CUSTOMERS’ REPURCHASE INTENTION OF SOUTH KOREAN BEAUTY PRODUCTS

Abstract

The aim of this research is to examine the key factors that influence Indonesian customers to repurchase South Korean beauty products. This study intents to verify the relationships between four variables namely perceived price, country of origin, customer satisfaction, and repurchase intention. The researcher developed a framework model in which perceived price and country of origin act as independent variables, repurchase intention acts as dependent variable, and customer satisfaction acts as mediating variable. This study applies structural equation modelling (SEM) by using software AMOS version 24 and software SPSS version 16 in order to examine the proposed model, examine the hypotheses, and determine the relationships between the four marketing variables. In total, there were 166 valid respondents that were gathered through primary data collection method analysed in this study. Results show that perceived price significantly influences customer satisfaction, country of origin significantly influences perceived price and customer satisfaction, and customer satisfaction significantly influences repurchase intention. However, the results also show that perceived price does not influence repurchase intention and country of origin does not influence repurchase intention. Not many studies examined a general construct of repurchase intention related to beauty products. This study helps to recognise what factors become basic consideration for Indonesian consumers in repurchasing South Korean beauty products. This study also helps marketing managers in beauty industry in Indonesia to know more about Indonesian consumers preferences when it comes to beauty products.