the influence of social media marketing and celebrity

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ENDORSER ON INSTAGRAM TOWARDS PURCHASE INTENTION A CASE STUDY OF INSTAGRAM FOLLOWERS RESTAURANT DAPUR

ASIX

By

Nadea Imanuela Antou 11603069

BACHELOR’S DEGREE in

BUSINESS ADMINISTRATION STUDY PROGRAM- HOTEL AND TOURISM MANAGEMENT CONCENTRATION

FACULTY OF BUSINESS AND COMMUNUCATION

SWISS GERMAN UNIVERSITY The Prominence Tower

Jalan Jalur Sutera Barat No. 15, Alam Sutra Tangerang, Banten 15143 - Indonesia

July 2020

Revision after Thesis Defense on 15^th July 2020

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Nadea Imanuela Antou

STATEMENT BY THE AUTHOR

I hereby declare that this submission is my own work and to the best of my knowledge,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.

_____________________________________________

Student Date

Approved by:

Dra. Hasniati Halim, M.M

_____________________________________________

Thesis Advisor Date

Dr. Nila K. Hidayat, S.E,M.M

_____________________________________________

Dean Date

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ABSTRACT

THE INFLUENCE OF SOCIAL MEDIA MARKETING AND CELEBRITY ENDOSER TOWARDS PURCHASE INTENTION: A CASE STUDY OF

RESTAURANT DAPUR ASIX

By

Nadea Imanuela Antou Dra.Hasniati Halim, MM, Advisor

SWISS GERMAN UNIVERSITY Sutera West No. 15, Alam Sutera

The development of culinary industry, especially in Indonesia, are currently growing rapidly, if it is perceived from the number of restaurants and cafes that have growth into more than 1,000. Nowadays, many food businesses have sprung up and used social media accounts to advertise their products, so the competition in the food business has become tighter. In addition, various kinds of food menu provide us with wider selection of list of food to consume. This study aims to determine the influence of social media marketing and celebrity endorsers towards customers’ purchase intention in Restaurants Dapur ASIX . This study applies quantitative research method. This research is a descriptive verification (causal) study, using multiple linear regression models. Data collection was carried out through the distribution of a set of questionnaires to 100 respondents. Data processing techniques are done by descriptive analysis, classical assumption test, and hypothesis testing. The findings of the study proved that Social Media Marketing and Celebrity Endorser on Instagram influence customers' purchase intention.

Keywords: Social Media Marketing, Celebrity Endoser, Purchase intention

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DEDICATION

I dedicate this thesis to my beloved parents for the never-ending support and encouragement in pursuing my bachelor degree.

I would also like to dedicate to whoever needs the content of this thesis. This thesis is dedicated to you who currently read this sentence. Kindly please use it for

proper purposes. I hope this will assist you in further research and development.

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ACKNOWLEDGEMENTS

1. To the Almighty God for His blessings, grace, and strength to get through even the toughest times.

2. To my advisor, Mrs. Hasniati Halim, M.M., I would like to thank you for advising me, providing motivation, and willingly and also be passion with me regarding my thesis work.

3. To my beloved parents and also my big family for the unwavering moral, emotional, and financial support that has shaped me intothe person I am today.

4. To my head department Sir Robert La Areand also Miss Munawroh for sharing expertise, advice, and encouragement while im study in SGU.

5. To my great friends FidjriaLubana, Fatimah Khoirol, Surya Mataram, Lidya lie, Della, and Karen janesia and my mante squad for spreading your positive vibes and motivation during the struggle to complete this study.

See you all on top!

6. To HTM Batch 2016 and SGU lecturers for the experience this past four years of study that has taught me valuable life lessons.

7. To everyone else who directly or indirectly lent a hand throughout the whole process.

“Commit to the Lord whatever you do, and He will establish your plans.” – Proverbs 16:3

Nadea Antou

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TABLE OF CONTENTS

STATEMENT BY THE AUTHOR ... 3

ABSTRACT ... 4

DEDICATION ... 6

ACKNOWLEDGEMENTS ... 7

TABLE OF CONTENTS ... 8

LIST OF TABLES ... 11

LIST OF FIGURES ... 12

CHAPTER I - INTRODUCTION ... 13

1.1 Background ... 13

1.1.1 Social Media Trend in Indonesia ... 14

1.1.2 The Use of Social Media in Businesses ... 15

1.1.3 The Use of Celebrity Endorser in Businesses ... 17

1.1.5 Restaurant Dapur ASIX Applies Social Media and Celebrity Endorser ... 20

1.2 Research Problems... 21

1.3 Research Questions ... 21

1.4 Research Objectives ... 21

1.5 Scope and limitation ... 21

1.6 Significance of Study ... 22

CHAPTER II – LITERATURE REVIEW ... 23

2.1 Framework Thinking ... 23

2.2 Marketing mix ... 24

2.6.1 Promotion Mix ... 24

2.3 Digital Marketing ... 26

2.4 Social Media ... 26

2.4.1 Social Media Characteristics ... 27

2.5 Instagram ... 28

2.5.1 Instagram Content ... 29

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2.6 Social Media Marketing ... 31

2.6.1 The Purpose of Social Media Marketing ... 32

2.6.2 Social Media Marketing Factors ... 33

2.7 Celebrity Endorsement ... 34

2.7.1 Dimensions of Celebrity Endorsement ... 36

2.7.2 Celebrity Endorsement Indicator ... 38

2.8 Purchase Intention ... 38

2.8.1 Dimensions of Purchase Intention ... 39

2.9 Previous Study ... 39

2.10 Research Model ... 43

2.11 Hypothesis ... 43

CHAPTER III – RESEARCH METHODS ... 44

1. ... 44

3.1 Research Process ... 44

3.2 Question Design ... 45

3.3 Type of study ... 47

3.4 Types of Data ... 47

3.5 Population and Sampling ... 48

3.5.1 Population ... 48

3.5.2 Sample Size ... 49

3.5.3 Data Analysis ... 50

Data analysis using the SPSS version 25 program. To test the validity and reliability required pre-test and post-test. ... 50

3.6 Validity Test ... 50

3.7 RegressionAnalysis ... 51

CHAPTER IV – RESULTS AND DISCUSSION ... 52

4.1 Company Background ... 52

4.4 Validity and Reliability Post Test Result ... 58

4.7 Classical Assumption Test ... 60

4.7.1 Normality Test ... 60

4.7.2 Heteroscedasticity Test... 61

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4.7.3 Multicollinearity Test ... 62

4.8 Multiple Linear Regression Test ... 63

4.8.1 Multiple Regression Test Variable Social Media and Celebrity Endorsement on Purchase Intention ... 63

4.9 Hypothesis Test ... 64

4.9.1 Parsial Test (TestT) ... 64

4.9.2 Correlation Te st ... 65

CHAPTER V ... 68

5.3 Managerial Implications Based on the Conclusions of the Findings of the Study that have been Described ... 69

5.1 Future Research ... 69

REFERENCES ... 71

GLOSSARY ... 80

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LIST OF TABLES

Table 1.1 Industry in Indonesia………. 19

Table 1.2 Restaurant Celebrity……….. 20

Table 2.1 Previous Studies Matrix……… 44

Table 3.1 Question Design……… 48

Table 3.2 Cronbach’s Alpha Reliability Test……… 52

Table 4.1 Pre- Test Social Media Marketing……… 55

Table 4.2 Pre-test Celebrity Endoser……… 56

Table 4.3 Pre-test Purchase Intention……….. 56

Table 4.4 Validity and Reliability Post-test Social Madia Marketing……….. 61

Table 4.5 Validity and Reliability Post-test Celebrity Endorser………... 62

Table 4.6 Validity Reliability Post Test Purchase Intention………. 62

Table 4.7 Normality Test……….. 63

Table 4.8 Heteroscedasticity Test………. 64

Table 4.9 Multicollinearity Test……… 65

Table 4.10 Multiple Linear Regression………. 66

Table 4.11 T- Test………. 67

Table 4.13 Correlation Indicator Social Media Marketing………... 68

Table 4.14 Correlation Indicator Celebrity Endorser……… 69

Table 4.15 Determination Test……….. 69

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LIST OF FIGURES

Figure 1.1 Indonesia Digital and Internet user ……….….. 11

Figure 1.2 Most active social media platform………..………. 12

Figure 1.3 The use of Social Media as a tool to promotion……….………. 16

Figure 1.4 Restaurant Celebrity………...………. 16

Figure 1.5 Personal Instagram of Restaurant Dapur ASIX……….. 17

Figure 1.6 Personal Instagram of Restaurant Dapur ASIX………... 18

Figure 2.1 Research Model…...………... 39

Figure 3.1 Process of the research……….……… 41

Figure 3.2 Personal Instagram of Restaurant Dapur ASIX……….. 45

Figure 4.2 Respondents’ Gender………... 52

Figure 4.3 Respondents’ Age………... 52

Figure 4.4 Respondents’ Occupation………... 53

Figure 4.5 Respondents’ Eating outside frequenc………. 53

Figure 4.6 Respondents’ Cost Expend……….……… 54