Wendy Souisa, Fauzia Tutupoho, Saul Ronald Jacob Saleky

Politeknik Negeri Ambon

Introduction
Due to advances in technology, people with similar
interests, backgrounds or attitudes can join
communities of like-minded people and share views,
exchange information and build relationships,
regardless of where they are in the world.
This form of online word-of-mouth communication
seems to offer new opportunities and challenges for
businesses because consumers interests in brands
have grown rapidly; they therefore communicate more
extensively about their experiences as consumers
affecting the images of these companies and brands.
Introduction
People tend to believe what they hear through their
social networks and peersi not merely what they are
told by the companies.
This study conducted for examined the Indonesia
millenial perspective on Facebook usage as an
advertising media to influence their purchasing
intention.
Literature Review
Social Media
The popularity of social media sites has also spread to
companies and firms as part of their strategies.
According to Social Media Marketing Industry Report, 64%
of marketers spend five hours or more per week on social
media and 39% of them spend ten hours or more weekly
(Stelzner, 2009).
These findings show that more and more companies are
becoming actively involved in social media, which also
shows the emerging of social media sites as the new
marketing/promotion platform that is also known as social
media marketing.
Millenial or Generation Y
Brosdahl and Carpenters (2011) categorization of
generations, using the following birth dates for each
cohort: the Silent Generation (1925-45), the Baby
Boomers (1946-60), Generation X (1961-81) and
Generation Y (born after 1981).
A key formative characteristic for Gen Y is early and
frequent exposure to technology, hich has advantages
and disadvantages in terms of cognitive, emotional,
and social outcomes (Immordino-Yang et al., 2012).
 E-Brand Equity
The concept of brand equity is important when
addressing branding strategy. Brand equity involves
the assets, liabilities and value added to a brand
involving the product or services name and
accompanying logos and symbols, which help it to be
differentiated from all other competitors (Aaker, 1991;
Kamakura & Russel, 1993; Keller, 2008). Keller (1998,
2008) suggests that brand equity is comprised of
brand awareness, brand image, perceived brand
quality, and brand loyalty.
E-WOM
WOM is defined as the communication between
consumers about a product, service, or a company in
which the sources are considered independent of
commercial influence (Bass, 1969; Brown, Broderick
and Lee, 2007; Litvin, 2008).
Electronic-WOM (eWOM) is a new communication
phenomenon which, as WOM, has a powerful force in
persuasion of digital consumers and which require
further investigation (Sen and Lerman, 2007).
eWOM is a less personal but more ubiquitous form of
WOM which has spread recently with the advent of
social media and extensive Internet use.
Customer Trust
Lee et al. (2006) define trust in terms of two parties the
trustee and the truster. Their definition incorporates
multiple dimensions appropriate to the current study:
Trust embodies the trusters confidence in the trustees
actions.
Trust is an expectation that the trustees promise can be relied
on and that the trustee will act in the spirit of goodwill.
Trust is based on previous actions.
Patton and Josang (2004) follow a common belief that trust
is a behavior built over time; thus, the vendor must use
means to gradually build the customers trust.
 The level of security and risk plays a much stronger
role in comparison with the situation for other e-
vendors, because lack consumer confidence in
benevolence, integrity, and competence (McKnight et
al., 2002), thereby reducing consumer trust.
Hypotheses
1.a. eBrand Equity has a positive and significant
association with customer trust
1.b. eBrand Equity has a positive and significant
association with customer purchasing intention
2.a. eWOM has a positive and significant association
with customer trust
2.b. eWOM has a positive and significant association
with customer purchasing intention
3. Trust has a positive and significant association with
customer purchasing intention
Research Method
This study was conducted over two months.
The object of this study is the youth who used
Facebook.
The purposes of this study are:
1. To analyze the effect of electronic brand equity on
customer trust and customer purchasing intention.
2. To analyze the effect of electronic word-of-mouth to
customer trust and customer purchasing intention.
3. To analyze the effect of customer trust on customer
purchasing intention.
 The population of study was the youth who used
facebook in Indonesia.
The sample was taken from 150 people with
convenience sampling technique. It is a non-
probability sampling technique where subjects are
selected because of their convenient accessibility and
proximity to the researcher.
To analyze the hypothesis of this study, the technique
of analysis which have been used in this study is the
path analysis.
To process the data we use SPSS 21. Data was collected
by using questionnaire.
 Respondents were collected to respon the statement
by filled the questionnaire about the elctronic brand
equity, electronic word-of-mouth, customer trust and
customer purchasing intention.
The data of the customer was obtained from external
sources; the Facebook.
Respondent Description
Based on the data computate, them are categorized
into two age groups, 18 25 years are 54 (36%), and 26-
35 years are 96 (64%).
Furthermore, they consist of 64 (42.67%) male and 86
(57.33%) female and come from Java and Sumatra, 43
(28.67%), Bali, Kalimantan and Nusa Tenggara 21
(14%), Sulawesi 52 (34.67%) and Maluku and Papua,
34 (22.67%).
They work in the private sector 51 (34%), civil servant
52 (34.67%) and as students 47 (31.33%).
Result and Discussion
Tabel 1. Result of 1st Equation of Regression
Standardized
Variable T Sig.
Coefficients Beta
(Constant) 7.540 .000
eBrand Equity .523 5.434 .004
eWord-of-Mouth .561 6.489 .000
R = .677a
R Square = .458
Adjusted R Square = .456
Std. Error of the Estimate = .12463
Result and Discussion
Tabel 2. Result of 2nd Equation of Regression
Standardized
Variable T Sig.
Coefficients Beta
(Constant) 11.653 .000
e-Brand Equity .656 5.800 .000
e-Word-of-Mouth .525 4.384 .008
Customer Trust .646 5.335 .010
R = .621a
R Square = .386
Adjusted R Square = .384
Std. Error of the Estimate = .19875
Table 3. Result of hypothesis test

Hypothesis Coefficient T-Test Sig. T-Table Decision

value Value

1.a 0.523 5.434 0.004 2.60 Accepted

1.B 0.656 5.800 0.000 2.60 Accepted
2.A 0.561 6.489 0.000 2.60 Accepted
2.B 0.525 4.384 0.008 2.60 Accepted
3 0.646 5.335 0.010 2.60 Accepted
e-Brand
Equity
0.656
0.523

Customer 0.646 Purchasing

Trust Decision
0.561
0.525

e-Word-
of-Mouth

Figure 1. Path diagram of this study

Discussion
These results indicate the association of e-brand equity and
e-word-of-mouth to customer purchasing intention by
0.458 or 45.8% and the association of e-brand equity, e-
word-of-mouth, and customer trust to customer
purchasing intention by 0.621 or 62.1%.
In addition, partialy e-brand equity has a positive
association and significant to customer trust and on
customer purchasing intention. Furthermore, e-word-of-
mouth has a positive and significant association on
customer trust, and to customer purchasing intention.
Similarly, customer trust has a positive association and
significant to customer purchasing intention.
Discussion
These results indicate that the Indonesias millenial trust can be
influenced by e-brand equity and e-word-of-mouth. Either their
purchasing intention can be influenced by e-brand equity, e-
word-of-mouth and their trust.
These result are cosistent with studies conducted by Hansen et
al. (2011), Hennig-Thurau et al. (2004) and Sen and Lerman
(2007), that eBrand Equity and eWord-of-Mouth are the
determinats of customer trust.
Then the customer trust was a one of determinants of
purchasing behavior (Patton and Josang, 2004).
Based on this study result, we suggestion for the online
marketers to build a strong brand equity and it can be facilitate
the e-word-of-mouth and trust of the millenial, so they will
intent to make a purchasing.
Conclusions
The purpose of this study was analyzed the effect of e-
Brand Equity and e-WOM on trust and purchase intention
of the Indonesias millenial.
The result of this study show that the independent
variables, i.e e-Brand Equity and e-WOM has a positive and
significant association with the Indonesias millenial Trust
and Purchasing Intention.
The result indicate that in order to provide the Indonesias
millenial trust and purchasing intention, the social media
marketers should continue to provide their brand equities.
The millenial would like to share about the brand with e-
WOM and that can develop their trust on that brand and
intent to purchase.
Thank You