SOCIAL MEDIA MARKETING AND TRUST IN DIGITAL PLATFORMS AS DETERMINANTS OF PURCHASE DECISIONS: THE MEDIATING EFFECT OF CUSTOMER ENGAGEMENT

Abstract

The rapid development of digital technology and the increasing use of online platforms in the culinary MSME sector require businesses to implement effective marketing strategies to influence consumer purchasing decisions. However, the utilization of social media marketing, consumer trust, and customer engagement has not been fully optimized. Therefore, this study aims to analyze the effect of social media marketing and trust on purchase decisions, both directly and indirectly through customer engagement as an intervening variable. This research uses a quantitative approach with a sample of respondents who have experience purchasing culinary products through digital platforms in Medan City. Data were collected through questionnaires and analyzed using the SEM-PLS (SmartPLS) method. The results show that social media marketing has a positive and significant effect on purchase decisions and customer engagement. Trust has a positive and significant effect on customer engagement but does not have a significant effect on purchase decisions. Customer engagement has a positive and significant effect on purchase decisions. Furthermore, customer engagement is not able to mediate the relationship between social media marketing and purchase decisions, but it is able to mediate the relationship between trust and purchase decisions. The model demonstrates strong predictive power, indicating that the variables used are able to explain consumer behavior in digital purchasing decisions.