PURCHASE INTENTIONS OF YOUNG JAKARTANS’ WOMEN TOWARDS PREMIUM COSMETICS

Abstract

Cosmetic industry is a big business. The total sale of cosmetics worldwide in 2011 was about USD 426 billion. In the last 20 years, in average, cosmetic market has grown by 4.5% annually. In Indonesia, the sales of cosmetics have increased up to 15% with the ascension from IDR 8.5 trillion in 2011 become IDR 9.76 trillion in 2012. The condition of cosmetic brand in term of rank is always changing year by year. So, it is necessary for cosmetic firm to know more what aspects that impact their customer that makes their customer decide to purchase the product and could make their customer to repurchase the product. This research is conducted to observe the Purchase Intentions of Young Jakarta’s Women towards Premium Cosmetics. The samples of this study were 215 of respondents in Jakarta shopping mall using Non-probability sampling with the type of purposive sampling. This research used structural equation modeling. The result of this research showed that country of origin, Brand Image and Brand Trust has impact to purchase intention. So it is recommended that Cosmetic Firm in Jakarta could be more deeply explain the product especially for the native country of product.