Impact of the Influence of Brand Image and E-Wom (Electronic Word Of Mouth) on Consumer Purchase Decisions on Indihome Products and Services in the City
of Surabaya
Arif Dwi Amsah
Departemen of Management, Narotama University Surabaya Jl. Arief Rachman Hakim No. 51, Surabaya, Indonesia
[email protected]
Abstrak
In fact, Indihome has brand image and e-WOM (Electronic word of mouth) according to the perception of most customers, this is supported by YLKI data, where the top order of products that consumers complain about the most is Indihome. This study aims to examine and analyze the effect of brand image and e-WOM (Electronic word of mouth) on consumer purchasing decisions for IndiHome products and services in the city of Surabaya. This study uses a quantitative approach. The population in this study were 100 customers and prospective customers of Indihome. The sampling technique used census sampling. Data collection is done using Google Forms. The data analysis technique used is the R square test, F test and t test at a significant level of alpha 0.05. The result of this research is that Brand Image and E-WOM simultaneously have a significant effect on purchasing decisions for Indihome products and services. While the results of partial hypothesis testing indicate that the Brand Image orientation is significant to the Purchase Decision. E-WOM has a significant effect on purchasing decisions.
Keywords
Brand Image, E-WOM (Electronic Word Of Mouth), and Purchase Decision.
1. Introduction
Currently, Indonesia has an increasing number of internet users. This is supported by a report DataBoks, 2022, that there were 204.7 million internet users in Indonesia as of January 2022. The trend of using the internet in Indonesia has continued to increase in the last five years. The internet has become an important part of people's lives, especially during this COVID-19 pandemic. The internet is needed when people can no longer congregate, carry out activities as usual, gather to work and work from home (work from home), not only activities for work, educational activities are also carried out from home and rely heavily on the internet to communicate. Families who usually meet also find it difficult to meet due to the COVID-19 pandemic, making the internet a means of communicating and staying in touch with fellow brothers, relatives and colleagues. Internet use in Indonesia is supported by Internet service providers that have many kinds, one of which is Indihome. Indihome is chosen by most Indonesian people because Indihome is the largest provider in Indonesia.
Indihome is the largest Internet Service Provider product in Indonesia. Indihome is a product of PT. Telkom Indonesia (Persero) Tbk, in the form of communication and data services such as landline telephones, internet, and interactive television services. In the last three years from 2019, 2020, 2021, Indihome was able to rank first in the Top Brand ISP Fixed. However, according to data from the Indonesian Consumers Foundation (YLKI), 11.9% of the total 535 complaints during 2021 were complaints about telecommunication companies. Complaints about Indihome account for 25 percent of total complaints against telecommunication companies and are the top product that consumers complain about the most. In fact, Indihome has a bad brand image and e-WOM (Electronic word of mouth) according to the perception of most customers, this is supported by YLKI data, where the top order of products that consumers complain about the most is Indihome. In addition to having a bad brand image and e- WOM in the community, interestingly indihome has so far been able to achieve a rapidly increasing income with a figure of 24.2% in the first semester of 2021 and achievements in the Top Brand Award for 3 consecutive years.
This is certainly an interesting phenomenon to be studied through research. With the phenomenon of poor brand image and e-WOM according to customer perceptions, this should have an impact on reducing purchases and the occurrence of switching customers to move to other providers and in turn PT. However, this is very inversely proportional to the data and theories that have been studied so far. In other words, in this case, indihome has advantages in terms of marketing and sales so that it can attract many consumers to continue to buy and use indihome products and services. This phenomenon is a very interesting research gap to be studied through research. Brand image is the perception and belief made by consumers, as reflected in the associations that occur in the memory of consumers
According to Keller, (2012) Electronic word of mouth (e-WOM) is a communication medium to share information about a product or service that has been consumed between consumers who initially did not know each other and met previously delivered electronically (Gruen, T. W., Osmonbekov, T., & Czaplewski, 2006) Consumer decisions are a a problem-solving approach to human activities to buy goods or services to fulfill their wants and needs (Keller, 2012)
1.1 Research Framework
Figure 1: Research Framework Hypothesis
According to Kerlinger (1973) the hypothesis is a statement of the alleged relationship between two or more variables. The following is a description of the literature review which then mapped the following hypotheses:
H1: Brand image berpengaruh signifikan secara parsial terhadap keputusan pembelian produk Indihome.
H2: electronic word of mouth berpengaruh signifikan secara parsial terhadap keputusan pembelian produk Indihome.
H3: Brand image dan electronic word of mouth berpengaruh signifikan secara simultan terhadap keputusan pembelian produk Indihome.
1.2 Literature Review
According to Afif (2002) the word brand that we often use as a translation of the word brand comes from the Dutch language which is widely adopted and used in our marketing language. In its growth the brand has many definitions. Based on the many perspectives of observers and marketing experts. For example, Keagan (1995) defines a brand as a complex set of images and experiences in the minds of customers, which communicates expectations about the benefits that will be obtained from a product produced by a particular company. According to Tjiptono, (1997) brand image is a description of associations and beliefs about certain brands. Brand image is an image that appears in the minds of consumers when considering a brand of a particular service or product.
These associations can be categorized by type, support, strength, and uniqueness. Types of association include attributes, benefits, and attitudes. Schiffman and Kanuk in (Widianingsih, 2009) mention the factors forming brand image, namely:
1. Quality or quality, related to the quality of goods and services offered by producers,
2. Can be trusted or relied upon, relating to opinions or agreements formed by the community about a product or service that is consumed,
3. Usefulness or benefits related to the function of a product or service that can be utilized by consumers, 4. Services, which are related to the producer's duty in serving consumers,
5. Risk, related to the size of the consequences or profit and loss that may be experienced by consumers, 6. Price, which in this case relates to the high or low or the least amount of costs incurred by consumers to get
products or services from the company,
7. The image owned by the brand itself, which is in the form of views, agreements, and information related to a particular brand.
According to Canhoto (2013) E-WoM refers to a positive, neutral, or negative experience-based statement made by potential, real or former consumers about a product, service, brand, or company, which is known to people and institutions. via the internet (via websites, social media, instant messages, news,...). According to Lupiyoadi (2013) Word of mouth communication or commonly called word of mouth can be measured from:
1. Consumers get information about the company,
2. Consumers are encouraged to make purchases due to motivation from others (growing motivation) 3. Get recommendations from others.
Purchasing decision making is related to a selection made by individuals to determine the choice of various alternatives available for a product that is suitable to meet needs. Human needs are many and varied and these needs can be met in an economic system that is carried out by buying activities. Thus, a need will eventually lead to a purchase decision.Effendi (2016). According to James F. Engel states that consumer purchasing decisions are influenced by several factors, namely:
1. Cultural Influence
Culture is used in marketing studies, especially in consumer behavior with reference to values, ideas, artifacts and other symbols that have meaning to help individuals to communicate, interpret and evaluate as members of society.
2. Social Class Influence
Social class is a division in society consisting of individuals who share values, interests, lined up from low to high. Social status often produces different forms of consumer behavior.
3. Personal Influence
Individuals as consumers of behavior are often influenced by those who are closely related to other individuals. may respond to perceived pressure to conform to the norms and expectations of others.
Appreciate those around him for their advice on purchasing options.
4. Family Influence
The family is often the main decision-making unit, of course, with complex patterns of roles and functions, decisions vary. The family relationship with consumption purchases is very important for the first reason, many products are purchased by multiple consumers who act as a family unit. The second reason, when a purchase is made by an individual, the decision may be strongly influenced by other family members.
2. Methodology
In this study, the approach used by the researcher is quantitative research and uses statistical formulas to help analyze the data and facts obtained. Researchers took a sample of 100 people from Indihome customers and prospective Indihomes who have been and will use Indihome products and services at random. Data collection techniques in this study using observation and questionnaires. The data in this study were processed using the IBM SPSS Statistics 25 program.Data analysis in this study used multiple linear regression analysis.
Researchers used partial test (t test) and simultaneous test (F test) to test the hypothesis in this study. The formulation of the hypothesis for the partial test (t statistical test) in this study is as follows:
1. Ho = independent variable (X) partially has no significant effect on the dependent variable (Y).
2. Ha = the independent variable (X) partially has a significant effect on the dependent variable (Y).
The formulation of the hypothesis for the simultaneous test (F statistic test) in this study is as follows:
1. Ho = independent variable (X) simultaneously has no significant effect on the dependent variable (Y).
2. Ha = independent variable (X) simultaneously has a significant effect on the dependent variable (Y).
The basis for decision making with a significance level of 0.05 is as follows:
1. If the value of sig. > 0.05 then the decision Ho is accepted and Ha is rejected, meaning that the independent variable (X) simultaneously has no significant effect on the variable (Y).
2. If the value of sig. <0.05 then the decision Ho is rejected and Ha is accepted, meaning that the independent variable (X) simultaneously has a significant effect on the dependent variable (Y).
3. Result and Discussion
3.1 ResultBased on the results of respondents' answers to the questionnaires distributed, respondent data can be described by gender, the majority of respondents are male as many as 75 people or 74.5%. While the rest of the female respondents were 25 people or 25.5%. Based on age, the majority of respondents were aged 17-25 years, amounting to 51 people or 52%. While the rest aged 26-35 years amounted to 43 people or 43%, and ages 36 years and over amounted to 6 people or 6%.
Based on the type of work, the majority of respondents' jobs are private with a total of 58 people or 58%, then other jobs have 25 people or 25%, and for student jobs there are 14 people or 14%, and the last civil servant jobs have 3 people or 3% . Based on the length of subscription, it can be seen that the majority of Indihome subscribers are 1-3 years old with 41 people or 41%, then the 3 year subscription period has 39 people or 39%, and the remaining less than 1 year has 20 people or 20%.
1) Validity Test
According to Ghozali (2012), the validity test aims to determine whether or not the questionnaire used for data collection is valid. Validity test is conducted to see whether the items presented in the questionnaire can reveal what is being researched. Validity test is used as a measure of whether a questionnaire is valid or not. The questionnaire is said to be valid if the questionnaire can reveal something that will be measured by the questionnaire itself. Validity test using Pearson Correlation is a way to calculate the correlation with the value obtained in the form of a question or statement. The statement will be said to be valid if the significance level is below 0.05 (Ghozali, 2012)
Table 1.
Variabel Item Pernyataan
Corrected Item-Total Correlation
rtabel Keterangan
Brand Image (X1)
X1.1 0.754 0.195 Valid
X1.2 0.797 0.195 Valid
X1.3 0.809 0.195 Valid
X1.4 0.658 0.195 Valid
X1.5 0.628 0.195 Valid
X1.6 0.845 0.195 Valid
E-Word Of Mouth (X2)
X2.1 0.788 0.195 Valid
X2.2 0.689 0.195 Valid
X2.3 0.505 0.195 Valid
X2.4 0.542 0.195 Valid
X2.5 0.507 0.195 Valid
X2.6 0.569 0.195 Valid
Keputusan Pembelian
(Y)
Y.1 0.769 0.195 Valid
Y.2 0.616 0.195 Valid
Y.3 0.753 0.195 Valid
Y.4 0.818 0.195 Valid
Y.5 0.793 0.195 Valid
Based on tabel 1, the validity test above has a value it can be seen that all items or indicators of brand image variables (X1), electronic word of mouth (X2), and purchasing decisions (Y) have rcount > rtable of 0.195.
2) Reliability Test
The reliability test is actually a questionnaire measuring instrument which is an indicator of a variable. A questionnaire is said to be reliable if a person's response to a statement is consistent from time to time. The questionnaire instrument is said to be feasible or reliable, if the value of Cronbach's alpha is greater than 0.06 and is said to be not feasible or reliable, if the Cronbach's alpha value is less than 0.06 (Ghozali, 2012)
Table 2.
Variabel Item Pernyataan
Cronbach’s Alpha if item
Deleted
Tabel Kritis
Keterangan
Brand Image
X1.1 0,943 0.6 Reliabel
X1.2 0,942 0.6 Reliabel
X1.3 0,942 0.6 Reliabel
X1.4 0,945 0.6 Reliabel
X1.5 0,945 0.6 Reliabel
X1.6 0,941 0.6 Reliabel
E-WOM (Electronic
Word of Mouth)
X2.1 0,942 0.6 Reliabel
X2.2 0,944 0.6 Reliabel
X2.3 0,948 0.6 Reliabel
X2.4 0,947 0.6 Reliabel
X2.5 0,948 0.6 Reliabel
X2.6 0,946 0.6 Reliabel
Keputusan Pembelian
Y1.1 0,943 0.6 Reliabel
Y1.2 0,946 0.6 Reliabel
Y1.3 0,943 0.6 Reliabel
Y1.4 0,942 0.6 Reliabel
Y1.5 0,942 0.6 Reliabel
Based on tabel 2 above, the data in this study has a cronbach's alpha of 17 which is greater than 0.60. Thus, the data of this study can be stated as reliable and trustworthy.
3) Normality Test
According to (Ghozali, 2012) defines that the normality test has a purpose to test whether in the regression model, the independent variable and the dependent variable both have a normal data distribution or not.
A good regression model is said to have a normal data distribution or close to normal. In this study, the normality test uses the Normal Plot of Regression Standardized Residual, that is, if the data spreads around the diagonal line of the graph, then follows the direction of the diagonal line, then the regression model fulfills the assumption of normality, but on the contrary if the data spreads away from the diagonal line, then follow or does not follow the direction of the diagonal line, the regression model can be said to not meet the assumption of normality. The graph is presented in Figure 2 below:
Based on the graph above, it show that all existing data is normally istributed, because alla data spreads to from a straight diagonal line, the data meets the normal assumption or follows the normality line.
4) Multicollinearity Test
According to Ghozali, (2005) multicollinearity is a condition in which the independent variable (independent) is correlated with other independent variables or the independent variable is a linear function of the other independent variables. A good regression model should have no correlation between independent variables.
The results of the multicollinearity test are presented in table 3 below:
Table 3.
Variabel Collinearity Statistics Keterangan
Tolerance VIF
Brand image (X1)
0,569 1.756 Bebas
Multikolinieritas
E-WOM (X2) 0,569 1.756 Bebas
Multikolinieritas
Based on table 3, it is known that the regression model does not experience multicollinearity disorders. This is indicated by the tolerance value for each independent variable is more than 0.1. Then the results of the VIF calculation also prove that the VIF value for each independent variable is less than 10. It is concluded that there is no multicollinearity between the independent variables in the regression model used.
5) Heteroscedasticity Test
According to Ghozali (2005) Heteroscedasticity test aims to test whether in the regression model there is an inequality of variance from one study to another. The way to test heteroscedasticity data is by looking at the presence or absence of certain patterns in the scatterplot graph between SRESID & ZPRED, where the Y axis is Y which has been predicted, & the X axis is residual (Y predicted – Y actually) which has previously been standardized. Then the basis for making heteroscedasticity test decisions is:
1. If in certain patterns such as dots that form certain and regular patterns (melting which then narrows, and wavy), then it means that heteroscedasticity has occurred.
2. If there is no clear pattern, both points that spread above and below the number 0 (zero) on the Y axis, it means that there is no heteroscedasticity.
The graph of Heteroscedasticity testing can be explained in the following figure:
Figure 2.
Based on the graph above, it can be seen that the data distribution is irregular and does not form a certain pattern, the data distribution is spread above and below the number 0 on the Y axis, so it can be concluded that in this regression model there is no heteroscedasticity problem.
6) Multiple Linear Regression Equation
Multiple linear regression was used to prove the results of the research hypothesis. This analysis uses input data obtained from the distribution of questionnaires. The summary of data processing using the SPSS application in this study is as follows:
Table 4.
Keterangan B thitung ttabel Sig.
Konstanta -0,344 -0,622 0,536
Brand image 0,809 9,498 1,988 0,000
E-WOM 0,144 1,495 1,988 0,138
Model persamaan regresi yang dapat dituliskan dari hasil tersebut dalam bentuk persamaan regresi bentuk standart adalah sebagai berikut:
Y= -0,344 + 0,809x1 - 0,144x2
From the multiple linear regression equation above, the following values are obtained:
1. Constant
The constant Y value is -0.344, which means that if the brand image (X1), e-wom (X2) is 0, then the purchase decision (Y) is -0.344.
2. Brand Image
The value of the brand image coefficient (X1) is 0.809, if the decision to purchase Indihome products and services increases the brand image (X1), it will increase the purchasing decision for Indihome products and services (Y) by 0.809 units. Assuming the value of the other independent variables is equal to zero.
3. Electronic Word Of Mouth
The coefficient value of electronic word of mouth (X2) is 0.144, if the decision to purchase Indihome products and services increases e-wom (X2), it will increase the purchasing decision of Indihome products and services (Y) by 0.144 units. Assuming the value of the other independent variables is equal to zero.
a. Determination Test
According to Ghozali, (2012) states that the coefficient of determination (R2) is a measure of how far the model is able to explain the variance of the dependent or dependent variable. Then the value of the coefficient of determination occurs between zero or one. A small R2 value means that the ability of the independent variables in explaining the variant of the dependent variable is very limited. The contrary, if the value is close to 1 means that the independent variables provide almost all of the information needed in predicting the dependent variables.
Table 5.
Model R R Square Adjusted
R Square
Std. Error of the Estimate
Durbin- Watson
1 0.817a 0.668 0.661 0.94386 1.498
Based on table 5. above, the coefficient value (R) shows the significance of the influence of the independent variable brand image (X1), electronic word of mouth (X2), on the dependent variable on purchasing decisions (Y), the magnitude of the coefficient value is 0.817. This proves that the independent variable brand image (X1), electronic word of mouth (X2), has a strong or close effect on the dependent variable on purchasing decisions (Y).
The value of the coefficient of determination or Adjust R Square (R2) is obtained at 0.661, which proves the large contribution of the independent variable brand image (X1), electronic word of mouth (X2), affecting the dependent variable purchasing decisions (Y) of 66.1%. While the remaining 33.9% is influenced by variables not examined in this study.
b. t-Test (Partial)
According to Ghozali, (2016) defines that the t-test difference test is used to test how far the influence of the independent variables used in individual research in explaining the dependent variable partially. The basis for decision making used in the t-test are if the significant probability value is greater than 0.05 then the hypothesis is rejected. The rejected hypothesis means that the independent variable has no significant effect on the dependent variable. The significant probability value is less than 0.05 then the hypothesis is accepted. The accepted hypothesis means that the independent variable has a significant effect on the dependent variable.
Table 6.
Model
Unstandardized Coefficients
Standardized Coefficients
t Sig.
B Std.
Error
Beta
1 (Constant) -0.344 0.553 -.622 0.536
E-Word of mouth 0.809 0.085 .737 9.498 0.000
Brand Image 0.144 0.096 .116 1.495 0.138
1) Testing the effect of brand image on purchasing decisions for Indihome products and services
The brand image variable based on table 5.4 is known to have a tcount of 1.495 with a significance value of 0.000 <0.05 or with a significance level of <0.05 or 0.000 then H0 is rejected and Ha is accepted, then brand image (X1) has a significant effect on purchasing decisions ( Y).
2) Testing the effect of E-WOM on purchasing decisions for Indihome products and services
The e-wom variable based on table 5.4 is known to have a tcount of 9.498 with a significance value of 0.000
<0.05 or with a significance level of <0.05 or 0.000 then H0 is rejected and Ha is accepted, then brand image (X2) has a significant effect on purchasing decisions. (Y).
c. F-Test (Simultaneous)
According to Ghozali, 2016 F-test basically shows whether all independent variables included in the model have a simultaneous effect on the dependent variable. So that this hypothesis uses the F-test with decision making criteria if the probability value is less than 0.05, then the HO is rejected in other words Ha is accepted, which means that all the independent variables together and significantly affect the dependent variable. Provide a comparison between the value of Fcount with Ftable. If the value of Fcount > Ftable, then HO is rejected and Ha is accepted.
Table 7.
Model Sum of
Squares
Df Mean
Square
F Sig.
1
Regression 173.827 2 86.913 97.559 .00b
Residual 86.415 97 0.891
Total 260.241 99
Dependent Variabel: Keputusan Pembelian Predictors: (Constant), Brand image, E-WOM
Based on table7. , the results of the F test calculation show that Fcount 97.559 is greater, Ftable 3.09 with a significant level of 0.000, smaller (α) 0.05, because the probability is less than 0.05, then Ha is accepted, meaning the brand image variable, and e- wom simultaneously has a significant effect on purchasing decisions for Indihome products and services. Thus the third hypothesis "brand image and e-wom have a significant simultaneous effect on purchasing decisions for Indihome products and services." It has been proven empirically.
3.2 Discussion
1) Influence of Brand Image on Indihome product and service purchasing decisions
The results of statistical calculations show that the value of tcount is 9.498 with Sig. 0.000 is smaller than 0.05 or with a significance level of less than 0.5 or 0.000 then H0 is rejected and Ha is accepted, indicating that brand image has a significant effect on purchasing decisions for Indihome products and services. In reality, brand image is able to provide a significant influence in improving purchasing decisions for Indihome products and services.
2) The influence of electronic word of mouth (E-WOM) on purchasing decisions of Indihome products and services
The results of statistical calculations show that the tcount is 1.495 with Sig. 0.138 is greater than 0.05 or with a significance level of less than 0.5 or 0.000 then H0 is rejected and Ha is accepted, indicating that e-wom has a significant effect on purchasing decisions for Indihome products and services. In reality, e- wom is able to provide a significant influence in improving purchasing decisions for Indihome products and services.
3) The influence of brand image and e-wom on purchasing decisions of Indihome products and services Testing the effect of independent variables simultaneously on the dependent variable is carried out using the F test. The results of statistical calculations show the value of Fcount 97.559 is greater than Ftable 3.09 with a significant level of 0.000 less than (α) 0.05 and the probability is less than 0.05 then Ha accepted. This means the hypothesis which states that the Brand Image and E-WOM variables simultaneously have a significant effect on purchasing decisions for Indihome products and services.
Based on the results of statistical tests, it can be clearly seen that simultaneously (simultaneously) all independent variables affect the dependent variable. In the independent variable test that jointly affects the dependent variable which is carried out using the F test. This shows that the hypothesis which states that the brand image and e-wom variables simultaneously have an influence on purchasing decisions for Indihome products or services.
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