Articles

Emerging Market Entry: Innovative Marketing Approaches for Tirtagangga Hot Spring Resort Targeting Gen Z and Millennials

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Indonesia, a populous country, exhibits a significant population size. As per data from the Ministry of Home Affairs of the Republic of Indonesia via the Dukcapil Directorate General, the largest generation in Indonesia comprises Gen Z and Millennials. These two generations display various behavioral differences compared to preceding generations, particularly in their travel habits. In order to attain the national tourism target, the Ministry of Tourism and Creative Economy (Kemenparekraf) has designated Gen Z and Millennials as the primary target demographic. Tirtagangga Hot Spring Resort, currently undergoing rebranding efforts, aims to penetrate the Gen Z and Millennial market. Initial research suggests that Tirtagangga Hot Spring Resort faces challenges in attracting hotel guests from this new market. This study employs a quantitative approach, utilizing a questionnaire for customer analysis, and employs SMARTPLS for data processing and hypothesis testing. The research entails conducting interviews with 12 individuals, including business owners and their marketing department. The outcomes reveal a positive impact of Social Media Marketing on Brand Awareness and Brand Image, while Brand Awareness and Brand Image, in turn, positively influence Purchase Intention. Based on these findings, the authors propose several strategies to augment sales, leveraging the SWOT and TOWS tools encompassing both external and internal analyses. The recommended strategy revolves around diversifying promotional strategies that specifically target the hotel’s updated style and activities, aiming to captivate attention and generate interest. A key focus is placed on highlighting the hotel’s unique blend of modern aesthetics and hygienic surroundings. The promotional efforts should emphasize the newly adopted style of the hotel while concurrently advancing its renovation endeavors. This approach effectively showcases the hotel’s fresh aesthetic while preserving its renowned heritage. Additionally, the hotel should enhance its offerings by introducing supplementary activities and amenities, enriching the overall guest experience.

 

Maximizing Simultaneous Social Media Communication: A Study on Purchase Intention among Millennials and Generation Z in the Online Language Learning Industry

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Born in the middle of lock down Covid-19 in Indonesia, Cetta Online Class started their journey and currently has more than 1700 enrolling students in 5 language classes. However, Cetta needs to re-evaluate to be able to win the market and grow their sales, as they enter the market by using social media marketing communication. Cetta needs to know how to utilize more of their firm-created social media and their ongoing students to be able to generate more word of mouth. Studies have found that firm-created social media communication, user-generated social media communication, and E-WOM have a significant positive impact on purchase intention in several countries. All respondents of this study are millennials and members of Generation Z, as Cetta’s students are Millennials and Gen Z. This research was conducted for academic purposes and to make recommendations for Cetta Online Class, a company in the service industry and, to be more precise, a brand that operates an online foreign language course. This research uses quantitative linear regression approaches with a survey method and cross-sectional research design. The measuring tools of the study designed by Alrwashdeh, Emeagwali & Aljuhmani (2019) to measure E-WOM and purchase intention; and Schivinski and Dabrowski (2016) to measure firm-created and user generated social media communication. The sampling technique used in this research is purposive sampling. This study involved 444 respondents (64% Gen Z and 36% Millennial). The results showed that: First, E-WOM is the most influential factor, but it is surpassed by simultaneous social media communication, which is an integrated communication strategy that incorporates all three elements, including firm-created social media, user-generated social media, and E-WOM. Second, Gen Z respondents have more influence than millennials, which includes both firm-created and user-generated influence. Millennials exceeded Gen Z in E-WOM by 0.02%. Third, the recommended strategies to maximize simultaneous communication are: create new design, social media creative team recruitment, content contests and challenges, student stories and testimonials, student ambassador program, invest more in service quality and learning journey, create a referral program, and build a strong community.

The Influence of Critical Success Factors of Innovative Insurance Product Development Concept Test towards Purchase Intention: An Empirical Study of Millennials and Generation Z as Target Market in Indonesia

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The insurance industry faces numerous challenges, including intensifying competition, shifting customer expectations, and disruptive technological advancements. To navigate these challenges successfully, insurance companies must embrace innovation in product development. This approach enables them to meet the evolving needs of customers, adapt to market changes, and deliver greater value to their clientele. In Indonesia specifically, insurance companies face the considerable challenge of low insurance penetration, which has remained stagnant over the past five years from 2017 to 2021 (AAJI, 2022). Furthermore, insurance literacy and inclusion levels are alarmingly low, standing at only 19.40% and 13.15%, respectively, significantly below the Indonesian averages of 38.03% and 76.19% (OJK, 2019). Considering these challenges, PT Delta Echo Lima Insurance (placebo name and hereinafter named “DELI”) aims to address these issues by developing innovative, customer-centric insurance products and aspires to launch a ground-breaking insurance concept in Indonesia targeting Millennials and Generation Z. This research focuses on analyzing the characteristics of the target market and examining the correlation between critical success factors as key dimensions of the concept test for innovative insurance products and their influence on perceived innovation, perceived value, perceived price, and purchase intention. Additionally, an overall relationship model is established to provide a comprehensive understanding of the interconnections between these variables. To gather data, a quantitative approach was employed, utilizing questionnaires as the primary research instrument. The aim was to collect responses from two distinct groups of participants: Millennials and Generation Z. The collected data was then processed using the SmartPLS 3.0 software application, enabling the application of Partial Least Square Structural Equation Modelling (PLS SEM) analysis to derive insights and draw conclusions. This research provides valuable insights into the influence of critical success factors of innovative insurance product development concept tests on various aspects, including perceived innovation, perceived value, perceived price, and purchase intention among Millennials and Generation Z. The findings shed light on the unique characteristics of these target markets and highlight the significance of perceived value in driving customers’ purchase intentions. By understanding these dynamics, insurance companies like PT DELI can better tailor their product development strategies to effectively cater to the needs and preferences of Millennials and Generation Z while addressing the challenges and opportunities within the Indonesian insurance industry.