The Role of Digital Literacy and Social Media in the Effectiveness of MSME Digital Marketing through Consumer Trust
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Abstract
This study aims to analyze the role of digital literacy and the use of social media on the effectiveness of MSME digital marketing in Palopo City with consumer trust as a mediating variable. The research method uses a quantitative approach with explanatory research. Data was obtained through questionnaires distributed online and offline to 500 respondents who were active consumers of social media who had interacted or purchased MSME products. Data analysis was carried out using the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique using SmartPLS software. The results of the study show that digital literacy has a significant positive effect on both the effectiveness of digital marketing and consumer trust. The use of social media has a significant effect on consumer trust, but it does not directly affect the effectiveness of digital marketing. Consumer trust has been proven to have a positive influence on the effectiveness of digital marketing and significantly mediates the relationship between digital literacy and social media use and the effectiveness of digital marketing. Thus, this research model emphasizes that digital literacy is the dominant factor that strengthens the effectiveness of MSME digital marketing, while social media plays a role mainly through the formation of consumer trust. The practical implications of this study are the importance of increasing the digital literacy capacity of MSME actors as well as social media management strategies that focus on transparency and credibility, so as to strengthen consumer trust and increase the competitiveness of MSMEs in the digital era.
Keywords:
Digital literacy Social media Consumer trust Digital marketing effectiveness MSMEsReferences
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