HOW ONLINE CONSUMER REVIEW RELATES TO PURCHASE INTENTION A STUDY OF PREMIUM COSMETICS IN INDONESIA

• Main Author: Adhelia Sutanto, Monica
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72445
• Institution: Institut Teknologi Bandung

Today there is an increase in the number of Internet users in Indonesia. The growth of active internet users affects the marketing activities. The rapid spread of internet usage makes the electronic marketing becomes important and popular. One of the electronic marketing is online consumer review. Online consumer review belongs to one type of electronic word of mouth in which the end user generates and uploads the analyses and commentaries about the related product or service used. Online consumer review becomes the primary source to search the information of particular product including from another consumer experience. It has played role in various industries; one of them is cosmetic industry. Cosmetic in Indonesia seem have positive growth in Indonesia and there is a projection that premium cosmetics will rise and exceed the mass cosmetic in 2017 caused by the drive of emerging markets and the rising of disposable incomes and spending aspiration. The purpose of this study is to examine the relation of online consumer review as a part of an electronic word of mouth towards consumer purchase intention of premium cosmetics in Indonesia. Along with the high diverse information of online consumer review, it would be better to increase purchase intention and make the prediction into reality if company know the power of online consumer review and how to handle the online consumer review. There are four independent variables to examine: source credibility, review quality, review quantity, and review valence. A quantitative method used in this research by spreading online questionnaire to 400 youth females in Indonesia who aged between 15-29 years old. The questionnaire used 5 Likert scale. The data of this research was analyzed by Multiple Regression Analysis to know the relation of each independent variable to dependent variable and processed by using SPSS 23. The author found that all of the independent variables which are source credibility, review quality, review quantity, and review valence has significant and positive affect to purchase intention as dependent variable. Online consumer reviews becomes one of emerging marketing communication and advertisement that plays an important role as an information agent which help the consumer in purchase decision process, specifically purchase intention. By knowing the role of online consumer review on purchase intention, the premium cosmetics company should do monitoring, data mining and utilize the existence of online consumer review as part of new marketing strategy that in return can create more sales. This research also contributes academically in enriching the studies of online review related to purchase intention specifically in premium cosmetics.