The Antecedents of Consumer Purchase Intention
Abstract
This study aims to determine and analyse the impact of Corporate Social Responsibility / CSR retailer, brand identification, word of mouth toward consumer purchase intention on minimarket consumer. The data was obtained by distributing questionnaires online to minimarket consumers who know the CSR program and have spent at least 3 times in the last 1 month. The number of samples as many as 156 respondents and the sampling techniques used is purposive sampling, especially judgement sampling. CSR programs carried out by the company are not only a form of social responsibility towards the environment, but also to influence consumer perceptions of the company. The analysis tool used is structural equation model (SEM). The research results showed that the antecedents of consumer purchase intention are CSR retailers, brand identification and word of mouth. There is a positive influence of CSR retailers on consumer purchase intention, brand identification and word of mouth; there is a positive influence of brand identification on consumer purchase intention and word of mouth; and there is a positive influence of word of mouth on consumer purchase intention. For further research is suggested to use other retail companies as research objects.
Keywords: Brand Identification, Csr Retailer, Consumer Purchase Intention, Word Of Mouth
Introduction
Retail growth in Indonesia is around 7%-9% every year. It is estimated that retail growth in Indonesia can reach above 10%. The contribution of retail to Gross Domestic Product (GDP) in Indonesia was 10.41% in 2020 (ekonomi.bisnis.com). One type of retail found in Indonesia is minimarkets. In 2020 the minimarket sector experienced a growth of 12%. It is estimated that every year the number of minimarket outlets will increase by 1000 every year (www.marketeers.com).
Public interest in corporate social responsibility (CSR) has increased widely in recent decades (Bolton & Mattila, 2015). Therefore some companies incorporate CSR into business strategies and use it to convince their consumers (Iglesias et al., 2020). In addition, Iglesias et al. (2020) argue that along with the increasing consumer awareness of the environment in developed countries such as Spain, consumers' purchasing decisions are based on paying attention to the company's CSR programs. Companies that are environmentally and socially responsible tend to be the top choice by consumers Louis et al. (2019) and Stanaland et al. (2011). Along with the increasing consumer awareness of the environment, companies must participate by carrying out CSR activities (Dang et al., 2020). Based on Top of Brand Index 2021, Indomaret is the second popular minimarket in Indonesia (Table 1). The program run by Indomaret minimarket is to provide training for MSME actors, besides that Indomaret also provides assistance for education for underprivileged children (https://indomaret.co.id). Companies that do CSR are companies that are socially and environmentally responsible (Louis et al., 2019). The better the consumer's perception of the implementation of a company's CSR, the higher the consumer's self-identification with companies whose cells affect the intention to buy the company's products and convey positive things or WOM to others (Chaudhuri & Holbrook, 2001; Tuškej et al., 2013). The consumer's intention to make a purchase is greatly influenced by what is said by others who have consumed the product. The more positive the information that consumers have, the higher the consumer's intention to make a purchase (Pecot et al., 2018). According to Dang et al. (2020) consumers have a high desire to buy in companies that do CSR
Literature Review
CSR retailer
Corporate social responsibility (CSR) is a very important business in today's global market. Companies large and small in the world strive to be responsive to stakeholders and transform business models into sustainable companies by maximizing finance, social and environmental (Carvalho et al., 2010). According to Ailawadi et al. (2014) CSR is a social responsibility activity carried out by companies that can influence consumer perceptions of the company. CSR is a company's responsibility in addition to maximizing its profits (Alvarado-Herrera et al., 2017). Based on the European Commission of 2001, CSR is a corporate concept integrating social and environmental issues into a company's business (Öberseder et al., 2011). The more consumers identify themselves as a company, the better the company will be (Luo & Bhattacharya, 2006).
In a study conducted by Park et al. (2014) stated that there is an influence of CSR on trust and corporate reputation. CSR makes companies trusted by consumers, besides that consumer trust is positively related to corporate reputation. The results of research conducted by Louis et al. (2019) stated that CSR affects trust and loyalty.
Consumers who have strong trust will be more loyal to the company. With the existence of CSR marketers experience benefits. CSR can be a shaper of a company's good reputation for consumers (Dang et al., 2020). With this, companies can influence consumer perceptions and consumers will spread information about the company (Pecot et al., 2018). According to Kotler and Keller (2016) consumers' purchasing desires can be influenced by individual situations and feelings. Trust in the company will encourage consumers' desire to buy at the company (Park et al., 2014).
Brand identification
Brand identification is defined as "the self-definition of a consumer is the same as a company or brand" (Lam et al., 2013, p. 235; Yeh et al., 2016). This means that the company has its own identity that is the same as its consumers. According to Lam et al. (2013) brand identification is defined as a feeling, a sense of belonging of the individual to the company. Brand identification is an individual's relationship with a company and represents an individual's perception of corporate identity (Popp & Woratschek, 2017). According to Park et al. (2014) brand identification can build relationships between consumers and companies. According to Yeh et al. (2016) corporate identity is used by corporate managers to distinguish corporate identity from competitors. Consumers who identify themselves like companies are consumers who feel they have a common self-concept with the company (Pérez & Rodríguez del Bosque, 2015). In the research conducted (Chaudhuri & Holbrook, 2001) states that consumers who identify themselves like companies tend to have greater purchase desires. In addition, brand identification can also increase consumer confidence in the company. Because consumers believe that consumers will share information about the company voluntarily.
Word of mouth (WOM)
Word of mouth is a word-of-mouth communication process that aims to convey information or recommendations to individuals or groups (Kotler & Keller, 2016). WOM is defined as the exchange of information between consumers and companies that leads to consumer behavior regarding products and services (Dang et al., 2020). According to Litvin et al. (2008) word of mouth is communication between consumers regarding company products, services and advertisements. According to Yusuf et al. (2018) word of mouth is a positive or negative statement made by consumers about a product or company. WOM is one of the ways of conveying messages that has the most effective effect on consumers (Clara, 2019). In addition, consumers have more confidence in the things said by other consumers. So, it can be said that WOM has an important role in influencing consumer behavior and desires. WOM is more trusted because it can provide reliable information (Reza Jalilvand & Samiei, 2012). When consumers feel satisfied or happy, consumers will share information or recommend it to other consumers (Moore & Lafreniere, 2020).
Consumer purchase intention
Purchase intention is the possibility of an individual to purchase a product. According to Kamalul Ariffin et al. (2018) consumer purchase intention is defined as the consumer's intention to buy a certain product. According to Yeh et al. (2016), purchase intention is the tendency of consumers to buy a product. Meanwhile, according to Chakraborty (2019), purchase intention is the possibility that a consumer will buy a certain product to meet his needs based on the consumer's attitude and perception of the product or company. According to Hsu et al. (2017), Chakraborty (2019), knowing consumer purchase intention is very important because consumer behavior is determined by his desires. In addition, purchase intention can be used to determine consumer behavior. According to Lee et al. (2004) there are several consumer options to buy namely, will buy, want to buy and maybe will buy (figure 1).
Hypothesis development
CSR provides many advantages for companies. The company receives support from consumers and stakeholders due to the company's CSR activities (Singh, 2016). Consumers support companies by purchasing company products (Louis et al., 2019). The relationship between CSR and consumercan be shown by consumer trust in the company. Consumers who feel confident and satisfied are likely to buy products or services from the company (Ailawadi et al., 2014).
H1: There is a positive influence of retailer CSR on Consumer Purchase Intention
A company's CSR activities can also shape consumer attitudes and behaviors (Tofighi & Bodur, 2015). With the CSR carried out by companies, consumers are increasingly aware of the importance of protecting the environment (Hultman & Elg, 2018). This can affect consumers' self-perception of the company. Consumers who identify as a company are more likely to make the company a top choice. In addition, consumers become very interested in companies and support companies because they carry out CSR activities (Yeh et al., 2016). Emotional attachment and a sense of belonging can influence consumer attitudes and behaviors and encourage consumers to participate in the company.
H2: There is a positive influence ofon
WOM arises when consumers are satisfied with a product or company. WOM is very quickly accepted or more trusted by consumers because those who convey it are friends, family or closest relatives (Litvin et al., 2008). Consumers are increasingly concerned about the company's CSR performance. With good CSR performance, the company can form a good corporate image for consumers (Dang et al., 2020). A good company image also encourages consumers to share information about the company (Clara, 2019).
H3: There is a positive influence ofon
Consumers identify themselves like companies because consumers feel they have similar values, behaviors and identities with the company. Consumers can develop strong relationships with companies due to corporate identity. Strong consumer identification of the company can form a strong relationship between the consumer and the company. The stronger the consumer's self-identification of the company, the more loyal the consumer will be to the company. The stronger the consumer's self-identification, the stronger the desire to buy (Pérez & Rodríguez del Bosque, 2015). Consumers identify as companies because consumers believe in the company. This trust can strengthen the relationship between consumers and companies. Consumers tend to buy from these companies as a form of consumer trust
H4: There is a positive influence of Brand Identification on Consumer Purchase Intention
Consumer self-identification can affect consumers' commitment to the company. One of the consumer's commitments to the company is with WOM communication (Tuškej et al., 2013). Consumers who have a strong self-identification of the company will be more likely to conduct WOM communications. WOM communications submitted by consumers may contain information or recommendations about products or companies (Popp & Woratschek, 2017). The information received by consumers will be used as a reference or reference in decision making. In addition, with the existence of WOM, companies can be more trusted by consumers (Matzler et al., 2019).
H5: There is a positive influence ofon Word
WOM is a very effective communication tool (Litvin et al., 2008). In addition, WOM can be used as a source of information for consumers. The WOM delivered can be used as the basis for purchasing decisions by consumers. The stronger the WOM communication received by consumers, the stronger the consumer's desire to buy (Reza Jalilvand & Samiei, 2012). The quantity, credibility and quality of WOM affect consumers' purchasing desires. The higher the quantity, credibility and quality of WOM, the less risky and uncertain consumers are, so that purchasing desires and decision-making are greatly affected (Reza Jalilvand & Samiei, 2012).
H6: There is a positive influence of Word of Mouth on Consumer Purchase Intention
Research Method
This study aims to test the positive influence ofvariables on brand, word of mouth, consumer purchase intention, brand identification on word of mouth, consumer purchase intention and word of mouth on. The design of this study is to conduct hypothesis. The setting study in this study iswhere the research is carried out in the natural environment with minimal researcher involvement. This research strategy is a case study where the research focuses only on a phenomenon. The unit of analysis used in this study is individual minimarket Indomaret consumers, at least spending 3 times in the last 1 month and knowing the CSR program. The time dimension used in this study isbecause data collection is only one time.
Factor analysis is an analytical tool used in testing the validity of this study by comparing the loading factor value of each statement with the standard factor loading. Based on Table 2 and the number of samples in this study, namely 156 respondents, the loading factor used was 0.45 so that the indicators used were declared valid. Internal consistency reliability test is seen from the coefficient value of Cronbach’s Alpha, a reliable statement if Cronbach’s Alpha ≥ 0.6 (Hair et al., 1998).
The number of samples in this study was 156 respondents so that the standard factor loading used was 0.45. The basis for making decisions on the validity test is as follows: (a) If the loading factor is ≥ 0.45, then the statement item is valid. (b) If the loading factor ≤ (0.45) then the statement item is invalid.
The following is a table of validity and reliability test results for each:
Based on Table 3, the validity test results show that all variable indicators have a value above 0.45, which means that all indicators can measure variables in this study. Likewise, the results of the reliability test show that the instrument is reliable, because all variables and elements have a Cronbach Alpha value above 0.6. This means that there is internal consistency between the indicators used to measure each variable in this study.
The analysis method uses the Structural Equation Model (SEM) analysis tool to test the four hypotheses in this study, namely with and the software used is AMOS 24. Before proceeding to the hypothesis test stage, it must be tested on the model used by conducting a model conformity test or a goodness of fit model test. This test was carried out to measure the suitability of the model carried out in the study (Hair et al., 1998).
Based on Table 4 of the results of the goodness of fit test, the p-value value is expressed. CFI, TLI, RFI, NFI values are declaredBased on these values, the model used in this study meets the criteria of the. Therefore, the model used is acceptable and can be carried out hypothesis testing.
Result and Discussion
Descriptive statistics
Descriptive statistics aim to describe a variable.values in descriptive statistics are commonly used for data that has an interval scale. Thevalue shows the average value of the respondent's assessment of each variable statement studied (Sekaran & Bougie, 2016).
Based on Table 5, it is known that respondents' answers to the CSR Retailer variable have an overall average value of 4.40. This shows that consumers consider minimarket “X” as a retailer who is responsible and cares about the environment.
Based on Table 6, it is known that respondents' answers to the Brand Identification variable have an overall average value of 3.47. This shows that consumers' self-identification of minimarket “X” is not strong enough.
Based on Table 7, it is known that respondents' answers to thevariable have an overall average value of 4.13. This shows that minimarket “X” consumers say positive things about Indomaret and share information about Minimarket “X”.
Based on table 8, it is known that respondents' answers to the Consumer Purchase Intention variable have an overall average value of 4.21. This shows that minimarket “X” consumers have a strong desire to buy at minimarket “X”.
Hypothesis testing
Hypothesis 1
The hypothesis test results showed a p-value of 0.001 0.05 (error rate of 5%) and anvalue of 0.491. This shows that consumer perceptions of retailer CSR are driving consumers' purchasing desires. Based on research conducted by Hultman and Elg (2018) states that consumer purchasing behavior is affected by the increasing consumer awareness of retailers' CSR. CSR programs carried out byincrease consumer awareness of the importance of protecting the environment. The results of this study strengthen the research conducted by Dang et al. (2020) conducted in China. The results of the study stated that consumers' perceptions of retailers' CSR influenced consumers' purchasing desires.
Hypothesis 2
Based on Table 9, the hypothesis test results showed a p-value of 0.000 0.05 (5% error rate) and an estimated value of 0.8 22. This shows that consumer perceptions of retailers' CSR can shape consumers' self-identification of retailers. Based on research conducted by Alvarado-Herrera et al. (2017) states that consumer perceptions are influenced by retailers' CSR. CSR carried out by retailers forms the identity of retailers and then consumers form self-identity like retailers. The results of this study reinforce research conducted by Tofighi and Bodur (2015) which states that CSR can shape consumer attitudes and behavior. The results of this study also strengthen research conducted by Hultman and Elg (2018) which states that CSR carried out by retailers makes consumers more aware of the importance of protecting the environment. This is because consumer awareness of the environment is already quite high, so CSR strengthens consumer awareness.
Hypothesis 3
The hypothesis test results showed a p-value of 0.000 0.05 (error rate of 5 %) and an estimated value of 0.653. This shows that the good image offormed because of CSR can encourage WOM communication to consumers. Based on research conducted by Dang et al. (2020) stated that the CSR performance of retailers will form a goodimage for consumers. So that consumers voluntarily communicate WOM to other consumers. The results of this study reinforce research conducted by Litvin et al. (2008) which states that a good image ofcan strengthen WOM communication. The results of this study also reinforce research conducted by Clara (2019) which states that a good retailer encourages consumers to share information and recommend the. This is because consumers are happy and with, so consumers voluntarily provide positive WOM.
Hypothesis 4
The hypothesis test results showed a p-value of 0.008 0.05 (error rate of 5%) and an estimated value of 0.227. This shows that strong consumer self-identification will shape the relationship between consumers and retailers. The strong relationship between consumers and retailers makes consumers' trust with retailers even higher. Based on research conducted by So et al. (2017) states that strong consumer identification with retailers will form a long -term relationship between consumers and retailers. Fournier (1998) states that the relationship between consumers and retailers is shown with retailers being the main choice when consumers want to shop. In addition, consumers' desire to buy from retailers has become very high. The results of this study reinforce research conducted by Chaudhuri and Holbrook (2001) which states that consumer trust in retailers will form a good relationship between consumers and retailers. So that consumers will prioritize the retailer as a place to shop.
Hypothesis 5
The hypothesis test results showed a p-value of 0.000 0.05 (5% error rate) and an estimate value of 0.544. This shows that consumers who identify themselves like retailers are more likely to communicate WOM. Based on research conducted by Tuškej et al. (2013) states that consumers who identify themselves like retailers, will shape consumers' commitment to retailers. The commitment made by consumers is WOM communication or voluntary delivery of information about retailers to other consumers. The results of this study support research conducted by Popp and Woratschek (2017) which states that consumers who have a commitment to retailers tend to communicate WOM voluntarily. The communication conveyed is information and recommendations about products or retailers. The results of this study also support research conducted by Leon and Choi (2020) consumers convey WOM positively towards retailers because consumers feel like part of retailers. With WOM, consumers will have more confidence in retailers. In addition, the information received is reliable because it comes from the closest relatives.
Hypothesis 6
The results of hypothesis testing showed a p-value of 0.005 0.05 (error rate of 5%) and an estimate value of 0.258 this shows that, WOM communication increases consumers' purchasing desire. Based on research conducted by Litvin et al. (2008) states that WOM communication can influence consumer purchasing behavior. The stronger the WOM, the higher the consumer's purchase desire. The results of this study support research conducted by Lee and Youn (2009) which states that WOM communication between consumers can be taken into consideration in consumer purchasing decisions. The results of this study also support research conducted by Reza Jalilvand and Samiei (2012) who stated that with WOM, risks and uncertainties in consumers' minds will be reduced, so that consumers' purchasing and decision-making desires become stronger.
Conclusion
Based on the results of the study, it can be concluded that thevariables have a significant positive influence onand consumer. In this study,had a positive influence on theIn this study,had a smaller positive influence on consumer purchase intention, compared to the positive influence ofonThis research also has limitations, including: this research only focuses on researching one retailer, namely Indomaret, this study does not testandas mediation variables. So that suggestions for further research are suggested to research other retail companies in the minimarket sector as research objects, so that the research results can provide a general overview. Future research suggests testingandvariables as mediation variables.
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Riorini, S. V., Pakpahan, A. K., Sembiring, R. J., & Kurniawan, A. (2023). The Antecedents of Consumer Purchase Intention. In N. M. Suki, A. R. Mazlan, R. Azmi, N. A. Abdul Rahman, Z. Adnan, N. Hanafi, & R. Truell (Eds.), Strengthening Governance, Enhancing Integrity and Navigating Communication for Future Resilient Growth, vol 132. European Proceedings of Social and Behavioural Sciences (pp. 312-325). European Publisher. https://doi.org/10.15405/epsbs.2023.11.02.23