The Effect of Social Media on Brand Image and Brand Loyalty in Generation Y

• Published in: The Journal of Asian finance, economics, and business Vol. 8; no. 3; pp. 1339 - 1347
• Main Author: BUDIMAN, Santi
• Format: Journal Article
• Language: Korean
• Published: 한국유통과학회 30.03.2021; Korea Distribution Science Association
• Subjects: Online Advertising; Brand Image; Brand Loyalty; Online Community; E-WOM
• ISSN: 2288-4637; 2288-4645

Indonesia has a population of more than 260 million, of which, by 2020, Generation Y is predicted to account for 70% of the total. With different birth years, Generation Y is the backbone of Indonesia's product purchasing. Generation Y is interested in establishing strong relationships with specific brands on social media. They are also interested in working with companies to design a product. Most Generation Y utilizes more than one electronic device and they are also brand loyal. Therefore, this study seeks to examine the effect of social media (i.e., e-WOM, online community, and online advertising) on brand image and loyalty in Generation Y in Indonesia. The sampling method employed was purposive sampling. A total of 150 respondents in the age range of 23-30 years were involved as the sample. Using multiple regression model in data analysis, this study proved that e-WOM, not only have a positive and significant effect on the brand image, but also on brand loyalty. Furthermore, online community also positively and significantly affects brand image and brand loyalty. Likewise, online advertising has a positive and significant effect on brand image and brand loyalty. This study's findings indicated that all the proposed hypotheses were well accepted.