THE IMPACT OF VISUAL PROMOTION AND CONSUMERS’ PERCEPTION OF RISK TOWARD CONSUMERS’ PURCHASING DECISION IN A SKIN CARE STORE IN SHOPEE

• Main Author: Devanie Christabella, Clemency
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/57781
• Institution: Institut Teknologi Bandung

In 2020, almost 74% of Indonesian population have access and use the internet to facilitate online transactions. Online shopping has limitation of low direct interaction between products and potential consumers. This leads to the needs of online retailers to create effective strategies in order to attract consumers to choose their store over the others, including attracting them visually and creating strategies to lower perceived risks. This study aimed to identify and examine the factors that influence online consumers’ purchase intention and purchase decision of skin care products in Shopee as online shopping platform. The result will be used to assess and give recommendations to be implemented by online retailers, especially in beauty and skin care industry, to create appropriate and effective marketing strategies to attract and satisfy their potential customers. A quantitative survey was conducted among 206 respondents who are Indonesian woman with age ranging from 23-65 years old, who have experiences in buying skin care products in online store in Shopee for the last 3 months. The primary data was collected through an online questionnaire and analyzed by PLS-SEM method to assess the relationship between the tested variables. The result indicates that visual promotion and consumers' perception of risk are significantly affecting online consumers' purchase intention and purchase decision in the context of shopping skin care products online. It further demonstrates that customers’ preference towards video promotion positively and significantly affect visual promotion, and some factors like giving out consumer money-back guarantees, hassle-free returns, and the availability of e-WOM (online recommendation) are significantly affect consumers’ perception of risk, which indirectly give high impact on consumers' purchase intention and purchase decision in online shopping environment. This study implies that it is important for online retailers to use attractive visual promotion and offer risk reduction strategies, which influence consumers’ purchase intention and purchase decisions as discussed in this study.