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中國文化大學商學院國際企業管理學系
碩士論文
Master Thesis
Master program, Department of International Business Administration
College of Business
Chinese Culture University
Halal 認證對印尼消費者購買意
圖之影響聯合分析法之應用
The Influence of Halal Certification in Indonesian Consumers Purchase
Intention: An Application of Conjoint Analysis
指導教授:任立中
Advisor : Li-Chung Jen, Ph.D.
研 究 生:林惠麗
Graduate Student : Velly Anatasia
中華民國 103 年 5 月
May, 2014
iii
The Influence of Halal Certification in Indonesian Consumers Purchase Intention: An
Application of Conjoint Analysis
Student：Velly Anatasia Advisor：Prof. Li-Chung Jen
C h i n e s e C u l t u r e U n i v e r s i t y
A B S T R A C T
Recently, increasing consumer demand has caued the adage to transform to “have
what sells”. To keep up with the ever-changing demand of cosmetics, producers and
retailers try to supply a product that has the group of attributes most preferred by their
customers. This study was conducted in developing country – Indonesia. After
reviewing relevant literature, a survey was conducted taking product namely cosmetics.
These originated the motivation of this study. The purpose of this study is to investigate
the effect of product attributes which consist of Halal certification, ingredient,
advertisement, endorser recommendation, and volume & price cues on purchase
intention. Furthermore, this research also highlights the moderating effects of
consumer’s demographic consist of gender, age, and social status.
Halal certification, ingredient, advertisement, endorser recommendation, and
price are independent variables; purchase intention is the independent variable; and
consumer demographic is the moderator variable. Full-profile Approach of Conjoint
Analysis has been used to measure the effect of product attributes on consumer
intention, but has been classified based on consumers demographic. A total 800
questionnaires were distributed too 800 consumers in Indonesia. In addition, this
research is valuable for marketers who work on related topics according to cosmetic
attributes perspective or many foreign companies who try to enter Indonesian market,
including Taiwanese companies.
Keywords: halal, conjoint analysis, purchase intention, demographic
iv
ACKNOWLEDGEMENT
First of alk, I would like to express my deep gratitude to all people who contribute
valuable assistance and supports during the completion of this thesis. First of all, it
would be my honor to express my sincere gratitude to my advisor, Professor Li-Chung,
Jen, for his continuous support of my thesis, for his patience, motivation, enthusiasm,
and immense knowledge. I could not have imagined finishing this work without his
guidance and advice.
There are not enough words to express my gratitude to my dear family for their
unconditional love and understanding as well as their continuously encouragement and
support. I could not finish this research and completing the master degree graduation
requirement within the planned time without all of your support and care.
Last but not least, I would like to mention my trusted friends and relatives in my
home country – Delly Aditya, Resly Gunawan, Primasatria, Multisari, Merry Ana,
Novita, Dewi Hu, Handoko Luo, Hendra S., Nadia A., Alfiyatul Q, Memo, Agustina,
Suni and all of my friends in Taiwan who I cannot write one by one, for their helps and
encouragements throughout this hard time and for always being by my side whenever I
need. Unforgettable, I would like to thank all of people that I cannot mention here
because of limited space. Without these important people, it is no doubt that my thesis
would not be completed and obtains my master degree in Chinese Culture Univerity.
.
Velly Anatasia
20 May 2014
v
CONTENTS
A B S T R A C T .......................................................................................................... iii
ACKNOWLEDGEMENT ........................................................................................... iv
LIST OF TABLES ....................................................................................................... ix
LIST OF FIGURES ..................................................................................................... ix
CHAPTER ONE INTRODUCTION ............................................................................ 1
1.1.Research Background and Motivation. ........................................................... 1
1.2.Research Objectives. ...................................................................................... 6
1.3.Research project and scope of study ............................................................... 7
1.4.Research Procedure ........................................................................................ 8
1.5.Research Procedure ........................................................................................ 8
CHAPTER TWO LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT10
2.1.Halal Certification........................................................................................ 10
2.1.1 Halal: an overview .............................................................................. 10
2.1.2 Religious Commitment ......................................................................... 10
2.1.3 Halal Certification Towards Products .................................................. 11
2.1.4 The Effect of Halal Certification on Consumer Purchase Intention ...... 12
2.2.Ingredient .................................................................................................... 13
2.2.1 Natural Ingredient ............................................................................... 13
2.2.2 Biotech Ingredient ............................................................................... 14
2.2.3 The Effect of Ingredient on Consumer Purchase Intention .................... 15
2.3.Media Advertisement ................................................................................... 15
2.3.1Advertising definitions and importance ................................................ 15
2.3.2Television Advertising .......................................................................... 16
2.3.3Radio Advertising ................................................................................. 17
2.3.4Print Advertising .................................................................................. 17
2.3.5Social Media Networks ......................................................................... 18
2.3.6In-store Atmospherics ........................................................................... 18
2.3.7The Effect of Advertisement on Consumer Purchase intention .............. 19
2.4.Endorser’s Recommendation........................................................................ 20
2.4.1Expert Endorser ................................................................................... 20
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2.4.2Expert Endorser ................................................................................... 21
2.4.3Consumer Endorser ............................................................................. 21
2.4.4The Effect of Endorser Recommendation on Consumer Purchase
intention ............................................................................................... 22
2.5.Price ............................................................................................................ 23
2.5.1The Effect of Price on Consumer Purchase intention ............................ 24
2.6.Purchase Intention........................................................................................ 25
2.6.1Meaning of Purchase Intention ............................................................. 25
2.6.2The Role of Purchase Intention ............................................................. 26
2.6.3Characteristics of Purchase Intention ................................................... 27
2.7.Demographic ............................................................................................... 28
2.7.1Gender ................................................................................................. 28
2.7.2Age....................................................................................................... 29
2.7.3Social Class ......................................................................................... 29
2.7.4The Moderating Effect of Gender, Age, and Social Status ..................... 30
CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY ....................... 32
3.1.The Conceptual Framework of Study. .......................................................... 32
3.2.Summary of Research Hypotheses ............................................................... 32
3.3.Construct Measurement ............................................................................... 33
3.3.1Independent Variables: Halal certification, ingredient, advertisement,
recommendation, price and Dependent Variable: Purchase Intention .... 33
3.3.2Moderator Variable: Demographic ...................................................... 34
3.3.3The Importance of Halal Certification .................................................. 35
3.3.4The Information of Respondent’s Cosmetics.......................................... 36
3.3.5The Information of Respondents ........................................................... 39
3.4 Model: Full – Profile Approach of Conjoint Analysis ................................... 40
3.4.1Introduction ......................................................................................... 40
3.4.2Conjoint Measurement ......................................................................... 40
3.4.3Full-profile Approach of Conjoint Analysis........................................... 41
3.5 Questionnaire Design ................................................................................... 42
3.6 Sampling Plan .............................................................................................. 43
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3.7 Data Analysis Procedures ............................................................................. 44
3.7.1Descriptive Statistic Analysis................................................................ 44
3.7.2Purification and Reliability of the Measurement Variables ................... 44
3.7.3Interrelationships between Research Variables ..................................... 45
CHAPTER FOUR RESULTS AND DATA ANALYSIS ........................................... 46
4.1.The Result for Indonesian Dataset (Total respondents: 800) ......................... 46
4.1.1Descriptive Statistic ............................................................................. 46
4.1.2Consumer Behavior .............................................................................. 47
4.1.3Descriptive Analysis for Indonesian Religiosity .................................... 55
4.1.4Factor Analysis for Religiosity Indonesian Respondents ....................... 55
4.1.5Independent t-test for Indonesian Religiosity Preference ...................... 57
4.2.Part-worth Series ......................................................................................... 58
4.2.1Conjoint Analysis for Indonesian Consumer Preference ....................... 58
4.2.2Hypothesis Testing for Indonesian Market ............................................ 60
4.2.3Average Importance Scores .................................................................. 72
4.2.4Comparison of Respondent’s Gender, Age, and Social Class ................. 74
4.3.Targeting on the Customer’s Preference ....................................................... 78
CHAPTER FIVE CONCLUSIONS AND SUGGESTIONS ....................................... 81
5.1.Conclussions for Indonesian Market ............................................................ 81
5.2.Suggestions .................................................................................................. 83
5.3.Limitations and Future Research Directions ................................................. 84
REFERENCES .......................................................................................................... 86
APPENDICES ........................................................................................................... 96
QUESTIONNAIRE ................................................................................................... 96
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LIST OF TABLES
Table 1.1 Scope of study ........................................................................................... 7
Table 3.1 Summary of hypotheses ........................................................................... 32
Table 3.2 Conjoint study design............................................................................... 33
Table 3.3 Information of respondent’s cosmetics ..................................................... 35
Table 3.4 Information of respondent’s items ............................................................ 37
Table 3.5 Information of dummy variable ................................................................ 40
Table 4.1 Descriptive analysis for characteristics of Indonesian respondents............ 45
Table 4.2 Descriptive analysis for respondent’s cosmetics brand name usage in
Indonesia ................................................................................................. 46
Table 4.3 Descriptive analysis for respondent’s cosmetics functions in Indonesia .... 47
Table 4.4 Descriptive analysis for respondent’s skin problem experience in
Indonesia ................................................................................................. 48
Table 4.5 Descriptive analysis for respondent’s usage of cosmetics in Indonesia ..... 49
Table 4.6 Descriptive analysis for respondent’s cosmetic Usage Cost in Indonesia .. 49
Table 4.7 Descriptive analysis for respondent’s place of purchase cosmetics in
Indonesia ................................................................................................. 51
Table 4.8 Descriptive analysis for respondent’s cosmetic advertisement usage in
Indonesia ................................................................................................. 52
Table 4.9 Descriptive analysis for Indonesian consumer religiosity attitude ............. 53
Table 4.10 Results of factor analysis and reliability analysis tests on worship value . 54
Table 4.11 Results of factor analysis and reliability analysis tests on emotional
religiosity ................................................................................................ 54
Table 4.12 Independent sample t-test for religiosity ................................................. 55
Table 4.13 Conjoint analysis for Indonesian consumer preference ........................... 56
Table 4.14 Utilities (part-worth) for male conjoint profiles ...................................... 57
Table 4.15 Utilities (part-worth) for female conjoint profiles ................................... 61
Table 4.16 Utilities (part-worth) for male conjoint profiles based on social class ..... 64
Table 4.17 Utilities (part-worth) for female conjoint profiles based on social class .. 67
Table 4.18 Average importance scores in different level of age ............................... 69
Table 4.19 Average importance scores in different level of social class ................... 70
Table 4.20 The result of targeting analysis ............................................................... 75
Table 5.1 Hypotheses and results of empirical tests ............................................... 77
ix
LIST OF FIGURES
Figure 1-1 Indonesian cosmetic market share............................................................. 8
Figure 1-2 Indonesian cosmetic market growth. ......................................................... 8
Figure 1-3 Indonesian cosmetic’s sales ...................................................................... 9
Figure 1-4 Research flow. ........................................................................................ 10
Figure 3-1 Conceptual model ................................................................................... 31
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CHAPTER ONE
INTRODUCTION
1.1. Research Background and Motivation
The goal of any business is to satisfy the needs of its customers, and the cosmetic
business is no different. The old marketing motto was to “sell what you have”, but
recently increasing consumer demand has caused the adage to transform to “have what
sells” (Maynard, 2001). To keep up with the ever-changing demand of cosmetics,
producers and retailers must supply a product that has the group of attributes most
preferred by their customers.
During the past two decades, the world has become more and more global, as
domestic markets have become saturated and companies have become more
international. The ideal strategy in the transition to the international marketplace would
be to produce, package and sell the exact same product that was sold in the domestic
market. This strategy takes advantage of company efficiencies. This concept is
supported by a variety of researchers (Samli, 1995; Kim et al, 2013) who declare that 75
per cent of world market may be quite alike culturally. Yet, this might be an egocentric
perpective of the world, ignoring the unique qualities of each culture. In essence, what
about the remaining 25 per cent difference in culture which may present the most
powerful influence in the decision making process. They are underlying components
that influence culture such as religion, family, customs, politics, weather, etc, which
must be taken into account when marketing products on an international basis.
Consequently, it is important for marketer to be aware of the 25 per cent differences in
the world market to promote their product properly. Marketing managers are directly
concerned with developing the right product that must satisfy customers’ needs and
wants. Therefore, it is of great to understand for Taiwanese companies who want to
expand their business abroad, especially in country that has very different in culture
such as Indonesia.
Indonesia is one of the largest economy in Southeast Asia and it has the fastest
growing emerging market economies in Southeast Asia, therefore many skin care
products manufacturers try to enter Indonesian market. There is good acceptance of
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imported cosmetics in Indonesia which represents by Consumedia Indonesia that is
around 13 percent of the total market. Nowadays, most popular import cosmetic brands
have entered the Indonesian market and are experiencing growing sales by targeting
middle-up class (Ong, Philip, and Shih, 2010). However, mostly domestic/local
companies such as PT.Mustika Ratu and PT. Martina Berto, in addition production by
foreign companies such as PT.Unilever Indonesia, PT. Proacter & Gamble Indonesia,
PT. L’oreal Indonesia still dominate the market, as can be seen in figure below.
Figure 1-1 Indonesian cosmetic market share
Source: Susan, A. 2013. Consumedia Indonesia. Retrieved 24 March, 2014 from
http://www.consumediaindonesia.com
According to Euromonitor International’s data shows Indonesian cosmetic market
growth has been increasing year by year. The figure shows that start from 2010,
Indonesia has recovered the economic after global crisis, and especially for beauty and
personal care product sales growth is increasing.
Indonesian Cosmetics Market Share
Local market has
been filled by 350
companies Local Companies:
Mustika Ratu
Martina Berto Multinational
Unilever Indonesia
L’oreal
IndonesiaCompani
Import
13%
Local
87%
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Figure 1-2 Indonesian cosmetic market growth
Source: Boyle, S. (2012). Cosmetic and toiletries: industry prospect for 2012 and
beyond. Euromonitor International Passport, Retrieved 24 March, 2014 from:
www.euromonitorinternational.com
Furthermore, Trade Division of Indonesian Cosmetic Manufacturers Association
predicts in 2013 cosmetic sales will grow until 11.22 billion Rupiahs (US$93.5 million),
increasing 15 percent compare with 2012 projection which only 9.76 billion Rupiahs
(US$81.3 million). This condition caused by the increasing of cosmetics demand,
especially from middle class and also increasing of cosmetic’s sales which driven by
rising trend in the use of cosmetics by men.
Figure 1-3. Indonesian cosmetic’s sales (in billion Rupiahs)
Source: Susan, A. (2013). Consumedia Indonesia. Retrieved 24 March, 2014 from
http://www.consumediaindonesia.com
7.56 8.90 8.50
9.76
11.2
2009 2010 2011 2012 2013F
Beauty and
Personal Care
Apparel Total GDP
2007 2008 2009 2010 2011 2012
9
8
7
6
5
4
3
2
1
0
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As shown figure 1-2, based on this condition, Trade Division of Indonesian
Cosmetic Manufacturers Association stated many foreign marketers try to enter
Indonesian market, in order to involved in this potential market. Therefore, it’s not
surprising that all those involved in the sale of cosmetics – even Taiwanese cosmetic
companies – want to know specifically what pleases Indonesian customers.
Nowadays, Indonesian consumers are now looking for improved quality, and
more secure cosmetic products as well as better priced products. They-both male and
female, are showing increased concerns about their appearance and are trying to look
younger and more beautiful as a result of peer pressure and high exposure to beauty
advertising featuring celebrity endorsers. In making decision to purchase, very often
consumers rely on various informational cues or attributes in product evaluation (Chao,
1989a, b, 2001; Miyazaki, Grewal, and Goodstain, 2005; Olson and Jacoby, 1972;
Richardson, Dick, and Jain, 1994; Schellinck, 1983; Ong et al., 2010; Salim, 2011).
During several years, the cosmetics industry has dramatically diversified its
managerial and marketing orientation towards customer requirements. This is due to the
growth in response to the consumer trends towards healthier lifestyle and requirements
for natural aroma products. In many finding of several researches about cosmetics, have
been found that consumers highly concerned about the cosmetics quality (Johri and
Kanokthip, 1998; Dimitrova, Mariana, and Teodoro, 2009; Salim, 2011). During the
nineteenth century, chemicals were used to replace more expensive natural ingredients
making the cosmetics more widely used. Nowadays, the health aspect is changing this
trend involving an increased interest in natural ingredients, with consumers worried
about treating their bodies with care and respect (Dimitrova et al, 2009). This necessity
has boosted companies to adopt new marketing and management techniques in order to
meet consumer demand for product qualities.
The pursuit of eternal youth and healthier lifestyles has become a major
marketing for most consumers. A growing appearence-consciousness among consumers
is being investigated by massive messages and images in mass media (e.g. TV
commercials, printed ads in magazines, direct mails, the internet, etc.) that often
promote many type of beauty and various skin care products (Meng and Lin, 2012).
Consumer use various interpersonal and mediated sources (e.g. word-of-mouth,
advertising, sales representative promotions) to seek information on cosmetics options
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to have an increased feeling of being more beautiful and confidence (Dodson, 2008).
Today’s multitude of information seeking access points allow consumers to explore and
to learn as active shoppers. Therefore, marketers should try to build marketing strategy
through media and also conduct in-depth approach especially in the aspect that
consumers are very easy to believe (recommendation by experts, celebrity, and user’s
testimonial) (Kim et al, 2013).
Patton (2009) states that the demand for Halal cosmetics worldwide is on the
rise, driven not only by more affluent Muslim consumers but also growing interest in
high quality and safe products. Though wearing cosmetics is questionable for Muslim
and under debate, those who do wear, prefer pork and alcohol-free products. Especially
in Indonesia as well known as one of biggest Muslim’s country-in total, 87 per cent of
Indonesian population are Muslims (Kim et al, 2013). This value is important for
Indonesian Muslim when choosing the cosmetic products. The Halal certification is
widely used by local cosmetics brand to attract consumers in Indonesia. Those
companies even utilize other attributes related to Muslim culture in their advertisement
(Rajagopal et al, 2011).
Moreover, according to Cadogan and Foster (2000), price is probably the most
important consideration for the average consumer. Price has increasingly become a
focal point in consumers’ judgements of offer value as well as their overall assessment
of the retailer (De Ruyter, Wetzels, and Virgelen, 1999). Consumers’ satisfaction can
also be built by comparing price with perceived costs and values. If the perceived values
of the product are greater than cost, it is observed that consumers will purchase that
product (Salim, 2011). Therefore, it is very substantial to know the suitable price could
be adapted in Indonesia.
According to Al-Ashban and Burney (2001) cosmetics buying behavior
literature in developing countries in general is inadequate and ambiguous. The results of
those studies suggest that social status and education of Saudi Arabian consumers play a
vital role in their trend to use cosmetics. In addition, the study revealed a strong
significance of predictors of usage habits namely; age, income levels, occupation,
gender, and marital status with respect to longevity of exposure. While another study by
Salim (2011) who examines significant relationship between factors of cosmetics brand
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loyalty and income and age of respondents. The findings show that income and age play
important roles on cosmetic brand loyalty.
Based on those attributes, marketers could understand consumers begins with
knowledge about what they want and how they evaluate product attributes that matter
for decision making. This drives Taiwanese cosmetic companies to find out what are the
exactly criteria of cosmetics that Indonesian consumers want and determine who will be
their target markets.
Therefore, this study aims to address who the customers are, which attributes
they prefer in a cosmetic, and how to approach them. Because knowing what the
consumer wants and providing them with that product could benefit all parties involved.
Most importantly, consumers would be satisfied. Knowing their customers’ preferences,
producers and retailers could go back to “selling what they have,” because they only
“have what sells”.
1.2. Research objectives
Based on the previous discussion, the followings are the objectives of this study.
1) To investigate the importance of different Halal certification on purchase
intention.
2) To investigate the importance of different ingredient on purchase intention.
3) To investigate the importance of different media on purchase intention.
4) To investigate the importance of different endorser recommendation on
purchase intention.
5) To investigate the importance of different price on purchase intention
6) To investigate the moderating effect of Demographic on the relationship
between Cosmetic Attributes and Purchase Intention.
7) To investigate who are the potential buyer regarding the attribute and
demographic for Taiwanese Companies.
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1.3. Research project and scope of study
With the purpose of accomplishing the research objectives, the research project
and scope of study was specified as shown in the Table 1.1.
Table 1.1 Scope of study
Items Scope of study
Types of research The literatures are reviewed to build up the research
hypothesis and structure. The development of the
questionnaires is used to test the hypothesis and speculate
the conclusion.
Key issue The effect of Cosmetic Attributes on Consumer Purchae
Intention.
The moderating effect of Consumer Demographic in the
effect of Cosmetic Attributes and Consumer Purchase
Intention.
Independent variable Halal Certification, Ingredients, Advertisements,
Endorser’s Recommendation, Price.
Dependent variable Purchase Intention.
Moderating variable Demographic (Gender, age, and social economic class).
Underlying theory Product attributes theory, Purchase intention theory,
Demographic effect theory.
Testing location Indonesia.
Analyzed unit Everyone who has used cosmetics or have intention to
buy cosmetics in Indonesia especially located in Jakarta
city and Surabaya City (total 800 respondents).
Analyzed object Cosmetic attributes, Purchase intention and Demographic
effect.
Time frame Cross sectional time frame.
Research instruments Theory inference, conjoint analysis, questionnaires, and
statistical analysis instruments.
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1.4. Research procedure
Initially, the research was conducted by collecting and reviewing the related
literatures in order to understanding the relationship between the studies constructs:
cosmetic’s attributes, purchase intention, demographic effect. Next, the scope, the
hypotheses and the conceptual framework were created. Then, the survey was
conducted with online questionnaires in Indonesia. After collecting the response
questionnaires, the data interpreted and analyzed. Finally the conclusion, limitation and
suggestion were reported. The research flow chart is shown in Figure 1-4.
Figure 1-4 Research flow
1.5. Research Procedure
This research is conducted with different chapter stages of arrangements as
illustrated in the flow chart shown in figure 1-1:
Chapter one outlines the research background, motivations, objectives and
Identify reasearch objectives and research scope
Relevant literature review
Construction of the research model
Questionnaire designs and revision
Questionnaire and conduct the questionnaire survey
Collection of questionnaire data
Data Analysis
Discussion of the interrelation among research
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contributions, procedure, and the structure of this study. Major variables are explored
and a conceptual framework is presented. The research procedure is also discussed.
Chapter two introduces the previous literature related to cosmetic ingredients,
Halal certification, advertisement, recommendation, cosmetic’s price, gender, age, and
social status. Key variables and their respective relationships are identified. Finally, the
hypothesized relationships are proposed to integrate the results of previous studies.
Chapter three presents the construct measurements and research design for this
study. A research model that suggests the general relationships among the key research
constructs, including cosmetic ingredients, Halal certification, advertisement,
endorser’s recommendation, price, gender, age, and social status. Meanwhile, the
research design, including the sampling plan, data collection procedures, and data
analysis techniques, has also been discussed.
Chapter four presents the descriptive results and purification outcomes of this
study. It includes data collection, the descriptive of statistics respondent information,
descriptive and research items. The data also was analyzed using multiple regressions to
analyze the relationship between research constructs and moderating effect of
demographic effect.
Chapter five is a summary of the significant findings and conclusions of this study.
Suggestions and practical implications of the results are presented for the future
research.
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CHAPTER TWO
LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT
This chapter comprises of two main parts, to begin with overview of Indonesian
market, definitions and explanations of Halal certification, ingredient, advertisement,
endorser’s recommendation, and price. After that, an introduction of the proposed
hypotheses and the relationship among research constructs are presented.
2.1 Halal Certification
2.1.1 Halal: an overview
Halal (حالل ”hal āl, halaal) is an Arabic term meaning “permissible” or “lawful ,ال
and is an obligation that governs all aspect of the lives of over 1.6 billion Muslim
worldwide. In English it most frequently refers to food that is permissible according to
Islamic law. In the Arabic language, it refers to anything that is permissible under Islam
(Kamali, 2003). Its antonym is Haraam. The term halal and haram will be used strictly
to describe food products, meat products, cosmetics, personal care products, food
ingredients, beverage and food contact materials. Which foods are halal or which foods
are haram, is decided according to the Holy Quran and the Glorious Shari’ah. Most
diets and foods are considered to be halal unless Islamic law specially prohibits them. It
is estimated that 70 percent of Muslims worldwide follow halal standards (Minkus,
2007) and the Global Halal Market was US$12 billion in 1999 (Riaz, 1999), increased
to US$150 billion in year 2001, and currently is reported as US$580 billion (Al-Harran
and Low, 2008). According to Delener (1994), 75 percent of Muslims would follow
their dietary rules in the USA, meaning that even after having migrated, most Muslims
still choose halal products. Moreover Rajagopal et al. (2011) stated that whether a
product is Halal or not is a critital factor in Muslims consumption nowadays. Therefore,
Halal regulation and certification was developed to help consumers identifying products,
which comply with the Islamic principles.
2.1.2 Religious Commitment
Religious commitment or “religiousity” refers to the degree to which an
individual believes in specific religious values and ideals and practices them (Delener,
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1994) and has been viewed from both commitment and affiliation perspectives.
Commitment has been measured both cognitively and behaviorally. Religious affiliation,
by contrast, has been measured by a person’s religious denomiation which may be
operationally vague (McDaniel and Burnett, 1990). Research result of Razzaque and
Sadia (2013) about religiousity and Muslim consumer’s decision-making process
showed that more religiously comitted a Muslim consumer, the higher is his/her level of
involvement at the product and brand decision level.
2.1.3 Halal Certification Towards Products
Already in the 1970s, first efforts were made to set up a system declaring and
certifying food products as Halal. Besides, more and more international food brands
appeared in the markets of Muslim countries and likewise pushed the matter of Halal
certification (Chaudry and Riaz, 2004). The Muslim customers demanded more
transparency for product ingredients and did not trust in simple Halal marks even less
when the product was imported from non-Muslim countries. There aroused a demand
for trustworthy Halal certificates the governments in Malaysia, Indonesia and other
Muslim countries complied by establishing governmental bodies to supervise and
regulate the food markets. Bills were passed (e.g. already in 1975 in Malaysia) to
prohibit the erroneous use of the word “Halal” (Chaudry and Riaz, 2004). Institutes like
the Malaysian Jabatan Kemajuan Islam Malaysia (JAKIM), which is one of today’s
leading institutes in Halal matters – have its seeds in this time. Also in Singapore and
Indonesia official bodies were established to supervise and develop the national Halal
market. The Singaporean counterpart to JAKIM is the Majlis Ulama Islam Singapura’
(MUIS), the Indonesian institute is called “Majelis Ulama Indonesia” (MUI) (Chaudry
and Riaz, 2004). Currently, halal certification of halal products, which in any case can
be issued by an of over 100 halal certification agencies worldwide.
Today, Halal compliant products are already common in food and financial
industries, but the concept is constantly expanding to new industries (i.e. cosmetics,
pharmaceuticals, tourism, entertainment, etc.). Many researchers found that modern
science-based cosmetics could become non-halal for Muslims, with the use of animal
collagen (protein) in the cosmetic products. Prior research has explained that
components of cosmetics products among others were water, oil, and fats, moisturizer,
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plant extract, preservative, thickener, stabilizer and perfume. However, the current
worldwide’s cosmetics regulation do not require the cosmetics producers to specify in
detail the contain of a cosmetic product on its label. Citing the use of collagen as a raw
material maybe derived from fish or pig as an example, but also use aloe extract as a
raw material that may use ethanol when extracting the aloe ingredients. Also, ethanol
maybe used as the preservative of the extract, and that are restricted for Muslim people
to consume. Consumers who want to get halal cosmetic products in the markets should
avoid products contained with alcohol and animal extract, as well as to prevent the
consumers from unsafe cosmetic products. One way to make them believe that products
are halal is by put halal certification on those cosmetics products, which now become
more important. According to many previous researches, either man and woman
become worried about impurities and pork derivatives in cosmetics, also alcohol in
perfume (Ireland and Rajabzadeh, 2011).
These days, Top 10 member countries of the Association of Southeast Asian
Nations (Asean) have set the Asean Cosmetic Directive (ACD), to ensure safer and
better cosmetics in the region. According to the Asean official website, since 2008 all
cosmetics products distributed in the Asean member states are required to comply with
ACD, which places priority on safe cosmetics products. Under the ACD, the product
has to be labelled with the full ingredient list, manufacturing or expiry date, special
precautions, and also Halal certification
2.1.4 The Effect of Halal Certification on Consumer Purchase Intention
Halal is the realm of business and trade, and it is becoming a global symbol for
quality assurance and lifestyle choice. Halal’s burgeoning popularity can be linked to
religious fervor; and beliefs that it is cleaner, healthier and tastier (Al-Harran and Low,
2008). Moreover, promoting halal products to foreign markets is considered on
innovation especially for non-Muslim countries. It is also very much related to religious
types of product. According to Delener (2004) and Pettinger, Holdsworth, and Gerber
(2004), religion can influence consumer attitude and behavior as well as food
purchasing decision and eating habits (Mullen, Williams, and Hunt, 2000; Mennel,
Murcott, and Van Ootterloo, 1992). In many societes, religion plays one of the most
influential roles shaping food choice (Musaiger, 1993; Dindyal, 2003). The impact of
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religion on product consumption depends on the religion itself and on the extent to
which individuals interpret and follow the teachings of their religion. For instance pork
is forbid in Islam (Sack, 2001). According to the previous research (Lada, Tanakinjal,
and Amin, 2009; Rajagopal et al, 2011), the result findings found that especially in
Muslim countries, people are more aware for Halal certification not only for foods, but
also in many types of products such as cosmetics, toiletries, pharmaceuticals, services
including finance. Moreover, has been proved that person’s belief toward Halal
products lead to certain outcomes which is intention to choose halal products
(Tarkiainen and Sundqvist, 2005; Pettinger et al, 2004; Fam, Waller, and Erdogan, 2004;
Dindyal, 2003). In this regard we propose the following hypothesis:
H1. Different Halal certification has different significant impact on purchase
intention.
2.2 Ingredient
2.2.1 Natural Ingredient
Natural can mean anything to anybody. There are no standards for what natural
means (Aldrich and Noel, 1998). Natural, according to the FDA, implies that
ingredients are extracted directly from plants or animal products as opposed to being
produced synthetically. However, some research have found natural meaning. Natural
personal care product defines as a personal care product that is made with “truly natural
ingredients, or ingredients that are derived from nature”. The other hand, Aburjai and
Natsheh (2003) stated that natural ingredient especially toward cosmetic defines as
chemical-free personal care products which can help for nourish and protect skin from
irritants. Moreover, Blech (2009) mentioned that natural skin care products are products
that made with a minium of chemical and artificial substances and may provide softer and
less harsh products than conventional counterparts.
According to the report – Re:Thinking Consumption: Consumers and the Future
of Sustainability – ingredient transparency is also a very important or important factor
in purchase decisions across key categories, such as food and beverage (82%) and
beauty and personal care (82%). Consumers ask for companies to address as part of
their products, services, or operations, including 88% of consumers in emerging
markets and 84% of consumers in developed markets. Many consumers globally believe
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they have the right to know what products are made of and they want companies to
ensure their products are sade and effective. Nowadays, consumers prefer uses no hars
chemicals or toxins drives their product purchases in the beauty and personal care
category.
However, skin-safe products ingredients are more concerned by the consumers
with high health consciousness (Johri and Kanokthip, 1998). According to the TPB
(Ajzen, 1985), an individual is more likely to undertake a certain behavior if he/she has
a positive attitude toward undertaking the behavior. Numerous studies support the
positive relationship between consumers’ attitudes and behavioral intentions for green
purchasing in different cultures, such as Asian, U.S., and European, and in different
product categories, such as organic products and timber-based products (Chan and Lau,
2001; Chen, 2007; Kalafatis et al., 1999; Magnusson et al., 2001; Michaelidou and
Hassan, 2008; Tarkiainen and Sundqvist, 2005).
2.2.2 Biotech Ingredient
Biotechnology is defined as the use of biological systems to produce a product,
the use of a biological system as a product, or the use of the techniques of
biotechnology to provide a product, process or service (Wiegele, 1991). On the other
hand, genetic engineering, which is a subset of biotechnology, is defined as the
manipulation and alteration of the genetic material of an organism in such a way as to
allow it to produce endogenous proteins with properties different from those of the
normal organism, or to produce entire different proteins altogether.
Biotechnology represents the convergence of biology, computer science,
chemistry, physics, and engineering. These component technologies work in sinergy,
and they are each advancing rapidly. On the one hand nature is very complex and does
not give up her secrets easily, while on the other hand the field of biotechnology is
progressing much faster than we can imagine, leaving social institutions scrambling to
prepare for the consequences. Some experts argue that perhaps in the future will be seen
profound acceleration of knowledge and proliferation of new product and services
because of biotechnology (Oliver, 2000).
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2.2.3 The Effect of Ingredient on Consumer Purchase Intention
As people have become more concerned with the environment, health, and
product ingredients, interest in natural and organic cosmetics has grown. Studies have
documented that as consumers are educated and they become aware of the harmful
effects of synthetic cosmetics on prolonged usage the demand for natural or organic
products increases (Rajagopal, 2007). It has been observed that such customer
knowledge has generated willingness to buy organic cosmetics and toiletries products
with a price advantage and other benefits, compared with types of cosmetics, employing
a robust experimental method. The customer preference to the organic cosmetics has
been increasing as customer fears surrounding perceived risk decrease and customer
benefits are communicated (Mather, Knight, and Holdsworth., 2005).
Otherwise, there have been many research studies providing empirical estimates
of customer demand for synthetic cosmetics (Noussair, Robitn, and Ruffieux, 2004;
Lusk et al., 2005). Some other studies have offered theoretical models to explain the
value effects of biotechnology impilcated in cosmetics (Giannakas and Fulton, 2002).
The value effects of biotechnology on various customer products have been investigated
by few macro level studies, which discuss the customer preferences and value
parameters in reference to cosmetics (Nielsen, Thierfelder, and Robinson, 2003). Based
on those previous research about how different cosmetic ingredients either natural and
biotech composition, both can build different perceived value on each consumer
preference in regard their purchase intention. Therefore, we propose the following
hypothesis:
H2. Different ingredient has different significant impact on purchase intention.
2.3 Media Advertisement
2.3.1 Advertising definitions and importance
Amechi and Long (2013) defines advertising as the “dissemination of sales
message through purchased time and space”. Bovee and Arens (2006) takes it further by
defining it as a non-personal comunication of information usually padi for and usually
persuasive in nature about products, services or ideas by an identified sponsor through
the various media. Keller (2008) defines it as any paid form of non-personal
communication about an organization, product, service or idea by an identified sponsor.
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Advertising is commonly defined as paid, one-way promotional communication in any
mass media (Ong et al, 2010), it is paid non-personal communication from an identified
sponsor using mass media to persuade or influence an audience. One of the most widely
accepted definitions of advertising is the one offered by the American Marketing
Association, which is naturally marketing oriented and very insightful. The Association
defines it as the placements of announcements and persuasive messages in time or space
purchased in any of the mass media by business firms, nonprofit organization,
government agencies and individuals who seek to inform and persuade members of a
particular target market or audience about their products, services, organizations or
ideas.
The importance of advertisement ranges from awareness, image enhancement,
generating sales leads, as well as identifying and attracting potential customers for the
company. According to Lichtenthal, Yadav, and Donthu (2005), advertising can open
doors for an industrial salesperson (personal selling) and at the same time generating
awareness and favorable attitudes thereby supporting the sales rather than directly
causing them. Advertising also have an effect on shareholder maximization. Another
vital importance of advertisement (Schultz and Barnes, 1999) is that, it introduces the
firm to prospective customers. Hansen and Christensen (2003), on their part advocates
that, advertising opens prospect doors, build product/company image, increase brand
awareness, differentiate a product from competition and generates sales leads. Last but
not the least; advertising creates a generally more receptive climate prior to the sales
visit (Brassington, 2006). The power of advertising to affect brand awareness by media
shown below.
2.3.2 Television Advertising
According to Keller (2008), Television is generally acknowledged as the most
powerful advertising medium as it allows for sight, sound, and motion and reaches a
broad spectrum of consumers. The wide reach of TV advertising translates to low cost
per exposure. From a brand equity perspective, TV advertising has two particularly
important strengths. First, TV advertising can be effective means of vividly
demonstrating product attributes and persuasively explaining their corresponding
consumer benefits. Second, TV advertising can be compelling means for dramatically
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portraying non-product-related user and usage imagery, brand personality, and so on.
Television is a common medium of information and is very effective in delivering a
message or in a wide sense, for effective marketing communication. Kotler and Fox
(1985) stated that television has advantages and disadvantages related to its
effectiveness as a medium to broadcast advertising messages. The advantages are that
the information can be easily viewed, listened to, and pictured. Belch and Belch (2004)
stated that television is considered the ideal medium to advertise as advertisement
exposure can showcase the most attractive side of the products. The disadvantage of TV
advertising is the higher cost, that fact that it can be highly confusing medium that the
audience is selective. In emerging market like Bangladesh, television is the most
popular medium for information and entertainment.
2.3.3 Radio Advertising
Radio advertising is available on national networks and on local markets. Radio
stations are designated either AM or FM. An AM or amplitude modulation, station
varies the height of its electromagnetic signal so that during the daytime it produce
waves, called ground wave, that follow the contour of the earth (Wells, Burnett and
Moriarty, 2000). An FM or frequency modulation, stations differs from AM in that the
wavelength (frequency) is adjusted rather than the height (amplitude), which remains
constant. Because the signal put out by an FM station follows the line sight, the distance
of the signal depends on the height of the antenna.
2.3.4 Print Advertising
Print media are media that deliver messages one topic at a time and one thought
at a time. Print media offers a stark contrast to broadcast media (Wells et al., 2000)
Most importantly, because of its self-paced nature, magazines and newspapers can
provide much detailed product information (Keller, 2008). In general, the two main
print media-magazines and newspaper- have many advantages. Newspaper
advertisement is very effective tool to spread the information quickly to a large number
of audience (Altstiel and Grow, 2006). Newspaper includes broad market coverage
consumer’s ability to comparison shop, positive consumer attitudes, flexibility and
interaction between national advertisers and local retailers. Magazine advertisements
deliver highly qualified targets and are effective in increasing brand sales and market
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share. The benefits of magazine advertising include the ability to reach specialized
audiences, audience receptivity, a long life span, visual quality, and the distribution of
sales promotion devices. Effective print materials are the most tangible means of
placing company’s message firmly in the hands and mind the customers.
2.3.5 Social Media Networks
Safko and Brake (2009) state that ‘social media refers to activities, practices and
behaviors among communities of people who gather online to share information,
knowledge, and opinions using conversational media. According to Carlsson (2010),
social media are web related services where people can talk, share information, and
forge new relationships. Examples of social media include blogs, micro blogs, podcasts,
wikis, communities and video sites. The essential feature is that social media builds on
user generated content. Social media offers endless opportunities for customer service
and support. It is an excellent tool to get close with your customers and fans; however,
it is by no means intended to be used on its own. Social media works best for brands in
marketing if it is used as a complement to other activities. (Carlsson, 2010). Social
media is very important to most every company today. This is because the world has
become a very technologically driven place that thrives on Facebook, Twitter and
YouTube. A strong brand ought to be based on the dialogue you have your customers
and prospects- the stronger the dialogue- the stronger the brand. The social web allows
companies to have these kinds of dialogues more efficiently and less expensively than
in the past (Weber and Julie, 2002).
2.3.6 In-store Atmospherics
The store atmosphere has long been regarded as an important purchase-inducing
factor because it has considerable influence on the shopper’s perception of a store’s
image, which is formed based mainly on a wide range of the store’s tangible attributes
such as its exterior/interior, lighting, and display, among others (Milliman, 1982; Sparks,
2002; Baker, Grewal, and Parasuraman, 1994; Doyle and Broadbridge, 1999). Zimmer
and Golden (1988) suggested that the store’s image is an aggregate construct
representing its attributes, overall impression, business type, business typicality, product
relevance, and behavioural relevance. In particular, previous studies of the store
atmosphere have suggested that affective responses to the store’s atmosphere are
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associated with impulse buying (Beatty and Ferrell, 1988; Donovan and Rossiter, 1982).
According to Beatty and Ferrell (1988), store atmospherics such as the store’s display,
aroma, colour, and music draw attention, influence purchase motives, elicit moods, and
induce impulse buying, which clearly indicates a need for considering not only
emotional but also sensory stimuli inside the store when examining the effects of
in-store experiences on impulse buying. This has been supported by Lovelock (2010)
which says, the stimuli in the store, such as store layout, shelf space and displays, sign,
colors, affect consumers and serve as elements of product attributes, which may in turn,
affect consumer decision making and satisfaction with the brand.
2.3.7 The Effect of Advertisement on Consumer Purchase intention
Engel, Kinnear, and Warshaw (1979) explains promotion entails making the
prospects or target market aware of the availability of the brand and inducing them to
buy. A product could have very good quality brand, it may be available and at right
price, yet may not sell as it should, because consumers are not aware of it or that is has
not been promoted to them, so that they can become disposed towards it. Therefore,
advertising is a promotional tool and it is used primarily to promote the product to the
market. Advertising, together with the other tools of the communication mix, is a means
of managing demand. At a general level, advertising can be used in one of two main
ways. First, it can used to influence demand for products or service and second it can be
used to manage perceptions and understanding about the organization as a whole.
According to Ohanian (1991), advertising is capable of persuading people to buy a
product that they have not previoulsy purchased. Moreover Shimp (2007) explains
advertising enables brand marketers to effectively influence consumers buying behavior.
It is the most suitable place and period to communicate with consumers since it its
where they make their product choice decisions. It is the time and place at which all
element of the sale (consumer money and product) come together. However, there are
many advertisements, such as ads in internet, ads through mass media (e.g. Television,
magazine, radio, etc), and in-store lightbox. Therefore we propose the following
hypothesis:
H3. Different media advertisement has different significant impact on purchase
intention.
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2.4 Endorser’s Recommendation
Conductiong endorser strategy is one of the most popular marketing practices
for enterprises. A successful endorser strategy can increase the level of consumers’
recall toward product information (Friedman and Friedman, 1979), strengthen
consumer’s recognition to endorsed brands, positively affect consumers’ attitude to
low-involved products (Kamins, 1991; Petty et al, 1983). Endorser of products or
brands (sponsorship advertising) take on many forms including identifiable people,
unidentifiable (e.g. typical consumers), corporations or organization, and inanimate
figures (e.g. cartoon characters) (Stout and Moon, 1990). Recently, the public’s
attention has focused on endorsements of identifiable people, more often than the other
endorsers as Association and inanimate figures. Typically, there are four major types of
endorsers – celebrity, CEO, expert and typical consumer (user) – and each speaks to
different types of audiences. Four types of endorsers are persuasive to consumers in
different ways according to its endorsed product types and involvement (Frieden, 1984;
Petty and Wegener, 1998; Marthur and Rangan, 1997). Those endorsers can produce a
commendation and endorsement effect and build customers’ reliability and purchase
intention (Chi, Yeh, and Tsai., 2009).
2.4.1 Expert Endorser
Expert endorsers are individuals with superior product knowledge gained
through experience, study, or training. Hovland, Janis, and Kelley (1953) define expert
endorser is the person who capable of making correct assertions based on their expertise
in related field. It is also defined as expert endorser as individual who know the correct
stand on the issue. Expert endorsers can enhance attitude toward the ad and the brand,
purchase intentions, and estimated purchase prices or advertised products that involve
some sort of financial, performance, and/or physical risk (Friedman and Friedman,
1979). In years since the ban on direct-to-consumer advertising was lifted, physicians
and pharmacists have frequently been used as expert endorsers due to their extensive
knowledge, experience, and training regard to prescription drugs (Huh and Langteau,
2007). Prior research has shown that pharmaceutical consumers prefer expert endorsers
for over-the-counter medications (LaTour and Smith, 1986). Because prescription
pharmaceuticals involve high risk, an expert endorser, such as a doctor, physician, may
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be more effective. Regard to Limbu, Huhmann and Peterson (2012) finding, an expert
endorser is found to be more effective improving ad credibility.
2.4.2 Expert Endorser
According to McCracken (1989), celebrity endorser was define as “any
individual who enjoys public recognition and who uses this recognition on behalf of a
consumer good by appearing with it in an advertisement”. Endorser roles can take the
form of the celebrity as an expert, as a spokesperson associated with a product in a
long-term capacity, or as an aspirational figure with no particular knowledge of, or
relationship with, the product (Seno and Lukas, 2007).
Moreover, over the past twenty years, celebrity recommendation advertising
increased tremendously (Hsu and McDonald, 2002). According to an adverting
magazine in the U.S., among billions US dollar of TV commercial advertising spending,
about 10% were paid to famous celebrities. It shows that most advertises like to use
celebrities to promote their products. Indeed, celebrities do have powerful attractiveness.
Celebrity advertising can transfer a celebrity’s attitude and feeling from consumers to a
product (Chi et al., 2009), and endorsers’ credibility can also influence consumer
purchase intention (Ohanian, 1990, 1991; Goldsmith, Lafferty, and Newell, 2000;
Bower and Landreth, 2001; Chi, et al., 2009).
Ohanian (1991) in her investigation of the relationship of attractiveness,
trustworthiness, and expertise to intention to purchse found that only the perceived
expertise of a celebrity was a significant factor in predicting purchase. In the finding
result of Seno and Lukas’s (2007) research about the equiry effect of product
endorsement by celebrities, has been found that the integration of a celebrity endorser
into a promotional activity is likely to influence the relationship between the endorsing
celebrity and the endorsed product. More credible and attractive celebrities, will build
favourable perceptions towards the brand. It has been supported by Freiden (1984)
who suggested that celebrity attractiveness is best suitable to appeal consumer
awareness.
2.4.3 Consumer Endorser
Due to there are many types of advertisements as the media to show many types
of endorsement, it is not rule out the possibility to show consumer endorsement in
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online online shopping malls, especially with the exponential growth of e-commerce,
consumers create a huge amount of information, which influences other consumers
(Brown and Reingen, 1987; Chatterjee, 2001; Chen and Xie, 2008; Dellarocas, 2003;
Godes and Mayzlin, 2004). Rexent evidence suggests that consumer-created
information has become a rather important influence for consumer behavior such as
purchase decisions. Online consumer reviews (OCRs) are part of consumer-created
information by web site users who have already bought the target product, it contains
information and recommendations of the products from the consumer’s perspective
(Park, Lee, and Han, 2007). Recent studie have investigated OCRs as electronic
word-of-mouth that influences consumer behavior (Brown and Reingen, 1987;
Chatterjee, 2001; Chen and Xie, 2008). This is actually part of consumer endorsements
that has been used in afvertisements in other media, such as television and radio
(Fireworker and Friedman, 1977; Friedman and Friedman, 1979; Frieden, 1984).
Consumer endorsement is a useful advertising strategy in advertising. Typical consumer
endorsements significantly improve the overall attitude toward the product, thereby
increasing the expected price (Fireworker and Friedman, 1977). Therefore, traditional
advertisers select people and interview them regarding their personal experiences,
besides online advertisers merely quote the body or certain parts of OCRs that are
already exposed in an online shopping mall. This is supported by research has been
conducted by Park et al. (2007) about The effect of online consumer reviews on
consumer purchase intentions. The result shows that consumer-created information by
explain their own experience on consuming the products become effective in
influencing other consumer’s purchase intention.
2.4.4 The Effect of Endorser Recommendation on Consumer Purchase intention
In order to make consumers to memorize products, business advertisers often
use famous celebrities or experts to share their expertise and experience to promote a
product or a service. Advertising endorsers can produce a recommendation and
endorsement effect and build customers’ reliability and purchase intention. In addition,
when selling a product, it can not only depend on whether a product is good or bad or
focus on price to appeal customers’ attention. Rather, it should apply advertising
endorsers to recommend and promote a product in order to make differential product
image and influence consumers purchase behavior. Thus, endorsement marketing is
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able to give a product new image and extra experience to customers and further increase
product recognition (Goldsmith et al., 2000). There are some past research about how
advertising endorser’s recommendation could influence the way of consumer thinking
into decision making process and finally purchase products that have been promoted.
Celebrity advertising can transfer a celebrity’s attitude and feeling from
consumers to a product (Chi, Yeh, and Yang, 2009), and endorsers’ credibility can also
influence consumer purchase intention (Ohanian, 1990, 1991; Goldsmith, et al., 2000;
Bower and Landreth, 2001; Chi, et al., 2009). Moreover, Maddux and Rogers (1980)
commented that expert recommendation can attract consumers’ trust on a product, and
advertising effects come from advertising endorser’ image and trustable persuasion. A
high persuasive advertising endorser such as experienced person whoever used the
product or services before can stimulate consumer purchase intention and promote
brand recognition and product value. Therefore, an advertising endorser’s behavior will
affect consumers’ recognition and image of an endorser and their purchase intention.
Therefore this study proposed hypothesis as follow:
H4. Different endorser’s recommendation has different significant impact on
purchase intention.
2.5 Price
One of the factors affecting consumer behaviour that is relevant in terms of this
study is pricing. According to Evans, Moutinho, and Van Raaij (1996), price can be
defined as the thing that a consumer has to give up to buy and obtain a certain product.
Price is the amount which needs to be paid for the consumer to obtain The products or
the price that consumer must give up or sacrifice to obtain the product (Zeithaml, 1998).
According to Kotler and Armstrong (2010) price is the amount of money charged for a
product or service, or the sum of value that customers exchange for the benefits of
having or using the product or service. The proposed price is a reflection of the value of
each resource unit which the consumer and producer agents are willing to buy or sell. In
addition, Cadogan and Foster (2000) suggest price is the most important consideration
for the average consumer when purchasing products. It has been shown that price
become important role of determine consumer choice and demand. Ivy (2008), in her
research has found that price is one of indicator of product or service value that
consumer can consume. It is something that consumer has to sacrifice for get that value.
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Price and product quality has strong positive relationship (Lau et al., 2006). The higher
product quality, it demands to pay more.
Consumers’ expectations related to standard price levels are important in
analyzing consumer behaviour in terms of pricing. Consumers often develop a standard
price for a product, in other words, an idea of what is regarded as a fair price for a
certain type of product. This standard price that a consumer expects is then used as a
basis for comparing the prices of other brands. For example, a consumer may perceive a
product suspicious if the product is a lot cheaper than the standard price he or she has
set to that specific product category. Thus, consumers have developed an acceptable
range of prices that is determined by an upper limit (the limit above which the product
is considered as being too expensive) and a lower limit (the limit below which the
product’s quality is perceived as suspiciously low) (Evans et al. 1996).
According to Asch and Wolfe (2001), consumers’ standard price, also called
reference price, is often influenced by the prices that consumers recall to have seen in
the past. A past price has the strongest influence on the standard price when a consumer
has actually paid it for a product rather than just seen or observed it in a store. One
implication of the effect of past prices on the formation of an accepted reference price is
that consumers are usually more likely to accept small price increases frequently than
big increases that are made more seldom. Asch and Wolfe (2001) also recognize that
consumers tend to read price digit information from left to right which leads to the
consequence that prices are often expressed with odd endings such as 1.99, or 9.99.
When processing a price digit, consumers tend to look at the first number on the left and
use that as a quick reference point to evaluate the actual price.
2.5.1 The Effect of Price on Consumer Purchase intention
Price is probably the most important consideration for the average consumers.
Price serves as the strongest loyalty driver (Ryan et al., 1999). Price has increasingly
become a focal point in consumers’ judgments of offer value as well as their overall
assessment of the retailer (De Ruyter et al., 1999). Price is the money that is required to
be paid for a consumer to exchange for a product or service and consumers will have
price awareness of the product, the high and low process will impact the purchase
behavior of customers. Price is one of the most important factors having influences on
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the consumer decision making. Winer (1986) suggests that when making purchase
decisions, consumers often compare objective price with internal reference price, which
is the overall price level or range the consumer perceives for the product category. A
customer will generally use a product’s price as a reference point with which to judge
the worth or quality of a good or service. In the other words, consumers’ satisfaction
can also be built by comparing price with perceived costs and values. If the perceived
values of the product are greater than cost, consumers will purchase that product (Yoon
and Kim, 2000). Price consciousness is defined as finding the best value, puting at sale
prices or the lowest price choice (Sproles and Kendall, 1986). Therefore, we propose
the following hypothesis:
H5. Different price has different significant impact on purchase intention.
2.6 Purchase Intention
Nowadays, there are many new plan on the international market to attract
customers which create a highly competitive market. In this case, customers have
various opportunities in buying products; however, there are plenty factors that have an
influence on product accomplishment and consumer purchase intention. In accordance
with Fishbein and Ajzen (1975), both of the best predictor of behavior and an unbiased
predictor of action which is intention (Bagozzi, Baumgartner and Yi, 1989; Chen, 2007).
During 1940s-1970s purchase intention had been variously researched by the U.S.
government (Young, DeSarbo, and Morwitz, 1998) and through the last 60 years, many
researches have still judged this topic.
2.6.1 Meaning of Purchase Intention
Some of scholars characterize purchase intention as personal action tendencies
according to brand. They have also assumed that intention is derive from attitude. While
attitude means appraisal of products, intention is the person’s actuation in the sense of
his or her intention to perform behavior. Another definition argued that purchase
intention is the individual’s awareness to make an endeavor to buy a brand (Kotler and
Keller, 2009).
Other researhers believe that purchase intention “what we think we will buy”
(Sparks, 2002). It also defines the feeling or perceived likelihood of purchasing the
products that are advertised, furthermore, purchase express the degree of faithfulness to
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products. Other scholars like Daneshvary and Schower (2000) indicated that consumer
purchase intention has a connection with demographic factors like age, gender,
profession and education (Lu, 2007). Additionally, there is another statement which
shows that especial feature of products, perception of consumers, country of origin and
perception of country of origin. All have an impact n customer purchase intention
(Wang and Chen., 2012).
According to Wang and Chen (2012), purchase intention can also be supposed
as the decision to act or physiological action that point out an individual’s behavior
according to the product. Besides Crosno et al. (2009) believed that purchasing
intention is the probability that consumers in a definite purchasing situation choose a
definite brand of a product category. The interest of marketing scholars on purchase
intentions drive from its relation to purchase behavior. Especially, Fishbein and Ajzen
(1975) contend that “the best single predictor of an individual’s behavior will be
measured of his intention to perform that behavior”.
2.6.2 The Role of Purchase Intention
What is more, marketing managers are concerned with consumer purchase
intentions so as to forecast sales of existing and/or new products and services. Purchase
intentions data can help managers make decision which related to product demand (new
and existing products), market segmentation and promotional strategies.
A consumer’s attitude and evaluation and external elements construct consumer
purchase intention, and it is a decisive element to forecast consumer behavior (Fishbein
and Ajzen, 1975). Purchase intention can measure the possibility of a consmer to buy a
product, and the higher the purchase intention is, the higher a consumer’s willingness to
buy a product (Dodds, Monroe, and Grewal, 1991). Purchase intention states that
consumers will accord to their acquaintance, preference and external environment to
collect information, evaluate subtitutes, and make decision in purchasing (Zeithaml,
1988; Dodds et al., 1991; Chi et al., 2009).
Furthermore, consumer purchase intention originates from consumers’
perception on benefits and values achievement, and it plays a vital role to predict
consumer purchase behavior. In particular, Monroe and Krishnan (1985) submitted that
purchase intention will be affected by perceived value and perceived quality, and the
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more perceived value and perceived quality, the stronger purchase intention is. In
Zeithaml (1988) also suggested that the higher perceived value is, the higher purchase
intention is.
2.6.3 Characteristics of Purchase Intention
In addition, the high preference representation and familiarity make consumers’
brand attitude and purchase intention will be higher (Kamins and Marks, 1991). In 2006,
Wang used brand image as independent variable, product category as moderator, and
purchase intention as dependent variable and found that the higher brand image is, the
higher purchase intention. Fournier (1994) recognized that if a brand supplies product
features which meet consumers’ demand, consumers will create psychological
corporations and an irreplaceable connection with the brand which they will biased keep
interaction with the brand and promote their purchase intention accordingly.
In addition, purchase intention distinguish an interchange between products
features and consumers’ demands, and contain the important is limited budget.
Fundamentally, high quality product is intended to purchase by consumers but
frequently the consumers could not afford that (Verleghg and Steenkamp, 1999). Thus,
the marketers hsould focus on the budget spending restraint of each person as the main
element to establish price of products.
Purchase intention has been a looking forward assumption and the significant
attribute of definite purchase. Generally, in consumer’s consideration about a product
with low or high value which will directly effect to the purchasing intention. For
example, if the product is evaluated to be a low value, the purchasing intention will be
rejected as well but if the product is evaluated to be a high value, it will lead the high
intention for purchasing (Chang and Wildt, 1994).
According to some previous studies, it is assumed that when the consumers
declared they intend to buy one product, it might not mean that they will do a definite
buying. In other hands, even if the intender will do the real purchases since for most of
the real purchases were made by the no intenders as per the results. As time goes by,
changing in purchase occasion, all these affect the intention to purchase (Morwitz et
al.,1993; Young et al., 1998).
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2.7 Demographic
2.7.1 Gender
According to Solomon (2007), an important component of a consumer’s
self-concept is sexual identity. Sexual identity can define as gender (male and female).
Both male and female also believe that, the way they behave (speak) or consume (dress)
will not have any conflict with their culture. However, when the time changed, the
culture change, these gender roles will also do change by time over. Bakshi (2008) said
gender refers to the social relationship/roles and responsibilities of men and women, the
expectations about the characteristics, aptitued and likely behaviors of both women and
men (feminity and masculinity) that are learned change over time and vary within and
between cultures.
According to Mitchell and Walsh (2004), males and females want different
products and they are likely to have different ways of liking and obtaining these. Gender
has an important role in consumer behaviours. Because, the differences between men
and women about expectation, want, need, life-style etc. reflect to their consumption
behaviours (Akturan, 2009). Solomon et al (2010) suggests that, products are sex-typed
or androgynous. Sex-typed defines a product that takes on masculine or feminine
characteristics. Put simply, Barbies for girls and Hotwheels for boys. As per the
socialization of men and women, women are perceived to be internally focused and
often talk as a way to connect and relate to others, whereas men are perceived to be
externally focused and often view situations as issues to be resolved. They talk to
inform others. This perception though is generalized and may have lot of exceptions but
exceptions do not invalidate generalizations. For example, there are many women who
are taller than the average man, and there are many men who are shorter than the
average woman. But the generalization “Men are on average taller than women” is still
valid. Similarly, not all men have a strong male brain, and not all women have a strong
female brain, but there are average differences between men and women, and men are
far more likely to have the male brain and women are far more likely to have the female
brain.
Women are considered as being warm, expressive, compassionate, and
understanding (Ruble, 1983; Williams and Best, 1990). People feel more positive
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toward women than men and, also, prefer to like women to men. (Eagly and Mladinic,
1989). This fashionable paradigm of the differences between men and women are
passively accepted by marketing practitioners around the world. Obvious sex
differences exist not just because of genetic reasons, but are quite often due to cultural
variations (Teather 1995). Every marketer today has realized this fact and hence gender
has become one of the major factors and basis of segmenting a market and targeting the
customers.
2.7.2 Age
Kotler and Keller (2009) discuss that age often determines what type of food,
clothes, music and recreational activities consumers like. It also usually determines the
type of products or services they need. Noel (2009) agrees that consumers’ interests and
needs often change as they grow older. He states that older consumers are often more
brand loyal than younger consumers and also tend to be more careful and considerate
when making purchasing decisions. However, it is not always only the chronological
age that affects people’s buying behaviour. Noel (2009) distinguishes the effect of
chronological age, age effects, from the impact of life experiences, cohort effects, to
consumer behaviour. Age effects occur naturally as the consumer ages and his or her
needs and interests change whereas the cohort effects develop when the consumer is
affected by experiences over the years such as buying certain types of food or getting
used to certain scent while growing up which in themselves do not have anything to do
with the consumer’s age.
2.7.3 Social Class
Asch and Wolfe (2001) as well as Kotler and Keller (2009) and Noel (2009)
discuss that social class is also a great influencer of consumer behaviour, although
Kotler and Keller (2009) define social class as being part of the cultural factors
affecting consumer behaviour rather than personal factor. Social classes are
hierarchically ordered divisions of society whose members share similar values, interest
and behaviour (Kotler and Keller 2009). Social classes are usually quite homogenous
According to Asch and Wolfe (2001) and Kotler and Keller (2009) social classes show
four different kinds of characteristics. The first characteristic is that people within a
certain class tend to be more alike in the way they dress, speak and use their free time
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than people in another social class. Second, people are often perceived to have certain
superior or inferior positions according to their social class. The third characteristic
linked to social classes is that usually a cluster of variables indicates social class better
than any single variable. These variables include for example occupation, income,
wealth, education and value orientation. The fourth thing that characterises social
classes is that people can move from one social class to another during their life. Noel
(2009) states that an individual’s social class can be determined based on several factors
of which occupation, education and income are the three biggest and most important.
Occupation and economic circumstances were also mentioned by Kotler and Keller
(2009) as some of the personal factors affecting consumer behaviour.
Asch and Wolfe (2001) agree with Kotler and Keller (2009) in that social classes
show distinct preferences in terms of brands and products in for example clothing,
recreational activities and automobiles and thus affect the way people behave in
decision-making situations. Noel (2009) discusses that social class is a good predictor of
purchasing behaviour related low- to moderately priced goods that have some sort of
symbolic value. These include for example cosmetics products.
2.7.4 The Moderating Effect of Gender, Age, and Social Status
Several results studies indicated that there are substantial differences between
consumer segments in terms of their willingness to pay for cosmetics products. Social
and cultural factors such as gender, age, social class, religiousity contributed to
consumers having different perceptions (Baker et al, 1994).
Nair and Pillai (2007), in their research about a study on purchase pattern of
cosmetics among consumers in Kerala, has found that there are different attitudes
toward cosmetic based on consumer age, gender, income (social status), and their living
place. Different consumer in different level will choose different media, place to shop,
and the frequency of buying cosmetics.
In Salim (2011) research – female buying behaviour related to facial skin care
product - also has found the similar result which for each female in different age,
income, social class, and lifestyle has different perception about which cosmetic
ingredient they prefer to buy, which advertisement they choose in order to get some
information related with cosmetic they want to buy.
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Therefore, in regard to those previous research, we propose the following
hypothesis:
H6. Gender, age, and social status have significant impact on relationship between
cosmetics attributes and purchase intention.
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CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
This chapter first introduces conceptual model and construct measurement,
including Halal certification, Ingredient, Advertisement, Endorser’s recommendation,
Price, and Purchase Intention. Next, the hypotheses which were developed from the
literature review in Chapter 2 are summarized, aiming to test in the next chapter. Then,
method and procedure, questionnaire design and sampling plan are presented. Lastly,
data analysis procedures are described at the end of this chapter.
3.1 The Conceptual Framework of Study.
Developing from the literature review and hypotheses proposed in Chapter 2, the
conceptual framework of this research is presented as depicted in Figure 3-1 in order to
illustrate the effect of Halal cerification, Ingredient, Advertisement, Recommendation,
Price on Purchase Intention of cosmetics products.
In addition, the moderating effects of gender, age, and social status on the
relationship among Halal cerification, Ingredient, Advertisement, Recommendation,
Price and Purchase Intention of cosmetics products which also will be shown in
framework below.
Figure 3-1 Conceptual model
3.2 Summary of Research Hypotheses
Based on the literature review in Chapter two and the conceptual model in the
previous section, six sets of research hypotheses are proposed in the study as
summarized as follows:
H6
H1
H3
H2
H4
H5
Halal Certification
Ingredient
Advertisement
Recommendation
Price
Demographic
Purchase Intention
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Table 3.1 Summarized hypotheses
Hypothesis Attribute levels
H1
Different Halal certification has different significant impact on
purchase intention.
H2
Different ingredient has different significant impact on purchase
intention.
H3
Different media advertisement has different significant impact on
purchase intention.
H4
Different recommendation has different significant impact on purchase
intention.
H5 Different price has different significant impact on purchase intention.
H6
Gender, age, and social status have significant impact on relationship
between cosmetics attributes and purchase intention.
3.3 Construct Measurement
To accomplish the objectives of this study, three constructs are operationalized.
The construct of Halal certification, ingredient, advertisement, recommendation, price
present as independent variable effects on Purchase Intention. Then, the construct of
Purchase Intention acts as a dependent variable. Moreover, the relationships between
two above constructs are also moderated by Demographic with two varieties:
gender-age and gender-social status.
A survey questionnaire items and scales were designed by adapting measures
that had been validated by other researchers or by converting the definitions of
constructs into a questionnaire format. The operational definitions of each research
construct are described as follows:
3.3.1 Independent Variables: Halal certification, ingredient, advertisement,
recommendation, price and Dependent Variable: Purchase Intention
The replies to these profiles are studied to yield estimates of the relative
importance of the attributes and to form prognostic models of consumer choice for new
changes (Ong et al., 2010). The respondents are asked to rank the descriptions or
attributes in order of preference. Thus, combination of all attribute levels resulted 216
(2x4x3x3x3) profiles. By using a fractional factorial design, the number of profiles was
significantly reduced from 216 to 20 profiles while maintaining the ability to estimate
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the utility. This was done by performing the orthogonal design program. Respondents
were required to rank the 20 options according to their preferences. They have to put 1
onto the card that they prefer as the most wanted cosmetic’s characteristics they want to
buy, and so on for the other numbers, the smaller number shows that consumer prefer
that card more than the higher number, until they put 20 onto the card they think that
card shows unpreferred cosmetic’s characteristics. Conjoint study design is shown in
Table 3.2.
Table 3.2 Conjoint study design
Product attributes Attribute levels
Ingredient Natural; Biotech
Halal Certification
MUI Halal; Taiwan Halal; Ards TW Halal & MUI recognition;
without Halal
Advertisement Internet; Mass Media; In-store Lightbox
Endorser’s
Recommendation By expert; By celebrity; By user's testimonial
Price IDR 92.400 ; IDR 108.000; 10ml IDR 123.000
3.3.2 Moderator Variable: Demographic
Many previous research about cosmetics have proved that demographic factors
such as gender, age, and social status play role in the influence on puchase intention
(Coley and Burgess, 2003). In addition consumers rely on various attributes of products
in their product evaluations (Richardson et al., 1994; Schellinck, 1983), cosmetic’s
consumer can be distinguished based on their demographic factors, due to in terms of
the frequency with which a variety of products were impulsively purchased, result of
past researches showed that between man and woman in different ages consist of young
and old age, and different social economic status, have different purchase behavior
(Coley and Burgess, 2003).
Concerning demographic is the moderator effect in the relationship between
product attributes and purchase intention. This part will refer to the demographic data of
respondents.
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1. Gender
(1) Male
(2) Female
2. Age
(1) Less than 30 years old
(2) 30 – 34 years old
(3) 35 – 39 years old
(4) 40 – 44 years old
(5) 45 – 49 years old
(6) More than 50 years old
3. Social Status
(1) SES A : respondents have the average household expenditure more than IDR
3.000.000 in each month for daily needs such as eating, drinking, pulses, school
fees, electricity, water, telephone accounts, maid salary, etc. But does not include
expenditures for installment purchase large and expensive items uch as car,
home, etc.
(2) SES B : respondents have the average household expenditure less than IDR
3.000.000 in each month for daily needs such as eating, drinking, pulses, school
fees, electricity, water, telephone accounts, maid salary, etc. But does not include
expenditures for installment purchase large and expensive items uch as car,
home, etc.
3.3.3 The Importance of Halal Certification
Whether a product is Halal or not is a critical factor in Muslims consumption
decisions. Therefore, Halal regulation and certification was developed to help
consumers identifying products, which comply with the Islamic principles (Chaudry and
Riaz, 2004). Therefore considering Halal certification on cosmetic products is
important factor, especially for products that will be sale in Indonesia which is one of
moslem country in the world. According to Rajagopal et al (2011) when product is
Halal certified, the consumer can purchase the product with the assurance it does not
contain anything that is haram or doubtful. However the marketers should find out if the
consumers actively seek Halal certification for various products and services or not.
Therefore the following questionnaire will test the respondents preferences about how
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important their religion in influencing their purchase decisions. This questionnaire will
be devided into two groups which are female and male, in order to know, if gender can
show the differences of religiosity.
This part will refer to questionnaire which was rated by six-point Likert Scale
from strongly disagree (1) to strongly agree (6).
1. I will be delighted if I am able to make the Hajj
2. I pray 5 times a day
3. I will feel anxious if I ever neglected a prayer
4. I often feel uncomfortable if I do not say basmallah prior to doing any activities
5. I feel anxious if I do not do prayer immediately after Adhan
6. I pray before doing any activity of that day
7. I check on the label of halal-certified whenever I eat or drink
8. I try my best to cover my body parts as regulated in Islamic Law
9. I like to listen to the chants of Al-Quran verses
10. I pay attention to how permissible my food is according to Islamic Law
11. I do not feel all right if I do not cover my body parts as regulated in Islamic Law
12. I do not feel all right if I do not obey the rules of Islam
13. I mind with the existence of mix-religion marriages
14. I mind with the existence of homosexual marriages
15. I do not feel all right if I have to make eye contact with men who are not my muhrim
3.3.4 The Information of Respondent’s Cosmetics
Table 3.3 Information of respondent’s cosmetics
Items Description
Respondent’s cosmetic
Brand Name
Oriflame
Amway Artistry
Nu Skin
Avene
RoC
Dermae
Activa
Sebamed
Clinique
The Body Shop
L'occitane
The Face Shop
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Table 3.3 Information of respondent’s cosmetics (continued)
Items Description
Respondent’s cosmetic
Brand Name
Etude
Ponds
Olay
L'oreal
Biore
Garnier
Respondent’s skin
problem experience
Easy to get allergy
Dark circles
Skin too slack
Skin too dry
Skin too rough
Wrinkles/Lines
Easy to become darker
Inconsistent Skin color
Skin too oily
Spots
Large pores
Blackheads
Dark Skin
Pimples
Dull skin
Others
Respondent cosmetic’s
functions
Improve dark circles or puffy eyes
Soothing allergy
Improve lines around eyes and mouth
Consistent skin color
Black heads and white heads removal
Oil control
After sun soothing care
Sunscreen
Slack improvement
Anti-spots
Pore tightening
Anti-wrinkles/anti-aging
Exfoliation
Skin hydration
Skin tenderness
Anti-acne
Skin fairness
Improve dull skin and make skin glow
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Table 3.3 Information of respondent’s cosmetics (continued)
Items Description
Respondent’s intensity
to use cosmetics More than twice a day
Twice a day or more
Once a day
4 Q 6 times a week
2 Q 3 times a week
once a week
Once every 2 weeks
Once a month
Once every 2 months
Respondent’s cosmetic
cost
< IDR 100.000
IDR 100.001 - 200.000
IDR 200.001 - 300.000
IDR 300.001 - 400.000
IDR 400.001 - 500.000
IDR 500.001 - 600.000
IDR 600.001 - 700.000
IDR 700.001 - 800.000
IDR 800.001 - 900.000
IDR 900.001 - 1.000.000
> IDR 1.000.000
Respondent’s preferred
place to buy cosmetics
Department store/Shopping mall
Hyper market/Super market, e.g. Carrefour, Hypermart,
Hero, Giant
Cosmeceuticals store/Pharmacy
Convenience store, e.g. Alfamart, Indomaret, Circle K
Grocery store
Traditional market/Night market
Direct sales/Telephone marketing
Exclusive shop/Special store
Internet
TV shopping
Clinic / Salon
Respondent’s
information source
about cosmetics
Newspapers & their ads
Magazines & their ads
TV ads
TV programs or TV shopping channels, the program or
channel
Online forum or shopping website, the website
Radio & its ads, the Radio channel
Friends or relatives' advise
Doctors or pharmacists, the clinic
Sales promotion girls
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3.3.5 The Information of Respondents
In the last section of the questionnaire, the respondents were required to fill out
their personal information for the benefits of the research analysis. These questions
about respondent information include several items each presented in forms of choices
or ranges as shown in the Table 3.4.
Table 3.4 Information of respondent’s items
Items Description
Gender Male
Female
Religion Moslem
Non-Moslem
Age
Less than 30
30-34
35-39
40-44
45-49
More than 49
Occupation
Middle management (Manager, GM)
Professional (lawyer, doctor, etc.)
Technicians & assistant professionals
Fixed employee/ staff/ outsource
Service or sales
Agriculture, forestry, fishery, animal husbandry
Crafts related worker
Machinery worker
Labour
Military personnel
Housewife
Marital Status
Single
Cohabitation
Married
Divorced/Widowed/Separated
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Table 3.4 Information of respondent’s intens (continued)
Items Description
Monthly Income
Less than Rp 1.500.000
Rp 1.500.001 – Rp 3.000.000
Rp 3.000.001 – Rp 4.500.000
Rp 4.500.001 – Rp 6.00.000
Rp 6.000.001 – Rp 7.500.000
Rp 7.500.001 – Rp 9.000.000
Rp 9.000.001 – Rp 10.500.000
Rp 10.500.001 – Rp 12.000.000
Rp 12.000.001 – Rp 13.500.000
Rp 13.500.001 – Rp 15.000.000
Rp 15.000.001 - Rp 16.500.000
Rp 16.500.001 – Rp 18.000.000
Rp 18.000.001 - Rp 19.500.000
Rp 19.500.001 - Rp 21.000.000
More than Rp 21.000.001
3.4 Model: Full – Profile Approach of Conjoint Analysis
3.4.1 Introduction
As a statistical technique, Conjoint analysis used in market research to identify
how people estimate various features that make up an individual product or service. The
aim of conjoint analysis is to determine what integration of a restricted number of
attributes is most affecting on respondent choice or decision making. A controlled set of
potential products or services is indicated to respondents and by analyzing how they
make preferences between these products, the implicit assessment of the individual
components making up the product or service can be determined. Conjoint analysis was
favored because it overcomes the problems associated with single cue and self-report
studies by representing consumer choice as a multi-attribute judgment environment
(Okechuku, 1994). These implicit appraisals (utilities or part-worth) can be used to
build market models that estimate market share, revenue and even profitability of new
designs.
3.4.2 Conjoint Measurement
Mathematical psychology and psychophysics developed conjoint measurement.
There has a wide range of applications in attitudinal research, empirical social research,
ans psychology. Conjoint analysis is a set of models that stress the development of
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subjective responses into estimated parameters. The operationalization of the conjoint
measurement approach involves three steps: identification of determinant attributes,
data collection, and estimation of part-worth utility functions utilizing a multi attribute
decomposition model.
It has two basic methods to gathering data in conjoint measurement: “trade-off”
approach or “full-profile” approach. Regarding to “trade-off” approach, respondents are
requested to rank all integrations of attribute levels taking two attributes at a time. In
contrast, in the “full-profile” approach, respondents are requested to rank alternatives
described when it comes to all associated attributes.
3.4.3 Full-profile Approach of Conjoint Analysis
Full-profile conjoint analysis takes the approach of displaying a large number of
full product descriptions to the respondent. The assessment of these packages yields
large amounts of informations for each customer/respondent.
Full-profile conjoint analysis has been a popular approach to gouge attribute
utilities. In the full-profile conjoint task, a wide range of product descriptions (or even
different actual products) are developed and offered to the respondent for acceptability
or preference evaluations.
Each product profile shows a part of a fractional experimental design that evenly
matches the occurrence of each attribute with all other attributes. By controlling the
attribute pairings, the researcher can associate attributes with profile preferences and
estimate the respondent’s utility for each level of each attribute tested.
In the rating task, the respondent gives their preference or probability of purchase.
While many features and levels may be studied, this type of conjoint is optimum used
where a moderate number of profiles are presented, thereby minimizing respondent
fatigue. The innovational functionality of Qualtrics employs experimental designs to
decline the number of appraisal requests within the survey. The output and analysis
accumulated from full-profile conjoint surveys is similar to that of other conjoint
models.
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The Equation of Full-profile Approach of Conjoint Analysis in this study:
Y = αo + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + β6X6 + β7X7 + β8X8 + β9X9 + ℮
Where: βo: Constant Y: Purchase Intention
X1: ING1 variable X2: HAL1 variable X3: HAL2 variable
X4: HAL3 variable X5: ADV1 variable X6: ADV2 variable
X7: REC1 variable X8: REC2 variable X9: PRI variable
β1 – β9: the effects of variables ℮: error
This has been conducted based on:
Table 3.5 Information of dummy variable
Attribute Level Dummy Variable
ING1 X1 = 0
ING2 X1 = 1
HAL1 X2 = 1
HAL2 X3 = 1
HAL3 X4 = 1
HAL4 X2 = X3 = X4 = 0
ADV1 X5 = 1
ADV2 X6 = 1
ADV3 X5 = X6 = 0
REC1 X7 = 1
REC2 X8 = 1
REC3 X7 = X8 = 0
PRI X9 = 92.400; 108.000; 123.000
3.5 Questionnaire Design
The questionnaire and measurement scales exercised in this study were designed
and developed from several of prior studies that has been described earlier. The contents
and statements of the preliminary items were revised to be related to the research
context under suggestions of the advisor. Additionally, it was translated into Indonesian
language by using double translation method avoid the inadequate English proficiency
problem of some respondents.
The survey was conducted through enter a field of study and have direct
interactions with the respondents. The first parts of the survey include 20 cards for
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investigating how several attributes such as ingredients material, with Halal labels or
not, product’s price, advertisement, and endorser’s recommendation effect on consumer
Purchase Intention towards cosmetics- in this research kind of cosmetic has been used is
face cream, by using Conjoint Analysis. In addition, each card has the value, the
respondent should gives 1 to the most favored card, in other words they want to buy that
product which has the characteristics described in that card, otherwise they should give
bigger number onto the card which they think they don’t really like it, until the biggest
number which they think they don’t want to buy it. Each number that they give onto the
cards have the opposite values, which means for card has been given 1 from the
respondent has the biggest value equal 20, and so on until the last number which is 20
contains value only 1.
The second part of survey about repondent religiousity, according to Rajagopal
(2007). In addition, the six point scales from (1) strongly disagree to (6) strongly agree
also is applied to measure each items in this part.
Moreover, the respondents were asked to provide some of their own cosmetics
information based on their previous experience and personal information as in the list
shown in Table 3.2 and Table 3.3 respectively.
3.6 Sampling Plan
The reason for employing Indonesia for the respondents, due to at the end this
research result will be given to one of Taiwanese company who wants to expand their
business in Indonesia. But, moreover, there has rarely research about these issues in
Indonesia. Therefore, knowing more about Indonesian consumer preferences toward
cosmetics especially in different level of gender, age, and social status become a new
point of this research.
In relation to stimulus, cosmetics were chosen because of their wide use among
Indonesian nowadays, and their lifestyle have been shifted within several years into
become more aware about their appearence and their demand of skin care products has
increased. The target respondents of the study are people use cosmetics or who have
intention to buy cosmetics in the future.
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3.7 Data Analysis Procedures
In order to test the hypotheses, this study used PASW Statistics 18.0 software
and Microsoft Office Excel 2013 as major tools to help analyze the collected data. The
following data analysis techniques are detailed discussed as follows:
3.7.1 Descriptive Statistic Analysis
To better understand the characteristics of each variable, descriptive statistic
analysis used to illustrate the means, and standard deviation of each research variabel.
3.7.2 Purification and Reliability of the Measurement Variables
To purify the measurement scales and to identify their dimensionality, principal
components factor analysis with varimax rotation will be applied to condense the
collected data. After conducting factor analysis, item-to-total correlation and internal
consistency analysis will be employed to confirm the reliability of each research factors.
1. Factor Analysis
The purpose of factor analysis is to explore underlying variance structure of a set of
correlation coefficients. Factor analysis is used to not only summarize or reduce data but
also exploratory or confirmatory purpose. Factor analysis assumes that a small number
of unobserved variables. The latent constructs cannot be directly observed, but they
affect observable variables. In this study, measurement items with factor loadings
greater than 0.4 will be selected as the member of a specific factor.
2. Item-to-total Correlation
Item-to-total correlation measures the correlation of each item to the sum of the
remaining items within one factor. This approach assumes that total score is valid and
thus the extent to which the item correlates with the total score is indicative of
convergent validity for the item. Items with a low correlation (e.g., lower than 0.5) will
be deleted from further analysis.
3. Internal Consistency Analysis
Cronbach’s alpha (α) will be used to test the internal consistency of each factor.
According to Robinson and Shaver (1973), if α is greater than 0.7, it means that it has
high reliability and if α is smaller than 0.3, then it implies that there is low reliability.
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3.7.3 Interrelationships between Research Variables
1. Multiple Regressions
For a better understanding of the relationships between all the variables, multiple
regressions analysis will be used to analyze the relationships between a single
dependent variable and several independent variables. In this study, multiple regression
analysis method is used to figure the relationship between attributes consist of Halal
certification, ingredient, advertisement, recommendation, and price and Purchase
Intention.
2. Independent t-test
For a better understanding of the relationship between Halal Certification
Preference and Religiousity, Independent t-test will be used to analyze the relationship
between a single dependent variable and single independent variable. In this study,
Independent t-test is used to figure the relationship between Religiousity in different
gender which are female and male, and Halal Certification preference.
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CHAPTER FOUR
RESULTS AND DATA ANALYSIS
With regard to the size of sample, 800 questionnaires were distributed for those
800 Indonesian consumers either female and male. The composition of female and male
are equal which means consist of 400 female respondents and 400 male respondents.
This chapter will show the descriptive analysis of the respondents including the
response rates of the questionnaire, characteristic of the respondents, and the result of
the measurement variables. Then, results of the factor analysis and the reliability tests of
measurement scales which is also presented in this chapters. Moreover, this chapter will
also show the results of hypotheses testing.
4.1. The Result for Indonesian Dataset (Total respondents: 800)
4.1.1 Descriptive Statistic
A total of eight items with regard to basic respondents attributes including other
related information are observed in this study. These attribute variables consist of
gender, age, marital status, religion, working status, occupation, monthly income and
social class.
It is shown that the equal quantities between respondents are male (50%) and
female (50%). In terms of age, every age level almost has similar result which is the
vast majority of respondents aged from 35 – 39 years old (25.4%) and following by 45 –
49 years old (25.3%). When it comes to marital status, more than 90.3% of respondents
are married and just less than a quarter are single (8.1%). Most of respondents are
Muslim (84.3%), only 15.7% o respondents are Non-Muslim. Regarding the occupation,
fixed employee/staff take up more than 47.2% while housewife account for 24.0%. Also,
more than 60.5% earn from Rp.3000.001 – Rp.6.000.000 and 16.7% respondents can
earn from Rp.9000.001 – Rp.12.000.000 as a monthly income. Moreover, based on their
assets, expenditure and income, 50.9% respondents in social economic class A, and the
rest 49.1% respondents in social economic class B.
-47 -
Table 4.1 Descriptive analysis for characteristics of Indonesian respondents
Items Description Frequency Percentage (%)
Gender Male 400 50.0
Female 400 50.0
Age 30 – 34 199 24.9
35 – 39 203 25.4
40 – 44 196 24.5
45 – 49 202 25.3
Marital Status Single 65 8.1
Married 722 90.3
Divorced 13 1.6
Religion Muslim 674 84.3
Non-Muslim 126 15.7
Occupation Middle Management 38 4.8
Professional 16 2.0
Technicians 39 4.8
Fixed Employee/Staff 378 47.2
Service/Sales 104 13.0
Agriculture 4 0.5
Crafts Related 6 0.8
Machinery Worker 10 1.3
Labour 5 0.6
Military Personnel 8 1.0
Housewife 192 24.0
Monthly
Income
Less than Rp.3.000.000 117 14.6
Rp.3000.001 – Rp.6.000.000 483 60.5
Rp.6000.001 – Rp.9.000.000 133 16.7
Rp.9000.001 – Rp.12.000.000 50 6.2
Rp.12.000.001 – Rp.15.000.000 9 1.2
Rp.15.000.001 – Rp.21.000.000 2 0.2
More than 21.000.000 5 0.6
Social Status SEC A 407 50.9
SEC B 393 49.1
4.1.2 Consumer Behavior
Table 4.2 and Table 4.3 will presents the respondent’s usage of cosmetics which
also become major points in this study. There are two tables are separated based on the
gender and social status, due to this study focus on the differences in preferences based
on the demographic factors. Therefore each table will show different gender in different
age preferences.
Most of female respondents know cosmetic they used from Television ads with
-48 -
43.75% and 31% of female respondents know from friends or relatives advise which
mostly 36% of female respondents will buy that cosmetics in hypermarket/supermarket
and 26.25% will buy in convenience store. Whereas most of male respondents know
cosmetic they used from Television ads with 43.75% and 28% of male respondents
know from friends or relatives advise which mostly 52% of male respondents prefer to
buy in convenience store and 36.5% will buy in hypermarket/supermarket.
Table 4.2 Descriptive analysis for respondent’s cosmetics brand name usage in
Indonesia
Information Categories Female
Overall (%)
(30-
34)
(35-
39)
(40-
44)
(45-
49)
SC
A
SC
B
Respondent
’s Cosmetic
Brand
Name
Ponds 204 (51.0) 63 46 38 57 72 132
Olay 72 (18.0) 14 18 23 17 35 37
Oriflame 63 (15.0) 14 13 21 15 34 29
L’oreal 25 ( 6.0) 6 3 5 11 18 7
The Body Shop 17 ( 4.0) 6 5 2 4 12 5
Others 19 ( 6.0) 4 5 5 5 10 9
Subtotal 400 (100.0) 107 90 94 109 181 219
Categories Male
(Overall)
(30-
34)
(35-
39)
(40-
44)
(45-
49)
SC
A
SC
B
Biore 197 (49.0) 69 63 36 29 87 110
Ponds 106 (26.0) 31 21 23 31 58 48
Garnier 53 (13.0) 11 17 12 13 26 27
Olay 18 ( 4.5) 3 5 3 7 10 8
L’oreal 14 ( 3.5) 7 4 2 1 10 4
Others 12 ( 4.0) 3 3 3 3 5 7
Subtotal 400 (100.0) 124 113 79 84 196 204
Total 800 (100.0) 231 203 173 193 377 423
Most of female respondent choose Ponds (51%) as their cosmetic, then followed
by Olay (18%). For male, they prefer Biore (49%) as their cosmetic’s brand then
followed by Ponds (26.5%). Moreover, based on the result, most of female in younger
age use Ponds more than older age, and most of them from SES B. This is also shown in
male cosmetics brand name usage result, most of female in younger age use Biore more
than older age, and most of them from SES B.
In Indonesia, Ponds is using female actress as endorser in most of their
advertisements. But the result shows that, even Ponds identical with female users, the
same products are remain used by men. This is also describe that Ponds is really famous
brand and is used by consumers in every different level of age, social class, and gender.
-49 -
Table 4.3 Descriptive analysis for respondent’s cosmetics functions in Indonesia
Information Categories Female
Overall (%)
(30-
34)
(35-
39)
(40-
44)
(45-
49) SC A SC B
Respondent
’s Cosmetic
Functions
Improve dull skin
and make skin glow 121 (30.2) 35 33 23 30 62 59
Anti-wrinkles/anti-a
ging 105 (26.2) 16 28 30 31 49 56
Skin fairness 44 ( 11.0) 12 15 8 9 19 25
Skin tenderness 25 ( 6.2) 7 9 5 4 17 8
Anti-spots 23 ( 5.7) 7 4 7 5 11 12
Others 82 ( 20.7) 15 18 24 25 43 39
Subtotal 400 (100.0) 92 107 97 104 201 199
Categories Male
Overall (%)
(30-
34)
(35-
39)
(40-
44)
(45-
49) SC A SC B
Oil control 122 (30.5) 36 37 27 21 53 69
Improve dull skin
and make skin glow
93 (23.2) 20 20 23 30 52 41
Anti-wrinkles/anti-a
ging
28 ( 7.0) 5 9 5 9 16 12
After sun soothing
care
27 ( 6.7) 10 5 4 8 12 15
Skin fairness 24 ( 6.0) 8 5 8 3 18 6
Others 106 (26.6) 24 27 27 28 59 47
Subtotal 400 (100.0) 103 103 94 99 210 190
Total 800 (100.0) 195 210 191 203 411 389
Even tough respondents are using many different cosmetic brands, however
those cosmetics could have the same functions. Most of them which used by female
have a function to improve dull skin and make skin glow (30.2%) and followed by
anti-wrinkles or anti-aging function (26.2%). Whereas, most of them which used by
male have a function as oil control (30.5%) and followed by improve dull skin and
make skin glow (23.2%).
Based on the result, there is no so much differences for female respondents in all
different ages and social class who use cosmetics with functions either to improve dull
skin or as anti-aging. But, it can be seen that for anti-aging cosmetics are mostly used
by older female respondents in SES B, while for improve dull skin function are mostly
used by younger female respondents in SES A.
Whereas, for younger male respondents in SES B mostly choose cosmetic’s
function for oil control, and older male respondents in SES A mostly choose cosmetic’s
function to improve dull skin and make skin glow.
-50 -
Table 4.4 Descriptive analysis for respondent’s skin problem experience in Indonesia
Information Categories Female Overall
(%)
(30-
34)
(35-
39)
(40-
44)
(45-
49) SC A SC B
Respondent
’s skin
problem
Dull skin 104 ( 26.0 ) 29 24 23 28 51 53
Wrinkles 81 ( 20.2) 15 18 21 27 46 35
Skin too oily 79 ( 19.7 ) 27 22 20 10 30 49
Spots 56 ( 14.0 ) 8 13 16 19 35 21
Skin too dry 44 ( 11.0 ) 3 3 15 20 25 19
Others 36 ( 9.0 ) 7 8 11 10 17 19
Subtotal 400 (100.0) 89 88 106 114 204 196
Categories Male Overall
(%)
(30-
34)
(35-
39)
(40-
44)
(45-
49) SC A SC B
Skin too oily 120 ( 30.0 ) 40 34 26 20 42 78
Dull skin 100 ( 25.0 ) 20 25 25 30 59 41
Skin too dry 64 ( 16.0 ) 12 15 17 20 42 22
Skin Doo
rough
63 ( 15.7) 11 18 19 17 39 24
Easy to
become
darker
53 ( 13.2)
19 13 10 10 18 35
Subtotal 400 (100.0 ) 102 105 97 97 200 200
Total 800 (100.0 ) 191 193 203 211 404 396
In regards of cosmetic’s function, the proportion of female using cosmetic to
overcome dull skin problem (26%) and wrinkles problem (20.2%), suit with their
cosmetic’s function which for improve dull skin and make skin glow (30.2%) and
anti-wrinkles (26.2%). However, the proportion of male using cosmetic to overcome
skin too oily problem (30%) which become the main problem for male, followed by dull
skin (25%), suit with their cosmetic’s function which serve as oil control (30.5%) and to
improve dull skin and make skin glow (23.2%).
It has been consistent with the previous result about cosmetic’s function most
preferred. Most of younger age respondents face dull skin problem, which for female
26% and for male 25%. While, most of older female respondents face wrinkles problem
(20.2%), which become the second top list skin problem for female, and most of
younger male respondents face skin too oily problem,which become the first top list of
skin problem (30%).
-51 -
Table 4.5 Descriptive analysis for respondent’s usage of cosmetics in Indonesia
Information Categories Female
Overall (%)
(30-
34)
(35-
39)
(40-
44)
(45-
49)
SC
A
SC
B
Respondent’s
Usage of
Cosmetics
Twice a day or
more 257 ( 64.2) 71 59 67 60 120 137
Once a day 113 ( 28.2) 27 25 30 31 64 49
More than twice a
day 26 ( 6.5) 4 12 2 8 8 18
Others 4 ( 1.1) - - 2 2 1 3
Subtotal 400 (100.0) 102 96 101 101 193 207
Categories Male
Overall (%)
(30-
34)
(35-
39)
(40-
44)
(45-
49)
SC
A
SC
B
Twice a day or
more 220 ( 55.0) 65 53 52 50 118 102
Once a day 129 ( 32.2) 23 35 29 42 62 67
More than twice a
day 33 ( 8.2) 5 9 12 7 15 18
Others 18 ( 4.6) 4 5 5 4 9 9
Subtotal 400 (100.0) 97 102 98 103 204 196
Total 800 (100.0) 199 198 199 204 397 403
Moreover, frequencies of cosmetics usage by female and male are the same.
Female (64.2%) and male (55%), both are using cosmetics every twice a day or more.
Nevertheless, there are some female and male who use cosmetics only once a day. This
is probably can be distinguished by their level of activities.
-52 -
Table 4.6 Descriptive analysis for respondent’s cosmetics usage cost in Indonesia
Information Categories Female
Overall (%)
(30-
34)
(35-
39)
(40-
44)
(45-
49)
SC
A
SC
B
Respondent
’s Cosmetic
Usage Cost
< IDR 100.000 194 ( 48.5) 50 50 54 40 78 116
IDR 100.001 -
200.000 138 ( 34.5) 35 30 31 42 73 65
IDR 200.001 -
300.000 48 ( 12.0) 13 12 9 14 30 18
Others 20 ( 5.0) 6 6 4 4 8 12
Subtotal 400(100.0) 104 98 98 100 189 211
Categories Male
Overall (%)
(30-
34)
(35-
39)
(40-
44)
(45-
49)
SC
A
SC
B
< IDR 100.000 339 ( 84.7) 72 85 88 94 163 176
IDR 100.001 -
200.000
52 ( 13.0) 10 22 12 8 27 25
IDR 200.001 -
300.000
3 ( 0.7) 1 1 1 - 3 -
Others 6 ( 1.6) - - 3 3 5 1
Subtotal 400(100.0) 83 108 104 105 198 202
Total 800(100.0) 187 206 202 205 387 413
Most of female respondents have to buy those cosmetics they used from <IDR
100.000 (48.5%), while 34.5% of female respondents should pay in price range IDR
100.001 – 200.000. Similar with female, male respondents also have to buy those
cosmetics from <IDR 100.000 (84.75%), while 13% of male respondents pay in the
price range IDR 100.001 – 200.000.
Based on the data, female respondents do not mind to pay in the higher price
for their cosmetics expenses. However, most of male will spend their budget
approximately <IDR 100.000 for cosmetics expenses. Either female and male
respondents in SES B are going to afford <IDR 100.000 as a price for their cosmetics.
Moreover, younger female prefer buy the cosmetic with price <IDR 100.000, and
older female still can afford the higher price which is in the range IDR 100.001-200.000.
Otherwise, older male respondents are more concerned about price, they prefer cosmetic
with price <IDR 100.000, and younger male still can afford higher price which is in the
range IDR 100.001-200.000.
-53 -
Table 4.7 Descriptive analysis for respondent’s place of purchase cosmetics in
Indonesia
Information Categories Female
Overall (%)
(30-
34)
(35-
39)
(40-
44)
(45-
49)
SC
A
SC
B
Respondent
’s Place of
Purchase
Cosmetics
Hyper market/Super
market 144(36.0) 39 35 33 37 77 67
Convenience store 105(26.2) 27 29 26 23 39 66
Direct
sales/Telephone
marketing
70(17.5) 17 15 21 17 40 30
Cosmeceuticals
store/Pharmacy 33( 8.2) 11 9 7 6 23 10
Department
store/Shopping mall 24( 6.0) 2 5 7 10 17 7
Others 24( 6.0) 5 5 6 8 15 9
Subtotal 400(100.0) 101 98 100 101 211 189
Categories Male
Overall (%)
(30-
34)
(35-
39)
(40-
44)
(45-
49)
SC
A SC B
Convenience store 208(52.0) 45 43 53 67 107 101
Hyper market/Super
market
146(36.5) 42 42 34 28 75 71
Cosmeceuticals
store/Pharmacy
17( 4.2) 2 7 2 6 7 10
Department
store/Shopping mall
12( 3.0) 4 4 4 - 4 8
Direct
sales/Telephone
marketing
9( 2.2)
3 4 1 1 6 3
Others 8( 2.1) 2 1 3 2 3 5
Subtotal 400(100.0) 98 101 97 104 202 198
Total 800(100.0) 199 199 197 205 413 387
Most of female respondents buy their cosmetics in hypermarket/supermarket
(36%), there are also who buy their cosmetics in convenience store (26.2%). Female in
younger age prefer buy their cosmetics either in hypermarket or in convenience store.
However, Female respondents in SES A prefer buy cosmetics in hypermarket, and for
female respondents in SES B prefer buy cosmetics in convenience store.
In the other hand, most of male respondents buy their cosmetics in convenience
store (52%) and there are also who buy their cosmetics in hypermarket (36.5%) but not
as much as in convenience store. There is no so much different between male in SES A
and SES B, about the place they prefer to buy cosmetics, however it has been shown
that compare with male respondents with SES B, male with SES A are more numerous.
-54 -
Table 4.8 Descriptive analysis for respondent’s cosmetic advertisement usage in
Indonesia
Information Categories Female
Overall (%)
(30-
34)
(35-
39)
(40-
44)
(45-
49)
SC
A
SC
B
Respondent
’s Cosmetic
Advertisem
ent Usage
TV ads 175 (43.7) 39 30 48 58 70 105
Friends or relatives'
advise 124 (31.0) 56 25 23 20 74 50
Magazines & their
ads 51 (12.7) 27 5 5 14 15 36
Newspapers & their
ads 25 ( 6.2) 5 9 3 8 10 15
Sales promotion 15 ( 3.7) 2 2 6 5 5 10
Others 10 ( 2.5) 3 3 2 2 4 6
Subtotal 400(100.0) 132 74 87 107 178 222
Categories Male
Overall (%)
(30-3
4)
(35-3
9)
(40-4
4)
(45-4
9)
SC
A
SC
B
TV ads 175 (43.7) 32 35 52 56 80 95
Friends or relatives'
advise
112 (28.0) 33 25 24 30 69 43
Magazines & their
ads
52 (13.0) 20 15 9 8 28 24
Newspapers & their
ads
47 (11.7) 10 10 12 15 23 24
Sales promotion 14 ( 3.5) 3 4 4 3 6 8
Subtotal 400 (100.0) 98 89 101 112 206 194
Total 800 (100.0) 230 163 188 219 384 416
Based on the data, female respondents know their cosmetics products from TV
advertisements (43.7%). Moreover older female and female in SES B, watch TV more
often than younger female respondents and female in SES A. This has been followed by
friends or relatives advise (31%), as the way they know about their cosmetics. Younger
female respondents and female in SES A know their cosmetics products from their
friends and relatives.
This is similar with male respondents who also know their cosmetics products
from TV advertisements (43.7%), and mostly they are male respondents in SES B and
in older age. Nevertheless, some of male respondents, especially mostly male
respondents in SES A know their cosmetics from friends or relatives (28%).
-55 -
4.1.3 Descriptive Analysis for Indonesian Religiosity
Table 4.9 shows the descriptive statistics of questionnaire about respondent’s
religiousity. It has been divided into two group items which are worship and emotional
religiosity. As can be seen from this table, the standard deviations for all variables are
smaller than mean value indicates that the data points are clustered closely around the
mean.
As per descriptive analysis results above, in term of worship, item WO_2 of
worship variable gets the highest score of 5.5300. In term of worship, the result seems
indicate that Indonesian respondents show their worship by praying 5 times a day.
Furthermore, in term of emotional religiosity, the result shows that Indonesian
respondents have positive assessment with the highest score all items EMO_2 which is
“I do not feel all right if I do not obey the rules of Islam” of emotional religiosity
variable of 5.4993. The explanation for this result is that religious play an important role
in Indonesian respondent preference. Therefore, it might be there is a possibility that in
order to choose cosmetic, Indonesian respondents will see their dogma as consideration.
Table 4.9 Descriptve analysis for Indonesian consumer religiosity attitude
Construct Research Item Mean SD
Worship
WO1
WO2
WO3
WO4
WO5
WO6
WO7
WO8
WO9
WO10
5.3900
5.5300
5.2900
5.2826
5.1757
5.2269
5.1918
5.1435
5.1977
5.1318
0.7650
0.7270
0.7900
0.7662
0.8274
0.7714
0.9060
0.8353
0.7998
0.8665
Emotional
Religiosity
EMO1
EMO2
EMO3
EMO4
EMO5
4.1801
5.4993
5.0864
4.9165
4.6105
1.4725
1.0194
1.2664
1.3277
1.3755
4.1.4 Factor Analysis for Religiosity Indonesian Respondents
This research adopted principal component factor analysis and varimax rotated
method to extract the relevant factors. The essential criteria in terms of the values of
-56 -
factor of each variable loading are greater than 0.6. In the reliability analysis, eigenvalue
should certainly become larger than 1, the percentage of variance explained should be
bigger than 30%, and the item-to-total correlation must be greater than 0.5. Cronbach’s
coefficient alpha (α) should be larger than 0.5 (Hair et al., 2006). The results of the
factor analysis and reliability for each variable are shown in Table 4.5 and Table 4.6.
1. Worship
Base on the previous description part, the following ten items named as Worship
Value. In the terms of Muslim religiousity, worship play an increasingy vital role in
Indonesian Muslim’s life. Consequence, these items show the degree of religiousity and
the meaningful of Islamic dogma as guidance.
Table 4.10 Results of factor analysis and reliability analysis tests on worship value
Construct Research
Item
Factor
Loading
Eigen
Value
Accumlative
Explanation
Item to
Total
Correlation
Cronbach’s
α
Worship
Value
KMO=
0.928
Bartlett’s
=0.000
WO1
WO2
WO3
WO4
WO5
WO6
WO7
WO8
WO9
WO10
0.724
0.814
0.814
0.810
0.783
0.793
0.725
0.763
0.837
0.770
6.223 41.484% 0.930
0.926
0.925
0.924
0.926
0.925
0.929
0.927
0.924
0.927
0.933
Table 4.10 shows that the factors of Worship value. The factor loadings of ten
items under the Worship Value are greater than 0.6. The eigenvalue extracted from the
factor analysis of Worship Value is 6.223 and the total variance explained by these ten
items under Worship Value is 41.484%. Moreover, all items also yield high value of
reliability (α=0.933). It is also shown that the item to total correlation is greater than 0.7
of all ites within this factor that tend to have a high coefficient. Based on the result of
this factor analysis, it can be concluded that the high degree of internal consistency is
existed and the results of all criteria are acceptable.
-57 -
2. Emotional Religiosity
Table 4.11 Results of factor analysis and reliability analysis tests on worship value
Construct Research
Item
Factor
Loading
Eigen
Value
Accumlative
Explanation
Item to
Total
Correlation
Cronbach
’s α
Emotional
Religiosity
Value
KMO=
0.928
Bartlett’s=
0.000
WO1
WO2
WO3
WO4
WO5
0.672
0.806
0.840
0.771
0.752
3.125 62.317% 0.832
0.775
0.767
0.796
0.800
0.828
Table 4.11 shows that the result for Emotional Religiosity Value. There is no
deleted item for this construct because of all factor loadings are greater than 0.6. With
the criteria of eigenvalues greater than 1.0, it is shown that there is an eigenvalue of
3.125 with the variance explained of 62.317%. Item to total correlation of the five items
are all above 0.6 as well as the Cronbach’s alpha also meet the criterion with 0.828
(larger than 0.7) which states that all items are high value of reliability. In brief, five
items all pass every criterion.
4.1.5 Independent t-test for Indonesian Religiosity Preference
Table 4.12 Independent sample t-test for religiosity
Gender N Mean Std. Dev Std. Error
Mean F-value p-value
Worship Female 344 -0.1405 1.10179 0.059404
13.957 0.000 Male 339 0.1426 0.86332 0.046889
Emotional
Religiosity
Female 344 -0.1010 0.96793 0.052187 7.135 0.008
Male 339 0.1024 1.02277 0.055549
Note: *** p < 0.001, ** p < 0.01, * p <0.05, +p < 0.1
In the Table 4.12, the Religiosity Value level can be achieved substantial result.
The mean of Female in Worship scored -0.1405 is much different from Male (0.1426).
This result is consistent with the mean of Female in Emotional Religiosity scored
-0.1010 is much different from Male (0.1024). Additionally, F-value for both religiosity
value (13.957 and 7.135) are less than criteria of 4.0 and p-value (0.000 and 0.008) are
higher than 0.1 which means that Gender significantly effect on Religiosity.
-58 -
4.2. Part-worth Series
This part of the studies will provide informtion about the scores provided by
conjoint analysis which will identify both utility score, showing the impact of the each
attributes in the respondents perspectives and important scores of each cosmetics
attributes which can illustrate the major factor that effect consumer’s behavior on
purchasing cosmetics.
4.2.1 Conjoint Analysis for Indonesian Consumer Preference
Y = αo + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + β6X6 + β7X7 + β8X8 + β9X9 + ℮
Where: βo: Constant Y: Purchase Intention X1: ING1 variable
X2: HAL1 variable X3: HAL2 variable X4: HAL3 variable
X5: ADV1 variable X6: ADV2 variable X7: REC1 variable
X8: REC2 variable X9: PRI variable
β1 – β9: the effects of variables ℮: error
The descriptive analysis in Table 4.13 indicate that except each section has its
own dummy variable. Therefore in each section there is one variable should be deleted.
In order to get the result, can be seen from the table. The total of each section should be
1, therefore the rest calculation of each items in each section should become the
nominal of those dummy variables (Naturally Herbal, MUI Certification, Internet,
Expert).
The result illustrates that Indonesian would rather give precedence to Halal
Certification as their consideration in choosing cosmetics. For instance, they give β4
(-0.172017) as the lowest score in all items. The beta of Halal Certification result can be
explained that in terms of choose cosmetics, Halal Certification become the main effect
on their purchase intention. Especially, most of Indonesian are Muslims, and they are
extremely care about the certification. Due to, without Halal certification on the
products, shows the negative result. It means that, Indonesian will not choose cosmetic
products without Halal Certification. This is aligned with the religiousity result. The
result shows there is highly religious preference of Indonesian.
-59 -
Table 4.13 Conjoint analysis for Indonesian consumer preference
Attributes Mean of β Std. Deviation N
Intercept (β o) 0.988505 0.2802056 800
Biotech (β1) -0.003284 0.1618462 800
Taiwan Cert. (β2) -0.019116 0.2255648 800
Taiwan Cert. with MUI recognition
(β3) 0.013675 0.1971631 800
No Halal Cert. (β4) -0.172017 0.3344907 800
Mass Media (β5) 0.051664 0.1955518 800
In-Store Lightbox (β6) -0.057532 0.2177388 800
Celebrity (β7) 0.021503 0.1981371 800
User’s Testimonial (β8) 0.027426 0.1905428 800
Price (β9) -0.071023 0.0243653 800
According to the result of Ingredient, β1 gets score with -0.003284 which means
Indonesian have negative assessment to Biotech ingredient, but actually it does not
really give big impact on consumer purchase decision. Moreover, in term of
Advertisement dimension, the β5 gets the highest score with 0.051664 which make a
huge distance to the test beta in Advertisement group. In addition, β5 (0.051664) is
positive means Indonesian have positive assessment to Mass Media and the contrary, β6
– In-store lightbox (-0.057532) has negative relationship with Indonesian consumer.
Furthermore, the results show Indonesian put the response on β7 – Celebrity
endorsement that not much difference from β8 – User’s Testimonial. In brief, Indonesian
like cosmetics with naturally herbal ingredient rather than biotech ingredient, and their
purchase decision has been influenced by mass media as advertisement, and also user’s
testimonial which a bit stronger than celebrity endorsement as recommendation
dimension.
In term of Price dimension, the β9 is scored -0.071023. The beta of Price presents
the negative relationship with consumer purchase intention. It can be assume that the
respondent’s purchase intention can be decrease if price is increase too much. Among
all the above items, it can be concluded that Indonesian especially interest on Halal
Certification in their purchase intention which means Halal Certification significantly
effect on Indonesian purchase intention. In particular, Halal Certification got negative
or positive effect that depends on the manufactured country.
-60 -
4.2.2 Hypothesis Testing for Indonesian Market
Table 4.14 Utilities (part-worth) for male conjoint profiles
Age Attribute Level Utility
Range
of
Utility
Importan
ce of
Attribute
(%)
30-34
A1-Ingredients Naturally herbal -0.068
0.135 4.82 Hi-tech composition 0.068
A2-Halal
with MUI Halal 0.033
1.136 40.54
with TW Halal -0.748
with TW Halal & MUI
recognition words 0.388
without Halal 0.327
A3-Media
Mass media (TV, Magazine,
Radio) 0.048
0.378 13.47 Internet (FB, Twitter) 0.165
In-store lightbox -0.213
A4-Recommen
dation
Expert -0.230
0.398 14.22 Celebrity 0.061
User's tesimonial 0.169
A5-Price
IDR 92,400 0.481
0.755 26.94 IDR 108,000 -0.207
IDR 123,000 -0.274
-61 -
Table 4.14 Utilities (part-worth) for male conjoint profiles (continued)
Age Attribute Level Utility
Range
of
Utility
Importance
of Attribute
(%)
35-39
A1-Ingredients Naturally herbal -0.111
0.223 11.00 Hi-tech composition 0.111
A2-Halal
with MUI Halal 0.211
0.818 40.37
with TW Halal -0.420
with TW Halal & MUI
recognition words 0.398
without Halal -0.189
A3-Media
Mass media (TV,
Magazine, Radio) 0.122
0.249 12.27 Internet (FB, Twitter) 0.004
In-store lightbox -0.126
A4-Recommen
dation
Expert -0.132
0.258 12.75 Celebrity 0.006
User's tesimonial 0.126
A5-Price
IDR 92,400 0.269
0.478 23.60 IDR 108,000 -0.060
IDR 123,000 -0.209
Age Attribute Level Utility
Range
of
Utility
Importance
of Attribute
(%)
40-44
A1-Ingredients Naturally herbal -0.032
0.063 2.85 Hi-tech composition 0.032
A2-Halal
with MUI Halal 0.210
0.788 35.52
with TW Halal -0.427
with TW Halal & MUI
recognition words 0.361
without Halal -0.144
A3-Media
Mass media (TV,
Magazine, Radio) 0.153
0.269 12.12 Internet (FB, Twitter) -0.037
In-store lightbox -0.116
A4-Recommen
dation
Expert -0.218
0.528 23.79 Celebrity -0.092
User's tesimonial 0.310
A5-Price
IDR 92,400 0.301
0.571 25.73 IDR 108,000 -0.031
IDR 123,000 -0.270
-62 -
Table 4.14 Utilities (part-worth) for male conjoint profiles (continued)
Age Attribute Level Utility
Range
of
Utility
Importan
ce of
Attribute
(%)
45-49
A1-Ingredients Naturally herbal -0.028
0.057 1.84 Hi-tech composition 0.028
A2-Halal
with MUI Halal 0.281
1.201 39.12
with TW Halal -0.704
with TW Halal & MUI
recognition words 0.497
without Halal -0.074
A3-Media
Mass media (TV, Magazine,
Radio) 0.222
0.541 17.63 Internet (FB, Twitter) 0.098
In-store lightbox -0.320
A4-Recommen
dation
Expert -0.233
0.450 14.67 Celebrity 0.015
User's tesimonial 0.218
A5-Price
IDR 92,400 0.123
0.821 26.73 IDR 108,000 0.349
IDR 123,000 -0.472
A part-worth score or utility score is given and its shows whether an attribute
will add to a scenario’s total worth or subtract from it. If utility shows low scores, it
could be said the attribute did not have significant influence on decision making. By
analyzing result it can be known which of the attributes is the strongest in influencing
the choice of the respondents when responding the following statement: The cosmetic I
would like to buy is the cosmetic in this particular order.
The Table 4.14 lists the utility scores for all five attributes for male respondents
in different level of ages. The biotech level of ingredient attribute contributes a positive
score of 0,068 and 0,111 for younger male and 0,032 and 0,028 for older male, and the
natural level of ingredient contributes a score of -0,068 and -0,111 for younger male and
-0,032 and -0,028 for older male. Therefore it can be stated that the male respondents in
different level of ages prefer the biotech ingredient over natural ingredient.
The second attribute, Halal certification come out with an outstanding score of
-0,748 for male in age 30-34 years old, when it is Taiwan Halal certification and 0,497
-63 -
when it is with Taiwan Halal and MUI recognition words for male in age 45-49 years
old. Moreover, based on the result, male in all different level of ages except in 35-39
year old have negative preference on cosmetic without Halal certification. The highest
score for without Halal is -0,472 which is for male in 45-49 years old. Otherwise, for
younger male in 30-34 years old, shows positive score of 0,327 for cosmetic without
Halal certification. It has been seen that different level of age, male has different
preference of Halal certification.
The mass media (TV, magazine, radio, etc) level of media advertisement
contributes a positive score of 0,048 and 0,122 for younger male and 0,153 and 0,222
for older male, and in-store light box level of media advertisement contributes a
negative score of -0,213 and -0,126 for younger male and -0,116 and -0,320 for older
male. After all, internet contributes a positive score of 0,165 for male in age 30-34.
Therefore it can be stated that the male respondent in age 30-34 years old prefer internet
as media to gather information about cosmetics, in the other hand male respondents in
age older than 35 year old prefer mass media such as TV, magazine, radio, etc as media
to gather information about cosmetics. Besides, in for male in different level of ages
have negative preference about in-store lightbox as media advertisements.
In terms of endorser’s recommendation the respondents answer contribute a
positive score of 0,169 and 0,126 for younger male and 0,310 and 0,218 for older male
for user’s testimonial level and -0,230 and -0,132 for younger male and -0,218 and
-0,233 for older male for expert level of endorser’s recommendation attribute. These
results show that user’s testimonial is preferred.
Lastly the price attribute provided a score of 0,481; 0,269; and 0,301 when the
price is IDR 92.400 (the lowest price) for male in the range age 30 – 44 years old and
-0,274, -0,209, -0,270, and -0,472 when the price is IDR 123.000 (the highest price) for
all male in different level of age. However, for male in older age which is in range 45 –
49 years old, they answer contribute a positive score of 0,349 when the price is IDR
108.000. Therefore it can be said younger male respondents are attracted to the low
level of price and older male respondents can afford higher price which is IDR 108.000.
-64 -
Table 4.15 Utilities (part-worth) for female conjoint profiles
Age Attribute Level Utility
Range
of
Utility
Importance
of Attribute
(%)
30-34
A1-Ingredients Naturally herbal 0,144
0,288 8,92 Hi-tech composition -0,144
A2-Halal
with MUI Halal -0,074
0,316 9,80
with TW Halal -0,250
with TW Halal & MUI
recognition words 0,066
without Halal 0,258
A3-Media
Mass media (TV,
Magazine, Radio) 0,015
0,537 16,66 Internet (FB, Twitter) 0,261
In-store lightbox -0,276
A4-Recommendation
Expert -0,389
0,589 18,27 Celebrity 0,200
User's tesimonial 0,190
A5-Price
IDR 92,400 0,721
1,494 46,35 IDR 108,000 0,052
IDR 123,000 -0,773
Age Attribute Level Utility
Range
of
Utility
Importance
of Attribute
(%)
35-39
A1-Ingredients Naturally herbal 0,001
0,002 0,09 Hi-tech composition -0,001
A2-Halal
with MUI Halal -0,220
0,196 6,77
with TW Halal -0,223
with TW Halal & MUI
recognition words -0,027
without Halal 0,470
A3-Media
Mass media (TV,
Magazine, Radio) 0,145
0,270 9,34 Internet (FB, Twitter) -0,021
In-store lightbox -0,125
A4-Recommendation
Expert -0,271
0,463 16,02 Celebrity 0,192
User's tesimonial 0,078
A5-Price
IDR 92,400 0,970
1,958 67,78 IDR 108,000 0,018
IDR 123,000 -0,988
-65 -
Table 4.15 Utilities (part-worth) for female conjoint profiles (continued)
Age Attribute Level Utility
Range
of
Utility
Importance
of Attribute
(%)
40-44
A1-Ingredients Naturally herbal 0,015
0,030 1,60 Hi-tech composition -0,015
A2-Halal
with MUI Halal -0,050
0,012 0,67
with TW Halal -0,062
with TW Halal & MUI
recognition words -0,062
without Halal 0,173
A3-Media
Mass media (TV,
Magazine, Radio) 0,149
0,386 20,81 Internet (FB, Twitter) 0,089
In-store lightbox -0,238
A4-Recommendation
Expert -0,279
0,563 30,35 Celebrity -0,005
User's tesimonial 0,284
A5-Price
IDR 92,400 0,350
0,864 46,56 IDR 108,000 0,163
IDR 123,000 -0,514
Age Attribute Level Utility
Range
of
Utility
Importance
of Attribute
(%)
45-49
A1-Ingredients Naturally herbal 0,137
0,273 7,44 Hi-tech composition -0,137
A2-Halal
with MUI Halal -0,082
0,466 12,69
with TW Halal -0,278
with TW Halal & MUI
recognition words 0,188
without Halal 0,371
A3-Media
Mass media (TV,
Magazine, Radio) 0,167
0,472 12,84 Internet (FB, Twitter) 0,098
In-store lightbox -0,305
A4-Recommendation
Expert 0,025
0,536 14,59 Celebrity -0,281
User's tesimonial 0,255
A5-Price
IDR 92,400 0,152
1,926 52,44 IDR 108,000 0,887
IDR 123,000 -1,039
-66 -
The Table 4.15 lists the utility scores for all five attributes for female
respondents in different level of ages.
The natural level of ingredient attribute contributes a positive score of 0,144 and
0,001 for younger female and 0,015 and 0,137 for older male, and the biotech level of
ingredient contributes a score of -0,244 and -0,001 for younger female and -0,015 and
-0,137 for older female. Therefore it can be stated that the female respondents in
different level of ages prefer the natural ingredient over biotech ingredient.
The second attribute, Halal certification come out with score of 0,258 and 0,470
for female in younger age, and 0,173 and 0,371 when it is without Halal certification.
The other hand Taiwan Halal certification and MUI Halal certification contribute
negative score of -0,250, -0,223, -0,062, -0,278 for Taiwan Halal certification and
-0,074, -0,220, -0,050, -0,082 for MUI Halal certification. It has been seen that for
female in different level of age, they prefer cosmetic without Halal certification rather
than cosmetics which have Halal certification from Indonesia or Taiwan.
The mass media (TV, magazine, radio, etc) level of media advertisement
contributes a positive score of 0,145, 0,149, 0,167 for female in the range age 35 – 49
years old, and for female in the range age 30 – 34 years old, when the media
advertisement is internet (0,261). Furthermore, in-store light box level of media
advertisement contributes a negative score of -0,276 and -0,125 for younger female and
-0,238 and -0,305 for older female. Therefore it can be stated that the female respondent
in age 30-34 years old prefer internet as media to gather information about cosmetics, in
the other hand female respondents in age older than 35 year old prefer mass media such
as TV, magazine, radio, etc as media to gather information about cosmetics. Besides,
for female in different level of ages have negative preference about in-store lightbox as
media advertisements.
In terms of endorser’s recommendation the respondents answer contribute
positive scores of 0,190 and 0,078 for younger female and 0,284 and 0,255 for older
female for user’s testimonial level and -0,389, -0,271, -0,274 for female in range age 30
– 45 years old when it is expert level of endorser’s recommendation attribute. However,
the contrary happens for older female in range age more than 45 years old, the expert
level of endorser’s recommendation gives positive contribution by showing 0,025. It has
been profound that female respondents in range age 30 – 39 years old answer contribute
-67 -
positive scores of 0,200 and 0,192 when it is celebrity as endorser. These results show
that user’s testimonial is preferred, however in younger age, celebrity also plays a role
to attract female respondents in order to choose the cosmetics products.
Lastly the price attribute provided a score of 0,887; 0,350; 0,970; and 0,721 when the
price is IDR 92.400 (the lowest price) and -0,773, -0,988, -0,514, and -1,039 when the
price is IDR 123.000 (the highest price). Therefore it can be said the female respondents
are attracted to the low level of price.
Table 4.16 Utilities (part-worth) for male conjoint profiles based on social class
SEC Attribute Level Utility
Range
of
Utility
Importan
ce of
Attribute
(%)
SEC A
A1-Ingredients Naturally herbal -0.090
0.180
8.02 Hi-tech composition 0.090
A2-Halal
with MUI Halal 0.021
0.728
32.40
with TW Halal -0.341
with TW Halal & MUI
recognition words 0.388
without Halal -0.068
A3-Media
Mass media (TV,
Magazine, Radio) -0.023
0.236
10.48 Internet (FB, Twitter) 0.129
In-store lightbox -0.106
A4-Recommendation
Expert -0.343
0.629
27.98 Celebrity 0.057
User's tesimonial 0.286
A5-Price
IDR 92,400 -0.201
0.475
21.12 IDR 108,000 0.274
IDR 123,000 -0.073
-68 -
Table 4.16 Utilities (part-worth) for male conjoint profiles based on social class
(continued)
SEC Attribute Level Utility
Range
of
Utility
Importance
of Attribute
(%)
SEC B
A1-Ingredients
Naturally herbal -0.012
0.024
0.97 Hi-tech
composition 0.012
A2-Halal
with MUI Halal 0.196
0.908
36.36
with TW Halal -0.428
with TW Halal &
MUI recognition
words
0.480
without Halal -0.248
A3-Media
Mass media (TV,
Magazine, Radio) 0.225
0.432
17.28 Internet (FB,
Twitter) -0.019
In-store lightbox -0.206
A4-Recommendation
Expert -0.146
0.233
9.34 Celebrity 0.087
User's tesimonial 0.059
A5-Price
IDR 92,400 0.455
0.904
36.04 IDR 108,000 -0.445
IDR 123,000 -0.012
The Table 4.16 lists the utility scores for all five attributes for male respondents
in different level of social class. Social class has been divided into two parts which are
social class A and social class B. Those respondents who are in the social class A have
the average household expenditure more than IDR 3.000.000 in each month for daily
needs such as eating, drinking, pulses, school fees, electricity, water, telephone accounts,
maid salary, etc. But does not include expenditures for installment purchase large and
expensive items such as car, home, etc.
The biotech level of ingredient attribute contributes a positive score of 0,090 and
0,012 for male in SEC A and SEC B, and the natural level of ingredient contributes a
score of -0,090 and -0,012 either for male in SEC A and SEC B. Therefore it can be
stated that the male respondents in different level of social class prefer the biotech
ingredient over natural ingredient.
-69 -
The second attribute, Halal certification contributes a positive score of 0,388 for
male in SEC A and 0,480 for male in SEC B when it is with Taiwan Halal and MUI
recognition words. Moreover, based on the result, male in different level of social class
have negative preference on cosmetic without Halal certification. For male in SEC A,
shows of -0,341 and for male in SEC B shows -0,428 for cosmetic without Halal
certification. It has been seen that in different level of social class, male has same
preference of Halal certification.
The internet level of media advertisement contributes a positive score of 0,129
for male in SEC A and 0,225 for male in SEC B, and in-store light box level of media
advertisement contributes a negative score of -0,106 and -0,206 for either male in SEC
A and SEC B. Therefore, it has been seen that for male in SEC A, they have positive
preference on internet in order to seek the information about the cosmetic, and for male
in SEC B, they have positive preference on mass media such as TV, magazine, radio,
etc. However, either male in SEC A and male in SEC B, they have same negative
preferences about in-store lightbox as media advertisement.
In terms of endorser’s recommendation the respondents answer contribute a
positive score of 0,286 for male in SEC A for user’s testimonial level and and 0,087 for
male in SEC B for celebrity endorser’s recommendation. Moreover, for both male in
SEC A and SEC B, expert recommendation level of endorser’s recommendation
contributes negative score of -0,343 and -0,146 for both male in SEC A and SEC B.
These results show that user’s testimonial is preferred by male in higher social
economic class, and celebrity recommendation is preferred by male in lower social
economic class.
Lastly the price attribute provided a score of 0,274 when the price is IDR
108.000 and -0,201 when the price is IDR 92.400 (the lowest price) for male in SEC A.
Otherwise, for male in SEC B, the price attribute provided a score of 0,455 when the
price is IDR 92.400 and -0,445 when the price is IDR 108.000. Therefore it can be said
male respondents in SEC B are attracted to the lower level of price and male
respondents in SEC A can afford higher price which is IDR 108.000.
-70 -
Table 4.17 Utilities (part-worth) for female conjoint profiles based on social class
SEC Attribute Level Utility
Range
of
Utility
Importan
ce of
Attribute
(%)
SEC A
A1-Ingredients Naturally herbal 0.064
0.129 4.73 Hi-tech composition -0.064
A2-Halal
with MUI Halal 0.044
0.237 8.70
with TW Halal -0.193
with TW Halal & MUI
recognition words 0.042
without Halal 0.107
A3-Media
Mass media (TV,
Magazine, Radio) 0.111
0.301 11.04 Internet (FB, Twitter) 0.078
In-store lightbox -0.189
A4-Recommendation
Expert -0.329
0.649 23.81 Celebrity 0.009
User's tesimonial 0.320
A5-Price
IDR 92,400 -0.792
1.409 51.72 IDR 108,000 0.617
IDR 123,000 0.175
SEC B
A1-Ingredients Naturally herbal 0.024
0.049
2.04 Hi-tech composition -0.024
A2-Halal
with MUI Halal -0.121
0.190
7.97
with TW Halal -0.245
with TW Halal & MUI
recognition words -0.055
without Halal 0.421
A3-Media
Mass media (TV,
Magazine, Radio) 0.174
0.569
23.88 Internet (FB, Twitter) 0.198
In-store lightbox -0.372
A4-Recommendation
Expert -0.200
0.311
13.06 Celebrity 0.111
User's tesimonial 0.089
A5-Price
IDR 92,400 0.667
1.265
53.05 IDR 108,000 -0.070
IDR 123,000 -0.597
-71 -
The Table 4.17 lists the utility scores for all five attributes for female
respondents in different level of social class. Similar with male respondents, social class
has been divided into two parts, consist of social class A for those who have the average
household expenditure more than IDR 3.000.000 in each month for daily needs such as
eating, drinking, pulses, school fees, electricity, water, telephone accounts, maid salary,
etc. But does not include expenditures for installment purchase large and expensive
items such as car, home, etc.
The natural level of ingredient attribute contributes a positive score of 0,064 for
female in SEC A, and 0,024 for female in SEC B. In the other hand, biotech level of
ingredient attribute contributes a negative score of -0,064 for female in SEC A and
-0,024 for female in SEC B. Therefore it can be stated that the female respondents in
different level of social class prefer the natural ingredient over biotech ingredient.
The second attribute, Halal certification come out with score of 0,107 and 0,421
for female in both SEC A and SEC B, when it is without Halal certification. The other
hand Taiwan Halal certification contribute negative score of -0,193 and -0,245 for
female in both SEC A and SEC B. It has been seen that for female in different level of
social class, they prefer cosmetic without Halal certification rather than cosmetics
which have Halal certification from Indonesia or Taiwan or even both of them.
The mass media (TV, magazine, radio, etc) level of media advertisement
contributes a positive score of 0,111 and 0,174 for both female in SEC A and SEC B,
but when the media advertisement is internet, only female in SEC B who has positive
preference (0,198). Furthermore, in-store light box level of media advertisement
contributes a negative score of -0,189 and -0,372 for both female in SEC A and SEC B.
Therefore it can be stated that the female respondent in SEC B prefer internet as media
to gather information about cosmetics, in the other hand female respondents in SEC A
prefer mass media such as TV, magazine, radio, etc as media to gather information
about cosmetics. Besides, for female in different level of social class have negative
preference about in-store lightbox as media advertisement.
In terms of endorser’s recommendation the respondents answer contribute
positive scores of 0,190 and 0,078 for younger female and 0,284 and 0,255 for older
female for user’s testimonial level and -0,389, -0,271, -0,274 for female in range age 30
– 45 years old when it is expert level of endorser’s recommendation attribute. However,
-72 -
the contrary happens for older female in range age more than 45 years old, the expert
level of endorser’s recommendation gives positive contribution by showing 0,025. It has
been profound that female respondents in range age 30 – 39 years old answer contribute
positive scores of 0,200 and 0,192 when it is celebrity as endorser. These results show
that user’s testimonial is preferred, however in younger age, celebrity also plays a role
to attract female respondents in order to choose the cosmetics products.
Lastly the price attribute provided a score of 0,617 when the price is IDR
108.000 and -0,792 when the price is IDR 92.400 (the lowest price) for female in SEC
A. Otherwise, for female in SEC B, the price attribute provided a score of 0,667 when
the price is IDR 92.400 and -0,597 when the price is IDR 123.000. Therefore it can be
said female respondents in SEC B are attracted to the lowest level of price and female
respondents in SEC A can afford higher price which is IDR 108.000.
4.2.3 Average Importance Scores
Table 4.18 and Figure 4-1 show the averaged importance scores of the five
attributes. In addition to the utility scores of each attribute, conjoint analysis also
calculates an averaged importance score out of a total of 100. For instance if an attribute
will be given a score of 50 that would mean the attribute contributed 50% to the
decision making of an individual. The averaged importance scores mirror the results of
the utility scores in terms of the ranking of the attributes. Halal certification (average =
38,88%) turns out as the most important factor for male, and price (average = 53,28%)
for female. This has been followed by Price (average = 25,75%) for male, and
endorser’s recommendation (average = 19,81%) for female, then endorser’s
recommendation (average = 16,36%) for male and media advertisement (average =
14,91%) for female. Media advertisement (average = 13,87%) become the fourth factor
for male, while Halal certification (average = 7,48%) also occupied the same position
for female. Finally, ingredient is placed in the last important factor for both male
(average = 5,13%) and female (average = 4,51%).
-73 -
Table 4.18 Average importance scores in different level of age
Age/
Attribute
Male (in percentage) Age/
Attribute
Female (in percentage)
30-34 35-39 40-44 45-49 30-34 35-39 40-44 45-49
Halal 40.54 40.37 35.52 39.12 Price 46.35 67.78 46.56 52.44
Price 26.94 23.60 25.73 26.73 Endorser 18.27 16.02 30.35 14.59
Endorser 14.22 12.75 23.79 14.67 Media 16.66 9.34 20.81 12.84
Media 13.47 12.27 12.12 17.63 Halal 9.80 6.77 0.67 12.69
Ingre-
dient 4.82 11.00 2.85 1.84
Ingre-
dient 8.92 0.09 1.60 7.44
In terms of different level of social class which are divided into two parts, social
class A and social class B, male and female have different perspectives. As listed in
Table 4.13 the averaged importance scores mirror the results of the utility scores in
terms of the ranking of the attributes. Halal certification (32,40% and 36,36%) turns out
as the most important factor for male, and price (51,72% and 53,05%) for female. Male
in SEC A consider endorser’s recommendation (27,98%) especially from user’s
testimonial is more important than price, otherwise price (36,04%) is more important
for male in SEC B and then followed by media advertisement (17,28%). Moreover,
female respondents in SEC A has similar preference with male in SEC, which consider
endorser’s recommendation (23,82%) is more impotant then followed by media
(11,04%). Otherwise, female respondents in SEC B consider media (23,88%) as the
second important consideration after price, then followed by endorser’s
recommendation (13,06%). Female respondent either in SEC A and SEC B consider
Halal certification (8,70% and 7,97%) as not highly important considerations.
Eventually, ingredient attribute has been placed in the last position for either male and
female in different level of social class.
Table 4.19 Average importance scores in different level of social class
Male (in percentage) Female (in percentage)
Attribute SEC A Attribute SEC B Attribute SEC A Attribute SEC B
Halal 32.40 Halal 36.36 Price 51.72 Price 53.05
Endorser 27.98 Price 36.04 Endorser 23.81 Media 23.88
Price 21.12 Media 17.28 Media 11.04 Endorser 13.06
Media 10.48 Endorser 9.34 Halal 8.70 Halal 7.97
Ingre-
dient 8.02
Ingre-
dient 0.97
Ingre-
dient 4.73
Ingre-
dient 2.04
-74 -
4.2.4 Comparison of Respondent’s Gender, Age, and Social Class
Conjoint analysis has been conducted to identify significant differences between
male and female in term of utility scores. The finding form Table 4.9 and 4-10 indicate
that ingredient, Halal certification, media advertisement, endorser’s recommendation
and price have found to be significantly different among age on utility score.
Recent research shows that man ages 20-34 shop considerably more than older
man in every retail channel (Kamins and Marks, 1991) and they are more openly
shopping for health and beauty ads than in the past year, indicating a future trend
towards less stereotypical shopping behavior. In the other hand, nowadays, cosmetic is
becoming the new trend not only for female, but also for male. In Coley and Burgess
(2003) research about gender differences in impulse buying behavior had been found
that man & woman were found to differ in terms of the frequency with which a variety
of products were impulsively purchased including: health and beauty products,
magazines, and books. With respect to the results of this research, there are significantly
differences between male and female respondents about their cosmetic preferences. The
result shows that in terms of ingredient, Halal certification, and endorser’s
recommendation, male and female preferences are significantly different. Male choose
biotech ingredient, Taiwan Halal certification with MUI recognition and user’s
testimonial recommendation, however female choose natural ingredient, without Halal
certification and celebrity recommendation.
Moreover, the social class impact on purchase intention between different
gender has been discussed in previous research. Research has been conducted by
Sivadas, Mathew and Curry (1997) about examination of social class to marketing, has
been found that consumers in different social class which divided into three-way
classification (upper, middle, and lower) have different lifestyle, media choices and
activities. Those who are in upper class spend more their money to get entertained at
home, watch cable Television subscription and care about health more than the middle
class one. This result has supported this research that shows male and female in
different level of social class have different preferences. Male in social class A prefer
internet as media advertisement, user’s testimonial as endorser’s recommendation and
higher cosmetic price, the followed by female in social class A who has similar result,
they prefer mass media as media advertisement, user’s testimonial for endorser’s
-75 -
recommendation and higher cosmetic price. Otherwise, for male and female in social
class B prefer celebrity as endorser’s recommendation and lower cosmetic price,
however male in social class B prefer mass media and female in social class B prefer
internet as media advertisement.
Specifically, the results show that for cosmetic’s ingredient, biotech ingredient is
the most preferred by male, whereas natural ingredient is the most preferred by female
in all age levels and different social class. This result has been supported by the result of
Laroche’s research. It has been observed in one of the research studies that females,
married, and with at least one child living at home are the consumers who are willing to
pay more for environmentally friendly products. They place a high importance on
security and warm relationships with others. They also often consider ecological issues
when making a purchase (Laroche, Kim, and Tomiuk, 2011).
In terms of Halal Certification, results show that male in all age levels prefer
both Halal Certification with TW Halal & MUI recognition words, and female in all age
levels prefer without Halal Certification. Consistent with the result of Religiosity which
shows there is difference between female and male towards religiosity. The result shows
female has negative mean while male has positive mean, which means male are more
religious than female. This has been emphasized with the result from Table 4.9 and
Table 4.10, which between male and female preferences about Halal Certification are
different. This is indicated that for Indonesian males are more religious than females.
Based on the Islamic religious rules, people are prohibited to use or consume any kinds
of foods or materials contain pork and alcohol. Therefore, there is a possibility, more
religious people become more aware about what kinds of products they are going to
choose. Because, Muslim consumer’s decision-making process showed that more
religiously comitted a Muslim consumer, the higher is his/her level of involvement at
the product and brand decision level (Razzaque and Sadia, 2013).
Regarding the advertisement, Television has becomes very powerful direct
marketing channel, because it exercises control over information resources on which
individuals and society in general depend to achieve their objectives and cover their
needs. Research has been conducted by Male and Blas (2008) about the impact of
television dependency on teleshopping adoption has been resulted that gender has no
significant influence on Television dependency but age has significant influence on
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Television dependency. Women tend to watch more Television than men. The top live
Television viewing groups are females, more than 50 years old and followed by 35-49
years old (Kobayashi, 2011). The previous research about Japanese women who are in
age range more than 35 years old and older tend to watch 10-15 more hours than
national average (Martin, 2012).
These previous researches has supported this research, due to the results show
that older male and female especially male in SEC B and female and SEC A prefer mass
media such Television, radio, and magazine in order to get the information of cosmetics
and cosmetic’s ads. Moreover, older consumers are more familiar with the Television
medium as they value its benefits more and often seek to use the medium as a substitute
for their social relationships. Furthermore, based on the result of Male and Blas (2008),
has been known that there is a significant and positive correlation between Television
dependency and purchase behavior, which means the greater Television dependency, the
greater future shopping intention.
In the other hand, the result shows that in store-lightbox has negative preference
on male and female in different level of age and social class, due to nowadays there are
a lot easier ways which consumers can choose in order to seek the information about the
cosmetics and also looking for cosmetic’s ads, rather than go directly to the shops to get
those information. Nowadays, many retailers are experiencing a decline in impulse
purchases at retail stores, due to there are many non-store retailing such as online
shopping gaining more market share and affecting their bottom line (Coley and Burgess,
2003).
Endorser becomes one of the most popular marketing practices for enterprises. A
successful endorser can increase the level of consumers’ recall toward product
information (Friedman and Friedman, 1979), strengthen consumers’ recognition to
endorsed brands, positively affect consumer’s attitude to low-involved products and
increase consumer purchase intention and preference toward brand (Goldsmith et al.,
2000). Therefore some previous researches such as Martin’s research (2012) has been
provide the finding that Japanese women’s buying behavior have been influenced by the
foreign female actors through most of advertising on internet. In that research has been
proved that in order to advertise products in Japan, foreign businesses need to be aware
of societal charges and the preferences of local population. That is an instance for how
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consumer will be influenced by endorser, which is celebrity.
Regarding the endorser’s recommendation attribute, it has been found that either
male and female in younger age and in social class B prefer celebrity’s endorsement as
endorser’s recommendation. Otherwise either male and female in older and social class
A prefer user’s testimonial as endorser’s recommendation. In some developing countries
such as China, “celebrity-chasing” phenomenon is emerging and more and more
popular for Chinese consumers (especially or young and middle class consumers). As
long as the person if famous and attractive, consumers will like him or her very much.
This might be the reason why consumers care more about “who they are” rather than
“what they do”. That means consumers empathize more with the characteristics of
endorsers than the relationship between endorsers and endorsed products (Lau et al.,
2006).
However, the other side, recent evidence suggests that consumer-created
information has become a rather important influence for consumer behavior such as
purchase decisions. Due to consumer review or user’s testimonial contain information
and recommendations of the products from the consumer’s perspective (Park et al.,
2007). This supports the result which show that male in different level of age and male
in social class A, as well as female in older age and female in social class A as well
prefer user’s testimonial as endorser’s recommendation. There is a possibility, due to
younger male use internet in order to get information about cosmetic and they will see
testimonial online, therefore they are attracted to purchase that cosmetics. This is
possible to be happened due to, information from high-credibility sources is likely to be
more easily accepted. Credibility includes trustworthiness which can influences
consumer attitude toward a brand, consumer intentions, and their purchase behaviors
(Petty and Wegener, 1998).
Cadogan and Foster (2000) suggest price is the most important consideration for
the average consumer when purchasing products. Price refers to what a consumer gives
up (measured in monetary terms) to obtain a desired good or service (Zeithaml, 1988).
As such higher prices are likely to negatively affect the probability of purchase. This has
been shown by the result of consumer’s preference of price. Both of female and male in
different level of age, especially younger and they are in social class B, prefer the
cheapest cosmetic’s price which is IDR 92.400. Due to, probably that price is the one
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they can afford or think is worthy enough compare with the value that they can get buy
consuming the cosmetics. Otherwise, both of older male and female in social class A
prefer the middle price which is IDR 108.000.
Regarding the importance of attribute, it has been seen that although for male
and female respondents in different level of age, they have similar preference about
which attribute become the most important (Halal certification) and which one become
less important (ingredient). However, based on the result, it also can be seen that in
terms of age, some attributes show the same preference for male in different level of age
except media advertisement. Male in younger age prefer internet instead of using mass
media. This is also the same result with female respondent. Bur for female respondent,
there is another different result for endorser’s recommendation attribute which for
younger female, they prefer celebrity recommendation instead of believe in user’s
testimonial.
4.3. Targeting on the Customer’s Preference
We have integrated the use of conjoint analysis result to target the preference of
all the 5 cosmetic attributes based on the importance score computed by conjoint
analysis. The writer decide to use β3- Taiwan Halal cert.with MUI words, and β8-User’s
Testimonial as the variables in order to determine the target market. Due to, based on
the result of utilities score and average importance score, has been resulred Halal
certification become principal consideration and could become unique selling point as
well in the same time. Besides that, user’s testimonial also turn into important
consideration, due to the result show male in different level of age and difrferent social
class prefer user’s testimonial as endorser’s recommendation and for female as well.
Based on Table 4.20, it can be seen that the proportion of male and femal is not so much
different. Therefore, the target market could be 50% of male and 50% of female.
Moreover, mostly their religion is Moslem, and in the range of age 30 -39 (younger
respondents), who are in the social class B, which has working status, and also income
approximately IDR3.000.001-IDR6.000.000, and especially who has the occupation as
staff or fixed employee.
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Table 4.20 The result of targeting analysis
Categories (β3- Taiwan Halal
cert.with MUI words) Amount
Categories (β8-User’s
Testimonial ) Amount
Gender
Male 43 Male 33
Female 37 Female 47
Religion
Moslem 74 Moslem 75
Non Moslem 6 Non Moslem 5
Age
30-34 25 30-34 31
35-39 19 35-39 20
40-44 18 40-44 14
45-49 18 45-49 15
Social Class
SEC A 23 SEC A 25
SEC B 57 SEC B 55
Working Status
Working 60 Working 55
Housewife 20 Housewife 25
Marriage Status
Married 75 Married 77
Single 5 Single 3
Monthly Income
IDR4.500.001-IDR6.000.000 27 IDR4.500.001-IDR6.000.000 33
IDR3.000.001-IDR4.500.000 24 IDR3.000.001-IDR4.500.000 27
IDR1.500.001-IDR3.000.000 10 IDR6.000.001-IDR7.500.000 5
Others 19 Others 5
Occupation
Staff/fixed employee 53 Staff/fixed employee 50
Housewife 20 Housewife 25
Service/Sales 7 Service/Sales 2
Others - Others 3
The unique selling point that Taiwanese companies can try to provide for
Indonesian company is the Halal certification which is from Taiwan with MUI
recognition words, due to most of cosmetics in Indonesia still have no any Halal logo
including two famous leading brands such as Ponds and Biore. Moreover, this is the
first time for Taiwanese companies want to expand their business in Indonesia, as entry
mode, using mass media become more risky than using internet such as: Facebook,
Twitter, Youtube and also website. First of all, they could be accessed by many people
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anytime and anywhere. Moreover, Indonesian people, especially younger consumer
with working status, they are used to with those social media, and using them almost
everyday. Furthermore, in the internet itself, marketer can put user’s testimonial in order
to attract and build consumer trust. It is possible to put many pictures and also use local
actor or actress as celebrity endorser to emphasize the uniqueness and also boost the
sales.
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CHAPTER FIVE
CONCLUSIONS AND SUGGESTIONS
This chapter contains three sections: the first section of this chapter is the
conclusions of this experimental study, and secondly, suggestions. The last section is
research limitations and future research directions.
5.1. Conclussions for Indonesian Market
The major objectives of this study are to examine the effect of Cosmetic’s
Attributes such as Halal certification, ingredient, media advertisement, endorser’s
recommendation, and price on Purchase Intention and to investigate the moderating
effect of gender, age, and social class on the relationship between Cosmetic’s Attributes
and Purchase Intention in Indonesian market. Based on the analyses discussed in the
previous chapters, the results of hypotheses testing are summarized I Table 5.1.
Table 5.1 Hypotheses and results of empirical Test
Hypotheses Results
H1 Different Halal certification has different significant impact on
purchase intention.
Supported
H2 Different ingredient has different significant impact on purchase
intention.
Supported
H3 Different media advertisement certification has different
significant impact on purchase intention.
Supported
H4 Different endorser’s recommendation has different significant
impact on purchase intention.
Supported
H5 Different price has different significant impact on purchase
intention.
Supported
H6 Gender, age, and social status have significant impact on
relationship between cosmetics attributes and purchase intention.
Partially
Supported
Based on the result shown in Table 4.9 until 4-12, the first conclusion is that
Indonesian respondent’s purchase intention is significantly affected by attributes that
have been used in this research (Halal certification, media advertisement, endorser’s
recommendation, ingredient, and price). Furthermore, the present research showed that
gender, age, and social class have partially influence on Purchase Intention. Especially
the result exactly reflects that Indonesian male respondents have extremely attention on
Halal certification, otherwise female respondents have less attention on Halal
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certification. This results also consistent with the result of male and female preferences
about religiousity, which male are found more religious than female. Moreover, it has
been found that cosmetic’s ingredients get less intention as considerations to choose
cosmetics. For the other attribute such as media advertisement, has been found that
internet is a better way to approach younger respondents either female and male and
mass media become proper way to approach older respondents either female and male.
Besides, for male and female in social class A will get more intention on user’s
testimonial, but for those in social class B will get more attention on celebrity,
especially younger female. This result also consistent with the preceding study of Mafe
and Blass (2008) that stated older consumers are more familiar with Television, and
there is a significant and positive correlation between Television dependency and
purchase behavior. Especially recent research conducted by Kamins and Marks (1991)
has been found that man in range of age 20-34 shop considerably more than older man
for beauty products by through online shopping. Even so, female consumers nowadays
are attracted by many female actors in many advertising such as Television ads and
internet ads (Martin, 2012). They will buy the products not only because of the
functions but also consider who become the endorser of the brand.
In terms of price, most of Indonesian people have price consciousness. Price
consciousness is defined as finding the best value, puting at sale prices or the lowest
price choice (Sproles and Kendall, 1986). Especially for female respondents in different
level of age and those who are in the social class B. It can be seen from the result that
for younger male and female respondents in social class B, both of them prefer cheapest
cosmetic price, and for older male and female respondents in social class A prefer
higher cosmetic price. This is probably related with the trust on the brand or the quality
of the cosmetics. Consumers feel more secure on cosmetic products which have worth
price compared with the cheapest one. This is supported by the research conducted by
Salim (2011), which said a customer will generally use a product’s price as a reference
point with which to judge the worth or quality of a good or service. In the other words,
consumers’ satisfaction can also be built by comparing price with perceived costs and
values. If the perceived values of the product are greater than cost, consumers will
purchase that product (Yoon and Kim, 2000).
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However, an interesting point is that the effect of Halal certification on Purchase
Intention. So, Indonesian tends to evaluate the cosmetics base on which Halal
certification that the cosmetics have, different Halal certification has different point of
view. Different gender also has different preference in terms of Halal certification.
Basically, cosmetics which at first has been produced for fulfill female needs, nowadays
has been shifted turn into male needs as well. Moreover, male become more aware on
this certification, otherwise female are less conscious about this term.
5.2. Suggestions
Firstly, marketers should determine using Halal certification variable in their
cosmetic products by identifying in their target market. Due to, this research has been
conducted in order to be granted for Taiwanese companies who wants to expand their
business to Indonesia, the writer suggest that the companies should put the Taiwan
Halal certification with recognition from MUI, in order to attract both female and
male consumers. Due to, even female respondents show their preference actually quite
low for this certification, but by putting the certification on cosmetic products can
attract male respondents who really care about this issue, and for female respondents
probably just ignore the certification and still want to buy instead.
Secondly, in present study it was shown that the effect of internet as media
advertisement is positive for both female and male in younger age, especially male in
social class A and female in social class B. The writer suggests the companies who want
to expand their business, to target them as target markets. Due to, Indonesia is a huge
country, and has been dominated by female which are in the middle economic class.
This is probably will be the best choice, due to internet advertisement will goes through
to younger male and female who are attracted more and care more about their own
appearance. The second thing is internet ads easy to be seen by anyone, and is not as
much as expensive than Television ads, magazine ads, and radio ads. Moreover, as the
first entry mode, using internet is not as much risky as using mass media.
Thirdly, regarding the endorser, the writer suggest the companies use celebrity and
also put information about user’s testimonial on the ads. Due to, for male respondents in
different level of age, they prefer user’s testimonial rather than the ther endorser, and for
female respondents, they prefer celebrity. Adopted from Biore and Ponds which already
become famous and number one cosmetic brand in Indonesia, the writer suggests the
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companies will use local celebrity in order to attract the consumers. Most of all, the
companies should also put the information on advertising about user’s testimonial in the
internet or brochures, due to this is so important for most of male respondents in
different level of age and different social class. User’s testimonial can build a trust of
consumer, due to the information based on the previous experience that the other source
ever tried before. That sources usually are customers who ever used the cosmetic
products before.
Fourth, based on the result, female’s skin problem is dull skin and for male is oily
skin. Besides emphasize on the function of the cosmetic product, marketers also should
set the worth price based on the characteristic of target markets. Due to the target
market are either male and female in social class B, the price could be set as
approximately IDR 90.000 – IDR 100.000.
Last suggestion is the companies can move the manufacturing to Indonesia, in
order to reduce the production cost.
5.3. Limitations and Future Research Directions
This study has several limitations; therefore future research can consult these
drawbacks for improvement.
Fistly, the terms of cosmetic which has been used in this research onlyfocus on
one product – face cream, while there are a lot of kinds of cosmetics related. Thus, the
future studies should investigate a various kinds of cosmetic products.
Secondly, this study only use some of attributes such as Halal certification,
ingredient, media advertisement, endorser’s recommendation, and price. There are a lot
of another attributes are also become so important as considerations to choose cosmetic
products such as brand, design, size, and service quality (Salim, 2011; Lau et al., 2006).
Thirdly, our finding made it possible to analyze on Indonesia only. However,
future research might consider examining responses from other nations or regions to see
whether there are differences in buying cosmetic process consideration between various
races of people. This is due to fast-growing of demand of this cosmetic segment around
the world.
Fourthly, in order to test the model presented, as well as given the limited time
and resource available, the amount of complexity of the attributes are simplified.
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Orthogonal main effect design has been used in this study to reduce 216 conjoint cards
to 20 conjoint cards; therefore it did not present the full profile for respondents to
evaluate.
Last but not least, as the initial objectives, the present study measures only three
moderating variables as: gender, age, and social class. However, future study might
develop more by adding more control variables (income, occupation, lifestyle).
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APPENDICES
QUESTIONNAIRE
Questionnaire
Dear Respondents,
My name is Velly Anatasia. Currently, I am a MBA student at College of
Business, Chinese Culture University, Taiwan. I am conducting a survey for my
graduated thesis with topic: “The influence of Halal Certification in Indonesian
Consumers Purchase Intention: An Application of Conjoint Analysis”.
The objective of my research is to investigate many cosmetic’s attributes such as
Halal certification, ingredient, advertisement, endorser’s recommendation, and price,
how effect on consumer purchase intention and to understand the moderating effect of
consumer demographic to relationship between those cosmetic’s attributes and
consumer purchase intention about cosmetic products in Indonesia.
I would really appreciate and be grateful if you are willing to spend 10 minutes
to fill in the questionnaire. Your participation is sure to be strictly kept anonymous. The
data you provide will be confidential to the researcher and will not be disclosed to third
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parties without your consent. Your participation represents a valuable contribution to
this study. I would like to give many thanks to you for your cooperation.
If you have any questions or concerns about the questionnaire or participation in
this study, please do not hesitate to contact me at email: [email protected]. If
you have any questions about your rights as research subject, you may contact the
Chinese Culture University Institutional Review Board (IRB) by mailing at 55
Hwa-Kang Road, Yang Ming Shan, Taipei, Taiwan 1114 R.O.C or by phoning at (011
886 02) 2861-0511 or by email at [email protected].
Thank you.
Sincerely,
Prof. Li-Chung Jen, PhD Velly Anatasia
Professor Researcher
IMBA Program IMBA Program
Chinese Culture University Chinese Culture University
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PART 1: YOUR COSMETIC’S INFORMATION
SCREENING
BEAUTY PART
Please give √ into the blank space or give a circle into the number which describe your answer.
You can only choose ONE answer for each question as the most describe compared with the other
options.
1.1. Do you consume/Use imported treatment skin (Skin care) products?
Yes, both of them 1
Only imported health food/beverage product 2
Only imported skin care product 3
Not both 4
1.2 Please tell us how often you use skin care products!
More than twice a day 1 once a week 6
Twice a day or more 2 Once every 2 weeks 7
Once a day 3 Once a month 8
4 – 6 times a week 4 Once every 2 months 9
2 – 3 times a week 5
1.3 State Your Skin Problem Experience by giving √ on the blank space!
My Skin Problem Experience Answer
Easy to get allergy
Dark circles
Skin too slack
Skin too dry
Skin too rough
Wrinkles/Lines
Easy to become darker
Inconsistent Skin color
Skin too oily
Spots
Large pores
Blackheads
Dark Skin
Pimples
Dull skin
City of Survey Residence Categories of Respondents
Jakarta 1 City 1 Suburb Cities 2
Surabaya 2 City 1 Suburb Cities 2
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1.4 State Your currently cosmetic brand by giving √ on the blank space!
My Currently cosmetic brand Answer
Oriflame
Amway Artistry
Nu Skin
Avene
RoC
Dermae
Activa
Sebamed
Clinique
The Body Shop
L'occitane
The Face Shop
Skin Food
Etude
Ponds
Olay
Loreal
Garnier
Biore
1.5 State Your cosmetic function by giving √ on the blank space!
My cosmetic function Answer
Improve dark circles or puffy eyes
Soothing allergy
Improve lines around eyes and mouth
Consistent skin color
Black heads and white heads removal
Oil control
After sun soothing care
Sunscreen
Slack improvement
Anti-spots
Pore tightening
Anti-wrinkles/anti-aging
Exfoliation
Skin hydration
Skin tenderness
Anti-acne
Skin fairness
Improve dull skin and make skin glow
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1.6 State Your cosmetic price by giving √ on the blank space!
My cosmetic price Answer
"<IDR 100.000"
"IDR 100.000 - 200.000"
"IDR 200.001 - 300.000"
"IDR 300.001 - 400.000"
"IDR 400.001 - 500.000"
"IDR 500.001 - 600.000"
"IDR 600.001 - 700.000"
"IDR 700.001 - 800.000"
"IDR 800.001 - 900.000"
"IDR 900.001 - 1.000.000"
"> IDR 1.000.000"
1.7 State place when you buy your cosmetics by giving √ on the blank space!
Place when I buy cosmetics Answer
Department store/Shopping mall, e.g. SOGO, Debenhams, METRO, SEIBU, Matahari
Hyper market/Super market, e.g. Carrefour, Hypermart, Hero, Giant
Cosmeceuticals store/Pharmacy, e.g. Guardian, Century, Boston Health & Beauty, Watson's
Convenience store, e.g. Alfamart, Indomaret, Circle K
Grocery store
Traditional market/Night market
Direct sales/Telephone marketing, e.g. Oriflame, Amway
Exclusive shop/Special store, e.g. The Body Shop, L'occitane, The Faceshop, Skin Food
Internet, please specify the website________________
TV shopping, please specify the channel_______________
Clinic / Salon, please specify the name________________
1.8 State how do you know any information about your cosmetics by giving √ on the blank space!
Source of information about cosmetic I used Answer
Newspapers & their ads
Magazines & their ads
TV ads
TV programs or TV shopping channels, the program or channel is________________
Online forum or shopping website, the website is______________________
Radio & its ads, the Radio channel is __________________
Friends or relatives' advise
Doctors or pharmacists, the clinic is___________________
Sales promotion girls
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PART 2: COSMETIC’S ATTRIBUTES ON CONSUMER PURCHASE
INTENTION IN COSMETIC
CONJOINT
READ it: Here we will show you some variants of Skin Care product where each variant is a
Combination of several attributes such as ingredients material, price, with halal labels
or not, and others. We ask you to choose one option as best answer that you like for
each of the attributes in the following questions:
Question from Skin Care Product:
We provide 20 pieces of Skin Care product Varian cards. From all of the cards, please listed from 1 to 20
beginning from product variant that you like the most until most dislike!
Ranking 1 2 3 4 5 6 7 8 9
No.Varian
Product
Ranking 10 11 12 13 14 15 16 17 18
No.Varian
Product
Ranking 19 20
No.Varian
Product
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PART 3: PERSONAL INFORMATION
DEMOGRAFI
Please give the circle into the number that describe your answer. Thank you.
D1. What is your gender?
Male 1 Female 2
D2. What is your religion?
Muslim 1 Hindu 4
Christian 2 Buddha 5
Catholic 3 Others, specify: 6
D3. Please tell me your marital and family status?
Single 1
Cohabitation 2
Married 3
Divorced/Widowed/Separated 4
D4. How old are you?
Less than 30 years old 1
30 – 34 years old 2
35 – 39 years old 3
40 – 44 years old 4
45 – 49 years old 5
More than 50 years old 6
D5. Please tell us your monthly disposable income?
Less than IDR 1.500.000 1
IDR 1.500.001 – IDR 3.000.000 2
IDR 3.000.001 – IDR 4.500.000 3
IDR 4.500.001 – IDR 6.00.000 4
IDR 6.000.001 – IDR 7.500.000 5
IDR 7.500.001 – IDR 9.000.000 6
IDR 9.000.001 – IDR 10.500.000 7
IDR 10.500.001 – IDR 12.000.000 8
IDR 12.000.001 – IDR 13.500.000 9
IDR 13.500.001 – IDR 15.000.000 10
IDR 15.000.001 - IDR 16.500.000 11
IDR 16.500.001 – IDR 18.000.000 12
IDR 18.000.001 - IDR 19.500.000 13
IDR 19.500.001 - IDR 21.000.000 14
More than IDR 21.000.000 15
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D6. How much the average household expenditure in each month for your daily needs such as eating,
drinking, pulses, school fees, electricity, water, telephone accounts, maid salary, etc., But does not
include expenditures for installment purchase large and expensive items such as car, home, etc.?
More than IDR 40.000.000 _____ 1 A1
IDR 25.000.001 – IDR 40.000.000 _____ 2 A1
IDR 10.000.001 – IDR 25.000.000 _____ 3 A1
IDR 5.000.001 – IDR 10.000.000 _____ 4 A1
IDR 3.000.001 – IDR 5.000.000 _____ 5 A2
IDR 2.000.001 – IDR 3.000.000 _____ 6 B
IDR 1.500.001 – IDR 2.000.000 _____ 7 C1
IDR 1.000.001 – IDR 1.500.000 _____ 8 C2
IDR 700.00 – IDR 1.000.000 _____ 9 D
Less than IDR 700.000 _____ 10 E
D7. What is your MAIN Job?
Working………………………………………………………………….1
Housewife………………………………………………………………..2
Retired…………………………………………………………………...3
Not working/Unemployed………………………………………………4
D8. Please tell me your current occupation by giving the √ on the blank space?
My current occupation Answer
Middle management (Manager, GM)
Professional (lawyer, doctor, etc.)
Technicians & assistant professionals
Fixed employee/ staff/ outsource
Service or sales
Agriculture, forestry, fishery, animal husbandry
Crafts related worker
Machinery worker
Labor
Military personnel
Housewife.
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PART 4: THE ROLE OF RELIGIOSITY
(ASK ONLY IF RESPONDENT IS MUSLIM)
I want to know more about how you enliven your religious life. I will read aloud some statements that
you may feel agree or disagree to. Please remember that there is no right or wrong answers. We just want
to know you better. Please tell me how much do you agree or disagree to the statement:
1 = Strongly disagree 3 = Quite disagree 4 = Agree
2 = Disagree 4 = Quite disagree 6 = Strongly Agree
READ THIS STATEMENTS ONE BY ONE!
You will be delighted if you are able to make the Hajj 1 2 3 4 5 6
You pray 5 times a day 1 2 3 4 5 6
You will feel anxious if you ever neglected a prayer 1 2 3 4 5 6
You often feel uncomfortable if you do not say basmallah prior to doing any activities
1 2 3 4 5 6
You feel anxious if you do not do prayer immediately after Adhan 1 2 3 4 5 6
You pray before doing any activity of that day 1 2 3 4 5 6
You check on the label of halal-certified whenever you eat or drink 1 2 3 4 5 6
You try my best to cover my body parts as regulated in Islamic Law 1 2 3 4 5 6
You like to listen to the chants of Al-Quran verses 1 2 3 4 5 6
You pay attention to how permissible my food is according to Islamic Law 1 2 3 4 5 6
You feel all right if you do not cover my body parts as regulated in Islamic Law 1 2 3 4 5 6
You feel all right if you do not obey the rules of Islam 1 2 3 4 5 6
You do not mind with the existence of mix-religion marriages 1 2 3 4 5 6
You do not mind with the existence of homosexual marriages 1 2 3 4 5 6
You feel all right if you have to make eye contact with men who are not my
muhrim 1 2 3 4 5 6