ANALYZING THE INFLUENCE OF VIRAL MARKETING ON INCREASING PURCHASE INTENTION OF LOW-END, MEDIUM-END AND HIGH-END COSMETICS PRODUCTS
The resilience of the beauty industry during and after the pandemic has attracted many companies to enter the beauty industry which has increased competition thereby encouraging brands to adopt various marketing strategies to stand out among competitors. Awareness of social media and technological a...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/83427 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The resilience of the beauty industry during and after the pandemic has attracted many companies to enter the beauty industry which has increased competition thereby encouraging brands to adopt various marketing strategies to stand out among competitors. Awareness of social media and technological advances have driven the development of beauty products in Indonesia, with revenues reaching US$8.7 billion in 2023 and an expected annual growth rate of 4.39% (CAGR 20242028). This demand has led to the proliferation of local cosmetic and skincare brands, with significant market growth for both local and international products.
Marketers are increasingly adopting viral marketing strategies to respond to this competition. This study examines the relationship between viral marketing strategies, purchase intentions, and attitudes towards behavior as mediating variables in various segments of the cosmetics industry: low-end, mid-end, and high-end. Using a framework that includes informativeness, entertainment, distractibility, and source credibility, this research investigates how these factors influence consumer purchase intentions in each segment.
A quantitative approach using non-probability sampling and SMART PLS software for analysis revealed that entertainment significantly impacts purchase intention in the low-end segment, informativeness is the main driver in the middle-class segment, and source credibility is the most influential in the high-end segment. Interestingly, Irritation was not a significant factor in any segment. These findings highlight the need for viral marketing strategies that are tailored to suit the preferences of various consumer segments, emphasizing entertainment elements for brands that have low-end market segments, emphasizing information for brands that have mid-end market segments, and credible sources for brands that have highend market segment. Future research should explore the emerging role of digital platforms in viral marketing and additional variables influencing purchase intentions, thereby contributing valuable insights to the marketing strategies of the cosmetics industry.
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