Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2021 Vol: 20 Issue: 2S

Digital Marketing: Implementation of Digital Advertising Preference to Support Brand Awareness

Doni Purnama Alamsyah, Bina Nusantara University

Indriana, Bina Nusantara University

Chyntia Ika Ratnapuri, Bina Nusantara University

Rudy Aryanto, Bina Nusantara University

Norfaridatul Akmaliah Othman Universiti Teknikal Malaysia Melaka

Keywords:

Digital Advertising Preference, Consumer Needs, Brand Awareness

Abstract

 Management information system is important to be part of company operation. Its implementation through digital marketing in marketing side. Based on digital marketing issue, so this study aims to examine the position of digital advertising preference as the implementation of digital marketing on company. The study is conducted by analyzing consumer needs and consumer brand awareness. It is conducted by survey to 205 consumers who have experience in accepting of digital advertising. Path analysis is conducted by using SmartPLS to examine the research hypothesis. The research findings are stated that digital advertising preference can be influenced by consumer needs. Furthermore, the implementation of digital advertising preference has positive impact to consumer brand awareness. Information of research findings is useful for company, before the implementation of digital marketing reviews the position of digital advertising preference that can stimulate of consumer brand awareness

Introduction

Management Information System (MIS) has become an important concern in the 4.0 era; integration systems and the decision support systems produced by MIS are the superior application of entrepreneurs in relation to business competition (Salloum & Ajaka, 2013). The implementation of MIS provides a stimulus for business performance achievements (Govoni, 2012), because information needed to make business decisions is obtained more quickly. Through MIS, it makes it easier for companies to plan to evaluate all of company’s lines, making it easier to coordinate (Fink & Ploder, 2009). In addition, MIS is believed to be able to improve the quality of human resources in company because of the support of system integration from all units (Kurniawan, 2018). There are many systems in companies used by each unit in order to complete the operations and to achieve the optimal performance. Through MIS, system integration is easier, so that all of procedures can be controlled by regarding to company’s goals (Potgieter, 2008; Salloum & Ajaka, 2013). MIS provides informational services; in marketing area, there is information needed due to products, prices, strategies, and consumer behavior (Govoni, 2012). The purpose of MIS is surely to provide the supporting information which is useful for decision making (Fink & Ploder, 2009).

Digital marketing is part of the MIS implementation (Smith, 2019), which is used by marketing department to enter the target market. Digital marketing is used by marketers as an effort to market products or services through the electronic media online (Kull & Heath, 2016). It is believed to be part of marketing in the 4.0 era, because all of marketing information is carried out in an integrated manner (Pamungkas et al., 2017). One of digital marketing implementations is the use of advertising media through a digital systems known as digital advertising (Yang et al., 2018). Digital advertising is a marketing communication effort made by marketers in promoting products or service agents through digital channels (Yang et al., 2016). There are many advertising media; digitally means using a media channel, is internet. Advertising is carried out by companies with prioritizing messages, it is intended to increase the product value delivered to public (Doni Purnama Alamsyah et al., 2020; Y. Yang et al., 2018). Through advertising, it is expected to be able to increase the value of product or service, so that when consumers need it, they will make a selection of products assessed (Jayaram et al., 2015; Sab, 2011).

Digital advertising becomes more appropriate strategy when it is associated with market share coverage (Yang et al., 2018). Because the media used, is internet, can be accessed by consumers widely, without regional boundaries (Sab, 2011). It means that the broad reach of digital advertising allows products and service information to be accepted by many consumers. The importance of digital advertising continues to be developed and evaluated so that information from digital advertising is more easily accepted by consumers, and the goal of advertising is achieved, namely the increasing of product value (Rahim et al., 2012; Yang et al., 2018). Observing the phenomenon of digital advertising, it is important to notice to consumers preferences for digital advertising. Considering that the impact of digital advertising assessed by consumers on brand awareness (Alamsyah et al., 2018; Rambe & Jafeta, 2017). Consumers’ concern starts from what they judge; it is related to online advertising (Jayaram et al., 2015). Besides that, company’s brand will be involved in it, because consumers are often associated with the creator’s brand in evaluating products. The power of brand becomes the support of product value or vice versa, in which products are considered to have value an impact to company’s brand (Kotler, 2000). It seems clearly that the implementation of digital advertising has an influence to brand awareness which is assessed by consumers, and it is based on their preferences.

Regarding to consumer behavior, it is necessary to know consumers needs (Valaskova et al., 2015). In relation to the implementation of digital advertising, all of information are submitted online, it can be appropriate and not. Consumers needs are always different for each individual, but generally they have levels ranging from the basic of consumers need until to self-actualization needs which is not all consumers need (Bolton & Mattila, 2015; Sawitri & Febrian, 2018). The implementation of digital advertising as an impact to consumers needs (Jayaram et al., 2015; Smith, 2019), because consumers also need information that is related to products to be selected based on their preferences. Consumers needs for faster and instant information is one of the causes of the emergence of digital advertising (Rambe & Jafeta, 2017). Because it is easy to access and search for consumers anytime and anywhere.

Based on the problem’s phenomenon, it is related to the implementation of digital marketing and consumer behavior. So, this research focuses on examining the correlation of digital advertising preferences, consumers needs, and brand awareness. The position of this research is to find the right model in explaining the position of digital advertising preference in consumer behavior. There is important information which will be found in this research, is related to the implementation of digital advertising preferences in supporting digital marketing.

Literature Review

Digital Advertising Preference

Digital advertising is growing very rapidly in marketing science; it considers the impact of digital advertising on achieving a wider market share (Jayaram et al., 2015). In principle, it controls the internet channel as the main media for advertising products and services (Smith, 2019). It is accepted by consumers through electronic media, such as computers and mobile devices (Yang et al., 2018). There are several platforms which contained websites and social media (Yang et al., 2016). The development of electronic media, obviously, it affects the content of digital advertising received by consumers (Kim et al., 2013) so that it raises consumers preferences for the expected digital advertising. Consumers preference is a tendency for consumers to notice to an advertisement (Sab, 2011). Many things are considered by consumers on an advertising, it includes to provide useful information for consumers (Smith, 2019). Through digital advertising, there are many benefits which will be felt by consumers, such as information on products or services that are more interactive and easier to access. However, the various types of online advertising have different assessment viewed by consumers (Rambe & Jafeta, 2017). In principle, advertising is the presentation of an idea or message in a particular media stated to consumers (Yang et al., 2018). The message conveyed is persuasive, so that it has a positive impact on the value of product delivered (Yang et al., 2016). Examining the theory of advertising, it seems that a study of consumers’ preferences is needed, as the basis for receiving messages that can be accepted by consumers.

Consumers preferences are theoretically defined as consumers’ interest in a product with a statement of whether they like it or not on the results of its own evaluation (Wan & Toppinen, 2016). While advertising is stated to be a promotion created by companies to attract consumers (Yang et al., 2018). So, it can be said that digital advertising preference is consumers’ interest in marketing communication which is carried out by companies in promoting products or services through digital channels. Digital advertising preferences has an impact on consumer behavior, such as consumer’s care for products and brands (Maniu & Zaharie, 2014). In previous studies, it is mentioned that the implementation of digital advertising by companies often increase the value of products and brands considered by consumers (Sander et al., 2021; Yang et al., 2016), it is known as consumer brand awareness. Digital advertising is part of a marketing strategy which uses information technology support. There are several platforms can be used in the implementation of digital advertising, such as social media, website, or blogs that becomes a target of digital advertising (Maniu & Zaharie, 2014; Yang et al., 2016).

Digital advertising preference can be measured through several indicators, such as consumers preference for search engine advertising, interactive advertising, opt-in advertising, social media networks, and mobile advertising (Rambe & Jafeta, 2017; Sab, 2011; Solnais et al., 2013)

Consumer Needs

Consumer needs continue to grow and change along the times (Andreassen & Lindestad, 1998). It means that companies need to understand to consumer behavior in order to know the development of consumers’ needs, because products created by company, it needs to be in line with consumers’ desires and needs. Every concept of a product or service that will be offered to consumers must be appropriate with consumers’ desires (Lii & Lee, 2012). In understanding consumers’ desires, it is necessary to notice to what is happening in the market (Grewal et al., 1998). First is identify the market, second is understand market needs, third is distribute market needs, and fourth is convey the advantages of product for market (Anisimova, 2016; Radman, 2005; Subawa et al., 2020). The stage of observing the market provides the opportunities for marketers to create products which are according to consumers’ needs. In principle, companies always prioritize three important things in building a business, such as consumer needs, company analysis and competitor analysis (Ruvio et al., 2008). Understanding of consumers’ needs through emphatic maps by feeling what consumers want (Garriga, 2014), and this is the main analysis in running a business. After that, we examine the internal and external companies which are able to have an impact to business travel (Stamatovi? et al., 2008). It is important to understand to consumer needs because the sustainable performance of company is depending on how far company fulfill their consumer’s needs.

Consumers’ needs which often come first are called physiological needs, in which these needs are the fundamental needs of consumers (Kusumawati, 2020). Thus, this need is related to the survival of consumers, so products or services which have the nature of external needs, such as eating and sleeping. Companies with their ideas are trying to fulfill their physiological needs through basic products, are food and bedding, surely with more value, so that they become consumers’ choices. If the needs of physiological needs have been fulfilled, then another requirement followed is safety needs. Safety needs are the need for safety and self-protection from something which is disturbs to consumers’ comfort (Cagno et al., 2013). It is related to security assurance, stability, protection from situations that worry consumers while driving or other activities (Hoffmann & Gatobu, 2014). It is like physiological needs, if the safety need is fulfilled, so consumers need something else known as love needs. Need for love is commonly found and felt by consumers as social beings (Kusumawati, 2020), it is commonly known as love and friendship either with family or with friends. In the world of work, this need is also a basic need, namely acceptance as a new member in an organization (Ruvio et al., 2008). Companies surely assume this integrity as a different need from their physiological needs because these needs have a higher level. So that companies try to create products with the issues or values related to affection or love.

Other consumers’ needs that appear from consumer behavior are esteem needs, is the need to be respected (Ruvio et al., 2008). It occurs when consumers feel a friendship in the environment or business. Several products which explain the appreciation of consumers began to be created, with the advertisements explain the value of these products, such as vehicles or communication devices (Kang et al., 2012). So that the existence of consumers in the environment is more appreciated by the support of company’s products. The last thing which consumers need is self-actualization need which is known as the highest need of consumers (Dar, 2014). Self-activation is consumers’ dream as social beings, which they want to achieve in order to find a pride for consumers (Natapura, 2009). In principle, consumers’ needs are different. Through the level of previous consumers’ needs, it can be known what consumers’ need at each stage.

Understanding to consumers’ needs are very good for marketers; information from consumers can be related to the implementation of marketing strategies, such as the implementation of content in digital advertising (Yang et al., 2018). Moreover, the previous studies have explained that digital advertising can be implemented well after understanding consumer behavior through what it needs (Maniu & Zaharie, 2014). Assessing consumers’ needs returns to Maslow’s previous theory, in which it is stated that it has levels starting from physiological need, safety need, love need, esteem need until self-actualization need (Maslow, 1943).

Consumer Brand Awareness

Brand awareness is consumers’ ability to recognize and to remember a brand by seeing something unique from the brand identity (Sanyal & Datta, 2011). Brand identities are very much, such as colors, logos, writing or other visualizations, and those identities give the brand an important position in consumers’ minds (Bojei & Hoo, 2012). Brand awareness is very important as a first step in positioning a company’s brand in the market (Doni Purnama Alamsyah et al., 2020). There are too many brands provide complication from consumers to remember or even to be loyal to one brand (Zhang et al., 2015). So that companies need consumer brand awareness. Brand awareness is an ongoing process, because it is obtained by companies through consumers for a long time (Du et al., 2007; Lii & Lee, 2012). However, having consumer brand awareness can trigger consumers to choose our products and even to be loyal to products offered. There are many advantages of brand awareness when it is achieved by company, like it influences to consumers to make purchase (Yaseen & Tahira, 2011). Moreover, consumer brand awareness is commonly used in measuring the performance of a brand in the market (Bojei & Hoo, 2012).

There are many ways to build brand awareness in order to make it easier for consumers to recognize through slogans and advertising (Maniu & Zaharie, 2014). A persuasive message in advertising is a strategy assumed to be effective in creating brand awareness (Yang et al., 2018). It means that digital advertising has a good opportunity in creating consumer brand awareness. Through consumer brand awareness, company gets a brand image (Chen & Hsieh, 2011), in which it is a representation of the whole brand perception assumed by consumers. The importance of brand awareness is actually used by companies in controlling consumer behavior, namely consumers’ intention in choosing products and it tends to be loyal to one product (Othman & Rahman, 2014). Consumer brand awareness is assessed through several indicators, where they are generally known from the following measurements, such as aware of brand, identify of brand, remember of brand, know of brand, and easy to search of brand (Doni Purnama Alamsyah & Febriani, 2020).

Methodology

This study focused on three variables, were digital advertising preference, consumer needs, and consumer brand awareness. The study was conducted to find a research model related to digital advertising preference. The measurement of each variable was determined based on the previous literature review, in which for each variable was measured by five indicators. All of research instruments were in the form of a quantitative questionnaire with predetermined entries by using a Likert scale approach.

The research method used was through a descriptive survey, where the survey was conducted to consumers who had received digital advertising through online media. Data of 205 consumers were collected and analyzed through path analysis, with the SmartPLS tools. The analysis stage is carried out by testing the inner and outer models and testing the research hypothesis. In the literature review, it had been revealed that there is a correlation between variables, where it is stated that digital advertising preference had a positive impact to consumer brand awareness. On the other hand, it was also said that digital advertising preference was influenced by consumers’ needs. This research was followed up on the direct relationship between consumers’ needs and consumer brand awareness. Based on a study of preliminary research, so the research hypothesis was determined as follows.

H1: Consumer needs have positive impact to digital advertising preference

H2: Consumer needs have positive impact to consumer brand awareness

H3: Digital advertising preference has positive impact to consumer brand awareness

Result and Discussions

The study results begin with a discussion related to three variables, such as consumer needs, digital advertising preference, and consumer brand awareness. Data from 205 of consumer is obtained through questionnaires, all of data were tabulated and they are valid. Furthermore, data is processed without information from respondents because the respondents are selected based on their prior experience by knowing digital advertising. The results of first study by processing data through a model which has been determined based on the research hypothesis. The research model is shown in Figure 1, where there are three variables, namely consumer needs, digital advertising preference, and consumer brand awareness. The research model is tested through SmartPLS, so that to test the model is acceptable or not that based on the inner outer model test.

The inner model test is conducted through testing on several criteria, such as Loading Factors, Cronbach’s Alpha, Composite Reliability, and Average Variance Extracted (AVE). Based on the results summarized in Table 1, it is known that the Outer Loading value is above 0.6, except for X23 on digital advertising indicator. In Table 2, it is known that Cronbach’s Alpha and Composite Reliability values are above 0.5, and the AVE values are above 0.4. Based on the conclusion of the results in Table 1 and 2, it is known that research instrument can be accepted and continued for analysis. Furthermore, the outer model test is carried out, which is through the value criteria in T-Statistics. Based on the results in Table 2, it is known that all of T-Statistics values obtained for all of research instruments which have values are above 2.2 (except X23). It means that research instrument is accepted based on the outer model test. Concluding from the results of inner and outer model test, it can be said that the model is valid and reliable, so it can be anayzed further.

The next test is conducted by testing research hypothesis based on the previous hypothesis design. There are three research hypotheses tested by the results summarized in Table 4. The first hypothesis is the correlation between consumer needs and digital advertising preference, which is known to have a T-statistic value of 5.608. It is the same with the third hypothesis where the correlation between digital advertising preference and consumer brand awareness has a T-statistic of 10.729. The two previous hypotheses have a T-statistic value above 1.69, which explains the acceptance of research hypotheses. It is emphasized by P values are below 1. So that it can be conveyed that consumer needs have a positive correlation with digital advertising preference, then digital advertising preference has a positive correlation with consumer brand awareness. However, it is different from the test results on the second hypothesis, is the correlation between consumer needs directly and consumer brand awareness where T-statistic value is 1.782 with a P value of 0.075. These results are still acceptable, but it is highly less the possibility. So, it can be concluded directly that consumer needs is not recommended to be used to control consumer brand awareness.

Conclusion from the results of hypothesis testing is presented in the research model as illustrated in Figure 1. It is clear that consumer needs have positive correlation to digital advertising and digital advertising has a positive correlation to consumer brand awareness. However, consumer needs have a positive correlation to consumer brand awareness, it is not recommended because it has a weak correlation. Furthermore, the analysis of each research hypothesis and research findings is presented separately in the following discussion. As for the beginning, it is known that there is a recommendation model related to the position of digital advertising preference as a variable mediation between consumer needs and consumer brand awareness as shows in Table 1, Table 2, Table 3 and Table 4.

Table 1
Values of Outer Loading
Instruments Consumer Needs Digital Advertising Preference Consumer Brand Awareness
X11 0,806    
X12 0,763    
X13 0,831    
X14 0,832    
X15 0,826    
X21   0,678  
X22   0,690  
X23   0,164  
X24   0,754  
X25   0,684  
Y1     0,701
Y2     0,830
Y3     0,843
Y4     0,800
Y5     0,726
Table 2
Values of Reliability And Validity
Variables Cronbach's Alpha Composite Reliability AVE
Consumer Needs 0,580 0,746 0,400
Digital Advertising Preference 0,871 0,906 0,659
Consumer Brand
Awareness
0,839 0,887 0,612
Table 3
P Values Of Outer Loading
Instruments T Statistics (|O/STDEV|) P Values
X11<- Consumer Needs 19,547 0,000
X12<- Consumer Needs 17,899 0,000
X13<- Consumer Needs 26,558 0,000
X14<- Consumer Needs 33,475 0,000
X15<- Consumer Needs 30,309 0,000
X21<- Digital Advertising Preference 12,751 0,000
X22<- Digital Advertising Preference 12,397 0,000
X23<- Digital Advertising Preference 1,481 0,139
X24<- Digital Advertising Preference 9,299 0,000
X25<- Digital Advertising Preference 16,232 0,000
Y1<- Consumer Brand Awareness 15,558 0,000
Y2<- Consumer Brand Awareness 33,321 0,000
Y3<- Consumer Brand Awareness 28,065 0,000
Y4<- Consumer Brand Awareness 23,690 0,000
Y5<- Consumer Brand Awareness 14,305 0,000
Table 4
P Values Of Hypothesis
Hypothesis T Statistics (|O/STDEV|) P Values
Consumer Needs -> Digital Advertising Preference 5,608 0,000
Consumer Needs -> Consumer Brand Awareness 1,782 0,075
Digital Advertising Preference -> Consumer Brand Awareness 10,729 0,000

The Impact of Consumer Needs to Digital Advertising Preference

The study results have been described in Figure 1, that there is a positive correlation of consumer needs in digital advertising preference with a correlation value of 0.387 or having a positive impact of 15%. This study results are in line with the previous studies that show digital advertising preference in its implementation depends on consumer needs (Rambe & Jafeta, 2017; Subawa et al., 2020). Based on these findings, it can be said that this research completes the previous research. Information from this study is important for marketers that the implementation of digital advertising in digital marketing cannot be separated from consumer preferences and consumer needs. The purpose of implementing digital advertising preference is surely to increase the value of product and service which is promoted, so that it can be accepted by consumers.

Figure 1: Research Model

There are many types of digital advertising, however it focuses on consumer preference, so the intended advertising is related to the platforms used in digital advertising. First, it focuses on search engine advertising, consumer actually feel that there is advertising which appears when they search for information via internet. This advertising has consumers’ attention and it is effective to be felt by them. Furthermore, interactive advertising appears when consumers are interacting with a website or e-commerce. Advertising appears is not directly noticed by consumers, so that it has an impact to consumer’s assesment. Sometimes consumers feel that there is opt-in advertising which appears when a transcation occurs, eventhough it is disturbing, it has an impact to consumers’ attention. Nowadayas, consumers are accustomed to all of social media networks, as a medium for interacting and communicating. However, it is not realized that many advertisements have appeared and received consumers’ attention. Companies are more active in providing advertising through digital; one of them are directly through mobile advertising. Although it does not receive a direct attention, it has an impact to consumers’ memory. Digital advertising preference appears to be related to consumers needs, where each consumer has a different level of need for advertising. However, all of the preference which appear indirectly from consumers, they are an important part of what marketers notice in implementing digital advertising.

Mediation of Digital Advertising Preference

This study findings are based on the model presented in Figure 1, which states that digital advertising preference has a positive correlation to consumer brand awareness. Based on a quite higher of correlation value, is 0.646, or digital advertising preference has an impact of 41.7% to brand awareness. This finding is in line with the previous studies which explain the benefits of digital advertising in controlling consumer brand awareness (Doni Purnama Alamsyah et al., 2018; Jayaram et al., 2015). Based on these findings, it is clear that this part of research completes the previous studies. The advertisements are packaged by marketers contain messages that are conveyed in a persuasive away, they notice to consumers’ concern for the brand.

There is another research results illustrated in Figure 1. It states that there is a correlation between consumer needs and consumer brand awareness are about 0.120. This correlation is not too close, so it is not recommended; it means that what consumers need is not able directly to explain consumer’s concern for the brand. The correlation between two variables is still too far away. Based on this study, it can be seen that the position of digital advertising preference is a mediation of the correlation between consumer needs and consumer brand awareness. Considering that digital advertising can be influenced by consumer needs and it can affect to consumer brand awareness.

The implementation of digital advertising has an impact to consumer behavior. Digital advertising, which is part of digital marketing, it is actually useful in supporting marketer’s performance, because it is able to measure consumer behavior. Based on this study findings, it is clear that the implementation of the Management Information System (MIS) is the implementation of digital advertising as an implementation of a marketing strategy. The information of this study can be used by companies, where the importance of observing to digital advertising is to control consumers’ assessment of brand and their concerns.

Conclusions

The importance of information technology in supporting company’s performance. Technology implementation is carried out by companies through digital marketing to support marketing information systems. One of the ways to do by digital marketing is the implementation of digital advertising. The research findings stated that digital advertising can be preferred by consumers through the support of consumer needs. So that the content in digital advertising is in accordance with consumers’ expectations. One side is found that digital advertising preference of consumers has a positive impact to consumer brand awareness of products from companies. In this study, it was found that consumers needs were not directly able to measure consumers brand awareness. So that, the final conclusion is found the position of digital advertising preference as a mediation between consumer needs and consumer brand awareness. This research has limitations where it does not study the characteristics of consumers and research object for consumers who see digital advertising in general. So that it becomes a suggestion for further research to examine specifically to consumers who have interest in tourism areas, because digital advertising preference are often studied in understanding tourism area.

Acknowledgment

The study of green customer behavior is international collaboration results between Bina Nusantara University and Universiti Teknikal Malaysia Melaka. Also, this work supported by Research and Technology Transfer Office, Bina Nusantara University, as a part of Bina Nusantara University’s International Research Grant entitled “The Neuro research of Green Advertising: Study of Green Consumer Behavior” with contract number: No. 017/VR.RTT/III/2021 and contract date: 22 Maret 2021.

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