Academy of Strategic Management Journal Volume 20, Special Issue 2, 2021

DIGITAL MARKETING: IMPLEMENTATION OF

DIGITAL ADVERTISING PREFERENCE TO SUPPORT
BRAND AWARENESS

Doni Purnama Alamsyah, Bina Nusantara University

Indriana, Bina Nusantara University
Chyntia Ika Ratnapuri, Bina Nusantara University
Rudy Aryanto, Bina Nusantara University
Norfaridatul Akmaliah Othman Universiti Teknikal Malaysia Melaka
ABSTRACT

Management information system is important to be part of company operation. Its

implementation through digital marketing in marketing side. Based on digital marketing issue,
so this study aims to examine the position of digital advertising preference as the
implementation of digital marketing on company. The study is conducted by analyzing consumer
needs and consumer brand awareness. It is conducted by survey to 205 consumers who have
experience in accepting of digital advertising. Path analysis is conducted by using SmartPLS to
examine the research hypothesis. The research findings are stated that digital advertising
preference can be influenced by consumer needs. Furthermore, the implementation of digital
advertising preference has positive impact to consumer brand awareness. Information of
research findings is useful for company, before the implementation of digital marketing reviews
the position of digital advertising preference that can stimulate of consumer brand awareness.

Keywords- Digital Advertising Preference, Consumer Needs, Brand Awareness

INTRODUCTION

Management Information System (MIS) has become an important concern in the 4.0 era;
integration systems and the decision support systems produced by MIS are the superior
application of entrepreneurs in relation to business competition (Salloum & Ajaka, 2013). The
implementation of MIS provides a stimulus for business performance achievements (Govoni,
2012), because information needed to make business decisions is obtained more quickly.
Through MIS, it makes it easier for companies to plan to evaluate all of company’s lines, making
it easier to coordinate (Fink & Ploder, 2009). In addition, MIS is believed to be able to improve
the quality of human resources in company because of the support of system integration from all
units (Kurniawan, 2018). There are many systems in companies used by each unit in order to
complete the operations and to achieve the optimal performance. Through MIS, system
integration is easier, so that all of procedures can be controlled by regarding to company’s goals
(Potgieter, 2008; Salloum & Ajaka, 2013). MIS provides informational services; in marketing
area, there is information needed due to products, prices, strategies, and consumer behavior
(Govoni, 2012). The purpose of MIS is surely to provide the supporting information which is
useful for decision making (Fink & Ploder, 2009).
Digital marketing is part of the MIS implementation (Smith, 2019), which is used by
marketing department to enter the target market. Digital marketing is used by marketers as an
effort to market products or services through the electronic media online (Kull & Heath, 2016). It
is believed to be part of marketing in the 4.0 era, because all of marketing information is carried
out in an integrated manner (Pamungkas et al., 2017). One of digital marketing implementations
is the use of advertising media through a digital systems known as digital advertising (Yang et

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al., 2018). Digital advertising is a marketing communication effort made by marketers in

promoting products or service agents through digital channels (Yang et al., 2016). There are
many advertising media; digitally means using a media channel, is internet. Advertising is carried
out by companies with prioritizing messages, it is intended to increase the product value
delivered to public (Doni Purnama Alamsyah et al., 2020; Y. Yang et al., 2018). Through
advertising, it is expected to be able to increase the value of product or service, so that when
consumers need it, they will make a selection of products assessed (Jayaram et al., 2015; Sab,
2011).
Digital advertising becomes more appropriate strategy when it is associated with market
share coverage (Yang et al., 2018). Because the media used, is internet, can be accessed by
consumers widely, without regional boundaries (Sab, 2011). It means that the broad reach of
digital advertising allows products and service information to be accepted by many consumers.
The importance of digital advertising continues to be developed and evaluated so that
information from digital advertising is more easily accepted by consumers, and the goal of
advertising is achieved, namely the increasing of product value (Rahim et al., 2012; Yang et al.,
2018). Observing the phenomenon of digital advertising, it is important to notice to consumers
preferences for digital advertising. Considering that the impact of digital advertising assessed by
consumers on brand awareness (Alamsyah et al., 2018; Rambe & Jafeta, 2017). Consumers’
concern starts from what they judge; it is related to online advertising (Jayaram et al., 2015).
Besides that, company’s brand will be involved in it, because consumers are often associated
with the creator’s brand in evaluating products. The power of brand becomes the support of
product value or vice versa, in which products are considered to have value an impact to
company’s brand (Kotler, 2000). It seems clearly that the implementation of digital advertising
has an influence to brand awareness which is assessed by consumers, and it is based on their
preferences.
Regarding to consumer behavior, it is necessary to know consumers needs (Valaskova et
al., 2015). In relation to the implementation of digital advertising, all of information are
submitted online, it can be appropriate and not. Consumers needs are always different for each
individual, but generally they have levels ranging from the basic of consumers need until to self-
actualization needs which is not all consumers need (Bolton & Mattila, 2015; Sawitri & Febrian,
2018). The implementation of digital advertising as an impact to consumers needs (Jayaram et
al., 2015; Smith, 2019), because consumers also need information that is related to products to be
selected based on their preferences. Consumers needs for faster and instant information is one of
the causes of the emergence of digital advertising (Rambe & Jafeta, 2017). Because it is easy to
access and search for consumers anytime and anywhere.
Based on the problem’s phenomenon, it is related to the implementation of digital
marketing and consumer behavior. So, this research focuses on examining the correlation of
digital advertising preferences, consumers needs, and brand awareness. The position of this
research is to find the right model in explaining the position of digital advertising preference in
consumer behavior. There is important information which will be found in this research, is
related to the implementation of digital advertising preferences in supporting digital marketing.

LITERATURE REVIEW

Digital Advertising Preference

Digital advertising is growing very rapidly in marketing science; it considers the impact
of digital advertising on achieving a wider market share (Jayaram et al., 2015). In principle, it
controls the internet channel as the main media for advertising products and services (Smith,
2019). It is accepted by consumers through electronic media, such as computers and mobile
devices (Yang et al., 2018). There are several platforms which contained websites and social
media (Yang et al., 2016). The development of electronic media, obviously, it affects the content
of digital advertising received by consumers (Kim et al., 2013) so that it raises consumers

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preferences for the expected digital advertising. Consumers preference is a tendency for
consumers to notice to an advertisement (Sab, 2011). Many things are considered by consumers
on an advertising, it includes to provide useful information for consumers (Smith, 2019).
Through digital advertising, there are many benefits which will be felt by consumers, such as
information on products or services that are more interactive and easier to access. However, the
various types of online advertising have different assessment viewed by consumers (Rambe &
Jafeta, 2017). In principle, advertising is the presentation of an idea or message in a particular
media stated to consumers (Yang et al., 2018). The message conveyed is persuasive, so that it has
a positive impact on the value of product delivered (Yang et al., 2016). Examining the theory of
advertising, it seems that a study of consumers’ preferences is needed, as the basis for receiving
messages that can be accepted by consumers.
Consumers preferences are theoretically defined as consumers’ interest in a product with
a statement of whether they like it or not on the results of its own evaluation (Wan & Toppinen,
2016). While advertising is stated to be a promotion created by companies to attract consumers
(Yang et al., 2018). So, it can be said that digital advertising preference is consumers’ interest in
marketing communication which is carried out by companies in promoting products or services
through digital channels. Digital advertising preferences has an impact on consumer behavior,
such as consumer’s care for products and brands (Maniu & Zaharie, 2014). In previous studies, it
is mentioned that the implementation of digital advertising by companies often increase the value
of products and brands considered by consumers (Sander et al., 2021; Yang et al., 2016), it is
known as consumer brand awareness. Digital advertising is part of a marketing strategy which
uses information technology support. There are several platforms can be used in the
implementation of digital advertising, such as social media, website, or blogs that becomes a
target of digital advertising (Maniu & Zaharie, 2014; Yang et al., 2016).
Digital advertising preference can be measured through several indicators, such as
consumers preference for search engine advertising, interactive advertising, opt-in advertising,
social media networks, and mobile advertising (Rambe & Jafeta, 2017; Sab, 2011; Solnais et al.,
2013)

Consumer Needs

Consumer needs continue to grow and change along the times (Andreassen & Lindestad,
1998). It means that companies need to understand to consumer behavior in order to know the
development of consumers’ needs, because products created by company, it needs to be in line
with consumers’ desires and needs. Every concept of a product or service that will be offered to
consumers must be appropriate with consumers’ desires (Lii & Lee, 2012). In understanding
consumers’ desires, it is necessary to notice to what is happening in the market (Grewal et al.,
1998). First is identify the market, second is understand market needs, third is distribute market
needs, and fourth is convey the advantages of product for market (Anisimova, 2016; Radman,
2005; Subawa et al., 2020). The stage of observing the market provides the opportunities for
marketers to create products which are according to consumers’ needs. In principle, companies
always prioritize three important things in building a business, such as consumer needs,
company analysis and competitor analysis (Ruvio et al., 2008). Understanding of consumers’
needs through emphatic maps by feeling what consumers want (Garriga, 2014), and this is the
main analysis in running a business. After that, we examine the internal and external companies
which are able to have an impact to business travel (Stamatović et al., 2008). It is important to
understand to consumer needs because the sustainable performance of company is depending on
how far company fulfill their consumer’s needs.
Consumers’ needs which often come first are called physiological needs, in which these
needs are the fundamental needs of consumers (Kusumawati, 2020). Thus, this need is related to
the survival of consumers, so products or services which have the nature of external needs, such
as eating and sleeping. Companies with their ideas are trying to fulfill their physiological needs
through basic products, are food and bedding, surely with more value, so that they become

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consumers’ choices. If the needs of physiological needs have been fulfilled, then another
requirement followed is safety needs. Safety needs are the need for safety and self-protection
from something which is disturbs to consumers’ comfort (Cagno et al., 2013). It is related to
security assurance, stability, protection from situations that worry consumers while driving or
other activities (Hoffmann & Gatobu, 2014). It is like physiological needs, if the safety need is
fulfilled, so consumers need something else known as love needs. Need for love is commonly
found and felt by consumers as social beings (Kusumawati, 2020), it is commonly known as
love and friendship either with family or with friends. In the world of work, this need is also a
basic need, namely acceptance as a new member in an organization (Ruvio et al., 2008).
Companies surely assume this integrity as a different need from their physiological needs
because these needs have a higher level. So that companies try to create products with the issues
or values related to affection or love.
Other consumers’ needs that appear from consumer behavior are esteem needs, is the
need to be respected (Ruvio et al., 2008). It occurs when consumers feel a friendship in the
environment or business. Several products which explain the appreciation of consumers began
to be created, with the advertisements explain the value of these products, such as vehicles or
communication devices (Kang et al., 2012). So that the existence of consumers in the
environment is more appreciated by the support of company’s products. The last thing which
consumers need is self-actualization need which is known as the highest need of consumers
(Dar, 2014). Self-activation is consumers’ dream as social beings, which they want to achieve in
order to find a pride for consumers (Natapura, 2009). In principle, consumers’ needs are
different. Through the level of previous consumers’ needs, it can be known what consumers’
need at each stage.
Understanding to consumers’ needs are very good for marketers; information from
consumers can be related to the implementation of marketing strategies, such as the
implementation of content in digital advertising (Yang et al., 2018). Moreover, the previous
studies have explained that digital advertising can be implemented well after understanding
consumer behavior through what it needs (Maniu & Zaharie, 2014). Assessing consumers’
needs returns to Maslow’s previous theory, in which it is stated that it has levels starting from
physiological need, safety need, love need, esteem need until self-actualization need (Maslow,
1943).

Consumer Brand Awareness

Brand awareness is consumers’ ability to recognize and to remember a brand by seeing

something unique from the brand identity (Sanyal & Datta, 2011). Brand identities are very
much, such as colors, logos, writing or other visualizations, and those identities give the brand an
important position in consumers’ minds (Bojei & Hoo, 2012). Brand awareness is very important
as a first step in positioning a company’s brand in the market (Doni Purnama Alamsyah et al.,
2020). There are too many brands provide complication from consumers to remember or even to
be loyal to one brand (Zhang et al., 2015). So that companies need consumer brand awareness.
Brand awareness is an ongoing process, because it is obtained by companies through consumers
for a long time (Du et al., 2007; Lii & Lee, 2012). However, having consumer brand awareness
can trigger consumers to choose our products and even to be loyal to products offered. There are
many advantages of brand awareness when it is achieved by company, like it influences to
consumers to make purchase (Yaseen & Tahira, 2011). Moreover, consumer brand awareness is
commonly used in measuring the performance of a brand in the market (Bojei & Hoo, 2012).
There are many ways to build brand awareness in order to make it easier for consumers to
recognize through slogans and advertising (Maniu & Zaharie, 2014). A persuasive message in
advertising is a strategy assumed to be effective in creating brand awareness (Yang et al., 2018).
It means that digital advertising has a good opportunity in creating consumer brand awareness.
Through consumer brand awareness, company gets a brand image (Chen & Hsieh, 2011), in
which it is a representation of the whole brand perception assumed by consumers. The

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importance of brand awareness is actually used by companies in controlling consumer behavior,

namely consumers’ intention in choosing products and it tends to be loyal to one product
(Othman & Rahman, 2014). Consumer brand awareness is assessed through several indicators,
where they are generally known from the following measurements, such as aware of brand,
identify of brand, remember of brand, know of brand, and easy to search of brand (Doni Purnama
Alamsyah & Febriani, 2020).

METHODOLOGY

This study focused on three variables, were digital advertising preference, consumer
needs, and consumer brand awareness. The study was conducted to find a research model related
to digital advertising preference. The measurement of each variable was determined based on the
previous literature review, in which for each variable was measured by five indicators. All of
research instruments were in the form of a quantitative questionnaire with predetermined entries
by using a Likert scale approach.
The research method used was through a descriptive survey, where the survey was
conducted to consumers who had received digital advertising through online media. Data of 205
consumers were collected and analyzed through path analysis, with the SmartPLS tools. The
analysis stage is carried out by testing the inner and outer models and testing the research
hypothesis. In the literature review, it had been revealed that there is a correlation between
variables, where it is stated that digital advertising preference had a positive impact to consumer
brand awareness. On the other hand, it was also said that digital advertising preference was
influenced by consumers’ needs. This research was followed up on the direct relationship
between consumers’ needs and consumer brand awareness. Based on a study of preliminary
research, so the research hypothesis was determined as follows.

H1: Consumer needs have positive impact to digital advertising preference

H2: Consumer needs have positive impact to consumer brand awareness
H3: Digital advertising preference has positive impact to consumer brand awareness

RESULT AND DISCUSSIONS

The study results begin with a discussion related to three variables, such as consumer
needs, digital advertising preference, and consumer brand awareness. Data from 205 of consumer
is obtained through questionnaires, all of data were tabulated and they are valid. Furthermore,
data is processed without information from respondents because the respondents are selected
based on their prior experience by knowing digital advertising. The results of first study by
processing data through a model which has been determined based on the research hypothesis.
The research model is shown in Figure 1, where there are three variables, namely consumer
needs, digital advertising preference, and consumer brand awareness. The research model is
tested through SmartPLS, so that to test the model is acceptable or not that based on the inner
outer model test.
The inner model test is conducted through testing on several criteria, such as Loading
Factors, Cronbach’s Alpha, Composite Reliability, and Average Variance Extracted (AVE).
Based on the results summarized in Table 1, it is known that the Outer Loading value is above
0.6, except for X23 on digital advertising indicator. In Table II, it is known that Cronbach’s
Alpha and Composite Reliability values are above 0.5, and the AVE values are above 0.4. Based
on the conclusion of the results in Table I and II, it is known that research instrument can be
accepted and continued for analysis. Furthermore, the outer model test is carried out, which is
through the value criteria in T-Statistics. Based on the results in Table II, it is known that all of T-
Statistics values obtained for all of research instruments which have values are above 2.2 (except
X23). It means that research instrument is accepted based on the outer model test. Concluding

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from the results of inner and outer model test, it can be said that the model is valid and reliable,
so it can be anayzed further.
The next test is conducted by testing research hypothesis based on the previous
hypothesis design. There are three research hypotheses tested by the results summarized in Table
IV. The first hypothesis is the correlation between consumer needs and digital advertising
preference, which is known to have a T-statistic value of 5.608. It is the same with the third
hypothesis where the correlation between digital advertising preference and consumer brand
awareness has a T-statistic of 10.729. The two previous hypotheses have a T-statistic value above
1.69, which explains the acceptance of research hypotheses. It is emphasized by P values are
below 1. So that it can be conveyed that consumer needs have a positive correlation with digital
advertising preference, then digital advertising preference has a positive correlation with
consumer brand awareness. However, it is different from the test results on the second
hypothesis, is the correlation between consumer needs directly and consumer brand awareness
where T-statistic value is 1.782 with a P value of 0.075. These results are still acceptable, but it is
highly less the possibility. So, it can be concluded directly that consumer needs is not
recommended to be used to control consumer brand awareness.
Conclusion from the results of hypothesis testing is presented in the research model as
illustrated in Figure 1. It is clear that consumer needs have positive correlation to digital
advertising and digital advertising has a positive correlation to consumer brand awareness.
However, consumer needs have a positive correlation to consumer brand awareness, it is not
recommended because it has a weak correlation. Furthermore, the analysis of each research
hypothesis and research findings is presented separately in the following discussion. As for the
beginning, it is known that there is a recommendation model related to the position of digital
advertising preference as a variable mediation between consumer needs and consumer brand
awareness.

Table 1
VALUES OF OUTER LOADING
Consumer Digital Advertising Consumer Brand
Instruments
Needs Preference Awareness
X11 0,806
X12 0,763
X13 0,831
X14 0,832
X15 0,826
X21 0,678
X22 0,690
X23 0,164
X24 0,754
X25 0,684
Y1 0,701
Y2 0,830
Y3 0,843
Y4 0,800
Y5 0,726

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Table 2
VALUES OF RELIABILITY AND VALIDITY

Cronbach's Composite
Variables AVE
Alpha Reliability

Consumer Needs 0,580 0,746 0,400

Digital Advertising
0,871 0,906 0,659
Preference

Consumer Brand
0,839 0,887 0,612
Awareness

Table 3
P VALUES OF OUTER LOADING

P
Instruments T Statistics (|O/STDEV|)
Values

X11<- Consumer Needs 19,547 0,000

X12<- Consumer Needs 17,899 0,000

X13<- Consumer Needs 26,558 0,000
X14<- Consumer Needs 33,475 0,000
X15<- Consumer Needs 30,309 0,000
X21<- Digital Advertising Preference 12,751 0,000

X22<- Digital Advertising Preference 12,397 0,000

X23<- Digital Advertising Preference 1,481 0,139

X24<- Digital Advertising Preference 9,299 0,000

X25<- Digital Advertising Preference 16,232 0,000

Y1<- Consumer Brand Awareness 15,558 0,000
Y2<- Consumer Brand Awareness 33,321 0,000
Y3<- Consumer Brand Awareness 28,065 0,000

Y4<- Consumer Brand Awareness 23,690 0,000

Y5<- Consumer Brand Awareness 14,305 0,000

Table 4
P VALUES OF HYPOTHESIS

Hypothesis T Statistics (|O/STDEV|) P Values

Consumer Needs -> Digital Advertising Preference 5,608 0,000

Consumer Needs -> Consumer Brand Awareness 1,782 0,075

Digital Advertising Preference -> Consumer Brand Awareness 10,729 0,000

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Consumer Needs

0,120

Consumer Brand
0,387
Awareness

0,646

Digital Advertising
Preference

FIGURE 1
RESEARCH MODEL

The Impact of Consumer Needs to Digital Advertising Preference

The study results have been described in Figure 1, that there is a positive correlation of
consumer needs in digital advertising preference with a correlation value of 0.387 or having a
positive impact of 15%. This study results are in line with the previous studies that show digital
advertising preference in its implementation depends on consumer needs (Rambe & Jafeta,
2017; Subawa et al., 2020). Based on these findings, it can be said that this research completes
the previous research. Information from this study is important for marketers that the
implementation of digital advertising in digital marketing cannot be separated from consumer
preferences and consumer needs. The purpose of implementing digital advertising preference is
surely to increase the value of product and service which is promoted, so that it can be accepted
by consumers.
There are many types of digital advertising, however it focuses on consumer preference,
so the intended advertising is related to the platforms used in digital advertising. First, it focuses
on search engine advertising, consumer actually feel that there is advertising which appears
when they search for information via internet. This advertising has consumers’ attention and it is
effective to be felt by them. Furthermore, interactive advertising appears when consumers are
interacting with a website or e-commerce. Advertising appears is not directly noticed by
consumers, so that it has an impact to consumer’s assesment. Sometimes consumers feel that
there is opt-in advertising which appears when a transcation occurs, eventhough it is disturbing,
it has an impact to consumers’ attention. Nowadayas, consumers are accustomed to all of social
media networks, as a medium for interacting and communicating. However, it is not realized
that many advertisements have appeared and received consumers’ attention. Companies are
more active in providing advertising through digital; one of them are directly through mobile
advertising. Although it does not receive a direct attention, it has an impact to consumers’
memory. Digital advertising preference appears to be related to consumers needs, where each
consumer has a different level of need for advertising. However, all of the preference which
appear indirectly from consumers, they are an important part of what marketers notice in
implementing digital advertising.

Mediation of Digital Advertising Preference

This study findings are based on the model presented in Figure 1, which states that
digital advertising preference has a positive correlation to consumer brand awareness. Based on
a quite higher of correlation value, is 0.646, or digital advertising preference has an impact of
41.7% to brand awareness. This finding is in line with the previous studies which explain the
benefits of digital advertising in controlling consumer brand awareness (Doni Purnama
Alamsyah et al., 2018; Jayaram et al., 2015). Based on these findings, it is clear that this part of

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research completes the previous studies. The advertisements are packaged by marketers contain
messages that are conveyed in a persuasive away, they notice to consumers’ concern for the
brand.
There is another research results illustrated in Figure 1. It states that there is a correlation
between consumer needs and consumer brand awareness are about 0.120. This correlation is not
too close, so it is not recommended; it means that what consumers need is not able directly to
explain consumer’s concern for the brand. The correlation between two variables is still too far
away. Based on this study, it can be seen that the position of digital advertising preference is a
mediation of the correlation between consumer needs and consumer brand awareness.
Considering that digital advertising can be influenced by consumer needs and it can affect to
consumer brand awareness.
The implementation of digital advertising has an impact to consumer behavior. Digital
advertising, which is part of digital marketing, it is actually useful in supporting marketer’s
performance, because it is able to measure consumer behavior. Based on this study findings, it is
clear that the implementation of the Management Information System (MIS) is the
implementation of digital advertising as an implementation of a marketing strategy. The
information of this study can be used by companies, where the importance of observing to
digital advertising is to control consumers’ assessment of brand and their concerns.

CONSLUSIONS

The importance of information technology in supporting company’s performance.

Technology implementation is carried out by companies through digital marketing to support
marketing information systems. One of the ways to do by digital marketing is the
implementation of digital advertising. The research findings stated that digital advertising can be
preferred by consumers through the support of consumer needs. So that the content in digital
advertising is in accordance with consumers’ expectations. One side is found that digital
advertising preference of consumers has a positive impact to consumer brand awareness of
products from companies. In this study, it was found that consumers needs were not directly
able to measure consumers brand awareness. So that, the final conclusion is found the position
of digital advertising preference as a mediation between consumer needs and consumer brand
awareness. This research has limitations where it does not study the characteristics of consumers
and research object for consumers who see digital advertising in general. So that it becomes a
suggestion for further research to examine specifically to consumers who have interest in
tourism areas, because digital advertising preference are often studied in understanding tourism
area.

ACKNOWLEDGMENT

The study of green customer behavior is international collaboration results between Bina
Nusantara University and Universiti Teknikal Malaysia Melaka. Also, this work supported by
Research and Technology Transfer Office, Bina Nusantara University, as a part of Bina
Nusantara University’s International Research Grant entitled “The Neuro research of Green
Advertising: Study of Green Consumer Behavior” with contract number: No.
017/VR.RTT/III/2021 and contract date: 22 Maret 2021.

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