Using PESTEL Framework to Analyze User-Generated Content Usage on Social Media: The Case of Indonesian Tourism and Travelling Business on Instagram

Abstract

The objective of this study is to empirically compare the effectivity of usergenerated-content usage throughout social media with other traditional advertisement medias such as television, radio, and printed media in terms of consumers’ buying decision throughout Indonesia’s tourism business. Nowadays, millennials generation tend to choose travelling experiences rather than buying goods. Furthermore, social media such as Instagram has played an important role in millennials generation’s life; they engage in social media on a daily basis. This study used mixed method approached with PESTEL Framework as qualitative method and questionnaire deployment as quantitative method resulting in exploratory sequential research design. Questionnaires has been deployed to 245 social media users and the data was processed with SPSS. Based on the research applied, user-generated-content usage inside Instagram application as new marketing media for Indonesian tourism business has proven to be more effective compare to other traditional marketing media as people intend to trust words-of-mouth better than far-fetched traditional advertisements.