FACTORS INFLUENCING COSMETICS PURCHASE INTENTION AMONG RESPONDENTS IN INDONESIA BASED ON ONLINE REVIEW

• Main Author: Amalia Putri, Latifa
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72373
• Institution: Institut Teknologi Bandung

Indonesia is identified as one of five emerging markets with the best middle class potential that spend more on discretionary spending, such as cosmetic. At the same time, Indonesia’s Internet penetration, which is currently reaching 102.8 million users, has been shaping new lifestyle and preference of Indonesians. The way of consumers search for others’ recommendations has dramatically changed and now consumers rely heavily on online reviews (e-WOM). eWOM has been examined by prior studies, but consumers purchase intention based on online review specifically in cosmetic products in Indonesia has not been studied. This paper aims to study factors influencing consumers purchase intention based on online reviews. The marketing implication of this study is to provide information for cosmetic industries in Indonesia to advance their marketing communication strategy through eWOM. The result indicated that the most significant factors influencing purchase intention of cosmetics is argument quality, followed by source credibility, quantity of review, valence, perceived usefulness of review and review valence. Cosmetics marketers should create relation with beauty enthusiasts and deliberately choose right reviewer who has expertise and good reputation in cosmetics field, educate and share the knowledge with them in order to gain positive impact in reviews and maintain the company’s products information among consumers well.