The Impact of Digitalization of Marketing and Consumer Purchasing Power as an Intervening Towards Intention to Buy Product in Store-Based Retail Store

Abstract

The phenomenon of declining purchasing power in Indonesia consumers and the rise of digital marketing make new assumption that the closing of retail outlets in several big cities in Indonesia is caused by the rise of online marketing and the declining of purchasing power. The debate of economists and related government bureaus on whether the purchasing power and digital marketing is causing the shift of consumers shopping online so that retail outlets close or other causes. The existing data needs to be investigated more deeply whether this phenomenon is due to a decrease in income or trend of online shopping cause or both variables. This research aims to know the impact of digitalization in marketing toward intention to buy with consumer purchasing power as intervening, hundred sample taken in store-retail consumer in Bandung city, Indonesia. This research uses Partial Least Square (PLS) for data analysis, explanatory method and simple random sampling. The results of data testing show that digital marketing does not give a direct impact on intention to buy and purchasing power plays a significant role as an intervening variable.