The Influence of Brand Value and Perceived Quality on Purchasing Decisions for Facial Care Products Using E-WOM as Intervening Variable in Barru Regency
Mashur Razak1*, Rukman Pala2, Andi Tenripada3, Muhammad Rustam2, Ahmad Firman3, Syarifuddin2
1 IBK Nitro, Makassar, Indonesia
2 Badan Riset dan Inovasi Nasional (BRIN), Jakarta Indonesia
3 ITB Nobel, Makassar, Indonesia
ABSTRACT: This research aims to determine and analyze the influence of brand value and perceived quality on purchasing decisions for facial care products with Electronic Word of Mouth (E-WOM) as intervening variable in Barru Regency. This research approach uses survey research which takes samples from a population and uses a questionnaire as a data collection instrument. The research sample was users of facial care products at beauty clinics with 100 respondents in Barru Regency. The findings show that: (1) Brand value does not have positive effect and significant on purchasing decisions for facial care products in Barru Regency. (2) Perceived quality has positive effect and significant on purchasing decisions for facial care products in Barru Regency. (3) E-WOM has positive effect and significant on purchasing decisions for facial care products in Barru Regency. (4) Brand value has positive effect and significant on E-WOM facial care products in Barru Regency. (5) Perceived quality has positive effect and significant on E-WOM of facial care products in Barru Regency. (6) Brand value does not have positive effect and significant through E-WOM on purchasing decisions for care products in Barru Regency. (7) Perceived quality has positive effect and significant through E-WOM on purchasing decisions for facial care products in Barru Regency.
KEYWORDS: Brand Value, Perceived Quality, E-WOM, and Purchase Decisions.
INTRODUCTION
A brand is not just a name, logo or slogan. A brand is the identity of a product, service, or organization that differentiates it from its competitors and leaves a lasting impression in the minds of its consumers. A brand is not only what one sees but also what one experiences, believes, and thinks about product, service, or organization (Jin et al, 2019). A brand is a promise of quality, value and customer satisfaction communicated to a target market through multiple channels and touchpoints. Brands are strategic assets that can increase consumer loyalty, market share and profits for a product, service or organization (Kegoro & Justus, 2020; Hudiah et al, 2020).
Brand Value is an important factor that needs to be considered in the business world. Brands that have a strong and valuable position in the eyes of consumers can provide significant benefits for businesses, such as high consumer loyalty, strong competitiveness and a positive reputation (Ozkan et al, 2020; Razak et al, 2020). Brand value reflects consumer perceptions of the company’s brand and products. High brand value can help consumers remember and recognize products and brands, thereby influencing their purchasing decisions.
Companies that succeed in building strong brands that have high value in the eyes of consumers can differentiate their products from those of their competitors and increase consumer trust in their brands and products (Pearson, 2016). However, in an increasingly competitive and ever-changing business environment, it’s increasingly difficult to build and maintain a strong brand. Perception is the acquisition, interpretation, selection, and organization of sensory data. Various cognitive and neural processes allow us to be aware of our environment and act accordingly. Various factors, including attention, memory, expectations, emotions, motivation, and context, influence perception (Pourtois et al, 2013). Perception is an active and subjective construction of meaning, not an inert or objective reflection of reality.
Perception of product quality is one of the important things in making a purchasing decision from consumers. Before a decision is made to carry out a purchasing process, the first thing consumers do is consider the advantages of a product. Low product quality can reduce brand reputation and erode consumer trust (Domenico & Ding, 2023). Consumer perceptions of product quality can vary based on their individual level of experience and knowledge (Gunawan et al, 2021). To improve the perception of product quality in the eyes of consumers, companies must understand the factors that influence this perception and strive to improve the quality of their products. Brand, cost, and previous consumer experience are just a few examples of variables that can influence the perception of product quality (Pallant et al, 2022). When considering the product quality to purchase, consumers often look for well-known brands and consider price (Sulu et al, 2016). Additionally, consumers’ encounters with a product can influence their perception of its quality.
In digital era, consumers have simpler and faster access to information about the products they want to buy. Electronic Word of Mouth (E-WOM) has now become a phenomenon in the digital marketing realm which has become increasingly popular in recent years (Khalid et al, 2020). E-WOM refers to the influence customers have by rating and recommending goods or services on websites, social media platforms, and other online platforms.
E-WOM can be said to have quite a strong effect on a consumer’s decision process to carry out the purchasing process because it allows consumers to obtain accurate and reliable information about a product or service from previous users. Good reviews or recommendations from consumers can increase consumer trust and desire to use a product or service offered to consumers (Michler et al, 2020). Conversely, negative evaluations or comments about a product or service can reduce consumer confidence and reduce their desire to purchase that item.
Facial care is an activity that is commonly carried out by people who have a greater desire to keep their skin beautiful and healthy. Facial care products are one way to provide such care, and the market for facial care products continues to grow rapidly throughout the world. The quality of a person’s facial skin can be influenced by various things, such as environmental conditions in which they are active, daily lifestyle patterns, and even genetics. With so many facial skin problems, such as acne, dull skin, fine lines and wrinkles, many people choose facial care products as a solution (Arora et al, 2019).
However, now that there are many facial care brands available in the market, consumers may find it difficult to choose the right product. Therefore, it has become imperative to better understand the things that are able to encourage consumers to carry out the purchasing process, because it can make product manufacturers or distributors design several better and more effective product sales strategies so as to increase consumer confidence in the facial care products they use (Thu, 2019). In addition, better understanding of consumer preferences in choosing facial care products can help produce products that better suit consumer needs and desires.
Barru Regency is one of the districts in South Sulawesi Province which has quite large sales opportunities in the facial care industry. Facial care products in Barru Regency can include various types of products, such as facial cleansers, toners, serums, moisturizers, facial masks, and other skin care products (Tomshinsky, 2021). Many companies distribute facial care products in Barru Regency, both local brands and international brands. Some local brands that are quite popular in Barru Regency include Somethinc, Scarlett, MS Glow, Avoskin, Whitelab, Wardah, Mustika Ratu, Sariayu, and Viva. Meanwhile international brands such as Olay, L’Oreal, and The Body Shop also have a large market share in Barru Regency, this can be seen by the increasing number of these products available in beauty product display cases in various places in Barru Regency, besides that there are also more and more agents or resellers who offer facial care products to the public.
In addition, according to data from the ZAP Beauty Index 2020, one in four women visiting cosmetic clinics falls into the teenage age category. The majority of teenagers’ income is spent on beauty therapy. While the middle age (23 – 44 years) only uses 30 percent and those aged 45 – 65 years less than 5 percent, Generation Z (11-22 years) uses 70 percent. The second category captures the definition of beauty in the minds of Indonesian women, with 82.5 percent of respondents defining beauty as having bright, radiant skin and 46.7 percent defining beauty as improving overall appearance. The final category explores in depth the behavior regarding respondents’ skin care routines. This data shows that they are required to use six skin care products, namely facial cleanser, moisturizer, toner, serum, essence and eye cream. 92.4 percent of respondents stated that facial cleanser was the most important product. 77.2 percent of gen Y and Z respondents chose Instagram as the main source of information related to skin care and beauty as well as references that continue to grow; 55.9 percent chose YouTube; and 42.3 percent chose beauty bloggers.
The need for facial care products in Barru Regency is quite high, especially for women. This is supported by factors such as high awareness of the importance of facial care and increasing people’s income. Apart from that, the role of social media also contributes to increasing awareness of the importance of facial care and promoting facial care products in Barru Regency. Based on several phenomena regarding brand value, perceived quality, E-WOM, and purchasing decisions above, researchers were interested in conducting this research.
METHODOLOGY
This research uses quantitative methodology to test the influence of brand value and perceived quality on purchasing decisions for facial care products with E-WOM as an intervening variable at beauty clinics and facial care agents in Barru Regency in 2023. The sample selection technique for this research is according to Hair et al. (2010), the sample size must be at least 100 for factor analysis if it is less than 50. As a general rule, the minimum sample size is five times the number of variables to be researched and analyzed, and the sample size should be ten times the number of variables or 100 respondents. Data collection techniques are methods used to collect data and other information in the context of investigating a particular topic. In this research, respondents were observed, recorded, and asked to fill out a questionnaire.
The data analysis technique chosen must be in accordance with the research design and variables to be studied. This research analysis was carried out using SmartPLS 4 software. PLS is a component or variant-based Structural Equation Modeling (SEM) model. Structural Equation Modeling (SEM) techniques are used to compensate for the limitations of regression techniques. Covariance-Based Structural Equation Modeling (CB-SEM) and Partial Least Squares Path Modeling (PLS-SEM), also known as variance- or component-based SEM, are two of the most well-known forms of SEM.
III. RESULTS AND DISCUSSION
This descriptive analysis was carried out to provide an overview of brand value and perceived quality variables regarding purchasing decisions for facial care products via E-WOM in Barru Regency referring to the results of the frequency distribution of respondents’ answers and responses to the questions in the questionnaire. This analysis is used to provide an overview of the research results, whether they are included in the very high and very satisfactory category, or whether they are included in the low and unsatisfactory category, therefore it is necessary to classify the answer data for each respondent based on the data classification.
Table 1. Average summary of respondents’ responses.
No | Variable | Average Scor | Category |
1 | Brand Value (X1) | 381 | High |
2 | Perceived Quality (X2) | 352 | High |
3 | E-WOM (Z) | 354.75 | High |
4 | Purchasing Decisions (Y) | 365.8 | High |
According table 1, shown that the average response score of 100 respondents is included in the High category. This can be interpreted as the influence of brand value and perceived quality on purchasing decisions through E-WOM as intervening variable on users of facial care products which are generally quite good and very satisfying.
Outer Model Analysis.
A research concept and model cannot be tested in a prediction model between relational and causal relationships if it has not passed the purification stage in the measurement model. The measurement model (outer model) is used to test the construct validity and reliability of the instrument.
Figure 1. Graph Structural Model (See in PDF File)
The model as seen in Figure 1 is a model that specifies the relationship between latent variables and their indicators. It can also be said to be an outer model that defines how each indicator is interconnected with its latent variables. The tests carried out on the outer model are as follows:
Convergent validity of the measurement model with reflexive indicators can be seen from the correlation between the indicator scores and the construct scores. Individual indicators are considered reliable if they have a correlation value > 0.70. According to Figure 1, the calculation results show that all question items have a loading factor value > 0.70 or can be declared valid.
In the Fornell-Larcker criterion test, discriminant validity can be said to be good if the root of the AVE in the construct is higher than the correlation of the construct with other latent variables, whereas in the cross-loading test it must show a higher indicator value for each construct compared to the indicators for the other constructs as shown in Table 2.
Table 2. Fornell-Larcker criteria
Z | Y | |||
0.766 | ||||
Z | 0.640 | 0.821 | ||
Y | 0.598 | 0.731 | 0.756 | |
0.702 | 0.691 | 0.809 | 0.793 |
Average Variance Extracted (AVE) is used to determine whether discriminant validity requirements are achieved. The minimum value to state that reliability has been achieved is 0.50.
Table 3. Construct Reliability and Validity
Cronbach’s alpha | Composite reliability (rho_a) | Composite reliability (rho_c) | AVE | |
0.824 | 0.839 | 0.876 | 0.587 | |
Z | 0.837 | 0.849 | 0.892 | 0.674 |
Y | 0.849 | 0.857 | 0.888 | 0.571 |
0.851 | 0.866 | 0.894 | 0.628 |
In the table 3, it is found that each variable has an AVE value > 0.50, which means it meets the reliability requirements.
The un-dimensionality test is to ensure that there are no problems in measurement. The un-dimensionality test was carried out using composite reliability indicators and Cronbach’s alpha. In table 3, it is found that each question has an indicator value < 5, which indicates that all question items are free from multicollinearity.
Inner Model Analysis
Inner model analysis involves evaluating and testing a model consisting of constructs and the relationships between constructs in a study. This process involves assessing construct validity and reliability as well as testing proposed causal relationships. In addition, inner model analysis involves testing the relationships between the constructs in the model to determine the significance and strength of those relationships. This is done using statistical techniques such as path analysis or hypothesis testing to test the causal relationships proposed in the model.
Direct Effects
Table 4. Path Coefficient
Z | Y | |
0.306 | -0.046 | |
0.476 | 0.604 | |
Z | 0.343 |
According to Table 4, it can be explained that:
a) The direct influence of Brand Value (X1) on Purchasing Decisions (Y) is -0.046, which means that if Brand Value (X1) increases by one unit, then Purchasing Decisions (Y) can increase by 4.6%. This influence is negative.
b) The direct effect of Perceived Quality (X2) on Purchasing Decisions (Y) is 0.604, which means that if Perceived Quality (X2) increases by one unit, then Purchasing Decisions (Y) can increase by 60.4%. This influence is positive.
c) The direct effect of Brand Value (X1) on E-WOM (Z) is 0.306, which means that if Brand Value (X1) increases by one unit, then E-WOM (Z) can increase by 30.6%. This influence is positive.
d) The direct effect of Quality Perception (X2) on E-WOM (Z) is 0.476, which means that if Quality Perception (X2) increases by one unit, then E-WOM (Z) can increase by 47.6%. This influence is positive.
e) The direct effect of E-WOM (Z) on Purchasing Decisions (Y) is 0.343, which means that if E-WOM (Z) increases by one unit, then Purchasing Decisions (Y) can increase by 34.3%. This influence is positive.
Indirect effects
Table 5. Specific Indirect Effects
Specific indirect effects | |
X1 -> Z -> Y | 0.105 |
X2 -> Z -> Y | 0.163 |
According to Table 5, it can be explained that:
a) The indirect influence of Brand Value (X1) on Purchasing Decisions (Y) through E-WOM (Z) is 0.105, which means that if Brand Value (X1) increases by one unit then Purchasing Decisions (Y) can increase indirectly through E-WOM (Z) was 10.5%. This influence is positive.
b) The indirect effect of Quality Perception (X2) on Purchasing Decisions (Y) through E-WOM (Z) is 0.163, which means that if Quality Perception (X2) increases by one unit then Purchasing Decisions (Y) can increase indirectly through E-WOM (Z) was 16.3%. This influence is positive.
Total effects.
Table 6. Total effects.
Z | Y | |
0.306 | 0.151 | |
0.476 | 0.767 | |
Z | 0.343 |
According to table 6, it can be explained that:
a) The influence of Total Brand Value (X1) on Purchasing Decisions (Y) is 0.151, which means that if Brand Value (X1) increases by one unit then Purchasing Decisions (Y) can increase directly and indirectly through E-WOM (Z) amounting to 15.1%. This influence is positive.
b) The total influence of perceived quality (X2) on purchasing decisions (Y) is 0.767, which means that if perceived quality (X2) increases by one unit, purchasing decisions (Y) can increase directly and indirectly through E-WOM (Z) amounting to 76.7%. This influence is positive.
Effect Size (F-Square).
Table 7. F-Square.
Z | Y | |
0.100 | 0.003 | |
0.241 | 0.518 | |
Z | 0.194 |
According to Table 7, the largest effect size with the F Square criteria > 0.35 is the influence of Quality Perception (X2) on Purchasing Decisions (Y). And the medium effect, namely with F Square between 0.15 to 0.35, is the influence of Quality Perception (X2) on E-WOM (Z) and the influence of E-WOM (Z) on Purchasing Decisions (Z). The influence of Brand Value (X1) on E-WOM (Z) is small because the F Square value is in the range of 0.02 to 0.15. Meanwhile, the influence of Brand Value (X1) on Purchasing Decisions (Y) is ignored because it has an f square value < 0.02.
Coefficient of determination (R Square)
Table 8. R-Square.
R-square | R-square adjusted | |
Z | 0.525 | 0.515 |
Y | 0.712 | 0.703 |
Based on the results of the analysis of the coefficient of determination in Table 8, it shows that:
a) The R Square value of the joint or simultaneous influence of Brand Value (X1) and Purchase Decision (X2) on E-WOM (Z) is 0.525 with an adjusted r square value of 0.515. So, it can be explained that all exogenous constructs of Brand Value (X1) and Purchase Decisions (X2) simultaneously influence E-WOM (Z) by 0.515 or 51.5%. Because the Adjusted R Square is in the range of 33% – 67%, the influence of all exogenous constructs of Brand Value (X1) and Purchase Decision (X2) on E-WOM (Z) is moderate or moderate.
b) The R Square value of the joint or simultaneous influence of brand value (X1), Purchasing Decisions (X2), and E-WOM (Z) on Purchasing Decisions (Y) is 0.712 with an adjusted r square value of 0.703. So, it can be explained that all exogenous constructs of Brand Value (X1), Purchase Decision (X2), and E-WOM (Z) simultaneously influence Purchase Decision (Y) by 0.703 or 70.3%. Because the Adjusted R Square is more than 67%, the influence of all exogenous constructs of Brand Value (X1), Purchasing Decisions (X2), and E-WOM (Z) on Purchasing Decisions (Y) is strong.
Hypothesis test
Hypothesis testing in the proposed research can be seen from the large P value. If the P value < 0.05 then Ho is rejected and Ha is accepted, or has a significant effect which is correlated with the t-statistic value, where the t-statistic value > t-table. Usually, the basis for testing regression results is carried out with a confidence level of 95% or with a significance level of 5% (α = 0.05). The criteria for the t-test are:
1) If the significance value of the t test is > 0.05 then H₀ is accepted and Ha is rejected. This means that there is no influence between the independent variable and the dependent variable.
2) If the significance value of the t test is <0.05 then H₀ is rejected and Ha is accepted. This means that there is an influence between the independent variable and the dependent variable.
Table 9. Path coefficient result
Original sample (O) | Sample mean (M) | Standard deviation (STDEV) | T statistics (|O/STDEV|) | P values | |
(X1) -> (Z) | 0.306 | 0.321 | 0.106 | 2.890 | 0.004 |
(X1) -> (Y) | -0.046 | -0.056 | 0.114 | 0.400 | 0.689 |
(Z) -> (Y) | 0.343 | 0.362 | 0.114 | 3.022 | 0.003 |
(X2) -> (Z) | 0.476 | 0.473 | 0.086 | 5.527 | 0.000 |
(X2) -> (Y) | 0.604 | 0.594 | 0.101 | 5.988 | 0.000 |
Table 10. Total effects result
Original sample (O) | Sample mean (M) | Standard deviation (STDEV) | T statistics (|O/STDEV|) | P values | |
(X1) -> (Z) | 0.306 | 0.321 | 0.106 | 2.890 | 0.004 |
(X1) -> (Y) | 0.059 | 0.065 | 0.103 | 0.578 | 0.563 |
(Z) -> (Y) | 0.343 | 0.362 | 0.114 | 3.022 | 0.003 |
(X2) -> (Z) | 0.476 | 0.473 | 0.086 | 5.527 | 0.000 |
(X2) -> (Y) | 0.767 | 0.764 | 0.081 | 9.450 | 0.000 |
Table 11. Specific Indirect Effects Result
Original sample (O) | Sample mean (M) | Standard deviation (STDEV) | T statistics (|O/STDEV|) | P values | |
(X1) -> (Z) -> (Y) | 0.105 | 0.120 | 0.064 | 1.633 | 0.103 |
(X2) -> (Z) ->(Y) | 0.163 | 0.170 | 0.060 | 2.708 | 0.007 |
Discussion
The results of hypothesis testing and data processing obtained several explanations related to hypothesis testing and data processing as follows:
1) The influence of brand value on purchasing decisions.
To test this hypothesis, the author used a simple linear regression method with a significance level of 5%. Based on the results of data analysis, the calculated t value was 0.400. The calculated t value is smaller than the t table value of 1.984. This means that brand value does not have a positive and significant effect on purchasing decisions for facial care products in Barru Regency. Thus, the proposed hypothesis is rejected.
The author can conclude that brand value is not the main factor influencing consumers in purchasing facial care products in Barru Regency. Consumers consider other factors such as quality, price, benefits and recommendations from other people. Brand value is only an additional attribute that adds value to facial care products, but is not the main determinant in purchasing decisions. Therefore, the author suggests that manufacturers or marketers of facial care products in Barru Regency improve the quality, price, benefits and promotion of their products in order to attract consumer interest and increase their loyalty.
2) The influence of perceived quality on purchasing decisions.
The hypothesis tested is that perceived quality has a positive and significant effect on purchasing decisions for facial care products in Barru Regency. To test this hypothesis, the author carried out path analysis. The results of path analysis show that the path coefficient value between perceived quality and purchasing decisions is 0.612. This value shows that there is a positive influence between perceived quality and purchasing decisions, meaning that the better the perceived quality of facial care products, the higher the consumer’s purchasing decisions.
Apart from that, the author also carried out a path significance test (t-test) using bootstrapping with 5000 samplings. The results of the path significance test show that the calculated t value between perceived quality and purchasing decisions is 5.988 and the p value is 0.000. The calculated t value is greater than the t table value (1.96) and the p value is smaller than alpha (0.05). This means that the hypothesis is accepted, namely that perceived quality has a positive and significant effect on purchasing decisions for facial care products in Barru Regency.
Thus, it can be concluded that perceived quality is an important factor that influences consumer purchasing decisions for facial care products in Barru Regency. The author recommends that manufacturers or sellers of facial care products can improve the quality of their products in order to increase consumer satisfaction and loyalty.
3) The influence of E-WOM on purchasing decisions.
In this research, the author wants to know the influence of E-WOM (electronic word of mouth) on purchasing decisions for facial care products in Barru Regency. The author uses the SEM-PLS (structural equation modeling-partial least squares) method to test the proposed hypothesis. The hypothesis proposed is that E-WOM has a positive and significant effect on purchasing decisions for facial care products in Barru Regency.
To test this hypothesis, the authors conducted path analysis. In this case, the independent variable is E-WOM and the dependent variable is the purchasing decision. The results of path analysis show that E-WOM has a positive and significant influence on purchasing decisions for facial care products in Barru Regency. This can be seen from the calculated t value of 3.022 which is greater than the t table value of 1.984 at a significance level of 5%. Apart from that, the p value of 0.003 which is smaller than 0.05 also indicates that the hypothesis is accepted. This means that the higher the E-WOM, the higher the decision to purchase facial care products in Barru Regency.
This positive and significant influence can be explained by the diffusion of innovation theory proposed by Rogers (2003). This theory states that E-WOM is a source of information that can influence consumer attitudes and behavior towards a product or service. E-WOM can be in the form of reviews, testimonials, recommendations, or comments submitted by other consumers via social media, blogs, forums, or websites. E-WOM can provide information about the quality, features, benefits, price, or experience of using products or services that are of interest to potential consumers. E-WOM can also build trust and credibility of the products or services offered by sellers. Thus, E-WOM can influence consumer attitudes and behavior in evaluating alternatives, forming preferences, and ultimately decisions to purchase products or services.
From the results of this research, the author can provide several theoretical and practical implications. Theoretically, this research can contribute to the development of literature on the influence of E-WOM on purchasing decisions for facial care products. This research can also be a reference for future researchers who want to conduct similar research with different variables or contexts. Practically, this research can provide input for facial care product businesses in Barru Regency to improve their marketing strategies through the use of E-WOM. This research can also provide information for consumers of facial care products in Barru Regency to be more selective and critical in searching for and considering information from E-WOM before making purchasing decisions.
4) The influence of brand value on E-WOM.
In this research, the author wants to know the influence of brand value on E-WOM (electronic word of mouth) of facial care products in Barru Regency. The hypothesis proposed is that brand value has a positive and significant effect on E-WOM of facial care products in Barru Regency.
Based on the results of path analysis, a calculated t value of 2.890 and a p value of 0.004 were obtained for the influence of brand value on E-WOM. The calculated t value is greater than the t table value of 1.984 at a significance level of 5%. The p value is also smaller than 0.05. This shows that the influence of brand value on E-WOM is positive and significant. Thus, the hypothesis is accepted.
The positive and significant influence of brand value on E-WOM means that the higher the brand value of facial care products, the higher the E-WOM generated. E-WOM is communication between consumers about a product or brand via electronic media, such as the internet, social media, or applications. E-WOM can take the form of reviews, testimonials, recommendations, or comments about a product or brand. E-WOM can influence consumer perceptions, attitudes and behavior towards a product or brand.
Brand value is the value attached to a brand that can provide benefits for companies and consumers. Brand value reflects the quality, reputation, loyalty, awareness and associations that a brand has. Brand value can increase consumer trust, preferences and purchasing intentions towards a product or brand.
From the results of this research, it can be concluded that brand value is an important factor that can increase the E-WOM of facial care products in Barru Regency. Therefore, companies that produce or sell facial care products in Barru Regency must increase their brand value by improving product quality, building a good reputation, creating consumer loyalty, increasing consumer awareness, and developing positive associations with consumers.
5) The influence of perceived quality on E-WOM.
In this research, the author wants to know the influence of perceived quality on E-WOM (electronic word of mouth) for facial care products in Barru Regency. The hypothesis tested is that perceived quality has a positive and significant effect on E-WOM of facial care products in Barru Regency. The results of path analysis show that the path coefficient between perceived quality and E-WOM is 0.512 with a calculated t value of 5.527 and a p value of 0.000. The calculated t value is greater than the t table value (1.984) and the p value is smaller than 0.05. This means that the hypothesis is accepted. This means that perceived quality has a positive and significant effect on E-WOM of facial care products in Barru Regency.
It can be concluded that the better the perceived quality that consumers have for facial care products, the more likely they are to spread positive information about these products through electronic media such as the internet, email, social media, etc. This is in accordance with the theory put forward by Kotler and Keller (2016) which states that perceived quality is a consumer’s assessment of the level of superiority or weakness of a product or service. Perceived quality can influence consumer attitudes and behavior, including E-WOM. So that, E-WOM can influence consumer purchasing decisions and brand reputation.
6) Influence of brand value on purchasing decisions with E-WOM as intervening variable.
Based on the results of the hypothesis test that has been carried out, it can be seen that brand value does not have a positive and significant effect through E-WOM on purchasing decisions for facial care products in Barru Regency. This means that the higher the brand value of a facial care product, it will not increase positive E-WOM from consumers, so it does not influence consumer purchasing decisions. This hypothesis was rejected because the calculated t value of 1.633 was smaller than the t table value of 1.984 and the p value of 0.103 was greater than alpha of 0.05.
One reason that might explain this result is that consumers in Barru Regency pay more attention to the quality and benefits of facial care products than brand value. Consumers tend to seek information from more credible and objective sources, such as online reviews, testimonials, or recommendations from friends and family. Therefore, brand value is not an important factor in forming positive E-WOM. Apart from that, consumers are also more rational in making purchasing decisions, namely by considering other factors such as price, availability and suitability of the product for their skin type.
Thus, it can be concluded that brand value does not have a positive and significant influence through E-WOM on purchasing decisions for facial care products in Barru Regency. The implication of these results is that manufacturers or sellers of facial care products must focus more on improving product quality and benefits, as well as providing consumers with accurate and honest information about products. Apart from that, producers or sellers must also expand their market reach by using social media or other online platforms to reach potential consumers and increase consumer loyalty.
7) The influence of perceived quality on purchasing decisions with E-WOM as intervening variable.
Based on the results of the hypothesis tests that have been carried out, the results obtained show that perceived quality has a positive and significant effect through E-WOM on purchasing decisions for facial care products in Barru Regency. This means that the better the perceived quality of facial care products, the greater the influence of E-WOM on consumer purchasing decisions. Conversely, the worse the perceived quality of facial care products, the smaller the influence of E-WOM on consumer purchasing decisions.
This positive and significant influence can be proven by a calculated t value of 2.708 and a p value of 0.007. The calculated t value is greater than the t table value of 1.984, which indicates that the hypothesis is accepted. The p value is less than 0.05, indicating that the effect is statistically significant.
From the results of this research, it can be concluded that perceived quality is an important factor influencing E-WOM and purchasing decisions for facial care products in Barru Regency. Therefore, manufacturers or sellers of facial care products must improve the quality of their products in order to build a good quality perception in the eyes of consumers. Apart from that, producers or sellers must also utilize E-WOM as a means of promotion and communication with consumers in order to increase purchasing interest and consumer loyalty.
CONCLUSION
Based on the research results, the conclusions obtained are (1) brand value does not have positive effect and significant on purchasing decisions for facial care products in Barru Regency; (2) perceived quality has positive effect and significant on purchasing decisions for facial care products in Barru Regency; (3) E-WOM has positive effect and significant on purchasing decisions for facial care products in Barru Regency; (4) Brand value has positive effect and significant on E-WOM facial care products in Barru Regency; (5) perceived quality has positive effect and significant on E-WOM facial care products in Barru Regency; (6) brand value does not have positive effect and significant via E-WOM on purchasing decisions for care products in Barru Regency; (7) perceived quality has positive effect and significant through E-WOM on purchasing decisions for facial care products in Barru Regency. The advice given that it’s better to add other variables that can influence purchasing decisions for facial care products, such as price, promotions or lifestyle. Next, we can test the influence of brand value and perceived quality on consumer loyalty and repurchase intentions. In addition, researchers can conduct similar research in other areas that have different consumer characteristics than Barru Regency.
ACKNOWLEDGMENTS
Thank you to all university leaders and all parties involved in this research.
DISCLOSURE
The author reports no conflicts of interest in this work. All authors contributed and were actively involved in the research.
REFERENCES
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The Influence of Brand Value and Perceived Quality on Purchasing Decisions for Facial Care Products Using E-WOM as Intervening Variable in Barru Regency
Mashur Razak1*, Rukman Pala2, Andi Tenripada3, Muhammad Rustam2, Ahmad Firman3, Syarifuddin2
1 IBK Nitro, Makassar, Indonesia
2 Badan Riset dan Inovasi Nasional (BRIN), Jakarta Indonesia
3 ITB Nobel, Makassar, Indonesia
Vol 4 No 3 (2024): Volume 04 Issue 03 March 2024
Article Date Published : 11 March 2024 | Page No.: 174-182
Abstract :
This research aims to determine and analyze the influence of brand value and perceived quality on purchasing decisions for facial care products with Electronic Word of Mouth (E-WOM) as intervening variable in Barru Regency. This research approach uses survey research which takes samples from a population and uses a questionnaire as a data collection instrument. The research sample was users of facial care products at beauty clinics with 100 respondents in Barru Regency. The findings show that: (1) Brand value does not have positive effect and significant on purchasing decisions for facial care products in Barru Regency. (2) Perceived quality has positive effect and significant on purchasing decisions for facial care products in Barru Regency. (3) E-WOM has positive effect and significant on purchasing decisions for facial care products in Barru Regency. (4) Brand value has positive effect and significant on E-WOM facial care products in Barru Regency. (5) Perceived quality has positive effect and significant on E-WOM of facial care products in Barru Regency. (6) Brand value does not have positive effect and significant through E-WOM on purchasing decisions for care products in Barru Regency. (7) Perceived quality has positive effect and significant through E-WOM on purchasing decisions for facial care products in Barru Regency.
Keywords :
Brand Value, Perceived Quality, E-WOM, and Purchase Decisions.References :
- Arora, R., Aggarwal, G., Dhingra, G. A., & Nagpal, M. (2019). Herbal active ingredients used in skin cosmetics. Asian J. Pharm. Clin. Res, 12(9), 7-15.
- Domenico, G., & Ding, Y. (2023). Between brand attacks and broader narratives: how direct and indirect misinformation erode consumer trust. Current Opinion in Psychology, 101716.
- Gunawan, H., Betan, A., Hanafi, A., Yusriadi, Y., & Bugis, M. (2021). Implementation of Organizational Culture and Work Discipline to Patient Satisfaction through Quality of Health Services in Indonesia. In Proceedings of the 11th Annual International Conference on Industrial Engineering and Operations Management Singapore.
- Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis (7th Edition). NJ: Prentice Hall.
- Hudiah, A., Pratama, N. H., & Qur’ani, B. (2020). Innovation of Traditional Cakes Made of Vegetables and Fruits by Craft Subject Teachers’ working Group. Paulus Journal of Society Engagement, 1(2).
- Jin, C., Yoon, M., & Lee, J. (2019). The influence of brand color identity on brand association and loyalty. Journal of Product & Brand Management, 28(1), 50-62.
- Kegoro, H. O., & Justus, M. (2020). Critical review of literature on brand equity and customer loyalty. International Journal of Business, Economics and Management, 7(3), 146-165.
- Khalid, J., Abbas, A., Akbar, R., Mahmood, M. Q., Tariq, A., Khatoon, M., … & Din, M. J. U. (2020). Significance of electronic word of mouth (E-WOM) in opinion formation. International Journal of Advanced Computer Science and Applications, 11(2).
- Kotler, P. & Keller, K. L. (2016). Marketing management (15th ed.). Pearson Education.
- Michler, O., Decker, R., & Stummer, C. (2020). To trust or not to trust smart consumer products: a literature review of trust-building factors. Management Review Quarterly, 70, 391-420.
- Özkan, P., Süer, S., Keser, İ. K., & Kocakoç, İ. D. (2020). The effect of service quality and customer satisfaction on customer loyalty: The mediation of perceived value of services, corporate image, and corporate reputation. International Journal of Bank Marketing, 38(2), 384-405.
- Pallant, J. L., Karpen, I. O., & Sands, S. J. (2022). What drives consumers to customize products? The mediating role of brand experience. Journal of Retailing and Consumer Services, 64, 102773.
- Pearson, S. (2016). Building brands directly: creating business value from customer relationships. Springer.
- Pourtois, G., Schettino, A., & Vuilleumier, P. (2013). Brain mechanisms for emotional influences on perception and attention: What is magic and what is not. Biological psychology, 92(3), 492-512.
- Razak, M., Hidayat, M., Launtu, A., Kusuma Putra, A. H. P. A., & Bahasoan, S. (2020). Antecedents and consequence of brand management: empirical study of Apple’s brand product. Journal of Asia Business Studies, 14(3), 307-322.
- Rogers, E. M. (2003). Diffusion of Innovations (5 ed.). The Free Press.
- Sulu, A. C., Saerang, D. P., & Massie, J. D. (2016). The analysis of consumer purchase intention towards cosmetic products based on product origin. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 4(2).
- Thu, T. M. (2019). The Influences of Marketing Mix Elements on Consumer Purchase Intention of Cosmetic Products. Yangon University of Economics.
- Tomshinsky, I. (2021). Protection from Sun and Wind: History of Cosmetics and Fashion Accessories Series. Xlibris Corporation.
Author's Affiliation
Mashur Razak1*, Rukman Pala2, Andi Tenripada3, Muhammad Rustam2, Ahmad Firman3, Syarifuddin2
1 IBK Nitro, Makassar, Indonesia
2 Badan Riset dan Inovasi Nasional (BRIN), Jakarta Indonesia
3 ITB Nobel, Makassar, Indonesia
Article Details
- Issue: Vol 4 No 3 (2024): Volume 04 Issue 03 March 2024
- Page No.: 174-182
- Published : 11 March 2024
- DOI: https://doi.org/10.55677/ijssers/V04I3Y2024-02
How to Cite :
The Influence of Brand Value and Perceived Quality on Purchasing Decisions for Facial Care Products Using E-WOM as Intervening Variable in Barru Regency. Mashur Razak, Rukman Pala, Andi Tenripada, Muhammad Rustam, Ahmad Firman, Syarifuddin , 4(3), 174-182. Retrieved from https://ijssers.org/single-view/?id=9487&pid=9478
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