The Role of Perceived Value in Mediating the Effects of Social Media Perception and Premium Pricing on Purchase Intention

Abstract

This study examines the mediating role of perceived value in the relationships between social media perception, premium pricing, and purchase intention within the context of a lifestyle café in Yogyakarta, Indonesia. Drawing on the Stimulus–Organism–Response (S-O-R) framework, the research investigates how consumers’ perceptions of social media activities and their willingness to pay a price premium shape internal value assessments that subsequently drive purchase intention. A quantitative explanatory design was employed, utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM). Data were collected through an online questionnaire from 417 purposively selected followers of the café’s Instagram account who met predefined engagement and demographic criteria. The results reveal that both social media perception and premium pricing exert significant positive effects on perceived value, which in turn strongly influences purchase intention. Perceived value fully mediates the effects of the two independent variables on purchase intention. These findings reinforce the central role of perceived value as a cognitive mechanism linking digital and price-related stimuli to consumer behavioral responses in the competitive urban café sector. Theoretically, the study provides additional empirical support for the S-O-R model in digital lifestyle consumption. Practically, managers are advised to develop value-oriented social media content and maintain consistent quality standards to justify premium pricing and strengthen purchase intention.