INTERNATIONAL JOURNAL OF SOCIAL SERVICE AND
RESEARCH |
THE EFFECT OF SOCIAL MEDIA MARKETING EFFORT ON CUSTOMER
RESPONSE THROUGH BRAND EQUITY IN STARBUCKS STORE
Yessica Ayu Febryanta Ginting
Universitas Sumatera Utara,
North Sumatera, Indonesia
Email: [email protected]
Abstract
This study aims to analyze the effect of Social Media Marketing Efforts
on Customer Response, the Effect of Social Media Marketing Efforts on Brand
Equity, the Effect of Brand Equity on Customer Response, and the Effect of
Social Media Marketing Efforts on Customer Response through Brand Equity in
Starbucks Store. Furthermore, this study also aims to analyze the most
effective policies that can be implemented by Starbucks management in an effort
to implement Social Media Marketing Efforts and increase the level of Brand
Equity products and Customer Response at the Starbucks Store. This research was
conducted in three Starbucks District 33 Medan store (Hermes, Focal Point and
Manhattan). The number of samples of this study amounted to 185 people. The
analytical method in this study uses the Structured Equation Model (SEM) with
the Smart PLS 3.0 Program. The results of this study found that Social Media
Marketing Efforts had a positive and significant effect on Customer Response,
Social Media Marketing Efforts had a positive and significant effect on Brand
Equity, Brand Equity had a positive and significant effect on Customer
Response, and Brand Equity was able to mediate the influence of Social Media
Marketing Efforts towards Customer Response. Starbucks management can apply
strategies such as: increased brand awareness, import reputation, increased
relationship, brand development, and increased purchase intention.
Keywords: Brand Equity; Customer Response; Social Media Marketing Efforts
Received 16
November 2022, Revised 11 December 2022, Accepted 19 December 2022
INTRODUCTION
In the last year, the growth of the food and
beverage business grew to 8.67% in 2018 (Tempo.com, 2019). Apart from growing,
the food and beverage industry also continues to innovate, especially the
beverage industry, as evidenced by the increasing number of new beverage
industries, one of which is the beverage industry or businesses that focus on
selling drinks made from processed coffee in the form of coffee shop
businesses. In addition, based on data from the Ministry of Agriculture in
2017, the total consumption of coffee and processed products is predicted to
increase from 2017-2021 with an average growth of 8.22% annually, thus
indicating that coffee products can be a mainstay commodity in Indonesia.
Global economic
conditions that have occurred in recent years have encouraged companies to know
the relationship between the brands of products produced by companies (brand
equity) and consumer responses through the application of social media
marketing efforts (Bruhn et al., 2012; Kim & Ko, 2012). In addition,
based on Kapferer (2009)
it was found that consumers will tend to choose a brand based on two main
factors, namely: pleasure and pride in using products from that brand. In
addition, the level of existence of a brand can occur if the brand is able to
create four aspects, namely: brand awareness, brand association, brand loyalty
and perceived quality (Aaker, 2014). Research from Kim and Ko (2012)
and Godey et al. (2016)
found that brand equity is able to mediate the relationship between social
media marketing efforts and customer response.
social media has been able to change
the general paradigm of people who still use conventional systems to
communicate with other people into a more modern system with a high level of
efficiency. Research conducted and posted on the marketingcloud.com website
(2019) found that 90% of people decide to make purchases driven by
advertisements carried out by companies on social media. Other research results
from Buckarma et al. (2017)
found that almost 88% of retail, media, IT and travel companies have used various
social media platforms as a means of communicating with potential customers,
besides that there are as many as 42% of these companies that have used an
integrated system of various social media as a tool or media to implement the
company's marketing strategy.
So that social media has been used as one of the means
used to carry out product marketing or what is also commonly referred to as
social media marketing efforts.
PT. Sari Coffee Indonesia, or better known as
Starbucks Indonesia, is a company engaged in the retail sector, especially in
the coffee industry, which uses social media as a means of carrying out
marketing activities. Starbucks is a coffee shop from the United States which
is the largest coffee shop in the world with more than 28,000 stores in 62
countries and opened its first shop in Indonesia on May 17, 2002 which has
spread in 320 different locations in more than 22 cities (www.starbucks.co.id, 2019).
This
research was conducted at the Medan City Starbucks outlet in the 33 (thirty three) district of Medan which consists of outlets:
Cambridge, Cemara, Hermes, Regale, Focal Point, and
Manhattan. The relation to customer response is assessed from the company's
sales level, where based on the results of interviews with management it was
found that in 2018, outlets were divided into two categories based on sales
levels, namely as follows:
Table 1
List of
Income and Visits at Oulet District 33 Medan in 2018
Low
Sales Rate |
Proportion |
High
Sales Rate |
Proportion |
|
Hermes |
30% |
Cambridge |
70% |
|
Focal Points |
Cemara |
|
|
|
Manhattan |
Regale |
|
Source: Starbucks Management District 33 Medan (2019)
Based
on Table 1, information was obtained that there were three outlets classified
as having low sales levels, namely: Hermes, Focal Point and Manhattan, while
outlets with high sales levels were: Cambridge, Cemara
and Regale. In addition, based on interviews with researchers with Starbucks
management in Medan City, it was also found that at certain moments such as
fasting and during working hours, sales at Starbucks were relatively low. In
addition, based on observations from researchers of several Starbucks outlets,
sales were relatively low even though sales promotions had been implemented
posted on social media Line and Instagram which were the same as other outlets
and these outlets were also very close to crowded centers such as: campuses,
schools and offices, the level of sales is also relatively less increase
significantly. So, based on this it indicates a problem with the policy or
marketing strategy set by Starbucks management in the city of Medan, especially
for the three outlets with low sales.
Based on interviews
with Starbucks district 33 Medan management, information was obtained that the
Starbucks Indonesia Instagram Official Account was created in addition to
informing every latest information about Starbucks and its products through
Photo-sharing and Insta-stories, as well as a medium for every consumer or
follower to communicate directly with management. This is reflected in the many
comments from followers which were replied to or responded to by management.
The problems found by researchers related to
the implementation of social media marketing in district 33 Medan are still
centralized and management in each region in Indonesia does not have the
authority to implement their own marketing policies at outlets or in their
area. Besides that, based on the results of a survey conducted by researchers
on several consumers at Starbucks outlets, it was found that not all consumers
were interested in the promotional content offered by Starbucks through social
media, because most promotions used conditions that not all consumers could
afford to fulfill these requirements. such as: having a BCA member card, debit
and credit card and having a Starbucks tumbler. Based on the explanation of
this background, the researcher formulated the title of this study "The
Influence of Social Media Marketing Effort on Customer Response Through Brand
Equity at Starbucks Outlets".
METHOD
A. Types of research
The data
approach used in this study is a quantitative data approach (Quantitative
Research) using research methods with surveys (Creswell & Poth, 2016). In addition, this
research also uses observation methods as an observation method as a way for
researchers to determine the suitability of survey results with problems that
occur at research locations.
B. Population and Research
Sample
The population in this study were all
Starbucks District 33 Medan customers (Hermes, Focal Point and Manhattan). The
sample is part of the population taken in certain ways that represent the
population. This research was conducted using a non-probability sampling method
(non-random sampling) using a purposive sampling technique, where the sample
was selected based on its characteristics. The proportion or distribution of
the number of research samples is as follows:
Table 2
Research Sample
No |
Starbucks
store name |
Number
of Samples |
1 |
Starbucks Focal Point |
63 |
2 |
Manhattan Starbucks |
63 |
3 |
Starbucks Hermes |
59 |
Amount |
185 |
Source:
Results Processed by Researchers (2019)
C. Types and Data Collection
Techniques
In this study, there were two types of
data collected, namely primary data and secondary data. Primary data is a data
source that directly provides data to data collectors (Sugiyono, 2018). In this study,
the primary data source was obtained from the results of a questionnaire that
will be distributed to Starbucks customers in Medan City. The questionnaire
distributed consisted of 37 closed statements representing the three variables
studied.
The method used in distributing the
questionnaires in this study was a self-administered survey. This study also
uses secondary data, which is primary data that has been further processed and
presented both by primary data collectors and other parties, for example in the
form of tables or diagrams. Secondary data is used by researchers to provide
additional descriptions, complete descriptions, or for further processing. This
secondary data was obtained through a literature study, namely by reading,
studying, citing from the literature related to the problem being researched, company
documents and archives and documentation of the research location.
D. Validity and Reliability Test
1. Validity test
Validity testing was carried out at the
same three outlets in this study, namely: Hermes, Focal Point and Manhattan
with a total of 30 respondents outside the study sample. The value requirements
for each of these instruments can be seen in Table 3.
Table 3
The Size of
the Validity of the Research Instrument
Validity Instrument |
Value Terms |
Kaiser-Meyer-Olkin Measure of Sampling Adequacy (KMO MSA) Statistical measurement that
describes the proportion of variation in variables that are general
variables, namely variations caused by factors in the study |
≥
0.50 |
Source:
Malhotra (2010)
The
following are the results of validity testing using Kaiser-Meyer-Olkin Measure
of Sampling Adequacy:
Table 4
Results of
Testing the Validity of Research Instruments
Score Kaiser-Meyer-Olkin Measure of Sampling Adequacy
(KMO MSA) |
|||
Number |
Social Media Marketing Efforts |
Brand Equity |
Customer Response |
1 |
0.809 |
0.716 |
0.711 |
Source: SPSS Processed Results (2019)
As for
value, Anti Image from each instrument the statements of the three variables in
this study are as follows:
Table 5
Results of
Anti-Image Value of Research Instruments
Anti-Image value |
|||
Number |
Social Media Marketing Efforts |
Brand Equity |
Customer Response |
1 |
0.848 |
0.516 |
0.684 |
2 |
0.723 |
0.528 |
0.834 |
3 |
0.831 |
0.688 |
0.644 |
4 |
0.726 |
0.773 |
0.799 |
5 |
0.929 |
0.618 |
0.696 |
6 |
0.871 |
0.707 |
0.651 |
7 |
0.846 |
0.754 |
0.757 |
Anti-Image value |
|||
Number |
Social Media Marketing Efforts |
Brand Equity |
Customer Response |
8 |
0.799 |
0.885 |
0.549 |
9 |
0.800 |
0.623 |
0.546 |
10 |
0.907 |
0.793 |
0.766 |
11 |
0.744 |
0.763 |
0.733 |
12 |
0.816 |
0.772 |
|
13 |
0.870 |
|
|
14 |
0.746 |
Source:
SPSS Processed Results (2019)
Based on the results of testing the
Kaiser-Meyer-Olkin Measure of Sampling Adequacy values and the Anti-Image
values of all the statement instruments of the three research variables, it
was obtained that the Kaiser-Meyer-Olkin Measure of Sampling Adequacy and
Anti-Image values were > 0.5. So that all statement instruments in this
study were declared valid.
2. Reliability Test
Reliability testing was carried out at
the same three outlets in this study, namely: Hermes, Focal Point and Manhattan
with a total of 30 respondents outside the study sample. The following are the
results of testing the reliability of the statement instrument in this study:
Table 6
Research
Instrument Reliability Test Results
Score Cronbach Alpha |
|||
Number |
Social Media Marketing Efforts |
Brand Equity |
Customer Response |
1 |
0.948 |
0.866 |
0.866 |
Source: SPSS Processed Results (2019)
Based on the reliability test of the
statement instrument above, it was found that the Cronbach alpha value was >
0.6. so that it can be concluded that all statements are declared reproducible
or meet the assumptions of reliability.
E.
Data
analysis method
Data analysis was carried out to ensure that
the data obtained was as needed. The analysis of this research was carried out
using the statistical application program SPSS (Statistical Package for The
Social Science) version 21 to test the validity and reliability of the
questionnaire and Smart-PLS version 3.0 to analyze the research data.
1. Descriptive Analysis
Descriptive analysis serves to describe or give an
overview of the object under study through sample or population data as it is,
without conducting analysis and making general conclusions (Sugiyono, 2013). In
this study, descriptive analysis will be obtained from processing the results
of the questionnaires that have been distributed to respondents.
2.
Path
Analysis
In this study, path analysis was used to determine the
direct and indirect effects of Social Media Marketing Effort (variable X) and
on Brand Equity (variable Y) and its impact on Customer Response (variable Z). Malhotra (2010)
describes the path analysis steps to be used in this study, as follows:
a) Develop
a causality relationship model between variables which in this case is called a
path diagram.
Figure 1.
Path Diagram Study
b) Conversion
of path diagrams into structural equations
1) Y
= Pix +ɛ1
Information:
Y = Brand
Equity
Pyx = Path
coefficient for the direct effect of X on Y
ɛ1 = Path
coefficient for the influence of other variables outside the ε1 model on Y
2) Z
= Pzx + Pzy +ɛ2
Information:
Z =
Customer Response
Pzx = Path
coefficient for the direct effect of X on Z
P zy = Path coefficient for the direct effect of Y on Z
ɛ2 = Path
coefficient for the influence of other variables outside the ε2 model on Z
c) Check
path analysis assumptions
1) The
relationship between variables in the model is linear and adaptive
2) All
errors (residuals) are assumed to be uncorrelated with the others
3) Observed variables measured
without error (valid & reliable)
4) The
model is only in the form of recursive or unidirectional causal flow
5) The
variables are measured by an interval scale
d) Calculates
the path coefficient through the coefficient of determination
e) Model
Testing
The
hypothesis test carried out is as follows:
1) Test
the significance of the effect of each independent variable on the intervening
variable.
2) Test
the significance of the effect of the intervening variable on the dependent
variable. The hypothesis will be accepted or rejected when:
i. t
count > t table then the hypothesis is accepted
ii. t
count ≤ t table then the hypothesis is rejected
A. Descriptive Analysis of
Research Respondents' Answers
Descriptive analysis serves to see an overview
of the results of research on Social Media Marketing Effort, Brand Equity and
Customer Response. With a sample of 185 people. To see the answers and provide
conclusions about the answers to the questionnaire, a descriptive test was
carried out using the frequency and percentage distribution approach.
1. Descriptive Analysis of
Social Media Marketing Efforts
The general description of Social Media
Marketing Efforts at the three Starbucks District 33 Medan outlets (Hermes,
Focal Point and Manhattan) has five dimensions, namely Entertainment,
Interaction, Trendiness, Customazation, and WOM.
Based on the results of data processing sourced from respondents, an overview
of Social Media Marketing Efforts was obtained at three Starbucks District 33
Medan outlets (Hermes, Focal Point and Manhattan) as follows:
Table 7
Description
of Social Media Marketing Efforts
Social Media Marketing Effort Variable
Dimensions |
Answer |
Actual Score |
Ideal Score |
Percentage |
||||
5 |
4 |
3 |
2 |
1 |
||||
Entertainment |
555 |
1184 |
324 |
68 |
6 |
1582 |
2775 |
57.0% |
interactions |
445 |
1148 |
420 |
60 |
9 |
2082 |
2775 |
75.0% |
trendy |
660 |
1248 |
228 |
58 |
6 |
2200 |
2775 |
79.3% |
Customization |
110 |
788 |
342 |
58 |
8 |
1306 |
1850 |
70.6% |
WOM |
505 |
1264 |
306 |
30 |
6 |
2141 |
2775 |
77.2% |
9311 |
12950 |
71.90% |
Source: Primary Data, Processed by Statistics (2019)
Based
on Table 7 regarding the description of Social Media Marketing Efforts,
information is obtained that the percentage level of Social Media Marketing
Efforts is relatively high, namely 70.84%. This indicates that the
implementation of the Social Media Marketing Efforts policy has been accepted
by customers at three Starbucks outlets (Hermes, Focal Point and Manhattan).
products sold at three Starbucks outlets (Hermes, Focal Point and Manhattan).
These results are also consistent with the results of interviews with three PIC
Stores Hermes, Focal Point and Manhattan, where Social Media Marketing Efforts
were able to increase the level of customer visits at Starbucks outlets. These
results are also supported by the findings from Kim and Ko (2012)
which found that Social Media Marketing Efforts can change customer perceptions
of the level of prestige of the products offered by companies to their
customers.
The dimension with the highest
percentage level is dimension trendy which reached 79.3%, where the indicator
that made the biggest contribution was the Starbucks Indonesia Social Media
indicator presenting the latest product promos. The high dimension of trendiness,
especially the indicator for presenting the latest product promotions, is a
manifestation or realization of promotional actions carried out by Starbucks
Indonesia Management to quickly inform and offer the latest products and this
has received a positive response from customers through purchasing actions at
Hermes outlets, Focal Points and Manhattan.
The dimension that is in second place is the word
of mouth dimension which reaches a percentage of 77.2% where the indicator that
gives the biggest contribution is the indicator related to re-sharing
information about products or promotions from Starbucks Indonesia. Based on the
results of interviews between researchers and research respondents, it was
found that around 60% of respondents re-shared product or promotion information
either by private chat or direct messages to colleagues or colleagues, to
publishing information using features available on social media such as
features insta-stories on Starbucks social media. The
actions taken by these respondents are a manifestation of the pride of
customers in knowing the latest information from Starbucks Indonesia and
sharing or sharing it with others.
The dimension that is in the third rank is
dimension interactions which reached a percentage of 75%. The indicator that
made the biggest contribution was the indicator that respondents could share
information on Starbucks Indonesia Official social media. Based on the results
of the researcher's direct observation of Starbucks Indonesia Official social
media, information was obtained that each follower can directly interact with
other followers and can also interact directly with the Starbucks Indonesia
Official social media admin. The interactions that occur show that Starbucks
Indonesia Official social media has been able to become a forum for
communication related to products, promotions and other aspects, as well as
with the interaction it will make it easier for Starbucks Indonesia management
to find out the response of customers or followers to new products launched by
management and promotions implemented by management. Based on these results,
Starbucks Indonesia Management has been able to create communication patterns
between customers and Starbucks products, customers with Starbucks customers
and customers with the Starbucks Indonesia Official social media admin (Gallaugher & Ransbotham, 2010; Kaplan & Haenlein, 2010).
The dimensions that are ranked fourth are
dimensions customization, where this dimension has a percentage level of 70.6%.
The indicators that make the biggest contribution to this dimension are
indicators related to the availability of customer care on Starbucks Indonesia
Official social media which can make it easier for customers or followers to
get information. The results of researchers' observations of Starbucks
Indonesia Official social media obtained information that customer care is
available either directly through social media or through a hotline provided by
Starbucks Indonesia management.
The dimension with the lowest percentage level is
the dimension entertainment with a percentage of 57%, the indicator with the
lowest contribution rate is an indicator related to social media content,
Starbucks Indonesia Official displays content about customer response and the
display of Starbucks Indonesia Official social media is attractive to
followers. Based on these findings, it can be concluded that the management of
Starbucks Indonesia still has to create content that is more attractive to
customers or followers. Where according to the findings of (Kaye, 2007; Muntinga et al., 2011; Park et al., 2009)
who found that innovative and creative content will stimulate every follower or
customer to take action from buying to make recommendations to others.
As one of the pioneers who use social media as a marketing
platform, Starbucks Indonesia must pay close attention to every aspect of the
Social Media Marketing Efforts where based on the results of the answers from
the respondents listed in the distribution of answers, it can be concluded that
there are still shortcomings in Starbucks Management, especially the Marketing
section in creating content. which attracts followers or customers to visit
outlets, buy products and inform others about products, promos and services obtained
at Starbucks outlets, especially at Hermes outlets, Focal Point and Manhattan.
Meanwhile, based on the results of the researcher's interview with
the 3 (three) PIC Hermes, Focal Point and Manhattan outlets. Information was
obtained that one Starbucks outlet at one location was a competitor of
Starbucks outlets at another location. Whereas each region or district does not
have the authority to carry out Social Media Marketing Efforts activities that
are different and in accordance with the needs of each outlet, especially at
outlets with relatively lower levels of visits and sales such as: Hermes, Focal
Point, and Manhattan due to the implementation policy Social Media Marketing
Efforts are centralized and concurrent.
Starbucks management must carry out effective and proportionate
Social Media Marketing Efforts activities that can help increase sales from
each Starbucks outlet, especially Hermes, Focal Point and Manhattan outlets.
Where based on the findings of Kelly et.al (2010) the results obtained were that
implementation of Social media marketing efforts will
assist companies in creating closer communication patterns with consumers and
create opportunities to gain a wider market share.
2. Brand Equity Descriptive
Analysis
The general description of Brand Equity
at the three Starbucks District 33 Medan outlets (Hermes, Focal Point and
Manhattan) has four dimensions, namely brand awareness, perceived quality,
brand associations, and brand loyalty. Based on the results of data processing
sourced from respondents, the Brand Equity description at the three Starbucks
District 33 Medan outlets (Hermes, Focal Point and Manhattan) is obtained as
follows:
Table
8
Description
of Brand Equity
Brand Equity Variable Dimensions |
Answer |
Actual Score |
Ideal Score |
Percentage |
||||
5 |
4 |
3 |
2 |
1 |
||||
Brand Awareness |
605 |
1272 |
285 |
30 |
6 |
2198 |
2775 |
79.2% |
Perceived Quality |
965 |
1632 |
381 |
20 |
2 |
3000 |
3700 |
81.1% |
Brand Association |
1330 |
672 |
123 |
10 |
4 |
2139 |
2775 |
77.1% |
Brand Loyalty |
325 |
876 |
213 |
18 |
6 |
1438 |
1850 |
77.7% |
Total |
8775 |
11100 |
79.05% |
Source: Primary
Data, Processed by Statistics (2019)
Based on Table 8 regarding
the description of brand equity variables at Starbucks outlets (Hermes, Focal
Point and Manhattan) information is obtained that the dimension with the
highest percentage level is the dimension of perceived quality with a
percentage level of 81.1%. The indicators that make the biggest contribution
are indicators related to the services provided by baristas or partners who
work at Starbucks Hermes, Focal Point and Manhattan outlets to customers.
Besides that, respondents also gave a positive response to the quality of
products (food and beverages) sold and the products sold met the expectations
of customers or research respondents. These results indicate that the barista
or partner has been able to provide excellent service to all customers and
provide convenience for customers to do activities and buy every product at
Hermes, Focal Point and Manhattan outlets, which is in line with Starbucks
Indonesia's tagline, namely "your third place between home and work” or in
Indonesian, namely “a third place besides home and workplace/ office”.
The
dimensions that are in the second rank are dimensions. Brand Awareness with a percentage rate of 79.2%. The indicators that make
the biggest contribution are indicators related to the sensitivity of customers
or respondents to Starbucks products. In addition, based on interviews with
several regular customers or research respondents, information was obtained
that the products sold at Starbucks outlets have very significant differences
from other products that make it easier for customers to identify or recognize
Starbucks products, which include: the quality of food and beverages is
maintained, product variations are not found in competitors' places and the
taste of food and drinks that are much different from food or drinks sold in
other coffee shops, packaging that displays the Starbucks logo and specifically
for merchandise that is not sold in other coffee shops.
Some argue that Starbucks products have become
"generic" products (food and beverages) at a premium price with the
best quality. Besides that, based on direct observations of researchers, it was
found that there had been a transformation carried out by Starbucks
International Management, especially Starbucks Indonesia, where previously
Stabucks focused on selling processed coffee products but in recent years have
been selling various processed drinks or commonly called frapuchino. This
result is also the realization of the change in the Starbucks logo which
removes the word coffee from the Starbucks logo. Meanwhile, based on direct
observations made by researchers at Hermes, Focal Point and Manhattan outlets,
it was found that 60% of purchases made by customers were purchases for
processed drinks other than coffee. So with these results it can be concluded
that Starbucks Indonesia has been able to carry out a good transformation, but
Starbucks Indonesia also still has to maintain its identity as a coffee shop
and customers who really like Starbucks processed coffee drinks. Based on these
findings, it can be concluded that customers or respondents tend to buy
Starbucks products because they are safe and comfortable with every product
offered (Godey et al., 2016).
The third ranked dimension is the brand loyalty dimension with a
percentage level of 77.7%. The indicator that gives the highest contribution is
the indicator related to the desire to find the nearest Starbucks outlet. Based
on the results of direct observations and interviews with the PIC of Starbucks
Hermes, Focal Point and Manhattan outlets, it was found that there were
differences between these outlets related to the proportion of numbers, where
the number of regular customers at Manhattan outlets was less than that of
Focal Point and Hermes outlets. This can happen due to the location of the
Manhattan outlet which is relatively far away and access to the Manhattan
outlet which is still considered difficult. Another result found by researchers
is that the reason for the majority of regular customers deciding to buy
Starbucks products at Hermes and Focal Point outlets is location and easy
access and proximity to the barista. Meanwhile, based on interviews with
several respondents and customers, information was obtained that the main
reason they were loyal to Starbucks was the quality of Starbucks products and
the global brand. These results are in line with the opinion of Aaker (2014)
which states that customer loyalty to a brand will be created if the company is
able to provide maximum satisfaction to all of its customers.
The fourth dimension is brand association with a percentage level
of 77.1%. The indicators that make the biggest contribution are indicators
related to the atmosphere of the store that provides comfort. The results of
direct observation of Hermes, Focal Point and Manhattan outlets showed that all
of these outlets had the same theme starting from: store outline, product
display, and lighting, in which this was to create the same comfort felt by
customers for every outlet they visited.
3. Customer Response Descriptive
Analysis
The general description of Customer
Response at the three Starbucks District 33 Medan outlets (Hermes, Focal Point
and Manhattan) has three dimensions, namely: brand preference, pay premium
price and customer loyalty. Based on the results of data processing sourced
from respondents, the Customer Response description at the three Starbucks
District 33 Medan outlets (Hermes, Focal Point and Manhattan) is obtained as
follows:
Table 9
Description
of Customer Response
Dimensions of Customer
Response Variables |
Answer |
Actual Score |
Ideal Score |
Percentage |
||||
5 |
4 |
3 |
2 |
1 |
||||
Brand Preferences |
540 |
820 |
138 |
38 |
4 |
2158 |
2775 |
77.8% |
Pay Premium Prices |
480 |
820 |
138 |
38 |
4 |
1480 |
1850 |
80.0% |
Customer Loyalty |
1125 |
2556 |
567 |
82 |
16 |
4346 |
5550 |
78.3% |
Total |
7984 |
10175 |
78.47% |
Source:
Primary Data, Processed by Statistics (2019)
Based on Table 9 regarding the description of the customer
response variable, the result is that the dimension with the highest percentage
level is pay premium price with a percentage level of 80%. The indicators that
make the biggest contribution are indicators related to actions that continue
to buy Starbucks products even though the price rises. These results indicate a
high level of loyalty from customers or research respondents to Starbucks
Indonesia and its products. The results of interviews with regular customers
show that the majority of regular customers do not mind if there is an
increase, provided that the quality of service and products must also be
improved. As for the researcher's interview with three Hermes PICs, Focal Point
and Manhattan received information that there had been a price increase in
mid-2019 of around 5% but this increase did not significantly affect the level
of visits at the three outlets. These results are in line with the statements
in the research Seo and Park (2018)
and Godey et al. (2016) that customers who continue to buy products
when product prices are rising are customers who have a high level of
confidence in products and brands.
Dimensions with the second rank are dimensions customer
loyalty with a percentage rate of 78.3%. The indicators that make the biggest
contribution are indicators related to buying Starbucks products regularly and
recommending them to others. Based on the results of interviews with customers
and respondents, information was obtained that there were several customers who
routinely or even bought Starbucks products almost every day to support (become
a mood booster) their daily activities. In addition, researchers also found
that many communities regularly visit Hermes, Focal Point and Manhattan
outlets. These results further demonstrate the high level of loyalty held by
customers which can have a positive impact on increasing visits and sales at
Hermes, Focal Point and Manhattan outlets. These results are in harmony with statements in research Seo and Park (2018)
and Godey et al. (2016)
that the level of customer loyalty to a product is motivated by experience in
using products from certain brands.
The dimensions that are ranked third are dimensions brand
preferences with a percentage of 77.8%. The indicators that give the highest
contribution are indicators related to making Starbucks products the first
choice. These results further emphasize that the loyalty level of Starbucks
customers is quite high and will have a positive impact on the level of visits
at Hermes, Focal Point and Manhattan. These results are consistent with the
findings of Truong et al. (2010), namely: Brand Preferences usually can be assessed
from the level of customer interest in a brand and the customer's ability to
recognize product specifications from brand of
choice.
B. Partial Least
Square (PLS) Model Scheme
In this study, hypothesis testing used the Partial Least Square
(PLS) analysis technique with the smartPLS 3.0
program. The following is a schematic model of the PLS program being tested:
Figure 2 Outer Model
Source:
Processed Results of Smart PLS 3.0 (2019)
Figure 3. Inner Model
Source:
Processed Results of Smart PLS 3.0 (2019)
C. Outer Model
Evaluation
1. Convergent
Validity
Testing convergent
validity using the value of outer loading or loading
factor. An indicator is declared to meet convergent validity in the good
category if the outer loading value is > 0.7. The following is the outer
loading value of each indicator on the research variables:
Table 10
Convergent Validity Test Results
with Outer Loading
Variable |
Indicator |
Outer
Loading |
Social
Media Marketing Effort (X) |
x1.1 |
0.678 |
x1.2 |
0.799 |
|
x1.3 |
0.877 |
|
x1.4 |
0.834 |
|
x1.5 |
0.780 |
|
x1.6 |
0.829 |
|
x1.7 |
0.865 |
|
x1.8 |
0.868 |
|
x1.9 |
0.872 |
|
x1.10 |
0.848 |
|
x1.11 |
0.779 |
|
x1.12 |
0.740 |
|
x1.13 |
0.855 |
|
x1.14 |
0867 |
|
Brand
Equity (Y) |
y1.1 |
0.760 |
y1.2 |
0.909 |
|
y1.3 |
0.781 |
|
y1.4 |
0.772 |
|
y1.5 |
0.629 |
|
y1.6 |
0.707 |
|
y1.7 |
0.605 |
|
y1.8 |
0.644 |
|
y1.9 |
0811 |
|
y1.10 |
0.820 |
|
y1.11 |
0.729 |
|
y1.12 |
0.576 |
|
Customer
Response (Z) |
z1.1 |
0.765 |
z1.2 |
0.735 |
|
z1.3 |
0.689 |
|
z1.4 |
0.703 |
|
z1.5 |
0.808 |
|
z1.6 |
0.670 |
|
z1.7 |
0.661 |
|
z1.8 |
0.703 |
|
z1.9 |
0.745 |
|
z1.10 |
0.696 |
|
z1.11 |
0.686 |
Source:
Processed Results of Smart PLS 3.0 (2019)
Based
on the data presented in Table 10 above, it is known that each of the research
variable indicators has an outer loading value of > 0.7. However, it seems
that there are still a number of indicators that have an outer loading value
<0.7. According to Chin, as quoted by (Ghazali & Latan, 2015), an outer loading
value between 0.5 – 0.6 is considered sufficient to meet the requirements of
convergent validity. The data above shows that there are no variable indicators
whose outer loading values are below 0.5, so that all indicators are declared
feasible or valid for research use and can be used for further analysis.
2. Discriminant
Validity
In this section, the results of the discriminant validity test
will be described. The discriminant validity test uses the cross-loading value.
An indicator is declared to meet discriminant validity if the indicator's cross
loading value on the variable is the largest compared to other variables. The
following is the cross-loading value for each indicator:
Table
11
Testing Discriminant Validity with Cross Loading
|
Brand Equity |
Customer Response |
Social Media Marketing Efforts |
Y1.1 |
0.760 |
0.438 |
0.310 |
Y1.10 |
0.820 |
0.521 |
0.440 |
Y1.11 |
0.729 |
0.336 |
0.221 |
Y1.12 |
0.576 |
0.602 |
0.587 |
Y1.2 |
0.909 |
0.573 |
0.405 |
Y1.3 |
0.781 |
0.381 |
0.258 |
Y1.4 |
0.772 |
0.426 |
0.305 |
Y1.5 |
0.629 |
0.428 |
0.320 |
Y1.6 |
0.707 |
0.493 |
0.344 |
Y1.7 |
0.605 |
0.515 |
0.377 |
|
Brand Equity |
Customer Response |
Social Media Marketing Efforts |
Y1.8 |
0.644 |
0.497 |
0.308 |
Y1.9 |
0.811 |
0.471 |
0.312 |
Z1.1 |
0.495 |
0.765 |
0.561 |
Z1.10 |
0.379 |
0.696 |
0.384 |
Z1.11 |
0.385 |
0.686 |
0.395 |
Z1.2 |
0.435 |
0.735 |
0.609 |
Z1.3 |
0.542 |
0.689 |
0.553 |
Z1.4 |
0.555 |
0.703 |
0.509 |
Z1.5 |
0.623 |
0.808 |
0.644 |
Z1.6 |
0.387 |
0.670 |
0.418 |
Z1.7 |
0.426 |
0.661 |
0.415 |
Z1.8 |
0.430 |
0.703 |
0.479 |
Z1.9 |
0.528 |
0.745 |
0.715 |
x1.1 |
0.244 |
0.405 |
0.678 |
x1.10 |
0.483 |
0.645 |
0.848 |
x1.11 |
0.327 |
0.524 |
0.779 |
x1.12 |
0.299 |
0.459 |
0.740 |
x1.13 |
0.403 |
0.660 |
0.855 |
x1.14 |
0.458 |
0.719 |
0.867 |
x1.2 |
0.410 |
0.576 |
0.799 |
x1.3 |
0.482 |
0.674 |
0.877 |
x1.4 |
0.407 |
0.560 |
0.834 |
x1.5 |
0.358 |
0.533 |
0.780 |
x1.6 |
0.475 |
0.614 |
0.829 |
x1.7 |
0.463 |
0.660 |
0.865 |
x1.8 |
0.477 |
0.694 |
0.868 |
x1.9 |
0.413 |
0.695 |
0.872 |
Source: Processed Results of Smart
PLS 3.0 (2019)
Based on the data presented in Table 11 above, it can be seen that
each indicator on the research variable has the largest cross loading value on
the variable it forms compared to the cross loading
value on other variables. Based on the results obtained, it can be stated that
the indicators used in this study have good discriminant validity in compiling
their respective variables. In addition to observing the cross
loading value, discriminant validity can also be known through other
methods, namely by looking at the average variant extracted (AVE) value for
each indicator, it is required that the value must be > 0.5 for a good model
Table 12
Average Variant Extracted (AVE)
Test
Variable |
AVE |
Social Media
Marketing Efforts |
0.677 |
BrandEquity |
0.540 |
Customer Response |
0.512 |
Source:
Processed Results of Smart PLS 3.0 (2019)
Based
on the data presented in Table 12 above, it is known that the AVE value of the
Social Media Marketing Efforts, Brand Equity and Customer Response variables is
> 0.5. Thus, it can be stated that each variable has good discriminant
validity.
3. Composite
Reliability
Composite Reliabilityis the
part that is used to test the value of the reliability of indicators on a
variable. A variable can be declared to meet composite reliability if it has a
composite reliability value of > 0.6 (Ghazali & Latan, 2015). The
following is the composite reliability value of each variable used in this
study:
Table 13
Composite Reliability Testing
Variable |
Composite Reliability |
Social Media
Marketing Efforts |
0967 |
Brand Equity |
0.933 |
Customer Response |
0.920 |
Source:
Processed Results of Smart PLS 3.0 (2019)
Based
on the data presented in Table 12 above, it can be seen that the composite
reliability value of all research variables is > 0.6. These results indicate
that each variable meets composite reliability so that it can be concluded that
all variables have a high level of reliability.
4. Cronbach Alpha
The
reliability test with the composite reliability above can be strengthened by
using the Cronbach alpha value. A variable can be declared reliable or meets cronbach alpha if it has a cronbach
alpha value > 0.7 (Ghazali & Latan, 2015). The following is
the Cronbach alpha value of each variable:
Table 13
Cronbach Alpha Testing
Variable |
Cronbach Alpha |
Social Media
Marketing Efforts |
0.963 |
Brand Equity |
0921 |
Customer Response |
0.905 |
Source:
Processed Results of Smart PLS 3.0 (2019)
Based
on the data presented above in Table 13, it can be seen that the Cronbach alpha
value of each research variable is > 0.7. Thus, these results can indicate
that each research variable has met the requirements for the Cronbach alpha
value, so it can be concluded that all variables have a high level of
reliability.
D. Evaluation of Inner Model
In this study the
evaluation of the inner model will be explained regarding the results of the
path coefficient test, goodness of fit test and hypothesis testing.
1. Test Path Coefficient
Based
on the inner model image in Figure 2 it can be explained that the largest path
coefficient value is indicated by the influence of the Social Media Marketing
Efforts variable on Customer Response of 9,231, then in the second rank is the
effect of Social Media Marketing Efforts on Brand Equity of 7,522 and in the
third rank is the influence of Brand Equity to Customer Response of 6,722.
These
results indicate that the overall in this model haspath
coefficient with a positive number. This shows that the greater the value of
the path coefficient on an independent variable on the dependent variable, the
stronger the influence between the independent variables on the dependent variable.
2. Goodness of Fit Test
Based
on the data processing that has been done using the smartPLS
3.0 program, the R-Square value is obtained as follows:
Table 14
R-Square value
Variable |
R-Square |
Brand Equity |
0.254 |
Customer Response |
0.669 |
Source:
Processed Results of Smart PLS 3.0 (2019)
Based
on the data presented in Table 14 above, it can be seen that the R-Square value
for the Brand Equity variable is 0.254. The acquisition of this value explains
that the percentage of Brand Equity competence can be explained by Social Media
Marketing Efforts of 25.4%. Then for the R-Square value obtained by the
Customer Response variable of 0.669. This value explains that Customer Response
can be explained by Social Media Marketing Efforts and Brand Equity of 66.9%.
The goodness of fit assessment is known from
the Q-Square value. The Q-Square value has the same meaning as the coefficient
of determination (R-Square) in the regression analysis, where the higher the
Q-Square, the better or more fit the model can be with the data. The results of
calculating the Q-Square value are as follows:
Q-Square = 1-[(1-R21) x (1-R22)]
= 1[(1-0.254) x (1-0.669)]
= 1
– (0.746 x 0.331)
= 1-0.25
= 0.75
Based
on the calculation results above, a Q-Square value of 0.75 is obtained. This
shows the magnitude of the diversity of the research data that can be explained
by the research model is 75%. While the remaining 25% is explained by other
factors that are outside this research model. Thus, from these results, this
research model can be stated to have good goodness of fit.
E. Hypothesis testing
Based
on the data processing that has been done, the results can be used to answer
the hypothesis in this study. Hypothesis testing in this study was carried out
by looking at the T-Statistics values and P-Values. The research hypothesis
can be declared accepted if the P-Values <0.05. The following Table.
Table 15
Research Hypothesis Testing
hypothesis |
Influence |
T-Startistics |
P-Values |
Results |
H1 |
Social
Media Marketing Efforts à
Customer Response |
9,231 |
0.000 |
Accepted
|
H2 |
Social
Media Marketing Efforts à
Brand Equity |
7,522 |
0.000 |
Accepted |
H3 |
Brand
Equity à
Customer Response |
6,722 |
0.000 |
Accepted |
H4 |
Social
Media Marketing Efforts à
Brand Equity à
Customer Response |
5,288 |
0.000 |
Accepted |
Source:
Processed Results of Smart PLS 3.0 (2019)
Based
on the data presented in Table 15, it can be seen that of the three hypotheses
proposed in this study, all are acceptable because each effect shown has a
P-Values <0.05. So that it can be stated that the independent variable to
the dependent has a significant influence and the hypothesis on the intervening
model can also be accepted.
F. Discussion
1. The Effect of Social Media
Marketing Efforts on Customer Response
Based
on the results of testing the research hypothesis, the results show that the
P-Values that form the effect of Social Media Marketing Efforts on Customer
Response is 0.000 and the t-statistics value is positive, so it is stated that
Social Media Marketing Efforts have a positive and significant influence on
Customer Response at Starbucks Hermes, Focal Point and Manhattan outlets. These
results are in line with the results of research conducted by (Godey et al., 2016; Kim & Ko, 2012; Seo & Park, 2018)
who found that the Social Media Marketing Efforts variable is able to increase
the level of Customer Response owned by customers so that they can help the
company to expand its market share.
The
facts found by researchers at three Starbucks outlets namely: Hermes, Focal
Point and Manhattan are quite in accordance with the results of the hypothesis
test that Social Media Marketing Efforts plays a role in increasing Customer
Response in a number of ways including: (1) an increase in the number of visits
when Social Media Marketing Efforts are carried out at promotional activities,
especially at Manhattan outlets, and (2) the implementation of Social Media
Marketing Efforts is carried out according to a predetermined promotion and
product introduction schedule by management besides that it is also adjusted to
other promotional schedules such as promotions from Telkomsel
providers.
Other
facts found by researchers based on direct observations and interviews with
respondents and PIC Starbucks Hermes, Focal Point and Manhattan outlets found
deficiencies in the implementation of Social Media Marketing Efforts, namely:
(1) outlets with relatively low number of visits were not given special
authority to be able to implementing Social Media Marketing Efforts
specifically for these outlets, (2) the number of increased visits when Social
Media Marketing Efforts were carried out was still relatively lower than when
promotions were carried out using Telkomsel
providers, and (3) the majority of respondents or customers stated that there
was a change in promotion (plus the number of requirements ) which is carried
out on social media which makes respondents or customers less interested in the
promotions being offered-shareson Starbucks
Indonesia Official social media.
The
results of these facts make it clear that the implementation of Social Media
Marketing Efforts is relatively good and appropriate and able to increase the
level of visits, but significant improvements are still needed, especially in
creating promotional content that is attractive and in accordance with the
wishes of customers. As found by Godey et al. (2016)
apart from increasing customer confidence and prestige towards a brand and
product, choosing interesting content will help companies to increase the
number of sales and enlarge market reach.
2. The Effect of Social Media
Marketing Efforts on Brand Equity
The
results of the path coefficient test based on the T-Statistics value show that
the influence of Social Media Marketing Efforts on brand equity has the second
strongest level of significance, which is equal to 7,522. These results are
consistent with the results of research found by (Godey et al., 2016; Kim & Ko, 2012)
who found that Social Media Marketing Efforts are an important factor that can
increase the level of brand equity in premium fashion products.
These
results are in accordance with the facts in the field that were found by
researchers through direct observation and interviews with respondents and PICs
of Starbucks Hermes, Focal Point and Manhattan outlets, which were found as
follows: (1) many respondents or customers post purchasing activities and other
activities at a Starbucks store. Where this shows the pride of customers and
respondents for Starbucks products and brands, (2) the content displayed on
official Starbucks Indonesia social media, especially those related to product
introduction, service systems and Susana in each outlet, received a positive
response from followers, (3) the appearance of Starbucks Indonesia Official
social media which gives an exclusive and premium impression gives the same
impression to every customer or respondent, and (4) the majority of customers
know about new products other than processed coffee through social media.
This
result is also in line with the findings of Seo and Park (2018)
who found that implementing Social Media Marketing Efforts will increase the
level of brand awareness and brand image of a company. Besides that, based on
the results of research from Jain and Kumar (2017)
found that the implementation of Social Media Marketing Efforts by Starbucks
management not only aims to increase the number of sales but also to create an
intimate atmosphere with each follower or customer so that Starbucks brands and
products can become the first choice of customers.
3. The Effect of Brand Equity on
Customer Response
The
results of the path coefficient test based on the T-Statistics value show that
the effect of brand equity on customer response has the third strongest level
of significance, namely 6,722. These results are in accordance with the results
of research found by (Godey et al., 2016; Seo & Park, 2018)
who found that brand equity represented by brand awareness and brand image can
increase the level of customer loyalty and is able to encourage customers to
take post-purchase actions that make customers as one of the company's
marketing agents.
The
facts related to the effect of brand equity on customer response were found by
researchers through interviews and direct observation of respondents and PICs
of Starbucks Hermes, Focal Point and Manhattan outlets, which were found as
follows: (1) the majority of customers decide to buy Starbucks products because
they really believe in quality, (2) the majority of customers are satisfied
with the quality of service provided by partners or baristas at Starbucks
Hermes, Focal Point and Manhattan outlets, and (3) there are around 30-35% of
customers who visit Hermes and Focal Point outlets are regular customers.
The
results of testing the hypothesis and the facts above show that the level of
brand equity owned by Starbucks is good enough and is able to encourage
increased customer response, especially for regular customers. This result is
also in line with the findings obtained by Jain and Kumar (2017)
who found that the Starbucks brand is synonymous with the best quality and
excellent service which has a direct impact on the level of customer confidence
in the Starbucks brand and products.
4. The Effect of Social Media
Marketing Efforts on Customer Response Through Brand Equity
The
results of testing the hypothesis and the indirect effect show a positive T-statistics
value (5,288) with a P-Values of 0.000. These results indicate that Social
Media Marketing Efforts is able to influence customer response through brand
equity. These results are consistent with the results of research from (Godey et al., 2016; Seo & Park, 2018)
who found that brand equity acts as an intervening variable in the influence of
Social Media Marketing Efforts on customer response.
Through
the results of this research it is also increasingly clear that the Management
of Starbucks Indonesia has made social media the main marketing platform where
by using social media, management aims to create a positive impression on
customers of Starbucks products and brands and also to increase the number of
visits at each Starbucks outlet, especially outlets. with relatively low levels
of visits such as Hermes, Focal Point and Manhattan. Besides that, the level of
brand equity will also be a determining factor in increasing the number of
visits, especially in increasing the number of regular customers, where
Starbucks management must also strive to create a positive impression of the
brand and products from each customer. The difficulty faced is that there is a
stigma that Starbucks products and brands are very premium, which for some
circles it becomes a barrier to visiting and buying Starbucks products. So that
Management must also be able to create strategies to gain a larger market share
without having to lose the characteristics of Starbucks Indonesia itself.
5. Strategy Analysis
Before carrying out the
strategy analysis for the Management of Starbucks Indonesia, especially the
Management of Starbucks District 33 Medan, the researchers identified aspects
that could be used as references for implementing strategy analysis. The
reference for identifying aspects in this study is in accordance with research
from Nurmanisa et al. (2016),
namely: Value Proportion, Customer Segment, Channels, and customer
relationships. The explanation of the findings from these aspects is as
follows.
a)
Value
Proposition built and offered by Starbucks to customers
Starbucks has
succeeded in delivering a value proposition well, so that customers can
experience a value proposition that is different and unique from other coffee
outlets. However, not all value propositions can be successful. There are 10
elements of the Starbucks value proposition derived from interviews with PIC
Starbucks Hermes, Focal Point and Manhattan in this study. The 10 value
proposition elements contained in Starbucks coffee products and services are
new characteristics, performance, customization, getting the job done, design,
brand/status, price, cost reduction, risk reduction, ability to access and
convenience and usability. The results of the interviews show that, there are
only eight elements of the Starbucks value proposition that are expressed as
satisfied by consumers. Starbucks should improve in-store facilities. So that
all value propositions can be conveyed to customers properly.
b)
Customer Segments in Starbucks District 33 Medan
Customer segment in Starbucks Management is
aiming for the right target, starting from a geographical perspective, namely
Starbucks has one goal, namely we want consumers to feel "Our stores are a
neighborhood gathering place for meeting friends and family". This has
influenced the choice of location for Starbucks to segment customers based on
the type of community. Starting from a community of office people, college
kids, apartment dwellers and premium malls. The demographic aspect is market
segmentation which is divided into several groups based on variables such as
age, gender, occupation, income, education, religion, race, nationality, and
social class. Psychographic aspects of customers are divided into several
groups based on lifestyle, personality and values. The Starbucks segment is one
that is happy with well-known brands and premium prices. Starbucks customer are urban upper middle class
consumers, working adults, young executives who have a habit of spending their
time in coffee shops. And the behavioral aspects of market segmentation are
behavioral, namely customers will be divided into several groups based on
knowledge, ethics, benefits or responses to these products. All aspects are
calculated very carefully and carefully. If market segmentation is in
accordance with mature planning, then the results will also appear to have a
major influence on the company's performance which is always increasing.
Starbucks has a global customer market, so no special adjustments are needed in
selecting market segments. Starbucks performs customer segmentation based on
the type of premium community. By choosing the right market segmentation, it
will influence the formation of a value proposition, namely treating our
partners with respect & dignity.
c)
Channels in Starbucks District 33 Medan
Starbucks District 33
has direct channels or directly through outlets selling products owned by
Starbucks. Channels used by Starbucks in reaching the right customers.
Evidenced by interviews conducted by researchers with customers or respondents
where the majority of customers feel satisfied while in the outlet. Besides
that, the aim is to distribute a value proposition, which can provide a
different atmosphere from other coffee outlets. So as to generate customer
satisfaction and form a value proposition, namely the Starbucks experience that
can be felt by every customer
d)
Customer Relationship in Starbucks District 33 Medan
According to the three
PICs of Starbucks Hermes, Focal Point and Manhattan outlets, as many as 60% of
customers at these outlets use Starbucks cards. Automatically by having a
Starbucks card account, the company can provide periodic emails and
notifications to customers. Starbucks also always tries to give its best by
providing warranty services. If the order is not as expected, both in terms of
product, service and facilities, Starbucks will replace the product or give a
free voucher. In order to create good customer and company relationships,
Starbucks has social media accounts and blogs for the Starbucks coffee customer
community to share experiences and ideas. Then partners (the term for baristas
who work at Starbucks) must be able to create effective communication with
customers and with other partners, so that every customer who comes to
Starbucks can feel the atmosphere of a third home, which is called the third
place. after their own homes and offices, and the above will form a value
proposition where the third destination belongs to Starbucks.
Based on this identification, the researchers
formulated an analysis related to the Starbucks Management strategy for the
Implementation of Social Media Marketing Efforts, increasing Brand Equity which
has an impact on increasing customer response. The theory used to provide
strategic suggestions that can be implemented by Starbucks Indonesia
Management, especially in district 33 Medan (Hermes, Focal Point and Manhattan)
is the theory of Aaker (2014) which includes: increased brand awareness, improved reputation,
increased relationship, brand development, and
increase purchase intention.
CONCLUSION
Based on testing the first hypothesis of the study, it was
found that the Social Media Marketing Efforts variable had a positive and
significant influence on the Customer Response variable. These results are also
supported by findings indicating that there is an increase in the number of
visits when Social Media Marketing Efforts are carried out at promotional
activities, especially at Manhattan outlets and the implementation of Social
Media Marketing Efforts is carried out according to the promotion and product introduction
schedule set by management, besides that it is also adjusted to other
promotional schedules such as promotions from Telkomsel
providers.
Based on testing the second hypothesis, the results show
that the Social Media Marketing Efforts variable has a positive and significant
effect on the Brand Equity variable, where these results are also supported by
findings indicating that many respondents post purchasing activities and other
activities at Starbucks outlets. Where this shows the pride of respondents
towards Starbucks products and brands, the content displayed on Starbucks
Indonesia Official social media is also related to product introduction,
service systems and the atmosphere at each outlet which gets a positive
response from followers and Starbucks Indonesia Official social media display
which giving an exclusive and premium impression gives the same impression to
every customer or respondent.
Based on the third hypothesis testing, the results show
that the brand equity variable has a positive and significant influence on
customer response. These results are supported by findings showing that the
majority of customers decide to buy Starbucks products because they are very
confident in their quality, the majority of customers are satisfied with the
quality of service provided by partners or baristas at Starbucks Hermes, Focal
Point and Manhattan outlets, and there are around 30-35% customers who visit
Hermes and Focal Point outlets are regular customers.
Based on the fourth hypothesis testing, the results show
that the Social Media Marketing Efforts variable can affect the Customer
Response variable through the Brand Equity variable in a positive and
significant way. Based on the identification of Starbucks Management in
District 33 Medan (Hermes Store, Manhattan and Focal Point) it was found that
the Value Proportion, Customer Segment, Channels, and Customer Relationships
were still quite good and in accordance with the provisions set by the
Management of Starbucks Indonesia. The analysis and evaluation of the strategy
implemented using a series of analyzes, namely: increased brand awareness, improved reputation,
increased relationship, brand development, and
increase purchase intention.
Aaker, D. (2014). Aaker on branding: 20 principles that
drive success. Morgan James Publishing. Google Scholar
Bruhn, M., Schoenmueller, V., & Schäfer, D. B. (2012).
Are social media replacing traditional media in terms of brand equity creation?
Management Research Review. Google Scholar
Buckarma, E. H., Thiels, C. A., Gas, B. L., Cabrera, D.,
Bingener-Casey, J., & Farley, D. R. (2017). Influence of social media on
the dissemination of a traditional surgical research article. Journal of
Surgical Education, 74(1), 79–83. Elsevier
Creswell, J. W., & Poth, C. N. (2016). Qualitative
inquiry and research design: Choosing among five approaches. Sage
publications. Google Scholar
Gallaugher, J., & Ransbotham, S. (2010). Social media and
customer dialog management at Starbucks. MIS Quarterly Executive, 9(4).
Google Scholar
Ghazali, I., & Latan, H. (2015). Partial Least Squares;
Konsep, Tekhnik dan Aplikasi Menggunakan Program Smart PLS 3.0. Semarang:
Badan Penerbit Undip. Google Scholar
Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., Aiello,
G., Donvito, R., & Singh, R. (2016). Social media marketing efforts of
luxury brands: Influence on brand equity and consumer behavior. Journal of
Business Research, 69(12), 5833–5841. Elsevier
Jain, V. K., & Kumar, S. (2017). Towards prediction of
election outcomes using social media. International Journal of Intelligent
Systems and Applications, 9(12), 20. Google Scholar
Kapferer, J. N. (2009). Kapferer’s Brand-Identity Prism
Model. European Institute for Brand Management, 24, 2014. Google Scholar
Kaplan, A. M., & Haenlein, M. (2010). Users of the world,
unite! The challenges and opportunities of Social Media. Business Horizons,
53(1), 59–68. Elsevier
Kaye, B. K. (2007). Blog use motivations: An exploratory
study. Blogging, Citizenship, and the Future of Media, 127–148. Google Scholar
Kim, A. J., & Ko, E. (2012). Do social media marketing
activities enhance customer equity? An empirical study of luxury fashion brand.
Journal of Business Research, 65(10), 1480–1486. Google Scholar
Malhotra, N. K. (2010). Riset Pemasaran (Marketing
Research)(Edisi 4 Jilid 1). New Jersey, Indonesia: PT. Indeks. Google Scholar
Muntinga, D. G., Moorman, M., & Smit, E. G. (2011).
Introducing COBRAs: Exploring motivations for brand-related social media use. International
Journal of Advertising, 30(1), 13–46. Google Scholar
Nurmanisa, A., Wilopo, W., & Sanawiri, B. (2016). Analisis
Customer Segment, Channels, Dan Customer Relationship Dalam Pembentukan Value
Proposition Di Starbucks Coffee (Studi Kasus Pada Starbucks Coffee Indonesia).
Brawijaya University. Google Scholar
Park, N., Kee, K. F., & Valenzuela, S. (2009). Being
immersed in social networking environment: Facebook groups, uses and
gratifications, and social outcomes. Cyberpsychology & Behavior, 12(6),
729–733. Google Scholar
Seo, E.-J., & Park, J.-W. (2018). A study on the effects
of social media marketing activities on brand equity and customer response in
the airline industry. Journal of Air Transport Management, 66,
36–41. Elsevier
Sugiyono. (2013). Metode Penelitian Pendidikan Pendekatan
Kuantitatif, Kualitatif, dan R&D. Alfabeta. Google Scholar
Sugiyono. (2018). Metode Penelitian Kuantitatif,
Kualitatif, dan R&D. Alfabeta. Google Scholar
Truong, Y., McColl, R., & Kitchen, P. J. (2010).
Uncovering the relationships between aspirations and luxury brand preference. Journal
of Product & Brand Management. Google Scholar
© 2022 by the authors. Submitted for possible
open access publication under the terms and conditions of the Creative Commons
Attribution (CC BY SA) license (https://creativecommons.org/licenses/by-sa/4.0/).