THE EFFECTIVENESS OF EWOM AS A MODERATING VARIABLE IN PURCHASE INTENTION FOR COSMETIC PRODUCTS IN JAKARTA

Abstract

Purpose The research aims to know the effectiveness of EWOM to become the moderating variable towards the relationship between customer’s expectation, perceived risk, and brand image with purchase intention for cosmetic products. Design/Method/Approach A questionnaire total of 23 are distributed digitally to 400 people and 370 are received. Kylie KYSHADOW and SEPHORE web site are used as reference. The questionnaires were distributed to people in Jakarta who use make-up regularly using quota sampling method. Data were tested with validity and reliability analysis using SPSS v.24. Regression analysis was used to test the impact of each variable and PROCESS analysis by Hayes was used to test the moderating impact of EWOM towards each relationship of independent variable on purchase intention individually and jointly. Findings The result of the regression analysis proved that customer’s expectation, and brand image does influence the purchase intention positively. It also proved that perceived risk influences the purchase intention negatively. However, PROCESS Macro analysis by Hayes by SPSS proved that EWOM does not have any moderating impact to both individual and combined relationship. Originality/Value Author believes that this is the first study ever conducted that applies the EWOM as the moderating variable towards the relationship between customer’s expectation, perceived risk, and brand image with purchase intention. Moreover, this study is different since it is derived the TPB theory by changing the variables which applied better in present situation.