Digital Marketing, Brand Awareness, and Purchasing Decisions in MSMEs: Examining the Moderating Role of Promotion

Abstract

This study investigates the influence of digital marketing, brand awareness, and promotion on purchasing decisions among Micro, Small, and Medium Enterprises (MSMEs), with promotion also examined as a moderating variable. Using a quantitative approach and Partial Least Squares Structural Equation Modeling (PLS-SEM), data were collected from MSME consumers and analyzed for measurement and structural model assessments. The findings show that digital marketing (β = 0.431, p < 0.001), brand awareness (β = 0.312, p < 0.001), and promotion (β = 0.298, p = 0.004) each have a significant positive effect on purchasing decisions. In contrast, the moderating effect of promotion on the relationship between digital marketing and purchasing decisions (β = -0.055, p = 0.534) and between brand awareness and purchasing decisions (β = -0.047, p = 0.609) is negative and statistically insignificant. These results highlight the importance of integrating digital marketing and brand-building efforts, with promotions applied strategically to complement rather than overshadow other marketing strategies. The study offers practical insights for MSME practitioners in optimizing marketing effectiveness and provides a basis for future research in broader contexts.