THE INFLUENCE OF ADVERTISING, SERVICE QUALITY AND DISCOUNTS ON BRAND IMAGE AND CUSTOMER SATISFACTION

Abstract

In the era of online shopping sites, the increase in internet usage has significantly contributed positively to the development of the e-commerce industry in Indonesia. Shopee is one of the famous e-commerce in Indonesia because of its security and convenience in online shopping. The purpose of this study was to determine the effect of advertising, service quality and discounts on Shopee's brand image and customer satisfaction. This study uses a purposive sampling technique, namely a sampling technique based on certain considerations, with a sample size of 200 respondents. Data analysis was carried out using Structural Equation Modeling (SEM) with the help of Smart PLS software to test whether or not there is an influence of independent variables on latent variables directly or indirectly. This study focuses on variables in the service marketing mix: advertising, service quality, and discounts. The results showed that advertising and service quality did not have a significant effect on brand image, while discounts had a significant effect. In addition, advertising, service quality and discounts have a positive and significant effect on customer satisfaction.

Keywords: Advertising, Brand Image, Customer Satisfaction, Discount, Service Quality