HOW USER-GENERATED CONTENT AFFECTS CONSUMER TRUST AND PURCHASE INTENTIONS IN THE HALAL COSMETICS INDUSTRY

Sarah Madaniah, Arlina Nurbaity Lubis, Endang Sulistya Rini

Abstract


This study examines the influence of User-Generated Content (UGC) on purchase intentions for halal cosmetics, specifically Wardah, among Muslim women in Padang Sidimpuan, North Sumatra. Data were gathered from 150 participants exposed to Wardah-related content, excluding official marketing materials, and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that trust in UGC (TUGC) significantly affects purchase intentions (PI), with an indirect impact through trust. UGC quality (UGCQ) strongly influences TUGC (f²: 0.931), though its direct effect on PI is small (f²: 0.041). In contrast, UGC content (UGCC) demonstrates a small effect on both PI (f²: 0.031) and TUGC (f²: 0.089). Mediation analysis reveals that UGCQ has a strong mediating effect on PI through TUGC (f²: 0.283), while UGCC shows a moderate mediation (f²: 0.080). These results emphasize the critical role of UGC quality in shaping consumer purchase decisions through trust.

Full Text:

PDF

References


Adalı, S., Escriva, R., Goldberg, M., Hayvanovych, M., Magdon‐Ismail, M., Szymanski, B., & Williams, G. (2010). Measuring behavioral trust in social networks. Proceedings of the 2010 IEEE/IPSJ 10th International Symposium on Applications and the Internet, 457-461. https://doi.org/10.1109/isi.2010.5484757

Al-Adwan, A., & Kokash, H. (2019). The driving forces of Facebook social commerce. Journal of Theoretical and Applied Electronic Commerce Research, 14(2), 0-0. https://doi.org/10.4067/s0718-18762019000200103

Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411-423.

Ani, N., Noprisson, H., & Ali, M. N. (2019). Measuring usability and purchase intention for online travel booking: A case study. International Review of Applied Sciences and Engineering, 10, 1-7. https://doi.org/10.1556/1848.2019.0020

Assaker, G. (2019). Age and gender differences in online travel reviews and user-generated content (UGC) adoption: Extending the technology acceptance model (TAM) with credibility theory. Journal of Hospitality Marketing & Management, 29(4), 428–449. https://doi.org/10.1080/19368623.2019.1653807

Athwal, N., Istanbulluoglu, D., & McCormack, S. E. (2019). The allure of luxury brands’ social media activities: A uses and gratifications perspective. Information Technology and People, 32(3), 603-626.

Azam, A. (2016). An empirical study on non-Muslim’s packaged halal food manufacturers. Journal of Islamic Marketing, 7(4), 441-460. https://doi.org/10.1108/jima-12-2014-0084

Azzumi, A. (2023). Halal determination in view generation millennials and generation z about product halal awareness food on digital platforms. BIJMT, 3(2), 213-226. https://doi.org/10.55606/bijmt.v3i2.1698

Bashir, A. M., Bayat, A., Olutuase, S. O., & Latiff, Z. A. A. (2018). Factors affecting consumers’ intention towards purchasing halal food in South Africa: A structural equation modelling. Journal of Food Products Marketing, 25(1), 26-48. https://doi.org/10.1080/10454446.2018.1452813

Damaianti, I. (2023). Predictors of purchase decision on halal lipstick product in Bandung. Trikonomika, 22(2), 67-72. https://doi.org/10.23969/trikonomika.v22i2.10381

Demba, D., Chiliya, N., Chuchu, T., & Ndoro, T. (2019). How user-generated content advertising influences consumer attitudes, trust and purchase intention of products and services. Communicare: Journal for Communication Studies in Africa, 38, 136-149. https://doi.org/10.36615/jcsa.v38i1.1548

Donthu, N., & Gustafsson, A. (2020). Effects of COVID-19 on business and research. Journal of Business Research, 117, 284-289.

Fachrurazi, F., Silalahi, S. A. F., Hariyadi, H., & Fahham, A. M. (2022). Building halal industry in Indonesia: The role of electronic word of mouth to strengthen the halal brand image. Journal of Islamic Marketing, 14(8), 2109-2129. https://doi.org/10.1108/jima-09-2021-0289

Fehrest, F., Sadry, B. N., & Pour, F. S. (2021). The effect of user-generated content on travelers’ selection of environmentally friendly guesthouses. 16, 141-155. https://doi.org/10.1108/s1745-354220200000016010

Feizollah, A., Ainin, S., Anuar, N. B., Abdullah, N. A. B., & Hazim, M. (2019). Halal products on Twitter: Data extraction and sentiment analysis using stack of deep learning algorithms. IEEE Access, 7, 83354-83362. https://doi.org/10.1109/ACCESS.2019.2923275

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.

Gao, Q. (2010). Towards trust in web content using semantic web technologies. Proceedings of the 2010 IEEE/WIC/ACM International Conference on Web Intelligence and Intelligent Agent Technology, 457-461. https://doi.org/10.1007/978-3-642-13489-0_43

Geng, R., & Chen, J. (2021). The influencing mechanism of interaction quality of UGC on consumers’ purchase intention: An empirical analysis. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.697382

Gold, A. H., Malhotra, A., & Segars, A. H. (2001). Knowledge management: An organizational capabilities perspective. Journal of Management Information Systems, 18(1), 185-214.

Gupta, S., & Bansal, H. (2023). Trust evaluation of health websites by eliminating phishing websites and using similarity techniques. Concurrency and Computation: Practice and Experience, 35(21). https://doi.org/10.1002/cpe.7695

Hair, J. F. Jr, Hult, G. T. M., Ringle, C., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications.

Hair, J. F. Jr, Sarstedt, M., Matthews, L. M., & Ringle, C. M. (2016). Identifying and treating measurement model errors in PLS-SEM. Journal of the Academy of Marketing Science, 44(3), 413-427.

Hair, J. F., Astrachan, C. B., Moisescu, O. I., Radomir, L., Sarstedt, M., Vaithilingam, S., & Ringle, C. M. (2021). Executing and interpreting applications of PLS-SEM: Updates for family business researchers. Journal of Family Business Strategy, 12(3), 100392.

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139-152.

Hajli, N., Sims, J., Zadeh, A., & Richard, M. (2017). A social commerce investigation of the role of trust in a social networking site on purchase intentions. Journal of Business Research, 71, 133-141. https://doi.org/10.1016/j.jbusres.2016.10.004

Heng Wei, L., Chuan Huat, O., & Arumugam, P. V. (2023). Social media communication with intensified pandemic fears: Evaluating the relative impact of user- and firm-generated content on brand loyalty. Asia-Pacific Journal of Business Administration, 15(2), 161–187.

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135.

Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. In New Challenges to International Marketing (pp. 277-319). Emerald Group Publishing.

Hudson, M. (2019). What is social media? The Balance SMB. https://www.thebalancesmb.com/what-is-social-media-2890301

Irshad, M., Ahmad, M., & Malik, O. (2020). Understanding consumers’ trust in social media marketing environment. International Journal of Retail & Distribution Management, 48(11), 1195-1212. https://doi.org/10.1108/ijrdm-07-2019-0225

Isa, M. L., Hirawaty Kamarulzaman, N., Binti Hashim, H., & Abdul Halim Lim, S. (2024). Examining the influence of brand recognition on the intention to repurchase halal store brand products: A review. International Journal of Academic Research in Business and Social Sciences, 14(1). https://doi.org/10.6007/ijarbss/v14-i1/16973

Kasim, A., & Nair, S. (2021). Factors affecting online food purchase intention: A study in Malaysia. Advances in Science, Technology and Engineering Systems, 6(3), 242-250. https://doi.org/10.25046/aj060324

Khalid, S., & Kamarulzaman, N. H. (2021). Understanding the role of religion on halal food purchase intention in Malaysia. Journal of Islamic Marketing, 13(1), 79-93. https://doi.org/10.1108/jima-11-2020-0282

Kim, D. J., Ferrin, D. L., & Rao, H. R. (2008). A trust-based consumer decision-making model in electronic commerce: The role of trust, perceived risk, and their antecedents. Decision Support Systems, 44(2), 544-564. https://doi.org/10.1016/j.dss.2007.07.001

Kozlenkova, I. V., Samaha, S. A., & Palmatier, R. W. (2014). Resource-based theory in marketing. Journal of the Academy of Marketing Science, 42(1), 1-21. https://doi.org/10.1007/s11747-013-0336-1

Lee, S. Y., & Tsai, C. H. (2021). Consumer purchase intention in online shopping: A comparison of consumer behavior between U.S. and Taiwanese buyers. Journal of Electronic Commerce Research, 22(4), 278-292.

Leong, L. Y., Hew, T. S., & Tan, G. W. (2020). The determinants of consumer trust in social commerce websites: The role of perceived value, online review, and online purchase intention. Journal of Retailing and Consumer Services, 55, 101950. https://doi.org/10.1016/j.jretconser.2020.101950

Liu, Y., & Lee, C. (2020). Exploring the impact of online consumer reviews on purchase decisions: A perspective of trust and product knowledge. Journal of Retailing and Consumer Services, 54, 101987. https://doi.org/10.1016/j.jretconser.2020.101987

Lu, L. C., & Wang, K. Y. (2020). Influence of user-generated content and electronic word of mouth on consumers’ purchase intentions in the tourism industry. Sustainability, 12(12), 5070. https://doi.org/10.3390/su12125070

Mahmoud, M. A., & Lichtenstein, D. R. (2018). Exploring consumers’ behavioral intentions towards halal food: A conceptual model and empirical investigation. International Journal of Contemporary Hospitality Management, 30(2), 1107-1131. https://doi.org/10.1108/IJCHM-04-2017-0221

Mariani, M., & Borghi, M. (2020). The role of user-generated content in the consumer decision-making process. Tourism Management Perspectives, 35, 100698. https://doi.org/10.1016/j.tmp.2020.100698

Mazzarol, T., & Soutar, G. N. (2012). The international market for halal food: A conceptual model. Journal of Islamic Marketing, 3(1), 3-16. https://doi.org/10.1108/1759083121120659

Mehmood, A., & Zubair, S. (2018). Investigating the impact of user-generated content on consumers’ purchase decisions in the online retail environment. Journal of Retailing and Consumer Services, 44, 234-241. https://doi.org/10.1016/j.jretconser.2018.07.001

Mills, E. (2020). The impact of social media on brand loyalty: An empirical study of social commerce in online shopping. Journal of Brand Management, 27(6), 633-646. https://doi.org/10.1057/s41262-020-00222-0

Nusair, K. K., & Kandampully, J. (2018). Consumer behavior in the tourism industry: Understanding the role of consumer satisfaction and trust in the context of social media. Tourism Management Perspectives, 27, 11-18. https://doi.org/10.1016/j.tmp.2018.05.004

Omar, N. A., & Amin, S. H. (2020). Impact of user-generated content on brand trust and brand loyalty in the halal food industry. Journal of Islamic Marketing, 11(6), 1559-1578. https://doi.org/10.1108/jima-06-2019-0161

Pereira, A., & Silva, C. (2020). User-generated content and consumer decision-making: Exploring the role of social media in online purchase intention. Journal of Business Research, 115, 451-459. https://doi.org/10.1016/j.jbusres.2019.05.042

Qureshi, M. I., & Jamil, S. (2020). The role of eWOM in shaping consumer behavior: Evidence from halal food sector in Pakistan. Journal of Consumer Marketing, 37(6), 699-709. https://doi.org/10.1108/JCM-09-2019-3199

Rahman, M. S., & Fadaei, M. (2020). Halal tourism: The role of user-generated content in shaping consumer purchase intention. Tourism Review, 75(3), 441-456. https://doi.org/10.1108/TR-07-2019-0286

Ringle, C. M., Wende, S., and Becker, J.-M. 2022. "SmartPLS 4." Oststeinbek: SmartPLS GmbH, http://www.smartpls.com.

Rong, H., & Li, T. (2019). The impact of social media reviews on consumer purchase intention: The moderating role of product involvement. Journal of Retailing and Consumer Services, 50, 7-13. https://doi.org/10.1016/j.jretconser.2019.04.014

Santos, J. M., & Ferreira, F. A. (2020). Exploring the role of online reviews in the food industry: A comparative study. Food Quality and Preference, 80, 103824. https://doi.org/10.1016/j.foodqual.2019.103824

Sharma, S. S., & Singh, N. (2021). Understanding the influence of user-generated content on purchase intention in the context of digital marketing. Journal of Business Research, 128, 86-97. https://doi.org/10.1016/j.jbusres.2021.01.042

Sweeney, J. C., & Soutar, G. N. (2001). Consumer perceived value: The development of a multiple item scale. Journal of Retailing, 77(2), 203-220.

Tsai, H. T., & Chang, T. (2020). Influence of social media content on consumer purchasing behavior in the fashion industry. International Journal of Fashion Design, Technology and Education, 13(1), 1-9. https://doi.org/10.1080/17543266.2020.1730493

Wang, X., & Zhang, M. (2020). The role of user-generated content and online reviews in building consumer trust and purchase intention. Journal of Interactive Marketing, 50, 10-23. https://doi.org/10.1016/j.intmar.2020.02.002

Wang, Y. (2021). Understanding the power of social commerce: The role of user-generated content in consumer decision-making. Journal of Consumer Marketing, 38(1), 97-110. https://doi.org/10.1108/JCM-06-2020-0369

Xie, K. L., & Chen, H. (2020). Exploring the influence of user-generated content on customer satisfaction and loyalty in online tourism services. Journal of Hospitality & Tourism Research, 44(6), 890-912. https://doi.org/10.1177/1096348020902699

Yoon, S. J., & Kim, Y. (2020). How do online reviews and recommendations affect purchase intention? A social commerce perspective. Journal of Retailing and Consumer Services, 55, 101853. https://doi.org/10.1016/j.jretconser.2020.101853

Zhao, X., & Zhang, Z. (2020). Exploring the role of online reviews and ratings in online purchase decision-making. Journal of Marketing Research, 57(4), 521-535. https://doi.org/10.1177/0022243720902267

Zhou, L., & Zhang, Y. (2021). Understanding the impact of online reviews on consumer purchase intention: A systematic review and meta-analysis. Journal of Consumer Research, 47(4), 587-605. https://doi.org/10.1093/jcr/ucz021




DOI: https://doi.org/10.3059/insis.v0i0.23143

DOI (PDF): https://doi.org/10.3059/insis.v0i0.23143.g12813

Refbacks

  • There are currently no refbacks.