The Influence of Testimonial, Social Media-based Promotions and
Electronic Word of Mouth toward Purchase Intention
Muhammad Dian Ruhamak, Pamadya Vitasmoro, and Afif Nur Rahmadi
Economics Faculty Kadiri University, Jalan Selomangleng no. 1 Kediri city, Indonesia
{dianru, pamadyavitasmoro, afifnur}@unik-kediri.ac.id
Keywords: Testimonial, Promotion Based Social Media, Electronic word Of Mouth, Purchase Intention.
Abstract: This research is to know the influence of testimonial, social media based promotions and electronic word of
mouth toward purchase intention at Laris online shop. The method of data collected used questionnair. Data
analysis uses validity and reliablity test, doubled regression, F and T hypothesis, and also coefficient
determination. The result of this research shows that testimonies have significant influence toward purchase
intention, and then social media based promotion has significant influence also toward purchase intention.
Electronic word of mouth has significant effect toward purchase intention. Electronic word of mouth has in
line correlation, and also contribution toward purchase intention. The result of coefficient determination
shows that testimonial influence, social media based promotion and electronic word of mouth have
contribution 20.4% toward purchase intention. It is because the consumers have more trust toward comments
and suggestions from the customers who have real experiences of online shop service than the testimonies
from social media of online shop owner which can be created. The conclusion is that electronic word of mouth
is the most influential factor toward purchase intention of consumers.
1 INTRODUCTION
Nowadays, internet is the main need in societies not
only for adults but also teenagers even children.
Based on the survey done by tetra pak index in
2017(Detik.inet, 2017), from 132 internet users in
indonesia, 40% of them are social media addicts. It
means that most of internet users are social media
owners. Beside as media to update status, now some
social medias have content to promote online shop. In
this internet era, people who want to buy something
not only go to the shops but also find it in internet
(Lee, Cheng, & Shih, 2017)
Online shopping becomes trend among people,
and many online shop sites grow fast. It must be
admitted that online shop has its own magical interest,
so many people turn from offline shopping to online
shopping. The customers get many easier way by
purchasing online, such as no need to go home just
wait the order comes, the payment can be transfered,
credit and also cash on delivery method which the
payment can be done when the order arrives. All of
these reasons make people choose to purchase via
online.
However, on the other hand some people don't
want to try online shopping. They are afraid of deceit
that they will lose their money, or the things they
ordered aren't in line with the specification.
Therefore, testimonials from the customers is the
important way to build trust consumers in purchasing
(Setiawati, 2015).
Beside testimonial, promotion also has important
role to determine the success of marketing program
(Pamungkas & Zuhroh, 2016). The increase of social
media users such as Forum (kaskus), social
networking (facebook, instagram), virtual world
(kaneva), online game, sharing sites (youtube, flick)
until micro blogging (twitter) gives opportunities to
promote via social media because it can reach all of
segments cheaply and even freely. Promotion via
social media also can contact directly and form
communication in unlimited time.
In social media, individuals adopt electronic
word-of mouth (e-WOM) on social networking sites
(Park, Shin, & Ju, 2017), a kind of communication
"word of mouth" creates precious opportunities
because people can discuss about the product and its
service to many others (Lee et al., 2017). Beside that,
eWOM also give useful insight to social media users
(Chu & Sung, 2015). Word of mouth by online can
reach consumers faster and wider than by offline
because it has big accessibility in creating purchasing
interest. The available of review products posted by
consumers in social media will help other consumers
78
Ruhamak, M., Vitasmoro, P. and Rahmadi, A.
The Influence of Testimonial, Social Media-based Promotions and Electronic Word of Mouth toward Purchase Intention.
In Proceedings of the Annual Conference on Social Sciences and Humanities (ANCOSH 2018) - Revitalization of Local Wisdom in Global and Competitive Era, pages 78-81
ISBN: 978-989-758-343-8
Copyright © 2018 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
who seeking the information about the products
before doing purchasing. The purpose of the research
is to know testimonial research, social media based
promotions and E-WOM toward purchase intention at
Laris online shop.
2 LITERATURE REVIEW
2.1 Testimonial
According to Griffith (2011: 153) testimonial is the
way to build credibility, which information published
on media must tend to majority than private interest.
Testimonial -testimonium in Indonesian official
dictionary- is acknowledgment or support toward a
kind of business from satisfied consumers.
Testimonial helps consumers to make decision in
using products or services because recommendation
from third person, and it will be more convincing if
the customers who have used the products share their
experiences.
2.2 Social Media Based Promotions
Promotion by using social media in this research refer
to Chris Heuer's opinion in Solis (2011). It is
promotion activities done by Bontacos via social
media to influence consumer's purchasing decision by
giving information to the consumers about products,
price, event etc. It is also to build good
communication with customers. Promotion by using
social media can be measured with the following
indicators: context, communication, collaboration
and connection.
2.3 E-Wom
E-WOM gives motivation to the consumers in
forming their own impression toward products'
image, so they are interested in doing purchasing. To
measure the influence of electronic word of mouth, it
is done by indicator to read product reviewe-WOM,
consultation with other consumers, gather
information from product review, anxiety if they don't
read product review, self confidence to buy product
after reading product review (Reza Jalilvand &
Samiei, 2012).
2.4 Purchasing Intention
Purchasing intention is consumers' behaviour whose
have interest to buy or choose a product based on their
experiences in choosing, using and consuming, or
even in desiring a kind of product.
2.5 Hypothesis
1. Testimonial has significant influence toward
purchase intention on Laris online shop.
2. Social media based promotions has significant
influence toward purchase intention on Laris
online shop.
3. Electronic word of mouth has significant
influence toward purchase intention on Laris
online shop.
Testimonial, social media based promotions and
E-WOM has significant influence toward purchase
intention on Laris online shop.
3 RESEARCH METHOD
The design of this research is explanatory research.
the population in this study were consumers who had
been shopping at best-selling shop more than once,
not limited to gender and who made transactions last
3 months, namely 97 customers. According to Yount
in (Rahayu & Ruhamak, 2016) if the number of
population is less than 100, it will be better all of the
respondents are taken so the research is population
research or census.
3.1 Data Analysis
The method of data gathering used questionnair,
while the data analysis used in this research are
validity and reliability test of research instruments,
doubled linear regression test, F and T test to test
hypothesis, and also coefficient determination.
4 RESULT AND DISCUSSION
4.1 Validity and Reliability Test
Based on the result of questionnaire test, all of the
istruments show valid results because all item scores
are beyond critical limit, and also reliable because the
value of output are beyond 0,6.
The Influence of Testimonial, Social Media-based Promotions and Electronic Word of Mouth toward Purchase Intention
79
4.2 Doubled Linear Regression Test
Table 1: Table of Test Analysis.
B
T
Sig
F
Sig
Adjusted
Rsquare
CONSTANT
12,607
7,396
0,000
9,216
0,000
0,204
TESTIMONIAL
-0,332
-3,547
0,001
SOCIAL MEDIA
BASED PROMOTION
-0,186
-2,268
0,026
E WOM
0,199
4,415
0,000
Based on the test result, it is got constant value
and coefficient regression, so it can be formed
equation of regression as follows:
Y = 12.607 0.332 X1 - -0.188 X2 + 0. 199 X3 + e
Constance (α) with value 12.607 shows if variable
X (testimonial, promotion based social media dan
eWom) has value zero so the value of purchase
intention is 12.607.
Testiominal coefficient regression with value
0.332 shows negative correlation which when
testimonial increases 1% so purchase intention will
decrease 0.332.
Next, the value of coefficient regression
promotion based social media is 0.188 that also
shows negative correlation where every raising of
promotion based social media as big as 1% so
purchase intention will decrease 0.118.
Coefficient regression electronic word of mouth
shows positive value as big as 0.199 that means every
upgrading of electronic word of mouth as big as 1%
so purchase intention will increase 0.199.
4.3 Hypothesis test
Value F table with significance (α) 0.05 as big as
1.405. Based on the result of test above, it can be got
value f count is 9.216 > 1.405 (F table), and also has
significant value 0.00< α (0.05). So hypothesis that
testimonial, social media based promotion and
electronic word of mouth influences siginificantly
toward purchase intention is accepted. It means that
variable x simultaneously influence toward purchase
intention.
Value of T table for n=97-k-1 with significance
level (α) 0.05 is 1.99. The result of the test above for
variable X1 (testimonial) has value Tcount -3.547 <
1.99 also significance 0.001 < 0.05 so hypothesis that
testimonial influences significantly toward purchase
intention is accepted, the value of testimonial
negative shows the opposite relation with purchase
intention. Variable X2 (promotion based social
media) has value Tcount as big as -2.268 < 1.99 and
also significant value 0.026 < 0.05 so hypothesis that
stated social media based promotion infuences
significantly toward purchase intention is accepted.
Promotion value based social media negative show
the opposite relation with purchase intention. Value
Tcount electronic Word Of Mouth as big as 4.415 >
1.99 and also significant value 0.000 < 0.05 shows
that hypothesis that states electronic word of mouth
influences significantly toward toward purchase
intention is accepted. Positive value shows electronic
word of mouth has in line correlation and also gives
contribution toward purchase intention.
4.4 Coefficient Determination
Based on the result above, it can be concluded that
testimonial, social media based promotion and
electronic word of mouth give contribution 20.4%
toward purchase intention, while 78.6% is influenced
by other variables that aren't studied. So it can be
concluded that independent variables in explaining
variable variation is very limited.
5 CONCLUSIONS
Testimonial has negative value, it shows the worse
testimonial given the more increasing of consumers'
purchase intention because they have less trust for
testimonies on social media of owners and believe in
owners' statements. Significant value shows that
testimonial influences purchase intention. Promotion
based media social has negative value, it shows that
the rarer promotion done in social media, the more
purchase intention because many consumers and the
members of social media know if the owner has good
reputation. Significant value shows that promotion
based social media has influence toward purchase
intention. Electronic word of mouth has positive
value and significant. Which the wider reach of
electronic word of mouth will increase customers'
purchase intention on Laris online shop. On the
whole, Testimonial, Social Media Based Promotion
and Electronic Word Of Mouth have big influence as
big as 20.4% toward Purchase Intention. This shows
ANCOSH 2018 - Annual Conference on Social Sciences and Humanities
80
that there are many other variables which aren't
studied and also influence toward purchase intention.
ACKNOWLEDGEMENTS
The writers want to express gratitude to: Ir. Djoko
Rahardjo, MP as Rector of Kadiri Univesity (UNIK),
for permitting us to make Kadiri University as object
of this research, Drs. Ariadi Santoso, MM. the Dean
of Economics Faculty in Kadiri Univesity, all of the
resources persons and the lecturers and staff in
Economics Faculty who cooperate and support.
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