Understanding the Influence of Product Recommendation and User Generated Content on Customer Loyalty of Beauty-Techs in Indonesia

Ika Nurkasanah (), Nita Ambarwati, Mudjahidin, Yosua Gibeon Leonardo and Yehezkiel Novianto Aryasena
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Ika Nurkasanah: Institut Teknologi Sepuluh Nopember
Nita Ambarwati: Institut Teknologi Sepuluh Nopember
Mudjahidin: Institut Teknologi Sepuluh Nopember
Yosua Gibeon Leonardo: Institut Teknologi Sepuluh Nopember
Yehezkiel Novianto Aryasena: Institut Teknologi Sepuluh Nopember

A chapter in Proceedings of the 3rd International Conference on Business and Engineering Management (IConBEM 2022), 2023, pp 3-26 from Springer

Abstract: Abstract Social Shopping Community (SSC) is an online shopping platform to search, share, recommend, rate, and buy products, including Beauty-Tech's products. SSC increases customer loyalty through the profound factors: Online Product Recommendation (OPR), Online Product Brokering (OPB), and User Generated Content (UGC). Unfortunately, previous research was limited to observing one company's SSC platform only, so it is unclear whether the factors that can increase customer loyalty through the SSC platform apply to other beauty-tech companies. Therefore, this study uses SEM-PLS to examine how OPR affects OPB and customer loyalty through UGC. The findings reveal that a high level of user-generated content (UGC) moderates the relationship between customer loyalty and decision-making quality significantly. The OPR's enabler factor that substantially influences OPB is self-reference; meanwhile, information overload is the inhibitor factor that has a more decisive influence. The research results above apply to various SSC platforms in Indonesia because there are no significant statistical differences between Indonesia's top four beauty tech startup companies.

Keywords: Social Shopping Community; Beauty-Tech; Customer Loyalty; Online Product Recommendation (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-216-3_2

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DOI: 10.2991/978-94-6463-216-3_2

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