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Social Media Marketing, Perceived Service Quality,
Consumer Trust and Online Purchase Intentions
Bobby Chan1, Edi Purwanto2*, Tonny Hendratono3
Graduate School of Management, Bunda Mulia University, Jakarta, Indonesia1
Department of Management & Jaya Launch Pad, Universitas Pembangunan Jaya, Indonesia2
Ambarrukmo Tourism Institute, Yogyakarta, Indonesia3
Corresponding author: 2*
ABSTRACT— This study aims to measure the effect of social media marketing and perceived service quality
on online purchase intention that is mediated by consumer trust toward Airpaz.com. The sample obtained in
this study was 214 samples. Respondents are customers who had made transactions at Airpaz.com using
payments in Indonesian Rupiah. Partial least squares structural equation modeling (PLS-SEM) was used to
analyze the collected data. The outer model test proved the reliability and validity of the constructs, as well
as the inner model, proved the hypotheses. The results showed that as partial social media marketing has a
positive and significant effect on consumer trust, it has no significant impact on online purchase intention.
The perceived service quality has a positive and significant impact on consumer trust and online purchase
intention. Likewise, consumer trust has a positive and significant effect on online purchase intention. The
hypotheses are supported since social media marketing, and perceived service quality has a positive and
significant impact on online purchase intention, mediated by consumer trust. The findings can direct
Airpaz.com or other online retailers to increase their promotion and marketing by using social media. And
also, they improve their service quality to create customer trust and online purchase intention, especially for
Airpaz.com, which has a smaller market share in Indonesia and smaller social media followers compared to
its competitors. These findings showed that social media marketing was not always directly influenced by
online purchase intention, but the correlation needs the trust variable as the mediator.
KEYWORDS: Social media marketing, service quality, consumer trust, online purchase intention, airline
ticket reservation.
1. INTRODUCTION
Online transactions continue to increase in Indonesia. The Nielsen study showed that more than half (55%) of
online consumers in the Asia Pacific prefer to buy new products from well-known brands rather than switching
to new brands. According to APJII (Indonesian Internet Service Providers Association), the internet seems
increasingly used by entrepreneurs to improved their business performance. Most business sectors that use
the internet are the trade and services sectors. According to Nielsen Global Survey of E-Commerce, about
half of Indonesian consumers had intentions to buy airplane tickets online (55%). Make online hotel
reservations and travel agencies (46%), four out of ten consumers (40%) have intentions to buy electronic
books (e-books). Almost four out of ten consumers (37%) have intentions to online buying
clothing/accessories/shoes, and more than a third of consumers (34%) have intentions to buy event tickets
online [1]. The phenomenon of using online media as a transaction for various types of businesses, especially
ticketing services, was captured as an opportunity by Airpaz.com. Airpaz.com is an Online Travel Agency
company founded in 2011. Airpaz.com sells airplane ticket products online. Airpaz.com markets airplane
ticket products in various countries in South East Asia. But unfortunately, the market shares of Airpaz.com in
Indonesia is relatively lower than its market share in other southeast Asian countries, such as Malaysia,
Thailand, Singapore, Philippines. The website or platform Airpaz.com does not seem to be well known by
Indonesian consumers compared to other platforms, such as Traveloka.com, Tiket.com, and Pegipegi.com.
On social media, for example, Facebook.com, Airpaz.com also has fewer followers than other platforms in
Indonesia. Traveloka.com has the most number of followers, which is as many as 4,500,000 followers, then
B. Chan, E. Purwanto and T. Hendratono, 2020 Technology Reports of Kansai University
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Pegipegi.com has 659,000 followers, and Tiket.com has 657,000 followers Airpaz.com only has 34,000
followers. Tiket.com has the highest number of followers on Twitter, which are 95,000 followers, and it is
followed by Traveloka.com with 69,900 followers, while Airpaz.com only has 20,900 followers. Indeed, the
position of Airpaz.com is still higher than Pegipegi.com, which only has 13,900 followers on Twitter.
Traveloka.com still has the most number of followers on Instagram, namely as many as 304,000 followers,
and Tiket.com follows it as many as 103,000 followers, then Pegipegi.com has 66,600 followers, and in the
last position is Airpaz.com with 3,900 followers. All of that suggests that Airpaz.com is still not well known
by many people in Indonesia compared to other platforms. Many studies showed that online purchase intention
was influenced by consumer trust, and consumer trust was influenced by social media marketing (SMM).
Mohammadpour found that social media marketing influenced consumers' intention to purchase the product
online [2]. Whereas, Hajli found that trust built through social media can influence consumers to trust in online
transactions [3]. found that service quality influenced consumers' trust [4], and found that consumers trust
influenced the consumers' intention to purchase [5]. also found that the website quality influenced the level of
trust, and then the trust influenced consumers' intention to make an online purchase [6]. Then this study
investigated the effect of SMM and perceived service quality on consumer trust and the impact of consumer
trust on intentions to online purchase at Airpaz.com.
2. Literature Review
SMM is one of the marketing strategies. This strategy uses social media to build networks or communities
with consumers, disseminate information through blogs and other online media intending to develop
communication, market research, customer relationship management, and customer service [7]. SMM is a
marketing tool with extensive and unlimited coverage and low cost so that companies can enter a broader
market through social media with relatively smaller capital. According to Vinerean, SMM was growing.
Increasingly popular social media drove this growth [8]. The unique aspects of social media make marketing
strategies evolve. Marketing through social media has many functions, such as connecting and building good
relations between the company and its customers. Then [9] explains that social media marketing is a
promotional activity through social media that integrate social media and elements of the marketing mix.
Unlike traditional marketing activities, SMM allows companies to increase corporate recognition and
familiarity with consumers through online communities. Brand awareness can be created through SMM, and
it can influence consumers' intentions to online purchases. Similarly, according to Mohammadpour SMM was
considered as a phenomenon [2]. It has an essential role in e-Commerce business communication with
consumers. Social media is a medium that is easy to be accessed, so companies can quickly introduce their
products by social media marketing. It is also considered to increase online purchase intentions for consumers.
While according to Chang, consumer trust is an essential factor in online transactions and in building long-
term relationships with consumers [6]. Without trust, consumers will not be interested in online purchases.
So, the level of consumer trust will also directly affect consumers' intention to make online purchases. Trust
is an essential element to make strengthen and deepen relationships [10]. describe that in the absence of trust,
it will create a negative effect, so consumers do not want to make an online purchase, because an analysis of
actions and risks influences the willingness to spend during the shopping process [5]. Hajli also explained that
trust is an important step to develop and maintain e-Commerce business [3]. In the shopping process, the level
of consumers' trust in the seller is at risk or a bad possibility during the transaction. There are two dimensions
of consumer trust, namely: Benevolence, which refers to the sustained relationship between companies and
consumers, and credibility that relates to consumer trust in the seller or company. Credibility of information
can continuously increase the level of a customer's trust [11], [12], [13].
Online purchase intention means the desire of someone to engage in online transactions and shop for certain
brand products that have previously been evaluated online [14]. According to Meskaran, consumers' intention
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to make online purchases can be interpreted as an activity in which consumers look for references to buy
products online [5]. The attitude of consumers in shopping online is related to how consumers finally decide
to buy a product online. In online purchase intention, it is expected that consumers can also have the desire to
go back to shopping for the same product. This can happen if consumers have positive feelings, then look for
information about the product he wants to buy, then feel happy with the product, then buy the product [15].
Hajli sees a positive relationship between social media that has changed the lifestyle of the people worldwide
with a level of consumer trust, which will influence the online purchase intention [3]. Hajli found that social
media is a platform that consumers can interact with, to make observations, join into online communities, and
provide reviews and recommendations [3]. This interaction can build consumer trust. Hajli also found that
trust established through social media can influence online purchase intention [3]. When a consumer has
trusted an online store from his observations through social media, he will be compelled to do online purchase
intention.
Based on the theories and studies above, the first hypothesis can be built that:
H1: There is an effect of social media marketing on online purchase intention that is mediated by consumer
trust.
Besides being influenced by social media marketing, online purchase intention is also influenced by service
quality. Dapas proved that service quality and website quality are keys factor for purchase intention [16].
Rushton and Carson said that service quality is the quality of the overall service that customers have ever felt
[17]. Perceived service quality is defined as the assessment of customers to the superiority and service quality
that be offered in virtual markets [18]. [4] found that the role of perceived quality of service on consumer
trust, then consumer trust influenced online purchase intentions [4]. found that perceived quality of service
changed consumers' desire to buy the product [19]. Before deciding to buy a product, consumers have an
assessment of product quality and price. The consumer in the specification will assess the perception of
product quality from the features of the product or service provided.
Based on the theories and studies above, the second hypothesis can be built that:
H2: The effect of perceived service quality on online purchase intention is mediated by consumer trust.
Figure I is the conceptual framework that has been tested.
B. Chan, E. Purwanto and T. Hendratono, 2020 Technology Reports of Kansai University
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3. Method
The population of this study is customers whoever bought airline ticket at the Airpaz.com. By using Non-
Probability Sampling, the sample obtained in this study was 214 samples. This study's Respondents were
taken from customers who had made transactions at Airpaz.com using payments in Indonesian Rupiah. The
number of respondents obtained was 214 people. 52.6% (112) are men and 52.6% (101) are women. Based
on the age group there were 2.8% (6 respondents) in the range of 15 to 20 years old, 20.2% (43 respondents)
in the range of 21 to 25 years old, 27.2% (58 respondents) in the range 26 to 30 years old, 49.8% (106
respondents) > 35 years old, and 0.1% (1 respondent) did not inform their age. Respondents domiciled in
Jabodetabek (an abbreviation of Jakarta, Bogor, Depok, Tangerang, and Bekasi) are 37.7% (80 respondents).
In Java island (excluded Jabodetabek) are 15.6% (33 respondents). In Sumatera island are 11.3% (24
respondents), in Borneo (Kalimantan) island are 5.7% (12 respondents), in Sulawesi island are 3.3% (7
respondent), in Bali, Nusa Tenggara Timur, and Nusa Tenggara Barat islands are 2.8% (6 respondents), in
Papua island are 0.9% (2 respondents), and in excluded above areas 22.6% (48 respondents). The collected
data was analyzed using PLS-SEM. The outer model test provides individual indicator reliabilities, internal
consistency reliability, convergent and discriminant validities. Then after the outer model was proved, we test
the inner model to prove the hypotheses [20], [21], [22].
4. Findings
4.1 Outer Model Evaluation
Table 1, Table 2, Table 3, and Table 4 shows that all of the indicators have outer loadings > 0.70, so all
measurements scale of indicators is valid. Average Variance Extracted of all variables are > 0.50, so all
constructs are also valid. Cronbach's Alpha and Composite Reliability value of all construct variables are >
0.70, so all construct variables are reliable. Therefore, the individual indicator reliabilities, internal
consistency reliability, convergent and discriminant validities are proved. According to Hair [23], [24], [25],
we can test the hypotheses through the inner model evaluation.
Table 1. Outer Model Evaluation of Social Media Marketing
Indicators
Outer
Loadings
Average
Variance
Extracted
(AVE)
Cronbach's
Alpha
Composite Reliability
Social Media Marketing
0.630
0.882
0.911
SMM 1
0.733
SMM 2
0.822
SMM 3
0.792
SMM 4
0.860
SMM 5
0.825
SMM 6
0.722
Source: Smart PLS 3.0 output
Table 2. Outer Model Evaluation of Perceived Service Quality
Indicators
Outer
Loadings
Average
Variance
Extracted
(AVE)
Cronbach's
Alpha
Composite
Reliability
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Perceived Service Quality
0.667
0.938
0.947
PSQ 1
0.774
PSQ 2
0.778
PSQ 3
0.824
PSQ 4
0.756
PSQ 5
0.851
PSQ 6
0.872
PSQ 7
0.843
PSQ 8
0.850
PSQ 9
0.793
Source: Smart PLS 3.0 output
Table 3. Outer Model Evaluation of Consumer Trust
Indicators
Outer Loadings
Average Variance
Extracted (AVE)
Cronbach's Alpha
Composite
Reliability
Consumer Trust
0.630
0.925
0.947
Trust 1
0.864
Trust 2
0.933
Trust 3
0.938
Trust 4
0.880
Source: Smart PLS 3.0 output
Table 4. Outer Model Evaluation of Online Purchase Intention
Indicators
Outer
Loadings
Average
Variance
Extracted
(AVE)
Cronbach's
Alpha
Composite
Reliability
Online Purchase Intention
0.666
0.834
0.888
OPI 1
0.874
OPI 2
0.814
OPI 3
0.736
OPI 4
0.835
Source: Smart PLS 3.0 output
4.2 Inner Model Evaluation
The coefficient of determination (R²) is a primary criterion for inner model assessment [23]. Table 5 shows
that the R-Square value of the consumer trust construct is 0.776, and it indicates that the model is reliable.
Still, the R-Square value of the online purchase intention construct is moderate (0.648).
Table 5. R-Square
R Square
R Square Adjusted
Consumer trust
0.776
0.774
Online purchase intention
0.648
0.643
Source: Smart PLS 3.0 output
Table 6 shows the effect of exogenous variables on endogenous variables partially. The impact of social media
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marketing on consumer trust is positive and significant because the T Statistics value is 2.674 > 1.96, and the
Probability value is 0.008 < 0.05. But the effect of social media marketing on the intention to online purchase
is insignificant because the T Statistics value is 1.067 < 1.96, and the Probability value is 0.286 > 0.05. The
effect of perceived service quality on consumer trust is positive and significant because the T Statistics value
is 11.739 > 1.96, and the probability value is 0.000 < 0.05. Likewise, the effect of perceived quality of service
on an intention to online purchase is positive and significant because the T Statistics value is 5.826 > 1.96,
and the Probability value is 0.000 < 0.05. Finally, the effect of consumer trust on online purchase intention is
positive and significant because the T Statistics value is 3.816 > 1.96, and the Probability value is 0.000 <
0.05.
Table 6. Path Coefficients
Original
Sample
(O)
Sample
Mean
(M)
Standard
Deviation
(STDEV)
T Statistics
(|O/STDEV|)
P Values
Social media marketing ->
Consumer trust
0.189
0.188
0.071
2.674
0.008
Social media marketing -> Online
purchase intention
-0.082
-0.081
0.077
1.067
0.286
Perceived service quality ->
Consumer trust
0.726
0.727
0.062
11.739
0.000
Perceived service quality -> Online
purchase intention
0.544
0.547
0.093
5.826
0.000
Consumer trust -> Online purchase
intention
0.353
0.351
0.092
3.816
0.000
Source: Smart PLS 3.0 output.
Table 7 shows that social media marketing is proved to influence online purchase intention that is mediated
by consumer trust is positive and significant because T Statistics value is 2.158 > 1.96. The probability value
is 0.031 < 0.05, so the hypothesis is supported. Likewise, the effect of perceived service quality on online
purchase intention mediated by consumer trust is positive and significant because T-value is 3.627 > 1.96,
and P-value is 0.000 < 0.05, so the hypothesis is supported. Airpaz.com is still not well known by many people
in Indonesia compared to other platforms. Airpaz should use social media as a means of promotion and
increase its service quality. The study proves that SCM and ServQual can create consumer trust, and then
consumer trust creat the purchase intention.
Table 7. Specific Indirect Effects
T Statistics
(|O/STDEV|)
P Values
Hypotheses
Social media marketing -> Consumer
trust -> Online purchase intention
2.158
0.031
Supported
Perceived service quality -> Consumer
trust -> Online purchase intention
3.627
0.000
Supported
Source: Smart PLS 3.0 output
5. Conclusion
This study has proven that social media marketing influences online purchase intention that is mediated by
consumer trust toward Airpaz.com. Thus it is true what Mohammadpour said that social media marketing is
crucial [2]. The focus on developing marketing strategies through social media is essential because it will
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improve the consumer's online purchase intention. This finding also supports Hajli, who also found that trust
in social media has an essential role in creating online purchase intentions [3]. This study also has proven that
perceived service quality influences online purchase intention that is mediated by consumer trust toward
Airpaz.com. This finding supports, who found that perceived service quality affects consumers' desire to buy
a product [19]. Before deciding to buy a product, consumers assess product quality, service quality, and price.
Perceived service quality will later become a source of customer satisfaction.
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