The Influence of Brand Ambassador, Endorsement and Social Media on Consumers’ Buying Interest on The Shopee E-
Commerce Platform
Belinda Patricia Suhendro1, I Nyoman Suprastha1, Dewi Kurniawati1*
1 Business and Economics Faculty, Pancasila University, Jakarta, Indonesia
.
*Corresponding Author: [email protected]
Accepted: 15 March 2023 | Published: 31 March 2023
DOI:https://doi.org/10.55057/ijbtm.2023.5.1.30
___________________________________________________________________________
Abstract: The purpose of this study was to determine the effect of Brand Ambassadors, Endorsements and Social Media on Consumer buying Interest on the Shopee E-Commerce Platform. The research sample used 100 respondents who are active users of the Shopee E- Commerce platform in Depok using primary data sources derived from filling out questionnaires and secondary data obtained from previous research, journals, the internet and books. Data analysis used the PLS (Partial Least Square) analysis technique through the SmartPLS software. The results of this study indicate that Brand Ambassadors, Endorsements and Social Media have a positive and significant effect on consumer buying interest on the Shopee E-Commerce platform.
Keywords: Brand Ambassador, Endorsement, Social Media and consumer buying interest ___________________________________________________________________________
1. Introduction
E-Commerce is a transaction process carried out by buyers and sellers in buying and selling various products electronically from companies to other companies using computers as intermediaries for business transactions carried out (Loudon, 1998). According to Kalakota and Whinston (1997) E-commerce is an online shopping activity using the internet network and the way transactions are through digital money transfers. E-Commerce provides convenience for selling and buying products and information through internet services and other online facilities. Shopee is a commercial e-commerce site headquartered in Singapore owned by Sea Limited (formerly known as Garena), which was founded in 2009 by Forrest Li. Shopee first launched in Singapore in 2015, and has since expanded its reach to Malaysia, Thailand, Taiwan, Indonesia, Vietnam and the Philippines. Starting in 2019, Shopee has also been active in Brazil, making it the first country in South America and outside Asia that Shopee has visited. Shopee itself is led by Chris Feng, a former Rocket Internet employee who has led Zalora and Lazada. Shopee launched for the first time as a consumer to consumer (C2C) marketplace. But now they have switched to a hybrid model of C2C and business to consumer (B2C) since launching Shopee Mall which is an online shop platform for well-known brands.
At the end of January 2021, We Are Social and Hootsuite released digital data for 2021 which contains statistics on internet and social media usage globally and also per country.
Globally, in January 2021, there were 5.22 billion mobile phone users in the world, with the
number of world internet users reaching 4.66 billion, an increase of around 316 million or 7.3% from last year's users. Meanwhile, active social media users around the world have reached 4.2 billion, or an increase of 490 million users in the last 1 year. Based on statistical data for 2021, the number of internet users in Indonesia in January 2021 was recorded at 202.6 million, an increase of 27 million users (16%) in the last 1 year. 170 million of them are social media users, which means an increase of 10 million users in 1 year. There are interesting things related to internet usage statistics in Indonesia. It is noted that internet users in Indonesia spend an average of 8 hours 52 minutes every day, accessing the internet from various devices they have. Meanwhile, to access social media, this +62 netizen spends an average of 3 hours 14 minutes per day, this is longer than the average Indonesian watching TV, which is "only" 2 hours 50 minutes per day. So based on the quote above, the writer can conclude that social media plays an important role as a factor in growing consumer buying interest in today's era because the average generation Z and even millennials spend part of their time accessing the internet. There are three applications from the Facebook group ranked 1 to 3, in applications that are widely used throughout 2020, that is WhatsApp, Facebook and Instagram. The marketplace applications Shopee and Tokopedia are also included in the top 10 applications most used by Indonesians.
According to Philip Kotler and Kevin Lane Keller (2016) - Social media is a medium used by consumers to share text, images, sound, and video information with other people and companies. The development of online marketing as a business tool is increasingly modern.
The various ways to promote goods and services online are very diverse, such as on social media platforms, those are Instagram, Tiktok, Youtube, Facebook, Twitter, etc. In addition, social media now also provides wider promotional opportunities to sell various kinds of goods and services. According to Philip Kotler and Kevin Lane Keller (2007: 312), stated that social media influences consumer buying interest. One of the most valuable electronic tools for sales representatives is the company website, and one of the most useful applications of →Social Media is as a prospecting tool.
Research conducted by Marwani and Asep Maulana (2021) shows that social media has a positive and significant effect on buying intention. The companies under study must be able to interact online with consumers, by promoting their products on social media and developing creative ways to expand reach, increase consumer confidence by continuously improving product quality to gain the trust of consumers. It is also possible that there are several problems that arise from the existence of social media as a company forum for marketing. As in previous research by Mashur Razak et al., (2021), explaining that the test results obtained mean that social media content has a positive but not significant effect onbuying intention on the GoFood application in Makassar City, meaning that the content displayed by GoFood on social media does not directly attract consumers to make purchase or use services from GoFood. In the use of social media, many marketers still pay less attention to the content used.
According to Terence A.Shimp (2007), an endorser is an advertisement supporter or also known as an advertisement star who supports the product to be advertised. Words like endorse or endorsement will usually be used frequently in connection with the promotion of a product or service. Endorsement has an influence on consumer buying interest. This is reinforced in the theory contained in the book Marketing Management by Philip Kotler and Kevin Lane Keller (2007) which states that salespeople are now telling the "stories" of these products to buyers, following the AIDA formula to get attention, maintain interest (interest), generate desire (desire), and produce action (action). In previous research by Novia (2021)
the results of his research showed that celebrity endorsements have a positive and significant influence on buying interest, thus good or bad buying interest in consumers Tokopedia is explained by celebrity endorsers giving directly to buying intention, which means that the correlation of celebrity endorsement variables has a positive effect on buying interest variable.
Meanwhile, it doesn't always have a positive impact. There are several differences in preferences, tastes and also consumer assumptions regarding products that lead to differences in buying interest. Marketing efforts consist of product, price, promotion and distributor (Schiffman & Kanuk, 2010). As is the case in research conducted by Gayatri Hutami Putri &
Bhina Patria (2018) which stated that celebrity endorsements had a negative and significant effect on buying intention in young women as indicated by the different test results of buying interest scores in the experimental group and the control group which had no significant difference significant. This is influenced by several factors that cause celebrity endorsements not to be the dominant factor in influencing buying interest in young women. Because at this time people tend to behave dynamically and also trends that continue to grow, companies need to find ways to grow the value and a good image in the eyes of society. For this reason, a company must always innovate in using various marketing efforts to increase brand awareness that they have. This is not only to increase sales, but to build a long-term relationship with all of their customers. One of the efforts to build brand awareness is by using a Brand Ambassador or also known as a brand ambassador.
The same research conducted by Mardhiani and Wardhana (2018) based on the results, Brand Ambassadors are included in the good category which shows that Brand Ambassadors have a positive and significant effect on Interest in Buying Bandung Kunafe Cake. This shows that consumers generally welcome the brand ambassador concept carried out by the Bandung Kunafe Cake company. The highest score for the statement item attached is the figure of the Bandung Kunafe Cake Brand Ambassador who is able to increase the buying intensity of the Bandung Kunafe Cake product, where the popularity of the Brand Ambassador will greatly influence the company's buying interest. In contrast to research conducted by Kusumawardani (2021). Stated that the brand ambassador variable partially had a negative and significant effect on buying intention, Korean Boyband as brand ambassadors partially had no positive and significant effect on buying intention of Mediheal sheet mask products.
There are still some members of the public or respondents in previous research who stated that the use of brand ambassadors or Brand Amassadors is not very important to attract their interest in buying a product. For a group of people who do not like and are not interested in the artist, the use of the brand ambassador talent is less effective.
Laroche and Zhol (in Riyas & Herath, 2016) define buying intention as an individual's intention to buy a product from a brand that has been selected after carrying out certain evaluations. Although buying intention is not the same as actual buying, measurement of buying intention is generally used to maximize predictions of the actual buying itself (Kinnear & Taylor, 1996). Based on the description of the background that has been described above, the purpose of the research is to determine the effect of brand ambassadors, endorsements, and social media on consumer buying interest on the Shopee e-commerce platform. This research related to the background can be formulated the following problems, Does Brand Ambassador affect Consumer buying Interest on the Shopee e-commerce platform, Does Endorsement affect Consumer buying Interest on the Shopee e-commerce platform, Does Social Media affect Consumer buying Interest on the Shopee e-commerce
platform, and whether Brand Ambassadors, Endorsements and Social Media affect Consumerbuying Interest on the Shopee E-Commerce platform.
2. Literature Review
2.1 Brand Ambassador
According to Shimp in Rennyta Yusiana and Rifaatul Maulida (2015), a Brand Ambassador is a person who supports a brand from various popular public figures, apart from the popular public, they can also be supported by ordinary people and are more commonly referred to as ordinary endorsers. Meanwhile, according to Gita and Setyorini (2016), Brand Ambassadors are cultural or identity icons, where they act as a marketing tool that represents the achievement of human glory individualism as well as the commodification and commercialization of a product. According to Lea Greenwood (2012), the benefits of brand ambassadors include: 1) Press coverage, Brand ambassadors play a role in putting pressure on so that they can shape the image of a brand in the eyes of consumers, 2) Changing perceptions of the brand, Brand ambassadors can change perceptions of a brand, by using an effective brand ambassador it can support the image and perception of a brand, 3) Attracting new customers, For companies, brand ambassadors play a very important role in attracting consumers to use their products. For this reason, compatibility is needed in selecting brand ambassadors with target consumers, and 4) Freshening up an existing campaign, sometimes consumers pay less attention or forget the slogans or campaigns carried by a company, with a brand ambassador, consumers will more easily remember the company's campaigns.
2.2 Endorsement
Endorsement is a way to promote the products of an online store by working with people who have a lot of followers on Instagram (Brand Endorser). These people are artists, politicians, or ordinary people who have many followers. Brand Endorser is a supporting figure in marketing communications. The selected Brand Endorser must be able to align itself with the image of the product it carries. In this case the use of brand endorsers is also one of the factors to increase consumer purchasing power (Soesatyo and Julivan, 2013). Endorsement or commonly also called endorse, has the meaning of providing support from public figures. In the business world, endorsement is a technique for promoting properly and efficiently. Lots of companies use the services of an artist or public figure to carry out this endorse promotion.
By doing so, the product will be better known in the community and by itself and be able to increase sales. Usually, it is the number of followers of public figures on social media that will determine how much they are paid. According to Schiffman and Kanuk (2010), celebrity appeals are used very effectively by advertisers to communicate with their markets.
Celebrities can be an influential force in generating interest or action related to purchasing or using goods. - selected goods and services. The identification is based on admiration (of an athlete), aspirations (of a celebrity or of a lifestyle), empathy (of a person or situation), or on recognition (of a real person or imitation of something).
2.3 Social Media
Caleb T. Carr and Rebecca A. Hayes (2015) – Social media is Internet-based media that allows users the opportunity to interact and present themselves, either immediately or delayed, with a wide audience or not that drives the value of user-generated content and perceptions interaction with other people Meanwhile according to Michael Cross (2013) - Social media is a term that describes a variety of technologies used to tie people into a collaboration, exchange information, and interact through web-based message content.
Because the internet is always developing, the various technologies and features available to
users are always changing. This makes social media more of a hypernym than a specific reference to various uses or designs.
2.4 Consumer Buying Interest
According to Kotler and Keller (2009), buying Intention is consumer behavior that arises in response to objects that indicate a person's desire to make a buying. Meanwhile, according to Sciffman and Kanuk (2007), buying interest is a model of a person's attitude towards goods objects which is very suitable in measuring attitudes towards certain product groups, services or brands. Buying intention is a desire that arises in consumers towards a product as a result of a process of observing and learning consumers about a product. Consumers who have an interest in buying a product show attention and interest in the product which is then followed by realization in the form of buying behavior.
2.4 Hypothesis
Figure 1: Theoretical Framework
Based on the formulation of the problem and the framework of thought, the hypothesis can be described as follows:
H1: There is a positive influence between Brand Ambassadors on Consumer Buying Interest on the Shopee e-commerce platform.
H2: There is a positive influence between endorsements on consumer buying interest on the Shopee e-commerce platform.
H3: There is a positive influence between social media on Consumer buying Interest on the Shopee e-commerce platform.
H4: There is a positive influence between Brand Ambassadors, Endorsements and social media on Consumer Buying Interests on the Shopee e-commerce platform.
Based on the formulation of the problem and the framework of thought, the hypothesis can be described as follows:
H1: There is a positive influence between Brand Ambassadors on Consumer Buying Interest on the Shopee e-commerce platform.
H2: There is a positive influence between endorsements on consumer buying interest on the Shopee e-commerce platform
H3: There is a positive influence between Social Media on Consumer buying Interest on the Shopee e-commerce platform
H4: There is a positive influence between Brand Ambassadors, Endorsements and Social Media on Consumer Buying Interests on the Shopee e-commerce platform
3.Methodology
The research used by researchers is descriptive method with quantitative methods.
Quantitative descriptive research is research that collects data to test hypotheses or answer questions about the final status of research subjects (Kuncoro, 2003). The population in this study is all social media users and e-commerce Shopee. The sample in this study are Shopee marketplace users who often access the platform to find the products they need, especially people who are influenced by endorsements or brand ambassadors and also social media.
Because the population size was unknown, the sampling used the formula from Rao Purba (1996) to obtain a sample size of 96.04 and then rounded up to 100 respondents.
In this study, the data analysis technique used the structural inquiry modeling (SEM) analysis technique using Partial Least Square (PLS) statistical software. With the measurement model that is; variant extract block, to see the relationship between indicators and latent constructs by calculating the total variance consisting of general, specific and error variances. The advantage of PLS analysis in the analytical method is not based on many assumptions, the data does not have to be multivariate normal distribution, it can be used in the same model, the sample does not have to be large. The research consists of exogenous (independent) variables, those are Brand Ambassador (X1), Endorsement (X2), and Social Media (X3) to the dependent variable (endogenous variable), Consumer buying Interest (Y).
4. Result and Discussion
Result
In this study, the validity test used the convergent validity and discriminant validity methods with the help of Smart PLS. Before further analyzing the data, the first step is to test the quality of the instrument, that the validity test and the reliability test. Based on the data in Figure 2, it can be seen that each research variable indicator has an outer loading value of >
0.7. Which means there are no variable indicators with an outer loading value below 0.6 so that all indicators are said to be valid. Based on the criteria obtained starting from the Brand Ambassador indicator, from X1.1 to X1.4.2, Endorsement indicators, X2.1 to X2.4.2, Social Media indicators, X3.1 to X3.5.2 and Consumer buying Interest indicators, Y1.1 to Y1.8 declared valid.
Based on the data in table 1, it can be seen that the Cronbach's alpha value of each research variable is > 0.7. The results of the cronbach's alpha Brand Ambassador variable is 0.897, the Endorsement variable is 0.914, the Social Media variable is 0.910 and the Consumer buying Interest variable is 0.910. Thus these results can indicate that each research variable has met the requirements for Cronbach's alpha value, so it can be concluded that all variables have a high level of reliability.
Figure 2: The result of Convergent Validity Test
Table 1: The result of Cronbach Alpha Test Construct Realibility and Validity
The bootstrapping results on outer loading which can be concluded that there is a significant influence between the Brand Ambassador variable and Consumer buying Interest because the Prob value is 0.014 <0.051) and the tscore > ttable (2.459 > 1.98498). So that there is influence between the Brand Ambassador variable and Consumer buying Interest, or in other words Ho is rejected and Ha is accepted. There is also a significant influence between the Endorsement variable and Consumer buying Interest because the Prob value is 0.000 <0.05 and the tscore > ttable (4.398 > 1.98498). So that there is an influence between the Endorsement variable and Consumer buying Interest, or in other words H0 is rejected and Ha is accepted. And there is a significant influence between Social Media variables and Consumer buying Interest because the Prob value is 0.013 <0.05 and tscore > ttable (2.488 >
1.98498). So that there is influence between the Social Media variable and Consumer buying Interest, or in other words Ho is rejected and Ha is accepted.
Discussion
After doing an exact analysis of the sub description research results, these are the calculations that will be used as a basis for discussion in this study.
i. The influence of brand ambassadors on Consumer Buying Interests of Shopee E- Commerce Users
Based on the test results, the results show that the Brand Ambassador variable has a positive and significant influence on the Buying Interest of Shopee E-Commerce User Consumers.
This is reinforced by the average value of the Brand Ambassador variable which has a magnitude of 3.55 which is included in the high category. Then, the findings in the descriptive research on the Brand Ambassador variable found that the majority of respondents had the intention or tendency to choose a Brand Ambassador orientation which represented a brand. This condition explains the positive influence of Brand Ambassadors on consumer buying interest.
The results of this study are in line with the research of Sarah et.al (2018) based on research results, Brand Ambassadors are included in the good category which shows that Brand Ambassadors have a positive and significant effect on Interest in Buying Bandung Kunafe Cake. This shows that consumers generally welcome the Brand Ambassador concept implemented by the company as a whole. The Bandung Kunafe Cake Brand Ambassador is able to increase the purchase intensity of the product, where the popularity of the Brand Ambassador will greatly influence the company's buying interest. The results of this study are not in line with Kusumawardani's research (2021). Stated that the brand ambassador variable partially had a negative and significant effect on the intention to buy Mediheal sheet mask products. There are still some people or respondents in the study who said that the use of brand ambassadors or Brand Ambassadors is not very important to attract their buying interest in a product.
ii. The Effect of Endorsement on Consumer buying Interest in Shopee E-Commerce Users
Based on the test results, the results show that the Endorsement variable has a positive and significant influence on the Buying Interest of Shopee E-Commerce Consumer Users. This is reinforced by the average value of the Endorsement variable which has a magnitude of 3.41 which is included in the high category. Then, the findings in the descriptive research on the Endorsement variable found that most respondents thought that the Endorsement was an effective way for them to easily obtain product information, product descriptions and so on which would increase their buying interest, especially at E-Commerce Shopee. This condition explains the positive influence of Endorsement on consumer buying interest.
The results of this study are in line with Novia's research (2021) whose research results show that celebrity endorsers have a positive and significant influence on buying intention, thus whether good or bad purchase interest in Tokopedia consumers is explained by celebrity endorsements giving directly to purchase intention, which means, correlation the celebrity endorse variable has a positive effect on the buying interest variable. The results of this study are not in line with Putri & Patria's research (2018) which states that celebrity endorsements have a negative and significant effect on buying interest in young women as indicated by the results of different test scores of buying interest in the experimental group and the control group which did not have a significant difference. This is influenced by several factors that cause celebrity endorsements not to be the dominant factor in influencing buying interest in young women.
iii. The Influence of Social Media on Consumer buying Interest in Shopee E-Commerce Users
Based on the test results, the results show that the Social Media variable has a positive and significant influence on the Buying Interest of Shopee E-Commerce Consumer Users. This is reinforced by the average value of the Social Media variable which has a magnitude of 3.59 which is included in the high category. Then, the findings in the descriptive research on Social Media variables found that most respondents felt they had wider access to product references through interesting content on Social Media. Interactions that occur between sellers and potential customers and potential customers with each other will also affect their buying interest in a product. This condition explains the positive influence of social media on consumer buying interest.
The results of this study are in line with the research of Marwani and Maulana (2021) showing that social media has a positive and significant effect on buying intention. The companies under study must be able to interact online with consumers, by promoting their products on social media and developing creative ways to expand reach, increase consumer confidence by continuously improving product quality to gain the trust of consumers. The results of this study are not in line with the research of Razak et al., 2021, explaining that the test results obtained mean that social media content has a positive but not significant effect on buying interest in the GoFood application in Makassar City, meaning that the content displayed by GoFood in social media does not directly attract consumers to make buyings or use services from GoFood. In the use of social media, many marketers still pay less attention to the content used.
iv. The Influence of Brand Ambassadors, Endorsements and Social Media on Consumer Buying Interests in Shopee E-Commerce Users
Based on the test results, the results show that the Brand Ambassador, Endorsement and Social Media variables have a positive and significant influence on the Buying Interest of Consumers of Shopee E-Commerce Users. This is reinforced by the average value of the Social Media variable which has a magnitude of 3.51 which is included in the high category.
Then, the findings in the descriptive research on Brand Ambassador, Endorsement and Social Media variables found that most respondents felt Brand Ambassadors, Endorsements and Social Media had an important role in influencing their buying interest in a product especially on the Shopee E-Commerce platform. This condition explains the positive influence of Brand Ambassadors, Endorsements and Social Media on consumer buying interest.
5. Conclusion and Suggestion
Conclusion
Based on the results of the analysis and discussion that has been carried out in this study, the researchers draw conclusions regarding the Brand Ambassador, Endorsement and Social Media variables on Consumer buying Interest in Shopee E-Commerce users that Brand Ambassadors have a positive and significant influence on Consumer buying Intentions of E- User Commerce Shopee in the city of Depok, West Java. So it can be concluded that there are implications that Brand Ambassadors can influence Consumer buying Interest. Endorsement has a positive and significant influence on Consumer buying Interest of Shopee E-Commerce Users in the city of Depok, West Java. So it can be concluded that there are implications that endorsements can affect consumer buying interest. Social Media has a positive and significant influence on Consumer Buying Interests of Shopee E-Commerce Users in the city
of Depok, West Java. So it can be concluded that there are implications that Social Media can influence Consumer buying Interest. Brand Ambassadors, Endorsements and Social Media have a positive and significant influence on Consumer buying Interests of Shopee E- Commerce Users in Depok city, West Java. So it can be concluded that there are implications that Brand Ambassadors, Endorsements and Social Media can affect Consumer buying Interest.
Suggestion
Based on the conclusions above, the researcher provides suggestions that can be used as references and material for consideration so that in the future it can be even better. As for the suggestions that the author can give based on the results of the research, that a Brand Ambassador or someone who represents a company's brand must have many criteria that meet in order to increase consumer buying interest. In this study, the results of the loading factor on the Brand Ambassador variable (X1) show that all indicators meet convergent validity. However, there is an indicator with the smallest value, which shows that the professional preference and background of the Brand Ambassador is not an important thing for society. Thus, companies do not need to worry too much about the profession and background of the Brand Ambassador to represent their brand
Endorsement is a marketing strategy to increase consumer buying interest. In this study, the results of the loading factor on the Endorsement variable (X2) show that all indicators meet convergent validity. However, there is an indicator with the smallest value, which shows that the product description or information about the product by the Endorser is not the main thing for potential customers to increase their buying interest. Prospective customers need more encouragement (support) from endorsers to convince them to make a buying. Evidence of use or testimonials from endorsements is also needed by consumers more than just describing product information. Therefore, this can be taken into consideration for the company in determining the Endorsement strategy.
Social Media is a digital platform that facilitates its users to communicate with each other or share content in the form of writing, photos, videos. In this study, the results of the loading factor on the Social Media variable (X3) show that all indicators meet convergent validity.
However, there is an indicator with the smallest value, which shows that the trend that is currently being discussed on Social Media is less able to foster buying interest in potential consumers. There are other things that people get more from Social Media such as the ease of obtaining information, interactions that occur between sellers and prospective buyers, or fellow prospective buyers, and so on. This can be taken into consideration for companies to manage their Social Media.
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