International Journal of Business and Economy (IJBEC) eISSN: 2682-8359 | Vol. 4 No. 3 [September 2022]
Journal website: http://myjms.mohe.gov.my/index.php/ijbec
FACTORS INFLUENCING ONLINE PURCHASE DECISION OF LOCAL PERFUME BRANDS IN INDONESIA
Shintia Nurulita Hanun Azizah1* and Mustika Sufiati Purwanegara2
1 2 School of Business and Management, Bandung Institute of Technology, Bandung, INDONESIA
*Corresponding author: [email protected]
Article Information:
Article history:
Received date : 7 August 2022 Revised date : 25 August 2022 Accepted date : 1 September 2022 Published date : 10 September 2022
To cite this document:
Azizah, S. N. H., & Purwanegara. M.
S. (2022).FACTORS INFLUENCING ONLINE PURCHASE DECISION OF LOCAL PERFUME BRANDS IN INDONESIA. International Journal of Business and Economy, 4(3), 244-259.
Abstract: The growing of technology enables customers to utilize information technology with the objective of doing the online shopping activities. Online transactions are now a prevalent and no longer be a rare phenomenon, where advances in internet technology are utilized well. In addition, the 2019 COVID-19 outbreak has had a significant impact on internet purchasing habits. Despite the benefits of online shopping, certain shopping experiences cannot be replaced due to the inability to use senses such as smell and taste while purchasing products. One of the examples is perfume that require direct involvement of the olfactory and haptic senses. This research focuses on local perfume brands in Indonesia. It because the growing local perfume market and the development of numerous new local brands. Therefore, the purpose of this study is to identify and investigate the factors that influence customers' purchase intention and online purchase decisions in Indonesia. The findings will be utilized to evaluate and provide recommendations for online retailers and marketers, particularly those in the local Indonesian perfume industry, in order to develop appropriate and effective marketing strategies to attract their potential customers. A quantitative survey was conducted among 512 Indonesian respondents between the ages of 18 and 29 who have purchased local perfume online within the past six months. PLS-SEM was used to investigate the association between the tested variables and the primary data gathered via an online questionnaire. According to the research findings, E- WOM (online consumer reviews, testimonials, and ratings), social media marketing, price, product quality, and product description have a significant influence to the online purchase decisions for the local perfume
1. Introduction 1.1 Background
According to We Are Social and Hootsuite (2021), the number of Indonesia internet users reached 202.6 million, or 73.7% of the overall population of 274.9 million. According to Statista (2022a), the number of e-commerce users in 2021 is projected to reach 158.6 million or equivalent to 78% of total internet users in Indonesia. From this data, the number of e- commerce users in Indonesia is expected to grow to 221.0 million in 2025. It has been demonstrated that online purchasing provides more pleasure to current consumers who value convenience and quickness (Yu et al., 2007).
Despite the benefits of online shopping, some studies argued certain shopping experiences due to the incapacity to utilize senses such as smell while purchasing things, brick-and-mortar retailers cannot be replaced by their digital counterparts for a specific range of goods.
Consumers value the ability to physically inspect goods prior to purchase. One example is perfume products that engage the olfactory senses directly. (Levin et al., 2003; Phau & Poon, 2000; Zhang et al., 2018). Some surveys have been identified that there items as one of the most popular internet purchases, therefore it is important that online retailers need to understand consumer motivations and perceptions toward online shopping to these products (Eurostat, 2018; Nielsen, 2018; Statista, 2022b).
brands. However, brand image, self-image, and packaging do not significantly influence on the online purchase decisions for the local perfume brands.
Additionally, the researcher comes with the three highest influence of purchase intention. Product quality is the most influential factor of online purchase decision for local perfume brands, followed by E-WOM (online consumer reviews, testimonials, and ratings), and product description. With this research result, it could bring a perspective to the local perfume company to develop strategic plan by enhancing more on these factors that influence the purchase intention of the local perfume users to generate a marketing strategy. It is done in order to strengthen the marketing strategy.
attract new potential consumers based on what their intention to purchase, and grow more profitable benefits to the local perfume company.
Keywords: online purchase decision, purchase intention, local perfume, perfume industry, e-WOM, brand image, social media marketing, self-image, product quality, price, packaging, product description, purchase intention, online purchase decision.
In details, the other sources from Indexbox (2022) shows the Indonesian perfume market was finally on the rise in 2021, after three years of decline. Overall, the total consumption indicated a strong increase from 2012 to 2022 (Indexbox, 2022). Moreover, beauty trends are now increasingly shifting towards local brands. In the recent years, local brands have begun to produce cosmetics and skincare items. Currently, more and more local perfume brands are launching quality products (Namira, 2020). According to Sudaryatmo, Chairman of YLKI in Advocacy and Protection of Indonesian Consumers, local products are products made from materials originating from within the country, the workforce comes from domestically, the product uses a local brand and the last is company ownership. Based on this understanding, it can be concluded that a product can be said to be a local product if it meets one or even the four references at once (Subagyo, 2012)
Based on the results of the Compas survey, local Indonesian perfume sales are starting to compete with global brand perfumes. In August 2021, perfume local brand such as HMNS, Geamoore, and Kahf were in the TOP 10 Top Best Selling Perfume Brands on Shopee and Tokopedia based on their market share (Ramadhani, 2018). This shows that local Indonesian perfumes have a great opportunity to compete with global brand perfumes and potential market in online industry.
1.2 Problem Statement
Based on the preliminary research with 10 interviewees, it shows that many customers are still clueless about the quality and the scent of the product that they want to buy. They said that online buying perfume has limit to use of senses such as smell senses. This is shown that purchasing fragrances online without previous knowledge of the scent leads to problems with purchase decision making. Additionally, there is no previous study focusing on local perfume product in Indonesia. Hence, understanding factors influencing for online perfume shopping is important. With the increase of Indonesian local perfume brand, online perfume purchases, and few studies discussing this topic. Therefore, the author wants to know the factors that influence online purchase decision, especially in local perfume brands in Indonesia
1.3 Research Questions
Based on the context above, here are the issue that need to be addressed and explored in this research:
1. What are the socio-economic profile and product consumption habits of local perfume customers in Java Island?
2. What are the influencing factors of the online purchase decision of local perfume customers?
3. What is the most influencing factor of the online purchase decision of local perfume customers?
1.4 Research Objectives
Knowing that there are background and research problem, the author wants to:
1. To provide an overview about socio-economic profile and product consumption habits of local perfume customers in Java Island and its importance
2. To examine factors that influence the online purchase decision of local perfume customers
3. To know the most influencing factors of the online purchase decision of local perfume customers
2. Literature Review
E-WOM: Online Consumer Reviews, Testimonials, and Rating
Electronic word-of-mouth (E-WOM) in the form of reviews, testimonials, and previous consumer ratings are some main external sources that are vital for future buyers to receive needed information about the store and be considered prior to making a purchase or payment, whether to buy products from an online store brand or not (Hennig-Thurau et al., 2004).
Social Media Marketing
According to Neti (2011), Social Media Marketing is a strategic strategy for creating a company's influence, reputation, and brand within the communities of prospective customers (Karman, 2015). This study will use (Kim and Ko (2010), model by using social media characteristics; entertainment (ENT), interaction (INT), trendiness (TRD), and customization (CUS), and Word-of-Mouth (WOM). Word of mouth variable will also be used in this study more specifically E-WOM that already explained above.
Brand Image
Brand image is described as perceptions of a brand as reflected by the brand associations held in the consumer's mind or strong, favourable, and unique brand associations in memory (Keller
& Swaminathan, 2003).
Self-image
Self-image is how people see their looks, personality, type of person they are, what they feel others think of them, how much they love themselves, and their status or position (Nair, 2016).
Price
Price is the amount of money charged for a product or service, or the overall value buyers exchange for the product or service's benefits. When deciding to acquire a product, people place a greater emphasis on cost (Smith & Carsky, 1996).
Packaging
According to Kotler (2003), packaging is the design and production of a product's container.
Moreover, packaging is described as the material used to wrap consumer goods in order to retain, describe, maintain, promote, or advertise the product (Olawepo & Ibojo, 2015).
Product Quality
Russell and Taylor (2005) concur that the definition of product quality is "fitness for use" or conformity with client criteria. In addition, product quality can be defined as the potential of a good or service to meet and exceed consumer expectations (Kotler & Armstrong, 2012).
Product Description
Product information or description is a significant variable utilized by marketers to assist consumers in evaluating a product to make purchasing decisions (Khare & Rakesh, 2011a).
Purchase Intention
Morinez et al. (2007) stated purchase intention can be defined more broadly as the conditions under which consumers are more likely to purchase a particular product (Diaa, 2017).
Online Purchase Decision
Online purchase decision is a buying act by the consumer after going through a selection process that combines knowledge to evaluate two or more alternative behaviours, and choosing one of the alternatives that is strongest to personal character (Andrade, 2000).
After evaluating the literature review, therefore, it is hypothesized that:
H1: There is a positive significant influence of E-WOM (online customer reviews, testimonials, and ratings) to the purchase intention of local perfume brand
H2: There is a positive significant influence of social media marketing to the purchase intention of local perfume brand
H3: There is a positive significant influence brand image to the purchase intention of local perfume brand
H4: There is a positive significant influence self-image to the purchase intention of local perfume brand
H5: There is a positive significant influence price to the purchase intention of local perfume brand
H6: There is a positive significant influence packaging to the purchase intention of local perfume brand
H7: There is a positive significant influence product quality to the purchase intention of local perfume brand
H8: There is a positive significant influence product description to the purchase intention of local perfume brand
H9: There is a positive significant influence purchase intention to the online purchase decision of local perfume brand
H10: There is a positive significant influence E-WOM (online customer reviews, testimonials, and ratings) to the brand image of local perfume brand
H11: There is a positive significant influence social media marketing to the brand image of local perfume brand
H12: There is a positive significant influence self-image to the brand image of local perfume brand
The theoretical framework is illustrated in Figure 1.
Figure 1: Theoretical Framework
3. Method 3.1 Materials
In the initial stage of study, the author identified the problem in order to observe and narrow the study topic and resulting a problem identification. Next, the researcher begins the justification process by locating relevant literature. After a review of the relevant literature, this study employed qualitative and quantitative research to test hypotheses. The author conducted qualitative research as preliminary research to observe, explore, and understand more about the problem. Other that than, the author using a quantitative approach, the author will collect numerical data, analyse the data using a mathematical statistical technique, and evaluate hypotheses. The author uses surveys in the form of questionnaires to collect data for the quantitative method.
3.1.1 Samples
In this study, the author used Isaac and Michael (1995) formula with infinite population and 5% margin of error. It shows that this research needs minimal 349 respondents. This research gathered 512 respondents and uses non-probability sampling by make a subjective judgement, the selected sample should have the requirement of 18-29 years old Indonesian citizen in Java Island who experienced in buying online local perfume products in at least one time for the last 6 months.
3.1.2 Site
Java Island. Based on Indonesian Internet Providers Association (APJII) survey, the internet users in Indonesia is concentrated in Java Island (Eloksari, 2020).
3.1.3 Procedures
The variables involved in this study are an independent variable, a moderate variable, and a dependent variable. The independent variable, according to Sugiyono (2018), is the variable that causes the dependent variable to emerge or change. In this study, the independent variables are E-WOM, Brand Image, Social Media Marketing, Self-image, Product Quality, Price, Product Packaging, Product Description, while the moderate variable is Purchase Intention and Brand Image, last the dependent variable is Purchase Decision.
3.2 Measurement
This survey uses primary data that collected using surveys and uses Google Forms as a tool to collect all the information about respondents' data. In this research, Likert scale 1-5 will be used for collecting the information. Researchers used a Likert scale of 1 to 5 ranging from 1 = very disagreeable to 5 = very agreeable. The questionnaire element uses Indonesian because the investigator distributed the questionnaire to respondents who use Indonesian as their primary language. The structured questionnaire was developed by the previous literature review consist of 3 section (Socio-Demographic, behavioral, Close-Ended Question with 45 measurements items)
3.3 Data Analysis
Partial Least Square (PLS) was used to identify casual modelling in the conceptual framework.
The researcher utilized SmartPLS to calculate the association between all variables in this study.
3.3.1 Validity and Reliability 3.3.1.1 Reliability Indicator
In exploratory study, a score of 0.4 is still acceptable (Wong, 2013). This research constructs a conceptual framework that never been developed before, this research is concluded as exploratory research. All variables meet the minimal recommended value score; consequently, it can be assumed that all variables are reliable, and the research can proceed with further investigation.
3.3.1.2 Internal Consistency Reliability
The minimum value score is 0.7, but 0.6 is still deemed adequate for exploratory study (Wong, 2013). Due to the fact that the composite dependability value is more than the 0.70 criterion, as shown in the table, all indications are considered reliable.
3.3.1.3 Convergent Validity
According to Malhotra (2010), Validity is the degree to which variations in recorded scale scores represent real differences between objects and being evaluated; it's used to determine if respondent results are acceptable; and AVE (average variance extracted) should be 0.5 or greater to assess convergent and discriminant validity. All variables meet the minimal recommended value score; consequently, it can be assumed that all variables are valid.
3.3.1.4 Discriminant Validity
According to Fornell and Bookstein (1982), the square root of each latent variable's AVE could be used to demonstrate discriminant validity if the value is bigger than the other correlation coefficients of all latent variables, the square root values of AVE are higher than the correlation values in each row and column of latent variable. Consequently, it is reasonable to conclude that all variables passed the discriminant validity test.
3.3.1.5 Outer Collinearity Test
According to Wong (2013), the Variance Inflation Factor (VIF) is calculated using 1/Tolerance with a value of 5 or below. VIF values for all indicators meet the recommended requirements.
3.3.1.6 Inner Collinearity Test
All inner VIF values from all constructions are below the threshold of 5. In this research, there is no collinearity difficulty in predicting related constructions, and examining the computation results can proceed.
3.3.1.7 Hypothesis and Path Coefficient Testing
Table 3.1: Hypothesis and Path Coefficient Testing
Hypothesis Structural Path Path
Coefficient T-Values Result
H1 E-WOM -> Purchase intention 0.207 4.575 Accepted
H2 Social Media Marketing -> Purchase intention 0.143 3.041 Accepted H3 Brand Image -> Purchase intention -0.014 0.708 Rejected H4 Self-image -> Purchase intention 0.092 1.796 Rejected
H5 Price -> Purchase intention 0.101 2.201 Accepted
H6 Packaging -> Purchase intention -0.014 0.268 Rejected H7 Product Quality -> Purchase intention 0.229 4.821 Accepted H8 Product Description -> Purchase intention 0.188 3.844 Accepted H9 Purchase Intention -> Online Purchase Decision 0.637 17.604 Accepted
H10 E-WOM -> Brand Image -0.031 0.709 Rejected
H11 Social Media Marketing -> Brand Image 0.432 8.920 Accepted
H12 Self-Image -> Brand Image 0.253 4.696 Accepted
Table 3.1 displays path coefficient and T-values. Path coefficients around +1 indicate a strong positive association between two constructs, whereas path coefficients near -1 indicate a significant negative relationship (Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, 2017).
For purchase intention, product quality -> purchase intention has the biggest path coefficient score, which means that product quality is the most influential predictor of purchase intention of local perfume brand. The value of 0.229 in the product quality -> purchase intention path can be interpreted for every addition of one point in product quality would increase as much as 0.229 points in the of purchase intention of local perfume brand. Next, E-WOM -> purchase
intention has the second higher path coefficient score, which means that product quality is the most influential predictor of purchase intention of local perfume brand. The value of 0.207 in the E-WOM -> purchase intention path can be interpreted for every addition of one point in E- WOM would increase as much as 0.207 points in the of purchase intention of local perfume brand. Furthermore, for brand image, social media marketing -> brand image has the biggest path coefficient score, which means that social media marketing is the most influential predictor of brand image of local perfume brand. The value of 0.432 in the product quality ->
purchase intention path can be interpreted for every addition of one point in product quality would increase as much as 0.432 points in the of purchase intention of local perfume brand.
According to Wong (2013), the bootstrapping method in SmartPLS can provide inner and outer model significance testing T-statistics. This technique can be utilized to estimate the level of significance between each variable investigated during hypothesis testing. T-statistics are significant if the score exceeds 1.96, as assessed by a two-tailed t-test with a 5 percent significance level (Wong, 2013). Therefore, 8 hypotheses are accepted: H1, H2, H5, H7, H8, H9, H11, H12 and 4 hypotheses are rejected:H3, H4, H6, H10
4. Results and Discussion
The first hypothesis is, H1: There is significant influence of E-WOM (online customer reviews, testimonials, and ratings) to the purchase intention of local perfume brand. Based on the hypothesis testing result, this hypothesis is accepted. This finding concurred with Kateelar et al (201), electronic word-of-mouth with greater word-of-mouth quality is more persuasive to customers and simpler to influence their purchase intentions (Ketelaar et al., 2015). This study's findings are consistent with those of a recent study by Ventre and Kolbe (2020), which identified the perceived usefulness of online reviews (which will create trust) as one of the probable elements that influence purchase intention. The more the credibility and trustworthiness of online recommendations (ratings, reviews, and recommendations), the greater the impact on customers' purchase intention. It shows that the customers are more likely to seek information on E-WOM on social media from the other because their inability of customers to test the product. Therefore, by looking at other customers’ review, testimonial, and ratings they can have an more insight about the product and increase their purchase intention, Strengthening the result, E-WOM (online customer reviews, testimonials, and ratings) has the highest score among the other variables towards purchase intention.
Align with the next hypothesis, H2: There is significant influence of social media marketing to the purchase intention of local perfume brand. Based on the data, the second hypothesis is accepted. This finding supports the research of Gautam and Sharma (2017), social media marketing activities have a significant positive influence on customers’ PI for a luxury fashion brand. According Moslehpour et al. (2022), stated that that customer’s purchase intention will be even greater when the social media marketing is well managed. Hence, this study is validated the significant influence and important role of social media marketing towards purchase intention. This indicates that customers are tend to check the brand’s social media to gain more information about the brand and the product. Hence, this study is validated the significant influence and important role o of social media marketing towards purchase intention.
On the other hand, based on the table, the hypothesis of H3: There is significant influence brand image to the purchase intention of local perfume brand is rejected. This contradicts the findings of the prior study. The greater the brand image, the greater the product quality perceived by customers Grewal et al. (1998) and the greater the customer's purchase intention (Lin & Wang, 2012). Contradictory research by Yu, Lin, and Chen (2013) indicates that brand image has a favourable effect on purchase intent for luxury brand categories. This distinct outcome may emerge as a result of the presence of numerous new competitors in the Indonesian perfume market, which has resulted in a flood of brand options for consumers, making brand image irrelevant in determining purchase intent. In addition, customers prefer to use the product's quality as the basis for comparison to other brands, rather than the brand's image.
Another contradictory result showed that the hypothesis of H4: There is significant influence self-image to the purchase intention of local perfume brand is rejected. It shows a contrast with the previous study from Landon, Jr. (1974) that found self-image has a correlation with purchase intention. Supported by Kartika (2018) Research concluded that self-image has a substantial effect on purchasing intention. This contradiction result may indicate that customers do not see their own reflection through perfume or scent of perfume. They only buy perfumes with smells that they like, not how the smell of the perfume reflects on them. This may be due to the functional benefits of perfume, namely fragrances that are invisible to the eye so that customers do not associate themselves with perfume products.
Move on to the other hypothesis, H5: There is significant influence price to the purchase intention of local perfume brand is accepted. It is aligned with the Chowtanapanich and Chaipoopirutana (2014) study that finds price has significantly influence the purchase intention. As well as the findings of Hameed and Kanwal (2018) stated price has significant influence on the cosmetics purchase intention. Despite the intense competition between local perfume brands, price remains a significant element in determining purchase intention. This demonstrates that customers have a thorough understanding of the goods, as they are able to evaluate the product's quality to its price. Customers will select the product that offers them the most value for their money from among the different brands that offer similar products.
Moreover, the next hypothesis is H6: There is significant influence packaging to the purchase intention of local perfume brand. Based on the data, the sixth hypothesis is rejected. Its shows a contrast with the previous result study stated that packaging has several aspects that can improve the customers purchase intention, these attributes consist of the design, color supplied, the shapes, and many more that assist customers to distinguish the products and differentiate with the product of competitors (Olawepo & Ibojo, 2015). The result also shows a contradiction with statement by Kuvykaite (2009) that mentioned packaging has a positive influence on the purchase intention of the customers. This may occur because the functionality of perfume is the scent and the durability, therefore customers more rely on the product quality. From this result, it indicates that the first judgment from the customers not rely on the packing, the attractiveness of packaging doesn’t give a significant influence on the purchase process.
Move on to the other hypothesis, H7: There is significant influence product quality to the purchase intention of local perfume brand is accepted. It is supported the study by Tsiotsou (2006) that product quality has a beneficial effect on purchasing intent. Also, according to Zeehsan (2013) quality is an essential instrument for developing a competitive advantage. With a large number of t-values and other indicators, it is evident that product quality is of great importance. This indicates that consumers are more knowledgeable about the product's
materials, scents, characteristics, etc. As stated by Garvin (2007), product quality is a collection of features and overall product characteristics that have contributed to the demand fulfilment process (Sebastianelli & Tamimi, 2002). It indicates that customers are more inclined to respect a brand that provides them with a product that fulfills their needs and exceeds their perception of the product's quality. If the product meets the customer's quality expectations, they are more inclined to purchase it.
On the other hand, based on the table, the hypothesis of H8: There is significant influence product description to the purchase intention of local perfume brand is accepted. It is consistent with previous research indicating that product type (Moon et al., 2008), product price (Khare
& Rakesh, 2011b) and product image (Park et al., 2018) may influence potential customers' purchase intentions. Notably, the above characteristics are all associated with product description. As stated by Mou, Zhu, and Benyoucef (2020), product descriptions must conform to customer specifications, and every consumer must be able to comprehend the meaning and content of all information. Additionally, product descriptions must be practical and offer value to the tasks performed by customers. It shows that customers are more likely to look up to the product description first and the judgement will rely on the product description because the inability to physically access the products, especially the inability to try the scent of the perfume. Therefore, the product descriptions have to be complete, specific, and easy to understand since it has positive influence with purchase intention.
The next hypothesis which is H9: There is significant influence purchase intention and online purchase decision of local perfume brand is accepted. This result shows a positive alignment with the previous research. According to a study by Kim, Ferrin, and Rao (2008), a higher degree of customers' purchase intention, particularly in an online purchasing scenario, may increase the likelihood of actual purchase decisions. The association between these two variables demonstrates a positive and statistically significant outcome, which strengthens the case for accepting this hypothesis. This result confirmed the findings of Dapas, Sitorus, and Purwanto (2019), which stated that in the context of online shopping, customers consider a variety of factors prior to making a purchase decision, which may lead to changes in customers' choices, preferences, and purchasing behavior. Therefore, it is determined that customers' purchase intentions have a positive and significant effect on their purchasing decisions. The greater a customer's purpose to purchase, the greater their purchasing choice of a local perfume product in the context of online shopping.
Moreover, the next hypothesis is H10: There is significant influence E-WOM (online customer reviews, testimonials, and ratings) to the brand image of local perfume brand is rejected. Its shows a contrast with the previous result study of Bilgin (2018) that the more frequent search activities for an information it will affect a view or image of a brand in the minds of consumer so EWOM has a positive effect on brand image. From this result, it indicates that brand image is not influenced by E-WOM because the brand should create the image itself from the company not from the customers.
Move on to the next hypothesis, the H11: There is significant influence social media marketing to the brand image of local perfume brand is accepted. It supported statement of Godey et al.
(2016) that social media marketing is important tool to build brand image. And other sources stated that marketing activities in social media have a significant effect on consumers' brand image (Bilgin, 2018). It shows that customers are more likely judge the image of the brand
based on the social media activities that the brand created. Thus, it indicates that to gain a positive brand image, brand should create several social media marketing activities.
Next, the last hypothesis is H12: There is significant influence self-image to the brand image of local perfume brand is accepted. It supports a statement that stated that consumers have formed positive “self-brand connection” based on the congruency between the individual’s
“self-image” and the “brand-image” (Escalas & Bettman, 2005). It indicates that the customers consumers use specific brands as a narrative text to communicate who they are.
5. Conclusion
For answering the first research questions, it is found that the socio-economic profile of local perfume brand is the majority of the local perfume users are female in the age of 18-21 years old, located in East Java, have an occupation of student or college students who has monthly expenses below Rp1.000.000. It can be concluded that mostly the consumers are educated to make judgement toward the brands since their occupation mostly are in school and college.
With the amount of monthly expenses, it can be determined that respondents desire an affordable price, so the company should pay attention to price setting and market promotion.
Most respondents located in East Java, indicating that users choose local over global brands.
This socio-economic profile can be used to determine target market and design approaches.
Moreover, based on the questionnaire result, the majority of local perfume users have used local perfume for less than a year. 80% of the respondents buy 1-3 products in 6 months and 99.2% of the respondents buy their local product in marketplace such Shopee and Tokopedia.
Most of the respondents spend on local perfume product for Rp100.000 – Rp299.999 per product. Majority of the respondents influenced to buy local perfume product by their friends, it indicates that the opinion of closest person to the respondents, which are friends, have a great influence on respondents’ behaviour. Last, the highest perfume scent preference for the respondents is floral scent. Next, the consumers have habit to buy 1-3 products in 6 months with the range price Rp100.000 – Rp299.999 per product via marketplace platform. This consumption habits can be used as a strategy to make a product marketing, price range, and develop marketing strategy. It is suggested to have a better understanding of the socio- economic profile of local perfume users and their habits so that the company knows how to develop strategy precisely and effectively.
For answering the second research questions, it is found that online purchase decision of local perfume is influenced by the E-WOM (online consumer reviews, testimonials, and ratings), social media marketing which has 4 indicators such as entertainment, interaction, trendiness, and customization, price, product quality, product description through purchase intention as the mediating variables.
For answering the third research questions, after evaluating the factors influence the online purchase decision of local perfumes by evaluate the path coefficient value, the researcher comes with the three highest influence of online purchase decision. Product quality is the most influential factor of purchase intention for local perfume brand, followed by E-WOM (online consumer reviews, testimonials, and ratings), and product description. In this research, product quality consists of the quality of the scents (long lasting), material used, the smell of the scents, and functionality.
6. Acknowledgement
The authors would like to thank all the lecturers, family, friends, colleagues, interviewees, respondents for providing continuous support and willing to participate in this study
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