The Effectiveness of Social Media and Online Marketing in

Promoting Indonesian Tourism:

Case of Wonderful Indonesia Brand

Tisia Priskila

Management, University of Bunda Mulia, Lodan Raya 2, Jakarta, Indonesia

Keywords: Social Media, Online, Awareness, Intention, Marketing.

Abstract: Tourism is an important sector in Indonesia. In promoting destinations, the role of social media increases

day by day. Promotions through digital media such as websites and social media are believed to provide

convenience for all tourists who want to know and explore Indonesia. The research objectives are to analyze

the utilization of social media such as Youtube and Instagram and online marketing such as website as a

means of promotion that build customer awareness and leads to their intention to choose Indonesian tourism

destination. The analysis method used is Partial Least Square (PLS) with sample of 100 respondents.

Research results showed that social media marketing and online marketing increase customer awareness,

customer awareness increases customer intention, and social media marketing and online marketing

increases customer intention directly and indirectly through customer awareness.

1 INTRODUCTION

1.1 Background of Research

Tourism is an important sector in Indonesia.

Indonesia is known as a country with the largest

archipelago that has many islands as attractive and

beautiful tourist destinations. No wonder, there are

many foreign tourists who are interested to come to

Indonesia to enjoy the natural beauty of Indonesia,

tasting the local culinary, and learning diverse art

and culture of Indonesia.

In 2018, many Indonesian tourists are on

vacation abroad (Adiakurnia, 2018). The increase in

the number of passport requests is considered to be

related to the reasons for Indonesian tourists

traveling abroad. According to the Directorate

General of Immigration, Agung Sampurno, one of

the factors was the rise of cheap tickets and cheap

transportation abroad. Based on the pre-survey

results conducted by researcher, 68% of respondents

choose to travel abroad compared to domestic and

respondents who had traveled abroad choose to

travel abroad again. The only Indonesian

destinations they knew were around Bali, Lombok,

and Raja Ampat. They do not know the best access

to domestic tourism.

In promoting destinations, the role of social

media increases day by day. Today, more travelers

use online media to learn about travel destinations,

service providers, and pricing options to inform and

build their purchase intention. The social media is

the best tool for raising awareness about tourism

destination. It is cheap and effective. However, it

requires time, planning, good strategy and

innovation (Boz and Unal, 2011).

Wonderful Indonesia is an Indonesian tourism

branding launched by the Indonesian Ministry of

Tourism in the hope that tourists will travel to these

tourist locations so that the economy in the tourist

areas visited can continue to increase. Promotions

through digital media such as websites

(www.indonesia.travel/gb) and social media through

Youtube (indonesia.travel) and Instagram

(@indtravel) are believed to provide convenience for

all tourists who want to know and explore Indonesia.

Therefore, this research aims to know how

effective social media and online marketing is used

by Wonderful Indonesia brand to promote

Indonesian tourism.

1.2 Problems Identification

An increase in the number of domestic tourists who

travel abroad in 2018 indicates that it still lacks

Priskila, T.

The Effectiveness of Social Media and Online Marketing in Promoting Indonesian Tourism: Case of Wonderful Indonesia Brand.

DOI: 10.5220/0008490401910196

In Proceedings of the 7th International Conference on Entrepreneurship and Business Management (ICEBM Untar 2018), pages 191-196

ISBN: 978-989-758-363-6

191

Indonesian travellers’ intention to travel

domestically. This may be caused by the lack of

promotions of domestic tourism destinations and

lack of information of the best access to travel

domestically.

1.3 Objectives of Research

The goal of this research is to analyze the utilization

of social media such as Youtube and Instagram and

online marketing such as website as a means of

promotion that build customer awareness and lead to

their intention to choose Indonesian tourism

destination.

2 LITERATURE REVIEW

2.1 Applied Theory

Chandio et al., (2015) studied the impact of social

media marketing on customer purchase intention.

His findings revealed that customer purchase

intention was influenced by social media marketing.

Barlakrisnan et al., (2014) studied the impact of

social media marketing toward purchase intention

and brand loyalty among generation Y. The result

indicated that social media platforms are effective in

promoting brand and increasing customer purchase

intention.

Shahid et al., (2017) studied the impact of brand

awareness on the consumers’ purchase intention.

The result indicated that consumers will prefer to

buy the brand they know well (after being well

aware of what, where, and how to buy).

Gabriel and Kolapo (2015) studied the impact of

online marketing and consumer purchase behavior.

The result indicated that there is a significant

relationship between online marketing and consumer

purchase behavior.

2.2 Social Media Marketing

Social media is independent and commercial online

communities where people congregate, socialize,

and exchange views and information (Kotler and

Armstrong, 2016).

Marketers can engage in social media in two

ways: they can use existing social media or they can

set up their own. They can cost-effectively reinforce

other communication activities. (Kotler and Keller,

2016)

2.3 Online Marketing

Online marketing refers to marketing via the Internet

using Web sites, online advertising and promotions,

e-mail marketing, online video, and blogs (Kotler

and Armstrong, 2016).

When it comes to online marketing strategies,

website development plays a crucial role in

company’s ability to reach its target audience. The

reason is simple: potential customers look for

information, products, and services that company

provides on its website. A website provides an

online presence that allows customers to find out

more about the company, its services, and the type

of product that it sell (Online Marketing, 2013).

2.4 Customer Awareness

Customer awareness refers to a buyer’s knowledge

of a particular product or company, allows the buyer

to get the most from what he buys. Consumers can

make well informed choices about what to buy and

how much to spend when they have product or

service information (Thomas, 2018).

2.5 Customer Intention

Customer intention is a driving factor in making

product purchasing decisions. Customer purchase

intention is customer behavior where customers

have a desire to buy and consume the products.

Customers’ purchase intention represents their desire

to buy products from a particular shop. Sometimes

purchase intention is used to describe customer

loyalty (Rana et al., 2015).

2.6 Research Framework

Figure 1: Research Framework.

2.7 Hypothesis

The hypothesis in this study are:

1. Social media marketing increases customer

awareness.

2. Online media marketing increases customer

awareness

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3. Customer awareness increases customer

intention.

4. Social media marketing directly increases

customer intention

5. Online media marketing directly increases

customer intention.

6. Social media marketing indirectly increases

customer intention through customer awareness

as an intervening variable.

7. Online marketing indirectly increases customer

intention through customer awareness as an

intervening variable.

3 RESEARCH METHODOLOGY

3.1 Type and Source of Research Data

This research used a descriptive research with

quantitative approach. The sources of the data are

primary data (questionnaire) and secondary data

(journal, literature study, and internet research).

3.2 Population and Sample

The population of this research is Indonesian people

who have heard about Wonderful Indonesia brand

but have not explore it further. The sample in this

study was 100 respondents.

3.3 Analysis Method

Analysis method used Partial Least Square -

Structural Equation Modeling (PLS-SEM). The

assessment of outer model (validity and reliability)

of the reflective variables is determined as follows:

Table 1: Rule of Thumbs.

Convergent

Validity

Average

Variance

Extracted

(AVE)

AVE ≥ 0.50

Discriminant

Validity

Cross-Loading

Facto

Loading Indicators >

Cross Loading

Indicator

Reliability

Facto

Loading factor value ≥

0.70

Internal

Consistency

Reliability

Composite

Reliability

Composite Reliability

≥ 0.70

The assessment of inner model is done using the

bootstrap method (non-parametric). The score of

path coefficient shown by the t-statistic value must

be greater than the two way test t-table value (>1,98)

with α = 5%.

4 RESULT AND DISCUSSION

4.1 Outer Model

Construct validity test is done using convergent

validity and discriminant validity. Convergent

validity assessment is done by looking the value of

AVE (AVE ≥ 0,50 is valid).

Table 2: Average Variance Extracted.

Variable AVE

Social Media Marketing 0.574

Online Marketing 0.616

Customer Awareness 0.566

Customer Intention 0.679

Source: PLS Result

Discriminant validity test is done by cross

loading factor. If the loading indicators value is

bigger than cross loading then it is valid.

Table 3: Cross Loading Factors.

X1 X2 Z Y

0.827 0.599 0.823 0.778

0.839 0.809 0.776 0.784

0.868 0.662 0.816 0.793

0.662 0.832 0.673 0.712

0.632 0.891 0.724 0.780

0.839 0.910 0.776 0.874

0.809 0.828 0.813 0.789

0.827 0.599 0.832 0.778

0.632 0.691 0.724 0.680

0.686 0.662 0.816 0.793

0.809 0.828 0.913 0.889

0.627 0.599 0.732 0.778

0.632 0.681 0.724 0.780

0.839 0.809 0.776 0.874

0.668 0.662 0.716 0.793

0.809 0.828 0.813 0.889

Sources: PLS Result

Construct reliability test is done using internal-

consistency reliability and indicator reliability.

Internal-consistency reliability is done using

composite reliability method. It is reliable if the

composite reliability value ≥ 0,70 (Hair et al., 2014).

Table 4: Composite Reliability.

Variabel Composite Reliability

Social Media Marketing 0.837

Online Marketing 0.881

Customer Awareness 0.861

Customer Intention 0.913

Source: PLS Result

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Indicator reliability is done using loading factor.

It is reliable if the loading factor value ≥ 0.70 (Hair

et al., 2014)

Tabel 5: Loading Factor.

X1 X2 Z Y

0.827

0.839

0.868

0.832

0.891

0.910

0.828

0.832

0.724

0.816

0.913

0.778

0.780

0.874

0.793

0.889

Source: PLS Result

4.2 Inner Model

Hypothesis testing is done by looking at the path

coefficient value that shows the level of

significance. The score of path coefficient or inner

model shown by the t-statistic value must be greater

than the two way test t-table value (>1.98) with α =

5%.

First hypothesis has a positive path coefficient

value of 0.682, t-statistics value of 8.936 (> 1.98)

and significance value of 0.000 (< 0.05). Therefore,

H1 is accepted.

Second hypothesis has a positive path coefficient

value of 0.321, t-statistics value of 4.214 (> 1.98)

and significance value of 0.000 (< 0.05). Therefore,

H2 is accepted.

Third hypothesis has a positive path coefficient

value of 0.498, t-statistics value of 9,208 (> 1.98)

and significance value of 0.000 (< 0.05). Therefore,

H3 is accepted.

Fourth hypothesis has a positive path coefficient

value of 0.193, t-statistics value of 3.209 (> 1.98)

and significance value of 0.001 (< 0.05). Therefore,

H4 is accepted.

Fifth hypothesis has a positive path coefficient

value of 0.330, t-statistics value of 8.338 (> 1.98)

and significance value of 0.000 (< 0.05). Therefore,

H5 is accepted.

Sixth hypothesis has a positive path coefficient

value of 0.339, t-statistics value of 7.248 (> 1.98)

and significance value of 0.000 (< 0.05). Therefore,

H6 is accepted.

Seventh hypothesis has a positive path

coefficient value of 0.160, t-statistics value of 3.760

(> 1.98) and significance value of 0.000 (< 0.05).

Therefore, H7 is accepted.

Path coefficient is shown in Table 6.

Table 6: Path Coefficient:

Path

Coefficient

t-statistics

> 1,98

Sig.

< 0,05

Social Media

Marketing  Customer

Awareness

0.682 8.936 0.000

Online Marketing 

Customer Awareness

0.321 4.214 0.000

Customer Awareness

 Customer Intention

0.498 9.208 0.000

Social Media

Marketing  Customer

Intention

0.193 3.298 0.001

Online Marketing 

Customer Intention

0.330 8.279 0.000

Social Media

Marketing  Customer

Awareness 

Customer Intention

0.339 6.511 0.000

Online Marketing 

Customer Awareness

 Customer Intention

0.160 3.840 0.000

Source: PLS Result

4.3 Mediation Effect Test

Mediation effect test is done by comparing the

indirect effect value to total effect value. The result

is summarized in Table 7 and Table 8.

Table 7: Mediation Effect Test.

Effect

Indirect

Effect

Total

Effect

VAF

Type of

Mediation

SMCI* 0.339 0.532 63.72%

Partial

Mediator

Sources: PLS Result

*SM = Social Media Marketing

*CI = Customer Intention

Table 7 showed that customer awareness become

a partial mediator for the impact of social media

marketing to customer intention with VAF score of

63.72%.

Table 8: Mediation Effect Test.

Effect

Indirect

Effect

Total

Effect

VAF

Type of

Mediation

OMCI* 0,160 0,489 32.71%

Partial

Mediator

Sources: PLS Result

*OM = Online Marketing

*CI = Customer Intention

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Table 8 showed that customer awareness become

a partial mediator for the impact of online marketing

to customer intention with VAF score of 32.71%.

4.4 Discussion

4.4.1 Impact of Social Media Marketing to

Customer Awareness

Research result showed that social media marketing

increases customer awareness. It means the more

vigorous social media marketing carried out by

Wonderful Indonesia, the more aware Indonesian

people on tourism destination in Indonesia.

Descriptive statistical analysis result show that the

average respondents feel the video displayed by

Wonderful Indonesia on social media has shown a

variety of beauty of Indonesian tourism, provides

recommendations for the best tourist attractions,

complete descriptions of the experience of traveling

in Indonesia, and provides information about

Indonesian tourist attractions which they did not

know, thus opening their awareness that there are

still many tourist attractions in Indonesia as

attractive as abroad that have not been explored.

4.4.2 Impact of Online Marketing to

Customer Awareness

Research results showed that online marketing

increases customer awareness. It means, the more

incessant online marketing carried out by Wonderful

Indonesia, the more aware the Indonesian people on

tourism destination in Indonesia. Descriptive

statistical analysis result shows that the average

respondents feel Wonderful Indonesia website which

can open their awareness to Indonesia’s beautiful

and unexplored tourism destinations.

4.4.3 Impact of Customer Awareness to

Customer Intention

Research result showed that customer awareness

increases customer intention. It means, the more

aware the respondents with many beautiful tourist

destinations in Indonesia with many tour promotion

packages provided by Wonderful Indonesia, the

higher customer intention to choose domestic

tourism destination as a vacation spot.

4.4.4 Impact of Social Media Marketing to

Customer Intention Directly

Research result showed that social media marketing

directly increases customer intention. This means

that the more intense social media marketing carried

out by Wonderful Indonesia, the higher customer

intention to choose Indonesia as a tourism

destination. As we know, society likes the

audiovisual. Through photography and videos

posted on social media and supported by captions

make customers choose Indonesia as their next

destination.

4.4.5 Impact of Online Marketing To

Customer Intention Directly

Research result showed that online marketing

directly increases customer intention. This means

that the more intense online marketing conducted by

Wonderful Indonesia through website, the higher

customer intention to choose Indonesia as a holiday

destination. The interesting content presented by

Wonderful Indonesia and the complete information

available on the destination places makes customers

want to choose Indonesia as the primary destination

choice.

4.4.6 Impact of Social Media Marketing to

Customer Intention Indirectly

Research result showed that social media marketing

indirectly increases customer intention through

customer awareness. Customer awareness becomes a

partial mediation where social media marketing still

has a significant impact on customer intention even

though there is no customer awareness as a

mediating variable. But through customer

awareness, the total impact of social media

marketing on customer intention is greater. It can be

seen from the promotion conducted by Wonderful

Indonesia through social media, and it will open

customer awareness that there are still many tourist

attractions in Indonesia that are good and not yet

explored, so it has an impact on the interest of

customers who are interested in choosing Indonesia

as a tourism destination.

4.4.7 Impact of Online Marketing to

Customer Intention Indirectly

Research result showed that online marketing

indirectly increases customer intention through

customer awareness. Customer awareness becomes a

partial mediation where online marketing still has a

significant impact on customer intention even

though there is no customer awareness as a

mediating variable. However, through customer

awareness, the total impact of online marketing on

customer intention is greater. It can be seen from

The Effectiveness of Social Media and Online Marketing in Promoting Indonesian Tourism: Case of Wonderful Indonesia Brand

195

promotion, information, and tour packages available

on Wonderful Indonesia website, and it will open

consumer awareness about the number of

destinations in Indonesia that have not been visited

and make customers interested and choose to travel

in Indonesia.

5 CONCLUSIONS

The results of the study can be summarized as

follows:

1. Social media marketing increases customer

awareness.

2. Online media marketing increases customer

awareness

3. Customer awareness increases customer

intention.

4. Social media marketing directly increases

customer intention

5. Online media marketing directly increases

customer intention.

6. Social media marketing indirectly increases

customer intention through customer awareness

as intervening variable.

7. Online marketing indirectly increases customer

intention through customer awareness as

intervening variable.

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