The effect of electronic word of mouth (e-wom), brand awareness, and product quality on purchase intention of Zara customers in Medan Indonesia

Lawton, Grace Hanlis (2023) The effect of electronic word of mouth (e-wom), brand awareness, and product quality on purchase intention of Zara customers in Medan Indonesia. Bachelor thesis, Universitas Pelita Harapan.

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Abstract

Zara was founded by Amancio Ortega Gaona in 1974 in La Coruña, Spain. In 2020 - 2022 ZARA experienced a decline in sales in Indonesia of 1.8%. This study investigates the effects of Electronic Word-of-Mouth (E-WOM), Brand Awareness, and Product Quality on Purchase Intention, focusing on ZARA, a globally recognized fashion brand. Utilizing a quantitative with descriptive and causal study. It analyzes feedback from 150 ZARA customers using Lemshow formula, selected via non-probability sampling with purposive sampling method, to understand how E-WOM, alongside brand awareness and product quality perceptions, influences their purchase decisions. The research demonstrates that E-WOM, Brand Awareness and Product Quality significantly impacts Purchase Intentions. These results show that the effect of the E-WOM, brand awareness, product quality variables have an effect of 39.4% on the purchase intention For ZARA, this study underscores the importance of strategically managing online customer interactions and feedback, as well as maintaining high standards in product quality and brand image. The insights from this research can guide ZARA optimizing their marketing strategies to leverage the combined effects of E-WOM, brand awareness, and product quality, thereby enhancing consumer purchase intentions./ Zara didirikan oleh Amancio Ortega Gaona pada tahun 1974 di La Coruña, Spanyol. Pada tahun 2020 - 2022, ZARA mengalami penurunan penjualan di Indonesia sebesar 1,8%. Studi ini meneliti efek dari Electronic Word-of-Mouth (E-WOM), Kesadaran Merek, dan Kualitas Produk terhadap Minat Pembelian, dengan fokus pada ZARA, sebuah merek fashion yang diakui secara global. Menggunakan metode kuantitatif dengan studi deskriptif dan kausal. Studi ini menganalisis umpan balik dari 150 pelanggan ZARA menggunakan rumus Lemshow, dipilih melalui sampel non-probabilitas dengan metode sampling purposif, untuk memahami bagaimana E-WOM, bersamaan dengan persepsi kesadaran merek dan kualitas produk, mempengaruhi keputusan pembelian mereka. Penelitian ini menunjukkan bahwa E-WOM, Kesadaran Merek, dan Kualitas Produk berdampak signifikan terhadap Minat Pembelian. Hasil ini menunjukkan bahwa efek dari variabel E-WOM, kesadaran merek, dan kualitas produk memiliki pengaruh sebesar 39,4% terhadap minat pembelian. Bagi ZARA, studi ini menekankan pentingnya mengelola interaksi dan umpan balik pelanggan secara online secara strategis, serta mempertahankan standar tinggi dalam kualitas produk dan citra merek. Wawasan dari penelitian ini dapat membimbing ZARA dalam mengoptimalkan strategi pemasaran mereka untuk memanfaatkan efek gabungan dari E-WOM, kesadaran merek, dan kualitas produk, sehingga meningkatkan minat pembelian konsumen.

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