FACTORS INFLUENCING ONLINE PURCHASE DECISION OF LOCAL PERFUME BRANDS IN INDONESIA

• Main Author: Nurulita Hanun Azizah, Shintia
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/68366
• Institution: Institut Teknologi Bandung

The growing of technology enables customers to utilize information technology with the objective of doing the online shopping activities. Online transactions are now a prevalent and no longer be a rare phenomenon, where advances in internet technology are utilized well. In addition, the 2019 COVID-19 outbreak has had a significant impact on internet purchasing habits. Despite the benefits of online shopping, certain shopping experiences cannot be replaced due to the inability to use senses such as smell and taste while purchasing products. One of the examples is perfume that require direct involvement of the olfactory and haptic senses. This research focuses on local perfume brands in Indonesia. This is because the growing local perfume market and the development of numerous new local brands. Therefore, the purpose of this study is to identify and investigate the factors that influence customers' purchase intention and online purchase decisions in Indonesia. The findings will be utilized to evaluate and provide recommendations for online retailers and marketers, particularly those in the local Indonesian perfume industry, in order to develop appropriate and effective marketing strategies to attract their potential customers. A quantitative survey was conducted among 512 Indonesian respondents between the ages of 18 and 29 who have purchased local perfume online within the past six months. PLS-SEM was used to investigate the association between the tested variables and the primary data gathered via an online questionnaire. According to the research findings, E-WOM (online consumer reviews, testimonials, and ratings), social media marketing, price, product quality, and product description have an influence on the purchase intention of local perfume users, which influences the online purchase decisions for the local perfume brands. However, brand image, self- image, and packaging do not significantly influence on the purchase intention of local perfume users. Additionally, the researcher comes with the three highest influence of purchase intention. Product quality is the most influential factor of purchase intention for local perfume brands, followed by E- WOM (online consumer reviews, testimonials, and ratings), and product description. With this research result, it could bring a perspective to the local perfume company to develop strategic plan by enhancing more on these factors that influence the purchase intention of the local perfume users to generate a marketing strategy. It is done in order to strengthen the marketing strategy. attract new potential consumers based on what their intention to purchase, and grow more profitable benefits to the local perfume company.