Digital Marketing and Relationship Marketing Effects on Automotive Purchase Decisions in South Sumatra

Abstract

This study was conducted to analyze the influence of digital marketing on purchase decisions, both directly and indirectly with the mediation variables of Relationship Marketing on prospective car buyers in South Sumatra. The Structural Equation Modeling (SEM) process is carried out using SmartPLS. The results empirically show that digital marketing has a strong positive effect on relationships (path coefficient = 0.978; p < 0.001). The impact of digital marketing on purchase decisions was 0.212 (p < 0.001), followed by relationship marketing with a coefficient value of 0.759 (p<.000). Relationship marketing mediates the influence of digital marketing on purchase decisions with an indirect impact of 0.742 (P <.001). The findings from this study point to something new for automotive industry professionals looking to blend digital marketing and relationships to strengthen consumer purchase decisions. This study also adds to the literature on the Mediation model in the context of marketing and sales