Management Science Letters 10 (2020) 103–110

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Management Science Letters

homepage: www.GrowingScience.com/msl

Student purchase intention in higher education sector: The role of social network marketing and
student engagement

Hartiwi Prabowoa, Ridho Bramulyaa* and Yuniartya

a
Management Department, BINUS Online Learning, Bina Nusantara University, Jakarta, Indonesia
CHRONICLE ABSTRACT

Article history: This study analyzes the impact of social network marketing on student purchase intention and how
Received: July 7 2019 social network marketing also affects student engagement (as moderate variable). Unit analysis of
Received in revised format: July 7 this study includes private university students in Jakarta, Indonesia. The research method used in
2019
this study is verification approach with structural equation modelling. Data collection is accom-
Accepted: August 9, 2019
Available online: plished through questionnaires distributed among 400 students. The results of this study show that
August 9, 2019 social network marketing had significant impact on student engagement, student engagement had
Keywords: significant impact on consumer purchase intention, social network marketing had significant im-
Social network marketing pact on student purchase intention, and there was a significant relationship between social network
Students engagement marketing and student purchase intention through student engagement.
Student purchase intention
© 2020 by the authors; licensee Growing Science, Canada

1. Introduction

Indonesia currently has had 3500 universities, while the number of high school graduates is very large
and not proportional to the number of universities. According to Central Bureau of Statistics Republic of
Indonesia (2018), there were around 20 million students who had not yet entered college and usually
exceptionally enticing for all colleges in Indonesia and indeed overseas. Based on these statistics, each
college must offer superior value to prospective students, understudies and graduates. In addition, what
needs to be considered for universities is the price, reputation, location and study programs offered. The
rapid development of digital technology has changed the lives of individuals in various fields as well as
conventional pound. One of them is to find information. The main distinction between social media and
other conventional media such as television, newspapers, magazines, billboards is that social media of-
fers two-way communication between the company and its customers, not the one-way communication
offered by traditional media. Social media could be a hopeful promoting instrument that make up cus-
tomer relationship management forms and can be utilized to target particular sections of customers
(Heller Baird & Parasnis, 2011). Utilizing social media is much easier for marketers to reach an expansive
number of individuals at exceptionally cost-effective. In addition, social media offers Web 2.0 highlights
of interactive, collaborative, knowledge sharing, and other client engaging devices. Social media may

* Corresponding author.
E-mail address: [email protected] (R. B. Ikhsan)

© 2020 by the authors; licensee Growing Science, Canada

doi: 10.5267/j.msl.2019.8.012
104

serve as a channel for numerous marketing activities counting customer relationship management, cus-
tomer service, buyer research, lead generation, sales promotion conveyance channel, paid advertising
channel, and branding (Ashley & Tuten, 2015). Social network marketing is associated with any market-
ing and communication effort that uses social media as its channel to advance a product, service, or
brand. Social network marketing permits companies to form their own content through modern web tech-
nologies and disseminate them to millions of individuals without charge. Past ponders have distinguished
that one who calculate influencing brand loyalty is students, as they comprise a noteworthy parcel of
active users in social media (Balakrishnan et al., 2014). The youth segment moreover comprises of a
portion of active buyers in different industries of products and services such as technology, sports, enter-
tainment, clothing etc. (Bennett & Lachowetz, 2004). The youth segment has risen as a solid market
portion that has the capacity to impact the purchasing and decision making of others (Loudon & Bitta,
1993; Zollo, 1995). The youth market can be considered an indicator of the encompassing cultural and
social changes (Widdicombe & Wooffitt, 1995).

The utilize of social media may influence customer purchase intentions (Toor et al., 2017). In today's
marketing, expanded utilize of social media has essentially changed the way communication between
sellers and buyers (the marketing field). This advancement has resulted in new potentials and opportuni-
ties in marketing and commerce that are changing the way customers react to purchase as presentation to
distinctive brands of products and services (Shaw, 2012). Numerous marketing experts have considered
the issue of consumer engagement, particularly those that allude to social media research (Dessart et al.,
2015). This is stated in the research of the importance of a general measure of brand engagement on
market behavior: development and validation of a scale by Sprott et al. (2009) which states that customer
engagement as a key driver within the consumer decision making process, the presence of customer
engagement can result in customer satisfaction, loyalty, trust and commitment (Brodie et al., 2013;
Hapsari et al., 2017).

Over the last decade, the role of social media has expanded in developing countries. Social media has
changed the way organizations and consumers are connected. As individual consumers have a stage to
improve their voice in a way better access to product information and purchasing decisions (Wang et al.,
2012). The foremost prevailing social media utilized in Indonesia as well as within the world is Facebook,
Twitter, Youtube, Instagram and blog. Until April 2019, the number of Facebook users from Indonesia
reached 120 million accounts (Clement, 2019). Internet users in Indonesia are always increasing every
year. From 1998 to 2018 there was an increase in internet users by 285.6%. Based on data from APJII
(Asosiasi Penyelenggara Jasa Internet Indonesia), the majority of Internet users are still from the urban
community aged from 19 to 34 years as 84.67 percent where 82.6 percent hold senior high school and
diploma graduates (Indonesia, 2018). At some universities and vocational colleges, the internet has in-
deed become an important part of the teaching and learning process.

2. Literature Review
2.1. Social Network Marketing to Student Engagement

Social media has an impact on students’ emotion. Presently, numerous highly educated teachers are con-
nected with their students through social media by posting news or updates about the world of education.
Within the marketing meaning, the interaction of buyer and seller at social media will make an engage-
ment and in case they dealt with as professionally can lead to an emotional and long-run. Numerous
researchers have stated that engaged clients are not just satisfied or loyal, but they are emotionally con-
nected to the organization’s brands or services (Barhemmati & Ahmad, 2015). Social network marketing
activities can direct students to ended up more involved in social media sites, so that students can be
actively included in giving valuable feedback on certain brands and products (Toor et al., 2017). This
 H. Prabowo et al. / Management Science Letters 10 (2020) 105

statement is related with Howard Rheingold who stated: “what are the benefits of social media to stu-
dent? He muses. there are plenty: greater student engagement greater student interest, student taking
more control of their education and more responsibility for their education”(Blankenship, 2011).
2.2 Social Network Marketing to Student Purchase Intention
The high stream of information on the market and various choices, consumers confront the abundance
information in making purchasing decisions. Since it is exceptionally practical and flexible, social media
has been broadly utilized as a marketing communication. The benefits of utilizing social media incorpo-
rate no confinements on time, place, media and costs (Kim & Ko, 2012). Therefore, social media is
presently broadly utilized to communicate and promote products and services (Karimi & Naghibi, 2015;
Pentina & Koh, 2012). Nowadays, social media is considered the main source of information for cus-
tomers when they need to buy back or in the process of making a purchasing decision (Erkan & Evans,
2016; Hamilton et al., 2016; Zhu et al., 2016). Through social media, customers can effortlessly learn
about the companies and products they like (Paquette, 2013), indeed shopper behavior and perceptions
can be anticipated through information posted through social media platforms (Malthouse et al., 2013).
Today's phenomenon, consumers utilize social media during the purchasing process such as gathering
data, assessing choices, and selecting the finest alternative to post individual experiences on social media
as a post-purchase process (Drews & Schemer, 2010).
2.3 Student Engagement to Purchase Intention

Each understudy encompasses a diverse behavior in terms of value and price and a few of them continu-
ously value the quality of products or services, but a few of those who utilize the web and social networks,
are exceptionally concerned approximately how universities communicate and respect students both
physically and virtually. The conventional way to reach customers through mass media has ended up less
viable in recent years (Phillips & Noble, 2007) and social network marketing has ended up one of the
most current methods that encompasses a more profound affecting on students than conventional meth-
ods. Social media have colossal impact on each stage of the consumers decision making process, to make
common opinion and attitude (Mangold & Faulds, 2009). Bhagat et al. (2009) argue that consumers
interest in conventional media has declined and shifted to social media because of its personalized fea-
tures and controls. Consumers involvement is a vital component and incorporates a solid meaning. Since
there's a media fragmentation due to the accessibility of some media options there will be a diminish in
customer devotion. Businesses must refine their marketing endeavors to engage consumers since con-
sumers are more loyal and emotionally connected with brands (Sorenson & Adkins, 2014).
3. Research Framework and Hypotheses

Based on the literature review, the construct of research framework and hypothesis is as follows

Fig. 1. Research framework

106

Hypotheses that can be built based on the theory and previous research are as follow:

H1: Social network marketing has a significant impact on students’ engagement.

H2: Students’ engagement has a significant impact on students’ purchase intention.
H3: Social network marketing has a significant impact on students’ purchase intention.

4. Methodology and Measurement

Primary data obtained from the questionnaire were observational with data collection using cross sec-
tional. The questionnaire was distributed to 400 active students at private universities in Jakarta with
proportional stratified random sampling. The scale used to measure variables was semantic with a range
of 5 from strongly disagree to strongly agree. The measurement of social network marketing that we
modified belongs to Kim and Ko (2012) and Ahmed and Zahid (2014) with eight indicators. Furthermore,
measuring the student engagement is adopted from Weman (2011) and Gummerus et al. (2012)with six
indicators. For student purchase intentions, we modified a questionnaire from McKnight and Chervany
(2001); Yoo and Donthu (2001); Wang and Chang (2013) with seven indicators. From a number of ref-
erences and several researchers, we adjust ourselves in the context of higher education. The data collected
from the sample was tested for validity and reliability. Finally, the data was analyzed by structural equa-
tion modeling (SEM) with Lisrel 8.71 and conduct mediation test.
5. Results and Discussions
5.1. Social Media
Social media distribution is often used by students. Most respondents use Instagram as much as 40%,
followed by Facebook for as much as 25%, LinkedIn for as much as 21%, twitter for as much as 10%
and Google + for as much as 4%.
Table 1
Crosstabulation Frequency Use Social Media and Flatform Social Media
Social media Total
Facebook Instagram Twitter LinkedIn Others
< 1 Hour Count 0 0 0 40 16 56
Percentage 0.0% 0.0% 0.0% 71.4% 28.6% 100.0%
1 - 3 Hour Count 60 0 40 44 0 144
Percentage 41.7% 0.0% 27.8% 30.6% 0.0% 100.0%
> 3 Hour Count 40 160 0 0 0 200
Percentage 20.0% 80.0% 0.0% 0.0% 0.0% 100.0%
Total Count 100 160 40 84 16 400
Percentage 25.0% 40.0% 10.0% 21.0% 4.0% 100.0%
Source: Primary Data. 2019

80% of the students who access Instagram on a single day, spend an average of at least 3 hours. Whereas
those who access Facebook on average 1 - 3 hours a day are accounted for 41.7 percent. Students access
Instagram and Facebook, besides communicating with peers, also receive updated information from their
colleges.
5.2. Testing of Research Instruments

Confirmatory factor analysis with first order is used for validity and reliability tests. Research model is
constructed by 21 item battery. All the indicators in each construct have resulted in the value of loading
factor bigger than 0.5 so there is no indicator excluded from the model (see Table 2).
 H. Prabowo et al. / Management Science Letters 10 (2020) 107

Table 2
Results of Confirmatory Factor Analysis First Order
Construct Indicator λ λ2 e CR VE
SNM1 0.82 0.67 0.36
SNM2 0.85 0.72 0.25
SNM3 0.83 0.69 0.26
SNM4 0.91 0.83 0.17
Social Network Marketing 0.964 0.770
SNM5 0.92 0.85 0.12
SNM6 0.88 0.77 0.23
SNM7 0.88 0.77 0.19
SNM8 0.86 0.74 0.23
SE1 0.91 0.83 0.18
SE2 0.93 0.86 0.14
SE3 0.90 0.81 0.19
Student Engagement 0.961 0.804
SE4 0.88 0.77 0.22
SE5 0.88 0.77 0.23
SE6 0.88 0.77 0.22
PI1 0.87 0.76 0.24
PI2 0.87 0.76 0.24
PI3 0.93 0.86 0.14
Student Purchase Intention PI4 0.91 0.83 0.18 0.958 0.764
PI5 0.86 0.74 0.26
PI6 0.85 0.72 0.27
PI7 0.82 0.67 0.32
Source: Primary Data. 2019

5.3. Testing of Research Hypotheses

Based on the results of goodness of fit (GOF) with nine criteria of the measured index, there are two
indices that do not meet the requirements, namely Chi-Square-value and Sig. Probability. But there are
nine indices that meet the requirements. The expected of Chi-Square-value for GOF is smaller than Chi-
Square-table and Sig. probability is greater than 0.05. Hair et al. (2013)explain that Chi-Square is very
sensitive with large samples. If the sample is more than 200, Chi-Square must be accompanied by another
test equipment. Since this study used 400 samples, so the Chi-Square and Sig Probability values are
ineffectively, but still be considered valid since the other nine criteria tested have met requirements.

Standardized t-value
Fig. 2. Final Model
From final model (see Fig. 2), social network marketing influences student engagement with the coefficient
value 0.82 and t-value 16.88. Social network marketing influences student purchase intention with the co-
efficient value 0.48 and t-value 7.24 and student engagement influences student purchase intention with
the coefficient value 0.35 and t-value 5.34. It means all the inter-variable relationships are significant since
the t-value is bigger than the cut off 1.96. Based on the structural equation of student engagement the value
of R-Square is found 0.67 meaning that social network marketing contributed 67% to increasing student
engagement. Whereas from the structural equation of student purchase intention the value of R-Square is
found 0.63 meaning that the social network marketing and student engagement contribute 63% to create
student purchase intention. The other factors have impacts to student engagement and purchase intention
namely service quality or service learning, relationship quality, etc. Student engagement plays a mediating
role on the relationship of social network marketing toward the student purchase intention because the value
108

of direct relationship, which is initially significant, is still significant but decreasing after being added to
student engagement. See Table 4.

Table 3
Goodness of Fit Statistics
Goodness of Fit Index Cut of Value Result Information
Chi-Square
Chi-Square X2< X2 table 567.59 Poorly
Sig. Probability P > 0.05 0.00 Poorly
Absolute Fit Measures
GFI ≥ 0.90 0.880 Marginal
RMSEA ≤ 0.08 0.080 Good
Normed Chi-Square < 2 or < 5 3.802 Good
Incremental Fit Indices
NFI 0.90 0.98 Good
NNFI 0.90 0.98 Good
CFI 0.90 0.99 Good
RFI 0.90 0.98 Good
Parsimony Fit Indices
AGFI 0–1 0.88 Properly
PNFI 0–1 0.75 Properly
Source: Primary Data. 2019

Table 4
Mediation Test
Direct Indirect
Path
Coefficient t-value Coefficient t-value
Social network marketing student engagement  student purchase inten-
0.82 16.88 0.28 5.24
tion
Source: Primary Data. 2019

5.4. Discussion

This research is a review from the perceptions of students when they make decision to become students at
private colleges in Jakarta. Learning how the behavior of student purchase intentions in higher education,
the study has examined the relationship between social network marketing, student purchase intentions and
student engagement. The results of this ponder demonstrate that student engagement is one of the critical
factors to influence on student purchase intentions in higher education. Moreover, the role of student en-
gagement as arbiter can clarify how colleges use social media marketing as an apparatus to extend student
purchase intention. The results of the ponder demonstrate that social networking marketing encompasses a
significant impact on students' purchase intention at private colleges in Jakarta. This finding appears that
students at private colleges in Jakarta, Indonesia can be impacted by online communication through social
media sites. During interaction, students can communicate and share their learning experiences and inten-
tions to learn within the department provided by the college. In this manner it can be concluded that this
interaction can influence students in forming their purchase intentions. The discoveries of this study support
previous research (Alalwan, 2018; Gautam & Sharma, 2017; Ngai et al., 2015; Toor et al., 2017). The
platform offered by social media such as Instagram and Facebook are able to create viral effects and offer
assistance to students in Jakarta, Indonesia opens up to colleges that create positive attitudes towards pur-
chasing efforts. In line with previous research (Bado & Nyangau, 2012; Smedescu, 2014; Subramani,
2015), this study found that social network marketing was significantly related to consumer engagement.
At present, most students in Indonesia spend time interacting with online communities through social media
platforms such as Facebook, Instagram, Twitter (See Table 1). With features available on social networking
sites, students can connect and exchange information instantly with peer and family through video uploads
and stories or college experiences. This study explains that students’ engagement is positively related to
student purchase intentions. This result supports Chen (2017) who explained customer engagement in so-
cial media which explains consumer engagement on social media serves as an important factor in generat-
ing consumer purchase intentions. This statement is generalized as students who regularly communicate
utilizing social media have also a propensity to create purchases.
 H. Prabowo et al. / Management Science Letters 10 (2020) 109

5.5. Conclusion and limitation research

From the research, it can be concluded that the social network marketing significantly influenced student
engagement and impact to student purchase intention. Student engagement is a mediating function be-
tween social network marketing to student purchase intention. The student engagement on higher educa-
tion will decide whether they will purchase or not depending on the activities of institutions in social
network marketing. For higher education institutions, by actualizing social media marketing activities
through posting videos, news and information about their institutions will have an impact on students'
deliberate to enter the college. There are a few limitations that must be highlighted indeed in spite of the
fact that this demonstrates fit when Normed Chi Square is less than 5.0 and RMSEA is less than or break
even with 0.08 but Chi Square value and Sig. Probability was poorly, but observational results are con-
sidered fit. This can be clarified by the fundamental relationship within the model but has not been cap-
tured. Moreover, data was collected from surveys with 400 students. Data quality is very dependent on
the attitude of the respondents who took part in the survey. In this manner, future researchers must include
more variables and relationships between variables, specifically the relationship between benefit learning
and relationship quality. Surveys can be conducted in larger samples to diminish data bias and the appli-
cation of in-depth interviews to capture the fundamental information to better clarify the connections
between variables.
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