A STUDY OF FACTORS INFLUENCING PURCHASE DECISION ON WELLNESS SERVICES IN INDONESIA

• Main Author: Maura Soetopo, Nathalie
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75461
• Institution: Institut Teknologi Bandung

The Indonesia wellness industry has shown to have been growing steadily these past few years. Based on the Global Wellness Institute, Indonesia ranked as the top 19th countries worldwide. This condition has become a great potential for Indonesia wellness startups to maximize the condition. An Indonesia startup called Mealth has just pivoted their business model, now focusing on providing wellness services. As they are new to the industry, the startup is shown to have difficulties in understanding the customers’ wants, needs, and preferences in deciding the purchasing decision of the services. Therefore, this study aims to provide research insights regarding the factors that influence the purchasing decision of wellness services in Indonesia. The research predicts that brand image, electronic word of mouth (eWOM), perceived quality, and marketing cues have positive and significant influence on the purchasing decision. Furthermore, the research also predicts that the perceived Chief Executive Officer image positively and significantly influence as a moderating variable between brand image, eWOM, perceived quality, and marketing cues toward customer purchasing decision on wellness services in Indonesia. The researcher uses quantitative method to analyze the data through online questionnaires by using non- probability, purposive quota sampling with 128 respondents. This research utilized the partial least square structural equation modelling method using SmartPLS software. The results show that marketing cues has a positive and significant influence on the purchase decision. On the other hand, brand image, eWOM, and perceived quality do not have significant influence to the purchase decision. The result also shows that the perceived Chief Executive Officer mage does not have significant moderating influence on the purchase decision between the brand image, eWOM, perceived quality, marketing cues to the purchase decision. The insights gained from this research can be useful in strategizing marketing and product development strategy for wellness services in Indonesia.