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Walean, Ronny Hansye
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Social Sciences

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The Trust Paradox: A Dual-Pathway Analysis of Digital Marketing's Impacts on Consumer Loyalty and Consumer Decision Supatman, Ernando R.; Walean, Ronny Hansye; Mandagi, Deske W.
Paradoks : Jurnal Ilmu Ekonomi Vol. 9 No. 1 (2026): November - Januari
Publisher : Fakultas Ekonomi, Universitas Muslim Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.57178/paradoks.v9i1.1985

Abstract

In contemporary digital markets, cultivating sustained customer loyalty and shaping purchasing decisions present significant strategic challenges for companies. This study investigates the impact of digital marketing on consumer decisions and loyalty in the financing industry in Indonesia, comparing the mediating mechanisms of brand engagement (affective pathway) and consumer trust (cognitive path). Using an explanatory quantitative approach on 265 respondents selected through purposive sampling, the data were analyzed with Structural Equation Modeling (SEM). The findings reveal that digital marketing significantly influences consumer decisions and loyalty, with brand engagement acting as a partial mediator, while consumer trust does not mediate significantly, uncovering a "trust paradox" in the context of the financing industry. This study makes an original contribution by introducing a dual-pathway model that distinguishes between affective and cognitive mediation mechanisms, and by highlighting the practical implication that relational strategies grounded in emotional attachment are more effective than transactional trust-based approaches in fostering sustainable loyalty.
Co-Authors Deske W. Mandagi Supatman, Ernando R.