KEY FACTORS INFLUENCING GENERATION Z CONSUMER SATISFACTION AND PURCHASE DECISION FOR LOCAL MOISTURIZERS
Keywords:
Consumer Satisfaction, Purchase Decision, Local Moisturizer, Product Quality, Price, Promotion, Brand Image, Skincare
Abstract
The Indonesian skincare market, valued at USD 586.4 million and projected to reach USD 2.8 billion by 2028, has grown rapidly, especially among Generation Z, who prioritize product quality, affordability, and effectiveness. This study examines the key factors influencing consumer satisfaction and purchase decisions for local moisturizers among Generation Z in Indonesia. Using a quantitative approach, data was collected from 2,045 respondents aged 12-27 who have tried local moisturizer products through online surveys on Instagram and TikTok. Data analysis used PLS-SEM, focusing on the impact of product quality, price, promotion, and brand image on consumer satisfaction and purchase decisions. The results indicate that product quality and brand image are the main factors influencing consumer satisfaction, which in turn affects purchase decisions. Although competitive pricing and effective promotions also contribute, they are secondary. These findings provide insights for local skincare brands to enhance market strategies, meet the needs and preferences of Generation Z, and drive sustainable growth. By understanding these dynamics, local brands can enhance customer loyalty, encourage repeat purchases, and foster word-of-mouth promotion in the competitive skincare industry. This research emphasizes the importance of aligning product offerings with consumer expectations and leveraging brand reputation to gain a competitive edge.
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Lin, L., & Chang, Y. (2013). A study on the impact of product quality on consumer satisfaction in the skincare industry. Journal of Business Research, 66(9), 1047-1053.
Liu, Z., & Ling, J. (2019). Research on influencing factors of purchase promotion intention based on skin care industry. Modern Economy, 10, 1033-1047. https://doi.org/10.4236/me.2019.103069
Liu, Y., Li, H., & Hu, F. (2018). Website attributes in urging online impulse purchase: An empirical investigation on consumer perceptions. Decision Support Systems, 55(3), 829-837.
Lukić, M., Pantelić, I., & Savić, S. (2021). Essentiality of cosmetics for skin health and protection. Skin Pharmacology and Physiology, 34(2), 89-100. https://doi.org/10.1159/000515206
Mao, Y., Lai, Y., Luo, Y., Liu, S., Du, Y., Zhou, J., Ma, J., Bonaiuto, F., & Bonaiuto, M. (2020). Apple or Huawei: Understanding flow, brand image, brand identity, brand personality, and purchase intention of smartphone. Sustainability (Switzerland), 12(8), 1–22. https://doi.org/10.3390/SU12083391
McKinsey & Company. (2020). How young Indonesians are transforming the beauty market.
Mintel. (2024). Trends shaping the future of the skincare industry.
Nielsen. (2019). Beauty and personal care report.
Nitzl, C., Roldan, J. L., & Cepeda-Carrion, G. (2016). Mediation analysis in partial least squares path modeling: Helping researchers discuss more sophisticated models. Industrial Management & Data Systems, 116(9), 1849-1864.
Oliver, R. L. (1980). A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of Marketing Research, 17(4), 460-469. https://doi.org/10.2307/3150499
Oliver, R. L. (2010). Satisfaction: A behavioral perspective on the consumer. Routledge.
Rani, P. (2014). Factors influencing consumer behavior. International Journal of Current Research and Academic Review, 2(9), 52-61.
Reichheld, F. F. (2003). The one number you need to grow. Harvard Business Review, 81(12), 46-54.
Sharma, A., & Foropon, C. (2019). Green product attributes and green purchase behavior: A theory of planned behavior perspective with implications for circular economy. Management Decision, 57(4), 1018-1042.
Southeast Asia Market Research. (2024). Understanding the Indonesian Skincare Market: A Consumer Overview. Retrieved from https://www.southeastasiamarketresearch.com/insights/understanding-the-indonesian-skincare-market
Sudirjo, A., Hartono, H., & Lestari, P. (2023). The significance of cosmetics in modern society. Journal of Personal Care and Cosmetics, 29(1), 50-61. https://doi.org/10.1016/j.jpc.2023.01.005
Veloutsou, C. (2017). New challenges in brand management. Emerald Insight. Retrieved from Emerald Insight
Westbrook, R. A., & Oliver, R. L. (1991). The dimensionality of consumption emotion patterns and consumer satisfaction. Journal of Consumer Research, 18(1), 84-91. https://doi.org/10.1086/209243
Wong, K. (2013). Partial least square structural equation modeling (PLS-SEM) techniques using SmartPLS. Marketing Bulletin, 24, 1-32.
Yoo, B., Donthu, N., & Lee, S. (2000). An examination of selected marketing mix elements and brand equity. Journal of the Academy of Marketing Science, 28(2), 195-211.
Zanatta, C. F., Mitjans, M., Urgatondo, V., Rocha-Filho, P. A., & Vinardell, M. P. (2010). Photoprotective potential of emulsions formulated with Buriti oil (Mauritia flexuosa) against UV irradiation on keratinocytes and fibroblasts cell lines. Food and Chemical Toxicology, 48(1), 70-75.
Badan Pusat Statistik (BPS). (2021). Population Census 2020.
Brignone, M., Caloni, F., Di Lorenzo, D., & Carati, D. (2019). Use of cosmetics and health of skin. Journal of Dermatology Research, 21(3), 155-165. https://doi.org/10.1016/j.jdermres.2019.01.003
Cresswell, J. W., & Cresswell, J. D. (1998). The good research guide: For small-scale social research projects. Open University Press.
Davis, D. F., Golicic, S. L., & Marquardt, A. (2009). Measuring brand equity for logistics services. International Journal of Logistics Management, 20(2), 201-212.
Dick, A. S., & Basu, K. (1994). Customer loyalty: Toward an integrated conceptual framework. Journal of the Academy of Marketing Science, 22(2), 99-113.
Fang, Y., Chiu, C., & Wang, E. T. G. (2011). Understanding customers' satisfaction and repurchase intentions: An integration of IS success model, trust, and justice. Internet Research, 21(4), 479-503.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. doi:10.1177/002224378101800104
Fornell, C., Johnson, M. D., Anderson, E. W., Cha, J., & Bryant, B. E. (1996). The American customer satisfaction index: Nature, purpose, and findings. Journal of Marketing, 60(4), 7-18. https://doi.org/10.2307/1251898
Gefen, D., Straub, D. W., & Boudreau, M. C. (2000). Structural equation modeling and regression: Guidelines for research practice. Communications of the Association for Information Systems, 4, 1-70. doi:10.17705/1CAIS.00407
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Cengage Learning.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Prentice Hall.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM) (1st ed.). SAGE Publications.
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139-152.
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24. doi:10.1108/EBR-11-2018-0203
Hawkins, D. I., & Mothersbaugh, D. L. (2001). Consumer behavior: Building marketing strategy (9th ed.). McGraw-Hill.
Hoang, H. T., Moon, J.-Y., & Lee, Y.-C. (2021). Natural antioxidants from plant extracts in skincare cosmetics: Recent applications, challenges, and perspectives. Cosmetics, 8(4), 106.
Kahraman, E., Karaca, N., & Turkoglu, M. (2019). The role of cosmetics in maintaining skin health. International Journal of Cosmetic Science, 41(5), 299-308. https://doi.org/10.1111/ics.12553
Kazmi, S. H. H. (2004). Consumer behavior. Atlantic Publishers & Distributors.
Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1-22.
Keller, K. L. (2003). Strategic brand management: Building, measuring, and managing brand equity (2nd ed.). Prentice Hall.
Kline, R. B. (2015). Principles and practice of structural equation modeling (4th ed.). Guilford Press.
Korichi, R., Pelle-de-Queral, D., Gazano, G., & Aubert, A. (2008). Relation between facial morphology, personality and the functions of facial make-up in women. International Journal of Cosmetic Science, 30(2), 113-120. https://doi.org/10.1111/j.1468-2494.2007.00486.x
Kotler, P., & Armstrong, G. (2014). Principles of marketing (14th ed.). Pearson.
Kotler, P., & Armstrong, G. (2018). Principles of marketing (17th ed.). Pearson.
Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson.
Kutner, M. H., Nachtsheim, C. J., & Neter, J. (2005). Applied linear regression models (4th ed.). McGraw-Hill/Irwin.
Kumar, V., & Shah, D. (2015). Expanding the role of marketing: From customer equity to market capitalization. Journal of Marketing, 73(6), 119-136.
Lien, C. H., Wen, M. J., Huang, L. C., & Wu, K. L. (2015). Online hotel booking: The effects of brand image, price, trust, and value on purchase intentions. Asia Pacific Management Review, 20(4), 1–9. https://doi.org/10.1016/j.apmrv.2015.03.005
Lin, L., & Chang, Y. (2013). A study on the impact of product quality on consumer satisfaction in the skincare industry. Journal of Business Research, 66(9), 1047-1053.
Liu, Z., & Ling, J. (2019). Research on influencing factors of purchase promotion intention based on skin care industry. Modern Economy, 10, 1033-1047. https://doi.org/10.4236/me.2019.103069
Liu, Y., Li, H., & Hu, F. (2018). Website attributes in urging online impulse purchase: An empirical investigation on consumer perceptions. Decision Support Systems, 55(3), 829-837.
Lukić, M., Pantelić, I., & Savić, S. (2021). Essentiality of cosmetics for skin health and protection. Skin Pharmacology and Physiology, 34(2), 89-100. https://doi.org/10.1159/000515206
Mao, Y., Lai, Y., Luo, Y., Liu, S., Du, Y., Zhou, J., Ma, J., Bonaiuto, F., & Bonaiuto, M. (2020). Apple or Huawei: Understanding flow, brand image, brand identity, brand personality, and purchase intention of smartphone. Sustainability (Switzerland), 12(8), 1–22. https://doi.org/10.3390/SU12083391
McKinsey & Company. (2020). How young Indonesians are transforming the beauty market.
Mintel. (2024). Trends shaping the future of the skincare industry.
Nielsen. (2019). Beauty and personal care report.
Nitzl, C., Roldan, J. L., & Cepeda-Carrion, G. (2016). Mediation analysis in partial least squares path modeling: Helping researchers discuss more sophisticated models. Industrial Management & Data Systems, 116(9), 1849-1864.
Oliver, R. L. (1980). A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of Marketing Research, 17(4), 460-469. https://doi.org/10.2307/3150499
Oliver, R. L. (2010). Satisfaction: A behavioral perspective on the consumer. Routledge.
Rani, P. (2014). Factors influencing consumer behavior. International Journal of Current Research and Academic Review, 2(9), 52-61.
Reichheld, F. F. (2003). The one number you need to grow. Harvard Business Review, 81(12), 46-54.
Sharma, A., & Foropon, C. (2019). Green product attributes and green purchase behavior: A theory of planned behavior perspective with implications for circular economy. Management Decision, 57(4), 1018-1042.
Southeast Asia Market Research. (2024). Understanding the Indonesian Skincare Market: A Consumer Overview. Retrieved from https://www.southeastasiamarketresearch.com/insights/understanding-the-indonesian-skincare-market
Sudirjo, A., Hartono, H., & Lestari, P. (2023). The significance of cosmetics in modern society. Journal of Personal Care and Cosmetics, 29(1), 50-61. https://doi.org/10.1016/j.jpc.2023.01.005
Veloutsou, C. (2017). New challenges in brand management. Emerald Insight. Retrieved from Emerald Insight
Westbrook, R. A., & Oliver, R. L. (1991). The dimensionality of consumption emotion patterns and consumer satisfaction. Journal of Consumer Research, 18(1), 84-91. https://doi.org/10.1086/209243
Wong, K. (2013). Partial least square structural equation modeling (PLS-SEM) techniques using SmartPLS. Marketing Bulletin, 24, 1-32.
Yoo, B., Donthu, N., & Lee, S. (2000). An examination of selected marketing mix elements and brand equity. Journal of the Academy of Marketing Science, 28(2), 195-211.
Zanatta, C. F., Mitjans, M., Urgatondo, V., Rocha-Filho, P. A., & Vinardell, M. P. (2010). Photoprotective potential of emulsions formulated with Buriti oil (Mauritia flexuosa) against UV irradiation on keratinocytes and fibroblasts cell lines. Food and Chemical Toxicology, 48(1), 70-75.
Published
2024-08-14
How to Cite
Winnie Irene. (2024). KEY FACTORS INFLUENCING GENERATION Z CONSUMER SATISFACTION AND PURCHASE DECISION FOR LOCAL MOISTURIZERS. Journal of Social and Economics Research, 6(1), 1823-1844. https://doi.org/10.54783/jser.v6i1.472
Section
Articles
