The development of technology is experiencing very rapid growth in line with the era of globalization which demands the speed of information. One of the developments in information technology is internet network technology. The emergence and development of the internet brought a new way of communication in society. One of them is social media. Instagram is one of the most popular social media for the people of Indonesia, around 86.6% of internet users use Instagram. Where there are many online store accounts that promote and offer a variety of their selling products from various circles on Instagram, one of which is in the fashion sector, namely Renda Indonesia. However, Renda Indonesia is outperformed by its competitors on Instagram. Comparatively speaking, this business is growing much slower than its competitors in terms of traffic and followers. As a result, the author is interested to identify the issue the business faced and find a solution so that it can catch up to and compete with its competitors.
The purpose of this study was to examine the effect of Social Media Marketing and Engagement on the Consumer Purchase Intention of Renda Indonesia, as well as to measure the opinion of potential customers of Renda Indonesia on the variables of Social Media, Consumer Engagement and Consumer Purchase Intention of Indonesian Consumers.
This study uses an online questionnaire distribution method using Google Forms to 400 respondents who know and follow the Instagram Renda Indonesia social media. To test the research model, researchers used Structural Equation Modeling (SEM), using SmartPLS software. The technique used is non-probability sampling, where the researcher uses purposive sampling.
The results of the descriptive analysis show that Social Media Marketing, Consumer Engagement and Consumer Purchase Intentions are in a good category. The results of the hypothesis show that there is a relationship between Social Media Marketing and Consumer Engagement towards Consumer Purchase Intention.
This research is expected to provide benefits and insights to other researchers, as well as companies regarding Social Media and Consumer Engagement with Consumer Purchase Intentions. The author advises Renda Indonesia to communicate with Instagram consumers by replying to consumer comments and also recommends Renda Indonesia to use Instagram Stories that can display everyday moments in business. This will make consumers feel valued, engaged and special.
Keywords: Social Media Marketing, Consumer Engagement, Consumer Purchase Intention, Structural Equation Modelling, SmartPLS