Pengembangan model loyalitas konsumen generasi Z pada produk kecantikan lokal

Abstract

Generation z is someone born between 1995-2010 that currently dominates the Indonesian population. Generation z behavior and interest became relevant to business today and in the future, as they predicted to be the next consumer powerhouse that will acquire around 40 percent of market share. In the last few years, the Indonesian beauty industry shows significant growth and predicted to increase in the next few years. Generation z entering the market is marked as a phenomenon that businesses should anticipate as this specific generation seems to have low consumer loyalty. This study aims to develop generation z's loyalty model on local beauty products based on several loyalty models from previous literature, such as ACSI, SWICS, and ECSI, including factors that influence consumer loyalty. Said factors are consumer satisfaction, consumer trust, and consumer ethnocentrism. Moreover, perceived product quality and value are also added as factors that influence consumer satisfaction, which will influence consumer loyalty. This research was conducted on 290 female respondents under categories of generation z which born between 1995-2010 and have purchased local beauty products under the category of lipstick. Data collection is done by filling out a questionnaire distributed online. The research result shows that perceived product quality directly and significantly affects perceived value. Meanwhile, both perceived product quality and perceived value have a direct and significant effect on consumer satisfaction. The result also shows that consumer satisfaction has a direct and significant effect on consumer trust. Consumer satisfaction, consumer trust, and consumer ethnocentrism have direct and significant effects on consumer loyalty. Several managerial implications that can be implied are increasing product research and development to formulate local lipstick products that provide comfort and develop new color choices according to generation z's preference, increasing consumer trust by ensuring product quality, developing broader product lines or sub-brand with a distinctive personality, expanding distribution networks and ensuring product availability, as well as developing social media marketing of local lipstick product