CHAPTERII LITERATUREREVIEW Inthischapter,theliteraturereviewprovidesacomprehensiveoverviewofexistingliterature relevantresearchconcerningthetopicofKeyFactorsInfluencingGenZ'sConsumerSatisfaction andPurchaseDecisionforLocalMoisturizers.Bycompilingtheories,keyconcepts,and frameworks,thisreviewestablishesthefoundationalknowledgenecessaryforthisresearch. Furthermore,itaidstheauthorinidentifyinggapsinthecurrentliteratureandsetsthestagefor thedevelopmentoftheresearch'stheoreticalframework. 2.1ConsumerBehavior Beforepurchasinggoodsandservices,consumerstypicallyengageinadecision-makingprocess thathelpsthemchooseproductsandservicesthatmeettheirneeds.Thisprocesscanvary significantlybasedonthecomplexityofthefactorsinfluencingtheirdecisions(Rani,2014). Knownasconsumerbehavior,thisfieldofstudyexamineshowindividualsfulfilltheirneedsand desires.TheAmericanMarketingAssociationdescribesitastheprocessbywhichindividuals select,purchase,use,anddisposeofgoodsandservices.HawkinsandMothersbaugh(2001) furtherdefineitasaseriesofactionsanddecisionsinvolvedinselectinganddiscarding products.Kazmi(2004)addsthatitencompassesbothmentalandemotionalprocessesduringthe searchforproductsandservices.Inessence,consumerbehaviorisamultifaceted decision-makingprocessinfluencedbyvariousfactors(AmericanMarketingAssociation,n.d.; Hawkins&Mothersbaugh,2001;Kazmi,2004). 15 Figure2.1FactorsAffectingConsumerBehavior Source:Rani(2014) AsseeninFigure2.1,Consumerbehaviorisinfluencedbyacombinationofinternaland externalfactors,whichcanbecategorizedintofourprimarygroups:Psychological,Personal, Economic,andCultural&Social.Detailedexplanationsforeachofthesecategoriesareas follows: PsychologicalFactor 1.Motivation Motivationisaperson’ssupportingsystem,initiativeactions,andwillingnesstosupport aspecificbeliefthatdrivesthemtopurchasegoodsandservices. 2.Perception Perceptioniswhentheconsumersareorganizing,selecting,andinterpretingthe informationavailableintosomethingmeaningfulandmakingsensebeforedecidingto purchasesomething. 3.Learning Newinformationandexperiencesarelearnedthroughtheconsumer’saction.The decisiontobuyaproductisbasedonthelatestnewstheygetfromtheirpersonal 16 experience.Therefore,consumerswhohavemorepositiveexperiencesandsatisfaction tendtobuymoreoftheproducts. 4.Beliefs Consumers’beliefssystemissomethingthebuyerholdontoandbecomestheirprinciple whenviewingaproduct.Thisbeliefisacquiredbytheirpersonalexperiencesandother influencessuchasfamily,friends,advertising,etc. PersonalFactor 1.Age Thedifferentagegroupsofpeoplehavedifferentneedsandspendingstyle.Therefore, agedifferencesresultedindifferentpurchasingbehavior.Forexample,peopleabove30 aremorelikelytobeplannedbuyers,whilethosebelow30areusuallymoreimpulsive buyers. 2.Lifestyle Thewaycustomerslivetheirlives,startingfromtheirdailyactivities,interests,and opinions,affectstheirbuyingbehaviorsincethegoodstheypurchasemustreflectorbe usefulfortheirlifestyle. 3.Occupation Thetypeofoccupationapersonhas,createasignificantimpactonthetypeofgoodsand servicestheychoosetobuy.Forexample,acompanymanagerwillbuythenewestphone model,whiletheregularofficeworkerswillbuyamoreaffordablephoneinprice. 4.Personality Aperson'scharacterorpersonalitydifferfromindividualtoindividualandcanchange fromtimetotime.Thesechangeswillhaveasignificantimpactonthepurchasing conductofthebuyers.Qualitiessuchaspredominance,forcefulness,self-assurancecan helpthebuyertodecidetheirbehaviorforaspecificitem. EconomicFactor 1.PersonalIncome Incomeplaysabigpartinconsumerbehaviorbecauseincomedeterminedtheitemsand quantityoftheproductsthebuyerscanafford. 17 2.IncomeExpectation Incomeexpectationhelpspeopletoplanfortheirfutureexpenditure.Thehighertheir incomeexpectation,themorelikelyitisforthemtoplantheirspendingonhigherprice productsorinmoresignificantquantity. 3.Savings Somepeoplearereducingtheirspendinginvariouswaystoincreasetheirsavings.Thus, peoplearelesslikelytopurchasenewitemsoranitemthatisnotconsiderednecessary. Cultural&SocialFactor 1.SocialClass Inthesocialhierarchy,eachrankhasitsvalues,lifestyle,interest,andbehaviorsimilarto eachindividualfromthesameclass.Therefore,wecanassumethatpeoplefromthesame sociallevelpurchasedthesameneedsandwants. 2.Family Itisoftenfoundthatthefamilyholdsthesamebeliefsandvaluesthathavebecomethe mostinfluentialfactorsinshapingtheindividual’sbehaviors.Themarketermustfindthe rolesofhusband,wife,andchildreninthefamilytotargetspecificrolesintheir advertisement. 3.Roles Aroleisanindividual’sexpectedattitudesandactivitiesaccordingtotheirsocialclass, profession,gender,etc.Forexample,aCEOofacompanyboughtanexpensivecarto fulfillhisrolesothathecanbetakenseriouslybyhisbusinesspartner. 4.Culture CulturaltrendsorBandwagonimpactarecharacterizedaspatternsgenerallyfollowedby individualsbecauseoftheirpopularityandsocialpressure.Asaresult,morepeople followthetrends,andtheywilleventuallycreateahabit. 5.ReferenceGroups Humansaresocialcreatureswholiveinagroupandoftenpickuptheirgroups'behaviors sincetheywanttofeeltheybelongtothegroup.Inthismodernworld,people'ssocial groupsarerelatedtotheirwork,age,gender,hobbies,etc.Theimpactofthesegroups differsonthetypeofproducts. 18 2.2ProductQuality Qualityisaproductthatisreadytobemarketedfreefromdefectsandmeetsthestandardsand requirementsspecified.Productsaredefinedassomethingthatcanbeofferedtomeettheneeds anddesiresofconsumers.AccordingtoKotlerandArmstrong(1998),aproductisaproducer's understandingofasubjectthathassellingpowerandcanbeofferedtothemarkettomeetthe organization'sgoals.Productqualityishowwellaproductexplainsitsstrengthsanduniqueness intermsoffunction,performance,ease,durability,andothers. Productqualityisoneoftheimportantaspectsofmarketing.Productqualitycanbeacrucial factorinwinningcompetitioninthemarket,whichultimatelyleadstocustomersatisfaction. Productqualityhasseveraldimensionsasfollows(Kotler&Keller,2008): 1.Performanceisusuallybasedonconsumerpreferences.Performanceincludesmeasurable attributes. 2.ProductFeaturesalsobecomedimensionsofproductqualitybecauseadditionalfeatures ofacoreproductcanaddvaluetotheproduct. 3.Reliabilityisrelatedtotheconditionwhereaproductcanfunctionproperlyornot. 4.Conformanceishowwellaproductconformstoapplicablestandards.Ifit'saservice,it canbemeasuredbylookingatfactorsliketimeliness,amongothers. 5.Aestheticsarejudgmentsperceivedbycustomers.Thisdimensionismeasured subjectively. Productsthemselveshave3levelsasfollows(Abdurrahman,2018): 1.Thefirstlevelisthecorebenefit.Atthisstage,itrelatestothebenefitstrulyfeltby consumers,forexample,inthecaseofEminafacialsoapproductsthataimtocleansethe facefromdust.AfterconsumerscleansetheirfacewithEminafacialsoap,theytrulyfeel thattheirfaceiscleaner. 2.Thesecondlevelistheactualproductrelatedtothecharacteristicsandcharacteristicsofa productsuchasbrand,packaging,quality,andothers.Forexample,inEminaproducts, whicharesynonymouswithgirlyandcolorfulpackaging. 3.Thethirdlevelistheaugmentedproduct,forexample,updatesfrompreviousproducts. Atthislevel,productcompletenessisalsoincluded.Forexample,inEminaproducts, 19 variouspackagesareofferedsuchasbrighteningpackagesforwhiteningandacne packagesforacne-proneskin. 2.3Price Priceistheexchangevalue,whetherintheformofgoodsorservices,toobtainbenefitsfrom othergoodsorservicesfromotherswithinacertainperiod.Priceistheamountofmoney requiredtoobtainaproductalongwithitsservices.Priceisamarketingmixelementthat generatesprofit.Thereareseveralfactorstoconsiderinsettingpricesasfollows(Abdurrahman, 2018): 1.Customervalueperceptionortheupperpricelimit,whereahigherpricethanthe product'svaluewillresultinanegativeperception,causingcustomersnottobuythe product. 2.Otherinternalandexternalconsiderationsincludestrategies,objectives,andmarketing mix.Here,companiesmustconsidercustomerandcompetitorvalueperceptions, customervalueperceptionsandproductcosts,andothers. 3.Productcostsarerelatedtothelowerpricelimit.Customerswillconsiderwhetherthe priceofaproductisappropriate. Thereareseveralpricingstrategies,namely(Abdullah,Thamrin.,2019): 1.Cost-basedpricing,wherethepriceisdeterminedbasedonthecostsincurred.This strategyisnotmarket-oriented.Marketersmustensurethattheirproductsaresuitable. Therearetwotypes:mark-uppricing,wherethepricecomesfromcost+profit,andprice floorpricing,wheretheproducersetsthefullpriceforsomeproductstocoverallcosts. 2.Value-basedpricing,wherethepriceissetbasedonconsumerperceptionsand assumptionsratherthantheamountofcostsincurred.Therefore,inthisstrategy, companiesmustunderstandwhatconsumersneedandtheirvalueperceptions.Hence, companiesareadvisedtoprovidegoodqualityandserviceatareasonableprice. 3.Profittargetpricing(Break-evenpoint),wherecompaniessetpricesbasedontheprofit theywanttoachieve. 4.Newproductpricingconsistsofskimpricing,wherethecompanysetsahighbut profitablepriceeventhoughsalesarelow.Then,thereispenetrationpricing,wherethe companytriestoreachallmarketsegmentsbysettingalowprice.Inaddition,thereare 20 pricingstrategiesforproductlines,additionalproducts,ancillaryproducts,package products,andbundledproducts. 5.Priceadjustmentstrategiesincludediscountpricing,segmentedpricing,psychological pricing,promotionalpricing,geographicpricing,dynamicpricing,andinternational pricing. AccordingtoKotlerandAmstrong(1998),thereareseveralpriceindicatorsasfollows: 1.Affordability,wheremanufacturerssetpricesbasedonconsumerability. 2.Pricesuitabilitywithproductquality 3.Pricesuitabilitywithproductbenefits 4.Pricecompetitiveness,wherethepriceofferingsofferedbyonemanufacturerdifferand competewithothermanufacturersonthesameproduct. 2.4Promotion Promotionisanactivitythatcommunicatesthebenefitsofaproductandpersuadesthetarget consumertobuytheproduct(Kotler&Amstrong,2012:76).Promotionistheeffortofmarketers toinformandinfluenceotherindividualsorpartiessothattheyareinterestedinconducting transactionsorexchangingtheproductsorservicestheypromote(Sudaryono,2016).Meanwhile, accordingtoSanyotoDanang(2012),promotionisanaspectofallmarketingactionsthatcanbe authorizedtoprovide,invite,andcreatememoriesofthecompany'sproductsinthemindsof customers.AccordingtoKotlerandArmstrong(2012),promotionincludesavarietyofactivities suchasadvertising,personalselling,salespromotion,publicrelationsanddirectmarketing.Each ofthesecomponentshelpstoinform,persuade,andinfluencecustomerdecisions,andtheyall serveanimportantroleinthemarketingmixbyraisingbrandawarenessandpromotingbusiness success.AccordingtoKotlerandArmstrong(2000)therearefivepromotionindicators,namely: 1.Advertisement 2.Salespromotion 3.Privatesale 4.Directmarketing 21 2.5BrandImage Brandimageisthewholeperceptionandfeelingconsumershaveaboutabrand,andithasa substantialimpactonconsumerbehaviorandplaysanimportantpartinmarketingactivities (Zhang,2015).SichtmannandDiamantopoulus(2013)describebrandimageasconsumer overallperceptionsofproductsfromacertaincountry,basedontheirearlierjudgmentsofthe country'smanufacturingandmarketingstrengthsandlimitations.Brandimageisessentiallythe collectiveimpressionthatabrandleavesinthemindsofconsumers.It’snotjustaboutthelogo ortheadvertising,buttheentireexperienceandsetofexpectationsthatcometomindwhen someonethinksaboutabrand.Thisincludestheirperceptionsoftheproduct’squality,the emotionstheyfeeltowardsthebrand,andtheiroveralltrustandloyalty.Brandimagemaybe assessedbyanalyzingthecustomer'suniqueness,memoryabilitytowardsthebrand,andthe effectivenessoftheproduct'svalueproposition(KellercitedinMalikahasri,2023). Theproductattributes,thecompany,themarketingmix,individualopinionsofthebrand, personalvalues,experience,kindofbrandusers,andcontextvariablesareallaspectthatmight impactthecreationofbrandimage(Dobni&Zinkhan,1990)citedin(Sitompul,2021). Consumerscanrapidlyrecognizeabrandsincethebrandimageactsasapersonalsymbol includingallofthebrand'sdescriptiveandevaluativeinformation(Iversen&Hem,2008).Mao etal.(2020)describebrandimageasimpressionsofabrandasreflectedbythebrand associationspreservedinaconsumermemory. 2.6CustomerSatisfaction Manypeopleperceivecustomersatisfactionasastatewhereanindividual'sneedsanddesiresare fulfilledasanticipated.AccordingtoRitaetal.(2019),customersatisfactionisdescribedasthe extenttowhichcustomers'needs,wants,andexpectationsaremet,whichinturnencourages repeatpurchasesorsustainedloyalty.Therefore,customersatisfactionordissatisfaction representsapost-purchaseevaluation,reflectingwhethertheproduct'sperformancealignswith thecustomer'sexpectations.Atitscore,consumersatisfactionisdefinedasapost-consumption evaluativejudgmentconcerningaspecificpurchasedecision.Thisevaluationconsistsofboth cognitiveandaffectivecomponents.Cognitivesatisfactionreferstotheconsumer’sassessment 22 basedontheperceivedperformanceoftheproductorservicerelativetotheirexpectations,while affectivesatisfactioninvolvestheemotionalresponsetotheconsumptionexperience(Oliver, 1980;Westbrook&Oliver,1991). Satisfiedcustomersaremorelikelytoexhibitloyalty,becomingrepeatbuyersandspreading positiveword-of-mouth,whichcanattractnewcustomers(Reichheld&Schefter,2000). Additionally,higherlevelsofconsumersatisfactionareassociatedwithbetterfinancial performanceforbusinesses,assatisfiedcustomersarelessprice-sensitive,moreinclinedto purchaseadditionalproducts,andlesslikelytoswitchtocompetitors(Anderson,Fornell,& Mazvancheryl,2004).Customersexperiencesatisfactionwhentheirexpectationsarefulfilled, resultinginafeelingofhappiness.AccordingtoKotlerandKeller(2006),customersatisfaction isdescribedas"aperson'sfeelingofpleasureordisappointmentresultingfromcomparinga product'sperceivedperformanceoroutcometotheirexpectations."Furthermore,customer satisfactioncansignificantlyinfluencecustomerloyaltyandtheirwillingnesstoreturn.Satisfied customersaremorelikelytoexhibitloyalty,becomingrepeatbuyersandspreadingpositive word-of-mouth,whichcanattractnewcustomers(Reichheld&Schefter,2000).Managing customerexpectationsisalsovital;companiesmustcommunicateaccuratelyaboutwhattheir productsandservicescandelivertoensurealignmentbetweenexpectationsandactual performance(Kotler&Keller,2012). 2.8PurchaseDecision Whenbuyingaproduct,aconsumercertainlyconsidersseveralfactorssuchaswhethertheywill buyornot,wheretheywillbuyaproduct,whentheywillbuyit,howtheywillpayforwhatthey buy,andwhattheywillbuy.Theendofthisactioniscalledapurchasedecision.Apurchase decisionisasequenceofactionsorbehaviorsthatinvolvemanydecisions.The5sequencesof purchasedecisionsareasfollows(Abdullah,2019): 1.ProblemIdentification Aconsumermustbeawareoftheconditiontheyhavecomparedtowhattheywant.The gapbetweenthesetwoisthebeginningofthepurchaseprocess.Theurgetomakea purchasecancomefromwithinoneselforfromexternalstimuli. 23 2.InformationSearch Whensomeonealreadyknowswhattheywant,theytendtosearchforinformationabout theproduct. 3.Evaluation Evaluationinvolvesvariousalternativesinthepurchasedecision-makingprocess.Atthis stage,consumersmakepreferencesforgoodsandmayalsobeforminganinterestin buyingaproductorservicetheypreferthemost. 4.PurchaseDecision Inthisprocess,aninteresthasbeenformedfromtheprevioussequence,buttomakea decision,thereare2factorsthatinfluencethepurchasedecisionfrominterest,namelythe attitudesofothersandunforeseensituationalfactors. 5.Post-PurchaseBehavior Therearetwobehaviorsthatwillemergeafterthepurchase,namelyconsumer satisfactionordissatisfaction. Thereareseveralindicatorsinthedecision-makingprocess(Suryani,2008): 1.Productchoice,whereconsumershavethechoicetousetheirmoneytobuyaproductor forotherpurposes. 2.Brandchoice,whereconsumerschoosewhichbrandtobuy. 3.Retailerchoice,whereconsumersdecidewhichretailertovisit. 4.Purchasetiming,theselectionofthetimeofpurchasewhichcanvarydependingon consumerneeds. 5.Purchasequantity,relatedtohowmuchofaproducttheconsumerwillbuy. 24 2.7PreviousStudies Table2.1PreviousStudies Author Title VariableObjectiveMethodology Findings SariFitri, Yoga Fortuna Wisnu Wardana, Fahrina Mustafa, Efti Novita Sari, Ilham Arief (2023) Analysisof TheInfluence ofOnline Purchase Decisions, Digital Perceive Valueof Qualityand DigitalViral Marketingon Consumer Satisfaction ofSkincare Products -Consumer happiness -Productquality -Viralmarketing -Purchase decisions -Customer satisfaction Todeterminethe influenceof productquality, viralmarketing, andpurchase decisionson consumer happinessand satisfaction. Thestudytargets skincareproduct userswitha non-probability sampleof100 respondents,collects datathrough Likert-scale questionnaires, employsexplanatory researchand hypothesistesting, andanalyzesdata usingpathanalysis withSPSSsoftware. Productqualityand viralmarketing directlyimpact purchasedecisions, whichinturn influencecustomer satisfactionand happiness.Both productqualityand viralmarketingalso affectconsumer satisfactionthrough theirimpacton purchasedecisions. Fellicia Etano Santoso, Wahyu Dyah Prastiwi, Mukson (2023) Evaluating The Consumer Preferenceof UHTUltra MilkFlavor: Evidence from GenerationZ Consumers -UHTUltraMilk Flavorattributes -Demographic characteristics -Consumption behavior -Awarenessof drinkingmilk -Familiaritywith socialmedia Toanalyzethe characteristics andpreferences ofGenerationZ consumersfor UHTUltraMilk Flavor. Thestudy,usesa casestudydesign withpurposive samplingof150 respondentsaged 18-22whorecently boughtUHTUltra MilkFlavorwith pocketmoney.Data wascollectedviaan onlinesurveyon GoogleFormsand analyzedusing descriptiveand conjointanalysis. GenerationZ consumersaremostly women,20-year-old studentswith incomesofIDR 500,000toIDR 1,000,000.Theybuy UHTmilkweekly fromminimarkets, areactiveonsocial media,andprefer chocolate-flavored UHTUltraMilkin 250mlpackspriced ≤IDR5,000, prioritizingtaste. 25 Raden Aswin Rahadi, Candice Iswara, Kurnia Fajar Afgani and Alfred Boedima n(2023) Examining theFactors thatInfluence Consumer Willingness toPayof BubbleTea among GenerationZ inBandung, Indonesia -Consumer purchasedecision -Intrinsicfactors influencingbubble teaquality -Extrinsicfactors influencingbubble teaquality -Purchasedecision behavior -Pricelimit disparities -Taste -Productdesign -Brandinfluence -Location accessibility Toexamine factors influencingthe consumer purchase decision (willingnessto pay)ofbubble teaandanalyze pricelimit disparities among GenerationZ consumersin Bandung, Indonesia. Thequantitative studyinvolves300 GenerationZ respondentsin Bandung,Indonesia. Dataiscollected through questionnaires coveringprice,taste, productdesign, brandinfluence,and location accessibility,and analyzedusing multiplelinear regression(MLR). Taste,price,product design,brandimage, andlocation accessibility individuallyand togetherinfluence GenerationZ's willingnesstopayfor bubbleteain Bandung. Additionally,decision factorsandprice limitsvarybasedon demographicfactors. AstriSari Wereh, Willem J.F.A Tumbuan , ReginaT. Saerang (2019) AQualitative AnalysisOf Consumer Buying InterestOn Local Cosmetic ProductsIn Manado -Consumerbuying interest -Knowledgeabout consumerbuying intention -Consumer behavior Toanalyze consumerbuying interestinlocal cosmetic productsin Manado. Thequalitative studyinvolves10 respondentswho purchaseanduse localcosmetic products.Datais collectedthrough in-depthinterviews usingpurposive sampling. Respondentsshow highbuyinginterest inlocalcosmetics, withallproviding positivefeedback. Trustinlocal cosmeticsremains strongdespitethe presenceofforeign brands. Pantri Heriyati; Aryo Bismo; Monica Erwinta (2024) Jakarta’s GenerationZ andLocal Fashion Industry: Unveilingthe Impactof BrandImage, Perceived Quality,and Countryof Origin -Countryoforigin -Brandimage -Perceivedquality -Purchaseintention -Consumer behaviorinthe casualfashion industry Toexaminethe impactof countryoforigin onpurchase intentioninthe casualfashion industry,with brandimageand perceivedquality asintervening factors. Thequantitative studyinvolves412 IndonesianGenZ respondentsin Jakartawithlocal casualfashion experience.Datais collectedviaonline questionnairesand analyzedusing structuralequation modeling (SEM-PLS)with SmartPLSv3.2.9 software. Thecountryoforigin affectsbrandimage andperceivedquality, whichinfluences purchaseintention. Thestudysupports pastresearchand indicatesthat emphasizinga positivecountry imageandstrong brandperceptioncan swayIndonesianGen Zconsumersin Jakarta. 26 Endy Gunanto Marsasi (2024) Investigation oftheeffects ofsocial capitalon information-s haring behaviorthat drivesGenZ purchase intentions throughsocial commerce. -Consumer decision-making -Productfeatures -Peerpreferences -Structural, relational,and cognitivecapital -Information sharing -Purchaseintention -Ageandgender -Consumer characteristics Toexaminehow socialcapitalin networks influences consumer decisions, focusingon productfeatures, peerpreferences, andthelink between information sharingand purchase intention, consideringage andgender. Thequantitative studyinvolves223 millennial respondentsbuying consumergoodsvia socialmedia.Datais collectedthroughan onlinesurveyand analyzedusing StructuralEquation Modeling(SEM). Structural,cognitive, andrelationalcapital impactinformation exchange.Positive sharingboosts purchaseintention. Promotionis expectedtoriseon Twitterand Instagram,with youngerwomen sharingmore information. BasedonTable2.1,Previousstudieshaveprimarilyfocusedondifferentaspectsoftheskincare industry,suchasmarkettrends,consumerbehavior,andfactorsinfluencingpurchasedecisions. However,theproposedresearchtitled"KeyFactorsInfluencingGenZ'sConsumerSatisfaction andPurchaseDecisionsforLocalMoisturizersinIndonesia"aimstoaddressspecificgapsand explorebroaderaspectsthatremainlargelyunexploredintheIndonesianskincaremarket. 1.FocusonLocalMoisturizers:Whilepreviousstudiesdiscussvariousskincareproducts andmarkettrends,thisresearchspecificallytargetslocalmoisturizers.Bynarrowing downthefocus,thestudyaimstodelvedeeperintothefactorsinfluencingthepurchasing decisionsandsatisfactionlevelsofconsumersspecificallyregardinglocalmoisturizer products. 2.GenerationZFocus:TheresearchspecificallytargetsGenerationZconsumers, acknowledgingtheirgrowinginfluenceanduniquepreferenceswithintheskincare market.Byfocusingonthisdemographicgroup,thestudyaimstoprovideinsights tailoredtothepreferencesandbehaviorsofyoungerconsumers,contributingtoadeeper understandingoftheIndonesianskincaremarketdynamics. 27 2.8HypothesisDevelopment Thefollowingisthehypothesisproposed,whichisasfollows:Theproposedhypothesisaimsto evaluatetheKeyFactorsInfluencingGenZ'sConsumerSatisfactionandPurchaseDecisionfor LocalMoisturizers.Thehypothesisinthisresearchisdetailedbelow. 2.8.1ProductQualitytoConsumerSatisfaction Productqualityisaproduct'sdistinctiveabilitytodemonstrateitsutility,whichincludesits lifespan,reliability,simplicityofuseandmaintenance,andothercharacteristics.Productquality clearlyinfluencesconsumersatisfaction,asconsumersaremoreinclinedtorepurchaseitemsand servicesthatfulfilltheirqualityexpectations(Lina,2022;Waluyaetal.,2019citedin Arliandhini&Resawati,2023).Customersgenerallyfeelonelevelofsatisfaction:ifthequality ofservicesandproductsmeetstheirexpectations,theywillbesatisfied;otherwise,theywillbe disappointed(Limakrisna&Ali,2016). H1:ProductQualitypositivelyinfluenceConsumerSatisfaction 2.8.2PricetoConsumerSatisfaction AccordingtoKurniawan(2022),oneelementofthemarketingmixthatisflexibleand changeableisprice,whichisimportantfordominatingthemarket.AsstatedbyDjurmanoetal. (2018),customersatisfactioncanbeattainedwhencostsareproportionaltovaluereceived,or whenanitem'spriceiscomparablewithprofits.BasedonthestudybyZeithaml(1988), Affordablepricedproductscoupledwithgoodqualitycanenhancedtheoverallconsumer satisfaction.Inaddition,reasonablepricingstrategiesthatalignwithcustomerexpectationscan positivelyinfluencesatisfaction(Kaura,2012).ResearchbyHerawatyetal.(2022)showedthat pricehasapositiveandsignificanteffectonconsumersatisfaction. H2:PricepositivelyinfluenceConsumerSatisfaction 28 2.8.3PromotiontoConsumerSatisfaction Promotionisacomponentofmarketingstrategythatservestoinform,persuade,andremind consumersofaproductsold,bothdirectlyandindirectly(Kotler&Keller,2012).Researchdone byGrewaletal.(2011)showsthatpromotionsthatmatchwhatshoppersarelookingforenhance theirsatisfactionbygivingthemrelevantandupdatedinformation,makingtheirshopping experiencebetter.Detailedpromotionalinformation,suchasclearpricingandproductfeatures, helpsconsumersmakeinformeddecisions,thusincreasingtheiroverallsatisfaction(Lietal., 2021).BasedonearlierresearchbyJuniantara,etal(2018)foundthatthereisafavorableand significantdirectinfluenceofpromotiononconsumersatisfaction. H3:PromotionpositivelyinfluenceConsumerSatisfaction 2.8.4BrandImagetoConsumerSatisfaction Brandimageiswidelyconsideredtoreflectcustomers'perceptionsofthebrand,asdemonstrated bybrandassociations(Keller,1998citedinMohammed&Rashid,2016).Brandimageis importanttohelpconsumersrealizetheirneedanddesireforaspecificbrandandtoseparateone productfromotheritems(Anwar&Gulzar,2011).AccordingtoSallam(2016),productswitha relativelyhighbrandimagehaveatendencytobeofhigherqualitythanproductswithalower brandimage.Farizanetal.(2018)discoveredthatbrandimagehasafavorableandsignificant effectonconsumersatisfactionandloyalty. H4:BrandImagepositivelyinfluenceConsumerSatisfaction 2.8.5ConsumerSatisfactiontoPurchaseDecision SangadjiandSopiah(2013:181)statedthatcustomersatisfactionisdefinedasaconditionwhere consumerexpectationsforaproductareinaccordancewiththerealityreceivedbyconsumers. ResearchdonebyLaksanaetal.(2022)showedthatconsumersatisfactiononpurchase decisionshasasubstantialandpositiveeffect.Satisfiedcustomersaremorelikelytoexhibit 29 loyaltybehaviors,includingrepeatpurchasesandrecommendationstoothers,soitconcludes thatthepositiveeffectofsatisfactiononpurchasedecisions(Zeithamletal.,1996). H5:ConsumerSatisfactionpositivelyinfluencePurchaseDecision 2.9ConceptualFramework TheconceptualframeworkforthisresearchisshowninFigure2.2,theauthoradaptedtheresults fromtwopreviousstudiestocompletethisresearch.AstudydonebyLaksanaetal.,(2022) statedthatPromotionandProductQualitysignificantlyimpactsconsumersatisfactionand purchasedecisions.While,PutraandShihab(2023)foundoutthatbesidesProductQualityand Promotion,PriceandBrandImagealsoaffectsconsumersatisfactionandpurchasedecision.The combinationofthesetwoframeworksisnecessarybecauseusingonlyonewouldnotprovidea comprehensiveunderstandingofallthefactorsinfluencingconsumersatisfactionandpurchase decisions.Thetwoframeworkscomplementeachotherbycoveringabroaderrangeofvariables, thusofferingamorecompletepictureoftheresearch. Consumersatisfactionactsasamediatingvariableinthisframework,connectingthe independentvariables(ProductQuality,Price,BrandImage,andPromotion)withthedependent variable(PurchaseDecision).Highproductqualityisexpectedtoenhanceconsumersatisfaction asitmeetsorexceedscustomerexpectations,leadingtopositiveevaluationsandrepeat purchases.Similarly,whenthepriceofaproductisperceivedasfairandreflectiveofitsvalue, consumersatisfactionincreases,makingthemmorelikelytorepurchase.Effectivepromotional strategiesthatproviderelevantandtimelyinformationalsoenhancesatisfactionbysimplifying thedecision-makingprocessandofferingadditionalincentives.Astrongbrandimagefurther boostssatisfactionbyfosteringtrustandloyalty,asconsumersfeelmoreconfidentintheir purchasesfromreputablebrands. Therefore,6variablesareevaluatedandfromthisframework,theauthorhopestoknowwhichof thesevariablessignificantlyinfluenceconsumersatisfaction,andinturn,howconsumer satisfactionaffectspurchasedecisions.Byidentifyingthemostsignificantcontributorsto 30 consumersatisfaction,thisresearchaimstoprovideinsightsforbusinessesonwheretofocus theireffortstoimprovecustomersatisfactionanddrivepurchasedecisions. Figure2.2ConceptualFramework(source:Putra&Shihab,2023;Laksanaetal.,2022) 31 Thispageisintentionallyleftblank. 32.