Purchase Intention Model through E-Wom: Social Media Analysis on Purchasing Msmes Products in Bungo Regency

Istianingsih, Nanik and Harahap, Erwin H and Susriyanti, Susriyanti and Ali, Hapzi (2020) Purchase Intention Model through E-Wom: Social Media Analysis on Purchasing Msmes Products in Bungo Regency. TEST Enginering & Management, 83. pp. 9024-9032. ISSN 0193-4120 (Unpublished)

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Abstract

In 2017 the number of SMEs in Indonesia was 62.9 million then decreased in 2018 there were 59.2 million, but 7.7% registered using online marketing technology whereas the government is targeting 12.8% of SMEs to be technology-based. This impact for Indonesia's competitiveness in the world at number 40 and lower than Singapore, Malaysia and Thailand. Technological developments open up business opportunities to promote through various networks such as social media and the power of Electronic Word of Mouth (e-WOM) in influencing the interest in buying goods / services. The research objective empirically examines the effect of social media on buying interest through e-WOM on MSME products. This research used Path Analysis with data collection techniques through questionnaires and interviews with a sample of 42 respondents. The results of this study prove that social media (X) and e-WOM (Y), have a significant effect on Purchase Intention (Z) either partially or simultaneously. Keywords:Purchase Intention, e-WOM and Social Media

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