FACEBOOK USAGE IN SOCIAL

MEDIA ADVERTISING : THE

INDONESIA MILLENIAL
PERSPECTIVES
Wendy Souisa, Fauzia Tutupoho, Saul Ronald Jacob Saleky
Politeknik Negeri Ambon

Introduction
Due to advances in technology, people with similar

interests, backgrounds or attitudes can join

communities of like-minded people and share views,
exchange information and build relationships,
regardless of where they are in the world.
This form of online word-of-mouth communication
seems to offer new opportunities and challenges for
businesses because consumers interests in brands
have grown rapidly; they therefore communicate
more extensively about their experiences as
consumers affecting the images of these
companies and brands.

Introduction
People tend to believe what they hear through

their social networks and peersi not merely

what they are told by the companies.
This study conducted for examined the
Indonesia millenial perspective on Facebook
usage as an advertising media to influence
their purchasing intention.

Literature Review
Social Media
The popularity of social media sites has also spread to
companies and firms as part of their strategies.
According to Social Media Marketing Industry Report,
64% of marketers spend five hours or more per week
on social media and 39% of them spend ten hours or
more weekly (Stelzner, 2009).
These findings show that more and more companies
are becoming actively involved in social media, which
also shows the emerging of social media sites as the
new marketing/promotion platform that is also known
as social media marketing.

Millenial or Generation Y
Brosdahl and Carpenters (2011)
categorization of generations, using the
following birth dates for each cohort: the
Silent Generation (1925-45), the Baby
Boomers (1946-60), Generation X (1961-81)
and Generation Y (born after 1981).
A key formative characteristic for Gen Y is
early and frequent exposure to technology,
hich has advantages and disadvantages in
terms of cognitive, emotional, and social
outcomes (Immordino-Yang et al., 2012).

E-Brand Equity
The concept of brand equity is important

when addressing branding strategy. Brand

equity involves the assets, liabilities and value
added to a brand involving the product or
services name and accompanying logos and
symbols, which help it to be differentiated
from all other competitors (Aaker, 1991;
Kamakura & Russel, 1993; Keller, 2008). Keller
(1998, 2008) suggests that brand equity is
comprised of brand awareness, brand image,
perceived brand quality, and brand loyalty.

E-WOM
WOM is defined as the communication between
consumers about a product, service, or a company
in which the sources are considered independent of
commercial influence (Bass, 1969; Brown, Broderick
and Lee, 2007; Litvin, 2008).
Electronic-WOM (eWOM) is a new communication
phenomenon which, as WOM, has a powerful force
in persuasion of digital consumers and which
require further investigation (Sen and Lerman,
2007).
eWOM is a less personal but more ubiquitous form
of WOM which has spread recently with the advent
of social media and extensive Internet use.

Customer Trust
Lee et al. (2006) define trust in terms of two parties
the trustee and the truster. Their definition
incorporates multiple dimensions appropriate to the
current study:
Trust embodies the trusters confidence in the trustees

actions.
Trust is an expectation that the trustees promise can be
relied on and that the trustee will act in the spirit of
goodwill.
Trust is based on previous actions.

Patton and Josang (2004) follow a common belief that

trust is a behavior built over time; thus, the vendor

must use means to gradually build the customers
trust.

The level of security and risk plays a much

stronger role in comparison with the situation

for other e-vendors, because lack consumer
confidence in benevolence, integrity, and
competence (McKnight et al., 2002), thereby
reducing consumer trust.

Hypotheses
1.a. eBrand Equity has a positive and significant
association with customer trust
1.b. eBrand Equity has a positive and significant
association with customer purchasing
intention
2.a. eWOM has a positive and significant
association with customer trust
2.b. eWOM has a positive and significant
association with customer purchasing
intention
3. Trust has a positive and significant

Research Method
This study was conducted over two months.
The object of this study is the youth who used

Facebook.
The purposes of this study are:
1. To analyze the effect of electronic brand equity on
customer trust and customer purchasing intention.
2. To analyze the effect of electronic word-of-mouth
to customer trust and customer purchasing
intention.
3. To analyze the effect of customer trust on
customer purchasing intention.

The population of study was the youth who

used facebook in Indonesia.

The sample was taken from 150 people with
convenience sampling technique. It is a nonprobability sampling technique where subjects
are selected because of their convenient
accessibility and proximity to the researcher.
To analyze the hypothesis of this study, the
technique of analysis which have been used in
this study is the path analysis.
To process the data we use SPSS 21. Data was
collected by using questionnaire.

Respondents were collected to respon the

statement by filled the questionnaire about

the elctronic brand equity, electronic word-ofmouth, customer trust and customer
purchasing intention.
The data of the customer was obtained from
external sources; the Facebook.

Respondent Description
Based on the data computate, them are

categorized into two age groups, 18 25 years

are 54 (36%), and 26-35 years are 96 (64%).
Furthermore, they consist of 64 (42.67%) male
and 86 (57.33%) female and come from Java
and Sumatra, 43 (28.67%), Bali, Kalimantan and
Nusa Tenggara 21 (14%), Sulawesi 52 (34.67%)
and Maluku and Papua, 34 (22.67%).
They work in the private sector 51 (34%), civil
servant 52 (34.67%) and as students 47
(31.33%).

Result and Discussion

Tabel 1. Result of 1st Equation of Regression
Variable

Standardized
Coefficients
Beta

(Constant)

7.540
eBrand Equity
.523 5.434
eWord-of.561 6.489
Mouth
R = .677a
R Square = .458
Adjusted R Square = .456
Std. Error of the Estimate = .12463

Sig.
.000
.004
.000

Result and Discussion

Tabel 2. Result of 2nd Equation of Regression
Variable

Standardized
Coefficients
Beta

(Constant)

11.653
e-Brand Equity
.656 5.800
e-Word-of.525 4.384
Mouth
Customer Trust
.646 5.335
R = .621a
R Square = .386
Adjusted R Square = .384
Std. Error of the Estimate = .19875

Sig.
.000
.000
.008
.010

Table 3. Result of hypothesis test

Hypothesi
s

Coefficien
t

T-Test
value

Sig.

1.a

0.523

5.434

0.004

1.B

0.656

5.800

0.000

2.A

0.561

6.489

0.000

2.B

0.525

4.384

0.008

0.646

5.335

0.010

T-Table
Value

Decision

2.60 Accepte
d
2.60 Accepte
d
2.60 Accepte
d
2.60 Accepte
d
2.60 Accepte

e-Brand
Equity

0.656
0.523

0.561

Customer
Trust

0.646

Purchasing
Decision

0.525
e-Wordof-Mouth

Figure 1. Path diagram of this study

Discussion
These results indicate the association of e-brand

equity and e-word-of-mouth to customer purchasing

intention by 0.458 or 45.8% and the association of ebrand equity, e-word-of-mouth, and customer trust to
customer purchasing intention by 0.621 or 62.1%.
In addition, partialy e-brand equity has a positive
association and significant to customer trust and on
customer purchasing intention. Furthermore, e-wordof-mouth has a positive and significant association on
customer trust, and to customer purchasing intention.
Similarly, customer trust has a positive association
and significant to customer purchasing intention.

Discussion
These results indicate that the Indonesias millenial trust can

be influenced by e-brand equity and e-word-of-mouth. Either

their purchasing intention can be influenced by e-brand equity,
e-word-of-mouth and their trust.
These result are cosistent with studies conducted by Hansen et
al. (2011), Hennig-Thurau et al. (2004) and Sen and Lerman
(2007), that eBrand Equity and eWord-of-Mouth are the
determinats of customer trust.
Then the customer trust was a one of determinants of
purchasing behavior (Patton and Josang, 2004).
Based on this study result, we suggestion for the online
marketers to build a strong brand equity and it can be facilitate
the e-word-of-mouth and trust of the millenial, so they will
intent to make a purchasing.

Conclusions
The purpose of this study was analyzed the effect of e-

Brand Equity and e-WOM on trust and purchase intention

of the Indonesias millenial.
The result of this study show that the independent
variables, i.e e-Brand Equity and e-WOM has a positive and
significant association with the Indonesias millenial Trust
and Purchasing Intention.
The result indicate that in order to provide the Indonesias
millenial trust and purchasing intention, the social media
marketers should continue to provide their brand equities.
The millenial would like to share about the brand with eWOM and that can develop their trust on that brand and
intent to purchase.

Thank You