An Analysis of Digital Marketing, Local Origin, and Trust in Online Buying Interest for Coconut Oil Products from Village-Owned Enterprises

Abstract

Rural enterprises, such as Indonesian village-owned enterprises, face difficulties marketing their products via e-commerce because potential buyers are uncertain about product quality, delivery reliability, and seller credibility. The growth of social media and online marketplaces creates opportunities to use digital content and local-origin signals to reduce this uncertainty and build trust. This study analyses how digital marketing content and perceptions of local origin influence trust and online buying interest in coconut oil products from village-owned enterprises. It tests the mediating role of trust using a structural equation modelling approach. A mixed-methods design was employed based on an online survey of 120 social media and marketplace users in Indonesia. Qualitative questions explored coconut oil usage, information-seeking behaviour, preferred content, doubts about purchasing from remote regions, and suggestions to increase confidence in buying from rural enterprises. Quantitative data for four reflective constructs (Digital Marketing, Local Origin, Trust, and Buying Interest) were measured on five-point Likert scales and analysed using partial least squares structural equation modelling. The qualitative results show that respondents rely on e-commerce platforms, prefer educational content, and are concerned about delivery risk and shipping costs, and emphasise stronger packaging, clearer quality information, and visible customer reviews. The quantitative findings indicate that digital marketing and local origin have significant positive effects on trust and buying interest, with local origin as the strongest driver of trust and trust as the strongest direct predictor of buying interest. At the same time, trust also partially mediates the effects of digital marketing and local origin on buying interest.