Open Journal Systems

Tokopedia By Me: Analysis of Marketing by Influencers and its effects on Customer Purchase Intentions

Vinci Aisyah, Marc Porter, Ira Fachira

Abstract


Write an opening paragraph of about 250 words that presents the background of the decision making situation, the critical decision to be made, the decision maker and his/her position in the company, and the specific time window given to the decision maker for making his/her decision. The online marketplace is the 'exchanges of information and commercial transactions between consumers, businesses and governments completed through different forms of online presence such as search engines, social networks, comparison sites and destination sites' [1]. In Indonesia, the growth of the online marketplace is significant and offers possibility for expansion [2]. One of Indonesia’s leading and highly potential online marketplace is Tokopedia [3]. Tokopedia is one of the well-known marketplaces in Indonesia. The company, founded by William Tanuwijaya and Leontinus Alpha Edison, was created in 2009 to bridge the gap between businesses and customers [4]. In the third quartile for the 2018 Indonesian e-commerce map, Tokopedia is able to attract 153,639,700 visitors per month, which enables the marketplace to be at the top position than its competitors [2]. In the first quartile for 2019, this number grew into 168,000,000 visitors per month [5]. The By Me campaign was launched by Tokopedia in the early half of 2019. This campaign is a marketing strategy performed in order to increase sales in Tokopedia. Inside the campaign, Tokopedia teams up with powerful social media initiators known as influencers as well as public figures known to Indonesians. Television broadcasts and social media posts are used by influencers and public figures in order for customers to be attracted to purchase items through Tokopedia. The content of the television broadcasts and social media posts includes the daily item the influencer uses, which creates a trust for customers to purchase good products used by people they look up to. The daily item that is advertised would be products sold by Tokopedia merchants. By the date of the campaign’s initial release, Tokopedia has already have partnership with thirteen main influencers, including; Boy William, Arief Muhammad, Atta Halilintar, Jess No Limit, Jerome Polin, Tasya Farasya, Rachel Vennya, Ria Ricis, Salshabilla Adriani, Titan Tyra, Sandra Dewi, Cinta Laura and Jessica Iskandar. Other than the thirteen main influencers and public figures involved, Tokopedia also encourages other influencers and social media users to recommend products on their social media platforms, in exchange of a commission once the product has been purchased [6]. Through online media, the use of influencers is not uncommon. The appearance of Selebgram on Instagram to promote visual content and the spread of word on Twitter by public figures has been done before. In addition, the relation between a certain company and an online celebrity and public figure is not uncommon. However, this is the first time a marketplace is involved in the use of many influencers for active prolonged social media advertising where they would usually be more active in television advertising with a public figure [2] [3]


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