Jurnal Manajemen Pemasaran, Vol. 14, No. 2, Oktober 2020, 61─66 doi: 10.9744/pemasaran.14.2.

61─66
p-ISSN 1907-235X / e-ISSN 2597-615X

PURCHASE INTENTION OF FASHION PRODUCT AS AN IMPACT OF

DIGITAL MARKETING, MEDIATED BY CUSTOMER ENGAGEMENT IN
THE GENERATION Z

Thomas Stefanus Kaihatu

Universitas Ciputra Surabaya
Citraland CBD Boulevard, Surabaya 60219
Email: [email protected]

Abstract: This research is to study the impact of digital marketing on consumer engagement and purchase intention, consumer
engagement on purchase intention, and the mediating effect of consumer engagement in the relation between digital marketing
and purchase intention. The population in this research was generation Z. Samples were 236 students in two private universities
in Surabaya. Data were analyzed with Andrew Hayes PROCESS model 4. The results show that all hypotheses were
supported. The findings of this research contribute to the online communication strategy of online shop owners to reach
generation Z.

Keywords: Generation Z; digital marketing; customer engagement; purchase intention.

Abstrak: Tujuan penelitian ini adalah untuk menguji pengaruh digital marketing terhadap consumer engagement dan
purchase intention, consumer engagement terhadap purchase intention, serta efek mediasinya dalam hubungan antara digital
marketing dan purchase intention. Populasi dalam penelitian ini adalah generasi Z. Sample berjumlah 236 diperoleh dari
mahasiswa dua universitas swasta di Surabaya. Data dianalisis dengan Andrew Hayes PROCESS model 4. Hasil analisis
menunjukkan semua hypothesis diterima. Temuan penelitian ini berkontribusi terhadap strategi komunikasi pemilik online
shop terutama untuk sasaran generasi Z.

Kata kunci: Generasi Z; digital marketing; customer engagement; purchase intention

INTRODUCTION In 2018, internet users bought 57% fashion related

products online. Thus, the competition is tight for an
Generation Z is born between 1995 and 2009 online shop, especially in the fashion business which
(Goh & Lee, 2018). The oldest of this generation are contributes 1.3 trillion dollars and employs more than
now in their 20s and started to enter the workforce and 300 million people globally (Gazzola et al., 2020). The
decide what they are going to spend with their income fashion industry itself is characterized by a trend that
(Dimock, 2019; Williams, 2015). With the figure of 22 moves rapidly. Consumers are very prone to the
percent workforce, generation Z shaped 40 percent of changing trend. Consumer even has the behavior of
consumers globally (Thangavel et al., 2019). Even “see now buy now”. Thus, the online shop owner has
when the traditional brick-and-mortar way of shopping to compete in a saturated market. To survive, they have
still exists among them, they are the generation of to draw the target customer to purchase their product
internet savvy (Kim, 2019; Thangavel et al., 2019). (Gazzola et al., 2020; Priporas et al., 2017).
They are the generation that has access to digital Online purchase intention is about the initial
communication technology since their childhood. This intention to buy (Schlosser et al., 2006). It is shaped by
access exposes this generation to digital marketing on trust (Schlosser et al., 2006), good perception of
a scale never experiences by the previous generation content (Paakkari, 2016), valence (Roy et al., 2019),
(Bassiouni & Hackley, 2014). Thus, they are known as price and quality (Ariker & Toksoy, 2017), and online
‘Digital Natives” (Singh, 2014). They use technology social networking (Toor et al., 2017). Consumer enga-
heavily as an instrument (Priporas et al., 2017). Thus, gement also develop purchase intention (Toor et al.,
the option to shop online is natural to them. 2017). Moreover, digital marketing is enhancing con-
The trend of online shopping is blooming across sumer engagement through online social networking
the globe (Jackson & Ahuja, 2016; Vieira et al., 2019). (Hollebeek & Macky, 2019; Toor et al., 2017).
The consequences for the online shop or brand owner This research is conducted in Indonesia, where
are the broadening market that challenges them to be the generation Z build 29.23 percent of the total
more attractive to the buyers. The appeal itself does not population, higher than generation X that build 25.34
only depend on the decoration of their façade but to percent. (Deloitte, 2019) Furthermore, Indonesia is an
make sure that the target market knows that they exist. emerging market, which characterized as the fastest in

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social media usage and online advertisement (Vieira et are variations within the group (Okros, 2020). Thus
al., 2019). In Indonesia, internet users predicted to this research is conducted to the individual level within
reach 140 million in 2020 and e-commerce plays an generation Z.
important role in the future economy (Deloitte
Indonesia, 2019). Previous research in Indonesia Digital Marketing
shows that generation Z uses either social media dan
online platform while shopping (Mulyani et al., 2019). Digital marketing channels refer to internet
Thus, it’s important to include either brand owned and systems that have the ability to simultaneously create,
market initiated (Vieira et al., 2019), digital marketing promote, and deliver value from producers to consu-
for online shop owners while conducting business in mers through digital networks (Key, 2017).
Indonesia. Digital marketing aim is about to reach, grow,
The theoretical gap in this research is to use the and retain consumer through the internet channel (Key,
measurement developed by Jacuński (2018) and to test 2017). It’s purposed to communicate, to withdraw
the variable in its relation with engagement and attention to a product not through traditional adver-
purchase intention. Moreover, even the previous tising (television, magazine, etc.), but online media
research has studied antecedents of online shopping, (Jackson & Ahuja, 2016). The benefit of digital
none of them use digital marketing with PESO (paid, marketing for the firm is for the cost-effective (Ištvanić
earned, shared, owned) dimension (Bartholomew, et al., 2017), broader customer reach and inexpensive
2013). The uniqueness of PESO is it combines either statistical marketing research (Jackson & Ahuja,
brand owner and market initiated advertisement 2016). The online media for marketing is known as
(Vieira et al., 2019). From the measurements, the focus firm initiated and market initiated. Firm initiated is
of PESO is more about the strategy to reach the through paid advertisement, own website/account, and
consumers (Jacuński, 2018). digital inbound. Market initiated is through “likes”
The empirical gap is to test the model to gained for the content, shares, comments, and organic
Indonesian Generation Z, which started to be the search (Vieira et al., 2019). Thus, the development of
consumer generation with their own decision to spend indicators of digital marketing resulting in the dimen-
their income. The implication of this study is sion of PESO (paid, earned, shared, owned) (Bartholo-
contributing to the digital marketing strategy for online mew, 2013; Jacuński, 2018). Digital marketing is the
fashion shop owners. The result might help to develop antecedents of consumer engagement (Jackson &
strategy particularly to reach generation Z in the Ahuja, 2016).
Indonesian market.
Consumer Engagement
THEORETICAL GROUND
Brand engagement is a level of cognitive, emo-
Generation Z tional, and or behavioral interaction with a brand.
Engagement is a proactive activity from the customer’s
As an online consumer, generation Z is interested side (Hollebeek, 2011). It’s a psychological state as a
in innovation. They expect a wide availability of result of the interaction, and it’s iterative (Brodie et al.,
devices and processes that will make the shopping 2011).
experience faster and autonomous. Information is The antecedent of consumer engagement is con-
important for them (Priporas et al., 2017). They are sumer involvement (Harrigan et al., 2018), and digital
quick in making educated online shopping decisions marketing (Hollebeek & Macky, 2019; Jackson &
(Lauring & Steenburg, 2019). Different from previous Ahuja, 2016). Furthermore, consumer engagement
generations, generation Z is known as a non- might influence evaluation, trust, loyalty, co-creation,
impulsive-buyers (Thomas et al., 2018). While doing word of mouth, and usage intention (Harrigan et al.,
online shopping, generation Z is looking for the best 2018). Thus, it can be hypothesized that,
deal, visibility of the product, and reviews. Moreover, Hypothesis 1. Digital marketing has a positive signi-
they are less brand loyal than in previous generations ficant effect on consumer engagement.
(Eom & Seock, 2017; Thangavel et al., 2019).
Previous research shows the distinct charac- Online Purchase Intention
teristics of generation Z different from other genera-
tions. Meanwhile, research-based on generational Online purchase intention is consumer intentions
theory or cohort analysis has to consider also that there to make an initial online purchase (Schlosser et al.,
 Kaihatu: Purchase Intention of Fashion Product as an Impact of Digital Marketing 63

2006). Orientation to shop online is for economic

quality, convenience (Ariker & Toksoy, 2017; Consumer
Thangavel et al., 2019), deal-hunting (Thangavel et Engagement
al., 2019), and emotion (Thomas & Mathew, 2018).
Trust (Schlosser et al., 2006; Thomas et al., 2018), as
the result of product presentation and interactivity also
has a positive effect on the intention (Thomas et al.,
Digital Purchase
2018). From the perspective of digital marketing, the Marketing Intention
purchase is also influenced by good content deter-
mined by photos, promotion, competition, and featured
celebrities in social media (Paakkari, 2016), social
Figure 1. Research Model - Model 4 Andrew Hayes
networking through social media (Toor et al., 2017), e- PROCESS (Hayes, 2013)
WOM content and valence (Roy et al., 2019). Further-
more, consumer engagement also develops usage FINDING
(Harrigan et al., 2018), and purchase intention (Toor et
al., 2017). Thus, it can be hypothesized that, The assumption test following Hayes (2018) for
Hypothesis 2. Consumer engagement has a positive PROCESS analysis is normality, linearity, and homo-
significant effect on online purchase intention. scedasticity (Hair Jr et al., 2014). The result shows
Hypothesis 3. Digital marketing has a positive normality in the data distribution as presented in the
significant effect on online purchase intention. skewness and kurtosis in Appendix 1. The linearity test
shows all the relations are linear. Heteroskedasticity
Hypothesis 4. Consumer engagement significantly
show p > 0,05. All the result shows that there is no
mediating the relation between digital marketing
violation of assumption, thus further test of Andrew
on online purchase intention.
Hayes PROCESS Model 4 (Hayes, 2013, 2018) test is
allowed to be conducted.
METHODS
Table 1 shows the result of Andrew Hayes
The digital marketing measurements were PROCESS Model 4. Coefficient regression for the
adopted from Jacuński (2018), which elaborate on the relation between digital marketing and consumer
initial PESO (paid, earned, shared, owned) dimensions engagement is 0.8971, p < 0.001, thus Hypothesis 1 is
developed by Bartholomew (2013). Consumer supported.
engagement measurements were from Harrigan et al. Table 2 shows that the coefficient regression of
(2018). Purchase intention measurements were from the relationship between consumer engagement and
Schlosser et al. (2006). The original measurements are online purchase intention is 0.3895, p < 0.01. Thus
in English. To adopt in Bahasa Indonesia, focus group hypothesis 2 is supported. Furthermore, the coefficient
regression of the relation between digital marketing
discussion was conducted with experts and students to
and online purchase intention is 0.3069, p < 0.05. Thus
choose the terminology commonly used among
hypothesis 3 is supported. R2 for the model is 45%, F
generation Z. Furthermore, EFA was conducted for
= 107.3302, p < 0.01.
measurement reduction to 30 respondents of students
To test the mediation effect of consumer
who have experienced online shopping. The result
engagement, Hayes (2018) suggests not to use Sobel.
shows all the loadings were above 0.7. Thus, all
The result of the analysis with the PROCESS shows
measurements can be used for further analysis. that the indirect effect coefficient is 0.3494. The
The population in this research is generation Z. positive significance of the effect is shown in the boot
The samples were taken from the students of two LLCI and boot ULCI which are on the positive side of
private universities in Surabaya. The sampling techni- zero.
que is purposive sampling, which is university students
born between 1995 – 2010 as the generation Z cohort DISCUSSION
(Goh & Lee, 2018). Furthermore, respondents must
have experience in doing fashion product shopping This research found that digital marketing toward
online. The data collection was in February 2020. The generation Z has a positive impact on consumer
analysis technique was Andrew Hayes PROCESS engagement. This finding supports previous research
model 4 (Hayes, 2013, 2015, 2018). that involvement (Harrigan et al., 2018) through digital
64 JURNAL MANAJEMEN PEMASARAN, VOL. 14, NO. 2, OKTOBER 2020: 61─66

Table 1. Consumer Engagement as Outcome Variable

Coefficient SE t P LLCI ULCI
Constant 0.5613 0.0942 5.9593 0.0000 0.3758 0.7467
Digital Marketing 0.8971 0.0195 45.9730 0.0000 0.8587 0.9355
R = 0.9434
R2 = 0.8901
F = 3113.5209 (1,261), p = 0.0000

Table 2. Online Purchase Intention as Outcome Variable

Coefficient SE t P LLCI ULCI
Constant 1.6077 0.2344 6.8580 0.0000 1.1461 2.0693
Digital Marketing 0.3069 0.1374 2.2327 0.0264 0.0362 0.5775
Consumer engagement 0.3895 0.1445 2.6943 0.0075 0.1048 0.6741
R = 0.6725
R2 = 0.4522
F = 107.3302 (2,260), p = 0.0000

Table 3. The Total Effect, Direct Effect X → Y, Indirect Effect X → M → Y

Coefficient SE t P LLCI ULCI
Total effect 0.6562 0.0461 14.2318 0.0000 0.5654 0.7470
Direct effect X → Y 0.3069 0.1374 2.2327 0.0264 0.0362 0.5775
Indirect effect X → M → Y 0.3494 - - - 0.1064 0.6291
(Boot (Boot
LLCI) ULCI)

marketing (Hollebeek & Macky, 2019; Jackson & This research also supports previous research on
Ahuja, 2016) influence consumer engagement. The the influence of engagement on purchase intention
engagement is developed by frequently seeing the (Harrigan et al., 2018; Toor et al., 2017). The more
content, understand clearly the message, impressed, generation Z understands, have a positive feeling, and
and found that other people also “like” the content. willing to spend time to know more about the product,
Moreover, to follow the owned account also develop the more they are willing to buy now, if possible, and
engagement by seeing the content posted and inter- if probable. Consumer engagement also proved to be
acting with other followers and the owner of the the mediator of the relationship between digital
account. Thus, this proves that the owned and the paid marketing and purchase intention (Toor et al., 2017).
dimension of digital marketing influences engage- Thus while generation Z reached and experiencing the
ment. Furthermore, from the side of market initiated product through digital marketing, the more they have
knowledge, emotion, and engagement to the product.
digital marketing, this research found that the more the
Moreover, the engagement develops the intention to
content shared gain “likes”, comments from fans, and
purchase, either now or later.
responded by the brand owner, the more engagement
is developed. The role of influencer is also significant, IMPLICATION
showing that the more the influencer present impres-
sive and informative content, the more engagement is This research is about reaching generation Z.
developed. The engagement expected is shown to be Thus, to make them know that the brand or product
either in cognitive by understanding clearly about the exists, the owner has to make sure that “Paid Earned
brand, positive feeling toward the brand, and to give Shared Owned” (Bartholomew, 2013; Jacuński, 2018)
time in order to understand more about the brand. is conducted simultaneously. Just to post content or
This research also found that digital marketing many followers in the owned account is not enough.
toward generation Z influences purchase intention. Online shop owners have to make sure that the content
This confirms previous research (Paakkari, 2016; Roy has the reach and impress the target market generation
et al., 2019; Toor et al., 2017). The more consumers Z. Furthermore, online shop owners also have to make
respond to PESO (Bartholomew, 2013; Jacuński, sure to participate in the interaction with the potential
2018) dimensions of digital marketing, the more they consumers, to build engagement. The behavior
are intended to purchase now, if possible, and if expected for generation Z is to purchase the product. It
probable. is suggested that the strategy does not only depend on
 Kaihatu: Purchase Intention of Fashion Product as an Impact of Digital Marketing 65

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