The Impact of Digitalization of Marketing and Consumer Purchasing Power as an Intervening Towards Intention to Buy Product in Store-Based Retail Store
Bob Foster1, Fitriani Retya2
1Bob Foster, Business and Informatic University, Indonesia.
2Fitriani Retya, Widyatama University, Indonesia.
Manuscript received on 02 August 2019 | Revised Manuscript received on 25 August 2019 | Manuscript Published on 05 September 2019 | PP: 120-125 | Volume-8 Issue-2S7 July 2019 | Retrieval Number: B10270782S719/2019©BEIESP | DOI: 10.35940/ijrte.B1027.0782S719
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The phenomenon of declining purchasing power in Indonesia consumers and the rise of digital marketing make new assumption that the closing of retail outlets in several big cities in Indonesia is caused by the rise of online marketing and the declining of purchasing power. The debate of economists and related government bureaus on whether the purchasing power and digital marketing is causing the shift of consumers shopping online so that retail outlets close or other causes. The existing data needs to be investigated more deeply whether this phenomenon is due to a decrease in income or trend of online shopping cause or both variables. This research aims to know the impact of digitalization in marketing toward intention to buy with consumer purchasing power as intervening, hundred sample taken in store-retail consumer in Bandung city, Indonesia. This research uses Partial Least Square (PLS) for data analysis, explanatory method and simple random sampling. The results of data testing show that digital marketing does not give a direct impact on intention to buy and purchasing power plays a significant role as an intervening variable.
Keywords: Costumer, Digital Marketing, Purchasing Power, Intention to Buy, Retail Store.
Scope of the Article: Marketing and Social Sciences