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ISSN: 2338-8412 e-ISSN : 2716-4411

Ekombis Review – Jurnal Ilmiah Ekonomi dan Bisnis


Available online at : https://jurnal.unived.ac.id/index.php/er/index
DOI: https://doi.org/10.37676/ekombis.v12i2

Factors Influencing Purchase Intention with Brand


Awareness as a Mediator on Local Fashion Brand
Products

Dewi Ratnasari1); Erilia Kesumahati2)


1,2)Study Program of Management Faculty Of Business and Management, Batam International University,
Indonesia
Email: 1) [email protected] ; 2) [email protected]

How to Cite :
Ratnasari, D., Kesumahati, E., (2024). Factors Influencing Purchase Intention with Brand Awareness
as a Mediator on Local Fashion Brand Products. EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi
Dan Bisnis, 12(2). doi: https://doi.org/10.37676/ekombis.v12i2

ARTICLE HISTORY ABSTRACT


Received [15 December 2023]
This research aims to know which factors are more affective to
Revised [25 March 2024]
increasing and attracting consumer purchase intentions in local
Accepted [26 April 2024]
fashion brands. This research used quantitative method by
distributing questionnaires which obtains as many as 475
respondents with a population of people who have purchased or
KEYWORDS
used local fashion products in Indonesia. The data analysis method
Purchasse Intention; Social Media
uses PLS-SEM through SmartPLS 3.0. The results of the study show
Marketing; Brand Awaraness; Local
that several factors have a significant effect on purchase intention
Fashion Brand
such as product quality and brand awareness. Meanwhile brand
awareness mediates the relationship between purchase intention
and social media marketing and addition brand awareness also
This is an open access article under mediates the relationship between purchase intention and celebrity
the CC–BY-SA license endorser. This study show that local fashion brand business must pay
more attention to product quality factors and build awareness of their
business brand. Creating high brand awareness in the community will
be very influential for businesses to be able to know that there
business exists.

INTRODUCTION
The world of fashion in the era of technological advances is increasingly widespread through
various digital platforms, one of which is social media. The existence of technological
developments makes it easier for people to shop which can be done online on social media or
other platforms (Rahmawati, 2022). In addition, in this digital era, it also creates many
opportunities for people to start selling in a faster and more effective way in reaching consumers
by marketing online. Since technology has developed, many foreign fashion brands have entered
Indonesia which has resulted in competition, which is not only competing with other local fashion
brands but also with foreign fashion brands (Sherly et al., 2020). Over time, more and more foreign
fashion brands are entering Indonesia, making the competition even tougher, and local fashion
brand companies are experiencing problems in competing and having difficulties in maintaining

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the continuity of their business. This is a challenge for local fashion companies to maintain their
business. However, the fashion industry in Indonesia can also compete with each other by
improving product quality, because most consumers will buy a product that always prioritizes
quality and to generate high consumer purchase intentions, companies must be able to provide
promising product quality (Nabila & Negoro, 2020).
In running a business along with the times and technology, business people need to upgrade
their marketing strategy to be able to reach a wider market, namely social media marketing, where
social media marketing is an activity or action that can encourage businesses to introduce their
products through visuals with a wide reach. wider market and to increase awareness or
recognition of a brand, product, or business. Brands that are well-known to the public can
generate high trust and a sense of security for the product or brand. The success of a business in
creating brand awareness is inseparable from the existence of social media marketing which has
the aim of introducing excellence and offering products to consumers (Upadana & Komang, 2020).
Current technological sophistication, the traditional strategy known as word of mouth has
developed into a more modern strategy, namely the influence of word of mouth electronically,
online, or E-WOM. E-WOM is also an important factor in attracting consumer buying interest.
Where consumers who want to purchase products on social media online will first look for
information related to the product to be purchased through reviews, comments, or feedback from
other consumers who have already made purchases of these products (Yusniawati & Prasetyo,
2022).
Then it can also be through endorsements in attracting and increasing consumer buying
interest, with products used by a celebrity who has good appeal and promotional abilities can be
a driving force in aspects of promotion or advertising for businesses as well as with a large number
of followers making this celebrity endorser one of the important factors in increasing brand
recognition to the general public which will ultimately lead to increased consumer purchase
intentions for the products used (Watung et al., 2022). The formulation of the problem related to
this study is whether social media marketing, celebrity endorser, E-WOM, price, and product
quality affect consumer purchase intentions mediated by brand awareness of local fashion brand
products to be able to help local fashion brands in knowing the elements or which factors are
more effective in increasing and attracting consumer purchase intentions with a wider range.
Based on the formulation of the problems listed, the hypothesis is set as follows:

H1: Social Media Marketing has a significant positive effect on Purchase Intention.
H2: Celebrity endorsers have a significant positive effect on Purchase Intention.
H3: E-WOM has a significant positive effect on Purchase Intention.
H4: Price has a significant positive effect on Purchase Intention.
H5: Product Quality has a significant positive effect on Purchase Intention
H6: Brand Awareness has a significant positive effect on Purchase Intention.
H7: Social Media Marketing has a significant positive effect on Purchase Intention through Brand
Awareness.
H8: Celebrity endorsers have a significant positive effect on Purchase Intention through Brand
Awareness.
H9: E-WOM has a significant positive effect on Purchase Intention through Brand Awareness

LITERATURE REVIEW
Social Media Marketing
Social Media Marketing is a type of marketing that is carried out online on social media
used as a means to promote products or services widely, social media advertising is a form of
digital network and web advertising that has become a way of successful marketing
communication. It's the latest and most popular form of social media marketing, from connections

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to websites to pay-per-click ads, the internet now has everything (Ihzaturrahma, Nahda and
Kusumawati, 2021). Kurnia, Steven and Susanto, Yosef Budi and Juliadi (2022). Marketing includes
selling and advertising products to the public. Digital marketing is also known as an activity that
promotes products or services made by digital media, such as social media, email, website, etc.

Celebrity Endorse
Celebrities are people who are known in a large and wide range of groups through
characteristics, skills, attractiveness, lifestyle in getting high attention from crowds. Celebrity
Endorser is one of the most sought-after tools by entrepreneurs to display advertisements with
images of celebrities and reputations to promote their brand (Irfanoglu, Muge and Reem, 2020).
Setiawan & Rabuani (2019) celebrity endorsers are people who can influence through videos or
photos through messages given or commonly known to the public figures such as artists, sports
athletes, singers and people who have other achievements. According to Illahi, Azizun Kurnia and
Dewanto (2020) social media influencer or known as celebrity endorser is a figure who is able to
communicate or disseminate information effectively to his followers or followers, so it is possible
to indicate the greatest possibility of information – information provided by an influencer can be
trusted and well received by the public compared to the transmission of information carried out
in traditional media.

E-WOM
Electronic word of mouth is one of the most important aspects for business owners, where
what will be delivered by consumers will greatly influence there are other individuals to make
purchases. Electronic word of mouth can be expressed as a statement either positive or negative
submitted by the consumer in actual connection with a product or service of a brand or company
through the Internet (Saputra, I Kadek Ary and I Gusti, 2020). E-WOM is a form of communication
delivering both negative and positive messages that can be found or seen on social media, website
or e-commerce umkm or related enterprise (Yusniawati & Prasetyo, 2022).

Price
Price is the only part of the marketing mix that can generate revenue for a company or
organization. Price can also be described as a quantity or other aspect that is included in the use
from which a product can be obtained Nasution, Siti Lam’ah (2020). Price is an important
component because it is a very sensitive part, both for the seller and the buyer. According to
Menurut Kotler & Keller (2016) price is the value of money spent on a product and service or the
amount of something replaced or exchanged by a customer for the benefit of using a product or
service.

Product Quality
Product quality in an organization or company can attract the interest of consumers and
can be a form of management of good relationships between customers and companies. Products
play an important role in every company, with the presence of new business processes that can
be run by companies. And the creation of products is usually based on the needs and wishes of
customers (Nasution, Siti Lam’ah, 2020). Product quality is also understood as a description of how
a product is evaluated, both from the process and materials of manufacture, the duration of the
product to the benefits of a product for its users (Maurencia, et al, 2021).

Brand Awareness
Brand awareness plays an important role in business, consumers will generally buy a
product or service on a well-known and trusted brand, it can also be a brand that first appears to
be criticized by the public, most likely that's what will be chosen and bought (Sutariningsih & K

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Widagda, 2021). According to Ihzaturrahma, Nahda and Kusumawati (2021) there are two aspects
of brand awareness: brand recall and brand recognition.
Brand awareness is a form of a person's ability to remember or recognize a particular
brand. Brand awareness becomes something that is able to show how big a consumer is in
considering the existence of a brand or brand in the minds of the public (B. Setiawan & Rabuani,
2019). A brand that is known to many people is able to create a sense of security against possible
risks – risks that may occur and harm the consumer. It requires an approach from the company
to potential consumers to be able to build brand awareness by the public so that the brand or
product is more recognizable and remembered than other brands (Upadana & Komang, 2020).

Purchase Intention
Purchase Intention is a feeling or desire seen from how much a person has the will to his
desire to the process of buying (Fitriani, Ni Made and Bianka, 2022). Buying interest is a condition
or behavior of a consumer who has a desire and desire for a product based on the circumstances
when seeing and feeling having desire to the product (Negara, Gumilang Adhi and Indira, 2020) .
Saputra, I Kadek Ary and I Gusti (2020) stated that consumer purchase intention is a phase
in which consumers pass the evaluation related to information obtained and then become the
fruit of the mind by consumers to buy. The development of a person's interest in buying is when
the consumer has several alternative products or services that are subsequent to the choice of
such consumers make a purchase on one of the products chosen according to the value and
benefits based on the needs of the consumers. (Rohman, Isnanda Zainur and Athanasius, 2020).

METHODS
This study used a quantitative approach by distributing questionnaires using the Google
form which obtained as many as 475 respondents with a population of people or people who had
purchased or used local fashion products, including the brands Erigo, MalikabyModelano,
Hoodieku, Genevie, Jiniso, and others. The brands above are local Indonesian products engaged
in clothing or fashion. The sampling technique is used non-probability sampling. According to
Nurrahmah, Arfatin (2021) in non-probability sampling, each element cannot be known whether
it will have the opportunity to become a sample or not, and not all of them have the opportunity
to be selected as a sample. From the Non-probability sampling technique, the method used is
purposive sampling where the sample collection method takes into account several elements that
are adjusted to the desired criteria to determine the number of samples to be analyzed or studied.
This study has 5 independent variables, namely social media marketing, celebrity endorsers, e-
wom, price, and product quality. The mediating variable is brand awareness. While the dependent
variable is purchase intention.
In this study used primary and secondary data. Primary data is data obtained from
respondents through distributing questionnaires using a 5-point Likert scale namely, (1) strongly
disagree, (2) disagree, (3) neutral, (4) agree and (5) strongly agree. The data on the questionnaire
contains the identity of the respondent such as name, gender, domicile, and questions related to
each variable. The questionnaire in this study was distributed directly to all people who had
purchased local fashion. Apart from using primary data, this study also uses secondary data as a
source of literature such as journals, articles to books. The data analysis method is used Smart
PLS-SEM. Where indicator data based on variables will be tested and analyzed to be able to display
a picture of the relationship between variables. The purpose of using the Smart PLS-SEM
application is to test the results of the model description in this study, namely the influence of
social media marketing, celebrity endorsers, EWOM, price, and product quality on purchase
intention that mediated by brand awareness.

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RESULTS
Outer Loading Testing
An indicator of the construct variable is declared valid or not, namely based on the value of
the outer loadings. If the outer loadings value is greater than 0.4 then the indicator is declared
valid. The results on convergent validity show the outer loadings value of each indicator in a study
with a value greater than 0.4, so all of these indicators are valid (Siagian & Khair, 2018).
Reliability trials are processed by looking at the reliability of contracts or latent variables,
then the reliable data can be checked on the results of composite reliability values. Composite
reliability must be higher than 0.70 (in exploratory research, 0.60 to 0.70 is considered acceptable)
( et al Hair, 2019). The results of the reliability data test are shown in Table 4.8 and the results of
this data test obtain a composite reliability value above 0.6 so that it can be declared reliable.

Table 2. Outer Loadings Value


Variables Outer Conclusio
Loadings n
BA1 0.607 Valid
BA2 0.816 Valid
BA3 0.807 Valid
CE1 0.811 Valid
CE2 0.721 Valid
CE5 0.697 Valid
EWOM2 0.930 Valid
EWOM3 0.416 Valid
PI1 0.717 Valid
PI2 0.695 Valid
PI3 0.780 Valid
PQ1 0.766 Valid
PQ2 0.649 Valid
PQ4 0.815 Valid
P1 0.760 Valid
P2 0.707 Valid
P4 0.729 Valid
SMM2 0.840 Valid
SMM5 0.760 Valid
Source: Data Processed, 2023.

R- Square Test
The results of testing the hypothesis in this study show that the R Square value on the
dependent variable purchase intention is 54.2% which can be concluded that the variables social
media marketing, celebrity endorser, EWOM, price, product quality, and brand awareness can
explain the dependent variable purchase intention of 54. 2% and 45.8% stated that there were
variables or other factors outside of this study that could affect the dependent variable which
brand image, trust, customer engagement, customer relationship management as found in the
research Herjanto & Adiwijaya (2020), Kaihatu (2020), Dastane (2020). R Square value on the
mediate variable brand awareness is 40% which brand awareness mediates the relationship

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between purchase intention and social media marketing and celebrity endorser and 60% stated
that there were other variables outside of this study that could affect the variables which customer
purchase decision, online purchase decision (Yohanes & Lena, 2021) and (Yusniawati & Prasetyo,
2022).

Table 3. R-Square Test Results


Variables R Square Percentage
Brand Awareness 0.400 0.650
Purchase Intention 0.542 0.671
Source: Data Processed, 2023.

Direct Effect Test


After testing the validity and reliability of data instruments, the data analysis was carried out by
testing the structural model (inner model). Inner model analysis is done by looking at the T-
Statistics and R-Square values in the PLS Algorithm. Direct influence without mediation structural
model tests are performed to see the significance value of the relationship between independent
variable and dependent variable. Variable relationships can be expressed as significant or
acceptable when they have statistical T values above 1.96 (J. Hair et al., 2018)

Table 4. Direct Effect Test Results


Result
Direct Effect T-Statistic
Social Media Marketing -> Purchase Intention 0.933 Not Significant
Celebrity Endorser ->Purchase Intention 1.534 Not Significant
EWOM -> Purchase Intention 0.112 Not Significant
Price -> Purchase Intention 1.663 Not Significant
Product Quality -> Purchase Intention 5.231 Significant
Brand Awareness -> Purchase Intention 5.901 Significant
Source: Data Processed, 2023.

Indirect Effect Test


Indirect model testing is done with indirect influence variables between independent
variables, dependent on mediation. The magnitude of the relationship of independent variables
with dependent variables and the presence of mediated variables can be seen in the results of
specific indirect effects. Variable relationships can be expressed as significant or acceptable when
they have a statistical T value above 1.96 (J. Hair et al., 2018).

Table 5. Indirect Effect Test Results


Result
Indirect Effect T-Statistic
Social Media Marketing -> Brand Awareness -> Purchase 3.387 Significant
Intention
Celebrity Endorser -> Brand Awareness -> Purchase Intention 5.002 Significant
EWOM ->Brand Awareness -> Purchase Intention 1.766 Not Significant
Source: Data Processed, 2023.

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DISCUSSION
The Influence Social Media Marketing on Purchase Intention
The results of testing the direct effect of social media marketing variables on purchase intention
obtain a value of 0.933. If the value of the direct effect is less than 1.96 then the variable is declared
irrelevant or not significant. From this research, it shows that the social media marketing variable
on purchase intention is not in line with research results by Mikhael & Marcellia (2022) and Putra
& Aristana (2020). The results of testing hypothesis 1 can be concluded that marketing carried out
by local Indonesian fashion brands on social media is not able to influence or increase consumer
purchase intentions.

The Influence of Celebrity endorsers on Purchase Intention


The results of testing the direct influence of the celebrity endorser variable on purchase intention
obtain a value of 1.534. If the value of the direct effect is less than 1.96 then the variable is declared
irrelevant or not significant. From this research, it shows that the celebrity endorser variable on
purchase intention is not in line with the results of research by Sijoatmodjo & Sotedja (2021)and
Setiawan & Aksari (2020). The results of testing on hypothesis 2 can be concluded that not all
endorsed celebrities can provide feedback by expectation which aims to increase customer buying
interest.

The Influence of E-WOM has on Purchase Intention


The results of testing the direct effect of the EWOM variable on purchase intention obtain a value
of 0.112. If the value of the direct effect is less than 1.96 then the variable is declared irrelevant or
not significant. From this research, it shows that the EWOM variable on purchase intention is not
in line with research by Anisa & Novi, (2022) and Wedayanti & I Gusti (2020). The results of testing
hypothesis 3 can be concluded that the presence of EWOM does not affect interest in buying local
fashion brands in this study.

The Influence of Price on Purchase Intention


The results of testing the direct effect of the price variable on purchase intention obtain a value of
1.663. If the value of the direct effect is less than 1.96 then the variable is declared irrelevant or
not significant. From this research, it shows that the price variable on purchase intention is not in
line with research by Prastiwi et al., (2020) and Kesumahati & Jecki (2022). The results of testing
hypothesis 4 can be concluded that price is not a determinant for consumers to shop for local
fashion products.

The Influence of Product Quality on Purchase Intention


The results of testing the direct effect of the product quality variable on purchase intention obtain
a value of 5.231. If the value of the direct effect is more than 1.96 then the variable is declared
relevant or significant. From this research, it shows that the product quality variable on purchase
intention is research by Johari & Keni (2022), Febrianti & Respati (2020), and Chong et al (2022) The
results of testing hypothesis 5 can be concluded that product quality is one of the interests of
customers in buying local fashion products.

The Influence of Brand Awareness on Purchase Intention


The results of testing the direct effect of the brand awareness variable on purchase intention
obtain a value of 5.901. If the value of the direct effect is more than 1.96 then the variable is
declared relevant or significant. From this research, it shows that the product quality variable on
purchase intention is research by Tsabitah & Anggraeni, (2021), Ahdiany (2021) and Sijoatmodjo &
Sotedja (2021). The results of testing hypothesis 6 can be concluded that brand awareness can

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provide differentiation for each product that can remind the public of the uniqueness or
characteristics created by the brand.

The Influenct of Social Media Marketing on Purchase Intention through Brand Awareness
The results of testing the indirect effect of the brand awareness variable which mediates the
relationship between social media marketing and purchase intention obtain a value of 3.387. If
the value of the indirect effect is more than 1.96 then the variable is declared relevant or
significant. From this research, it shows that the brand awareness variable that mediates the
relationship between social media marketing and purchase intention is research by Sutariningsih
& K Widagda (2021), Herlina et al (2022) and Putra & Aristana (2020). The results of testing on
hypothesis 7 can be concluded that the more known and remembered a local fashion brand is,
the more the product will provide its attractiveness which will lead to consumer buying interest.

The Influence Celebrity endorsers on Purchase Intention through Brand Awareness


The results of testing the indirect effect of the brand awareness variable which mediates the
relationship between celebrity endorsers and purchase intention obtain a value of 5.002. If the
value of the indirect effect is more than 1.96 then the variable is declared relevant or significant.
From this research, it shows that the variable brand awareness mediates the relationship between
celebrity endorsers and purchase intention according to research Setiawan & Aksari (2020),
Banurea & Ni (2020) and Amitay et al (2020). The results of testing hypothesis 8 can be concluded
that products promoted by famous people can increase brand awareness of a brand so that when
customers want to shop for clothes, local fashion brands promoted by these celebrities will be an
alternative for consumers.

The Influence of E-WOM on Purchase Intention through Brand Awareness


The results of testing the indirect effect of the brand awareness variable which mediates the
relationship between EWOM and purchase intention obtain a value of 1.766. If the value of the
indirect effect is less than 1.96 then the variable is declared irrelevant or not significant. From this
research, it shows that the brand awareness variable that mediates the relationship between
EWOM and purchase intention is not in line with research by Ulan et al (2022) and Sumampouw
et al (2022). The results of testing on hypothesis 9 can be concluded that EWOM is obtained from
the results of consumers who have experienced or used a product so brand awareness is not a
benchmark for someone to be able to give good reviews or impressions to be able to increase
someone's buying interest.

The results of the research hypothesis can be seen from the T-Statistics values in the table above
for hypotheses with direct and indirect effects. If the T-Statistics value ≥ 1.96, then the hypothesis
is declared relevant or significant. In this study, 4 hypotheses have a significant effect, one of which
is the direct effect relationship of the independent variable product quality with the dependent
variable purchase intention and brand awareness with purchase intention. Then on the indirect
effect variable, there is a relationship between brand awareness variables mediating the
relationship between social media marketing and purchase intention and brand awareness
variables mediating the relationship between celebrity endorsers and purchase intention. Because
the four hypotheses have a T-Statistics value ≥ 1.96. Likewise for the other 5 hypotheses, because
they have a T-Statistics value below 1.96, the five hypotheses are declared to have no significant
effect.

CONCLUSION
This study aims to find out what influences can be made to increase buying interest which
is mediated through brand awareness of Indonesian local fashion products. Based on the data

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processing results, it shows that there are several significant and insignificant variables. Product
quality and brand awareness have a significant direct effect on customer purchase intentions in
local Indonesian fashion. In addition, social media marketing, E-WOM, celebrity endorser, and
price do not have a significant effect on purchase intention. Meanwhile, for the indirect effect there
are also social media marketing and celebrity endorsers mediated by brand awareness which have
a significant influence on purchase intentions. E-WOM which is mediated by brand awareness
does not have a significant effect on purchase intention.
Therefore, local fashion business owners must pay more attention to product quality
factors and build awareness of their business brand. Creating high brand awareness in the
community will be very influential for businesses to be able to know that there business exists,
that way if someone wants to buy clothes they will remember the brand because brand awareness
has been created in the minds of the public with good product quality which will create repurchase
by customers.

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