Factors Influencing Consumer's Purchase Intention on Beauty Products in Youtube

Abstract

Purpose: This research aims to explain the influence of social media influencer (SMI), electronic word of mouth (EWOM), and perceived quality (PQ) on purchase intention (PI) of beauty products on YouTube. Youtube as the number 1 social media in Indonesia, has an important role as a promotional strategy media for beauty products. Research design, data and methodology: This study used the online survey to 210 female respondents aged 17-30 years who became a subscriber of an Indonesian beauty influencer. Simple regression and multiple regressions were performed to analyze the independent variables towards the dependent variable. Results: The results show that social media influencer, electronic word of mouth, and perceived quality simultaneously have a significant influence on purchase intention. Nevertheless, only two variables individually have a significant influence on purchase intention, which is social media influencer and perceived quality. Conclusions: Perceived quality and social media influencer could be the best strategies to increase consumers when promoting through the influencer's Youtube channel by utilizing a subscriber. While e-WOM can be influential on other social media platforms rather than on the Youtube platform. Therefore, suggested that digital marketer must use multiple social media platforms to increase consumers' purchase intention.

1. Introduction

Social media is considered one of the best promotional strategy media in this new media era. This is a great opportunity for cosmetics businesses to place their products without having to pay a large fee to do advertising. One of the social media that is currently popular is YouTube. Youtube is the most popular video-sharing platform since 2005. A year later in 2006, Youtube first opened up opportunities for companies to utilize the platform as an effective marketing strategy with several advertising concepts (Schwemmer & Ziewiecki, 2018). The results of WeAreSocial and Hootsuite research in January 2019, Youtube is the number one social media in Indonesia with a percentage of 88% of 150 million social media users in Indonesia (Riyanto, 2019).

Youtube can collect information and data through search engine features. When we look for video content on beauty products on Youtube, there will be many reviews of beauty products from various beauty Influencers. Influencers can be used as valuable partners for companies to promote their products. Influencers are considered valuable because with the status of YouTubers who started his career from an amateur to professional, they will influence other social media users for commercial purposes (Schwemmer & Ziewiecki, 2018).

Moreover, product recommendations from social media influencer received a higher trust rate compared to products recommended by families or friends, resulting in 40% of consumers purchased the products used by social media influencer (Sekhon & Cartwright, 2016). Consumers also often received more messages about the product from social media influencer than from companies (De Veirman, 2017).

Consumers could willingly exchange ideas about the product being discussed through the beauty influencer's YouTube channel comments section. This process can be referred to as word of mouth (WOM), but it is called an electronic word of mouth (e-WOM) when the process through the internet. Word of Mouth (WOM) is an idea that defines the sharing of information between consumers about products and services (Durmaz & Yüksel, 2017). E-WOM is considered effective because the origin of trust comes from people who do not get their approval. If influencers are trusted through their credibility, e-WOM is more trustworthy because the information is voluntarily given by others and is not based on any brand. Therefore, companies need to understand the factors that can affect electronic word of mouth on purchase intention in beauty products on Youtube.

Despite getting product information online, consumers also consider the quality of the product being promoted, which will later lead to perceived quality. Perceived quality is an overall assessment of the advantages of a product or service based on the user of the product or service (Cheng, 2017). Perceived quality is needed because by searching for information online, consumers certainly have a perception of the value and benefits of beauty products. Perceived quality is very influential in determining consumer‘s purchase intention. When the perceived quality possessed by consumers is good, then there will be an opportunity to generate purchase interest, and vice versa. Thus, perceived quality play an important role in the creating purchase intention.

For the beauty industry which overgrew in Indonesia. The role of social media (Youtube) is unavoidable and important. Therefore, influencer, e-WOM, and perceived quality help in promoting the beauty product of a brand in order to create a purchase intention and increase sales. Based on Dailymail.co.uk, Pixability, states that 61 percent of women will see a beauty guide video uploaded by vloggers on YouTube, and 38 percent of women say they will buy the product featured in the video they see (Beauty Vlogger Semakin Populer, 2016). This shows that the cosmetics industry has not only good prospects but also has intense competition due to increase the type of cosmetics. Cosmetics companies are demanded to be able to develop and create innovations in order to maintain their existing market and win the competition.

Seeing that the market is increasing quite large each year and purchase intention from consumers is increasing, several online shopping platforms are also rife in selling beauty products. Plus, this very fast and aggressive digital world has made producers have to be able to maintain their business performance. At the same time, there is still very little research, especially in Indonesia, which specifically studies social media influencer, e-WOM, and perceived quality in the beauty industry. Therefore, the objective of this study is to examine the influence of social media influencer, e-WOM, and perceived quality for promoting beauty products on Youtube.

2. Literature Review

2.1. Social Media Influencer on Purchase Intention

The term influencer arises from the realm of marketing when a brand engages a specific figure to be able to touch the target consumer, convey the message and the purpose of the brand. Influencers are individuals who have the power to influence the decisions of others because of their authority, knowledge, position, or relationship (real or perceived) (Sigala & Gretzel, 2018). Social media influencer work "to generate" celebrity capital "by growing as much attention as possible and creating authentic" private brands "through social networks, which can then be used by companies and advertisers to reach consumers. (Sigala & Gretzel, 2018). It can be concluded that an influencer is someone who has an influence on terminating the purchase of others. In general, influencers use social media and have a significant number of subsriber.

Regarding the previous study showed that Irish millennial generation males in Ireland are not accustomed to traditional advertising because they live in an age where the internet and social media are very influential in daily activities. Consumers in the millennial generation differ in their opinions, ideas, and interests in engaging with social media influencer. Through this involvement, it will imply a deeper relationship between the millennia that are deeply connected by social media influencer (Kalu, 2019).

Tabel 1: Elaboration of the Dimensions of Social media

Source: Data Processing Results, 2020

Based on the results of the elaboration, the dimensions used in this study are as follows:

1. Source Credibility

2. Product Match-Up

3. Meaning Transfer

Heriyati and Siek (2011) study shows that the role of credibility in informational influence has been found to most significantly adjust a recipients‘ opinion in the bearing pushed by the communicator when the material was attributed to high-credibility source than when it was attributed to a low-credibility source. Then, the match-up hypothesis explores the fit between an endorser and the brand (Kamins, 1990). Shimp (2008) stressed that a match-up between an endorser and the brand is the most fundamental goal in achieving consumers' purchase intention. Thus, a perfect match between social media influencer and the product will significantly strengthen the advertising results.

McCracken recommended that an endorsement effect is driven through meaning transfer process, whereby an endorser's effectiveness often relies on his abilities to convey product meanings alongside the endorsement process (McCracken, 1989). This construct frames endorsement as a movement of meaning, which is transferred from the endorser's personal and professional world to a particular product and is consequently influential in building consumers' self-image through consumption (McCracken, 1989). Empirical study has validated that meaning transfer exhibits a correlation on consumer attitude and also influences purchase intentions (Peetz, Parks, & Spencer, 2004).

2.2. Electronic Word of Mouth on Purchase Intention

Electronic Word of Mouth (WOM) is a message about an organization's product or service or about the organization itself via the internet. Comments about the product, service quality, trust, and modus operandi, taken from one person to another involved in WOM. 'Sender' who has personal experience with products or services from a particular organization is considered a source of information that is entirely objective by the 'recipient.' The information delivered by delivery can be positive, negative, or complete (Alfred, 2016). The most significant factors in encouraging electronic word-of-mouth approval are ownership, winning, and willingness to help (Cheung & Lee, 2012). It can be concluded that e-WOM is a form of marketing communication that contains positive and negative statements made by potential consumers through internet media.

Cheung and Lee (2012) argue that there are several advantages of electronic word of mouth that have a greater influence than traditional word of mouth, namely:

1. Electronic word of mouth is more modern, namely the use of technology in disseminating information

2. Electronic word of mouth is more accessible than traditional WOM.

3. The attitude of the electronic word of mouth which can not do credibility assessment of the sender and message.

In measuring the effect of electronic word of mouth, Goyette, Ricard, Bergeron, and Marticotter (2010) argues that there are three dimensions that can be used, namely as follows (Goyette et al., 2010):

1. Intensity

2. The Valence Of Opinion

3. Content.

Previous studies showed that the main factors that could influence e-WOM were trustworthiness; expertness; informational influence, and high fashion involvement. The results of this study can help companies that use Facebook's social media to promote their products by targeting factors that have a significant influence on purchase intention (Anum, Saleem, & Ellahi, 2017). The other study from Erkan and Evans shows that quality, credibility, usability, information adoption, information needs, and attitudes towards information are the main factors of electronic word of mouth on social media that can influence consumer purchase intention (Erkan & Evans, 2016). According to Cheung, Luo, Sia, and Chen (2009), the degree to which one perceives a recommendation or review as genuine, true, believable, or factual is defined as the consumer-perceived credibility of eWOM. Proposed that perceived credibility is a prime determinant in a consumer‘s decision-making process, and reduces uncertainty in both social and business interactions (Awad & Ragowsky, 2008). Thus, the more comprehensive and belief on the products or services‘ eWOM credibility will be, the higher the purchase intention the consumers will have.

2.3. Perceived Quality on Purchase Intention

Product quality is the ability of a product to perform its functions properly, which includes the reliability and accuracy of the product (Philip & Gary, 2012). Meanwhile, perception is a process carried out by individuals to choose, organize, and interpret stimuli into meaningful and reasonable images of the world (Schiffman & Kanuk, 2008). Based on the above understanding, it can be concluded that perceived quality is a process carried out by an individual to create a picture of the ability of a product.

There are eight dimensions of quality perception, namely (Hoe & Mansori, 2018):

1. Performance

2. Features

3. Reliability

4. Conformity

5. Durability

6. Service or Repair Capability

7. Aesthetics

8. Perceived Quality

According to previous research, it revealed a significant moderate relationship between perceived quality and emotional value to purchase intention (Asshidin, Abidin, & Borhan, 2016). Another research showed a significant effect between perceived quality on profitability. Then, the results further showed the significant influence of brand awareness, perceived quality, and loyalty to purchase intention. The Sobel test conducted in this study also shows that purchase intention only mediates the relationship between perceived quality and profitability (Yaseen & Tahira, 2011). Perceived quality directly influences to purchase intention. Customers have some perceptions about the product quality, price and styles before going to purchasing the product. After seeing the product information, purchase intention increases as well as decreases, because it has direct relations which affect each other‘s. If the quality is high, purchase intention of customer is also high (Saleem, Ghafar, Ibrahim, Yousuf, & Ahmed, 2015).

2.4. Theoretical Framework

This research uses associative hypothesis, which is a temporary answer to the formulation of associative problems that asks the relationship between two or more variables (Sugiyono, 2016). The hypothesis is as follows:

H1 : Social media influencer has a significant influence on purchase intention.

H2 : Electronic word of mouth has a significant influence on purchase intention.

H3 : Perceived quality has a significant influence on purchase intention.

H4 : Social media influencer, electronic word of mouth, and perceived quality simultaneously have a significant influence on purchase intention.

3. Research Methods and Materials

This study uses a quantitative method with an explanatory survey and using non-probability sampling with a sampling technique that is purposive sampling. The population in this study are female who subscribed beauty influencers on Youtube, with ages ranging from 17 years to 30 years. The data testing technique uses simple and multiple regression, which aims to determine the direct effect of independent variables on the dependent variable and processed using SPSS 22 software.

Table 2: Variables and Dimensions

The data collection technique used a questionnaire that measured using a Likert scale type. The questionnaire consisted of 35 items. The items stated in the statement were measured using 5-point Likert scale (1 = strongly disagree, 2 = disagree, 3 = neutral, 4 = agree, 5 = strongly agree). Observations were also made through social media Youtube. Of the 250 questionnaires distributed, 239 questionnaires received responses from respondents. Of the 239 questionnaires, 29 of them could not be processed because they did not meet the requirements of the population. A total of 210 questionnaires will be processed for this study.

4. Results

4.1. Validity Test

The total sample (n) in this study is 210 respondents. By using the formula df = n - 2, then the result of df is 210 - 2 = 208. In the calculations performed using SPSS, it can be seen in the Corrected item-Total Correlation column, with the formula t/sqrt (df + t**2) obtained r table = 0.11.

Based on the results of the validity test data processing shows that all items in the statement of influencer social media variables (x₁); electronic word of mouth (x₂); perceived quality (x₃); and purchase intention (y) contained in the questionnaire declared valid because it has a value of Corrected item-Total Correlation ≥ 0.11

4.2. Reliability Test

The reliability test in this study was conducted by looking at the Cronbach's Alpha values obtained from calculations through SPSS. If Cronbach's Alpha ≥ 0.6, then the statement item is declared reliable, and if Cronbach's Alpha <0.6, then the statement item is declared unreliable (Priyatno, 2014).

Table 3 shows that the scale of social media influencer has reliability Cronbach's alpha at 0.602; an electronic word of mouth has reliability Cronbach's alpha at 0.694; perceived quality has reliability Cronbach's alpha at 0.670; purchase intention has reliability Cronbach's alpha at 0.626. Then, it can be concluded that all variables are reliable, so all measured variables are considered reliable in this study.

Table 3: Reliability Test Results

4.3. Correlation Analysis

According to Sugiyono (2016), guidelines for interpreting the results of the correlation coefficient include the following (Sugiyono, 2016):  

Table 4 shows that social media influencer has a Pear son Correlation at 0.384 on purchase intention, and electronic word of mouth has a Pearson Correlation at 0.334 o n purchase intention. This means that there is a low direct relationship between social media influencer with purchase intentions, and so does the electronic word of mouth with purchase intentions. However, different from perceived quality that has a Pearson Correlation at 0.458 on purchase intention, that means perceived quality and purchase intention have an moderate direct relationship. Then, the results show that the relationship of all variables is significant, as seen from Sig. 000 < 0.05.

Table 4: Correlation Index

Source: Sugiyono (2016)

Table 5: Correlation Analysis Results

4.4. Regression Analysis

The multiple-regression analysis was used with the three factors as independent variables to test the model for purchase intention. In this study, the regression equation used in conducting regression analysis is as follows (Priyatno, 2014):

Y = a + b₁X₁+ b₂X₂+ b₃X₃

4.4.1. Coefficient of Determination

Results of linear regression analysis indicate that the contribution of social media influencers variables to the purchase intention variable can be seen in table 6 with an R² value of 0.148 = 14.8%, which means contributing 14.8% to the purchase intention. Then, it appears that the e-WOM variable has a contribution that is R² of 0.112 = 11.2%, which means it contributes 11.2% to the purchase intention. In the perceived quality variable, R² value of 0.210 = 21%, which means it contributes 21% to the purchase intention.

Table 6: Coefficient Of Determination (R²) Result

Finally, social media influencers, e-WOM, and perceived quality have a value of R² = 0.249, and adjusted R² = 0.238. This result represents the relevance of the model is 0.238, meaning that three independent variables (social media influencer, electronic word of mouth, and perceived quality) explain 23,8% of the variance in purchase intention. And the rest of (100% - 23,8% = 76,2%) is influenced by other factors not explained in this study.

4.4.2. ANOVA (F Test)

Table 7 shows that F calculation = 22.791. Df1 (number of data groups - 1) = 3 – 1 = 2, df 2 = (210 - 4) = 206. The results obtained for the F table is 3.04. Value of F calculation > F table (22.791 > 3,04) it means Ho has rejected, and Ha has received. Probability value (significant) is 0.000 < 0.05, so there is a significant effect. It can be concluded that social media influencer, electronic word of mouth, and perceived quality simultaneously influence purchase intention.

Table 7: ANOVA (F Test) Result

4.4.3. Partial Significance Test (T-Test)

Table 8 shows that social media influencer has a value of 0.011 < 0.05, which means that social media influencer have a significant effect on purchase intention. The electronic word of mouth has a value of 0.151 > 0.05, which means that electronic word of mouth has an insignificant effect on purchase intention. Then, perceived quality has a value of 0.000 < 0.05, which means perceived quality has a significant effect on purchase intention. Thus, the coefficient table above illustrates the regression equation as follows:

Y = a + b1 X₁ + b2 X₂ + b3 X₃

Y= 0.236 + 0.259 X₁ + 0.106 X₂ + 0.549 X₃

Table 8: T-Test Result

The regression equation above has the following meaning:

1. The constant value (a) is 0.236, which can be interpreted as influencer social media, electronic word of mouth, and perceived quality value is 0, then the performance value is 0.

2. The multiple regression coefficients value of social media influencer (b1) is positive, that is 0.259, it means that each social media influencer increases by 1 unit, it will increase purchase intention by 0.259 units, assuming the other independent variables remain constant.

3. The multiple regression coefficient values of electronic word of mouth (b2) are positive, which is 0.106. It means that each increase in electronic word of mouth by 1 unit will increase purchase intention by 0.106 units, assuming the other independent variables remain constant.

4. The multiple regression coefficient values of perceived quality (b3) is positive, which is 0.549. It means that each increase in perceived quality by 1 unit will increase purchase intention by 0.549 units, assuming the other independent variables remain constant.

5. Discussion

5.1. Results of reasearh hypothesis

This study revealed that social media influencer, electronic word of mouth, and perceived quality simultaneously has a significant influence on purchase intention of 23.8% (Sig. = 0.000 < 0.05). Firstly, social media influencer individually have a significant influence on purchase intention, seen in table 9 which shows that t-value 2.561 and Sig. 0.011 <0.05 (H1 was accepted). Then, table 9 shows that social media influencers have a value of R² = 0.148 to purchase intention, which means that it contributes to influence purchase intention by 14.8%. This result supports Nam and Dan (2018) study where consumers tend to trust influencers who can direct consumers to their purchase intention and the influencers‘ trust is a critical component of digital marketing strategy. Therefore, creating good content and selecting appropriate influencer to product has a positive influence on influencer marketing Nam and Dan (2018). This can also be supported by studies from Jamil (2014), that the social media influencer can influence the purchase intention indirectly through the brand image. Their suggested that influencers could not attract consumers directly to commerce purchases, but after watching good reviews from influencers, consumers would relate their perceptions with their own on the brand image, encouraging consumers to purchase the products.

Table 9: Hypothesis Result

*p<0.05; **p<0.01

Social media influencer in this study uses the dimensions of source credibility, product match-up, and meaning transfer, where there is still very little research on influencers using these dimensions to be processed. Aligned with Makgosa's assertion in Lim, Radzol, Cheah, and Wong, social learning theory is proposed as a contextual foundation in understanding social media influencer (Lim et al., 2017). This is because influencers represent independent third party endorser novels that can shape audience attitudes and decision making through the use of social media (Lim et al., 2017). In a study conducted by Lim, Radzol, Cheah, and Wong, the study revealed the effects of source credibility, source attractiveness, product match-up, and meaning of transfer on consumer's attitude and purchase intention. Of all the variables in the study, all had a significant effect on purchase intention except on the source credibility variable (Lim et al., 2017). In their study, respondents acknowledged social media influencer' lack of credibility towards the product that they endorsed. The main reason was identified as social media influencer' inadequate expertise knowledge about the endorsed product (Lim et al., 2017). But unlike the study conducted by Hui (2017), the study showed that there was a significant influence on source credibility to influence purchase intention. The empirical finding of this study is consistent with the study of Brown, Broderick, and Lee (2007) where source credibility is said to directly affect the consumers' purchase intention in the context of interactive marketing. So it can be seen that forming an influencer's credibility is not trivial, it is important for companies to be careful in choosing influencers to be invited to collaborate with their brands.

However, there is a slight difference with a study conducted by Lim, Radzol, Cheah, Wong whose study results are determined by the mediating effects of consumer attitude (Lim et al., 2017). Then the other study shows that attitude toward the brand also has a positive impact on a customer's purchase intention. This study shows the relationship between social media influencer with consumer attitudes, which are not discussed in this study but replaced by the perceived quality variable that is used as a material for consumer consideration in creating purchase intentions (Ha & Lam, 2016).

Social media influencer in this study is stated to have a low positive correlation between purchasing intention which is 0.384; this means the causal relationship between influencer social media and purchase intention is low but can change in the same direction due to a positive correlation. Evans in Lim, Radzol, Cheah, and Wong, states that endorsers who are outside their respective fields of expertise can indirectly damage the image that has been built on consumers, this causes primary adverse purchase intention (Lim et al., 2017). This can be a factor in weak social media influencer on purchase intention.

Social media influencer in this study is stated to have a low positive correlation between purchasing intention; this means the causal relationship between influencer social media and purchase intention is low but can change in the same direction due to a positive correlation. Evans in Lim, Radzol, Cheah, and Wong, states that endorsers who are outside their respective fields of expertise can indirectly damage the image that has been built on consumers, this causes primary adverse purchase intention (Lim et al., 2017). This can be a factor in weak social media influencer on purchase intention.

Secondly, the electronic word of mouth with three dimensions (intensity, the valence of opinion, and content) individually has an insignificant influence on purchase intention, shown in table 8 which shows that t-value 1.440 and Sig. 0.151 > 0,05 (H2 was rejected) . Then, table 9 shows that e-WOM has a value of R² = 0.112 to purchase intention, which means that it contributes to affect purchase intention by 11.2%. The result also shows a low positive correlation between the electronic word of mouth and purchase intention which is 0.334. This is because many consumers prefer to see testimonials from influencers on YouTube rather than other people's reviews in the comments section. In contrast to studies of Sa'it, Kanyan, and Nazrin, the finding shows that four factors can have a significant relationship to purchase intention, namely relevance, accuracy, timeliness, and comprehensiveness. In the multiple regression test conducted revealed the results that e-WOM has an impact on purchase intention. The accuracy of e-WOM has the most reliable relationship with consumer purchase intention (Sa'ait, Kanyan, & Nazrin, 2016).

In the study of Tien, Rivas, and Liao (2019) concerning the influence of customer-to-customer electronic word of mouth, the results show that perceived usefulness and credibility together increase the likelihood of the adoption of an eWOM message, and eWOM adoption has a strong mediating role in the influence of eWOM credibility and usefulness on consumer purchase intention. Their study confirms the key mediating role exerted by eWOM adoption on the relationship between the usefulness and credibility of eWOM and purchase intention (Tien et al., 2019). Then in a study conducted by Bataineh (2015), the results of the multiple regression tests indicated that e-WOM quality, eWOM credibility, and eWOM quantity respectively; are significantly and positively impact purchase intention. In terms of the mediating role of corporate image the results indicated that corporate image mediates the relationship between the independent and dependent variables.

Since few previous studies have explored the mediating role of eWOM adoption on the influence of antecedents on consumer purchase intention, this study found that many can be mediating variables between e-WOM and purchase intention that can be used as a discussion in future research. Electronic word of mouth is a persuasive, inexpensive, and effective mode of marketing (Henricks, 1998; Silverman, 1997). Thus, this study found that electronic word of mouth on YouTube‘s C2C comments section was less effective, consumers preferred watching content from influencers compared to seeing the exchange of information through the comments section.

Next, perceived quality with all eight dimensions (performance; features; reliability; conformance; durability; serviceability; aesthetics; perceived quality) individually have a significant influence on purchase intention, seen in table 8 which shows that t-value 4.213 and Sig. 0.000 < 0,05 (H3 was Accepted). Then, table 9 shows that perceieved quality have a value of R² = 0.210 to purchase intention, which means that it contributes to influence purchase intention by 21%. Supported by studies from Li, which shows that perceived quality has a significant effect on purchase intention (Cheng, 2017). Also, the other study shows the result that perceived quality is a significant predictor of Malaysian consumers in the process of purchasing American and local products. The hypothesis also shows that perceived quality influences purchase intention regardless of whether it is imported or local products (Asshidin et al., 2016).

Based on statements from Lisichkova and Othman (2020), purchasing intention was found to be positively influenced by the perceived value and quality. Especially when the product recommended by the influencer is perceived by the consumers/followers as useful product that would add value to them.

Furthermore, this studies show a moderate positive correlation between perceived quality and purchase intention which is 0.485. In line with research conducted by Asshidin et al., the result shows a moderately significant relationship between perceived quality and emotional value on purchase intention. This means that consumers emphasize quality in the purchasing process; purchasing decisions may depend on perceived quality if consumers want to differentiate between local and imported products (Asshidin et al., 2016). This is result also supported by Zeithaml (1988) and Chi et al., (2011) who all suggested that the higher perceived value is, the higher is the purchase intention.

Lastly, all variables, namely social media influencer, electronic word of mouth, and perceived quality significantly have significant influence on purchase intention shown in table 7 which shows that Sig. 0,000> 0.05 (H4 was Accepted). Since, no one has done research with these three specific variables simultaneously with purchase intention. Hypothesis 4 is carried out to find out if the three independent variables simultaneously influence the dependent variable (purchase intention). This hypothesis was conducted to spread an idea to beauty product manufacturers, that social media influencer, electronic word of mouth, and perceived quality can be used for promotional strategies. In this study, the three variables can influence consumer purchase intention by 23.8%.

6. Implications and Conclusions

6.1. Theoretical Implications

Social media, especially Youtube, has been recognized as an important marketing tool for influencing consumer purchase intentions, which motivated many companies to search for opportunities to promote their brands through social media. In this case, beauty products have a tremendous opportunity to reach their market through YouTube. They are assisted by social media influencer and electronic word of mouth, which will form perceived quality and create consumer purchase intentions.

This research aims to find out the factors that can cause purchase intention with social media YouTube. Therefore, the following conclusions can be obtained:

Social media influencer has a significant influence on purchase intention of beauty products on YouTube (H1, R² 0.148, t – value 2.561, Sig. 0.011 < 0,05).

Electronic word of mouth has an insignificant influence on purchase intention of beauty products on YouTube (H2, R² 0.112, t – value 1.440, Sig. 0.151 > 0,05).

Perceived quality has a significant influence on purchase intention of beauty products on YouTube (H3, R² 0.210, t – value 4.213, Sig. 0.000 < 0.05).

Social media influencer, electronic word of mouth, and perceived quality simultaneously have a significant influence on the purchase intention of beauty products on YouTube (H4, Adjusted R² 0.238, f – value 22.791, Sig. 0.000 < 0.05).

6.2. Practical Implications

Collaborating with social media influencer must be an excellent promotional strategy by beauty products businesses to introduce their products in detail and provide an excellent visual experience to consumers. This marketing strategy makes the influencer play the role of a buyer or user of beauty products that can represent the positive things that are owned by the brand to increase the level of sales of the product brand.

Besides the credibility of influencers, the things that have to consider when choosing influencers of course with the indicators in this study. Influencers must be seen from the source credibility indicator, which must be truthful when delivering information, clear and detailed when delivering information, must routinely upload videos, have expertise in using beauty products, looks compatible with beauty products that will be used, and proper information delivery. Unlike social media influencer, electronic word of mouth strategies on YouTube may not be very effective in promoting beauty products. Consumers prefer the visual experience practiced by influencers over voluntary reviews from strangers through the comments section on YouTube. Since, there are many platforms that provide a place for consumers to give a review of their experience using the product. YouTube is not a top choice to see consumer reviews, this may be one of the factors in the low influence of e-WOM on purchase intention on YouTube. Electronic word of mouth strategy could be effective if used on other social media platform.

Also, perceived quality is the most influential on purchase intention. The beauty products companies need to form the perceived quality of consumers. Perceived quality will be formed when consumers begin to receive information from YouTube. The information that will be obtained in accordance with what consumers will see and receive, is important for companies to improve the quality of their products and be consistent with product excellence. This will be a plus for consumers to create purchase intentions.

Therefore, it is recommended that beauty brands need to increase quality of beauty products and selective in choosing influencers for promotion. It is also important to map the market that will be faced when promoting beauty products on YouTube.

6.3. Limitation and Future Research Recommendations

This study has limitations, the primary data used in this study is based on a larger sample size to explore topics that ultimately show comprehensive results. With the topic in this study, it would be better if the consumer attitude variable was added as a moderating variable; thus, the study would be more filled with consumer attitude or brand image indicators. Another concern is about the various products which in general only discuss beauty products without specific brands. The study only focuses on YouTube influencers in general without explicitly choosing the influencer. If a survey was prepared to target a particular product or sector, researchers could have different results from research.

Future studies should sharpen the concept of influencer marketing by analyzing a specific brand with a specific YouTube influencer. Also, add moderating variables such as brand image, consumer behavior, or use perceived quality as a moderating variable to complete the research process and use other methods used to test the credibility of the information.

This Reasearch was financially supported by Bina Nusantara University.