The Influence of Lifestyle, Attitude of Consumer, and Marketing Mix on Purchase Decision of Eco-Label Cosmetic Products in Indonesia and Malaysia.

Abstract

The cosmetics industry has developed rapidly in both developing and developed countries. Cosmetic products in the Asian market are one of the fastest growing markets. The Asia Pacific market value has increased to more than USD 70 billion, which is the second highest market after the Western European market. The export value of cosmetic products in Indonesia reaches USD 516.99 million. While in Malaysia, the value is around USD 407 million for cosmetic products. The potential of this domestic market is due to the increasing number of young population (millennial generation) and the strengthening of society trend to use natural products which are eco-labeled. This study aimed to: (1) identify consumers characteristics of eco-label cosmetic products users in Indonesia and Malaysia; (2) analyze the relationship between the characteristics of eco-label cosmetic products users in Indonesia and Malaysia with their lifestyle; (3) analyze the lifestyle, consumer attitudes, and marketing mix influence on purchase decision for eco-label cosmetic products in Indonesia and Malaysia; and (4) analyze the most dominant factors that influence the purchase decision of ecolabel cosmetic products in Indonesia and Malaysia. This study design was survey methods. The study was conducted in Jakarta (Indonesia) and Kuala Lumpur (Malaysia) from May until July 2018. The number of respondents were 390 people. The sampling technique in this study was based on a non-probability sampling method which is convenience sampling. The data were analyzed using descriptive and inferential statistical analysis, Structural Equation Modeling (SEM), and with alternative method using Partial Least Square (PLS). The results showed that the characteristics of consumers in Indonesia and Malaysia were majority consisted of productive age adults and had enough income to buy eco-label cosmetic products. Based on inferential statistical analysis, there was relation between consumer characteristics and lifestyles. Based on VALS (Value and Lifestyle) analysis, consumer lifestyles in Indonesia were divided into five dimensions which are achievers, believers, experiencers, makers, and strivers. While, the consumer lifestyles in Malaysia were divided into six dimensions consisted of achievers, believers, fullfields, experiencers, makers, and strivers. Based on SEM-PLS analysis, it is found that lifestyle had a positive and significant influence on purchase decision in Indonesia and Malaysia. The consumer attitudes did not influence purchase decision in Indonesia. In opposite, in Malaysia the consumer attitudes variable had a significant influence on the purchase decision. In addition, the marketing mix had a significant effect on purchase decision in both Indonesia and Malaysia. The marketing mix was the dominant factor that influenced the purchase decision of eco-label cosmetic products.