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

In: Proceedings of the 3rd International Conference on Business and Engineering Management (IConBEM 2022)

Author

Listed:
  • 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)

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.

Suggested Citation

  • Ika Nurkasanah & Nita Ambarwati & Mudjahidin & Yosua Gibeon Leonardo & Yehezkiel Novianto Aryasena, 2023. "Understanding the Influence of Product Recommendation and User Generated Content on Customer Loyalty of Beauty-Techs in Indonesia," Advances in Economics, Business and Management Research, in: Gita Widi Bhawika & Gogor Arif Handiwibowo & Ninditya Nareswari & Mushonnifun Faiz Sugihartanto (ed.), Proceedings of the 3rd International Conference on Business and Engineering Management (IConBEM 2022), pages 3-26, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-216-3_2
    DOI: 10.2991/978-94-6463-216-3_2
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