The Influence of Social Media Marketing, Electronic Word of Mouth (E-Wom), and Customer Trust on the Purchase Decisions of MSME Products in Malioboro, Yogyakarta

Abstract

The development of digital technology has transformed consumer behavior in accessing information and making purchase decisions. Social media no longer functions solely as a communication platform but has also become an effective marketing channel for Micro, Small, and Medium Enterprises (MSMEs). In addition, Electronic Word of Mouth (E-WOM) and customer trust have become important factors influencing consumer purchase decisions. The Malioboro area, as a tourism and trade center in Yogyakarta, provides a relevant setting for examining consumer behavior within the context of digital marketing. This study aimed to analyze the effects of social media marketing, E-WOM, and customer trust on purchase decisions for MSME products in Malioboro, Yogyakarta.This study employed a quantitative approach using a survey method. The research sample consisted of 200 respondents who had purchased MSME products in the Malioboro area. The sampling technique used was purposive sampling. Data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The results showed that social media marketing had a positive and significant effect on purchase decisions, E-WOM had a positive and significant effect on purchase decisions, and customer trust had a positive and significant effect on purchase decisions. Among the examined variables, customer trust demonstrated the strongest influence on purchase decisions. These findings provide practical implications for MSME actors to strengthen digital marketing strategies and enhance consumer trust to improve business competitiveness.