EFFECTS OF SOCIAL MEDIA ON PURCHASE INTENTION Case: Starbucks Indonesia Official LINE Account)

According to Tetra Pak Index 2017 Reort, it recorded that there were around 132 millions of internet in Indonesia, which almost half of it were social media entusiast (around 40%). Tetra Pak Index also revealed there were more than 106 millions of Indonesian people who use social media every month,which 85 of them access it through their mobile phone. With the increasing number of social media users from year to year, many business consider to use Social Media as a platform to do customer service, get new customers and also to promote their products.

Other fact according to Hubspot, 92% of marketers in 2014 claimed that social media marketing was important for their business, with 80% indicating their efforts increased traffic to their websites. Also according to Social Media Examiner, 97% of marketers are currently participating in social media—but 85% of participants aren’t sure what social media tools are the best to use. This demonstrates a huge potential for social media marketing to increase sales. Not only increasing sales, social media also can be a good platform to connect with Customers. People view Social Media as social networks, not marketing machines. As a result, they’re less likely to see what you post as an advertisement and will be more likely to hear what you have to say.

Starbucks is the biggest coffee shop in the world that headquartered in Seattle, Washington. Until March 2008, It has 16.446 shops in 44 countries. From the first opening in

Seattle, Starbucks’ growth was very fast. In the year of 1990, Starbucks opened many shops. This growth keept in creasing until the year 2000s. In last March of 2008, Starbucks has 16.222 shops. Starbucks Coffee Indonesia opened its first store in Plaza Indonesia, 17 May 2002. As of 10 April 2013, Starbucks Coffee Indonesia is now in 147 different locations all around major cities (12 cities), connecting to Indonesians one cup at a time.

Starbucks keeps increasing their strategy to gain more customers. Starbucks has choosen LINE as a platform. In Starbucks Indonesia Official LINE Account, it provides informations about the products, the newest menu. The most interesting is, it provides discount vocher for its followers. Customer can directly use it at every Starbucks shops even they have to wait the long queue.

Social Media

Social media originated as strictly a personal tool that people used to interact with friends and family but were later adopted by businesses that wanted to take advantage of a popular new communication. Through social media, anyone with internet access can interact with millions of people online. The use of social media networks to develop and manage an organization’s message. As a digital strategy, social media optimization can be used to increase awareness of new products and services, connect with customers, and ameliorate potential damaging news.

Purchase Intention

Purchase intention is a kind of decision-making that studies the reason to buy a particular brand by consumer . Purchase intention can be defined as a possibility that a customer will buy a certain product. The greater the intention, the probability of buying a product will be higher, though not necessarily the customer will actually buy it (Vahidreza, Akbariyeh&Hamid, 2015). In addition, purchase intention is when some information reaches a certain level, consumers will begin to assess and enter into the evaluation process, and make purchasing decisions after comparing and considering. The most prominent factor is the satisfaction factor not only from the good quality of the product but also influenced by other factors such as service during and after purchase, paying and other ways. The last stage of complex decision making includes purchasing the desired brand, evaluating the brand when consumed and store this information for future use (Vahidreza, Akbariyeh&Hamid, 2015).

Correlation between Social Media and Customer’s Purchase Intention

As social media can influence customers’ decision to purchase the product of company (Mehdi, Reza& Leila, 2014). In this emerging modern age, social media is not only used as a medium of communication, but also as a promotional medium because it offers many advantages. Social media is the most powerful medium for promotional media, even social media is also used as an interactive marketing tool, service, and building relationships with customers and prospects. That’s why there is a significant positive relationship between social media and consumer purchase intention.

References

I., Devi Krisnan, U. and Abdul Halim, N. (2017). Social Media in Food and Beverages Industry: Case of Klang Valley, Malaysia. International Journal of Business and Management, 12(6), p.121.
Grizane, T. and Jurgelane, I. (2017). Social Media Impact on Business Evaluation. Procedia Computer Science, 104, pp.190-196.
Mirabi, D., Albariyeh, H. and Tahmasebifard, H. (2018). A Study of Factors Affecting on Customers Purchase Intention Case Study: the Agencies of Bono Brand Tile in Tehran, [online] 2(1). Available at: http://www.jmest.org/wp-content/uploads/JMESTN42350395.pdf.
Starbucks Coffee Company. (2018). Starbucks In Indonesia | Starbucks Coffee Company. [online] Available at: http://www.starbucks.co.id/about-us/our-heritage/starbucks-in-indonesia [Accessed 14 Jan. 2018].
Putra, e. and lengkapku, L. (2018). MENGENAL LEBIH JAUH STARBUCKS COFFEE. [online] Edwinnotaris.blogspot.co.id. Available at: http://edwinnotaris.blogspot.co.id/2013/09/mengenal-lebih-jauh-starbucks-coffee.html [Accessed 14 Jan. 2018].
detikinet. (2018). 132 Juta Pengguna Internet Indonesia, 40% Penggila Medsos. [online] Available at: https://inet.detik.com/cyberlife/d-3659956/132-juta-pengguna-internet-indonesia-40-penggila-medsos [Accessed 14 Jan. 2018].
The Balance. (2018). What is Social Media?. [online] Available at: https://www.thebalance.com/what-is-social-media-2890301 [Accessed 14 Jan. 2018].