JOSR: Journal of Social Research
Desember 2022, 2 (1), 15-23
p-ISSN: 2827-9832 e-ISSN: 2828-335x
Available online at http:// https://ijsr.internationaljournallabs.com/index.php/ijsr
http://ijsr.internationaljournallabs.com/index.php/ijsr
THE IMPACT OF ENDORSEMENTS ON SALES TURNOVER
MSME BUSINESS IN BANDAR LAMPUNG CITY
Anggun Yustia Arinda T, I Wayan Suparta, Arivina Ratih YT
Faculty of Economics and Business, University of Lampung
arinda1011.mie2019@gmail.com, Wayansuparta61@gmail.com, arivinaratih@gmail.com
Abstract (Indonesia)
Received:
Revised :
Accepted:
November 26,
2022
November 29,
2022
December 01,
2022
Latar Belakang: Perkembangan teknologi saat ini banyak
dimanfaatkan oleh para pelaku usaha untuk mempromosikan
produknya, dengan kemudahan yang diinginkan oleh
pembeli, tentunya hal ini menjadi solusi bagi pengusaha
UMKM untuk pengembangan usaha. Penggunaan
endorsement merupakan salah satu alternatif yang bisa
dicoba untuk meningkatkan omzet penjualan.
Tujuan: Penelitian ini bertujuan untuk mengetahui sejauh
mana peran guru dalam melaksanakan layanan pendidikan
inklusif di SMAN 6 Bandung.
Metode: Penelitian ini dilakukan dengan menggunakan
survei menggunakan bantuan google form terhadap 100
responden pengusaha UMKM yang menggunakan
endorsement sebagai bantuan promosi usaha UMKM di Kota
Bandar Lampung. Jenis penelitian ini menggunakan jenis
penelitian kuantitatif dengan menggunakan format
deskriptif. Data yang dikumpulkan dalam analisis
menggunakan metode deskriptif kuantitatif dan deskriptif
kualitatif dengan memanfaatkan peralatan statistik deskriptif
dan tabel frekuensi tunggal serta frekuensi silang.
Pengambilan keputusan dilihat dari jumlah hasil persentase
jika lebih dari 50% diartikan sebagai variabel yang
berdampak pada UMKM.
Hasil: Hasil penelitian ini diperoleh penggunaan promosi
menggunakan media sosial dengan bantuan endorser untuk
mempromosikan produk yang dimiliki UMKM sangat
berpengaruh pada aspek informasi, aspek persuasif, aspek
pengulangan, dan omzet penjualan untuk berkembang dan
bersaing dengan UMKM lainnya.
Kesimpulan: Penelitian ini fokus pada dampak pengaruh
endorsmenr terhadap omzet UMKM terutama pada volume
penjualan dan laba. Penggunaan promosi menggunakan
media sosial dengan bantuan endoser untuk mempromosikan
produk yang dimiliki UMKM sangat berdampak pada aspek
Anggun Yustia Arinda T, I Wayan Suparta, Arivina Ratih YT / JOSR: Journal of Social Research,
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The Impact of Endorsements on Sales Turnover Msme Business in Bandar
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informasi, aspek persuasif, aspek pengulangan dan omzet
penjualan guna untuk pengembangan dan bersaing dengan
UMKM lainnya.
Keywords: Endorsement, omset penjualan, UMKM.
Abstract (English)
Background: Technological developments are currently
widely used by business actors to promote their products,
with the convenience desired by buyers, of course, this is a
solution for MSME entrepreneurs for business
development. The use of endorsements is one alternative
that can be tried to increase sales turnover.
Objective: This study aims to determine the extent of the
role of teachers in implementing inclusive education
services at SMAN 6 Bandung.
Method: This research was conducted using a survey using
the help of a google form on 100 respondents of MSME
entrepreneurs who used endorsements as assistance for
promoting MSME businesses in Bandar Lampung City.
This type of research uses a quantitative type of research
using a descriptive format. The data collected in the
analysis used quantitative descriptive and qualitative
descriptive methods by utilizing descriptive statistical tools
and tables of single frequencies and cross frequencies.
Decision-making is seen from the number of percentage
results if more than 50% is interpreted as a variable that
has an impact on MSMEs.
Results: The results of this study obtained the use of
promotion using social media with the help of endorsers to
promote products owned by MSMEs greatly affect the
information aspect, persuasive aspect, repetition aspect,
and sales turnover to develop and compete with other
MSMEs.
Conclusion: This study focuses on the impact of the effect
of endorsements on MSME turnover, especially on sales
volume and profit. The use of promotion using social media
with the help of endorsers to promote products owned by
MSMEs has a great impact on information aspects,
persuasive aspects, repetition aspects, and sales turnover to
develop and compete with other MSMEs.
Keywords: Endorsement, sales turnover, MSMEs
*Correspondent Author: Anggun Yustia Arinda
Email: arinda1011.mie2019@gmail.com
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The Impact of Endorsements on Sales Turnover Msme Business in Bandar
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INTRODUCTION
Economic growth is currently at its peak, with the introduction of data technology
innovations that greatly affect business actors. The level of technological progress has
provided convenience for humans in various fields, one of which is the field of business or
buying and selling. The real form of technological progress is the existence of the internet.
The internet provides various facilities for its users, one of which is a place to buy and sell.
This facility can be used as a field for doing business.
The emergence of online shops, online commerce groups, e-commerce platforms,
and other e-business models is proof that today's society wants convenience in trying to get
what they want quickly and easily. Especially during the Covid-19 pandemic where all
access is restricted, of course, online sales are one solution so that MSMEs can survive
even in a slumped economic situation. As a result, MSME players are required to make
more aggressive sales and more vigorous promotional efforts. So that the goods offered
sell well with extra sales promotions. Of course, this will have an impact on the public to
know the existence of the goods we sell, to know the advantages both in terms of products
and services compared to competing MSMEs. Social media is an alternative method of
bidding to sell goods in larger quantities.
The increasing demand for online sales is inseparable from the advertisements used
by each MSME entrepreneur to attract many consumers. Advertising is a persuasive
communication medium designed to generate responses and help achieve objectivity or
marketing goals (Rahmawati, 2013). One of the ways that are done so that advertisements
made can attract the attention of consumers is by using endorsements. The selection of
endorsers must be considered. Many factors determine the success or failure of a product,
but the use of endorsements can indeed be one of the factors, especially the nature of being
a driver for consumers to want to buy. The use of endorsements is one of the creative
strategies in advertising that is used so that people can form perceptions about products or
brands by associating endorsers with their products and causing brand awareness in the
public as users of the product.
Celebrity endorser is used to attracting the attention of the audience and is expected
to increase product awareness. The use of celebrity endorsers gives the impression that
consumers are selective in choosing and improving their status by having what is used by
celebrities (Pradhan et al., 2016). Celebrity image for a consumer can be measured based
on the celebrity's suitability and ability to attract attention (Miller & Allen, 2012). Every
celebrity has many meanings, including status, class, gender, age as well as personality,
and lifestyle. Credibility and attractiveness alone are not enough to explain how celebrity
endorsements can serve to transfer the value of a product or company (Charbonneau &
Garland, 2010).
Considering that the use of endorsements is a very intensive thing to do in
advertising and marketing, the author feels interested in conducting research related to the
impact of using the endorsement on the sales turnover of a product and goods.
RESEARCH METHODS
The data used in this study is primary data by conducting a survey directly of
MSME actors in Bandar Lampung City who use Instagram social media as a promotional
and sales medium and use endorsements as an alternative to promoting products. This type
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of research uses a quantitative type of research using a descriptive format. Quantitative
research with a descriptive format aims to explain, and summarize various conditions,
various situations, or various variables that arise in the community that is the object of
research based on what happens (Bungin, 2011). The sampling technique to be used is
Saturated Sampling where the sample is all members of the population. In this study, the
number of samples to be taken was 100 respondents. then the techniques that the author
will use are observation (observation) and questionnaire (questionnaire), the distribution of
questionnaires to MSME actors is carried out using the help of google forms.
The data collected in the analysis used quantitative descriptive and qualitative
descriptive methods by utilizing descriptive statistical equipment and single frequency
tables as well as cross frequencies. Decision-making is seen from the number of percentage
results if more than 50% is interpreted that the variable has an impact on MSMEs (Lubis
& Junaidi, 2016).
RESULTS AND DISCUSSION
This research was carried out in Bandar Lampung City. Data on MSME
entrepreneurs who market their businesses using social media and using the help of
celebrity endorsements to carry out sales promotions in Bandar City.
1. Descriptive Data
The results of descriptive data of respondents to the frequency distribution show
that 66% of MSME owners are female and 35% of MSME owners are male. The last
education taken by MSME owners was 61% of Bachelor (S1) graduates, in second place
45% of high school graduates, 4% of Diploma graduates (D3), and 1% of junior high school
graduates. MSMEs who are respondents are 62% aged 0-5 years, 13% are aged 6-10 years
and 25% are over 10 years old. Most of the MSME players who are respondents are
engaged in trade 84%, production business 11%, and services 6%. The fields of trade that
are engaged in include fashion, culinary, cosmetics, and parabola. Meanwhile, the business
in the field of production engaged in is engaged in making robusta coffee, making chips,
Lampung tapis craftsmen, producing souvenirs typical of Lampung, and other service
businesses such as hair shaving, computer service, laundry, car, and motorcycle washing,
transportation.
Table 1.
Respondent descriptive data
Gender
Frequency
Percentage
Man
35
35%
Woman
66
66%
Total
100
Final Education
SD
0
0%
JUNIOR
1
1%
SMA
45
45%
Diploma (D3)
4
4%
Undergraduate (S1)
61
61%
Total
100
Length of Business
(years)
0 – 5
62
62%
6 – 10
13
13%
>10
25
25%
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The Impact of Endorsements on Sales Turnover Msme Business in Bandar
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Total
100
Business Type
Service
6
6%
Trade
84
84%
Production
11
11%
Total
100
Source: Data Processed by Author, 2022
2. Endorsement Data
Endorsement is a marketing strategy by utilizing the icons of famous people such
as artists, figures, and other advertising stars who have direct and strong influence and use
their famous attributes to attract consumers to make purchases.
a. Impact of Information Aspects (Informing)
Using endorsement services has an impact on information on potential buyers.
Based on the results of a survey conducted, shows that using endorsement services has a
very impact on delivering information to a wider range of prospective buyers, namely
72.5%, Endorsement Makes it easier to disseminate information about MSME products
offered. Can convey information on product excellence to MSMEs which is promoted by
70%. The level of trust possessed by an endorsement will certainly easily convey the
information conveyed, this can be proven that the endorsement is easy to disseminate
information, which is 80.1%. With so many followers, of course, there are special tricks
and ways to convey product information to be more interesting, it can be proven that the
delivery has become more attractive by 67.5%. Information can be easily conveyed to
potential buyers because endorsers have a level of trustworthiness. Trust refers to
perceived honesty, integrity, and trustworthiness by the crowd. In addition to having a level
of trust endorsement has expertise which refers to the knowledge, experience, and skills
possessed by supporters (endorsers) (Terence & Andrews, 2013). The following Figure 1
shows the impact of information aspects of the use of endorsements on MSMEs in Bandar
Lampung City
Source: Data Processed by Author, 2022
Figure 1. Information Aspects of the Impact of Endorsements
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The Impact of Endorsements on Sales Turnover Msme Business in Bandar
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b. Impact of Persuasive Aspects (Influencing)
The implementation of social media has an impact on persuasive aspects
(Influencing) So it can be concluded that the use of endorsements can increase purchase
interest in Out-of-Town Customers by 83.4%. Endorsements can increase followers to
MSME businesses by 80.0%. So that it can increase buying interest by 79.9%. Strength is
the charisma emitted by the endorser so that it can influence the thinking, attitude, or
behavior of consumers because of the supporting statement or message (cavernous). It will
certainly be easy to infect the followers he has to easily believe what he says. The following
Figure 2 shows the impact of the persuasive aspects of endorsement use on MSMEs in
Bandar Lampung City.
Source: Data Processed by Author, 2022
Figure 2. Persuasive Aspects of Endorsement Impact
c. Impact of Repetition Aspects (Pervasivasiveness)
The intensity of endorsements can strengthen the interest of potential customers in
MSME business products. This is because it will increase the trust of potential buyers who
are still hesitant and introduce new followers. Of course, the intensity of endorsements can
strengthen the interest of potential buyers in MSME products by 69.3%. Planning to use
endorsements back by 62.2% to increase sales turnover. The uniqueness of the
characteristics of the endorser can help communicate the messages you want to convey to
the audience. Celebrities as endorsers who have a characteristic match with the product to
be advertised will be more helpful in dramatically conveying the message. So by making
repeated or intense endorsements, it will certainly have an impact on the level of trust and
loyalty of potential buyers and those who have used the MSME product. The following
Figure 3 shows the impact of the repetition aspect of endorsement use on MSMEs in Bandar
Lampung City.
79,9%
83,4%
80,0%
Meningkatkan minat beli
meningkatkan minat beli luar kota
menambah pengikut pada usaha umkm
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Source: Data Processed by Author, 2022
Figure 3. Aspects of Repetition of Endorsement Impact
According to (Schiffman & Kanuk, 2007), there are several roles of endorsers as
advertising models that companies can use, namely:
1. Testimonials. If the celebrity personally uses the product, then his party can testify
about the quality and benefits of the advertised product or brand.
2. Support (Endorsement). There are times when a celebrity is asked to star in a product
commercial when he or she is not personally an expert in the field.
3. Actor (Actor). Celebrities are asked to promote a certain product or brand related to
the role they are starring in a certain program.
4. Spokesperson (Spokesperson). Celebrities who promote a product, brand, or
company over some time fall into the group of spokesperson roles. Their appearance
will be associated with the brand or product they represent.
d. Impact on Sales Turnover
Endorsements can increase sales turnover so that the expected target for MSME
business actors is achieved. The use of endorsements Can increase sales volume by 70%
and increase profits by 65%. So it can be concluded that the more often you use the right
endorsement, the more you increase your turnover in a month. The sales turnover obtained
is equivalent to the endorsement fee for one endorsement. The following figure 4 shows
the impact of the use of endorsements on the sales turnover of MSMEs in Bandar Lampung
City
Source: Data Processed by Author, 2022
Figure 4. Impact of Endorsements on Sales Turnover
Based on the results of a survey on the use of endorsements for MSME businesses
in Bandar Lampung City, it certainly has a very good impact on sales turnover, this supports
69,3%
62,2%
Intensitas Endorsement
Perencanaan Menggunakan
Endorse Kembali
70%
65 %
Volume Penjualan
Laba
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the function and purpose of these sales, the Company generally has three general objectives
in sales, namely:
1) Achieve a certain sales volume
2) Getting a certain profit
3) Support the company's growth.
Sales volume is the result of sales activities carried out by the company to achieve
the goal of maximizing profits and increasing sales turnover. According to (Chakroborty,
2005), there are several disadvantages or disadvantages of using celebrities as endorsers,
namely as follows:
1. Negative Publicity. Celebrities who lose their popularity or are exposed to problems
can have an impact on the decline in the value of the advertised brand. Therefore, when
celebrities who support the brand are involved in legal issues, personal problems, or
other issues that can lower their selling value and will have an impact on the product
to be advertised.
2. Overshadowing. When a product is marketed and uses a celebrity whose image is very
dominant, it can be that the image defeats the identity of the endorsed product.
Celebrities who are used as endorsers can distract consumers' attention to them,
commonly known as celebrity shadows. Consumers do pay attention to their celebrities
but have problems remembering what products they advertise.
3. Over Exposure. A celebrity can be an endorser on a wide variety of products so that no
specific product can be associated with it.
4. Over Usage. The use of several celebrity endorsers for marketing a product so that the
public will be confused about who exactly is the endorser of the product.
5. Extinction. A long contract from a celebrity endorser will lead to extinction in the
absorption of the identity of the product association. If celebrities cannot stabilize their
behavior, it will result in a shift in the associations that celebrities image to the
company.
6. Financial Risk. The use of celebrities in the promotion mix process is a step that
requires very high financing and can cause financial risk for the company.
CONCLUSION
This study focuses on the impact of the effect of endorsements on MSME turnover,
especially on sales volume and profit. The use of promotion using social media with the
help of endorsers to promote products owned by MSMEs has a great impact on information
aspects, persuasive aspects, repetition aspects, and sales turnover to develop and compete
with other MSMEs. This survey proves that the power of the endorser can have a positive
and negative impact. The positive impact as evidenced by the percentage rate above 50%
indicates that endorsements of MSMEs are very influential. The study used 100
respondents of MSME actors in Bandar Lampung City. The results of the research show
that most MSME players use and use endorsement services to increase sales turnover.
This research does not further examine the comparison before and after the use of
endorsements to sales turnover in detail such as the comparison of the average sales
turnover before using endorsements and after using endorsements with the help of
Wilcoxon test. So it is suggested that further research can analyze this matter by equating
whether there is a significant comparison in the increase in turnover before and after using
endorsements. The obstacles felt by MSME actors in running a business using endorsement
services are that in addition to the price set by the endorser management, MSME actors
have to wait too long for the endorser to post the product to be promoted.
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© 2021 by the authors. Submitted for possible open access publication under the
terms and conditions of the Creative Commons Attribution (CC BY SA)
license (https://creativecommons.org/licenses/by-sa/4.0/).