo 33 2.2.1 Screenshot of an Instagram page of @sheilajshan´s account on
February 2020 37
2.2.2 Story of @ottencoffee 38
2.2.3 Instagram Live Feature 37
2.3 IGTV on Instagram feed 39
2.4 Instagram Shopping Feature 41
2.5 The Viral Strawberry Dress by Lirika Matoshi, worn by model
Shaanti Chaitram 45
2.6 TikTok users posting about Bissel Little Green Carpet Cleaner 46 2.7 Daniel Manata, owner of the brand “Damn, I Love Indonesia” 48 2.8 Example of an instagram feed with classical aesthetics 50 2.9 Example of an instagram feed with expressive aesthetics 51 2.10 Framework of customer based brand equity by Fayrine and Lee 53
2.11 Engagement Pyramid 60
3.1 Research Model 73
3.2 Deductive Research Flowchart 81
3.3 Inductive Research Flowchart 82
3.4a Location of all Asian Bearindo Group subsidiaries in Indonesia 86 3.4 The demographics of the followers of @asianbearindo, as in
16th of April 2021 88
3.5 Questionairre Development Process 94
4.1 T-values of Variables 115
Sheila Jesica Shan
Sheila Jesica Shan
LIST OF TABLES
Table Title Page
2.1 COBRA typology based on different social media platforms 60
2.2 Important Articles in this Paper 66
3.1 Research Design 84
3.2 Research´s Variable Operationalization 98
3.3 Research´s Control Variables 101
3.4 Content Validity Literature 106
3.5 Summary of data coding of indicators of different dimensions and
variables 109
4.1 Realibility Statistics of Pretest Questionnaire 115
4.2 Descriptive Analysis of Each Item 117
4.3 Parameters for Model Fit Measurement 122
4.4 Product Features Realibility and Validity Test Results 123 4.5 Instagram Post Aesthethics Realibility and Validity Test Results 124 4.6 Brand Equity Realibility and Validity Test Results 124
4.7 COBRAs Realibility and Validity Test Results 125
4.8 Hypothesis Testing Results 126
