THE EFFECT OF KOREAN BRAND AMBASSADORS AND OTHER FACTORS TOWARDS CONSUMER PURCHASE INTENTION ON LOCAL SKINCARE BRAND PRODUCTS IN INDONESIA

• Main Author: Tiara Maharani Bahar, Andi
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/67473
• Institution: Institut Teknologi Bandung

The number of local skincare brands in Indonesia is continuously increasing. As a result of the growing level of competition, to boost the number of sales of a product, several local skincare brands vie to win the hearts of their consumers by using Korean celebrities as the brand ambassadors for their marketing communication strategies. However, the use of Korean brand ambassadors have received a lot of backlash where it deemed "inappropriate" and “insignificant” by netizens because they believe that Indonesian and Korean individuals have different skin colours, therefore will not experience the same outcomes. In light of the aforementioned circumstances, the following research will be carried out with the primary goal of investigating the influence of Korean brand ambassadors towards consumer purchase intention on local skincare goods endorsed by Korean Brand Ambassadors as well as the influence of other factors that have the potential to sway consumers' intention to make those purchases. This research will make use of a quantitative methodology in the form of an online survey. The online survey, which was carried out in the form of a questionnaire, elicited responses from a total of 405 respondents who know or have seen at least 1 form of promotion of local Indonesian skincare products by Korean brand ambassadors but never made a purchase of those local skincare products and domiciled in Indonesia. The PLS-SEM approach was utilized to do the analysis, and the SmartPLS application was used to do so. The findings of this research indicate that Korean brand ambassadors and consumer perceived risk have insignificant influence on the purchasing intentions of consumers. Meanwhile, other factors, such as brand awareness, consumer perceived quality, consumer expectation, brand image, together with consumer product knowledge have significant influence on consumer intention to make a purchase of local skincare brand products. It is possible for local skincare brands and other marketers of beauty and skincare brands to use the findings from this research to improve their marketing strategies in Indonesia.