Study on Etude House Consumers in Surabaya)

Jurnal GEMA AKTUALITA, Vol. 5 No. 1, Juni 2016

Factors Influencing Effective Decision Making of Consumers in Etude House Surabaya (Study on Etude House Consumers in Surabaya)

Diana Puspa Dewi Royanto, Ronald Program Studi Manajemen Universtitas Pelita Harapan Surabaya Surabaya, Indonesia dianaroyanto@gmail,com

ABSTRACT

As beauty becomes an important aspect and the industry is growing, Korean cosmetics are trending all over the world with their advanced and developed technology and ingredients. In Southeast Asia, particularly Indonesia, Korean cosmetics is becoming the latest beauty trend that people are adding to their beauty routines. Therefore, the researcher has planned to analyze the factors influencing Effective Decision Making of Consumers in Etude House Surabaya. One hundred respondents were given a questionnaire using a six point Likert Scale. Eleven hypotheses were analyzed using the multiple regression models. The result of this study showed that independent variables Social Structure, Opinion Leaders towards Personal Information Source, Perceived Risk, and Word-of-Mouth as intervening variables to Effective Decision Making had a positive and significant effect whereas independent variable Communication Medium towards the intervening variables was negative and insignificant. The recommendation for future researchers is to add or change the variables in this study to see from different perspectives and gain new insight. For Etude House, this study can be used for evaluation purposes to further improve their marketing strategies and learn more about their consumer behavior.

Keywords: Beauty industry, Effective decision making, Consumer Behavior, Etude House

A. INTRODUCTION

For many years, beauty has been an quickly become the desired style around the world. important part for women. To appear beautiful, The Internet had made it easier for tips, tricks, women choose beauty products to accentuate their reviews, recommendations, and even warnings to features and use skincare for their face. This has circulate at light speed among the world’s connected made the beauty industry a large industry with vast consumers. The emerging markets may be changing growth over the years because beauty has become an their routines so often because they are inspired by important part of their daily lives. Roughly about the globally dynamic world of beauty. 4.5% growth on average every year, it has been able Since the era of K-Pop and K-Drama, to achieve stable and continuous growth despite Korea’s pop culture are quickly becoming a craze unfavorable economic conditions such as recession for millions of people. The term used by Koreans for (Lopaciuk & Loboda, 2013). With a vast industry this phenomenon is called “Hallyu”. Hallyu refers to filled with various brands, the beauty industry the Korean Wave of entertainment that has affected provides consumers with a large amount of choices almost all the countries in the region even beyond to choose from. People have different preferences that. However, Korean expanding is far beyond only and conditions that brands are constantly catering to music and movie. Another interest they are in order to feed the need of consumers (Loden, expanding in is in the fashion and lifestyle industry 2000). particularly in cosmetics. The Korean cosmetic The growth of the beauty industry has industry is slowly dominating the domestic market become dynamic and innovative due to globalization upfront than foreign brands; with an explosion of and constantly developing advanced technology. popularity overseas (Lizzie, 2013). Easy air travel has given rise to a global fashion According to a report by the Korea industry, and looks conceived of in one country can Customs Service in December 2013 about current 14

Jurnal GEMA AKTUALITA, Vol. 5 No. 1, Juni 2016 export trends of major commodities in the midst of It can indicate whether a marketing plan has been the Korean wave, cosmetics exports in Korea has successful or not. Hence, marketers are much shown significant increase, enlisting them at the interested in the consumer’s decision making center of the Korean wave. Particularly, skincare process. Consumer’s decision making process is exports also showed an explosive growth with an start with seeking have identified a product need and impressive percentage of 1500% over the past 15 are seeking information that will enable them to years (1998-2012). Which accounted 61% of make better decisions and increase the chance of commodity exports exemplify the popularity and satisfaction with product purchase outcome. quality of skincare and cosmetic products of Korea. Consumers do this by conducting their own research Cosmetic brands of Korea are growing at a rapid through personal information source (Shaver 2007). pace in the global market with interest in Korean Personal information source includes an culture credits to innovative products, beauty trends, individual’s personal effort to collect information for quality and affordability which catch the attention of the selection of the products and services (Kinley, global customers (Seung-hwan, 2014), one of them Conrad, & Brown, 2008). The need of consumers to is Etude House. fulfill their information needs relating to product Etude Corporation is a subsidiary of the knowledge is the main reason for consumer Amore Pacific Group, which is one of the biggest information search (Grant et al, 2007). Personal cosmetic companies in Korea. Amore Pacific has information source may come from social structure, claimed to reach 15 trillion won in sales and its aim that is based on information received from friends, is to become the number one cosmetics company in family, and others in customers society includes Asia also to become one of the world’s top five customers ability to share personal experiences, brands by 2020. According to Women’s Wear Daily, preferences of friends, peers, and family have a the company ranked as the world’s 17th biggest significant influence in a consumer’s decision cosmetics company in sales. Amore Pacific has making process. Inequality within the sociology operated over 2,900 stores of their five brands literature is assessed through stratification and has (Sulhwasoo, Laneige, Mamonde, Innisfree, and historically concentrated on castes, class, status, Etude House) since entering the market in 1992 gender and perhaps age (Lawson & Todd, 2002). (Lee, 2014). Other sources of personal information source are Etude offers a variety of eye shadows, eye communication medium and opinion leader. mascaras, eye liners, eye brow products, and eye The raise of Social Media as one of the primers; lipsticks, lip glosses, lip tints, lip care communication medium has affected both products, etc; face products such as consumers and companies in the way they BB/CC/foundations, powder/pacts, primers/bases, communicate. Also, Social Media influences the and cheek highlighter products; nail products, way consumers behave during the different stages of skincare products such as masks, sun care products, their purchase decision-making processes. Wheat cleaning products and more. They offer products and Dodd (2009) quoted Carson, the president of through retail stores in Korea and internationally. Online International Nielsen, ‘the explosion in They also sell their products online. Prior to this, Consumer Generated Media over the last couple of Etude Corporation was known as Oscar Corporation years means consumers' reliance on word-of-mouth and changed their name to Etude in 1997. in the decision-making process, either from people These days, for a consumer there is they know or online consumers they do not, has possibly more than one option or alternatives increased significantly.’ available for making decision. This reflects the On the other hand, an opinion leader is one complexity in the consumer decision making. With who leads the opinion of other people and gives the passage of time, the effective decision making is opinions to other individuals (Richey, 2009). becoming difficult for the consumers because of the Opinion leaders tend to have convincing many alternatives and options to choose from. personalities to convince others, thus they have more Therefore, the marketers are in the continuous knowledge and awareness and influential roles in the search to investigate the factors that influence community ( Kautz and Larsen, 2000). Katz and consumer to make their purchase decision Lazarsfeld (1955) suggest that opinion leaders act as (Schiffman & Kanuk, 2010). mediators between mass media and mass audiences. Consumer behavior is a complex process Berelson and Steiner (1964) describe opinion leaders involving the activities people engage in when as people who are trusted and informed who exist in seeking for, choosing, buying, using, evaluating and virtually all primary groups. Opinion leaders are disposing of products and services with the goal of models for opinions in their group who listen and satisfying needs, wants and desires (Belch & Belch, read for information from the media and then pass 2004). The consumer’s decision to purchase or not them on as word-of-mouth to influence their circle to purchase a product or service is an important of relatives, friends, and acquaintances. factor for the marketers (Kotler & Armstrong, 2012).

Jurnal GEMA AKTUALITA, Vol. 5 No. 1, Juni 2016

Word-of-mouth plays a central role on its appearance. The US FDC Act defines cosmetics effective decision making. Word-of-mouth is well as articles intended to be rubbed, poured, sprinkled, known in the marketing area and this for decades. or sprayed on, introduced into, or applied to the But today, word-of-mouth appears even more human body for cleansing, beautifying, promoting important than before in the influence of consumers’ attractiveness, or altering the appearance, but soaps purchasing decision-making process (Brown & are not included. Wu Chen (2011) states that Hayes, 2008). There is a wide body of literature of additionally, according to the regulation of marketing, which addressed the word of mouth as an commodity tax, cosmetic is something to improve effective marketing tool. (Sernovitz, et al (2009) the skin quality, to enhance the look and to please Pointed out that people love to talk about products people’s smell. they have bought, and services they have used, also Cosmetics matter because they are a means they talk about the producer of these products, and of self-investigation (Beausolil, 1994). A number of the provider of these services. Also some people feel studies have addressed the impact of the proud, because he bought a particular product, representation of attractive women on female however, some of them provide advice to others not consumers. The desire to improve one’s physical to think about buying a product. Marketers may attractiveness seems to be an essential characteristic spend millions of dollars on advertising campaigns of most individuals (Adams, 1977; Etcoff, 1999; but often consumer make their decision on the bases Winston, 2003). Cosmetics are traditionally been of word-of-mouth from their own trustworthy source confined to female consumers, and have been (Sernovitz, 2012). traditionally used by women to control their physical The last factor that should be considered appearance and, presumably, their physical when discussing effective decision making of attractiveness. Although, the literature is by no cosmetics is perceived risk. Perceived risk has been means voluminous, several researchers have defined as negative or harmful consequences that examined the psychological correlates and can occur from the purchase of a product or services consequences of cosmetic use (Cash & Cash, 1982; (Bauer, 1967). Research has followed various Miller & Cox, 1982; Graham & Kligman, 1985; features such as understanding how people make Cash et al., 1985; Cox & Glick, 1986; Etcoff, 1999). judgments concerning the risk of different situations The body image is an important component (Slovic, 1987). This is in addition to problem of the self-concept and has stimulated the demand of solving research to minimize or manage the risks certain products and services, such as dietary, involved in a judgment or decision (Hastie, 2001). slimming, exercise and cosmetic items (Sturrock & Interest in risk perception and decision making is Pioch, 1998). Featherstone (1991) also noticed that also a stimulus for research on expert decision the self-preservation of the body pushes individuals making, due to the differences between how experts to adopt instrumental strategies to combat its in a particular field make judgments in comparison deterioration and combine them with the notion that to non-experts. The judgment of risk by non-experts the body is a vehicle of pleasure and self-expression. is given the label of risk perception rather than risk In western cultures, one of the commonly assessment (Slovic, 1987). recognized reasons women uses cosmetics is to Based on this phenomena and theory, this improve their physical attractiveness. For example, research is aimed to gain insight on social structure, Cash and Cash (1982) found women to express a social media, opinion leaders, personal information more positive body image and self-image when source, perceived risk, word of mouth on effective wearing makeup compared to when not wearing decision making. This research is aimed to discover makeup (Cash & Cash, 1982). the importance of effective decision making in consumer behavior. The topic of this study will Social Structure contribute to the author by gaining information and Social class refers to groups of people new knowledge about consumer behavior and who are similar in their behavior based upon their marketing strategies and how the variables can economic position in the market place (Engel, influence it. The contribution of research for the Blackwell & Miniard, 1990). Social Classes have brand Etude House is that it may help them with several characteristics (Gherasim, 2013). The same their marketing strategies and to gain more social class individuals have similar behaviors, knowledge about their consumers. including the preferences for clothing, housing, furniture, leisure services, mass media etc. Depending on the social class to which they belong B. LITERATURE REVIEW to, people lower or higher positions in society. A social class that a person belongs to is determined by The Oxford Dictionary (2015) defines several variables (such as occupation, income, cosmetics as a preparation applied to the body wealth, education, etc.). especially to the face to improve or serve to improve

Jurnal GEMA AKTUALITA, Vol. 5 No. 1, Juni 2016

People can move from one class to another. support to reinforce that choice once it has been In some traditional societies a social class is very made. difficult to change, but in some societies, any man or woman can become prime minister (Solomon et al., 2006). People who ‘cross’ social class barriers Personal Information Source usually begin to do this when they are young. Personal information source includes an Income and education allows younger people to individual’s personal effort to collect information for adopt lifestyles that are different to those of their the selection of the products and services (Kinley, parents (Lancaster & Reynolds, 2005). Conrad, & Brown, 2008). Consumers who are conscious about their efforts to obtain information Perceived Risk about durable goods are usually associated with high There are different types of perceived risk financial or social risk. Consumers that engage in such as financial, social, psychological and time. pre-purchase information seeking have identified a Similarly, Hablemitoglu and Yildirim, (2008) argued product need and are seeking information that will that decision-making is influenced by the descriptive enable them to make better decisions and increase variables including gender, family, location etc. the chance of satisfaction with product purchase Murray (1991) suggested that word-of-mouth gives outcome (Shaver 2007). the most efficient information for reducing risk in Information search can be influenced by purchases of a service. environmental factors or individual differences. Perceived risk is the likelihood of Environmental factors are: culture, social class, uncertainty and unlikable consequences headed for a personal influences, family and the situation. purchase. To avert is human nature and to find either Individual differences are: consumers’ resources to both perceived risk and perceived trust perceived spare for search, motivation to search, prior risk plays an important role in consumer are knowledge, attitudes, personality values and contributors of the purchase decision of the purchase lifestyles (Blackwell et al., 2001). Similar to decision. Uncertainty and consequences consumer or Newman’s (1977) four reasons, Shaver (2007) stated not are two components of perceived risk and five the factors affecting information search as “amount possible losses involved: financial loss, physical of information gathered varies with individual loss, time loss. Consumers behave differently in consumers and is affected with time availability, accordance to the degree influence consumer past experiences, pre-existing knowledge, decision about the particular of trust. Cheung and information accessibility, financial status and similar Lee (2001), Kaibir and Nart (2009), Ferrin, and Rao variables”. (2008) imply that trust is the predecessor to know The relationship between internal and the factors contribute to construct the perceived risk external search is also monotonous because external and there exists a negative relationship perceived search that is accepted and passed through the risk and perceived trust between these terms. retention steps will be added to memory for future research (Peterson & Merino 2003). Getting information from memory affects the attention, Opinion Leaders comprehension and acceptance steps of information An opinion leader is one who leads the processing. Secondly search can be external where opinion of other people and gives opinions to other consumers search for or are exposed to external individuals (Richey, 2009). Opinion leaders tend to information. External information can be marketer have convincing personalities to convince others, dominated or non-marketer dominated (Blackwell et thus they have more knowledge and awareness and al, 2001). Marketer dominated information sources influential roles in the community (Kautz & Larsen, are controlled by the marketers designed to convince 2000). Opinion leaders have different attributes but consumers to use their products such as what they have in common is channeling of advertisements and, salespersons. On the other hand, impersonal content of mass communications into a non-marketer dominated information sources are personal stream of influence (Berelson & Steiner, free of influence from marketers; these can include 1964). family, friends, and opinion leaders. Burt (1999) states that opinion leaders are more precisely opinion agents who carry information across the social boundaries between Communication Medium groups. Katz and Lazarsfeld (1955) suggested Technological development plays an opinion leaders to act as mediators between mass important part in this increased usage of Social media and mass audience. Glock and Nicosia (1963) Media. Nowadays with smartphones, consumers can pointed out that opinion leaders act not only as connect and interact together from everywhere by channels of information but also as a source of social simply using their mobile phones. According to pressure toward a particular choice, and of social Leung (2012), Twitter counted an increase of 182 %

Jurnal GEMA AKTUALITA, Vol. 5 No. 1, Juni 2016 in number of mobile users comparing to previous the right choices or agreements. Drucker (1967) years, when YouTube explained that the traffic from states in his research that unless a decision has mobile devices tripled in 2011. ‘deteriorated into work’, it is not a decision but it is The marketing area has thus evolved from a at best a good intention’ Decision making is the time where marketers had the power of influence to practice of choosing what to do by considering the today where consumers have a greater power of possible consequences of different choices influence on their peers instead (Jaffe, 2010). (Brockman & Russell, 2009; Walker, 2001). Indeed, Social Media enables consumers to share Effective decision making is defined as the contents and ideas together, write recommendations, process through which alternatives are selected and reviews and opinions about companies’ performance then managed through implementation to achieve and to tell, to a wider audience than before, about business objectives. ‘Effective decisions result from their own positive or negative experience with them a systematic process, with clearly defined elements, (Brown & Hayes, 2008 that is handled in a distinct sequence of steps’ The rise of Social Media usage by both (Drucker, 1967). consumers and companies seem to affect consumer behavior. Also, Social Media influences the way consumers behave during the different stages of their The Influence of Social Structure on Personal purchase decision-making processes. Wheat and Information Source Dodd (2009) quoted Carson, the president of Online Social class has a significant impact on International Nielsen said that the explosion in consumer behavior and this impact may start during Consumer Generated Media over the last couple of childhood. Some researches debate that children or years means consumers' reliance on word-of-mouth young people start learning behaviors and obtain the in the decision-making process, either from people habits of lifestyle from their family based on social they know or online consumers they do not, has class of family. Riesman, Glaser, and Denny (1950) increased significantly. argued that in the more affluent families, children Today, online communities have more and acquire some understanding of the purchasing more influence on consumers’ purchasing decision- processes at a relatively early age. Previous research making. Parker (2011) stated that when people are in findings appear to support this line of reasoning, search of the buying cycle, they have access to a showing that young people from upper wider audience of current past, or prospective socioeconomic backgrounds have greater awareness customers worldwide that they can consult with of, and preference for, commercial stimuli in their before making their decision. consumer environment. Specifically, some research suggests that young people from upper social classes Word-of-Mouth may have stronger brand preferences and are more Word of mouth is the way of sharing ideas, likely to seek information prior to decision making beliefs and experiences among each other by than their lower class counterparts (Moschis & sharing; truthful ideas also creates word of mouth Moore, 1979) Social class influences where and how (Balter, 2004). Glenn and Fudenber (1995) studied people feel they should shop. Upper middle for individual how word-of-mouth communication consumers feel more confident in their shopping summarizes information. ability. They will venture to new places to shop and There is a large variety of literature of will range throughout a store to find what they want marketing, which mentions the word-of-mouth as an (Engel, Blackwell & Miniard, 1990). effective marketing tool. Sernovitz, et al (2009) Thus, the hypothesis suggested is: mentioned that people love to talk about products H1: Social structure has a significant influence on they have bought, and services they have used, about personal information source the producer of these products, and the provider of these services. Also some people feel proud, because The Influence of Communication Medium on they bought a particular product, however, some of Personal Information Source them provide advice to other people to not think A computer with an internet connection is a about buying a product. range of interactions in a variety of media and a gateway to an array of social spaces for work and Effective Decision Making play. Social networking sites like Facebook and The Merriam Webster dictionary (2015) MySpace have become online meeting spaces where defines decision making as an act of making users— members, residents, or players—can interact decisions especially with a group of people. and express themselves. They offer a way to keep in According to Harvey (2007), decision making varies touch with existing communities that users belong to from strategic decisions through managerial offline, such as social and professional groups. Sites decisions and routine operational decisions. like YouTube and Flickr represent another forum for However, decision making is not just about selecting online communication that is centered on sharing, 18

Jurnal GEMA AKTUALITA, Vol. 5 No. 1, Juni 2016 preference, and popular culture. Visitors can browse interactions, provided through social media, help movies (in the case of YouTube) or photos (in the increase the level of trust and reduce perceived risk. case of Flickr), express personal preferences, add Thus, the hypothesis suggested is: commentary, and upload their own creative work. H4: Communication medium has a significant One of the reasons people prefer such form of media influence on perceived risk is because of the interactions they can have there, both social and professional. Whether it is as simple as checking back to see what other comments have The Influence of Opinion Leaders on Perceived been added to yours or as involved as attending a Risk workshop or presentation in a virtual world, the For the financial aspect of risk, an nature of the attraction lies in the connections investment considered "risky" by a consumer is between people that these online spaces afford deemed so only to the extent that such risk is (Barurah, 2012). perceived. A consumer may deem an item is too Thus, the hypothesis suggested is: pricey in contrast with the opinion of an "expert" H2: Communication medium has a significant who claims that the cost really is acceptable. They influence on personal information source suggest that some people have a higher level of involvement in a consumption area than other people The Influence of Opinion Leaders on Personal do and are therefore more eager to express their Information Source opinions to others. Because opinion leaders do not In a society, opinion leaders play an represent commercial sources, their views are given important role in advice networks and communities more credibility by consumers than advertising does of practice (Cross et al., 2006). In e-commerce (Rogers & Cartano, 1962; Rogers, 1995). Those who settings, opinion leaders are vital in determining are influenced use opinion seeking as a risk- trends (Herring et al., 2005) and in influencing reduction practice in making decisions (Engel et al., shopping behaviors (Chan & Misra, 1990). Opinion 1993). leaders are defined as “individuals who exert an Thus, the hypothesis suggested is: unequal amount of influence on the decision of H5: Opinion leaders has a significant influence on others” (Rogers & Cartano, 1962). Two parties are perceived risk applicable in the opinion leadership process: the information seeker (i.e. the recipient who seeks The Influence of Social Structure on Word-of- advice or opinion) and the information source (i.e. Mouth the opinion leader who provides the advice) (Flynn Consumers tend to place more trust in Word-Of- et al., 1996). Mouth from people they know personally (Keller Thus, the hypothesis suggested is: 2007) in the form of in-groups. However, both H3: Opinion leaders has a significant influence on internal and external group Word-Of-Mouth is personal information source important to product acceptance. Strong ties among members of an internal-group would more likely The Influence of Communication medium on activate product referral communication and help Perceived Risk transmit information quickly within the group Reviews are one of the key aspects that (Reingen & Kernan 1986). Contrariwise, Word-Of- have emerged from social media. Customer reviews Mouth with an external-group facilitates product are widely available for products and services, information flow from one in-group to another group generating great value for both consumers and (Brown & Reingen 1987). Thus, external-group companies (Nambisan, 2002). In fact, consumers are Word-Of-Mouth is essential in new product actively encouraged by firms to rate and review diffusion because it moves information from an products and services online (Bronner & de Hoog, internal-group level to the entire market (Smith 2010). These activities produce electronic word-of- 2007). The rate of Word-Of-Mouth diffusion and the mouth. This word-of-mouth, produced through groups to which the Word-Of-Mouth is spread may social media, helps consumers in their purchasing be affected by the population’s cultural values. decisions (Pan & Chiou, 2011). Research shows that Thus, the hypothesis suggested is: customer reviews have increased rapidly on the H6: Social structure has a significant influence on Internet (Chris et al., 2008). Online communities are word-of-mouth now a place to share information and gain knowledge about products and services (Chen et al., The Influence of Communication Medium on 2011). Research has shown that potential consumers Word-of-Mouth are more interested in other users’ recommendations Opinion leaders act as "channels of rather than merely product information generated information" between mass media and mass from vendors (Ridings & Gefen, 2004). Hence, such audiences (Glock, et al., 1963). In other words, opinion leaders legitimatize the contents of a mass

Jurnal GEMA AKTUALITA, Vol. 5 No. 1, Juni 2016 communication when and if they "pass it on to their particular field make judgments in comparison to circle of relatives, friends, and acquaintances non-experts. The judgment of risk by non-experts is (Berelson & Steiner, 1964)". The distribution of given the label of risk perception rather than risk content may also depend upon the intermediation of assessment (Slovic, 1987). The emphasis on opinion leaders. The direction and intensity of their perception could mean that for a non-expert other response to a commercial, for example, may have a factors come into play such as how controllable a direct influence on its effectiveness in a total risk is seen to be. audience. Thus, the hypothesis suggested is: Thus, the hypothesis suggested is: H7: Communication medium has a significant H10: Perceived risk has a significant influence on influence on word-of-mouth effective decision making

The Influence of Opinion Leaders on Word-of- The Influence of Word-of-Mouth on Effective Mouth Decision Making Opinion leaders act as "channels of Silverman (2001) defines word of mouth as information" between mass media and mass communication about products and services between audiences (Glock, et al., 1963). In other words, people who are perceived to be independent of opinion leaders legitimatize the contents of a mass company providing the product or service, in a communication when and if they "pass it on to their medium perceived to be independent of the circle of relatives, friends, and acquaintances company. Word of mouth is accepted as the most (Berelson & Steiner, 1964)". The distribution of powerful way to make decisions easier and quickens content may also depend upon the intermediation of decision processes because it cuts through all the opinion leaders. The direction and intensity of their advertising clutter and simplifies marketing response to a commercial, for example, may have a decisions (Silverman 2001). direct influence on its effectiveness in a total Thus, the hypothesis suggested is: audience. Thus, the hypothesis suggested is: H11: Word-of-mouth has a significant influence on H8: Opinion leaders has a significant influence on effective decision making word-of-mouth Research Model The Influence of Personal Information Source on Effective Decision Making The first step in the consumer decision making model is the need recognition (Blackwell et al., 2001). Only after realizing a problem, a need or a demand, consumers begin searching for information that will solve their problem or satisfy their needs or demands. However, with internet the information search process has changed substantially; the ability for marketers to control the information flow has weakened and consumers now have access to sources that are independent of Figure 1: Research Model marketers (Shaver 2007). According to Chen (2009), Note. Khalid, Ahmed, & Ahmad (2013) with easy access to the internet, consumers now have access to the marketing mix of C. RESEARCH METHOD sellers/manufacturers before they make a purchase. Thus, the hypothesis suggested is: Research Design H9: Personal information source has a significant influence on effective decision making After identifying the variables in the proposed problem and the development of the The Influence of Perceived Risk on Effective theoretical framework, the requisite data can be Decision Making complied and analyzed to formulate the solutions of Research has followed various features the research problems to design the research and such as understanding how people make judgments gain solutions of the research problems (Sekaran, concerning the risk of different situations (Slovic, 2003). The purpose of the research was to perform 1987). This is in addition to problem solving the hypothesis testing to see if any relationship research to minimize or manage the risks involved in between the variable is present and is true to the a judgment or decision (Hastie, 2001). Interest in main goal of the research. The type of investigation risk perception and decision making is also a being done in the study is causal descriptive. stimulus for research on expert decision making, due Sekaran (2003) explains causal study as the study to the differences between how experts in a which states whether a variable(s) will affect other variable(s). The unit of analysis of the research is 20

Jurnal GEMA AKTUALITA, Vol. 5 No. 1, Juni 2016 individual, which means that the data gathered is variables (7 x 10). This research used 100 samples in evaluated as individual data source and evaluated on order to give adequate results. basis of each individual. Time horizon of this study The research will use purposive random is cross sectional because the questionnaire was sampling in the selection of respondents. Only spread out for only a certain period of time that is women who fulfilled the criteria are considered as during June-November 2015. the respondents of this research. The criteria used in selecting the samples were: Levels of Measurement and Scaling Techniques Measuring the variables of the theoretical 1. Ages 15-35 framework proposed in the research is an integral 2. Domicile in Surabaya part of the research and also a crucial aspect of the 3. Uses social media (Instagram, Youtube, research design (Sekaran, 2003). The nominal scale Twitter, Facebook) and the interval scale were used in the research. The 4. Has bought and used a product from Etude nominal scale was used to assign subjects to certain House in the last one year categories or groups i.e. the data gathering of the 5. Have bought a product from Etude House respondent’s personal data. The interval scale was in the last three month used to measure the distance between two extreme 6. Minimum visitation of at least once a points of the scale. To measure the variable, a six month in the last three months in Etude point Likert scale was used to avoid neutral position House stores in the research since odd numbered scale tends to be neutral and number scales are more direct on agree Research Instrument or disagree. Previous studies show that the broader For this study, the data collection method Likert response format is overly differential and the used is by means of constructing and distributing results from the participants are more absolute and questionnaires. According to Sekaran (2003), a less reliable (Kaiser et. al., 2003), this is why a six- questionnaire is a pre-composed written set of point is used in the study. The Likert scale is applied questions to which respondents record their to examine how strongly the respondents agree or perspectives and answers by choosing from different disagree on the statements given. The measurement closely related alternatives. For this research of the six-point Likert scale that will be used in this compiled in the Appendix A, is an adaptation of a research, developed by Likert (1932) is as follows: previously tested and used questionnaire done by Khalid, Ahmed, and Ahmad (2013). However, to 1= Strongly Disagree 4=Moderately Agree better suit the subject of study, some items were 2= Disagree 5= Agree altered and constructed by the author to fit the 3= Moderately Disagree 6= Strongly Agree research topic of beauty products. The information that can be gathered from Sample and Sampling Plan the first section includes the respondent’s age and Population referred to the entire group of social media they currently use. The second part of people that were investigated in the research and the questionnaire used a six-point Likert scale to sample was the subset of the population (Sekaran, assess. 2003). Roscoe (1975) proposes the following rules of thumb for determining sample size: 1. Social Structure (SS) is measured using three items (items 1 to 3). 1. Sample sizes larger than 30 and less than 2. Perceived risk is measured using six items 500 are appropriate for most research. (items 4 to 8). 2. Where samples are to be broken into 3. Opinion leaders is measured using four subsamples (male/females, junios/seniors, items (items 9 to 12). etc.), a minimum sample size of 30 for each 4. Personal Information Source is measured category is necessary. using seven items (items 13 to 19). 3. In multivariate research (including multiple 5. Communication Medium is measured using regression analyses), the sample size should six items (items 20 to 25). be several times (preferably 10 times or 6. Word of mouth is measured using six items more) as large as the number of variables in (items 26 to 31). the study. 7. Decision Making is measured using six 4. For simple experimental research with tight items (items 32 to 37) experimental controls (matched pairs, etc.), a successful research is possible with Validity Test samples as small as 10 to 20 in size. Validity helps in the measurement of the Thus, based on the rules of thumb, the variables for indicators and helps give the certainty that the this research are 7 variables, and then it means the concept being measured is in accordance with the minimum number of samples in this research is 70 research objective. A questionnaire will be 21

Jurnal GEMA AKTUALITA, Vol. 5 No. 1, Juni 2016 considered to be good when it has already passed the Classical Assumption Test of Multicollinearity validity test. Bivariate Pearson correlation is used to The purpose of multicollinearity is to test determine the validity of the research instrument. whether or not the regression model has correlation Instrument is considered valid when the Pearson between the independent variables of the study. If correlation or rsignificance value is higher than the rtable there is correlation between the independent value for significance level of 0.05 (Hair.et al., variables, then that problem is called 2006) multicollinearity (Santoso, 2000). The multicollinearity tests works by looking at the Reliability Test ‘tolerance value’ and ‘Variance Inflation Factor Reliability of a measure will help in (VIF)’. If the result of the ‘tolerance value’ is more showing the degree to which it is without bias and than 0.10 or the ‘Variance Inflation Factor (VIF)’ is guarantees the consistency and stability with which less than 10, it means that the data is free from the instruments measures the concept/idea. multicollinearity (Ghozali, 2005). Cronbach’s alpha is a reliability coefficient that indicates how well the items in a set are positively correlated to one another. The reliability is D. RESULT AND DISCUSSION considered to be good when the Cronbach’s alpha is equal to or higher than 0.60 (Sekaran, 2003). Multiple Linear Regression of Social Structure, Communication Medium, Opinion Leaders on Classical Assumption Test of Normality Personal Information Source (H1, H2, H3) The purpose of this test is to understand the normal distribution of data in accordance with the Based on table 17, the three independent variables, shape of data distribution. The variation from the which are Social Structure, Communication normal distribution should be as least as possible Medium, and Opinion Leaders are found to be because large variations are invalid. Data will be correlated to the dependent variable which is seen from the dot connection of the normal Personal InformationH5 Source. There is a positive probability dot (Hair et. al., 2006; Wijaya, 2009). To relationship among the variables and this can be further confirm whether the data being used in the seen from the r-value of 0.608, this means that the data is normal or not, the use of One-Sample level of relationship is large/strong. The Adjusted R2 Kolmorgorov-Smirnov Test was made. The data is value is found to be 0.350. This means that Social considered to be normal if the asymp. Significance Structure, Communication Medium, and Opinion value is more than 0.05. Leaders can explain the variance of Personal Information Source by 35%, while 65% are explained by other factors. From the data, the Classical Test of Heteroscedasticity regression equation is as following: The purpose of performing the homoscedasticity test is to check if there are sub Z1 = 1.978 + 0.147X1 + 0.051X2 + 0.388X3 populations with different variability from one Where: Z1 = Personal Information Source another. Homoscedasticity will be expected because X1= Social Structure the variance of the dependent variable in the X2= Communication Medium dependence relationship should not be condensed in X3= Opinion Leaders limited range of independent variables. Data will be seen from the distribution of the random dots in the The influence of Social Structure on scatterplot (Hair et. al., 2006). Another test that is Personal Information Source (H1) From the results used to know whether the data is homogenous or not of the hypothesis testing as shown in table 17, it can is by performing the Spearman Rho’s test. The data be seen that the significance level for H1 is 0.046 is considered to be homogenous if the significance which is below 0.05. This means that the hypothesis unstandardized residual is more than 0.05 ‘Social Structure has a significant influence on Personal Information Source’ is accepted. Classical Assumption Test of Linearity The influence of Communication Medium The purpose of this test is to get the level of on Personal Information Source (H2) From the relationship between the dependent variables and the results of the hypothesis testing as shown in table independent variables. Linearity helps in the 17, it can be seen that the significance level for H2 is calculation of the degree of changes in dependent 0.499 which is above 0.05. This means that the variable in association with the independent hypothesis ‘Communication Medium has a variable. The level of linearity should be less than significant influence on Personal Information 0.05 to consider the data to be linear (Hair et. al., Source’ is rejected. 2006) The influence of Opinion Leaders on

Personal Information Source (H3) From the results

Jurnal GEMA AKTUALITA, Vol. 5 No. 1, Juni 2016 of the hypothesis testing as shown in table 17, it can ‘Opinion Leaders has a significant influence on be seen that the significance level for H3 is 0.000 Perceived Risk’ is accepted. which is below 0.05. This means that the hypothesis Based on Table 17, the value of R is 0.749 ‘Opinion Leaders has a significant influence on which means that the correlation between the Personal Information Source’ is accepted. independent and dependent variable are strong. The Based on Table 17, the value of R is 0.608 value of adjusted R2 is 0.552, meaning that 55.2% which means that the correlation between the of Perceived Risk is influenced Communication independent and dependent variable are strong. The Medium and Opinion Leaders whereas 44.8 % is value of adjusted R2 is 0.350, meaning that 35% of influenced by other variables such as friends or Personal Information Source is influenced by Social family, personal preference or past experiences. The Structure, Communication Medium , and Opinion highest amount of influence comes from opinion Leaders whereas 65% is influenced by other leaders with an unstandardized B 0.655. The lowest variables such as advertisements, friends, or influence comes from communication medium with unconsciously being exposed to information about an unstandardized B -1.109. The significance of F is the brand. The significance of F is less than 0.05 less than 0.05 which means that the overall which means that the overall regression model is regression model is good. good. The highest amount of influence comes Multiple Linear Regression of Social Structure, from opinion leaders with an unstandardized B Communication Medium, Opinion Leaders on 0.388. The second highest amount of influence Word-of-Mouth (H6, H7, H8) comes from social structure with an unstandardized Based on Table 19, the three independent B 0.147. The lowest influence comes from variables, which are Social Structure, communication medium with an unstandardized B Communication Medium and Opinion Leaders are 0.051. found to be correlated to the dependent variable which is Word-of-Mouth. There is a positive Multiple Linear Regression of Communication relationship among the variables and this can be Medium and Opinion Leaders on Perceived Risk seen from the r-value of 0.736, this means that the (H4, H5) level of relationship is large/strong. The Adjusted R2 Based on table 18, the two independent value is found to be 0.528. This means that Social variables, which are Communication Medium and Structure, Communication Medium and Opinion Opinion Leaders are found to be correlated to the Leaders can explain the variance of Word-of-Mouth dependent variable which is Perceived Risk. There is by 52.8% and 47.2% is affected by other factors. a positive relationship among the variables and this From the data, the regression equation is as can be seen from the r-value of 0.749, this means following: that the level of relationship is large/strong. The Z3 = 1.336 + 0.221X1 + 0.083X2 + 0.471X3 2 Adjusted R value is found to be 0.552. This means Where: Z3 = Word-of-Mouth that Communication Medium and Opinion Leaders X1 = Social Structure can explain the variance of Personal Information X2= Communication Medium Source by 55.2% and 44.8% is affected by other X3= Opinion Leaders factors. From the data, the regression equation is as following: The influence of Social Structure on Word- Z2 = 2.287 - 0.109X2 + 0.655X3 of-Mouth (H6) From the results of the hypothesis Where: Z2= Perceived Risk testing as shown in table 17, it can be seen that the X2= Communication Medium significance level for H6 is 0.001 which is below X3= Opinion Leaders 0.05. This means that the hypothesis ‘Social Structure has a significant influence on Word-of- The influence of Communication Medium Mouth’ is accepted. on Perceived Risk (H4) From the results of the The influence of Communication Medium hypothesis testing as shown in table 17, it can be on Word-of-Mouth (H7) From the results of the seen that the significance level for H4 is 0.065 which hypothesis testing as shown in table 17, it can be is above 0.05. This means that the hypothesis seen that the significance level for H7 is 0.233 which ‘Communication Medium has a significant influence is above 0.05. This means that the hypothesis on Perceived Risk’ is rejected. ‘Communication Medium has a significant influence The influence of Opinion Leaders on on Word-of-Mouth’ is rejected. Perceived Risk (H5) From the results of the The influence of Opinion Leaders on Word- hypothesis testing as shown in table 17, it can be of-Mouth (H8) From the results of the hypothesis seen that the significance level for H5 is 0.000 which testing as shown in table 17, it can be seen that the is below 0.05. This means that the hypothesis significance level for H8 is 0.000 which is below 0.05. This means that the hypothesis ‘Opinion

Jurnal GEMA AKTUALITA, Vol. 5 No. 1, Juni 2016

Leaders has a significant influence on Word-of- The influence of Word-of-Mouth on Mouth’ is accepted. Effective Decision Making (H11) From the results of Based on Table 17, the value of R is 0.736 the hypothesis testing as shown in table 17, it can be which means that the correlation between the seen that the significance level for H11 is 0.000 independent and dependent variable are strong. The which is below 0.05. This means that the hypothesis value of adjusted R2 is 0.528, meaning that 52.8% ‘Word-of-Mouth has a significant influence on of Word-of-Mouth is influenced Social Structure, Effective Decision Making’ is accepted Communication Medium , and Opinion Leaders Based on Table 17, the value of R is 0.814 whereas 47.2% is influenced by other variables such which means that the correlation between the as personal knowledge about cosmetics, past independent and dependent variable are strong. The experiences, and passive exposure of the brand. The value of adjusted R2 is 0.651, meaning that 65.1% highest amount of influence is opinion leaders with of Effective Decision Making is influenced Personal the unstandardized B 0.471. The second highest Information Source, Perceived Risk, and Word-of- amount of influence is social structure with the Mouth whereas 34.9 % is influenced by other unstandardized B 0.221. The lowest amount of variables such as advertisements, friends, or influence is communication medium with the unconsciously being exposed to information about unstandardized B 0.083. The significance of F is less the brand. The highest amount of influence comes than 0.05 which means that the overall regression from word of mouth with the unstandardized B model is good. 0.472. The second highest amount of influence comes from perceived risk with the unstandardized B 0.339. The lowest amount of influence comes Multiple Linear Regression of Social Structure, from personal information source with the Communication Medium, Opinion Leaders on unstandardized B 0.236. The significance of F is less Personal Information Source (H9, H10, H11) than 0.05 which means that the fit of the model is Based on Table 20, the three independent good. variables, which are Personal Information Source, Perceived Risk, and Word-of-Mouth are found to be E. RECOMMENDATION correlated to the dependent variable which is Effective Decision Making. There is a positive There are major recommendations for relationship among the variables and this can be Etude House Surabaya: seen from the r-value of 0.814, this means that the 1. To increase the role of influence of Social level of relationship is large/strong. The Adjusted R2 Structure it is recommended to: value is found to be 0.651. This means that Personal a) Use family oriented models or artists Information Source, Perceived Risk, and Word-of- as their spokespeople, such as a K-pop Mouth can explain the variance of Effective artist with their siblings or other family Decision Making by 65.1% and 34.9% is affected by members (advertisement using sisters) other factors. From the data, the regression equation b) Create family memberships with is as following: special benefits such as promos or Y = -0.229 + 0.236Z1 + 0.339Z2 + 0.472Z3 discounts on special days such as Where: Y = Effective Decision Making National Siblings Day, Mother’s day, Z1= Personal Information Source buy one get one programs for siblings Z2= Perceived Risk or family members Z3= Word-of-Mouth c) Sell products in bulk size and family packs (cosmetics for siblings, skincare The influence of Personal Information lines for mothers, bath products for the Source on Effective Decision Making (H9) From the whole family). results of the hypothesis testing as shown in table d) Buy one get one promo for families: 17, it can be seen that the significance level for H9 is When purchasing a gift for mothers or 0.007 which is below 0.05. This means that the siblings, the customer gets a free gift. hypothesis ‘Personal Information Source has a e) Create promos and discounts for significant influence on Effective Decision Making’ couples on Valentine’s Day or is accepted. anniversaries. The influence of Perceived Risk on f) Sell Valentine’s day and anniversary Effective Decision Making (H10) From the results of themed packs for couples the hypothesis testing as shown in table 17, it can be g) Sell Spa packs filled with masks, seen that the significance level for H10 is 0.001 treatment creams and beauty tools for which is below 0.05. This means that the hypothesis close friends. ‘Perceived Risk has a significant influence on 2. To lower Perceived Risk it is recommended Effective Decision Making’ is accepted to: 24

Jurnal GEMA AKTUALITA, Vol. 5 No. 1, Juni 2016

a) Be aware of the people they choose to j) Get beauty bloggers to recreate new represent their brand. looks by using Etude House in their b) Get artists to use their products on makeup looks. screen such as on Korean dramas or 4. To increase the role of influence of music videos. Personal Information Source it is c) Choose trending people in the beauty recommended to: industry to be the face of their brand a) Make a complete and accessible such as: CL from 2NE1 database for consumers to find d) Create more products that have an information about the brand and its instant effect after each use. products e) Create a more informative package b) Provide the database in different with instructions on how to use the languages. product to its maximum potential c) Combine information about the f) Create more essential products for products with product reviews also natural makeup and heavier makeup with suggested products consumers (blushes, bronzers, base makeup might like products) for different skin types d) Give free samples to customers after g) Show certifications or approval that purchasing up to a certain amount. their product is safe for use. Customers can choose their choice of h) Get featured in Cosmopolitan’s samples products of the year or Allure e) Educate their consumers on the magazine’s best products. ingredients used, create more i) Get featured on beauty blogs and gain informative commercials and videos approval from different organizations. about the ingredients (e.g. Snail jelly 3. To increase the role of influence of Opinion and its benefits in its masks) Leaders it is recommended to: f) Provide instructions about the product a) Reach out to consumer’s friends who with a detailed list of ingredients are fond of cosmetics and beauty 5. To increase the role of influence of b) Make a makeup tutorial competition Communication Medium it is for non-professionals recommended to: c) Reach out to beauty experts who are a) Showcase their products in magazines fond of cosmetics and beauty more often (appear in the essential d) Give free samples to beauty blogs and products section) YouTube makeup artists to get featured b) Create informative booklets monthly or on their blogs and videos. a few times a year about their brand, e) Endorse the beauty experts and get newest products, products in them to incorporate Etude House’s development, with different models or products in their videos and blogs. artists being featured with different f) Create products for both professionals looks and makeup tutorials using their and non-professionals: natural makeup products products for non-professionals, c) Branch out to beauty blogs to get something to wear everyday and featured in different beauty blog sites heavier makeup products for to gain exposure. professionals with heavier pigments d) Improve social networking presence on and opaque coverage. Facebook by being more active on the g) Use Park Min Hye (Pony) who has a site with challenges, giveaways, good presence online to incorporate the interacting with the consumers. products in her videos to create new e) Make an application that lets looks for the brand. consumers connect with the brand and h) Create more skincare products that provide information about the products enhance and improve the skin such as and keep people up to date with the adding more serums, moisturizers, and brand. treatments. 6. To increase the role of influence of Word- i) Expose their products into the beauty of-mouth it is recommended to: blogging community by sending a) Encourage customers to try products samples to beauty blogs and getting from the brand and to review their them to review it. products.

Jurnal GEMA AKTUALITA, Vol. 5 No. 1, Juni 2016

b) Endorse makeup artists and get beauty 55, 10-25. blogs to feature products from Etude [2] Sharma, P. (2012). Advertising House. Effectiveness: “Understanding the Value of c) Reach out to well known YouTube Creativity in Advertising”, a Review Study makeup artists such as Michelle Phan, in India .Online Journal of Communication Karen O, and Jenn Im to post about and Media Technologies, Volume: 2 – Etude House on their channels and Issue: 3. Instagram profiles [3] Bauer, R. A. (1967). Consumer Behaviors d) Continue to increase and develop their as Risk Taking. Ed. D. F. Cox. Risk Taking line of products so consumers can and Information Handling in Consumer continue to refer their products to Behavior, Boston, MA: Harvard University friends to encourage testimonies. Press, Volume 45, Issue 1, pp 92-98 1967, 7. To increase Effective Decision Making it is [4] Adams GR, Read D (1983). Personality recommended to: and social influence styles of attractive and a) Create a program that allows customers unattractive college women. J. Psychol., to get a free sample or bonus when 114 (2): 151-157. they succeed in referring the product to [5] Amin, S., & Mahasan, S. S. (2014). a friend or family member. Relationship Between Consumers b) Create a loyalty program for customers Perceived Risks and Consumer Trust: A so they can receive a special discount Study of Sainsbury Store. Middle-East or gift after a number of purchases. Journal Of Scientific Research, Vol 19(5). There will be membership [6] Arndt, Johan (1974) , "New Product requirements customers can achieve to Diffusion: The Interplay of Innovativeness, get special gifts or discounts. Opinion Leadership, Learning, Perceived c) Etude House should create products Risk, and Product Attributes," in Models of that focus on radiant and healthy skin Buyer Behavior . Ed., Jagdish Sheth, New by incorporating ingredients such as York: Harper & Row, 327-335. snail jelly and aloe vera. [7] Barry, Thomas E., Harold W. Berkman, and Christopher C. Gilson. "Consumer For future research: Behavior: Concepts and Strategies." 1. The object of the research is limited to Journal of Marketing Research 15.3 (1978): Etude House users in Surabaya. Future 498. Web. researcher is recommended to research the [8] Barurah, T. (2012). Effectiveness of Social same topic on a different company, to get a Media as a tool of communication and its different perspective. potential for technology enabled 2. The variables in this research are limited to connections: A micro-level study. social structure, communication medium, International Journal Of Scientific and opinion leaders, personal information Research Publications, Vol 2(5). source, perceived risk, word-of-mouth, and [9] Beausoleil, Natalie. 1994. Make-up in effective decision making. The future everyday life: An inquiry into the practices researcher is encouraged to add more of urban American women of diverse variables to explain the relations more backgrounds. In Many mirrors: Body image comprehensively, such as perceived quality, and social relations, edited by Nicole Sault. customer loyalty, price, and others related New Brunswick, NJ: Rutgers University variables. Press. 3. Future research is recommended to have [10] Belch, G., & Belch, M. (2004). Advertising and Promotion: An Integrated Marketing more respondents to have a clearer th understanding about the research problems. Communication Perspective, 5 edition, 4. Future research is recommended to classify New York, NY: McGraw Hill/Irwin. the respondents according to salary or [11] Berelson, B., Steiner, G. & Albert, G. 1964. occupation in order to have a more precise Human behavior: An inventory of scientific understanding on different segments. findings, Harcourt, Brace & World New York. [12] Blackwell, RD, Miniard, PW, & Engel, JF, REFERENCES 2001, 'Consumer behavior', 9th edition, Harcourt College Publications, USA. [13] Bronner, F. & de Hoog, R. (2010) [1] Murray, K. (1991). A test of services Consumer-generated versus marketer- marketing theory: consumer information generated websites in consumer decision acquisition activities. Journal of Marketing, 26

Jurnal GEMA AKTUALITA, Vol. 5 No. 1, Juni 2016

making. International Journal o f Market Characteristics by Self Report. Journal of Research, 52, 2, p. 231. Marketing, 35(4), 48-53. [14] Brooks, Robert C.Jr., (1957), 'Word-of- [27] Cosmas, S. C., & Sheth, J. N. Identification mouth" advertising in selling new products, Of Opinion Leaders Across Cultures: An Journal of Marketing, v. (Oct), p.154-161. Assessment For Use In The Diffusion Of [15] Brown, D. and Hayes, N., 2007. Influencer Innovations And Ideas. Journal Of marketing: who really influences your International Business Studies, 66–72. customers? Oxford: Elsevier Butter Worth- [28] Cross, R., T. Laseter, A. Parker, and G. Heinemann. Velasquez, “Using Social Network [16] Brown, J., Broderick, A.J., and Lee, N. Analysis to Improve Communities of (2007). Word Of Mouth Communication Practice,” California Management Review, within Online Communities: Vol. 49, No. 1:32-60, 2006. Conceptualizing the Online Social Network. [29] Davies, M, Harries, P, Gilhooly, K and Journal of Interactive Marketing, 21(3), 2- Gilhooly, M (2011) Decision Making in 20. Relation to Financial Elder Abuse: [17] Brown, Jacqueline Johnson and Peter H. A Review of the Literature on Decision Reingen (1987), "Social Ties and Word-of- Making and Judgment Analysis. Mouth Referral Behavior," Journal of Working Paper 2, NDA Project: Detecting Consumer Research, 14 (3), 350-362. and Preventing Financial Abuse of Older [18] Burt, R.S. “The Social Capital of Opinion Adults (Series Editor: M Gilhooly), Brunel Leaders,” The ANNALS of the American Institute for Ageing Studies: Brunel Academy of Political and Social Science, University. 566, Nov. 1999, pp. 37-54. [30] Drucker, P. F. The effective decision. [19] Cao, Jinwei; Knotts, Tiffany; Xu, Jennifer; Harvard Business Review, and Chau, Michael, "Word of Mouth January/February 1967, Volume 45, Issue Marketing through Online Social 1, pp 92-98 Networks" (2009). AMCIS 2009 [31] Durmaz, Y., & Taş demir, A. (2014). A Proceedings. Paper 291. Theoretical Approach to the Influence of http://aisel.aisnet.org/amcis2009/291 Social Class on Consumer [20] Cash TF, Cash DW (1982). Women’s use of Behavior. American International Journal cosmetics: Psychosocial correlates and of Social Science, Vol. 3(No. 3). consequences. Int. J. Cosmet. Sci., 4: 1-14. [32] Elkin, F., Katz, E., Lazarsfeld, P. F., & [21] Chaudhry, S., & Irshad, W. (2013). Opinion Roper, E. Personal Influence: The Part Leadership and Its Role in Buyer Decision Played by People in the Flow of Mass Making. Academy of Contemporary Communications. The Canadian Journal Of Research Journal, Vol 2(Issue 1), 16-23. Economics and Political Science, 572–572. [22] Chen, CA, 2009, 'Information-oriented [33] Ellison, Glenn, and Drew Fudenberg. 1995. online shopping behavior in electronic Word-of-mouth communication and social commerce environment', Journal of learning. Quarterly Journal of Economics software, Vol:4 No:4 110, no. 1: 93-125. [23] Chen, Y., Fay, S. 8c Wang, Q. (2011b) The [34] Engel James F, Blackwell Roger D, role of marketing in social media: how Miniard Paul W. Consumer behavior. 6th online consumer reviews evolve. Journal of ed. Fort Worth7 Dryden Press; 1993. Interactive Marketing, 25, 2, pp. 85-94. [35] Etcoff N, Orbach S, Scott J (2004). The [24] Cheung, Christy M.K., & Lee, Matthew truth about beauty. StrategyOne, K.O. (2001). Trust in Internet shopping: http://www.dove.com.es/ instrument development and validation es_es/es_es/index.html , November 2006. through classical and modern approaches. [36] Featherstone M (1993). Consumer Culture Journal of Global Information and Postmodernism. London: Sage. Management, 9(3), 23-35. [37] Flynn, L.R., R.E. Goldsmith, and J.K. [25] Chris, F., Anindya, G. 8c Batía, W. (2008) Eastman, “Opinion Leaders and Opinion Examining the relationship between Seekers: Two New Measurement Scales,” reviews and sales: the role of reviewer Journal of the Academy of Marketing identity disclosure in electronic markets. Science, Vol. 24, No. 2:137–147, 1996 Information Systems Research, 19, 3, pp. [38] Gherasim Toader, (2013). Behaviour Social 291-313, 393-395. Factors. Economy Trans Disciplinarity [26] Corey, L. G. (1971). People Who Claim to Cognition Vol. 16, Issue 1. be Opinion Leaders: Identifying Their

Jurnal GEMA AKTUALITA, Vol. 5 No. 1, Juni 2016

[39] GLOCK, C. & NICOSIA, F. 1963. [52] Khalid, S., Ahmed, M., & Ahmad, Z. Sociology and the Study of Consumers. (2013). Word-of-Mouth Communications: Journal of Advertising Research, 3, 21-27. A Powerful contributor to [40] Graham JA, Kligman AM (1985). Physical Consumers Decision-making in Healthcare attractiveness, cosmetic use and self- Market. International Journal of Business perception in the elderly. Int. J. Cosmet. and Management Invention, Volume Sci., 7: 85-97. 2(Issue 5), 55-64. [41] Grant, R., Clarke, R., & Kyriazis, E. (n.d.). [53] Kim, D. J., Ferrin, D. L., & Rao, H. R. A review of factors affecting online (2008). A trust-based consumer decision- consumer search behaviour from an making model in electronic commerce: The information value perspective. Journal of role of trust, perceived risk, and their Marketing Management, 519-533. antecedents. Decision Support Systems, [42] Hablemitoglu, S. and Yildirim F. 44(2), 544-564. (2008).The Relationship Between [54] Kinley, T., Conrad, C., & Brown, G. Perception of Risk and Decision Making (2008). Personal & Non-Personal Styles of Turkish University Students: A Information Sources Used in the Purchase Descriptive Study of Individual of Mens Apparel. Proceedings of the 1996 Differences. World Applied Sciences Academy of Marketing Science (AMS) Journal, 4 (2): 214-224. Annual Conference Developments in [43] Hair, J., Black, W., Babin, B., Anderson, Marketing Science: Proceedings of the R., & Tatham, R. (2006). Multivariate data Academy of Marketing Science, 249-249. analysis (6th ed.). Uppersaddle River, N.J.: [55] Kinley, T., Conrad, R.A. and Brown, G. Pearson Prentice Hall. (2008). Personal vs. non-personal sources [44] Hastie, R. (2001). Problems for judgment of information used in the purchase of and decision making. Annual Review of men’s apparel. Journal of Consumer Psychology, 52, 653-683. Studies & Home Economics, Volume 24, [45] Hastie, R. (2001). Problems for Judgment Issue 1, pages 67–73. and Decision Making. Annual Review [56] Kotler, P., & Armstrong, G. (2012). Psychology,52. Retrieved November 20, Principles of marketing (11th ed.). Upper 2015,from http://faculty.chicagobooth. Saddle edu/reid.hastie/research/AnnRev01.pdf [57] Lake, Laura (2009). Why Word – of- [46] Hawkins N, Richards P, Granley H, Stein D Mouth Marketing? (2004). The Impact of Exposure to the [58] Lam, D., Lee, A., & Mizerski, R. (2009). Thin-Ideal Media Image on Women. Eat. The Effects of Cultural Values in Word-of- Disorders., 12 (1): 35-50. Mouth Communication. Journal of [47] Jacoby, J., Morrin, M., & Johar, G. (1998). International Marketing, Vol 17(No. 3). CONSUMER BEHAVIOR: A [59] Lancaster Geoff, Reynolds Paul (2005). QuadrenniumChanging Marketing Management of Marketing, Elsevier Communications Environment. Butterworth-Heinemann Linacre House, International Journal of Chemistry and Jordan Hill, Oxford OX2 8DP, 30 Function. CRC Press, Boca Raton, Corporate Drive, Burlington, MA 01803 [48] Jaffe, J. (2010) Flip the funnel : how to use [60] Lawson, R., & Todd, S. (2002). Consumer existing customers to gain new ones. lifestyles: A social stratification Hoboken, NJ: John Wiley & Sons, Ltd. perspective. Marketing Theory,Volume [49] Kaibir, H., & Nart, S. (2009). Investigating 2(3). Retrieved November 20, 2015, from drivers of choice behavior: Corporate http://citeseerx.ist.psu.edu/viewdoc/downlo image, perceived risk and trust interactions ad?doi=10.1.1.201.9632&rep=rep1&type= through reputation management. Journal of pdf Global Strategic Management, 5, 121-134. [50] Kautz, K. and Larsen, E.A. (2000), “Disseminating quality management and software process improvement innovations”, Information Technology & People, Vol. 13 No. 1, pp. 11-26. [51] Keller, Ed (2007), "Unleashing the Power of Word of Mouth: Creating Brand Advocacy to Drive Growth," Journal of Advertising Research, 47 (4), 448-452.