The Influence of Social Media, Brand Trust, Brand Affect and Value

Consciousness on Brand Loyalty: Online Transportation Cases in

Indonesia

SINGGIH SANTOSO

https://orcid.org/0000-0002-1629-6198

Faculty of Business

Duta Wacana Christian University

Dr. Wahidin Sudirohusodo 5-25, Yogyakarta 55224

INDONESIA

Abstract: Currently, the use of social media in Indonesia as part of social interaction activities in the

community and at the same time as a medium for companies to promote their products is increasing. Likewise,

digital technology has penetrated public transportation activities in the community, with the emergence of

Gojek and Grab as the two leading online transportation brands in Indonesia. The purpose of this study is to

find out whether digital marketing activities can affect the buying behavior of a brand. Specifically, this study

aims to determine the effect of Social Media Marketing on Brand Trust, Brand Affect and Value

Consciousness, and ultimately on Brand Loyalty. The research objects are the two major online transportation

companies, namely Gojek and Grab. Using survey research methods and purposive random sampling

technique, 240 respondents in Yogyakarta city, Indonesia, were given a questionnaire related to their

perceptions of the five constructs above. By using structural equation modeling, measurement tests and

structural tests were carried out. The results show that Social Media Marketing affects the Brand Affect, Brand

Trust and Value Consciousness positively and significantly. While the Brand Affect affects the Brand Trust and

Brand Loyalty positively and significantly. However, the Value Consciousness does not significantly affect the

Brand Loyalty. The results of the study prove that digital marketing activities through social media can have a

significant effect on the formation of consumer trust and finally on brand loyalty. Some of the implications of

the results of this study are discussed further in the discussion.

Key-Words: - Social Media Marketing, Brand Trust, Brand Affect, Value Consiousness, Brand Loyalty, Online

Transportation

Received: July 9, 2022. Revised: January 16, 2023. Accepted: February 8, 2023. Published: February 28, 2023.

1 Introduction

Social media is a platform used for interaction and a

medium for companies to promote their products

continuously. Furthermore, Indonesia has 150

million or 56% social media users, which is a 20%

increase from the previous data (2019 survey).

Approximately 130 million or 48% of the total

population are mobile social media users.

The increase in social media users opens a high

opportunity for the use of digital marketing to

promote products, goods, and services. Furthermore,

the use of this medium along with television, radio,

mobile devices, and the Internet enables brands to

reach a wide range of targeted consumers

simultaneously. The media provides information on

multiple products marketed by a company through

continuous promotion onInstagram. This process is

carried out through advertising activities and

implementing marketing mix strategies such as sales

promotion, and public relations. Instagram is an

example of electronic social media containing

images that enables consumers to discover the

activities of existing companies and brands. It is

used to post and store photos in large numbers,

thereby enabling a promotional nuance, [1].

The massive growth of internet and telephone

users is significantly affecting the overall digital

economy positively. For instance, it has led to the

emergence of e-commerce and other internet-based

businesses. Social media will be the main power of

the digital economy in many Southeast Asia

countries. Furthermore, the Palapa Ring project, a

fast 4G fiber-optic network, will also increase the

number of social media users when completed.

Most social media users in Indonesia use instant

messaging applications, such as WhatsApp,

Telegram, and Line, with a penetration rate of

100%, compared with social media applications at

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92%. Furthermore, 37% of internet users use social

media as a means of livelihood, with an average of

at least 11 accounts on various platforms. This is

quite high compared to the 24% of global users that

utilize it for their individual businesses. According

to data from Euromonitor International there are

approximately 15 million MSME players in the

culinary field, with an average turnover increase of

approximately 80% due to technology. This led to a

significant increase in the total foodservice market

in Indonesia by 9% in 2019 with a value of IDR

844.35 trillion.

There are limited studies on the relationship

between using several tools on electronic social

media and their effect on one's consumption

activities. Apart from being driven by needs and

wants, purchases are also based on the strength of a

brand. In several studies on marketing, they are

analyzed from a consumer’s loyalty, affection and

trust. The gap between the widespread practice of

using electronic social media is the background of

this research.

2 Conceptual Background

This chapter explains the variables needed to build

a model for brands and their relation to social

media marketing.

2.1 Social Media Marketing

The advancement of the Internet has created many

communication platforms, such as Facebook and

Instagram. This has prompted many companies to

change their communication channels to electronic

and reach a more comprehensive number of

consumers simultaneously. Facebook and

Instagram are presently used as part of branding

toolbox due to the continuous increase in the

number of brands that use social media to create an

environment and atmosphere that is close to

consumers due to technological advancement.

Through these platforms, companies share

information and communicate with existing and

prospective consumers to create brand awareness

and ultimately increase their sales, [2].

Although the presence and penetration of

electronic social media is very high, the

involvement of consumers belonging to generation

Y is limited. Therefore, it is imperative to increase

their presence to facilitate the formation of a long-

term bond between them and the brand, [3].

Furthermore, it is also necessary to have a high

level of emotional involvement positively

associated with brand loyalty. This is because a

brand has the ability to provide continuous

satisfaction in the long term, [4]. Based on this

fact, consumers need to be emotionally attached to

a brand. Building long-term relationships with

buyers on social media is the right way to deepen

their satisfaction, [5].

Communication through social media is a source of

digital information created, initiated, circulated,

and consumed by internet users to connect with

certain products, brands, and services, [6].

Marketing managers expect social media to assist

them in managing and communicating with loyal

consumers while influencing their perceptions of

the company's products or brands, [7]. This study

wants to test whether digital marketing activities,

especially company activities through social media

which are currently very popular among consumers

in Indonesia, can affect consumer trust in a brand

and then affect their loyalty to the brand.

2.2 Brand Loyalty

Loyalty is a measure of customer attachment to a

brand, inspiring them to show continuous buying

behavior, [8]. According to research carried out by

[9] brand loyalty is the attitude of consumers to

choose a particular brand based on their previous

shopping experience. In [10], the author reported

that it reflects the possibility of customers

switching to another brand due to changes in price,

quality, quantity, and features. Brand loyalty is a

future repurchase commitment that does not

change in different situations. Therefore, brand

loyalty exists when customers tend to factor in

emotional attachment. In [11], the authors stated

that a good brand experience creates love and

ultimately affects consumers’ loyalty. An

interesting finding is that millennials are generally

not active in activities on social media. In [12], the

authors stated that the brand loyalty construct is

multi-dimensional, with attitudinal and behavioral

attributes. Meanwhile, in [13] the authors stated

that the effect of electronic social media on brand

loyalty is mediated by the act of its associated

community created on certain social media, which

generates trust. In [14], the authors stated that

brand loyalty is a fairly complex construct, where

low-income consumers show loyalty from

perceived differentiation factors related to the

'informational determinant.' Furthermore, it is

associated with the proportion of expenditure from

consumers, perceived risk due to their ability to

buy goods at an economical rate, and the type of

product (hedonic or functional).

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2.3 Brand Trust

In [15], the author defined brand trust as a feeling

of security consumers possess based on their

perception of a product owned by a brand. The

experience of consuming a certain brand with a

good impression leads to trust, which is rooted in

the fields of social psychology theory. Research

carried out by [16] indicated a positive relationship

between the experiences of consuming brands

online with the emergence of brand trust. In [17],

the authors also stated that it is related to the desire

of a brand’s consumers to perform according to its

function. They further assumed that this attribute

develops after consumers evaluate a company's

services in terms of protection and consistency.

Therefore, brands are related to perceptions of

quality, value, satisfaction, and product

differentiation which ultimately create customer

loyalty, [18]. It tends to positively affect brand

loyalty and promotes consumers to trust them and

build long-term relationships. In [19], the authors

reported that a brand is a symbol of quality of

brand performance, which helps to build trust. The

research further stated that it is formed from past

experiences and plays a significant role in the

company customers' relationship with its company.

2.4 Brand Affect

The emotional determinants of consumer decisions

need to be understood individually to maintain

their relationship with brands. Commitment is

associated with positive feelings that tend to

prevent consumers from searching for other brands

in the short term and maintain prolonged bonds,

[20]. In today's rapidly disrupted business

environment, efforts to influence consumer

emotions through brands have been proven in

various studies, [21]. For instance, a brand's

potential is to elicit a positive emotional response

on consumer consumption, thereby making their

consumers happy or influenced. In [22], the

authors also showed that the brand effect exists

when consumers are satisfied with a company's

performance after evaluating the existing

attributes. In [23], the authors stated that brand

affect in the form of feelings from consumers tends

to mediate constructs as sensory and behavioral

elements from consumers towards brand

engagement. This promotes opinions on the

importance of brand experience in increasing

consumer engagement through consumer feelings.

In [24], the authors reported that the existence of

service recovery from a company with attractive

promotional activities and a good brand image

impacts the emergence of strong brand trust.

2.5 Value Consciousness

According to [25], the authors stated that value

consciousness is the need to provide goods at low

prices due to some quality constraints, thereby

leading to consumers’ loyalty and purchase

intention. This is similar to the studies carried out

by [26], [27] which stated that this attribute is

strengthened by social media activities in creating

brand loyalty. In marketing, it is seen in 2

viewpoints, namely as the quality of the product

compared to the price for a certain value and the

overall benefit received by consumers, [28].

Furthermore, it enables brands to use social media

platforms to provide low-priced quality goods to

consumers to fulfill their needs because acquiring

goods at lower prices is relatively important to

their purchasing decision. In [29], the authors

further stated that value consciousness directly

provides low prices for products compared with

equivalent good quality. Thier research on

consumer behavior from Generation Z carried out

in Malaysia showed the important role of Value

Consciousness in promoting consumers to have

brand loyalty. Meanwhile, in [30], the authors

stated that consumers with this attribute think

deeply, search for more information, are not

interested in lottery coupons, and are more

accurate in making purchasing decisions. However,

this research stated that value consciousness

actually reduces the relationship between loyalty

and repurchase intention.

In various literature, much has been discussed

about the impact of social media marketing on

consumer satisfaction with a brand. But there are

still few who discuss the effect of these activities

on consumer loyalty, because satisfied consumers

do not necessarily become loyal. also the effect of

varying prices will be discussed in this study, to

see the impact on their loyalty.

Figure 1 is a proposed research model based on the

description above:

Fig. 1: Research Model

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The proposed hypothesis is as follows:

H1 = Social Media Communication affects Brand

Trust

H2 = Social Media Communication affects Value

Consciousness

H3 = Social Media Communication affects Brand

Affect

H4 = Brand Trust affects Brand Loyalty

H5 = Value Consciousness affects Brand Loyalty

H6 = Brand Affect affects Brand Loyalty

H7 = Brand Affect affects Value Consciousness

3 Research Method

This research was carried out from May 2021 to

September 2021 to determine the Grab Food or Go

Food application used in Yogyakarta Special

Region province, Indonesia. Data were collected

by distributing questionnaires to 200 respondents’

purposely selected with their answers uploaded

using Google Form media. The questionnaire

consisted of 2 parts. The first was information on

the respondent's profile, such as gender, age,

monthly expenses, residence, frequency, and

reasons for using Go Food or Grab food.

Meanwhile, the second part contained questions to

determine their perceptions of Social Media

Communication, Value Consciousness, Brand

Trust, Brand Affect, and Brand Loyalty.

Structural Equation Modeling was used as an

analytical tool, with several goodness of-fit-criteria

as shown in Table 1:

Table 1. SEM Testing Criteria

Criteria

Expected

Value

RMSEA

< 0,08

GFI

> 0,9

AGFI

> 0,9

CMIN / df

2 - 5

Source: [31]

4 Research Results

This chapter analyzes several respondent profiles.

4.1 Profile Analysis

Table 2. Gender Composition

Gender

Number

Percentage

Male

100

41,67%

Female

140

58,3%

240

100,00%

Table 3. Age Composition

Age

Number

>18 – 22 years old

14,58%

> 22 - 26 years old

22,08%

> 26 - 30 years old

35,83%

> 30 years old

27,08%

No answer

0,43%

240

100,00%

Table 4. Occupation Composition

Occupation

Number

Entrepreneur

18,75%

Student

24,17%

Civil Servant/Private

Employee

100

41,67%

Others

15,41%

240

100,00%

Table 5. Expenditure Composition (IDR/month)

EXPENDITURE per month

Number

> IDR 1,000,000 to IDR

2,000,000

103

42,91

> IDR 2,000,000 to IDR

3.000.000

26.25

> IDR 3,000,000 to IDR

4,000,000

14,17

More than IDR 4,000,000

16,67

240

100,00%

Table 1 to table 5 shows that the greater part of

GRAB and GOJEK users are female, adults (> 26 -

30 years old), and employees (Civil Servant or

Private Employee) with low to medium

expenditure (> IDR 1,000,000 to IDR 2,000,000

per month or US$ 75 per month – US$ 150 per

month). This shows that GRAB and GOJEK

consumers are employed middle-class adults that

work full time and are not used to cooking to fulfill

their needs. Types of Culinary ordered via GRAB

FOOD or GOFOOD are described in table 6.

Table 6. Types of Food Ordered via GRAB and

GOJEK

Type of Culinary ordered

Number

Beverages (bubble tea,

coffee, ice cream, and

others)

109

24,22%

Snacks (bread/cake, fried

bananas, pizza, and others)

105

23,33%

Main course (fried chicken,

pounded chicken, fried rice,

214

47,56%

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Chinese food, meatballs, and

others)

Others

4,89%

Total response

450

100,00%

The average frequency of ordering food via

GrabFood or GoFood is shown in table 7.

Table 7. Average frequency of ordering food via

GRAB and GOJEK

The average frequency of

ordering culinary

Number

Once a month

22,79%

Twice a month

19,41%

Three times a month

10,55%

More than three times a

month

112

47,25%

Total response

240

100,00%

Users ordered food such as fried and smashed

chicken, fried rice, Chinese food, and meatballs,

which are classified as main course, more than 3

times a month. This means that users are

accustomed to using GRAB and GOJEK in their

daily shopping activities, especially in an effort to

fulfill their primary needs.

4.2 Data Analysis

The research model described in AMOS is shown

in the following figure:

Fig. 2: Research Model in AMOS Display

The goodness of fit model test results is shown in

below:

Table 8. Test Results of Fit Model

Criteria

Value

Description

RMSEA

0,087

good

CMIN / df

2,790

good

CFI

0,838

moderate

Table 8 shows that the model has fulfilled the test

criteria, where CMIN / df and RMSEA are below 5

and 0.1, respectively. Meanwhile, although the CFI

is below 0.9, the number (0.838) is close to 0.9

hence the CFI is moderates. Thereforee, the above

model has fulfilled the goodness of fit criteria and

the test is continued on the hypotheses in the

model, [31].

The estimated number of relationships between

variables is shown in Table 9.

Table 9. Hypothesis Testing Results

Regression

Coefficient

prob

AFFECT

<---

SMC

.344

***

VALUE

<---

SMC

.844

***

TRUST

<---

SMC

.105

.004

TRUST

<---

AFFECT

.433

***

LOYALTY

<---

TRUST

.476

.028

LOYALTY

<---

VALUE

.044

.072

LOYALTY

<---

AFFECT

.333

.011

The effect of each variable based on the prob value

in Table 9 is as follows:

 Social Media Marketing (SMC) significantly

affects Brand Affect (prob. < 0.05)

 Social Media Marketing (SMC) significantly

affects Value Consciousness (prob. < 0.05)

 Brand Affect significantly affects Brand Trust

(prob. < 0.05)

 Brand Trust significantly affects Brand Loyalty

(prob. < 0.05)

 Brand Affect significantly affects Brand

Loyalty (prob. < 0.05)

 Value Consciousness does not significantly

affect Brand Loyalty (prob. > 0.05)

Of all the hypotheses, only H5 is not proven,

therefore, brand promotion through social media

(Facebook, Instagram, Youtube etc.) tends to affect

value consciousness of certain brands, such as

Gojek or Grab, as a delivery media. Furthermore,

cheap, reliable, and effective services promote

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consumers to start using the media to fulfill their

needs. Furthermore, consumers are allowed to

build trust through various experiences with the

brand, thereby providing positive affection.

Finally, brand consciousness, trust, and positive

affection make consumers tend to be loyal to Gojek

or Grab.

Some of the above results are harmonious with the

preliminary research result carried out by [32]

which found that the social media marketing

construct has a positive and significant effect on

brand trust in Bangladesh. Furthermore, in [33],

the authors’ research on a survey conducted on

several well-known brands through social media

platforms, such as Instagram, Twitter, and My

Space in Pakistan, found that brand trust can be

used to predict consumer loyalty. Authors’

research in [34] on the Stimulus Organism

Response (S-O-R) theory found that social media

factors affect consumers' loyalty and desire to

revisit a place. However, consumer activity on

electronic social media on brand trust does not

only have a positive impact on loyalty rather, it

also affects purchase intentions, as stated by

research carried out on skincare consumers in

Indonesia, [35]. In the long term, the experience of

brand trust also affects the occurrence of customer

lifetime value, [36] and brand equity, [2], [37].

In [20], [26], [27], the authors studied the impact

of social media marketing on value consciousness

which directly affects brand loyalty. Meanwhile, in

[38] the authors stated that value consciousness

directly affects consumers' purchase intentions. In

[39], the authors stated that the impact of social

media marketing on value consciousness does not

occur directly; rather, product categories and brand

consciousness mediate it. This research confirms

that the perception of low prices from online

transportation modes tends to strengthen brand

loyalty.

According to [14], the authors stated that brand

loyalty is influenced by social norms and

situational factors. Therefore, with the rising use of

social media, the role of conversation and

experience also help shape consumer love and

loyalty to certain brands, [11]. In [40], the authors

concluded that brand trust can affect consumer

loyalty through advertising constructs.

Furthermore, [41], [18], the authors stated that

brand trust positively affects consumer loyalty.

Conversely, [42] the authors reported that brand

loyalty is not influenced by trust and equity.

Consumer loyalty to current products is heavily

influenced by e-Word Of Mouth generated in

conversations on social media, especially among

generation Y, [4]. This is because they are very

familiar with social media and easily convinced by

the reputation of well-known brands, which affects

their purchase intention and loyalty, [43].

This research has several implications, such as the

effectiveness of social media is to influence

consumer attitudes. Using various networks, such

as Instagram, Facebook, WhasApp, Youtube and

Tiktok, as alternatives, means consumers get

information, [19], [44]. Many people also depend

on other people's information and matters related to

Information Technology, including Gojek and

Grab, an online transportation company, [45].

Furthermore, Gojek and Grab have superior

performance and have proven to be very helpful in

the pandemic, hence trust is built, which in turn

creates consumer loyalty to the brand, [18], [4],

[33]. The awareness created by this company is

relatively cheap, orders are delivered relatively

quickly, and the quality of orders does not change

during the trip, which makes consumers loyal, [42],

[41], [46]. However, brands are also aware that low

price does not guarantee consumer loyalty because

once cheaper competitors appear, consumers are

likely to switch to the new brand.

The theory's contribution to this research is Social

Media Communication, which is beneficial when

adopted by the market participants. The rapid

development of information technology is likely to

change the way consumers transact and also affect

the way they think.

5 Conclusions

5.1 Conclusion

Based on the basic profile, most GRAB and

GOJEK users are female, adults (> 26 - 30 years

old), that work as employees (Civil Servant or

Private Employee), with low to medium expenses

(> IDR 1,000,000 to IDR 2,000,000 per month).

Meanwhile, based on the type of food, the majority

consume heavy foods such as fried and smashed

chicken, fried rice, Chinese food, and meatballs

with an average of 3 times a month.

Based on the AMOS model analysis, Social Media

Communication has a positive and significant

effect on Affect and Value. Meanwhile, Affect has

a positive and significant effect on Trust and

Loyalty, while trust positively and significantly

affects loyalty. Conversely, value does not

significantly affect loyalty, therefore, only H5 of

all hypotheses was not proven.

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Thus, this study proves that digital marketing

activities can more or less affect consumer loyalty

to a brand through activities on electronic social

media and instilling trust in brand performance.

5.2 Suggestion

Online transportation modes are capable of

providing satisfaction to consumers needed during

this pandemic. Therefore, companies are promoted

to enter this field, such as Shopee Online Food has

proven to be brave in trying to enter this industry.

Social media currently plays an important role,

especially in the social distancing era during this

pandemic. The public mostly obtains the flow of

information on online transportation modes and

variations through this media. Therefore, the

company's ability to manage public perception

using various social platforms tends to determine

the success or failure of its reputation in efforts to

provide goods and services.

Consumer loyalty is determined by one's trust and

affection for brand performance. Therefore, it is

necessary to continuously improve their affect and

trust through trusted programs continuously.

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Sources of Funding for Research Presented in a

Scientific Article or Scientific Article Itself

This research funded by Universitas Kristen Duta

Wacana (Duta Wacana Christian University),

Yogyakarta 55224, Indonesia.

WSEAS TRANSACTIONS on BUSINESS and ECONOMICS

DOI: 10.37394/23207.2023.20.52

Singgih Santoso

E-ISSN: 2224-2899

572

Volume 20, 2023

Contribution of Individual Authors to the

Creation of a Scientific Article (Ghostwriting

Policy)

The author contributed in the present research, at all

stages from the formulation of the problem to the

final findings and solution.

Conflict of Interest

The author has no conflict of interest to declare that

is relevant to the content of this article.

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