The effect of Price Perceptions Social Media Marketing Activities on Purchase Decisions and Customer Satisfaction: Conceptual Framework and Empirical Evaluation
Muh. Harun Ar - Rasyid (a*), Suhardi M. Anwar (b), Jumawan Jasman (c), Rahmad Solling Hamid (d)

a, b, c, d) Department of Management, Faculty of Economics and Business, Universitas Muhammadiyah Palopo, 91921, Indonesia *mharun[at]student.umpalopo.ac.id

Abstract

This study aims to examine the relationship of, price perceptions, social media marketing activities on purchasing decisions and consumer satisfaction. This quantitative research used millennial generation as the population. The data were collected from 150 respondents using a snowball sampling technique by consideration minima sample for Structure Equation Model (SEM) that 100 samples and error rate about 5 %. After going through the validity and reliability testing, the data were analyzed using a Partial Least Square Structural Equation Model (PLS-SEM). Based on the results of the study that price perceptions have a direct and significant effect on purchasing decisions. For social media marketing activity variables, it also has a direct and significant effect on purchasing decisions. Furthermore, purchasing decisions have a significant effect on consumer satisfaction. This study has shown a more comprehensive model of the relationship between price perception, social media marketing activities, buying decision and user satisfaction.

Keywords: Perceived Price, Social Media Marketing Activites, Purchase Decision, Consumer Satisfaction

Topic: Management