The Impact of Entertainment, Interactivity, Trendiness, Customization, and  EWOM on Consumer’s Willingness to Pay a Premium Price for Samsung  Smartphones : Mediating Effects of Brand Awareness, Image, and Loyalty  through Instagram

Axel Nathan Gabriello; Sabrina O. Sihombing

Authors

Axel Nathan Gabriello Universitas Pelita Harapan
Sabrina O. Sihombing Universitas Pelita Harapan

Keywords:

Willingness To Pay Premium Price, Brand Loyalty , SMMA, Brand Awareness, Samsung Smartphones, Brand Image

Abstract

In this research, this study investigates the effect between SMMA and the willingness to pay a premium price for Samsung smartphones. With an emphasis on the mediating functions of brand awareness, brand image, and also brand loyalty. It particularly examines how these activities affect consumer behavior. Data was collected through a survey of 288 participants who own Samsung smartphones and are frequent Instagram users, using a quantitative methodology. To investigate further the use of structural equation modeling (SEM) was employed. The study show that brand awareness and brand image act as mediators between SMMA, brand loyalty, and willingness to pay a premium price. According to these results, social media content that is both personalized and engaging can improve brand perception, which in turn would cause to a rise in customer loyalty and a higher willingness to pay for high-end goods. This study gives marketers valuable information about on how to make use of social media activities in acts to improve pricing and brand value.

References

Ahmad, N., Salman, A., & Ashiq, R. (2019). The impact of social media on brand loyalty and willingness to pay a premium price: Evidence from Pakistani consumers. Journal of Management Sciences, 13(3), 232–245. https://doi.org/10.20547/jms.2014.1901303

Ahmad, N., Salman, A., & Ashiq, R. (2022). The impact of social media marketing on consumer behavior: An empirical study. Journal of Marketing and Consumer Research, 45, 123–135.

Ahmed, S., Akhtar, M. N., & Hussain, M. (2020). Exploring the impact of trendiness on consumer brand loyalty: A study in the fashion industry. Journal of Fashion Marketing and Management, 24(2), 305–320. https://doi.org/10.1108/JFMM-09-2019-0190

Ahn, J., Lee, C. K., & Back, K. J. (2020). Effects of brand personality and trendiness on brand loyalty: The moderating role of uncertainty avoidance. Journal of Hospitality and Tourism Research, 44(5), 764–784. https://doi.org/10.1177/1096348019887526

Aldousari, A. A., Iqbal, Z., Rana, S., & Khan, A. N. (2017). The impact of entertainment and social interaction on social media brand engagement. Journal of Retailing and Consumer Services, 38, 47–56. https://doi.org/10.1016/j.jretconser.2017.05.001

Ali, F., Kim, W. G., Li, J., & Jeon, H. M. (2021). Influence of brand image and customer satisfaction on loyalty: A study in the hospitality industry. Journal of Retailing and Consumer Services, 62, 56–84. https://doi.org/10.1016/j.jretconser.2021.102684

Anselmsson, J., Bondesson, N. V., & Johansson, U. (2014). Brand image and customers' willingness to pay a price premium for food brands. Journal of Product & Brand Management, 23(2), 90–102.

Arrigo, E. (2018). Pemasaran media sosial dalam merek mewah: Tinjauan sistematis. Journal of Business Research, 69(12), 5833–5841. https://doi.org/10.1016/j.jbusres.2018.06.034

Ayu, P. (2022). The effect of brand image on purchase decision mediated by lifestyle. Journal of Marketing Strategy, 12(3), 45–62.

Barkah, M. Y., Sibagariang, J. B., & Rahayu, F. (2024). Konsekuensi dari brand association dan brand awareness dalam aplikasi E-commerce. Jurnal Pendidikan Tambusai, 7(2), 1–11. https://jptam.org/index.php/jptam/article/view/6932

Bhatti, A., Akram, H., & Islam, T. (2021). The Impact of Competitive Pricing on Consumer Purchase Intentions in High-Tech Markets. Journal of Retailing and Consumer Services, 61, 10–36.

Borges, A., Meneses, R., & Palomino, P. (2020). Brand awareness and consumer behavior: An empirical analysis in the fashion industry. Journal of Business Research, 115, 520–530. https://doi.org/10.1016/j.jbusres.2020.01.004

Bougenvile, A., & Ruswanti, E. (2017). Brand equity on purchase intention consumers' willingness to pay premium price juice. IOSR Journal of Economics and Finance, 8(1), 12–18.

Chang, Y., Wang, X., & Chien, C. (2020). Personalized marketing: Understanding the role of customization in social media engagement. Journal of Interactive Marketing, 52, 33–46. https://doi.org/10.1016/j.intmar.2020.04.004

Chaudhuri, A., & Holbrook, M. B. (2021). The chain of effects from brand trust and brand affect to brand loyalty: The role of trust in marketing. Journal of Business Research, 129, 81–92. https://doi.org/10.1016/j.jbusres.2020.10.012

Chen, C. H., & Lin, Y. W. (2021). The mediating role of brand awareness in the relationship between eWOM and premium pricing strategies. Journal of Business Research, 124, 342–352. https://doi.org/10.1016/j.jbusres.2021.02.031

Chen, Y. M., Li, C. Y., & Lin, M. F. (2019). Understanding the impact of social media entertainment and engagement on consumer brand equity. Journal of Retailing and Consumer Services, 50, 336–345. https://doi.org/10.1016/j.jretconser.2018.07.006

Cheung, C. M., Lee, M. K., & Jin, X. (2020). Understanding the impact of electronic word-of-mouth on product sales: The moderating role of product category. Journal of Electronic Commerce Research, 21(1), 1–17. https://doi.org/10.1016/j.jbusres.2019.03.031

Chung, J. Y., Seo, Y., & Seock, Y. K. (2020). Consumers' willingness to pay a price premium for eco-friendly products. Journal of Fashion Marketing and Management, 24(2), 243–257. https://doi.org/10.1108/JFMM-09-2019-0205

Chung, S., Lee, C. H., & Kim, K. (2019). The effect of viral marketing and trendiness on consumer purchase decisions in the fashion industry. Journal of Retailing and Consumer Services, 51, 16–25. https://doi.org/10.1016/j.jretconser.2019.04.014

Deng, S., Hsu, C., & Li, Y. (2023). The role of brand awareness in enhancing brand loyalty and willingness to pay premium prices. Journal of Marketing Management, 39(1–2), 47–65. https://doi.org/10.1080/0267257X.2022.2044710

Dwivedi, Y. K. (2021). Measuring consumer engagement in the digital age. Journal of Marketing Management, 37(3–4), 261–279. https://doi.org/10.1080/0267257X.2021.1888275

Dwivedi, Y. K., Ismagilova, E., Hughes, D. L., Carlson, J., Filieri, R., Jacobson, J., & Wang, Y. (2020). Setting the future of digital and social media marketing research: Perspectives and research propositions. International Journal of Information Management, 55, 102–168.

Farzin, M., & Fattahi, M. (2018). Investigating the relationship between brand equity and consumers' willingness to pay a price premium. Journal of Retailing and Consumer Services, 44, 28–34. https://doi.org/10.1016/j.jretconser.2018.05.007

Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., Aiello, G., Donvito, R., & Singh, R. (2016). Social media marketing efforts of luxury brands: Influence on brand equity and consumer behavior. Journal of Business Research, 69(12), 5833–5841. https://doi.org/10.1016/j.jbusres.2016.04.181

Hermayanto, R. (2023). Effective marketing strategies in business: Trends and best practices in the digital age. Jurnal Administrare: Jurnal Pemikiran Ilmiah dan Pendidikan Administrasi Perkantoran, 10(1), 61–72. http://ojs.unm.ac.id/index.php/administrare/index

Hollebeek, L. D., Glynn, M. S., & Brodie, R. J. (2017). Consumer brand engagement in social media: Conceptualization, scale development, and validation. Journal of Interactive Marketing, 28(2), 149–165. https://doi.org/10.1016/j.intmar.2016.12.002

Hollebeek, L. D., Srivastava, R. K., & Chen, T. (2019). S-D logic–informed customer engagement: Integrative framework, revised fundamental propositions, and application to CRM. Journal of the Academy of Marketing Science, 47(1), 161–185. https://doi.org/10.1007/s11747-016-0494-5

Hyun, S. S., & Kim, W. (2011). Dimensions of brand equity in the chain restaurant industry. Cornell Hospitality Quarterly, 52(4), 429–437. https://doi.org/10.1177/1938965510397533

Ismagilova, E., Dwivedi, Y. K., Slade, E., & Williams, M. D. (2020). Electronic word of mouth (eWOM) in the marketing context: A state of the art analysis and future directions. Journal of Business Research, 113, 252–265. https://doi.org/10.1016/j.jbusres.2020.04.040

Ismail, A. R. (2021). The effect of perceived social media marketing activities on brand loyalty. Asia Pacific Journal of Marketing and Logistics, 33(1), 317–339. https://doi.org/10.1108/APJML-05-2019-0262

Jelita, A. P., & Roostika, R. (2024). Social media marketing pada perusahaan oleh-oleh lokal di Yogyakarta: Studi kasus pada Instagram Bakpia Mandiri 214. Al-Kharaj: Journal of Islamic Economic and Business, 6(6), 5126–5136. https://doi.org/10.47467/alkharaj.v6i6.2332

Jiang, Y., Hu, Y., & Lee, Y. (2021). The impact of brand personality on brand attachment and brand loyalty: The mediating role of brand love. Journal of Business Research, 129, 291–300. https://doi.org/10.1016/j.jbusres.2021.01.025

Keller, K. L. (2020). Strategic brand management: Building, measuring, and managing brand equity. Pearson Education. https://doi.org/10.1016/j.jbusres.2020.04.030

Khairani, N., Hasan, M., & Ramadhani, F. (2023). The mediating role of brand awareness in the relationship between entertainment and brand loyalty in social media marketing. Journal of Marketing Research, 15(3), 45–58. https://jptam.org/index.php/jptam/article/view/8703/7102

Khan, I., Rahman, Z., & Qureshi, M. I. (2023). The impact of brand image on brand loyalty and consumers’ willingness to pay premium prices. Journal of Consumer Marketing, 40(1), 25–35. https://doi.org/10.1108/JCM-07-2022-0410

Kholifah, N. N., Satriyono, G., & Pangastuti, R. L. (2024). Pengaruh sosial media marketing dan brand awareness terhadap purchase intention: Studi kasus pada Es Teh Indonesia Kebun Nganjuk. Jurnal Riset dan Inovasi Akuntansi, 2(2), 180–187. https://doi.org/10.55903/juria.v2i2.77

Kim, A. J., & Ko, E. (2020). Impacts of luxury fashion brand’s social media marketing on customer relationship and purchase intention. Journal of Global Fashion Marketing, 11(1), 40–53. https://doi.org/10.1080/20932685.2019.1708786

Kumar, J., Salo, J., & Jaakkola, M. (2021). The impact of customer engagement on brand trust, loyalty, and word of mouth in social media. Journal of Business Research, 137, 79–92. https://doi.org/10.1016/j.jbusres.2021.08.044

Kumar, V., & Sethi, A. (2022). Brand image and brand loyalty: The moderating role of willingness to pay a premium price. Journal of Brand Management, 29(4), 380–393. https://doi.org/10.1057/s41262-021-00302-2

Kumar, V., & Shah, D. (2022). Expanding the role of loyalty in marketing: The future of customer loyalty programs. Journal of Retailing, 97(4), 489–504. https://doi.org/10.1016/j.jretai.2021.04.003

Lin, X., Featherman, M., Brooks, S. L., & Hajli, N. (2019). Exploring gender differences in online consumer purchase decision making: An online product presentation perspective. Information Systems Frontiers, 21(5), 1187–1201. https://doi.org/10.1007/s10796-018-9831-1

Liu, Y., & Mattila, A. S. (2017). An examination of the customization paradox in the luxury hotel industry. Journal of Business Research, 79, 197–204. https://doi.org/10.1016/j.jbusres.2017.03.017

Malarvizhi, C. (2022). Modelling the significance of social media marketing activities, brand equity, and loyalty to predict consumers’ willingness to pay a premium price for portable tech gadgets. Heliyon, 8(8), 1–13. https://doi.org/10.1016/j.heliyon.2022.e10145

Muniz, J., Casais, B., & Ponte, E. B. (2021). Building brand awareness and brand loyalty through digital influencers in social media marketing. Journal of Retailing and Consumer Services, 62, 10–16. https://doi.org/10.1016/j.jretconser.2021.102606

Naqvi, M. H., Jiang, Y., & Naqvi, S. M. H. (2020). The role of social media entertainment in brand engagement and brand loyalty: The moderating role of perceived brand differentiation. Journal of Research in Interactive Marketing, 14(3), 299–319. https://doi.org/10.1108/JRIM-07-2019-0104

Nurhadi, M., Salsabillah, A. S., Suryani, T., & Fauzi, A. A. (2024). Peran social media marketing activities dalam membangun brand equity dengan mediasi brand trust, brand image, brand awareness pada produk SOMETHINC di Indonesia. Jurnal Ekonomi dan Bisnis, 14(1), 241– 256. https://doi.org/10.24929/feb.v14i1.2948

Purba, D. F., & Jahja, A. S. (2024). The influence of social media marketing strategy on purchase intention with the mediating variables of brand image and brand awareness on types of travel insurance products in Indonesia. Finance and Journal Social Research, 3(5), 1097–1124. https://doi.org/10.55927/fjsr.v3i5.9317

Purwianti, L., & Fionna, L. (2023). Fast fashion, social media marketing activity, and brand loyalty: The mediating role of brand awareness, brand trust, and brand love. Jurnal Manajemen Strategi dan Aplikasi Bisnis, 6(2), 373–384. https://doi.org/10.36407/jmsab.v6i2.1105

Riani, G. N., & Gayatri, G. (2023). Turning fans into lovers: Content strategy for brand’s social media pages to build stronger relationships. Jurnal Akuntansi, Manajemen dan Sistem Informasi, 4(3), 157–171. https://e-journal.trisakti.ac.id/index.php/jasa/article/view/15729

Rosario, A. B., de Valck, K., & Sotgiu, F. (2020). The role of review valence and volume in the success of electronic word of mouth: A meta-analysis. Journal of Marketing Research, 57(4), 557–578. https://doi.org/10.1177/0022243720946104

Smith, A. N., Fischer, E., & Yongjian, C. (2019). The personalization paradox: The effects of customization and personalization on consumer trust and brand loyalty. Journal of Retailing and Consumer Services, 50, 275–286. https://doi.org/10.1016/j.jretconser.2018.12.004

Syahputra, A. D., Wulandari, F., & Putri, A. D. (2023). The influence of interactivity and social media marketing on brand loyalty mediated by brand awareness. International Journal of Economics, Management, and Social Science, 1(2), 59–72. https://doi.org/10.55927/ijems.v1i2.3779

Utami, H. M., & Sugiat, M. A. (2024). Pengaruh social media marketing activities terhadap purchase intention dengan brand image, brand awareness, brand equity sebagai variabel intervening pada produk skincare Avoskin. Jurnal Manajemen dan Kewirausahaan, 3(1), 6–11. https://www.journal.stieamkop.ac.id/index.php/seiko/article/view/3743/2425

Wang, J., Zhang, J., & Zhao, X. (2022). Brand awareness, brand loyalty, and willingness to pay a premium price: Evidence from the fashion industry. Journal of Retailing and Consumer Services, 68, 10–31. https://doi.org/10.1016/j.jretconser.2022.102951

Zahrah, N., Ruzain, M. F., Sengorou, J. A., & Mat Salleh, N. S. (2024). The impact of user-generated content and electronic word-of-mouth on consumer purchase intention: Consumer engagement as a mediator. International Journal of Academic Research in Business and Social Sciences, 14(7), 2159–2174. http://dx.doi.org/10.6007/IJARBSS/v14-i7/21981

Zhang, Y., Zheng, Y., & Lin, Z. (2020). The role of perceived value in pricing premium products: A consumer perspective. Journal of Business Research, 117, 429–439.