The Effect of Digital Marketing and Brand Equity on Purchase Intention of the Uniqlo Brand in Indonesia

Abstract

This study explored the relationship between digital marketing (social media marketing and electronic word-of-mouth) and brand equity on purchase intention. Social media is used by the clothing brand Uniqlo as a method of digital marketing due to its large reach to consumers and large user base in Indonesia, specifically the Greater Jakarta area. A survey was conducted through a questionnaire that is distributed online to 171 respondents in order to understand the relationship between Uniqlo’s activity on social media and its effect on consumer purchase intention of Uniqlo products. The data was calculated using the SmartPLS 4 software and the analysis was conducted through the Partial least squares (PLS) and Structural Equation Modeling (SEM) method. This research’s novelty comes in the understanding of consumer relationships with social media, electronic word-of-mouth (eWOM), and brand equity and their effect on online purchase intention. This paper aims to give a better understanding on digital marketing’s role in consumer behavior for the Uniqlo brand in the Greater Jakarta region. The results indicate that all constructs, social media marketing, eWOM and brand equity have a noticeable effect on purchase intention