In March 2023, 42% of 1,050 respondents in Indonesia selected cosmetic and body care products as their most sought-after category, making it the third most popular category for online purchases in the country. This statistic underscores the increasing discernment of Indonesian consumers in choosing cosmetic brands that align with their preferences, including considerations for Halal Brand Image. This study focuses on Make Over, a reputable halal makeup brand in Indonesia, to examine the impact of Halal Product Image on purchase decisions, considering the unique characteristics of the target consumer base.
The research aims to enhance the theoretical framework by investigating the effects of gender and income on the proposed variables, recognizing differences in how individuals of various income levels interact with e-WOM, brand image, and information adoption processes. To achieve this, the study utilizes a survey methodology, employing a questionnaire to collect data from 300 respondents through Google Forms.
The research is correlational in nature, seeking to identify and measure the associations between electronic word of mouth (e-WOM), brand image, and purchase decisions within the halal product market. The chosen statistical tools for analysis are Partial Least Squares Structural Equation Modeling (PLS-SEM) and Multigroup Analysis (MGA), which are suitable for analyzing causal relationships. A purposive sampling method, which is non-probability based, was used to select participants, allowing for targeted insights from individuals likely to have relevant experiences and opinions.
Results indicate that e-WOM (Information Quality, Information Quantity, Information Credibility) and Brand Image significantly influence Purchase Decisions through Halal Product Image and Purchase Intention, with Information Quantity having the highest influence (value of 0.141). Moreover, Gender and Income significantly moderate the effects of Halal Product Image and Purchase Intention on Purchase Decisions. However, Gender does not significantly moderate the effect of e-WOM and Brand Image on Purchase Decisions.
Suggestions for future research include expanding the dataset to encompass a larger and more diverse sample to provide a more comprehensive analysis and validation of the findings. Additionally, further investigation into the moderating effects of gender and income on the relationships between these variables is recommended.