The Role of Digital Marketing and Product Quality on Consumer ... - IJAIR

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The Role of Digital Marketing and Product Quality on Consumer Buying Interest in Online Stores

Kasmad ¹

1 Universitas Pamulang Tanggerang Selatan

1 dosen00559@unpam.ac.id

* corresponding author

I. Introduction

In this digital era, increasingly fierce competition and rapid technological developments require companies to be able to keep up with developments that occur.According to [1]; [2]; [3]Companies that are unable to keep up with the flow of technology will be left behind compared to others. This will greatly affect the development and sustainability of the business. Therefore, companies must always be ready with strategies that can help them in creating consumer buying interest in their products. According to [6]; [8] Buying interest can be interpreted as a consumer's desire to make a purchase of a product. Consumer buying interest plays an important role in ensuring the company can compete, because without buying interest from consumers, the products produced by the company will not provide income for the company's activities. According to [9];[10] As the main key in maintaining business, consumers must be made more interested in the company's products than competitors' products, so that their purchasing power will be devoted to the company's products.

Interest in the company's products can be obtained in various ways, one of which is by doing marketing, especially digital marketing

According to [1]; [8] Digital marketing is the marketing of company products that is carried out with digital media that will be more easily accessible to potential consumers. This marketing provides an opportunity for companies and potential customers to introduce and get to know their products more effectively. This is because access to information related to the product in question can be accessed from anywhere as long as there is an internet connection. Digital-based marketing can also cover a larger market area so that the possibility of interest from the product will be greater. Apart from doing digital marketing, companies must ensure the quality of the products they sell are of good quality. According to [6]; [8] Product quality can be interpreted as the product's ability to show durability and also its ability as a tool to meet consumer needs. Poor quality will reduce consumer interest in buying the product in question so that it will bring losses to the company. According to [1];

ARTICLE INFO A B S T R A C T

Article history:

Received 03 May 2022 Revised 26 July 2022 Accepted 08 Sept 2022

The purpose of this study is to analyze the influence of Digital Marketing on consumer buying interest in the Online Store and analyze the effect of product quality on consumer buying interest in the Online Store. This research is an associative quantitative research which is used to determine the effect of digital marketing and product quality on consumer buying interest. The research chose an online store in Jakarta as the research location. Respondents as many as 280 online store consumers who were selected by accidental sampling or the sample was chosen by chance at the location and was considered suitable as a data source. The online questionnaire is distributed through social media and in the questionnaire there will be five score options for each statement that can be chosen according to the actual situation felt by the respondent. The data will be processed and used to test the hypotheses that have been proposed using structural equation modeling analysis with the SmartPLS 4.0 software data processing tool. The conclusions of this study are (1) digital marketing has a positive and partially significant effect on online store consumer buying interest, (2) product quality partially positive and significant effect on online store consumer buying interest, and (3) digital marketing and product quality simultaneous positive and significant effect on online store consumer buying interest.

Keywords:

Digital Marketing;

Product Quality;

Purchase Interest;

Consumers;

Online Store

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[6]; [8] Online Store is a store that promotes their products through social media, namely by implementing digital marketing and always paying attention to the quality of the products they sell.

Based on observations and interviews, it is known that the company has not used digital-based marketing optimally. This is shown by the lack of incessant promotions on various digital platforms that can be done to encourage increased sales. Apart from interviews, it was found that sales from 2018-2020 experienced unstable fluctuations. Although the company guarantees that the quality of the products provided is the best, the reviews given by previous consumers are still not able to convince other consumers to buy products from the company. According to [1]; [8] Consumer interest in buying products will be the key to future business development. So the company must always be able to see all opportunities that can help in increasing consumer interest in buying the company's products. Digital-based marketing provides great efficiency for marketers to introduce their products to consumers and must be balanced with displaying good product quality.

II. Methods

This research is an associative quantitative research which is used to determine the effect of digital marketing and product quality on consumer buying interest. The research chose an online store in Jakarta as the research location. Respondents as many as 280 online store consumers who were selected by accidental sampling or the sample was chosen by chance at the location and was considered suitable as a data source. The online questionnaire is distributed through social media and in the questionnaire there will be five score options for each statement that can be chosen according to the actual situation felt by the respondent. The data will be processed and used to test the hypotheses that have been proposed using structural analysis equation modeling with the SmartPLS 4.0 software data processing tool.

The hypothesis of this research is

H1 : There is a positive and significant influence of Digital marketing on buying interest in the Online Store

H2 : There is a positive and significant influence on product quality, there is buying interest in the Online Store

The independent variable indicator Digital marketing was developed from [14] and the independent variable indicator of product quality was developed from [11] and the dependent variable indicator of interest buy was developed from [11].

Figure 1 Research Model

III. Result and Discussion

Reliability instrument test uses two measurements which are Cronbach’s Aplha and Composite Reliability where it is expected to have a value above 0.70 (>0.70) for it to be reliable. The convergent validity test that is showed by the final value of the Cronbach’s Alpha and Composite Reliability shows reliable values which exceeds 0.70 (>0.70), the final result of the preliminary instrument testing shows reliable values as shown below.

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Table 1 Reliability Test Results

Cronbach's Alpha Composite Reliability Category (>0.7)

Digital Marketing 0.831 0.912 Reliable

Quality Product 0.812 0.912 Reliable

Buying Interest 0.913 0.923 Reliable

With the results from the reliability and validity testing of the data in this research, a structural model evaluation will be implemented in order to test the variables relationship in this research. This structural model evaluation will conclude the coefficient of determination, t-statistics.

Figure 2 Validity and Reliability Test A. Coefficient of Determination (R²)

The table below shows the result of the coefficient of determination (R²):

Table 2 Coefficient of Determination Test Results

Variable R² Radj²

Buying Interest 0.601 0.600

As seen on the table above, it is stated that the variable Buying Interest has a R² value of 0.601 and a Radj² of 0.600which means that Buying Interest can be explained by the other variables by 60.1% whereas the rest 39.9% are influenced by other variables which are not being studied in this research.

B. Hypothesis Testing

As discussed earlier in chapter two, this research includes 4 hypotheses which the following are the result of the hypotheses testing:

Table 3 Path Coefficient T-

statistics

P- values

Hypotheses Results Analysis Results Digital Marketing

Buying Interest

4.974 0.000 Has a positive effect and significant influence

H0:

Rejected H1:

Accepted

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Product Quality Buying Interest

3.698 0.000 Has a positive effect and significant influence

H0:

Rejected H2:

Accepted

H1: The Digital Marketing has an effect on Buying Interest

As shown on the table above, hypothesis 1 (H1) has a value of 4.974 for the t-statistics which is higher than the t-table value. This means that the Digital Marketing have a significant effect on Buying Interest

H2: Product Quality has an effect on Buying Interest

As shown on the table above, hypothesis 2 (H2) has a value of 3.698 for the t-statistics which is higher than the t-table value. This means that Product Qiality have a significant effect on Buying Interest

Figure 3 Hypotheses Test

Digital Marketing has a positive and significant effect partially on Consumer Buying Interest in online stores. Digital marketing has a positive and significant effect on consumer buying interest, meaning that if there is an increase in digital marketing, it will also increase consumer buying interest.

This can be proven by 1 = 0.223 and the value of tcount = 4.348 > ttable = 1.998, so that H0 is rejected and H1 is accepted.According to Alwan et al. (2022); Dastane (2020) found that positively and significantly, digital marketing can help increase consumer buying interest.

Product quality has a positive and significant effect partially on consumer buying interest in online stores. Product quality has a positive and significant effect on consumer buying interest, meaning that if there is an increase in product quality, it will also increase consumer buying interest. This can be proven by 2 = 0.272 and the value of tcount = 3,462 > ttable = 1,998, so H0 is rejected and H2 is accepted.According to [1]; [6]; [8] found that product quality can increase consumer buying interest in a positive and significant way.

Digital Marketing and Product Quality have a positive and significant effect simultaneously on Consumer Buying Interest in online stores. This means that if there is an increase in digital marketing together with product quality, it will increase consumer buying interest. It can be proven that Fcount

= 45,757 > Ftable = 3,14 so that H0 is rejected and H3 is accepted.According to [1]; [2];[3]; [4];

[5];[6]; [8] found that digital marketing and product quality have a positive and significant influence on increasing consumer buying interest.

Benefits of Digital Marketing a. Increase sales Utilization of digital media for advertising can increase sales of products or services. The reach of consumers and a broad target market will make

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consumers through digital media will make consumers closer to you. Provide the best service so that consumers are sure to buy the products or services that you provide. Consumers usually like sellers who provide fast responses and friendly service. So that it can bring up new consumers and loyal customers. c. Increase revenue The main goal of doing business is to earn revenue, profits and customer loyalty. With the development of the network of consumers owned, the income also increases. Increased income can also encourage increased profits for the business

Here are some of the advantages of using digital marketing, namely: a. Cost and time efficiency:

compared to traditional marketing which has to distribute brochures and others, digital marketing has a relatively low cost and gains a much larger market reach without having to waste a lot of time doing promotions in person (offline). 20 b. Interactive: online users can choose when to start marketing, with whom, where and for how long is not limited by time. c. Opportunity for wider market penetration and reach. So there is a lot of opportunity for SMEs. d. Interesting content: digital marketing offers a lot of interesting, practical and unlimited content. e. Easy to measure: digital technology enables measurement. So, business owners can find out how far the content created can have an impact on sales. f. Unlimited audiences: unlimited visits on online platforms created by business owners. For example visits to the web, social media and other accounts

IV. Conclusion

The conclusions of this study are (1) digital marketing has a positive and partially significant effect on consumer buying interest, (2) product quality has a positive and partially significant effect on consumer buying interest, and (3) digital marketing and product quality have a positive and significant effect. simultaneously on consumer buying interest. The advice given based on the results of the research is promotion through social media and making flyers, optimizing replying to messengers from Facebook or direct massage on Instagram, as well as strengthening the products sold must have high product durability. The use of digital marketing and social media has increased in recent times due to rapid developments in technology. Social media provides a new method of communication to connect consumers and businesses. Social media is becoming a useful method for enterprise Marketers. Social media is defined as a group of Internet-based applications built on technologies that enable the creation and exchange of content generated over the Internet. Many marketers have used social media in their marketing programs. Marketers who leverage social media. Facebook and instagram are the most popular social media platforms among marketers and customers. Marketers use social media to offer information on the latest products, services and innovations. There are many advantages if marketers use social media as their marketing strategy, including easy to measure their market reach, competitors and business growth. Therefore, it is important for a marketer to know and understand the right strategy to be applied to his company.

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