

Economics and Business
Quarterly Reviews
ISSN 2775-9237 (Online)







Published: 16 February 2024
The Mediating Role of Brand Awareness in Social Media Marketing’s Impact on Brand Image
Masagus Muhamad Rizky Putra Ramadhan, Ariesya Aprillia
Universitas Kristen Maranatha, Indonesia

Download Full-Text Pdf

10.31014/aior.1992.08.01.646
Pages: 9-17
Keywords: Brand Awareness, Brand Image, Social Media Marketing
Abstract
Instagram is one of the most fashionable social media platforms for business promotion. As one of the coffee shops, Kopitagram also utilizes this platform to make people aware and have an image on their minds in the competitive market to be its consumers. Consequently, this research aims to prove three things. The first is the influence of social media marketing (SMM) on brand awareness (BA) and image (BI). The second is the impact of BA and BI. The third is the mediating effect of BA on the association between SMM and BI. Taking 203 customers of Kopitagram in Bandung as the sample, using a purposive sampling method and survey technique, this study analyzes their responses based on a covariance-based structural equation model to examine four hypotheses proposed with related statistical features. Finally, this study concludes that social media marketing effectively elevates the brand awareness and image of the consumers. Furthermore, BA can enhance BI. Finally, the mediating effect of BA is proven. This situation can increase revenue and profits for the related coffee shop.
1. Introduction
The culinary business has become the pillar of the Indonesian creative industry. Statistical Central Agency records that this sector contributed 34% of the gross domestic product in 2023. Additionally, this culinary business has a high opportunity because of the prominent market and potential profits (Purwanto & Pancawati, 2024). As one of the business types, a coffee shop functions to sell foods and beverages. Besides, it provides a place for relaxing, working, and networking (Ferreira et al., 2021), preferred by the millennial generation in the United States (Halff, 2016) and Generation Y and Z in Indonesia (Poerwanto, 2019).
In Bandung City, these coffee shops are utilized by higher-education students to drink coffee while doing their tasks from lecturers (Hanifah, 2024). Based on One Indonesian Data (2021), they have existed in this city since 2016, totaling 14 units, and this number in 2017 was still the same. For 2018 and 2019, the number was 41. Then, this number became 50 and 99 units in 2020 and 2021. According to Baye and Price (2022), the more companies in the same business sector, the more competitive the market is.
One of the strategies to promote the coffee shop is through social media (Getaruelas, 2019; Grossman & Rachamim, 2024; Park & Namkung, 2022), such as Instagram (Getaruelas, 2019; Park & Namkung, 2022; Syehabuddin et al., 2022), Facebook (Getaruelas, 2019; Ibrahim et al., 2021; Syehabuddin et al., 2022), Twitter (Arhas et al., 2022; Getaruelas, 2019; Syehabuddin et al., 2022), TikTok (Sekarwangi et al., 2023), and YouTube (Getaruelas, 2019). Specifically, Kopitagram, one of the coffee shops in Bandung, utilizes Instagram (Purwanti, 2024) to promote Asian foods and beverages, including Indonesian and European ones (Permana & Hasbi, 2023). Instagram utilization can elevate its brand awareness and image among the competition with other coffee shops (Park & Namkung, 2022).
Some studies attempt to relate social media marketing to brand awareness (Ayuningtyas & Sijabat, 2022; Bilgin, 2018; Faisal & Ekawanto, 2022; Lim et al., 2024; Malarvizhi et al., 2022; Park & Namkung, 2022; Purwianti & Fionna, 2023; Salsabillah et al., 2024). Unfortunately, their outcome is contradictory. For instance, Bilgin (2018), Faisal and Ekawanto (2022), Malarvizhi et al. (2022), Park and Namkung (2022), Purwianti and Fionna (2023), Lim et al. (2024), Salsabillah et al. (2024) demonstrate a positive tendency. However, Ayuningtyas and Sijabat (2022), Malarvizhi et al. (2022), and Lim et al. (2024) document a pointless propensity.
Equally, some investigations try associating social media marketing with brand image (Bilgin, 2018; Faisal & Ekawanto, 2022; Hidayatullah et al., 2021; Malarvizhi et al., 2022; Park & Namkung, 2022; Salsabillah et al., 2024; Yanti & Muzammil, 2023). Regrettably, their outcome is opposing. For example, Bilgin (2018), Faisal and Ekawanto (2022), Park and Namkung (2022), Malarvizhi et al. (2022), Yanti and Muzammil (2023), and Salabillah et al. (2024) show a positive tendency. Unfortunately, Hidayatullah et al. (2021) and Malarvizhi et al. (2022) exhibit a meaningless inclination.
Although demonstrating a positive relationship between brand awareness and image, this related research is few, such as those conducted by Bilgin (2018) and Salsabillah et al. (2024). A similar situation happens with the studies proving brand awareness to mediate the association between SMM and brand image, like Bilgin (2018) and Salsabillah et al. (2024).
Based on these inconsistent proofs of the relationship of social media marketing with brand awareness (BA) and image (BI), the infrequent tendency of BA toward BI, and the rare studies proving the mediating effect of BA on the impact of SMM on BI, this study aims to test these relationships based on the perspective of Kopitagram customers in Bandung City. In this city, according to a Google Map, Kopitagram is on Cianjur Street No.3, Kacapiring Sub-Distric, Batununggal District. Using consumers of coffee shops in this investigation differs from Bilgin (2018), employing the customers of the top five brands; Faisal and Ekawanto (2022) and Ayuningtyas and Sijabat (2022), studying the customers of entrepreneurial products; Hidayatullah et al. (2021), learning about the tourists purchasing mementos; Purwianti and Fionna (2023) investigating the shoppers of fashion goods; Yanti and Muzammil (2023) with the customers of skincare; Malarvizhi et al. (2022), employing the users of portable tech gadgets; Lim et al. (2024) and Salabillah et al. (2024), surveying cosmetics customers.
Additionally, this study uses the structural equation model (SEM) based on covariance as Bilgin (2018), Faisal and Ekawanto (2022) and Park and Namkung (2022) utilize, differing from Hidayatullah et al. (2021) and Lim et al. (2024) employing the regression model, Ayuningtyas and Sijabat (2022), Malarvizhi et al. (2022), Purwianti and Fionna (2023), Yanti and Muzammil (2023), and Salsabillah et al. (2024) applying variance-based SEM. Indeed, this study is relevant for coffee shop owners or managers using social media to make customers aware of their brands and have a strong image in the competitive market by innovating their goods and services.
2. Literature Review and Hypothesis Development
Social media is the device for the marketing strategy utilizing the online platform to interact with consumers directly to enlarge the brand radius and awareness (Dwivedi et al., 2021). In their study, Malarvizhi et al. (2022) utilize five dimensions of social media marketing, i.e., entertainment (ENT), interactivity (INT), trendiness (TREND), customization (CUST), and electronic word of mouth (E-WOM) to be associated with brand awareness. As a result, ENT, TREND, CUST, and E-WOM positively affect BA, but INT does not. Using the exact dimensions, Lim et al. (2024) demonstrate that CUST, INT, and E-WOM positively influence BA. Unfortunately, ENT and TREND do not. Through their investigation, Faisal and Ekawanto (2022), Park and Namkung (2022), Purwianti and Fionna (2023), and Salsabillah et al. (2024) demonstrate that marketing through social media marketing can elevate the brand awareness of the consumers. Based on this confirmation, the first hypothesis is like this:
H1: The relationship between social media marketing and brand awareness is positive.
In their study, Malarvizhi et al. (2022) utilize five dimensions of social media marketing, i.e., entertainment (ENT), interactivity (INT), trendiness (TREND), customization (CUST), and electronic word of mouth (E-WOM) to be associated with brand image. As a result, TREND, CUST, and E-WOM positively affect BA, but ENT and INT do not. Through their investigation, Faisal and Ekawanto (2022) and Park and Namkung (2022) reveal that marketing through social media positively creates the brand image. Similarly, Yanti and Muzammil (2023) and Salabillah et al. (2024) affirm that using social media with engaging content will make the customer always remember the brand. Based on this confirmation, the second hypothesis is like this.
H2: The relationship between social media marketing and brand image is positive.
Brand awareness is the salient reflection of the brand in the customer's mind and has six phases: (1) Consumers recognize the brand, (2) they can recall it, (3) make the brand in their top of mind, (4) mention the brand when asked by others, (5) understand what the brand is for, and (6) have the opinion (Aaker, 1996). In their study, Bilgin (2018) and Salsabillah et al. (2024) demonstrate that brand awareness positively affects brand image. Also, they prove that brand awareness can mediate the association between social media marketing and BI. Based on this evidence, this study proposes the third and fourth hypotheses like this:
H3: The relationship between brand awareness and image is positive.
H4: Brand awareness mediates the association between social media marketing and brand image.
3. Research Methods
This investigation has three variables. The first is social media marketing, which acts as the exogenous, where its items are from Park and Namkung (2022). The second and third are brand awareness and image, and their indicators come from Park and Namkung (2022). Furthermore, the details are in Table 1.
Table 1: The indicators of social media marketing, brand awareness, and brand image
Variable | Indicators |
Social Media Marketing | - Through Instagram, I can communicate with other customers (SCM1). - Through Instagram, It is effortless for me to communicate with other customers (SCM2). - The Instagram content of this coffee shop makes me interested (SCM3). - I enjoy watching the Instagram of this coffee shop (SCM4). - The Instagram of this coffee shop provides customized information (SCM5). - The Instagram of this coffee shop provides customized service (SCM6). - The up-to-date Instagram content of this coffee shop exists (SCM7). - The information shared through Instagram is fashionable (SCM8). |
Brand Awareness | - I have always remembered Kopitagram (BA1). - I know the features of Kopitagram (BA2). - I am familiar with the products linked to Kopitagram (BA3). |
Brand Image | - The Kopitagram prioritizes me as the customer (BI1). - The Kopitagram prioritizes high-quality products (BI2). - Unlike others, Kopitagram can create a unique brand image (BI3). |
Source: Park and Namkung (2022)
This study uses purposive sampling by setting some criteria when taking the samples, as Hartono (2014) explains. The criteria are as follows. Firstly, customers must domicile in Bandung. Secondly, they access Kopitagram's Instagram account before buying the products. Finally, they must purchase Kopitagram-related products for at least three months. Based on these criteria, this study uses the survey to collect the responses with a five-point Likert scale, as Sugiyono (2022) explains. For theoretical verification, the samples collected are at least 200 (Ghozali, 2021b; Mariana et al., 2024).
Because of the survey, validity and reliability examination is needed (Mariana et al., 2021). Confirmatory factor analysis is utilized when testing validity by comparing the loading factor (LF) with 0.5. When LF exceeds 0.5, a valid response occurs (Ghozali, 2017). Composite reliability and Cronbach Alpha are employed to detect reliable responses by comparing them with 0.7. A reliable response happens if they are above 0.7 (Junaidi, 2021).
Following Park and Namkung (2022), this study uses covariance-based SEM with the AMOS program to analyze the data, where the model is in the first and second equations:
BA = γ1SCM + ξ1 (Equation 1)
BI = γ2SCM + β1BA + ξ2 (Equation 2)
When using the CBSEM, some measures exist to detect the goodness of fit: Chi-square divided by degree of freedom (CMIN/DF) (Dash & Paul, 2021), root mean square residual (RMSR) (Junaidi, 2021), parsimonious goodness of fit indexes (PGFI), parsimonious normed and comparative fit index (PNFI and PCFI) (Dash & Paul, 2021), where the cut-off points exist in Table 2.
Table 2: The cut-off point of some goodness of fit model measures
Measure | Cut-off Point | Source |
CMIN/DF | Below 3 or 5 | Dash and Paul (2021) |
RMSR | Lower than 0.05 | Junaidi (2021) |
PGFI | Higher than 0.5 | Dash and Paul (2021) |
PNFI | Higher than 0.5 | |
PCFI | Higher than 0.5 |
Finally, the first, second, third hypotheses are examined by comparing the critical ratio probability with a 5% significance level. Each hypothesis is acceptable if the probability is lower than 5% (Junaidi, 2021). For the fouth hypothesis, this study uses Sobel test, as suggested by Ghozali (2021a), by comparing the probability (2-tailed) of Z-statistic for Sobel with 5%. The mediating effect exist if this value is below 5% (Sahabuddin & Hadianto, 2023).
4. Results
4.1. Respondent Features
Based on a survey in July 2024, this study obtained 203 respondents, 100% all of whom meet the criteria, namely giving consent to fill out the questionnaire, having seen the Instagram account of Kopitagram in the past two years, and residing in Bandung. Table 3 displays the features of respondents buying coffee and its associated products in Kopitagram at least three times a month:
a. The foremost respondents are male (51.23%), from 20 to 29 (81.28%), and undergraduate students (75.37%) based on gender, age, and current schooling level. Based on the occupation, the most is a private employee (45.32%).
b. At the minimum, the respondents are female (48.77%), from 40 to 49 (2.56%), and senior high school (7.39%) based on gender, age, and current schooling level. By mentioning the occupation, the influencer (0.49%) and senior high school student (0.49%) are the least.
Table 3: The features of the respondents
Feature | Description | Frequency | Portion |
Gender | Male | 104 | 51.23% |
Female | 99 | 48.77% | |
Age | Below 20 | 13 | 6.40% |
From 20 to 29 | 165 | 81.28% | |
From 30 to 39 | 19 | 9.36% | |
From 40 to 49 | 6 | 2.96% | |
Current schooling level | Senior high school | 15 | 7.39% |
Vocational degree | 36 | 17.73% | |
Undergraduate degree | 153 | 75.37% | |
Occupation | Public civil servant | 3 | 1.48% |
Freelance | 82 | 40.39% | |
Housewife | 6 | 2.96% | |
Influencer | 1 | 0.49% | |
Private employee | 92 | 45.32% | |
Higher education student | 3 | 1.48% | |
Senior high school student | 1 | 0.49% | |
Tycoon | 15 | 7.39% |