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2022
SOCIAL MEDIA AND ENGAGEMENT STRATEGIES TO INCREASE BRAND
EQUITY AND PURCHASE INTENTION OF RED FUTURE NETWORK
ENTERPRISE
LIM SEOW YING, THOO AI CHIN
Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru
*Corresponding author: [email protected]
Abstract
Telecommunication has become an essential component of the modern lifestyle and significantly impacts economic development. However, the Covid-19
pandemic has shattered every industry in Malaysia, including the telecommunication industry. Many firms have transformed into an online business model
because many industries are not allowed to operate during Movement Control Order (MCO). As a result, social media marketing is increased significantly
for every business. However, one of the telecommunication service providers which is Red Future Network Enterprise faces problems such as no active social
media presence, sales from walk-in customers, and low sales due to MCO and Covid-19 pandemic. Social media marketing significantly increases online
social interaction, brand equity, and customer purchase intention. As such, this study aims to identify the relationship between social media marketing efforts,
consumers’ engagement with brand-related social media content, brand equity, and purchase intention of telecommunication services provided by Red Future
Network Enterprise. A quantitative method was used to distribute the online survey to respondents using purposive sampling technique. The target population
was the individuals who liked and followed any of a telecommunication brand on social media platforms. The sample size for this study was 209. Statistical
Package for the Social Sciences (SPSS) software was used for data analysis. The findings found that there are positive and significant relationships between
the social media marketing efforts, consumers’ engagement with brand-related social media content, brand equity, and purchase intention of the
telecommunication service. The findings of this study were used for the intervention of Red Future Network Enterprise by creating a Facebook page and
updating the engaging social media posts and contents frequently to enhance its online presence and engagement with the consumers. Finally, the Facebook
page of Red Future Network Enterprise successfully increased the brand equity and purchase intention of Red Future Network Enterprise with customers'
enquiries. In conclusion, this study can contribute to the telecommunication industry such as telecommunication service providers by offering them better
insight on implemented social media marketing efforts and consumers’ engagement with brand-related social media content that can enhance their brand
equity and purchase intention.
Keywords: Telecommunication, Brand equity, Purchase intention, Consumers’ engagement with brand-related social media content, Social media marketing
efforts
1.0 INTRODUCTION
In recent years, the Malaysian telecommunication industry has experienced a tremendous expansion and is predicted to achieve huge
expansion throughout the projection period until 2025 (Global Monitor, 2020). For example, cable companies, internet service providers,
satellite companies, and phone companies are formed of the telecommunications industry. Besides, long-distance communication is also
described as telecommunications (Corporate Finance Institute, 2020). Telecommunication is a crucial component of the modern lifestyle and
significantly impacts economic development (Sharif, 2017). The origin of the industry can be traced to postal courier services (Corporate
Finance Institute, 2020). The telecoms sector has developed from providing voice services to broadband data services (Chouhan et al., 2021).
However, as seen in other countries, only a small number of businesses offer services in the sector with an oligopoly market structure. In
addition, the operators' services are different in terms of pricing and service quality (Chouhan et al., 2021).
In Malaysia, innovation is the primary cause of sustainable development, and rapid growth has been primarily dependent on the
telecommunication sector. According to Hajar et al. (2018), telecommunications companies improve their performance and achieve
profitable growth by delivering a wide range of highly innovative products and services. For instance, the development of modern
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telecommunications technology (e.g., Code Division Multiple Access (CDMA) and Long Term Evolution (LTE)) with high speed of data
transmission and bandwidth has led to the new income streams such as Value Added Services (VAS) (Hajar et al., 2020).
According to the Malaysian Communications and Multimedia Commission (MCMC) (2020), the market capitalization of the
communications and multimedia (C&M) industry was RM137.74 billion in June 2020, which contributed 8.7% of the market capitalization
of Bursa Malaysia, RM1.58 trillion. Based on the monthly announcement published on the Malaysian Communications and Multimedia
Commission (MCMC) website in June 2020, the telecoms industry contributed RM130.25 billion, the broadcasting industry contributed
RM4.75 billion, and the postal and courier segment contributed RM2.74 billion to the RM137.74 billion market capitalization of C&M
industry. Maxis Sdn. Bhd. and Digi Telecommunications Sdn. Bhd. lead the telecommunication sector with 2.66% and 2.12% of the
RM137.74 billion market capitalization of the communications and multimedia industry, respectively (Malaysian Communications and
Multimedia Commission, 2020).
In Malaysia, the largest telecommunications company, Digi, has gained a vast number of social media followers by producing content
that can be relevant to Malaysians (Nadira, 2020). Digi’s social media strategies are worth exploring because they achieved their popularity
on social media, with 103,000 Instagram followers and 2,397,202 likes on their Facebook page. Besides, Maxis Sdn. Bhd., a Malaysian
telecommunications operator, has gained 54,100 Instagram followers and 1,288,796 likes on their Facebook page. Now, Maxis Sdn Bhd is
also one of the most well-known Malaysian telecommunication companies on social media. The utilization of social media marketing and
consumer-generated content in building their brand equity are two reasons that explain the company’s social media presence is high (Nadira,
2020). Therefore, it is proven that social media marketing is significant to increase online social interaction, brand equity, and customer
purchase intention.
Communication methods must be adjusted to benefit from new technology and tools to engage customers in both commercial and
consumer sectors. Using content generated by companies or consumers, social media has developed into a new practical tool for interacting
with customers online (Schivinski et al., 2016). Consumers’ lives and interactions with companies are increasingly dependent on social
media platforms like Facebook, Instagram, Twitter, and YouTube. Many e-commerce businesses utilize Facebook and Instagram to sell
effectively and provide extensive information to potential customers. Social networking is beneficial throughout the whole sales process.
This is due to the importance of innovation in social media marketing activities. It favours customers’ participation in the service creation
process and fosters a more profound interaction among its customers (Valentina et al., 2015). Another factor to influence purchase intention
is brand equity. From the consumer’s perspective, brand equity is established via connections with the brand (Khamitov et al., 2019). Perera
et al. (2019) and Dissabandara (2020) previously showed that purchase intention is highly impacted by brand equity.
There are many telecommunication retailers under Digi Telecommunications Sdn. Bhd., Maxis Sdn. Bhd., Celcom Axiata Berhad, and
other service providers. For instance, Red Future Network Enterprise is one of the telecommunication companies and a representative of
redONE that provides bill payments for redONE network services. The company was established by Lim Yew Two on 15th June 2019 and
is the premier shop concept store of redONE, located in busy market centers and offers full services, including recruiting and training sales
advisors of redONE. As a Mobile Virtual Network Operator (MVNO), Red Future Network Enterprise provides redONE mobile postpaid
and prepaid plans such as redONE Simcard and redONE data plan by leveraging Celcom’s fast and reliable 5-star network equipment Axiata
at an affordable price and good services. Besides, the company is also selling smartphones and phone accessories to customers. However,
due to the COVID-19 pandemic and business sustainability, Red Future Network Enterprise faces problems such as low sales volume.
Therefore, to boost sales, one of the methods is to enhance their consumers’ purchase intention and brand equity via social media marketing
and brand-related content.
1.1 DESCRIPTION OF CASE AND PROBLEM STATEMENT
The COVID-19 wave has shattered every industry. Since the telecommunications industry is the foundation of communications
infrastructure that enables medical, government, and private-sector enterprises to work smoothly, the telecommunications industry has
been dramatically affected (Weissberger, 2020). Malaysian telecommunications firms were also not exempted from this circumstance
(Kanapathipillai & Azam, 2020). During the period of Movement Control Order (MCO) in 2020, the demand for telecommunication services
was increased (Malaysian Communications and Multimedia Commission (MCMC), 2020). Due to the high demand for telecommunication
services, Putrajaya had launched a program that provided 1GB of free internet data per day for telecommunications customers over a certain
period (Malaysian Communications and Multimedia Commission (MCMC), 2020).
However, this had caused the Malaysia’s mobile data revenue to drop to 11.7% in both the customer and corporate sectors in 2020 due
to the continued promotion and free 1GB daily internet (Rahuman & Teng, 2020). This is because the free 1GB daily internet data promotion
program had caused consumers to decrease their purchase for telecommunication services. Besides, since MCO, people must stay at home
rather than went out. Also, the recovery MCO had constrained the people’s movement (Rahuman & Teng, 2020). As a result, most customers
preferred to use their home WiFi and did not use their postpaid internet data plan. The reason is that they wanted to reduce their mobile
internet connection demand and cut costs during the economic downturn. Thus, this constraint had impacted the telecommunication
companies’ future income over a long time and caused a low purchase intention for telecommunication services (Rahuman & Teng, 2020).
In addition, during the MCO, the revenue of redONE was declining since they were not allowed to operate the business. At the same
time, they also needed to provide 1GB of internet-free data every day for their customers during the Covid-19 pandemic (Yunus, 2020). As
a result, the sales of Red Future Network Enterprise, the premier shop concept store of redONE, dropped in March 2020. Therefore, to
survive during the Covid-19 pandemic, Red Future Network Enterprise started to use social media to increase sales, such as creating a
Facebook page for online business purposes since the social media platform has steadily grown in prominence during the crisis.
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According to Simon (2021), since January 2021, Malaysia had 28 million social media users. Malaysia’s social media users were
increased by 7.7% or 2.0 million from 2020 to 2021. Moreover, Malaysia’s social media users had reached 86% of the total population of
Malaysia in January 2021. As a result, it could offer companies the chance to develop the next level of customer engagement. Then, the
effect of unique capabilities is derived from broach reach and customization choices, rich advertising alternatives, innovative commercial
platforms, and substantial measurement and insights (Arthur, 2020). In addition, businesses can leverage the advantages of social media
marketing because of its low cost, rapid, extensive transmission of information, high intensity of customer engagement, and highly efficient
public relations management (Zhou et al., 2017).
Nevertheless, Red Future Network Enterprise had no active social media presence, which walk-in customers only. Therefore, to enhance
their online visibility, customers’ purchase intention, and sales, social media engagement had become a vital element of any marketing
strategy. This is because most customers expected the interaction to get better customer support. Social media posts with more active and
thoughtful interactions would attract more customers. According to Chin et al. (2015), user attitude consistently influences Facebook users’
purchase intention. For instance, users’ perceptions and ideas about the information they receive via social media will shape their affective
attitudes (Lee & Hong, 2016). On the other hand, the brand equity of an online business can also positively impact customers’ purchase
intention. According to Schivinski and Dabrowski (2016), online purchase intention from social media communication that generated by
both users and companies is significantly influenced by brand equity. This means Red Future Network Enterprise could use social media
marketing to boost its brand equity and increase consumer purchase intention.
In sum, social media engagement strategy is vital for Red Future Network Enterprise to attract more customers and increase their purchase
intention from brand awareness to brand equity. Therefore, this study examined the factors that impact brand equity and consumers’ purchase
intention towards telecommunication services. Further, the study used the findings to implement several social media marketing efforts to
increase the brand equity and customers’ purchase intention of telecommunication services provided by Red Future Network Enterprise.
1.2 RESEARCH QUESTIONS
Based on the problem statement, the following three research questions can be derived:
RQ1: What enhances brand equity and customers’ purchase intention of telecommunication services?
RQ2: What are the social media marketing efforts to enhance the brand equity and customers’ purchase intention of telecommunication
services provided by Red Future Network Enterprise?
RQ3: Are the implemented social media marketing efforts able to enhance the brand equity and customers’ purchase intention of
telecommunication services provided by Red Future Network Enterprise?
1.3 RESEARCH OBJECTIVES
There are three research objectives in this study as below:
RO1: To identify the factors that enhance the brand equity and customers’ purchase intention of telecommunication services.
RO2: To design social media marketing efforts to enhance the brand equity and customers’ purchase intention of telecommunication
services provided by Red Future Network Enterprise.
RO3: To examine the effectiveness of the implemented social media marketing efforts to enhance the brand equity and customers’
purchase intention of telecommunication services provided by Red Future Network Enterprise.
2.0 LITERATURE REVIEW
2.1 PURCHASE INTENTION
“Purchase intention refers to the connection between consumer’s needs, attitude, and perception of the product or brand will possibly
influence a consumer to buy certain product” (Beneke et al., 2016, p. 6). The prospect of buyers who intend to buy an item is described as
purchase intention (Dehghani & Tumer, 2015). According to Ariffin et al. (2018), purchase intention is referred to the desire of a consumer
to purchase a specific product. In other ways, purchase intention is described as the strongness of a consumer’s willingness to buy (Lee et
al., 2017). Due to the consumer’s actions are generally determined by their intentions, it is critical to identify a customer’s purchase intention
(Hsu et al., 2017). A client’s willingness to buy a specific product or service in the future is referred to as buying intention (Gomez-Suarez
et al., 2016; Usman & Okafor, 2019), which can be enhanced by marketing strategies (Watanabe et al., 2020). Purchase intention is also
known as the intersection of a customer’s desire to acquire a product and the possibility of buying (Wu et al., 2015). The mental stage in
deciding when the consumers have expressed interest and willingness to act on a product or brand is referred to as purchase intention (Garg
& Joshi, 2018). Likewise, purchase intention is also defined as a consumers’ intention to buy products (Nurcahyo & Hudrasyah, 2017).
Modern businesses increasingly consider social media as promising platforms for conducting promotional activities and effectively
communicating with their target clients (Kohli et al., 2015; Gao and Feng, 2016; Popp & Woratschek, 2016; Harrigan et al., 2017). Purchase
intention is used to evaluate a customer’s behavioral influence because of the company’s social media marketing activities, the
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individual proclivity of the consumer to engage, and the influence on his or her involvement with brand material on social media (Mishra,
2019). Consumer perceptions under peers or social media users regarding the product or service will influence purchase intention (Binwani
& Ho, 2019). People search for relevant information based on their personal experiences and the external surroundings while purchasing
products. For instance, after consumers collect a certain amount of information, they will begin to examine, consider, and compare, eventually
leading to purchasing behaviour (Chen & Lin, 2019). Besides, consumers may directly communicate and share their purchasing experiences
with other consumers through social media. It can help them feel more secure in their purchase decisions (Aji et al., 2020).
Furthermore, consumers’ perceptions of brand equity are influenced by online reviews, which, in turn, influence their purchase intention
(Hayes & Carr, 2015). Purchase intention is a psychological factor which considered to be caused by high levels of brand equity. Besides,
consumers are more inclined to buy with a known brand and a high level of brand equity, which indicates purchase intention. The intent of
buying is linked to the actual act of deciding (Park & Kim, 2016; Shin, 2015). According to Binwani and Ho (2019), consumers are more
willing to repurchase or embrace new items if they successfully build their brand equity. The role of brand equity in customers’ buying
decisions has been examined over a long time. These studies concluded that customers who purchase a product would depend on the
functional values or the quality of the products, the value of the brand, and the product’s symbolic significance (Aji et al., 2020).
Purchase intention is the primary goal for marketing relationships, and it has a direct impact on purchasing decisions and company
performance. Because the commercial buying decision is linked with social interactions, some studies have shown that the salesperson’s
social capital, such as personal relationships or social connections, may have a social impact on buying intention (Kuei & Thao, 2019; Lee
et al., 2018). According to Jonsson et al. (2019), purchase intention drives the consumers’ purchase decisions. Purchase intention significantly
impacts purchase decisions (Takhire & Joorshari, 2015). For example, a case study of Lazada e-commerce was conducted. The findings
show that online purchase intention has a substantial and significant influence on the actual decision to make an online purchase (Puspitasari
et al., 2018).
Positive brand engagement will encourage consumers to buy items or services if they have a positive purchase intention (Martins et al.,
2018). Farah (2017) has indicated that intention refers to the possibility of performing a given action. Like Kahraman and Kazançoğlu (2019),
consumers’ purchase intentions represent the likelihood that the consumers will carry out the purchasing action. Meanwhile, Hajli et al.
(2017) have demonstrated that consumer buying intentions represent as a predictable action, which implies that buying intentions may be
used to estimate what products customers should buy for the next time they go shopping (Hajli et al., 2017). Therefore, this study aims to
examine the impact of social media marketing efforts, consumers’ engagement with brand-related social media content, and brand equity on
consumers’ purchase intention of telecommunication services.
2.2 SOCIAL MEDIA MARKETING EFFORTS
Social media refers to apps, including Facebook, Instagram, YouTube, WhatsApp, and Twitter, and it is recognized as one of the most
effective communication platforms for brand information. These apps significantly influence consumer buying and selling behaviours
(Kapoor et al., 2018). This is because its interactive features enable participatory, collaborative, and knowledge-sharing activities (Knoll,
2016; Kusumasondjaja, 2018; Valos et al., 2017). Moreover, social media have a more remarkable ability to reach the community compared
to traditional platforms such as print, television, and radio (Bowen, 2015). Given the potential of social media marketing, developing
consumer-brand connections in a social-media context has become a significant issue for businesses (Ismail, 2017; Liu et al., 2019; Prasad
et al., 2017).
“An interdisciplinary and cross-functional idea of leveraging social media (typically combined with other channels of communication)
to reach organizational objectives through producing profit for stakeholders” is described as social media marketing (Felix et al., 2017). In
recent research, social media has been demonstrated to impact a brand’s reputation. Therefore, current businesses and brands must emphasize
social media marketing activities more to interact with customers. The previous marketing literature has identified five components of social
media marketing efforts that must be considered, which are entertainment, interaction, trendiness, customization, and word-of-mouth (Godey
et al., 2016; Tuten & Solomon, 2017; Seo & Park, 2018).
In fact, Algharabat (2017) has claimed that entertainment is the most important aspect of social media marketing activities. This is
because consumers can enjoy their experience on social media by participating in entertainment such as gaming, sharing videos, and contests,
which encourages them to participate in brand communities on social media (Ashley & Tuten, 2015). Consumer intimacy with a brand can
be developed through entertainment, which results in enhanced purchase intention (Dessart et al., 2015). Next, social media interaction can
be described as sharing and exchanging ideas among social media users (Godey et al., 2016). Apart from that, consumers usually look at
social media platforms that provide with most up-to-date information about their brands. This is because they believe that this information
is more trustworthy than firm-sponsored marketing communications (Seo & Park, 2018).
According to Godey et al. (2016), trendiness is defined as the transmission of the most up-to-date and relevant information on a
specific product or company. Consumers are more likely to seek information from different social media platforms to acquire the info. It is
because they believe this info is a more reliable source than the information of corporate-sponsored through traditional promotional efforts
(Manthiou et al., 2016). Next, the extent to which social media platforms deliver customized service and personalized information search is
known as social media customization (Godey et al., 2016). It means that a company can often target a specific audience through personalized
social media communications. The extent to which social media users share information and post content on social media is referred to as
electronic word-of-mouth (eWOM) in the context of social media (Godey et al., 2016).
Besides, social media networks enrich customers’ daily lives by expanding social circles and adjusting the interaction’s frequency and
duration (Luo & Zhong, 2015). The widespread use of social media has altered the way people share experiences and connect with companies
(Lamberton & Stephen, 2016), allowing people to co-create value (Kao et al., 2016), such as through electronic word-of-mouth.
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For example, consumers could get many suggestions about products and brands through the information on Internet, but they had no idea
how reliable the information was. However, according to Erkan & Evans (2016), the only reliable predictor of the information’s reliability
is the number of similar comments on the Internet. With the development of social media platforms, people began to communicate using
their names. Although electronic word-of-mouth continues to exist among anonymous individuals via online comments, social media has
given a new and pioneering viewpoint by allowing electronic word-of-mouth to exist among people who already know one another.
Stokburger-Sauer et al. (2012) and Torres et al. (2017) revealed that brand social advantages lead to recognition of consumer-brand, and
social media marketing activities can impact the extent to which consumers believe that their interactions with a company could establish
social connections. In addition, social media marketing efforts also enhance customers’ sense of the brand’s reflection on the inner self of
the consumers (Algharabat, 2017). Therefore, the purpose of this study is to identify the influence of social media marketing on the purchase
intention of telecommunication services.
2.3 CONSUMERS’ ENGAGEMENT WITH BRAND-RELATED SOCIAL MEDIA CONTENT
Engagement is key to social media phenomena (Baldus et al., 2015; Keller, 2016), and it is an important research topic (Maslowska et
al., 2016; Unal et al., 2017). Engagement can be broadly defined as “the interaction between individuals and the media” (Khan, 2017, p.
237). Consumers’ engagement with brand-related social media content (also known as social media engagement) is a metric that evaluates
a user’s interaction with brand-related information on social media instead of just simply interaction with the company. Furthermore, instead
of measuring engagement as a cognitive, affective, and behavioural construct, it examines engagement as a behavioural construct (Schivinski
et al., 2016).
Marketers may determine consumers’ social media interaction by using social media engagement. Schivinski et al. (2016) have described
consumers’ online brand-related activities as “a collection of online actions on the consumer’s part that are linked to a brand, and which vary
in the degrees of interaction and participation with the consumption, contribution and creation of media content” (p. 5). Consumption,
contribution, and creation are part of a three-dimensional framework for social media engagement. These elements have included a
consumer’s brand-related actions at all degrees of involvement, from low to high.
The passive enjoyment of published content without engagement is known as content consumption, such as accessing links, watching,
viewing photos, and reading. This level of brand-related activity represents the lowest level of consumer involvement on social media
(Mishra, 2019). Consumption occurs at the minimum level when the consumers view, watch, or read brand-related materials without actively
contributing or creating user-generated content (Schivinski et al., 2019).
User contribution is a multi-party interaction extending beyond traditional organizational and consumer relationships (Shawky et al.,
2020). It requires taking an active role in participating with existing content, such as liking or commenting on a post (Schivinski et al., 2016).
Due to its interactive nature, the consumer’s contribution to online brand-related activities has become more popular over time among
academicians and practitioners (Schivinski et al., 2016). Thus, consumer contributions are those consumers who “like” or “share” the content
related to the brand on social media. Meanwhile, creation is the most engaging use because it consists of posting the content created by the
user and related to the brand. Consumer-created content may stimulate other consumers to consume and contribute to social media platforms
(Schivinski et al., 2016). For example, when individuals share an image of their favourite brand on social media, they will represent a group
of consumers who builds that brand.
In conclusion, an example of engagement behaviors of consumption is viewing videos of a particular brand on YouTube channels. In
addition, an example of engagement behaviors of contribution is discussing advertisements on Twitter. Meanwhile, an example of
engagement behaviors of creation is when the consumers or individuals share the posting content of a particular brand on their social media
platforms. These engagement actions can be positively or negatively valenced (Schivinski et al., 2019). For the social media engagement of
the consumer, it is essential to be concerned that an individual may behave as a consumer, contributor, or creator of content for the same
brand concurrently or sequentially based on the circumstances (Schivinski et al., 2016). In addition, a user may play a role as a contributor
and consumer for two different brands. In general, these three forms of usage are considered important in generating positive brand or
business consequences, such as engagement, satisfaction, brand loyalty, purchase intention, and positive recommendations (Mishra, 2019;
Piehler et al., 2019). Therefore, this study aims to analyse the impact of consumers’ engagement with brand-related social media content
on consumers’ purchase intention of telecommunication services.
2.4 BRAND EQUITY
Since the 1990s, "brand equity" has become one of the major topics in the management of marketing (Lee et al., 2017), which is a critical
part of achieving competitive market benefit and differentiation (Iglesias et al., 2019). Brand equity is a crucial marketing performance
measurement (Davcik et al., 2015; Chatzipanagiotou et al., 2016). Brand equity is an essential component in business success, which
successful firms may generate many advantages (Davcik et al., 2015; Chatzipanagiotou et al., 2016). Brand equity is defined as a collection
of brand assets and liabilities associated with a brand, its name, and its symbol. These assets and liabilities will contribute or detract to the
value of the product or service provided to a firm or the firm's consumers. It has been applied in various ways throughout the literature
(Cardona et al., 2017; Tran et al., 2017; Martín et al., 2019; Tran et al., 2019). The term "brand equity" refers to a tool for evaluating
consumer-brand relationships (Chatzipanagiotou et al., 2019). Even though numerous definitions of brand equity have been established,
brand equity is generally acknowledged as the added value of goods due to previous brand investment (Kim & Lee, 2018). From the
consumer's perspective, brand equity is formed via connections (Khamitov et al., 2019).
According to Yang et al. (2015), electronic word-of-mouth affects brand equity significantly. Two of the most powerful indicators of
intention and positive word-of-mouth are brand equity and brand loyalty (Evgeniy et al., 2019). Besides, social media marketing efforts are
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supposed to directly enhance brand equity, including brand image, brand awareness, and brand loyalty (Bilgin, 2018). Consumer experiences
are stimulated by social media marketing efforts, which impact brand equity, purchase intentions, and behaviors (Chen & Lin, 2019).
Consumer responses towards various social media activities are influenced by trust, which is critical for bringing the effect of online actions
and converting the efforts of marketers into brand equity and brand loyalty (Tatar & Erdogmus, 2016; Warner-Søderholm et al., 2018). As
Keller (2016) highlighted, one of the most influential areas for further research on brands is digital advancements. On the other hand, most
brand-related concepts were generally developed and handled by a company's marketing department. However, consumers on social media
are increasingly recognized as a primary component of brand equity development (Black & Veloutsou, 2017).
Brand equity in marketing literature was explored as an important topic (Davcik et al., 2015). In the past ten years, researchers have
compared the content created by the company and consumers' content to examine their influence on brand equity (Schivinski & Dabrowski,
2015; 2016). Perera et al. (2019) and Dissabandara (2020) previously showed that brand equity impacts purchase intention. Adam and Akber
(2016) found that when a client chooses one brand rather than another brand during the brand selection process, it is simply due to brand
equity despite the availability of additional features from alternate brands. In general, brand equity based on the customer may predict
whether they prefer a branded product over a product without a brand but with the same attributes (Chahal & Rani, 2017; Pappu & Quester,
2017). As a result, business firms and marketers should prioritize brand equity for increasing the market share and profit. Therefore, this
study aims to investigate the influence of brand equity on consumers' intentions to purchase telecommunication services.
2.5 HYPOTHESES DEVELOPMENT
2.5.1 Social Media Marketing Efforts and Consumers’ Engagement with Brand-related Social Media Content
Firms can help users to engage in social media by facilitating their participation. Brand engagement is expected to be influenced by a
company’s commitment to developing rich social media strategies and techniques (Cawsey & Rowley, 2016). However, the social media
literature has given insufficient attention to this relationship (Barger et al., 2016). The entertaining, educational, and exciting contents
determine the users’ engagement with the content on social media (Barger et al., 2016). Besides, Mishra (2019) has identified five factors
under social media marketing activities as motivators for consumers’ engagement with a brand’s content on social media. These factors are
customization, entertainment, interaction, trendiness, and word-of-mouth. According to Koch and Benlian (2015), content customization can
affect the engagement of social media users with social media content. Therefore, the following hypothesis is developed:
H1: Social media marketing efforts will have a positive and significant effect on consumers’ engagement with brand-related social media
content.
2.5.2 Consumers’ Engagement with Brand-related Social Media Content and Overall Brand Equity
Consumer participation on social media can enhance the possibility of future brand purchases. This resulted in important relationships
between consumers and the brand, which led to increased consumer belief and commitment between consumers and the company. As a
result, both consumers and marketers can benefit from creating value (Wong & Merrilees, 2015). According to Chahal and Rani (2017),
young consumers are becoming more engaged with the content related to the brand on social media, which helps build brand identification
and brand equity. Previous research has also shown that consumer participation in brand-related material can positively affect consumers'
perception of brand equity (Machado et al., 2019). Besides, the interaction between consumers and the brand can enhance brand knowledge
and brand equity, which results in higher brand preferences (Mishra, 2019). Schivinski and Dabrowski (2016) and Schivinski et al. (2016)
have demonstrated a significant and positive impact of brand communication on social media (both consumer-generated and firm-generated)
on brand equity. Thus, the hypothesis is proposed:
H2: Consumers’ engagement with brand-related social media content will have a positive and significant effect on overall brand equity.
2.5.3 Consumers’ Engagement with Brand-related Social Media Content and Purchase Intention
According to Binwani and Ho (2019), purchase intention is influenced by social media cues. Customers are more willing to repurchase
a product or embrace new items if a brand has successfully built brand equity. The value of the product and recommendations posted by
other customers on social media platforms also play a significant role in a customer’s decision to buy a product (Dehghani & Tumer,
2015). Customers may interact directly with one another and share their buying experiences directly through social media so that they can
be more secure when making purchase decisions (Aji et al., 2020). Besides, the consumers who communicate with the company on social
media are more likely to buy their products and services. Furthermore, the consumer will buy the products advertised on social media and
have a strong desire to become a company’s client (Aji et al., 2020). Purchase intention is the consumer’s behavioural response. The desirable
objective of any social media marketing activity for any company is to positively impact the consumer’s buying intention of the company
(Mishra, 2019). Thus, based on the above discussion, the following hypothesis is proposed:
H3: Consumers’ engagement with brand-related social media content will have a positive and significant effect on purchase intention of
telecommunication services.
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2.5.4 Overall Brand Equity and Purchase Intention
In the case of purchase intention, consumers tend to prefer a better-known brand over a less-known brand (Choedon & Lee, 2020). The
role of brand equity in consumers' purchase decisions has been researched for a long time. Most of the studies found that customers buy
items not just for the functional value of the products or product quality but also for the value of the brand and the symbolic product
significance embedded in the product (Aji et al., 2020). Previous research has demonstrated that higher brand equity would positively and
significantly affect a consumer's purchase intention toward that brand (Pappu & Quester, 2017). According to Suryadi (2015), brand equity
(perceived quality, brand loyalty, brand awareness, brand association) has an essential simultaneous impact on purchase intention. Besides,
Perera et al. (2019) and Dissabandara (2020) previously showed that purchase intention is significantly affected by brand equity. Thus, the
hypothesis is proposed:
H4: Overall brand equity will have a positive and significant effect on purchase intention of telecommunication services.
2.6 RESEARCH FRAMEWORK
Figure 1: Research Framework
The research framework for this study as shown in Figure 1. The purpose of this study is to investigate the impact of brand’s social media
marketing efforts on different degrees of consumers’ engagement with brand-related social media content. Besides, this study also examines
the impact of consumers’ engagement with brand-related social media content on overall brand equity and purchase intention.
3.0 RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
Research design is known as the underlying framework for integrating all aspects of quantitative research so that the results are reliable,
bias-free, and maximum generalizable (Dannels, 2018). According to Akhtar (2016), research design for researchers is a concept of blueprint
that encompasses all the sources, methodologies, and strategies used to gather collection, measure data, and analyze data to fulfill the research
goals. The research design defines the way to choose the participants. The variables included the way to manipulate the variables, the method
to collect and analyze data, and the method to control the extraneous variability to address the main research problem (Dannels, 2018).
Therefore, it is vital to develop an appropriate research design.
There are two types of research design: exploratory research and conclusive research (Surbhi, 2017). Exploratory research is the major
research phrase used to discover new insights into an issue because there is limited research and no clear conclusions (Akhtar, 2016). The
objective of exploratory research aims to look for new insights and discover the situation. An attempt is being made for asking questions and
evaluating occurrences from a new perspective. When the concepts are not clear enough to construct an actionable definition, this type of
research is typically used during early research phases (Rahi, 2017). In contrast, conclusive descriptive research uses quantitative data
analysis to test the specific hypothesis. Conclusive research helps the decision-maker to identify, evaluate, and choose the optimal approach
(Manojkumar & Sharma, 2018).
Conclusive research design can be categorized into descriptive research and causal research. Descriptive research is used to gather data
on certain issue features (for example, an individual, a group, or a community (Akhtar, 2016). Both cross-sectional research and longitudinal
research are two types of descriptive research. Conducting cross-sectional research compares distinct groups of people at a specific period.
On the other hand, longitudinal research tracks the alteration and evolution in the same target group (Cherry, 2020). In
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contrast, causal research is a method for evaluating the relationship between two variables: cause and effect (Bhasin, 2020). The main purpose
is to prove the existence of a relationship between cause and effect. The relationship between independent variables and the influence they
have on dependent variables can be explored by researchers by using causal research (Marvasti, 2018). Therefore, this study adopted the
conclusive research design comprised of descriptive research and cross-sectional design to investigate the relationships between social media
marketing efforts, consumers’ engagement with brand-related social media content, brand equity, and purchase intention of
telecommunication services.
3.2 POPULATION AND SAMPLING
Population is defined as a specific group of people, regardless of the same nation or a group of people who share a trait (Momoh, 2021).
While target population is referred to a specific group of people whose outcomes will be compared. Thus, the target population of this study
is individuals who liked and followed any of a telecommunication brand on social media platforms. Meanwhile, according to Vijayamohanan
(2021), the sampling process is entities (e.g., persons, households, and organizations) selected from a population (universe) of interest.
Therefore, reasonably generalize findings back to the population were chosen by analyzing the sample. The sample is the group of people who
have been chosen to be the respondents in research. Most statisticians agree that a minimum sample size of 100 is required to obtain a significant
result of any kind (Piroska, 2021). The researcher should survey more respondents if there are not more than 100 people in the population.
Furthermore, reasonable maximum sample size cannot be more than 1000, typically approximately 10% of the population. According to Azraii
et al. (2021), the sample size is calculated based on the subject-to-item ratio of 5:1. Therefore, the minimum sample size of this study is 205
(41 items × 5 = 205). The target of respondents for this study is social media users who had their internet data plan and had liked and followed
any telecommunication brand on social media. Therefore, the method of non-probability sampling known as purposive sampling technique
was used in this study.
The calculation of minimum sample size in this study is shown as below:
Demographic = (Item × 5)
= 8 × 5
= 40
Independent Variables = (10 × 5) + (15 × 5)
= 125
Dependent Variables = (4 × 5) + (4 × 5)
= 40
Total number of sample size = (Demographic + IV + DV)
= (40 + 125 + 40)
= 205 respondents
3.3 RESEARCH INSTRUMENT
Research is divided into two types which are quantitative research and qualitative research. Numbers and graphs are used in quantitative
research. It is used for testing or validating hypotheses and assumptions. This research method can develop generalizable truths on a
topic (Streefkerk, 2021). However, qualitative research is expressed in words. It is utilized for understanding thoughts, ideas, or experiences.
This kind of research allows for collecting in-depth perceptions of topics that are not fully known (Abuhamda et al., 2021).
The quantitative method was adopted in this study. The primary data was gathered from the respondents via online by using the Google
Forms format for the questionnaire instrument. The items for the questionnaire were constructed based on the previous studies (Mishra,
2019; Choedon & Lee, 2020). The questionnaire is divided into two parts: Part A and Part B. Part A is the questions regarding the respondents’
demographic profiles. It consists of demographic questions regarding respondents’ gender, age, education level, and income. For Part B,
there were 33 questions to investigate the factors that drive the consumer’s purchase intention of a telecommunication brand. There are ten
questions for social media marketing efforts, five questions for consumption, six questions for contribution, four questions for creation,
four questions for overall brand equity, and four questions for purchase intention. The scales for Part B of the questionnaires were adapted
from previous research. All these scales’ items were measured by the five-point Likert scale: 1 (Strongly disagree), 2 (Disagree), 3 (Neutral),
4 (Agree), and 5 (Strongly agree). Then, using the Statistical Package for the Social Sciences (SPSS) to screen, process, and analyze the data
after the stage of data collection.
A survey was distributed to target respondents to identify what factors drive their purchase intention of telecommunication services.
Further, social marketing efforts and engagement strategies are proposed to Red Future Network Enterprise to post the content related to
their products and services and renew their posting 3 times per week on their social media platform. This is because being active on social
media indicates a strong online presence of Red Future Network Enterprise. As a result, it can enhance the customer’s purchase intention
towards the telecommunication services provided by Red Future Network Enterprise.
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4.0 DATA ANALYSIS
4.1 RESPONSE RATE
The quantitative method was adopted in this study by creating online questionnaires through Google Forms and distributing them to
the target respondents. The Google Forms questionnaire was distributed via social media platforms such as Instagram, WhatsApp, Facebook,
and LinkedIn. Two qualifying questions, which are “Do you have your own internet data plan such as postpaid or prepaid data plan?” and
“Have you liked and followed any of a telecommunication brand such as Maxis, Digi, or Celcom in social media?” were developed to select
the targeted respondents who were eligible to answer the survey. Based on the calculation of the subject-to-item ratio of 5:1, the minimum
sample size of this study was 205. A total of 291 sets of online questionnaires were distributed to the targeted respondents. However, only
210 responses were returned with 81 sets of responses of did not like and follow any of a telecommunication brand. Thus, the usable
questionnaires were 210 with a response rate of 72.16 percent.
4.2 DATA PREPARATION AND SCREENING
In this study, SPSS was utilized to identify the outlier, normality, and missing value. This process can ensure the normal distribution of
data and avoid errors. The findings of outlier and normality are included in the analysis.
4.2.1 Detection of Outliers
Boxplot value for all the 210 samples to detect the outliers among all the variables. From the findings for detection of outliers, the
consumption (CONS) construct found outlier for sample 103. Initially, there were 210 responses in the study. After the analysis, there
was one outlier should be deleted: the sample of 103 in the variable of consumption. Hence, this study used 209 samples for data
analysis.
4.2.2 Detection of Normality
Using a normality test, sample data can be verified whether from a population with normally distributed (Patnaik, 2018). According
to Das and Imon (2016), normality is important to achieve statistical findings. This is because the statistics of normal distributed can
better represent the population due to the possibility of having the same result is higher. Statistical software “SPSS” can be used to run
the normality tests (Mishra et al., 2019). For the coefficients of skewness and kurtosis are numerical methods. However, the normality
test is a more formal method that requires to evaluate whether a given set of data has a normal distribution (Siraj, 2019).
According to Kwak and Park (2019), the “asymmetry” measurement of the probability distribution is skewness, where the curve
seems distorted or skewed left or skewed right. In contrast, the “tailedness” measurement of the probability distribution is kurtosis,
where the tails are asymptotically close to zero or not close to zero. A symmetric distribution, or data collection, seems like the same
to the left and right side of the central point. A symmetric distribution has the same mean, median, and mode, such as skewness is
zero or kurtosis (excess) is 0. If the skewness or kurtosis (excess) of the data is between − 1 and + 1, the distribution is considered
approximation normal (Mishra et al., 2019). Thus, before beginning data analysis, SPSS is being used as a screening tool to identify
and validate the normality of data.
Table 1 shows the results of skewness, SE skewness, Z skewness, kurtosis, SE kurtosis, and Z kurtosis for each of the variable
mean. The value of skewness and kurtosis between -2 to +2 are considered acceptable to represent the normal distribution. Thus, the
skewness and kurtosis values for all the variables were acceptable, with the skewness range from -0.406 to 0.040 and kurtosis range
from -0.891 to -0.112.
Table 1: Normality Test
Variable Skewness Kurtosis
Statistic Standard Error Statistic Standard Error
Social Media Marketing Efforts -0.338 0.168 -0.231 0.335
Consumption -0.329 0.168 -0.192 0.335
Contribution -0.137 0.168 -0.614 0.335
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Creation 0.040 0.168 -0.891 0.335
Overall Brand Equity -0.301 0.168 -0.112 0.335
Purchase Intention -0.406 0.168 -0.226 0.335
4.3 PROFILE OF RESPONDENTS
In this study, the question regarding respondents’ demographics was constructed in Part A which included the respondent’s gender, age,
education level, and income level, the telecommunication brand of their internet data plan, their time spent on social media platform per day,
the telecommunication brand they like and follow in social media platform, and the social media platform they are following now for the
telecommunication brand.
From the analysis, most of the respondents were female, which consisted of 140 (67%) respondents from 209 respondents. Then, most
of the respondents were holding a degree level with 181 respondents (86.6%) for the education level. Next, most of the respondents had the
income of RM 2000 and below per month (76.1%). For the telecommunication brand of the respondents’ internet data plan and the
telecommunication brand that they liked and followed in social media platform, most of them chose U Mobile (28.70%). Besides, most of
the respondents spent more than 4 hours on social media platforms per day with 89 respondents (42.6%). Furthermore, most of the social
media platform of the respondents used to follow the telecommunication brand was Facebook with 143 respondents (68.4%).
4.4 DESCRIPTIVE ANALYSIS
The descriptive analysis was conducted for all variables including the value of minimum, maximum, mean, and standard deviation. The
variable of social media marketing efforts had the highest mean value with 3.98 whereas the variable of contribution recorded the lowest
mean value with 2.03. Meanwhile, the mean value of purchase intention, brand equity, consumption, and creation are 3.95, 3.86, 3.56, and
2.82 respectively. On the other hand, the highest standard deviation value among the variable is 1.25 achieved by creation while the variable
of social media marketing efforts has the lowest standard deviation value which is 0.75. The standard deviation values for the variables of
contribution, consumption, brand equity, and purchase intention are 1.21, 1.06, 0.88, and 0.85 respectively.
4.5 RELIABILITY TEST
Reliability refers to the consistency of a measure (Cherry, 2020). If a test gets the same result repeatedly, it is considered reliable.
According to Leech et al. (2015), reliability test determines whether the scale is consistent or without failure. The reliability test is used in
research to make sure and prevent a change in response over time, which always makes the test trustworthy. Cronbach’s alpha is traditionally
used to measure internal consistency reliability, but it can also be a conservative calculation in PLS-SEM (Sarstedt et al., 2017). The reliability
can be measured based on composite reliability (CR) and Cronbach’s alpha. In the study, both measurements are used to determine all factors’
consistency and to assess the trustworthiness of the measurement data acquired. In this study, Cronbach’s alpha coefficient test and composite
reliability (CR) are utilized to assess the scales approach’s reliability. According to Nawi et al. (2020), appropriate Cronbach’s alpha scale
coefficient is greater than 0.60. Therefore, in this study, the Cronbach’s alpha is fixed at 0.60. The value of CR is 1, which means it has perfect
expected reliability. Cheah et al. (2018) also stated that the value of CR is higher than 0.70 which is acceptable and appropriate.
Table 2 indicates that the highest value of Cronbach’s Alpha is 0.901 achieved by the variable of contribution. In addition, the variable
of consumption and brand equity have the lowest value of Cronbach’s Alpha which are 0.825. The value of Cronbach’s Alpha for the
variables of creation, social media marketing efforts, and purchase intention are 0.894, 0.890, and 0.833 respectively. As a result, the
convergent validity for all the variable items were acceptable and appropriate.
Table 2: Reliability Analysis
Item Cronbach’s Alpha
Social Media Marketing Efforts (SMME) 0.890
Consumption (CONS) 0.825
Contribution (CONT) 0.901
Creation (CRE) 0.894
Brand Equity (BE) 0.825
Purchase Intention (PI) 0.833
4.6 LINEAR REGRESSION ANALYSIS
According to Kumari and Yadav (2018), a statistical approach for estimating the value of a dependent variable from an independent
variable is known as linear regression. The relationship between two variables is measured by using linear regression. The value of at least
one independent variable can be used to predict the value of a dependent variable by using linear regression analysis. The correlation
coefficient “r” is a dimensionless number that value ranges from 1 to +1 in correlation analysis (Schober & Schwarte, 2018). A value that
closer to -1 shows an inverse or negative relationship, while a value that closer to +1 shows a positive relation. Table 3 displays the results
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of linear regression with p-value of 0.00. The findings found that there are positive and significant relationships between the social media
marketing efforts, consumers’ engagement with brand-related social media content, brand equity, and purchase intention of the
telecommunication service. As shown in Table 4, p-value for SMM toward CBE, CBE towards BA and CBE towards BI is less than 0.05,
with p-value of 0.00. Therefore, all the hypotheses are supported in the study.
Table 3: Linear Regression Results
Relationship Coefficients Standard Error T-Statistics Sig. Result
SMME-CEWB 0.079 9.098 0.000 Supported
CEWB-OBE 0.052 6.907 0.000 Supported
CEWB-PI 0.050 7.177 0.000 Supported
OBE-PI 0.052 12.216 0.000 Supported
Note: Signifiacnt at p < 0.05
Table 4: Summary of Hypothesis
Hypothesis Results
H1: Social media marketing efforts will have a positive and significant effect on consumers’ engagement P=0.00, Supported
with brand-related social media content.
H2: Consumers’ engagement with brand-related social media content will have a positive and significant P=0.00, Supported
effect on overall brand equity.
H3: Consumers’ engagement with brand-related social media content will have a positive and significant P=0.00, Supported
effect on purchase intention of telecommunication services.
H4: Overall brand equity will have a positive and significant effect on purchase intention of P=0.00, Supported
telecommunication services.
4.7 MARKETING STRATEGIES AND IMPACT OF INTERVENTION FOR RED FUTURE NETWORK ENTERPRISE
Figure 3: Marketing Strategies for Red Future Network Enterprise
Figure 3 displays the marketing strategies implemented for Red Future Network Enterprise during the 2 months (September 2021 to
October 2021). Based on the results from the survey, it was indicated that the social media marketing efforts and consumers’ engagement
with brand-related social media content can enhance the brand equity and consumers’ purchase intention of telecommunication services.
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Thus, the marketing strategies and interventions were conducted for Red Future Network Enterprise by creating a Facebook page and
updating the social media contents frequently to enhance its online and social media presence.
The Facebook page was created on 1st September 2021 as the first step of the intervention. According to Watanabe et al. (2020),
information of company provided on social media is vital to enhance the credibility of the customer towards a company. Hence, it is important
to update the full details of Red Future Network Enterprise such as company name, its business description, address, contact number, and
operating hours on its Facebook page. In two months of the interventions, social media contents were updated frequently to create customers’
engagement. Social media marketing efforts are important to engage consumers at social media platforms by providing them with most up-
to-date information about the brands. This is because they believe that this information is more trustworthy than firm-sponsored marketing
communications (Seo & Park, 2018). Therefore, Red Future Network Enterprise frequently updated the available and latest redONE internet
data plan, latest promotion of redONE, phone and phone accessories to enhance its social media presence for brand equity and purchase
intention.
According to Schivinski et al. (2016, p. 5), consumers’ engagement with brand-related social media content (also known as social media
engagement) is a “metric that evaluates a user’s interaction with brand-related information on social media instead of just simply interaction
with the company”. To enhance the consumers’ engagement with brand-related social media content, it is important for Red Future Network
Enterprise to create Malaysia’s festival posters such as Malaysia Day and Mooncake Festival to greet the followers on its Facebook page. In
addition, it is important for Red Future Network Enterprise to create and share valuable contents such as knowledge of handphone, ways to
maintain the handphone in good condition, and ways to make online bill payment of redONE's internet data plan to enhance the engagement
of followers and potential customers with the company through social media contents. All the social media contents were updated at least
three times per week from 2nd September 2021 to 30th October 2021. Furthermore, hashtag, call-to-actions, and WhatsApp action button
are important to add to every social media post on the Facebook page of Red Future Network Enterprise because appropriate hashtags can
enhance the brand exposure of the brand, and call-to-actions can increase the conversation and purchase intention of consumers for the
company.
Finally, observation and evaluation were conducted by using Facebook insight on 31st October 2021. As shown in Figure 4, at the end
of the intervention, the several metrics were used to evaluate the results of the interventions. The page successfully obtained 111 total page
likes and followers. The social media posts on the Facebook page of Red Future Network Enterprise reached up to 82 Facebook users and
interacted with 57 Facebook users. Besides, the Facebook page received 5-stars ratings and good services review for Red Future Network
Enterprise. Moreover, the Facebook page received seven customers' enquiries for asking the promotion and internet data plan of redONE
during the intervention.
Figure 4: Impact of intervention for Red Future Network Enterprise
5.0 DISCUSSION AND CONCLUSION
5.1 DISCUSSION BASED ON RESEARCH QUESTIONS
5.1.1 RQ1: What enhances brand equity and customers’ purchase intention of telecommunication services?
The findings illustrate that social media marketing efforts positively and significantly affect consumers’ engagement with brand-related
social media content. This finding is consistent with previous research (e.g. Seo and Park, 2018; Mishra, 2019). Besides, there is a positive
and significant relationship between consumers’ engagement with brand-related social media content and overall brand equity. This finding
confirms the results of the previous studies such as Mishra (2019) and Schivinski and Dabrowski (2016). Furthermore, the findings indicate
that the consumers’ engagement with brand-related social media content has a positive and significant influence on customers’
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purchase intention of telecommunication services. This finding supports the conclusions of previous studies (Mishra, 2019; Aji et al., 2020;
Choedon and Lee, 2020). Moreover, results revealed that there is a positive and significant relationship between brand equity and customers’
purchase intention of telecommunication services were in line with the results from the previous studies of Mishra (2019) and Choedon and
Lee (2020).
In overall, the findings of the survey in this study conclude that the consumers’ engagement with brand-related social media content
and brand equity are the factors that could enhance the purchase intention of telecommunication services. Meanwhile, the social media
marketing efforts is a driver that indirectly influence the purchase intention of telecommunication services through the consumers’
engagement with brand-related social media content and brand equity.
5.1.2 RQ2: What are the social media marketing efforts to enhance the brand equity and customers’ purchase
intention of telecommunication services provided by Red Future Network Enterprise?
The result of the survey in this study shows that social media marketing efforts and consumers’ engagement with brand-related content
are effective to increase brand equity and customers’ purchase intention of telecommunication services. Based on findings, the marketing
strategies were conducted for Red Future Network Enterprise by creating a Facebook page. This is because the result of the survey proved
that Facebook was most of the social media platform of the respondents used to follow the telecommunication brand with 143 respondents
out of 209 respondents (68.4%).
Further, the social media contents were updated on the Facebook page of Red Future Network Enterprise during the 2 months of
intervention. The survey results proved that the social media marketing efforts and consumers’ engagement with brand-related content could
drive the brand equity and customer’s purchase intention of telecommunication services provided by Red Future Network Enterprise. Social
In media marketing efforts, entertainment is the most important aspect of social media marketing activities (Algharabat, 2017). This is
because consumers enjoy the entertained contents such as fun and interesting videos, which could encourage them to participate in brand
communities on social media (Ashley & Tuten, 2015). Hence, the interesting social media contents with attractive photos and videos were
actively updated in three times per week on the Facebook page of Red Future Network Enterprise. Apart from that, consumers usually rely
on social media platforms that provide up-to-date information about brands as they believe that the information is more trustworthy than
firm-sponsored marketing communications (Seo & Park, 2018). Thus, the most up-to-date information and content were updated at least
three times per week on Facebook page of Red Future Network Enterprise such as the latest redONE internet data plan, promotion, phone,
and phone accessories selling.
According to Schivinski et al. (2016, p. 5), consumers’ engagement with brand-related social media contents is “a collection of online
actions on the consumer’s part that are linked to a brand, and which vary in the degrees of interaction and participation with the consumption,
contribution, and creation of media content”. Hence, the valuable contents were posted on Facebook page such as knowledge of handphone,
tips to maintain the handphone in good condition, and ways to make online bill payment of redONE's internet data plan. The call-to-action
was added on every valuable content to attract the social media users to like, comment, share, and follow the Facebook page. Besides, the
attractive poster of Malaysia’s festival was used to greet social media users and attracted to like, share, and comment on the Facebook post.
In addition, call-to-action and WhatsApp action buttons were added on every social media post to enhance the intention of customers to have
a conversation with Red Future Network Enterprise. Furthermore, consumers’ perceptions of brand equity are influenced by online reviews,
which, in turn, influence their purchase intention (Hayes & Carr, 2015). Customers could create social media content and write their reviews
on Facebook page of Red Future Network Enterprise to enhance the brand equity and customers’ purchase intention. To conclude that,
updated a variety of social media content frequently and engaged with the consumers on social media are effective to enhance the customers’
purchase intention of telecommunication services.
5.1.3 RQ3: Are the implemented social media marketing efforts able to enhance the brand equity and
customers’ purchase intention of telecommunication services provided by Red Future Network Enterprise?
Based on the results of the intervention, it is proved that social media marketing efforts can enhance the consumer’s engagement with
brand-related content, brand equity, and purchase intention of telecommunication services provided by Red Future Network Enterprise.
Facebook page created for Red Future Network Enterprise was useful to allow their followers and potential customers to directly engage
with the company and search information easily using online platform. For instance, the followers and potential customers can expose directly
to the internet data plan, promotion, phone, and phone accessories offered by Red Future Network Enterprise. Besides, social media
users can access the customers’ reviews on the Facebook page of Red Future Network Enterprise. In addition, conversation and engagement
are available for the followers and potential customers with Red Future Network Enterprise. During the two months of intervention for the
Red Future Network Enterprise, the Facebook page had received a total of 7 customers’ enquiry for asking about the promotion and internet
data plan of redONE through Facebook Messenger and WhatsApp number action button from the Facebook page. As proven, followers and
potential customers on Facebook who accessed the latest information and telecommunication services of Red Future Network Enterprise
would have the intention to buy and know more about the promotion and internet data plan of redONE such as the price and the promotion
of telecommunication services. In addition, the social media posts on the Facebook page of Red Future Network Enterprise reached up to 82
Facebook users which means that the brand equity of Red Future Network Enterprise can be increased in terms of brand awareness and brand
recognition.
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5.2 RESEARCH IMPLICATIONS
The findings of this study have several theoretical and practical implications. From the theoretical viewpoint, the study contributes to the
existing literature. Till now, only a few research focuses on telecommunication services such as Chakraborty (2018), Yaseen and Mazahir
(2019), and Al-Dmour et al. (2021). In general, there are limited studies on the telecommunication service provider of redONE. Although
previous researchers and academicians have studied the influence of social media marketing efforts on purchase intention, the studies (e.g.,
Dessart et al., 2015; Mishra, 2019; Chen & Lin, 2019; Choedon and Lee, 2020) have mostly focused on other products or services. Thus, the
findings of this study are useful for further empirical research to investigate the factors that can enhance the customers’ purchase intention
of telecommunication services.
From the practical perspective, the findings of this study are vital to provide several practical implications and useful marketing strategies
for the marketers of the telecommunication industry. The findings show that social marketing efforts including entertaining contents are
essential to increase the consumers’ engagement with brand-related social media content, brand equity, and purchase intention of
telecommunication services. Thus, it is important for telecommunication service providers to implement social media marketing efforts on
their social media platform. The marketers can focus on social media marketing activities such as updated interesting and up-to-date social
media contents with attractive photos and videos to reach social media users and stimulate their intention to know more about the brand and
buy the telecommunication services. As a result, the brand equity and purchase intention of telecommunication service provider can be
increased.
The result of survey served as important guidelines for Red Future Network Enterprise to conduct the intervention to increase the
brand equity and purchase intention through social media marketing efforts and consumers’ engagement with brand-related social media
content. With effective social media marketing strategies, Red Future Network Enterprise can increase the sales of its telecommunication
services such as internet data plans, promotion, phone, and phone accessories through the customers’ enquiries and purchase intention. From
the impact of the intervention, it was proved that social media marketing efforts which are updating interesting, latest, and valuable social
media content frequently on the Facebook page of Red Future Network Enterprise could enhance the customers’ purchase intention through
enquires. For example, most of the customers’ enquiries were asked about the internet data plan and promotion of redONE. Besides, the
result of the intervention could show which valuable contents had recorded better post engagement with the potential customers of Red
Future Network Enterprise. Thus, it is important for marketers of Red Future Network Enterprise to post impactful contents on social media
to increase the brand equity. Moreover, the interaction between the consumers and Red Future Network Enterprise on social media can
enhance the consumers’ interest in buying telecommunication services and help the consumers make decisions before purchasing the
telecommunication services of Red Future Network Enterprise. As a result, marketers should always design a marketing plan to strategize
that the customers will have a higher intention to purchase the telecommunication service through engagement with the company.
5.3 LIMITATIONS AND FUTURE RECOMMENDATIONS
Despite the implications of the research in the telecommunication industry, this study has a few limitations that need to be addressed by
future researchers. Firstly, one of the limitations of this study is lacking generalizable. Even though the sample size in this study fulfills the
minimum sample size required, but the sample size of this study is still limited, and the sample size is obtained by using the non-probability
sampling method. As a result, the findings and conclusions from the sample of the research are unable to reflect the entire population of
telecommunication industry, due to the limited sample size and sampling methodology. Thus, it is recommended for future researchers to
conduct the survey by using a larger sample size of telecommunication users and using probability sampling techniques to enhance the
reliability and accuracy of data and representative results.
Besides, this study is not specific to investigate each element of social media marketing efforts that impact customers’ purchase intention
towards telecommunication services. In fact, there are five components of social media marketing efforts that must be considered:
entertainment, interaction, trendiness, customization, and word-of-mouth that may impact customers’ purchase intention towards
telecommunication services. As a result, this study has suggested that future researchers examine the impact of each element of social media
marketing efforts on customers’ purchase intention towards telecommunication services to investigate the accuracy of social media marketing
efforts that influence the customers’ purchase intention of telecommunication services.
In addition, the survey method for this study is another limitation. This study only used the questionnaire as the data collection
methodology and the survey was conducted online by distributing the questionnaire through Google Form due to the Covid-19 pandemic.
Since the Google Form was distributed through online for collecting data, there have some disadvantages that will limit the reliability and
lead to the bias of data collected such like misunderstand the questionnaire items, internet connection problems when they were answering
the survey, etc. Therefore, future researchers are recommended to expand the diversity of the survey methods such as distribute the
questionnaire through offline or survey with interview based. This is because the researchers can justify the questionnaire items directly to
the target respondents if they do not understand the question through the face-to-face distributed questionnaire.
Lastly, the intervention was conducted for Red Future Network Enterprise using 2 months. The duration of the intervention might
affect the effectiveness of the strategies. Thus, the recommendation for future researchers is they can extend the period for intervention and
observe the effectiveness of the implemented social media marketing strategies to get more accurate findings for Red Future Network
Enterprise. Further, the invention conducted for Red Future Network Enterprise can be used for other telecommunication service providers
or other service providers in different industries.
394
5.4 CONCLUSION
In conclusion, the survey result in this study indicated that the social media marketing efforts and engagement significantly impact
consumers’ engagement with brand-related social media content. Besides, the consumers’ engagement with brand-related social media
content has a positive and significant effect on brand equity and purchase intention respectively. In addition, brand equity positively and
significantly influences the purchase intention of telecommunication services. The survey results are important for the implemented
marketing strategies of Red Future Network Enterprise by creating a Facebook page and updating social media posts frequently for 2 months
to enhance the brand equity and purchase intention of the company. During the intervention of these 2 months, Facebook page of Red Future
Network Enterprise had received a total of 7 customers’ enquiries to know more about the promotion and internet data plan of redONE
through Facebook Messenger and WhatsApp number action button from the Facebook page. As a result, the findings of the survey and
intervention had proven as a guideline for Red Future Network Enterprise and marketers of the telecommunication industries to further
improve and implement the best marketing strategies to survive during the Covid-19 pandemic.
395
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APPENDIX
Appendix A: Evidence of Interventions for Red Future Network Enterprise
Latest promotion and redONE internet data plan provided by Red Future Network Enterprise:
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Phone and Phone Accessories selling:
Attractive Poster for Malaysia’s Festival:
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Valuable Content:
Appendix B: Participation for Conferences and Certificate of Awards
Certificate of BLM2-ICAM4, An International Joint E-conference 2021:
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Certificate of Undergraduate Pitch For Funding (UGPFF) 2021:
Certificate of Undergraduate Research Conference (URC) 2021:
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407
THE IMPACT OF INFLUENCERS MARKETING TOWARDS GENERATION
Y AND Z IN TERMS OF PURCHASE DECISION.
MOHAMED FIRDAUS BIN MOHAMAD KARIM, ENCIK AHMAD SHARIFUDDIN BIN SHAMSUDDIN
AZMAN HASHIM INTERNATIONAL BUSINESS SCHOOL, UNIVERSITI TEKNOLOGI MALAYSIA, JOHOR BAHRU
*Corresponding author: [email protected] , [email protected]
Abstract
With their excellent effort and visibility, social media influencers are conquering the Internet. Their views have a significant
influence on individuals, particularly the younger generation. They may be classified as a new phenomenon that has witnessed
a significant growth in collaboration with marketing firms over time. People are increasingly following these influencers to
ensure that they do never missing out on their content. The aim of the study is to identify the impact of influencers marketing
on Generation Y and Z in terms of purchase decision. I intended to see if influencers can draw potential consumers and
persuade them to buy. In order to meet the objectives of the study, own research will be conducted using a Google Form
questionnaire and distribute them to the people who has heard/interacted with skin care company, Daughters of Malaya and
106 samples collected from customers in Johor and Kuala Lumpur. Specifically Content Quality positively influence purchase
decision, Influencers Consistency positively impact purchase decision and Good Influencers strategy positively influence
purchase decision. The implementation of influencers marketing has positively contributed to Daughters of Malaya in getting
more sales and profit.
Keywords: Generation Y and Z, Influencer, Influencer Marketing, Purchase Decision,
■ 1.0 BACKGROUND OF THE STUDY
Business has been operating for many years ago, the era of globalization has mended the evolution of business from
trade system to international business. The international business cannot run without the power of the Internet.
According to Dianne Heath on Bizfluent, Businesses may now develop communities for people who have similar interests in
products and services thanks to the Internet. These communities aid in the development of a company's brand and the creation
of a good image. Businesses may easily modify products or services, increasing consumer pleasure while also increasing
revenues. “Businesses may now receive useful information on the interests of specific populations thanks to the Internet. As a
result, businesses may utilize targeted advertising to their advantage by appealing to certain publications and media that are
relevant to their product or service” she added. Now we all agree that Internet is the most common thing that are beneficial for
business.
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We have many types of business operating in the world. The most basic sort of business is the sole proprietorship.
A sole proprietorship is a business that is owned and controlled by a single individual and is relatively simple to establish.
Next, a partnership is a company owned by two or more persons who share earnings and obligations, the third one is limited
partnership is a commercial partnership that often involves firm owners and investors. Following by nonprofit Organization
which is a sort of company that donates its income to charity. Tax-free, although there are certain restrictions while cooperative
(Co-op), a cooperative is a group of people who work together to achieve a common A business that is owned and run for the
benefit of the organization's members who use its services.
There are various strategies which is broadly used by every type of businesses around the world. Simply put, a strategic
planning solves the issue of how a company intends to compete in its field. In many other aspects, it's how a company sets
itself apart from its competition. This may be simple to understand what a business-level strategy has now become but deciding
which approach to adopt is a little more difficult (Amery, 2019).
The introduction of the Internet, which not only represents a revolution in communication but also in the means of
managing user connections, is without a doubt the most significant addition to the ICT domain. Nowadays, the Internet is
amongst the most influential media on a worldwide scale, and we may consider it one of the most major contributors to the
globalization process. In addition to the above-mentioned globalization, the Internet and other communications technology
have aided economic activities in general. The economic outlook has gotten more competitive, and the rest of the world has
now become a viable market from a global context. Regardless of the more dynamic environment, the Internet has become a
significant potential for businesses of all kinds, and e-marketing has become an important part of 21st-century marketing.
In this case, I have interviewed a skin care company, which is commonly using a famous marketing strategy -influencer
marketing which I will share more about the company details in Chapter 2. Influencer marketing is the practice of selling
products and services to people who have an influence as to what other people will buy. This market impact is usually based
on a person's knowledge, fame, or public image. Influencer marketing is comparable to word-of-mouth marketing in that it
does not rely solely on direct endorsements (Zdenka KÁDEKOVÁ, 2018).
■ 1.1 PROBLEM STATEMENT
Influencer marketing has become a must-have and necessary component of business. Influencer marketing in the
modern world is a relatively new business strategy in Malaysia, yet it is a rapidly growing trend. This type of marketing is
often described as the "digital counterpart of word-of-mouth marketing” (Sinkwitz, 2016) took on the role of a group of people
known as "social media influencers" to promote products or services via a variety of social media platforms, typically in lieu
of cash, free or discounted goods or services. Those "influencers" are people who have a large number of followers on social
media sites such as Facebook, Instagram, and Twitter (Smith et al., 2018).
Based on Malaysian Communications and Multimedia Commission Internet Users Survey in 2017, mobile phone
penetration is at 132.9%, using social media for marketing Influencers have a good chance of reaching Malaysian users. Text
conversation (96.3 percent), social media surfing (89.3 percent), and information assessment are the top three online activities
for these individuals (86.9 percent). According to the poll, 97.3 percent of individuals who browse social media sites have
Facebook accounts, and 56.1 percent have Instagram accounts. Moreover, in an interview with The Star Online in 2018, the
President of the Malaysia Retail Chain Association, Garry Chua, recognized that social media platforms are beneficial for
businesses nowadays, and that many of them have integrated them in their marketing strategies (Yuen, 2018).
This research aims to identify the impact of influencers marketing on Generation Y and Z in terms of purchase
decision. I intended to see if product promoters can draw potential consumers and persuade them to buy. The study analyses
how the influencers be the factors influencing Generation Y and Z in terms of purchasing decision.
Rationally, the way individuals and businesses communicate and engage with one another is evolving as the digital
and social networking platforms increase in size. Virtual interactions are becoming more common, and corporate and
individual behaviour is shifting. The concept of social media influencers has become a highly appealing career for many social
media aficionados in recent years.
The quality of an influencer’s advertisement message content also known as perceived advertising value, are becoming a factor
to the consumers’ purchasing decision. (Bilgihan, 2016). As a result, several businesses are adopting the influencer phenomena
and are now utilizing influencers to advertise their goods.
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1.2 RESEARCH QUESTIONS
The research questions of this study are:
• What are the characteristics of content quality to influence Generation Y and Z purchase decision towards
influencers marketing?
• How does consistency of influencers' interactions in influencer marketing control the younger target markets?
• Are the good strategies could increase the brand awareness in promoting products or services in social media?
1.3 RESEARCH OBJECTIVES
The research objectives of this study are:
• To investigate the effectiveness of content quality to influence Generation Y and Z purchase decision
towards influencers marketing
• To identify the consistency of influencers' interactions in influencer marketing to influence younger
target markets
• To study the impact of good influencers strategy in promoting products or services in social media.
1.4 RESEARCH HYPOTHESIS
The research hypotheses will test the relationship between independent variables and dependent variables.
Figure 1 shows the framework of this research. The hypotheses of this research are listed below:
H1: There is a relationship between content quality and Generation Y and Z purchase decision.
H2: There is a relationship between consistency and Generation Y and Z purchase decision.
H3: There is a relationship between good strategy and Generation Y and Z purchase decision.
Figure 1
Figure 1 The theoretical framework relationship between influencers’ marketing and Generation Y and Z purchase
decision.
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■ 2.0 INTRODUCTION
The framework that will be employed in this investigation is provided in this chapter. This chapter also
covers the ideas and justifications behind influencer marketing, the characteristics of influencers, and the purchase
decision. Furthermore, the relationship between characteristics of influencers and purchase decision. With this
publication, an overview of related studies will also be provided.
So, for this marketing research as I mentioned before I have interviewed a company called Daughters of Malaya.
A bit about this company, Daughters of Malaya, established by Dayana Zul and her husband Rai Ahmad in January 2019,
began by offering three types of handcrafted cleaning balm: Charcoal, Makeup Melter, and Matcha.
As the demand for the goods rose, so did the size of the production. Daughters of Malaya has indeed been
relaunched to better identify its identity, philosophy, and principles a year later, in mid-2020. Daughters of Malaya strives
to give consumers with high-quality items they can rely on. It's also here to put an end to the recent uptick in fear-
mongering methods in the natural skincare and cosmetics industries. Natural beauty is very essential to Daughters of
Malaya.
2.1 INFLUENCER BACKGROUND
An “Influencer” is a person with a large social media follower who is sponsored by businesses to promote their
products to those followers, either in the form of free items and vacations, or in the form of a monetary payment per
promotional post (Landsverk, 2014). The goal is to convince followers to buy items they offer. Instagram, Facebook,
Snapchat, and YouTube are some of the most popular social media platforms for promoting. Because of their authority,
education, status, or connection with their audience, influencers have the power to influence others' purchasing decisions.
It's crucial to remember that these people aren't just marketing tools; they're social connection assets that businesses may
work with to accomplish their marketing goals. (Olenski, 2017).
Influencers are a right on time phenomena, and their partnership with marketing firms have skyrocketed over
the year (Kniš, 2017). Celebrities, industry insiders and political figures, bloggers or content providers, and micro-
influencers are the most common types of influencers. The majority of social influencer marketing nowadays takes
place on social media, mostly through micro-influencers and blogging. Influencers include industry professionals and
thought leaders (such as writers), who play a vital role for companies. Then there's the world of celebrities. They were
the first influencers, and their prominence as influencers has diminished, but they still have a part to perform. Bloggers
and Instagrammers (often micro-bloggers) have by far the most real and active interactions with their followers. This is
increasingly being recognized and encouraged by brands (Geyser, 2021)
2.2 CONTENT QUALITY
In terms of marketing, content quality refers to a strategic marketing approach that focuses on generating and
delivering useful, relevant, and consistent information in order to attract and keep a specified audience — and, eventually,
to generate lucrative customer action (Insider, n.d.) All the paid creators are supposed to create a content on how should
they promote the sponsored product.
To promote, advertise, and even engage on Instagram, we must first understand our market and product. We
cannot go into our approach blindly, therefore start by asking questions that identify us and our intended audience. These
questions may include: What aspects of our brand do our customers enjoy the most? Who are we aiming for in the end?
How do rivals use Instagram to their advantage? and what marketing techniques have shown to be successful in the past?
(Arens, 2019).
Content quality also means a good content produced by influencers or bloggers to promote the product
sponsored by a specific company.
H1: There is a relationship between content quality and Generation Y and Z purchase decision.
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The definition of consistency is the ability of always acting or performing in the same manner, or of always occurring
in the same manner. In general, and especially in business, consistency is the key to success. Consistency refers to the act of
adhering to a set of rules. The word "consistent" is described by Merriam-Webster as "constantly performing or acting in much
the same way, or of the same characteristic (Tatum, 2016).
To get the leads we might need our business to grow, we ought to be consistently in the precise content we utilize
for the place in the shopping journey our customer is always at. Educational material will help us grab the interest of the
viewers we’re writing about, and we’ll be able to create more results just by employing the same quality and amount of content
consistently. As a result of our consistency, we may have developed a habit of trustworthiness. (Tatum, 2016).
H2: There is a relationship between consistency and Generation Y and Z purchase decision
2.4 GOOD STRATEGY
A successful strategy offers a concrete plan, consists of a collection of directing guidelines and principles, that
outlines the actions individuals in the company must undertake (and not undertake) and the items they need prioritize (and not
prioritize) in order to meet their objectives (Watkins, 2007)
Looking to another point of view, according to Rumelt good strategy is a cohesive collection of assessments, ideas,
strategies, justifications, and practices that response to an elevated problem He added, a good strategy is a well-thought-out
action plan backed by a compelling argument — a well-balanced blend of analysis and execution with a fundamental
underlying framework. The "hard nut at the heart of the notion," as Rumelt describes it, is the "core," the basic center of a plan
(Rumelt, 2012)
H3: There is a relationship between good strategy and Generation Y and Z purchase decision.
2.5 THEORETICAL FRAMEWORK
Figure 2.1 The theoretical framework relationship between characteristics of influencers and Generation Y and Z’s purchase
decision.
Figure 2.1 is the proposed theoretical framework that shows three characteristics of influencers and Generation Y
and Z’s purchase decision. The characteristics of influencer will act as the independent variables while purchase decision acts
as dependent variable. Hence, the relationship shows purchase decision is affected by characteristics of influencers.
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This chapter provides overall elements related to the influencers’ marketing and Generation Y and Z’s purchase
decision with literature reviews. Theoretical framework was generated while research methodology is discussed in the next
chapter.
■ 3.0 RESEARCH METHODOLOGY
The researcher had constructed the theoretical framework in the previous chapter, which shows the independent
variables (content quality, consistency, and good strategy) and dependent variables (content quality, consistency, and good
strategy) (purchase decision). The methods used in the study is covered in this section.
The goal of this chapter is to look at how research is done. The way of conducting this study, covering sample size
determination, population employed, kind of statistical analysis, type of sampling methodology, formulation of the research
design, data collecting method, and appropriate statistical structure, will be discussed deeper.
The sample size will be selected depending on the population size, and the suitable sampling strategy will be adopted
to guarantee a smooth data gathering procedure and accurate data collection. The statistical analysis will be selected in order
to answer the research question and attain the research goal. Based on the appropriate theory and references from other
researchers and writers, the form of the data analysis will also be clearly outlined in this chapter.
3.1 RESEARCH DESIGN
Researchers use study design as a guideline or strategy to guarantee that the data they collect is suitable and relevant.
Research design, according to Malhotra (2009), is a structure or design for doing a marketing research study. It lays out the
steps for obtaining the data required to organize or solve marketing research challenges. It is essential for the research to offer
specifics on each stage required for the investigation. The research design refers to how a study attempts to respond to the
research questions posed by the problem and purpose. This should detail the data sources, how the data will be acquired, and
how it is being processed, as well as any limits or restrictions (Saunders, Lewis, & Thornhill, 2016).
According to Saunders et al. (2016), the procedure through which a study aims to comprehend something is referred
to as the research purpose. There are four different sorts of studies. Exploratory, descriptive, explanatory, and evaluative studies
are all types of research. One of these goals can be pursued, or a combination of goals can be pursued. Exploratory studies are
wide research projects that sought to explain questions like "What" and "How. The sort of data used in exploratory research is
qualitative data, as well as the exploratory research approach is less structured and more dynamic. Conclusive research design,
on the other hand, tends to refer to a study that draws findings for decision-making by examining hypotheses and correlations
among variables (Neelankavil, 2015). Nevertheless, descriptive, and causal research might be classified as conclusive research
designs. Descriptive research looks at sample characteristics, whereas a causal study looks at the cause-and-effect relationship
between factors. (Omair, 2015). The influence of one or more factors on the value of other factors is assessed in a causal study,
that's often employed in experimental studies (Jefferys, 2018). Cross- sectional and longitudinal studies are two types of
descriptive research. Cross-sectional papers look at multiple samples at the same time, whereas longitudinal studies look at a
certain sample throughout the study process (Omair, 2015).
This study was conducted according to the conclusive research design which consists of descriptive research and
cross-sectional design to study the relationships between content quality, consistency, good strategy, and purchase decision.
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Figure 3.1: A Classification of market research designs (Malhotra and Peterson, 2006)
3.2 QUANTITATIVE DESIGN
The data for this study was gathered using a quantitative research design. Quantitative research is used to measure
data samples and adapt it to a larger audience (Malhotra, 2009). This study uses a survey approach to collect information from
the respondents using a questionnaire. A questionnaire survey will be sent to the sample and community chosen in response to
the surveys.
For respondents to grasp the study's complex terminology, researchers must provide the information in a clear and
comprehensible manner in order for them to commit to answering the surveys.
3.3 POPULATION AND SAMPLING
A research population is a large collection of people or items that are being studied by scientists. The purpose of
research is to help the general population. Nevertheless, because of the large size of populations, it is usually difficult for
researchers to evaluate each and every person in the community since it is too expensive and time-consuming (Explorable.com,
n.d.).
According to Saunders et al. (2016), sampling is the process of collecting data in order to analyse it. They moved on
to talk about various sampling methods. In this thesis, there were two types of sampling used. The interviews were conducted
using judgemental non-probability sampling to ensure that the firms were using influencer marketing. Judgmental non-
probability sampling is a method of handpicking individuals to guarantee a more sample size based on the researcher's needs
and viewpoint (Saunders et al., 2016). Random probability sampling was utilized for data mining. Random probability
sampling denotes that the sample was picked at random, with each example having the same probability of being picked
(Saunders et al., 2016).
Furthermore, the target population of this study are the teenagers and adults who are using social media from the age
18 to 45 who lives in Johor Bahru that has ever interacted or heard with Daughters of Malaya skin care company. Therefore,
the amount of sample of this research is 106. To support the research sample, and article called ‘The Impact of a Digital
Influencer to the Purchase’ by Maria Francisca Lies Ambarwati et.al. was used as reference which they distributed
questionnaire to 100 respondents who were the viewers of a video of an Indonesian beauty vlogger.
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3.4 RESEARCH INSTRUMENT
The data for this study was gathered through the use of primary data using quantitative approach The distribution
of questionnaires was the primary technique utilized in this investigation. The questionnaire consists of 6 sections. Section 1
is all about respondent profile, demographic details such as gender, age, highest educational level, marital status, and current
wage. The following sections which are section 2,3,4,5 and 6 are the questions related to the research questions (effectiveness
of content quality, influencers’ consistency’s efficacy, and good influencer strategy). There are 16 questions in total for section
2,3,4,5 and 6. The structure of questions are short-text answer for respondents giving out their opinions, multiple choice answer
and 5-point linear scale, the questionnaire ranging from 1 (Strongly Disagree), 2 (Disagree), 3 (Neutral), 4 (Agree), and finally
to 5 (Strongly Agree). The surveys were sent to a random several social media platforms (Facebook, Instagram and Twitter
and WhatsApp) to gain responses from random Internet user, main targets are generation Y and Z. The acquired data is tested
and analysed using the Statistical Package for the Social Sciences (SPSS) after the data gathering phase.
3.5 CONCLUSION
The data collection technique and targeted respondents, as well as the study methodology, were discussed in Chapter 3.
SPSS software was used to analyze the information gathered. The findings achieved using the techniques used will be presented
in the next chapter.
■ 4.0 RESULTS AND DISCUSSION
4.1 INTRODUCTION
This chapter will explain the research, as well as the data obtained from the firms chosen for the interview, in order
to answer the study's research purpose and gain a better knowledge of it.
This study has found that younger generation (Generation Y and Z) prefer when the media uses digital medium to
market and advertise their products. To them, everything is at their fingertips which is a lot easier and can be assess almost
everywhere. Digital and influencer marketing is a new way to market products and services because the generations mentioned
are more familiar with advanced technology.
Data were collected using online survey between 1st September 2021 and 31st December 2021. A total of 129
respondents from multiple online platforms majorly Facebook, Instagram and WhatsApp were collected using the survey via
Google Form. The usable responses are 106 which are equivalent to the minimum sample size of the study. The valid responses
were identified from a qualifying question where respondents must have been interacted/heard/buy from Daughters of Malaya
to answer the survey. The findings shows that males and females accounted for 36.4% (39) and 63.6%
(68) respectively. Most of the respondents are aged 18-45 years old (94,4%) and only 6 people (5.6%) are 45 years old and
above. About their demographic profile, 48 people (44.9%) are degree holders, and 51 people (47.7%) with current wage of
less than RM 1000.
4.2 DATA COLLECTION
Multiple regression analysis (MRA) is a statistical method for evaluating the relationship between a dependent
variable and independent variables, according to Petchko (2018). Coefficients are the estimates derived by this statistical
method. The magnitude of regression coefficients represents how much each predictor variable contributes to the variation in
the dependent variable by itself after all other predictor variables in this study have been analytically removed. When it's
been well-established for a long time, the multiple regression analysis approach is extensively employed by most practitioners
and academicians (Shetty et al., 2020). Furthermore, multicollinearity is a statistical phenomenon in which two or more
predictor variables in a multiple regression model have a strong correlation (Jamal, 2017).
For indication, I have used acronyms for every variable. For my dependent variable, which is purchase decision, I
The results of this study are as follows:
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4.3 TEST OF NORMALITY
Normality tests can assist a researcher to assess the normality of the sample data collected from a normally distributed
population (Ghasemi & Zahediasl, 2012).
Tests of Normality a,d
Kolmogorov-Smirnov b Shapiro-Wilk
CQ Statistic df Sig. Statistic df Sig.
PD 3.00 .210 4 . .982 4 .911
3.25 .136 5 .200 * .987 5 .967
3.50 .209 6 .200 * .907 6 .415
3.75 .405 4 . .683 4 .007
4.00 .281 12 .009 .775 12 .005
4.25 .352 14 .000 .756 14 .002
4.50 .320 11 .002 .782 11 .005
5.00 .274 48 .000 .812 48 .000
Table 4.3 Tests of Normality
From Kolmogorov-Smirnov column in the table 4.2.1, the significance value for both variables are 0.127. Since
0.127 > 0.05 this means that the data of both variables are normally distributed.
If the significance value exceeds the alpha value (in this case, we use .05 as our alpha value), so there is no cause
to suppose our data deviates considerably from a normal distribution, so we can reject the null hypothesis that it's non- normal.
As you can see from the table above, these tests yield a significance value bigger than .05, indicating that our data is regularly
distributed.
4.4 TEST OF VALIDITY
Correlations
CQ C GI
**
**
CQ Pearson Correlation 1 .689 .710
Sig. (2-tailed) .000 .000
N 106 106 106
**
**
C Pearson Correlation .689 1 .967
Sig. (2-tailed) .000 .000
N 106 106 106
**
**
GI Pearson Correlation .710 .967 1
Sig. (2-tailed) .000 .000
N 106 106 106
Table 4.4 Test of Validity
Based on the valid Sig. (2-tailed) significant value of 0.000 < 0.05, it can be inferred that each of the questionnaires are
legitimate and may be tested with respondents.
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4.5 TEST OF RELIABILITY
Case Processing Summary
N %
Cases Valid 106 100.0
Excluded a 0 .0
Total 106 100.0
a. Listwise deletion based on all variables in the procedure.
Table 4.5 (a) First output (Case Processing Summary)
The number of valid data is 106 units, while the number of missing data is zero, as shown in the table above. This
indicates that all of the data has been processed.
Reliability Statistics
Cronbach's Alpha Based
Cronbach's Alpha on Standardized Items N of Items
.423 .719 4
Table 4.5 (b) Second output (Reliability Statistics)
As indicated in the table above, the Cronbach's Alpha value of 0.423 > 0.600 acquired from the output of
Dependability Statistics may be concluded that this research instrument is dependable, with a high degree of reliability, based
on the foundation of decision-making in the reliability test.
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4.6 TEST OF LINEARITY
ANOVA Table
Sum of Mean
Squares df Square F Sig.
PD * CQ Between Groups (Combined) 35.552 9 3.950 2.059 .041
Linearity .096 1 .096 .050 .823
Deviation from 35.456 8 4.432 2.310 .026
Linearity
Within Groups 184.168 96 1.918
Total 219.719 105
Table 4.2.4 ANOVA Table
The value of sig. Deviation from Linearity of 0.26 > 0.05 in the ANOVA Table above indicates that the variables of
influencer marketing and purchase decision have a linear connection. This indicates that if the factors of influencer marketing
change, the value of the purchase decision will change linearly.
4.7 LINEAR REGRESSION
Model Summary
M R Adjusted R Std. Error
odel R Square Square of the Estimate
1 .218 .048 .019 1.43240
a
a. Predictors: (Constant), GI, CQ, C
Table 4.7 (a) Model Summary
This table showed us R and R2. R value indicates the simple correlation and is 0.218 (the “R” column), which shows
a high degree of correlation. The R value (the “R Square” column) illustrates how much of the total variation in the dependent
variable. In this case, 40.8% can be explained, which is quite large.
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ANOVA
a
Model Sum of Squares df Mean Square F Sig.
b
1 Regression 10.438 3 3.479 1.696 .173
Residual 209.281 102 2.052
Total 219.719 105
a. Dependent Variable: PD
b. Predictors: (Constant), GI, CQ, C
Table 4.7 (b) ANOVA
The table shows that the regression model accurately predicts the dependent variable. What proof do we have for
this? Look for the "Sig." column in the "Regression" row. The statistical significance of the regression model that was
conducted is indicated below.
a
Coefficients
Standardiz
Unstandardized ed 95.0% Confidence
Coefficients Coefficients Interval for B
Lower Upper
Model B Std. Error Beta t Sig. Bound Bound
1 (Constan 4.186 1.311 3.194 .002 1.586 6.785
t)
CQ .243 .309 .108 .786 .433 -.369 .855
C 2.213 1.086 .774 2.038 .044 .059 4.366
GI -2.400 1.072 -.874 -2.239 .027 -4.527 -.274
a. Dependent Variable: PD
Table 4.7 (c) Coefficients
We can observe from this table that B-coefficients are the same as we saw in our scatterplot. These indicate the linear
regression equation that best predicts the influencer marketing factors from purchase decision in our sample, as demonstrated.
Second, for content quality (CQ), 0.059 for consistency (C), and 0.027 for good influencer strategy, the B coefficient is "Sig"
or p = 0.433. (GI). It is statistically significant when compared to zero.
4.7 MULTIPLE REGRESSION ANALYSIS
Multiple regression analysis (MRA) is a statistical method for evaluating the relationship between a dependent
variable and independent variables, according to Petchko (2018). Coefficients are the estimates derived by this statistical
method. The magnitude of regression coefficients represents how much each predictor variable contributes to the variation in
the dependent variable by itself after all other predictor variables in this study have been analytically removed. When it's
been well-established for a long time, the multiple regression analysis approach is extensively employed by most practitioners
and academicians (Shetty et al., 2020). Furthermore, multicollinearity is a statistical phenomenon in which two or more
predictor variables in a multiple regression model have a strong correlation (Jamal, 2017). Whenever tolerance
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levels are smaller than 0.1, multicollinearity may be evaluated by looking at the correlation between variables and computing
tolerance values and the variance inflation factor (VIF). When there is no link between independent variables with values
larger than 95%, multicollinearity occurs (Lavery et al., 2019)
a
Coefficients
Standardiz
ed
Unstandardized Coefficient
Coefficients s
Model B Std. Error Beta t Sig.
1 (Consta 4.186 1.311 3.194 .002
nt)
CQ .243 .309 .108 .786 .433
C 2.213 1.086 .774 2.038 .044
GI -2.400 1.072 -.874 -2.239 .027
Table 4.8 Results of multiple regression
The multiple regression analysis result in Table 4.8 reveals that two independent variables have p value less than
0.05 and other two independent variable has p value more than 0.05. Therefore, content quality (CQ) value (p = 0.786) indicates
that it has no relationship with the purchase decision. While on the other hand, consistency (C) and good influencer strategy
(GI) has significance value (0.44 and 0.27 respectively) shows that the values are more than 0.05 which indicates these two
variables have a positive relationship with purchase decision.
■ 5.0 CONCLUSION
5.1 INTRODUCTION
Since social media and the internet are becoming more widely used, the emergence of social media celebrities (also
known as influencers) is becoming more widespread. As brands and marketers increasingly turn to social media influencers as
brand ambassadors, it has become critical to verify the success of influencer marketing as a way of promoting brands and sales.
Overall, social media content, through use of influencer marketing in lifestyle public relations projects has cracked down the
barrier between the customer, the product, and followers. Marketing to brand customers was arguably the world until the
introduction of social influencer marketing. A customer could only view an item through print ads, posters, radio advertising,
and ad campaigns before the advent of the internet. Generations that are synonym with influencer marketing are of course,
Generation Y and Z. They are more advanced in terms of technology and development and more alert to the changes happening
to the world. The marketers have more opportunity to grow their business because they know their impact and their target
customers.
5.2 SUMMARY OF THE STUDY
From the study, it can be concluded that influencer marketing has a positive impact on Daughters of Malaya skin
care product purchasing decision. It also shows that influencer marketing has influenced most of Generation X and Y purchase
decision. The study objectives are to investigate the effectiveness of content quality to influence Generation Y and Z purchase
decision towards influencers marketing, to identify the consistency of influencers' interactions in influencer marketing to
influence younger target markets and to study the impact of good influencers strategy in promoting products or services in
social media are achieved by conducting an online survey to those who have heard/used/interacted with Daughters of Malaya.
To draw for us a conclusion for the study, firstly 92.5% of the respondents agreed that influencers are important for business
and the rest are neutral and disagreed with the statement. 98.1% of them strongly agreed that good influencers’ content will
help the influencers reach more viewers/target audiences. Every respondent agreed that current trends are vital for influencers
to apply in their content.
Next, based on the responses, we found that current trends are vital for influencers to apply in their content because
current trends are where most people are trying to participate in and holds the biggest audience. In terms of
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spreading information or promotional posting, influencers need to use a simple but significant text/talk. Customers/viewers
don’t like lengthy ads, they prefer short one so all marketers need to use short and simple sentences in promoting their products
or services.
Moreover, people agreed that influencers that stick to a regular publishing schedule are effectively telling their
audience what to expect from them and staying up-to-date and having a theme on social media will lead to a success of
influencer and may bring more sales to the company
5.3 RESEARCH LIMITATION
There are some limitations in conduction this research, first, the data that was collected were collected during the
pandemic, so the questionnaires need to be given online. The Google Form data is fine, but we do not know the honesty of
respondent in answering the survey.
5.4 RESEARCH RECOMMENDATION
There are some recommendations for future studies. The study’s target respondent can be more than 150 so that
data collection will be clearer and better. Next, the data analysis might be replicated in future study on a greater scale.
5.5 ACKNOWLEDGEMENT
The author is thankful to Mr. Ahmad Sharifuddin lecturer at University Teknologi Malaysia for his supervision and
advice and Dayana Zul, the founder of Daughter of Malaya, a huge collaborator for this project, without which the article could
not be published. The author also wishes to thank the many reviewers who assisted in the revision of this research.
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6.0 REFERENCES
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2. Arens, E. (2019, August 8). 7 Instagram Best Practices to Build Your Audience. Retrieved from Sprout Social:
https://sproutsocial.com/insights/instagram-best-practices/
3. Bilgihan, A. (2016). Gen Y customer loyalty in online shopping: An integrated model of trust, user experience and
branding. Computers in Human Behavior, 103-113.
4. Geyser, W. (2021, June 14). What is an Influencer? – Social Media Influencers Defined [Updated 2021]. Retrieved
from Influencer Marketer Hub: https://influencermarketinghub.com/what-is-an-influencer/
5. Heath, D. (2017, September 26). What Are the Positive Effects of the Internet on Business? Retrieved from bizfluent:
https://bizfluent.com/info-8236794-positive-effects-internet-business.html
6. Insider, C. M. (n.d.). Content Marketing Insider. Retrieved from What Is Content Marketing?:
https://contentmarketinginstitute.com/what-is-content-marketing/
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Instagrame-Ako-vyuzivaju-vplyvni-Slovaci-svoje-socialne-siete
8. Landsverk, K. H. (2014). The Instagram Handbook. London: Prime Book.
9. MALAYSIA, S. K. (2017, February 10). SURUHANJAYA KOMUNIKASI DAN MULTIMEDIA MALAYSIA.
Retrieved from Internet User Survey 2017: https://www.mcmc.gov.my/skmmgovmy/media/general/pdf/mcmc-
internet-users-survey-2017.pdf
10. Mart Ots, C. A. (2016). Influencers tell all? Unravelling Authenticity and Credibility in a Brand Scandal. Blurring
the lines: Market-driven and democracy-driven freedom of expression, 153-161.
11. Meikeng, Y. (2018, July 15). TheStar online. Retrieved from ‘Liked’ by many:
https://www.thestar.com.my/news/nation/2018/07/15/liked-by-many-social-media-influencers-are-a-force-to-be-
reckoned-with-in-promoting-businesses-today/
12. Olenski, S. (2017, September 35). The Impact Of Live Streaming On Influencer Marketing. Retrieved from Forbes:
https://www.forbes.com/sites/steveolenski/2017/09/25/the-impact-of-live-streaming-on-influencer-
marketing/?sh=64b79469e607
13. Rumelt, R. P. (2012). Good Strategy/Bad Strategy: The Difference and Why It Matters. Strategic Direction.
14. Tatum, A. (2016, August 18). Why Consistency is Key for your Marketing Strategy. Retrieved from Captevrix:
https://www.captevrix.com/news/why-consistency-is-key-for-your-marketing-strategy
15. Watkins, M. D. (2007, September 10). Demystifying Strategy: The What, Who, How, and Why. Retrieved from
Harvard Business Review: https://hbr.org/2007/09/demystifying-strategy-the-what
16. Zdenka KÁDEKOVÁ, M. H. (2018). INFLUENCER MARKETING AS A MODERN PHENOMENON
CREATING A NEW FRONTIER OF VIRTUAL OPPORTUNITIES. Communication Today, 2018, Vol. 9, No. 2,
9.
.
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FYP PROPOSAL
AHIBS UTM SKUDAI
FACTORS INFLUENCING CUSTOMER SATISFACTION: CASE STUDY OF
AWANAZSTYLE SDN. BHD.
MUHAMAD ABDULQAYUM BIN MOHD SHAHIMI, DR. MAZILAH BINTI ABDULLAH
Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru
*Corresponding author: [email protected], [email protected]
Abstract
This study intended to investigate the factors influencing customer satisfaction among those who already purchased a product from a boutique named
Awanazstyle Sdn. Bhd. There were four antecedents examined in this study: customer experience with shopping environment, customer experience with staff
service, customer experience with shopping procedure, and customer experience with the product. Through observation of the online review from the
Awanazstyle Sdn Bhd, the researcher identified several negative feedback that might lead to customer satisfaction. This study used a quantitative research
method with a purposive sampling method, yielding 118 samples respondents, which consisted of only the customers of Awanazstyle Sdn. Bhd. Multiple
regression analysis were applied in this research to determine the relationship between the factors that influenced customer satisfaction among the customers
of Awanazstyle Sdn. Bhd. The findings of this investigation indicated that the specific aforementioned four (4) factors influence customer satisfaction except
for customer experience with staff service in the online shopping setting through Facebook.
Keywords: Customer Experience with Shopping Environment, Customer Experience with Staff Service, Customer Experience with Shopping Procedure,
Product Experience, Customer Satisfaction
■ 1.0 INTRODUCTION
The Internet is now applicable to every economic activity (Ma et al., 2020). Searching for information regarding a product or purchasing
them The Internet is now applicable to every economic activity (Ma et al., 2020). Searching for information regarding a product or purchasing
them through the online platform has become the standard norms (TNS Interactive, 2002). The global increase in the Internet usage has
resulted in a new consumer behaviour phenomenon, with the customers' interests switching to online shopping (Naseri et al., 2021).
Modernization has forced many industries to adapt to the current trend of customer buying behaviour. The fashion industry is one of the most
dynamic industries with high growth rate (Gazolla et. al., 2020). Many fashion brands, such as Zara, H&M, Uniqlo, and other well- known
brands, have already established their own website and app-based retailing services.
The constraint of movement during the COVID-19 pandemic in Malaysia due to the Movement Restriction Order (MCO) imposed by the
Government of Malaysia has led to increased online purchasing activities. The Department of Statistics Malaysia reported through the
Malaysia Economic Performance for First Quarter 2021 that the postal and courier recorded a double-digit growth because of the increase
in online shopping during MCO 2.0. Statista (2021) surveyed the Malaysian online shopping behaviour in 2020 and found that 90 per cent
of respondents preferred e-commerce as the platform to shop online, followed by social media (31 per cent) and brand's website or online
specialty stores (19 per cent). Therefore, the primary purpose of this study was to explore factors influencing customer satisfaction when
purchasing online.
■ 1.1 BACKGROUND OF THE PROBLEM
Consumers are increasingly turning to the Internet to buy products and services, to acquire product information, and even to browse for
fun (Karim, 2013). Online shopping refers to the act of making a purchase through the Internet by utilising a device, such as a laptop,
computer, or smartphone to complete the transaction. To engage in online purchasing, one must first get familiar with the Internet (Lissitsa
& Kol, 2016). In an online purchase, the consumer must have an access to the Internet as well as a legitimate form of payment on hand
(Sunitha, C K , & Gnanadhas, 2014). Consumers may profit from the ease, variety, and cheap prices offered by online shopping. They may
also benefit from the personalised attention and quick access to information offered (Antonijevic et al., 2014).
As a result of the Covid-19 virus, which has spread all over the globe, Internet buying has emerged as the new standard for consumers.
As a result, people have begun to gravitate toward e-commerce methods, which are widely regarded as the only way by which the nation's
population will be able to survive the current pandemic crisis (Hasanat et al., 2020). Malaysia had to shut practically all industries during the
initial phase of the pandemic, with the exception of supermarkets, public markets, food shops, and businesses that sold essential commodities
as a result of the Movement Control Order (MCO), which was in effect during this period (Tang, 2020).
When it comes to online shopping, there are a variety of elements that might impact customer satisfaction. Consumers' demographics
might determine whether they are satisfied or dissatisfied with purchases. The customer satisfaction is a key factor in determining a company's
ability to provide pleasure for its customers. To express their feelings, online customers are more likely to make public comments or to
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424 Qayum & Mazilah (2021)
leverage the power of viral marketing on social media platforms. In order to retain their reputation as a seller, the company must constantly
strive to provide their best effort whenever they engage with consumers.
As the practice of online commerce expands in popularity, a complete and in-depth knowledge of the aspects that influence consumer
satisfaction becomes more necessary (Tandon et al., 2017). Because of the enormous number of possible customers, it is challenging for the
online sellers to determine what they want and need from the people they sell to. It is critical to discover the characteristics that lead clients
to favour online shopping over traditional shopping. Awanazstyle Sdn Bhd, the current research case study is a Muslimah apparel Shop that
are currently growing. Figure 1 indicate the company SWOT Analysis.
Figure 1: SWOT Analysis
Through observation of the online review from the Awanazstyle Sdn Bhd, the researcher identified several negative feedback that might
lead to customer satisfaction. The summary of the observation is indicated in the below Figure 2.
Figure 2: Fishbone Analysis
Therefore, the research sought to present empirical evidence on the elements that impacted customer satisfaction. This was assessed
based on criteria, such as the customer's experience with the shopping environment, the customer's experience with the staff service, the
customer's experience with the shopping procedure, and the customer's experience with the product.
1.1 RESEARCH OBJECTIVES
i. To examine the influence of experience with shopping environment on customer satisfaction.
ii. To examine the influence of experience with staff service on customer satisfaction.
iii. To examine the influence of experience with shopping procedures on customer satisfaction.
iv. To examine the influence of product experience on customer satisfaction.
■ 2.0 THEORY AND HYPOTHESIS
2.1 CUSTOMER SATISFACTION
The term "satisfaction" is often used to refer to “a customer’s overall evaluation of the performance of an offering” (Gustafsson et al.,
2005). Customer satisfaction is a subjective or emotional evaluation made by consumers over their use of a good or service that suits their
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requirements and demands (Fajarwati et al., 2004). Satisfaction is a result of people’s feelings upon encountering the service or product
experience whether it is an amusement or despondency after comparing it with their expectations. Pei et al. (2020) found that there were four
factors of customers experience that affected customer satisfaction: experience with the shopping environment, staff service, shopping
procedure and product experience. Customer dissatisfaction is essential to be recognized so that a business can sustain itself because the
effects of customer dissatisfaction are greater than the effects of customer satisfaction towards the business (Kim et al., 2019). A business
that does not pay attention to its customer satisfaction level will not be successful whether it is a governmental or private organization
(Ghasemi et al., 2017).
In addition, according to Park et al. (2020), customer satisfaction is a powerful instrument that keeps customers for the long-term, and
it has been proven that only a few businesses survive without maintaining their customer satisfaction. To conclude, customer satisfaction is
a subjective emotional response to purchasing, shopping, or the activity of purchasing and acquiring, as well as a user experience evaluation
parameter used to evaluate the intended product qualities with the genuine values (Pei et al., 2020).
2.2 CUSTOMER EXPERIENCE
Each exchange of services leads to a client experience irrespective of its type and shape (Schmitt et al., 2015). The recent practice in
business describes customer experience as including “all elements of a company's offer — of course, the quality of customer service but also
advertising, packaging, product and service characteristics, simplicity of use and dependability” (Lemon & Verhoef, 2016). Management
thinks that customer experience is key to competitiveness (McCall, 2015). Marketing experts describe it as the basic foundation of the
management of marketing (Homburg et al., 2017). In some studies, the customer experience intersects with results factors, such as satisfaction
or value, while in others, for example, it is an independent variable that leads to satisfaction (Becker & Jaakkola, 2020).
In retail, the present market position is strong rivalry, high consumer needs and complicated technology (Pei et al., 2020). For retailers,
the customer experience has become essential to execute diversified strategies and lasting unique strength (Artusi et al., 2020). Since clients
live in an economic environment, businesses' competitive advantages are derived from a product- or service-based experience that attracts
consumers (Bhattacharya & Srivastava, 2020). Hence, actively directing and providing a pleasant emotional experience in the buying process
result in high levels of consumer satisfaction and loyalty (Pei et al., 2020).
2.2.1 Customer Experience with Shopping Environment and Customer Satisfaction
According to Levy and Weitz (2012), creating an aesthetically pleasing atmosphere is a critical retail technique for eliciting favourable
emotional reactions and influencing customer purchasing behaviour (El-Adly & Eid, 2016). If retail customers are seen as shoppers, they
perceive the website as a shopping environment and not as a computer-mediated interface as its technical characteristics (Connell et al.,
2019). Unlike the physical retail store, an online shopping environment is more likely to be spotted on by the consumers' eyes in terms of
the user interface, website design, layout and others. Consequently, online purchasing settings have been more cognitively interpreted than
physical surroundings (Demangeot & Broderick, 2007).
An online shop can be on many types of platforms instead of only websites. To date, the development of online shops grows
exponentially. The website is a key part of the current (and likely future) omnipresent shopping environment, in which consumers may
interact with retail companies via several channels: websites, retail locations, social media and apps, and direct marketing (Verhoef et al.,
2015). From time to time, online shops keep evolving, and the design is not focusing on looks, but aiming to ease the process with a lot of
functions and features for the consumers. With the growth of the e-commerce industry, established merchants are constantly considering
enhancing their websites to attract more consumers while new shops create websites that are not only aesthetically effective, but also distinct
(Pappas et al., 2018).
Web design is essential to demonstrate the online marketer expertise to provide comfortable e-commerce environment for consumers,
which affect their satisfaction (Park & Kim, 2003). To attract more online shoppers, it is vital for a shopping website to evaluate how the
online shopping environment may be made more attractive to the customer base (Lin & Sun, 2009). Therefore, the researcher proposes the
following:
H1: Customer experience with an online shopping environment has a significant positive influence towards customer satisfaction.
2.2.2 Customer Experience with Staff Service and Customer Satisfaction
Employees in the retail sector have a responsibility to provide value for customers and to offer excellent service (Judd, 2003).
According to Wu et al., the consumer satisfaction is influenced by a variety of variables (Wu et al., 2020). Customer satisfaction is highly
influenced by the quality of service (Ying et al., 2021). When it comes to customers, the workers represent both the companies for which
they work as well as the products or services that they offer. As mentioned by Young et al. (2009), many businesses depend on their
employees to develop and provide services or goods. Customers' happiness with the services they get increases their propensity to make
repeat purchases (Dabholkar & Abston, 2008).
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426 Qayum & Mazilah (2021)
Moreover, since retailers often confront a conflict between the company’s expectations and the customers’ requirements, they must
manage the competing connections that exist among companies, direct service providers (employees), and customers (Weatherly & Tansik,
1992). In many ways, the right of control that businesses give to their employees is linked to the right of control that employees grant to
consumers (Pei et al., 2020). As a result of meeting the staff members' desire for control, the staff also give consumers the right to exercise
control. When employees do not have a control over their work, they will resort to administrative means to acquire it. As a result, the
customers' right to control is diminished, if not completely ignored, resulting in lower customer satisfaction (Ku, 2019). Therefore, the
researcher proposes the following:
H2: Customer experience with staff service has a significant positive influence towards customer satisfaction.
2.2.3 Customer Experience with Shopping Procedure and Customer Satisfaction
The purchasing process must be as competent and efficient as possible to achieve the maximum client pleasure, and the effectiveness
of a store's operation affects the competitiveness of the business in the marketplace (Artusi et al., 2020). Shopping operations strategy and
management efficiency have an impact on both the quality of services provided and the success of a retail establishment. The goal of
improving the customer experience is to better meet the expectations of the customers. Unsatisfactory efficiency of organizational operations
when shopping leads to an unpleasant customer experience and high levels of consumer discontent (Chen et al., 2020). As a result, the
researcher proposes the following:
H3: Customer experience with shopping procedures has a significant positive influence towards customer satisfaction.
2.2.4 Customer Product Experience and Customer Satisfaction
When it comes to the connection of customer experience and customer satisfaction in shopping, rewards and pleasant emotions excite
consumers, and may contribute to the overall customer satisfaction (Varki & Lecturer, 1997). Customer satisfaction, product attention, and
brand dependability may all be improved by providing a positive product experience according to Zarantonello & Schmitt (2010). Learning
about the link between quality and customer satisfaction has provided some insights into assessing the overall degree of satisfaction with a
product (Mumtaz et al., 2011).
In contrast to the notion of an emotional relationship, product experience, rather than emotional connection, is most likely the
consequence of an emotional connection while emotion is the result of internal stimulation (Šerić et al., 2020). The view that customer
satisfaction is an expression of emotions that may be either good or negative, and either short- or long-term has been held by all of the
researchers. The research finds that product experience, instead of basic cognitive activity, is an analytical and convergent mental experience
at a higher degree in nature than a simple cognitive development. This will culminate in brand assessment, which will serve as an essential
foundation for brand attitude and repeat purchasing behaviour among consumers. Therefore, the researcher proposes the following:
H4: Customer experience with product experience has a significant positive influence towards customer satisfaction.
2.3 RESEARCH FRAMEWORK MODEL
The study framework for this research is shown in Figure 1. The function aims to examine the connection between the independent and
dependent variables. The framework in Figure 1 was modified from Pei et al. (2020), who emphasized the importance of the customer's
experience in determining customer satisfaction.
Figure 3 Research framework for the factors influence customer satisfaction.
■ 3.0 RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
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427 Qayum & Mazilah (2021)
The research design of this study was a descriptive quantitative research design. This study used survey method to collect data from
prospect respondents.
3.2 POPULATION AND SAMPLING
The chosen company for the case study is Awanazstyle Sdn Bhd due to the growing trend of casual Muslimah sports apparel and higher
awareness and concerns towards health post-Covid. Awanazstyle Sdn. Bhd. had a total of 365,735 followers on the Facebook page.
Nevertheless, owing to the sensitivity of the information, the number of their present consumers would not be released. The respondents for
this research were drawn from the client base, and they were gathered with the assistance of the company's workers who distributed the
questionnaire. The customers of Awanazstyle Sdn. Bhd. came from a diverse range of backgrounds, and ranged from 21 years old to 51 years
old and above. The purposive sampling was chosen in this study by the researchers. A purposive sampling strategy was adopted in the data
gathering, with the qualifying questionnaire being sent to 125 Awanazstyle Sdn. Bhd. customers through WhatsApp. The sample size is
based on the Cohen Table (1992) appropriate for 4 independent variables is 118 respondents. However, the researcher considered extra
respondents as suggested by the previous researcher; 10% extra is acceptable. Cohen Table is an appropriate method for Multiple Regression
Analysis as the current study.
3.3 RESEARCH INSTRUMENT
There were six sections to the questionnaire. Section A consisted of four demographic questions. Section B, C, D, E and F consisted of
the customer experience (experience with shopping environment, staff service, shopping procedure and product experience) and customer
satisfaction. Furthermore, the scale measures were based on a five-point Likert scale as stated in Table 1 below:
The pilot testing findings were interpreted as data analysis for scale measurement utilising the Cronbach Alpha, including 30 samples
from the population group and expert review by Dr. Zaidahwati, a Marketing lecturer. Skewness and kurtosis normality were used to assess
data and item normality in the actual data. The researcher then employed univariate and multivariate outliers to find the data's outliers. The
researcher utilized tolerance and variance inflation factor (VIF) to measure multicollinearity. Finally, the multiple regression analysis was
used to determine the influence of experience with shopping environment, experience with staff service, experience with shopping procedure,
and product experience on customer satisfaction.
■ 4.0 RESEARCH FINDING
4.1 Profile of Respondents
The demographic variables were respondents' gender, age (ranging from 21 to 51 and above, with the majority between the ages of 31 and
40), level of education (ranging from SPM to PhD, with the majority holding a Bachelor Degree), and monthly income (range from less than
RM1000 to RM4001 and above with majority in the RM4001 and above per month).
4.2 Reliability Test
Cronbach Alpha tests were performed for each independent and dependent variable by the researchers. Table 3 displays the findings:
Experience with the Shopping Environment (0.716), Experience with Staff Service (0.814), Experience with the Shopping Procedure (0.802),
Product Experience (0.774), and Customer Satisfaction (0.940). The results demonstrated that the Cronbach alpha was adequate for all
variables. To be more precise, Hair et al. (2014) suggested that the composite reliability values ranging from 0.60 to 0.70 were acceptable in
exploratory research whereas values ranging from 0.70 to 0.90 might be considered satisfactory in more advanced phases of study.
Table 1: Cronbach Alpha Result Table
Variables Cronbach’s Alpha N of Items
Experience with Shopping Environment .716 3
Experience with Staff Service .814 3
Experience with Shopping Procedure .802 4
Product Experience .774 4
Customer Satisfaction .940 5
427
428 Qayum & Mazilah (2021)
4.3 Validity Analysis
The researcher used normality analysis as a fundamental correlation rule throughout the research. This normality test, which is based on
the rule of thumb, analyses an item's normality using the skewness and kurtosis measures. A level of 2 to -2 is deemed acceptable (Gravetter
& Wallnau, 2013). The skewness and kurtosis findings for the independent and dependent variable items are shown in Table 4. Therefore, a
number of items have surpassed the allowed range: Experience with Staff Service (SS3: I find that the staff of Awanazstyle always answer
my inquiries = Skewness (-2.37), Kurtosis (8.80)), Experience with Shopping Procedure (SP3: I find that there is review of Awanazstyle’s
product = Kurtosis (2.78)) and Customer Satisfaction (CS3: I am very satisfied with the speed of delivery after shopping online from
Awanazstyle = Kurtosis (4.17)). As they broke the rule of thumb, these items were removed.
Table 2: Skewness and Kurtosis Table
Variables Code Questions Code N Skewness Kurtosis
Experience with Shopping Environment (SE) SE1 125 -0.651397 0.787444
SE2 125 -1.234156 0.570828
SE3 125 -0.472078 -1.08788
Experience with Staff Service (SS) SS1 125 -1.084702 -0.26399
SS2 125 -0.868216 -0.49272
SS3 125 -2.367454 8.802668
Experience with Shopping Procedure (SP) SP1 125 -0.425073 -1.40504
SP2 125 -0.868153 -0.7527
SP3 125 -1.548906 2.780507
SP4 125 -0.636549 -1.15195
Product Experience (PE) PE1 125 -0.943119 1.503634
PE2 125 -0.88018 -0.3264
PE3 125 -1.125574 1.008899
PE4 125 -0.976778 0.872076
Customer Satisfaction (CS) CS1 125 -0.868153 -0.7527
CS2 125 -0.788102 -0.90512
CS3 125 -1.71708 4.169039
CS4 125 -0.890009 -0.193
CS5 125 -0.749225 -0.97364
4.4 Multicollinearity Analysis
Multicollinearity describes the tolerance and variance inflation factor (VIF). It is recommended that tolerance exceeds 0.2 (Garson, 2012)
and VIF is less than 10 (Pallant, 2015) in order to be acceptable. Table 5 demonstrates that all independent variables have tolerance values
of more than 0.2 in the tolerance column and fewer than 10 in the VIF column, indicating that they are all acceptable.
428
429 Qayum & Mazilah (2021)
Table 3: Multicollinearity Analysis
Variables Collinearity Statistics
Tolerance VIF
Experience with Shopping Environment (SE) 0.589 1.699
Experience with Staff Service (SS) 0.384 2.606
Experience with Shopping Procedure (SP) 0.301 3.317
Product Experience (PE) 0.534 1.873
a. Dependent Variable: Customer Satisfaction
4.5 Multiple Regression Analysis
The regression analysis summary is shown in Table 6. The value R was 0.597, meaning that 59.7% of the variation existed in the
Customer Satisfaction could be explained by Experience with Shopping Environment, Experience with Staff Service, Experience with
Shopping Procedure, and Product Experience. The R square suggested that the relationship was positive, with a score of 59.7% (Cohen,
1988).
Table 4: Summary of Regression
Model R R Square Adjusted R Square Std. Error of the Estimate
a
1 .772 0.597 0.583 0.29257
a. Predictors: (Constant), Experience with Shopping Environment, Experience with Staff Service, Experience with Shopping Procedure,
Product Experience.
4.6 Summary of Hypothesis
Table 7 demonstrates that each independent variable is supported, except for the Experience with Staff Service, which is not supported
with a value of 0.301. This value violates the significant value requirement of less than 0.05, 0.005, or 0.001. Hence, the customer satisfaction
was influenced by three independent variables.
Table 5: Hypothesis Testing
Variables Beta t Sig. Decision
Experience with Shopping Environment (SE) 0.162 2.126 0.036 Supported
Experience with Staff Service (SS) 0.098 1.038 0.301 Not Supported
Experience with Shopping Procedure (SP) 0.197 1.853 0.066 Supported
Product Experience (PE) 0.456 5.697 0.000 Supported
a. Dependent Variable: Customer Satisfaction
■ 5.0 DISCUSSION
The significant positive influence of customer experience with an online shopping environment on customer satisfaction is demonstrated.
The results significantly supported H1, which states that customer experience with an online shopping environment significantly influences
customer satisfaction. The results revealed that the p-value was 0.036, which was below the 0.05 threshold, and that the β value = 0.162,
which was within acceptable limits. Pei et al. (2020) conducted a study in which they established a link between the customer's experience
with an online shopping environment and customer satisfaction. This result is consistent with their findings. According to Liu et al. (2008),
an online purchasing environment implies that the items are intangible, meaning that buyers cannot touch, taste, see, smell, or listen to the
goods in the same way they would in a conventional setting.
429
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