ABSTRACT
Shopee uses Instagram to stay connected with its users to form its brand equity. The brand equity can generate customer responses to Shopee. Despite the fact that Shopee is dominating of the e-commerce market in Indonesia, several indicators suggest that Shopee is falling behind its competitors. This study aims to acknowledge the influence of Shopee's social media marketing activities on Instagram on Shopee's brand equity, Shopee's brand equity on customer response, and Shopee's social media marketing on customer response. This study employs quantitative method with non-probability sampling technique by involving 485 respondents, which means it was unlikely for the entire population to be sampled. This research uses PLS-SEM. By using PLS-SEM, this research conduct two models to be tested; outer and inner model. The results revealed that social media marketing activities on Instagram had a significant impact on brand association, brand awareness, perceived quality, E-WOM, and commitment. Moreover, perceived quality had a significant impact on E-WOM and commitment, while brand association had a significant impact on commitment, but not on E-WOM. Lastly, brand awareness had no significant impact on E-WOM and commitment.
