I CONSUMER CONFUSION AND ITS IMPACT ON DECISION MAKING AMONG FEMALE CONSUMERS IN INDONESIA’S ONLINE COSMETICS AND PERSONAL CARE INDUSTRY By Marshanda Tristandinata 19021159 Undergraduate Program School of Business and Management Institut Teknologi Bandung II This page was intentionally left blank. III CONSUMER CONFUSION AND ITS IMPACT ON DECISION MAKING AMONG FEMALE CONSUMERS IN INDONESIA’S ONLINE COSMETICS AND PERSONAL CARE INDUSTRY Marshanda Tristandinata 19021159 Undergraduate Program School of Business and Management Bandung Institute of Technology, 2024 Supervisor: Nurrani Kusumawati, S.E., M.S.M. ABSTRACT This study examines consumer confusion and its impact on decision-making among female consumers in Indonesia's online cosmetics and personal care industry. With the rise of online shopping due to its convenience and extensive product information, consumer confusion— defined as the inability to correctly interpret various aspects of product information—has become a significant issue. This confusion can lead to poor decision-making, reduced satisfaction, and financial losses for both consumers and businesses. Addressing consumer confusion is crucial as Indonesia's online cosmetics and personal care market continues to grow. A mixed-method approach was used, combining quantitative surveys and qualitative interviews. Data was collected through an online survey and analyzed using PLS-SEM, followed by semi-structured interviews that were manually coded through open, axial, and selective coding. The findings reveal that informational sources—overload, similarity, and ambiguity positively impact overall consumer confusion. Additionally, utilitarian decision-makers show higher levels of confusion compared to hedonic decision-makers. Previous brand experience was found to mitigate the negative effects of overload and ambiguity confusion on decision quality and enhance decision quality in the case of similarity confusion. Furthermore, overload and ambiguity confusion negatively impacts decision quality, whereas similarity confusion shows a positive impact. Finally, all informational sources of confusion positively impact decision postponement and cognitive dissonance. This study extends existing knowledge in marketing and consumer behavior, particularly regarding consumer confusion in the cosmetics sector. It offers practical insights for companies and brand managers to develop strategies that reduce consumer confusion, such as simplifying decision-making processes, providing clear product information, and leveraging previous brand experiences. Finally, the study suggests directions for future research in consumer confusion. Keywords: consumer confusion, consumer decision making, online commerce, cosmetics and personal care industry. IV This page was intentionally left blank. V PENGARUH KEBINGUNGAN KONSUMEN TERHADAP PENGAMBILAN KEPUTUSAN KONSUMEN WANITA DALAM INDUSTRI KOSMETIK DAN PERAWATAN PRIBADI ONLINE DI INDONESIA Marshanda Tristandinata 19021159 Program Sarjana Sekolah Bisnis dan Manajemen Institut Teknologi Bandung, 2024 Pembimbing: Nurrani Kusumawati, S.E., M.S.M. ABSTRAK Studi ini meneliti kebingungan konsumen dan dampaknya terhadap pengambilan keputusan konsumen wanita dalam industri kosmetik dan perawatan pribadi online di Indonesia. Dengan meningkatnya kebiasaan berbelanja online karena melimpahnya informasi produk yang tersedia, kebingungan konsumen—yang didefinisikan sebagai ketidakmampuan untuk memahami berbagai aspek informasi produk dengan benar—muncul sebagai masalah yang signifikan. Kebingungan ini dapat menyebabkan pengambilan keputusan yang buruk, penurunan kepuasan, dan kerugian finansial bagi konsumen dan bisnis. Penelitian ini menggunakan metode campuran, yaitu kuantitatif dan kualitatif. Data kuantitatif dianalisis dengan metode PLS-SEM, sedangkan data kualitatif dianalisis dengan tiga tahapan pengkodean: pengkodean terbuka, aksial, dan selektif. Hasil penelitian menunjukkan bahwa informasi yang berlebihan, kesamaan informasi, dan ambiguitas informasi berdampak positif terhadap kebingungan konsumen. Konsumen yang memiliki gaya pengambilan keputusan utilitarian mengalami tingkat kebingungan yang lebih tinggi dibandingkan dengan gaya hedonis. Pengalaman konsumen dengan merek tertentu dapat mengurangi dampak negatif dari kebingungan yang disebabkan oleh informasi yang berlebihan dan ambigu terhadap kualitas keputusan, tetapi kebingungan yang disebabkan oleh kesamaan informasi justru meningkatkan kualitas keputusan. Di sisi lain, kebingungan akibat informasi yang berlebihan dan ambigu memiliki dampak negatif terhadap kualitas keputusan, sedangkan kebingungan karena kesamaan informasi justru berdampak positif. Secara keseluruhan, semua sumber informasi yang menyebabkan kebingungan berdampak positif terhadap penundaan pengambilan keputusan dan disonansi kognitif. Studi ini memperluas pengetahuan dalam bidang pemasaran dan perilaku konsumen. Penelitian ini memberikan wawasan kepada perusahaan tentang cara mengurangi kebingungan konsumen dengan menyederhanakan proses pengambilan keputusan dan menyediakan informasi produk yang jelas. Studi ini juga menyarankan arah penelitian selanjutnya terkait topik kebingungan konsumen. Kata kunci: kebingungan konsumen, pengambilan keputusan konsumen, perdagangan daring, industri kosmetik dan perawatan pribadi. VI This page was intentionally left blank. VII APPROVAL PAGE CONSUMER CONFUSION AND ITS IMPACT ON DECISION MAKING AMONG FEMALE CONSUMERS IN INDONESIA’S ONLINE COSMETICS AND PERSONAL CARE INDUSTRY By Marshanda Tristandinata ID No: 19021159 A Final Project in Partial Fulfillment of the Requirement for the Degree of Bachelor of Management Undergraduate Program of Management Study School of Business and Management Institut Teknologi Bandung July 24, 2024 Approved By ___________________________ Nurrani Kusumawati, S.E., M.S.M..