The Role of Digital Marketing in Building Brand Awareness and Customer Loyalty for Grab in Indonesia
Abstract
This study aims to analyze the role of digital marketing in building brand awareness and customer loyalty for Grab's services in Indonesia. The research background is based on the intense competition in the ride-hailing industry and the existing gap between the intensity of digital marketing strategies and the level of customer loyalty. The research method employed a quantitative approach using Structural Equation Modeling based on Partial Least Squares (SEM-PLS). Primary data were obtained from 123 Grab users selected through purposive sampling. The research instrument consisted of a questionnaire using a 5-point Likert scale to measure digital marketing, brand awareness, and customer loyalty variables. The results indicate that digital marketing has a positive and significant effect on brand awareness, and brand awareness has a positive and significant effect on customer loyalty. Furthermore, digital marketing also directly affects customer loyalty, but the indirect effect through brand awareness is stronger. These findings reinforce the role of brand awareness as a mediating variable in shaping customer loyalty. Practically, this study provides recommendations for Grab to improve the consistency of digital marketing messages and strengthen brand identity to retain customer loyalty.
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