Purpose - The purpose of this study is to examine the influences of social media marketing activities on purchase intention through perceived value and trust in Airline industry.
Design/methodology/approach - This study uses a quantitative approach to examine the proposed hypotheses. The questionnaires were distributed to 303 respondents who are Indonesian consumers. Causal research design is used to indicate the cause-and-effect relationship between construct. This study uses data collection to gather the data.
Findings – Trust is identified as the most influential variable towards purchase intention. It also appears to fully mediate the relationship between Social Media Marketing activities (Entertainment, Interaction, and Word-of-Mouth) and Purchase Intention. On the other hand, Perceived Value partially mediates the relationship between Social Media Marketing activities and Purchase Intention.
Practical Implications – This study yields several practical directions to airline industry managers. In the case of managerial implication, this study reports that utilizing social media marketing activities to increase the advantageous purchase intention of the consumers is a good decision, but airline companies should also put under their consideration that it can only be effective if they increase consumers’ trust toward them and also enhancing the degree of their value that will be perceived by the consumers. When consumers having a quality and an impactful interaction with airline companies on social media, as time goes by their trust and the way they perceive the value given by the company will be increased and that will lead them to purchase the airline’s services and product.
Originality/Value - There is a limited number of studies that have observed the mediating role of perceived value and trust in the influence of social media marketing activities toward consumers’ purchasing intention. New marketing communication style gives new opportunities and challenges for companies as purchase intentions are progressively impacted by social media activities. When making a purchasing decision, people depend on their social networks more than ever. This study provides more details about crucial factors that influence Indonesian consumers to purchase Airline Companies’ products and services.
Research Limitations - This study is limited to only Indonesian consumers. Secondly, the representativeness of data will also be the limitation of this study. The Indonesian market is very huge both geographically and demographically, it is hard to have very varied and huge samples that completely represent the population.