Michelle Salim THE EFFECT OF SOCIAL MEDIA MARKETING VIA INSTAGRAM
TOWARDS CUSTOMER PURCHASE INTENTION A CASE STUDY OF BUNKER CAFE
By
Michelle Salim 11403011
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION – HOTEL AND TOURISM MANAGEMENT Concentration
FACULTY OF BUSINESS AND COMMUNICATION
SWISS GERMAN UNIVERSITY The Prominence Tower
Tangerang 15143 Indonesia
June 2018
Michelle Salim 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.
Michelle Salim
Student Name Date
Approved by:
Munawaroh
Thesis Advisor Date
Nila K. Hidayat
Dean Date
Michelle Salim THE EFFECT OF SOCIAL MEDIA MARKETING VIA INSTAGRAM TOWARDS CUSTOMER PURCHASE INTENTION. A CASE STUDY OF
BUNKER CAFE
By Michelle Salim
Munawaroh, Advisor
SWISS GERMAN UNIVERSITY
By the end of 2015, “eatertainment” cultures become a popular phenomenon within the food industry cultures. A unique concept will not get acknowledgement from the public if it is not known. Due to the low number of customers, promotional tools via Instagram is being evaluated as it intended to increase the customer intention to visit. This research aimed to identify whether Instagram as social media marketing tools has an effect on customer purchase intention. The research focus on Bunker Café located in Gading Serpong at Tangerang as the main case study. There were 110 respondents selected to be used as the data. The validity and reliability for pre-test was calculated with SPSS program using Pearson table of correlation and Cronbach Alpha´s, the post-test utilizing SEM-PLS analysis convergent validity and AVE, while reliability using CA and composite reliability. WarpPLS was utilized to calculate relationship between variable. It was found that Social media marketing via Instagram has a strong relation correlation to individual purchase intention. Whereas, Bunker café social media Instagram still need to improve their context as the component of Social media marketing to improve and gaining more customer purchase intention. However, their strongest point was contributed by its successes of communication dimension.
Keywords: Social media marketing, Instagram, customer purchase intention, publicity, promotional tool
Michelle Salim
© Copyright 2018 by Michelle
Salim All rights
reserved
Michelle Salim I dedicate my works for the future of the hotelier’s industry and both of my parents. This is my last piece of work for the bachelor degree my last war from 8th semester in total of 4 years before finally I step in to the real battle field of employment.
Michelle Salim ACKNOWLEDGEMENTS
With this paper, first I would like to express my deepest gratitude towards the Lord for always be there to guide me, strengthen me with faith and hope so I can believe in myself to finish what I have started.
Second, I would like to express my gratuity to thank people around me that support me during the writing of dissertation especially to my dissertation supervisor, Mrs. Munawaroh that always guide me to finish this dissertation.
In addition, I would like to present this dissertation to my mother Vonny and father Horison for their endless support, because without them, I would not be able to come and pursue my study here in Switzerland and Indonesia.
I would also thank my friends that always be there to support me and finally we are all able to finish this dissertation. I will really cherish this moment as we had been through the endless sleep, crying and sweating moment to help me for brainstorming to find a new title. Hence, thankyou Ly La for always supporting me to finish my dissertation. Also thank you Olivia Tamara, Atiqi, Shirleen and Isabella for helping me to find my dissertation title. Moreover, for those other lectures that only we (me and themselves) know who have helped me also to find the new title, discuss and encourage me. Thank you so much for your role in my dissertation contribution.
Last but not least. I would like to express my gratefulness to the respondents who have participated in this research and the referenced authors that gave me knowledge on a new perspective in this research.
Michelle Salim
STATEMENT BY THE AUTHOR ... 2
ABSTRACT…. ... 3
DEDICATION ... 5
TABLE OF CONTENTS... 7
Chapter 1 Introduction ... 13
1.1 Background ... 13
1.2 Research Problems ... 16
1.3 Research questions ... 17
1.4 Research Objectives ... 17
1.5 Scope and Limitation ... 17
1.6 Significance of Study ... 17
1.7 Thesis Structure... 18
Chapter 2 Literature Review ... 19
2.1 Conceptual Framework ... 19
2.2 Restaurant... 20
2.3 Restaurant types ... 20
2.3.1 Fast casual dining classification ... 21
2.4 The difference of coffee shop and coffee house (café) ... 21
2.5 Marketing Mix ... 22
2.6 Promotion ... 22
2.6.1 Promotion as part of Marketing Mix... 22
2.7 Promotional Mix ... 23
2.8 Social Media ... 24
2.8.1 Social Media categories ... 24
2.8.2 Function of social media ... 24
Michelle Salim
2.9 Social Media Marketing ... 25
2.10.1 Context ... 26
2.10.2 Communication ... 27
2.10.3 Collaboration ... 28
2.10.4 Connection ... 28
2.11 Integrated Marketing Communication ... 29
2.12 Consumer Buying Behavior ... 30
2.13 Purchase Intention ... 31
2.13.1 Definition of purchase intention ... 31
2.13.2 Factors of purchase intention ... 32
2.14 Previous Study ... 35
2.15 Hypothesis ... 38
2.16 Study differences and similarities ... 38
Chapter 3 RESEARCH METHODS ... 39
INTRODUCTION ... 39
3.1 Type of Study ... 39
3.2 Unit Analysis... 39
3.3 Sampling Design ... 40
3.3.1 Population & Sample ... 40
3.3.2 Sampling Method ... 40
3.3.3 Sample Size ... 41
3.4 Location & Time Frame of Study ... 41
3.5 Data Sources and Collection Method... 42
3.5.1 Type of Data... 42
3.5.2 Data Collection Method ... 44
3.5.3 Questionnaire Structure... 44
3.6 Research Model... 45
3.7 Variable Operationalization ... 46
3.8 Data Processing Procedures ... 49
Michelle Salim
3.10 Data Screening ... 50
3.11 Data analysis technique ... 50
3.12 Pre-Testing ... 51
3.12.1 Validity Test ... 51
3.12.2 Reliability Test ... 52
3.13 Post Testing ... 53
3.14 SEM ... 53
3.14.1 Path Diagram... 55
3.15 PLS SEM Model Evaluation ... 55
3.15.1 Hypothesis Testing ... 55
Chapter 4 Result and Discussion ... 57
4.1 Company Profile ... 57
4.2 Profile of Respondents ... 57
4.2.1 Profile of Respondents based on Gender ... 58
4.2.2 Profile of Respondents based on Age ... 58
4.2.3 Profile of Respondents based on Domicile ... 59
4.2.4 Profile of Respondents based on Occupation ... 59
4.2.5 Profile of Respondents based on Educational Background ... 60
4.2.6 Profile of Respondents based on Expense per visit to café or restaurant 61 4.2.7 Profile of Respondents based Companion ... 61
4.3 Descriptive Statistic ... 62
4.4 Instruments ... 66
4.4.1 Validity Test and Reliability Pre -test ... 66
4.5 SEM PLS Test ... 72
4.5.1 Measurement Model or Outer Model Evaluation ... 72
4.5.2 Model Fit Indicator ... 72
4.5.3 Validity Test in PLS-SEM ... 73
4.5.4 Reliability Test in PLS-SEM ... 74
4.5.5 Structural Model Testing (Inner model) ... 75
Michelle Salim
4.6 Hypothesis Test Result... 78
4.7 Hypothesis Test Discussion ... 79
4.7.1 Indicator Results discussion ... 79
Chapter 5 Conclusion and Recommendation ... 81
5.1 Conclusion ... 81
5.1.1 The hypothesis made is accepted (H1 is accepted) ... 81
5.2 Recommendation ... 81
5.2.1 Recommendation for Managerial Implication ... 82
5.2.2 Recommendation for Future Researchers ... 83
GLOSSARY…. ... 85
ABREVIATION ... 86
REFERENCES ... 87
APPENDIX A: Raw Data Excel – Pre-Test ... 97
APPENDIX B: Raw Data Excel – Post-Test ... 98
APPENDIX C: Questionnaire in English ... 101
APPENDIX D: Recommendation ... 107
APPENDIX E: Reasons of not following or open the Instagram account ... 108
APPENDIX F: BUNKER CAFÉ Instagram posting Appearance ... 107
CURICULUM VITAE ... 109
