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INTERNATIONAL JOURNAL OF APPLIED BUSINESS RESEARCH

2023, VOL. 5, NO. 1, PP. 26-46


https://ijabr.polban.ac.id/ijabr/ POLBAN

E-WoM Engagement and Purchase Intention on Social Commerce


Specialized in Beauty Products: A Perspective from Young Female
Consumers

Nono Wibisono a, Widi Senalasari b*, Martin Elliott White c, Agustinus Februadi d
a,d
Associate Professor, Department of Business Administration, Politeknik Negeri Bandung, Indonesia
b
Assistant Professor, Department of Business Administration, Politeknik Negeri Bandung, Indonesia
c
Associate Professor, Lincoln International Business School, University of Lincoln, United Kingdom

Received 26 November 2022; accepted 4 January 2023

ABSTRACT
KEYWORDS
This study intends to analyze the impact of e-WoM engagement on social
commerce applications of beauty products on customer purchase intention. Social commerce
The Theory of Reasoned Action (TRA), Technology Acceptance Model E-WoM engagement
(TAM), Elaboration Likelihood Model (ELM), and Social Support Theory Beauty products
were employed to investigate the effect of e-WOM engagement on purchase Purchase intention
intention. Data were collected from 356 social commerce users in Indonesia,
and PLS-SEM was used to analyze the relationship between variables. This
study discovered that e-WoM engagement positively affects purchase
intention. All the TAM constructs, consisting of innovativeness and social
support, also have a positive impact on e-WoM engagement and purchase
intention. However, information characteristics have no significant impact
on e-WoM engagement. Business players of beauty products and managers
of online businesses should pay attention to factors that shape customers’
attitudes to engage in e-WoM in order to stimulate positive e-WoM
engagement. This study proposes a new model for research in the field of
social commerce and becomes the first research concentrating on social
commerce specializing in beauty products.

INTRODUCTION

Nowadays, consumers are becoming the center of focus as they are able to connect not only with
brands but also with other consumers through social networking sites (Cho & Son, 2019). Their
tendency to share opinions and reviews regarding certain products or experiences is known as word
of mouth (WoM) (Arndt, 1967; Yusuf, Che, & Busalim, 2018). This exchange of information is
considered necessary by the scope of marketing and can be said as a substitute for conventional
communication tools; it has a considerable influence on marketing activities (Ali, Hussin, & Dahlan,
2020). As the era is transforming to where this connectivity is conducted online, WoM can be done
through various online platforms. This is more popular with the term electronic word of mouth (e-

*Corresponding Author [email protected]; doi: 10.35313/ijabr.v5i01.311


© 2023 Politeknik Negeri Bandung 26
INTERNATIONAL JOURNAL OF APPLIED BUSINESS RESEARCH

WoM) (Ali et al., 2020; Yusuf et al., 2018) and becomes an integral part of social commerce (Y. Wang
& Yu, 2017).
Social commerce enables consumers to create content through online communities, forums,
ratings, and reviews (Hajli, 2014; Um, 2019). In short, social commerce is where one utilizes social
media or other social networking sites to perform e-WoM and stimulate purchase intention in e-
commerce (Um, 2019). In a similar study of social network sites, consumers' attitudes toward the
information presented in e-WoM influence their engagement to do e-WoM (Gvili & Levy, 2018). E-
WoM engagement is when consumers of technology feel bound to provide information and seek
information (Ali et al., 2020). As e-WoM engagement is a crucial element in social commerce, studies
related to this matter are being intensively carried out. Previous studies have addressed the issue
from either the consumer behavior perspective (Shu & Scott, 2014; Um, 2019; Ying, Jianqiu, Akram,
& Rasool, 2021) or the characteristic of information in e-WoM (Reichelt, Sievert, & Jacob, 2014).
Several previous studies have elaborated on both perspectives to gain a deeper insight into the impact
of e-WoM on purchase intention in various social networking sites (Ali et al., 2020; Yusuf et al.,
2018). While it was also recommended by the latest review about e-WoM conducted by Knoll (2016),
the fact that social commerce is a technological platform can not be ignored. Busalim & Hussin (2016)
stressed the importance of users’ point of view on the technological acceptance of social commerce
in future research. They concluded that the area of social commerce research is still lacking in
discussing consumer engagement in social commerce (e-WoM). Erkan & Evans (2016) argued that
the effectiveness of e-WoM on social media, in its relation to purchase intention, is highly supported
by an easy to use application, useful features and information, and social encouragement. All of these
factors were not addressed in previous social commerce literature; thus, this current study integrates
the Theory of Reason Action (TRA), Technology Acceptance Model (TAM), Elaboration Likelihood
Model (ELM), and Social Support Theory to cover the gap from previous research.
The Theory of Reason Action (TRA) is one of the most frequently used theories to examine e-
WoM engagement with purchase intention. TRA believes that a person’s attitude is the most crucial
factor in human behavior. Hence, one’s decision regarding a given object or matter is really affected
by the intention to have that behavior, be it good or bad (Ali & Hussin, 2019). Based on previous
studies, attitude toward e-WoM not only affects e-WoM engagement but also has a relationship with
purchase intention (Erkan & Evans, 2016). Referring to the Technology Acceptance Model (TAM)
that was first initiated by (Davis, 1989), there are two main variables that form attitudes, namely
perceived ease of use and perceived usefulness. The integration between perceived ease of use and
perceived usefulness will shape users’ attitudes (Davis, 1989, 1993), which are presented in the form
of their evaluation of how good or bad technology is in providing services and benefits (Kunja &
Gvrk, 2018). On a social commerce platform, it is undoubtedly common to find persuasive messages
from users who disseminate information (Giantari, Sriathi, Ekawati, Yasa, & Setini, 2020). To
understand these compelling messages, this study employs the Elaboration Likelihood Model (ELM)
to find out how a person or user elaborates and assesses information so that he can form an attitude
toward the information (Chiu, 2022; Putra & Suprapti, 2020). The user can then assess whether the
factors of quality and credibility of information get involved in e-WOM communication or vice versa
(Petty & Cacioppo, 1984). Another theory used in this study is Social Support Theory. Social support
refers to social values that are recognized by consumers to make various forms of encouragement
based on online groups’ emotional concerns and the provision of information, advice, and
experiences shared within the group (Sheikh, Yezheng, Islam, Hameed, & Khan, 2019; Yahia, Al-
Neama, & Kerbache, 2018). Previous research has claimed that someone who has been bounded or
strongly connected to e-WoM engagement in social commerce will tend to continue to develop
purchase intention on a product (Sharifpour, Khan, Alizadeh, Akhgarzadeh, & Mahmodi, 2016).

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WIBISONO, ET AL.

Social commerces are varied, and some serve niche markets by focusing only on one product
category. Indonesia ranked number one in e-commerce and social media adoption worldwide as
recorded in January 2021 (Kemp, 2021), indicating a large market for social commerce business in
this country. Based on the Digital 2021: Global Overview Report, the fashion and beauty sector has
the largest share of global B2C e-commerce revenue, amounting to US$ 665.6 billion in 2020 (Kemp,
2021). In Indonesia itself, the total revenue of the beauty and personal care market reached US$ 6.9
billion in 2020 and considering the ascending trend since 2017, it is estimated to reach US$ 9.6 billion
by 2025 (Nurhayati-Wolff, 2021). This continuous growth can be translated as an opportunity for
both local and global business players in this category. A survey conducted by Statista (2020)
highlighted that 62.9% out of 2,830 female consumers preferred to buy beauty products from online
shopping channels rather than from offline stores (Fishbein & Ajzen, 1975). Indonesian women
prioritize review availability over product safety when buying beauty products.. On average, 64,7%
of female consumers have more confidence to buy products with good online reviews (e-WoM).
However, a research result emphasized that review mostly influences Gen Z (70.9%) and Gen Y
(64.5%) in deciding to buy beauty products, but it does not too significantly work for Gen X (45,3%)
(ZAP Clinic & MarkPlus, Inc, 2020).
The same phenomenon was also discovered in a survey result by Kemp (2021), where he
mentioned that Gen Z and younger millennials (age 16-24) tend to do brand research, including
reading reviews, on social networking platforms rather than search engines. Given the large growth
opportunity for social commerce business and promising beauty sector performance in digital
platforms in Indonesia, this study focuses only on social commerce specialized in beauty products in
Indonesia. It is also emphasized on young female consumers since they tend to place great
importance on e-WoM before purchasing beauty products and are the generation that prefers to
make online transactions rather than offline.
Previous studies have been carried out to determine the effect of e-WoM on purchase intention
in social media and other networking sites (Chiyapapharak, 2021; Erkan & Evans, 2016; Farzin &
Fattahi, 2018; Gvili & Levy, 2018), two dimensions that are particularly different from e-Wom in
social commerce whose main purpose is purely commercial (Yusuf et al., 2018). This reason
provokes the importance to learn more about e-WoM in social commerce. However, studies related
to the effect of e-WoM on purchase intention in social commerce are still scarce. Yusuf et al. (2018)
conducted one research on this matter though it was limited to social commerce websites in general
that integrate social media features to facilitate social activities. Whereas, different types of social
commerce could have different results. Ali & Hussin (2019) conducted the same research in social
commerce, but they only included information characteristics and consumer behaviors in their
model. Moreover, research related to social commerce on specific age generations and gender has
never been carried out previously. The only existing research that could be found was the one that
discusses post-90s consumer behavior in social commerce (Lee, 2020). This study aims to
complement previous studies with a focus on social commerce specializing in beauty products and
to add new insight to the social commerce literature by focusing on indonesian young female.

LITERATURE REVIEW

Social Commerce

Social commerce or social business was first adopted by e-commerce in the late 1990s (Curty &
Zhang, 2011), but the term ‘social commerce’ itself was originally introduced by Yahoo back in 2005

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INTERNATIONAL JOURNAL OF APPLIED BUSINESS RESEARCH

(Gvili & Levy, 2021; Han, Xu, & Chen, 2018). The emergence of Web 2.0 was the reason for social
commerce development due to its nature that allows social aspects to create changes and
improvements in technology and business (Liu, Li, Dai, & Guo, 2021). Many scholars have defined
social commerce differently (Busalim & Hussin, 2016). Gvili & Levy (2021) described social
commerce as a marketplace where customers’ participation to promote the products is allowed. Hajli
& Sims (2015) and Liu et al. (2021) believed that social commerce is a subset of e-commerce that
involves using both social media and Web.20 features to generate sales. Zhang & Benyoucef (2016)
mentioned that social commerce may not be formed from an e-commerce platform but rather from
social networks that deliberately add shopping features. Current research mostly agrees with (Hajli,
2014) who stressed the importance of robust interactions between consumers in social commerce,
as it would result in a higher chance of commercial transactions.
The growing popularity of social commerce drives many companies to expand their businesses
to social commerce (Busalim & Hussin, 2016), including those in Indonesia. Research conducted by
AC Ventures (2021)mentioned that in 2018, 64% of total e-commerce transactions in Indonesia
occurred through social media (social commerce). Indonesia’s internet population size is ranked
fourth globally, with around 150 million users. Indonesia also ranks third in the world as a country
with the most social media usage, making it one of the biggest potential social commerce markets in
the world. McKinsey reported that in 2017, the gross merchandise value of e-commerce business in
Indonesia reached at least US$ 8 billion, with US$ 3 billion from social commerce (Das, Tamhane,
Vatterott, Wibowo, & Wintels, 2018).
Social commerce has been widely discussed in previous works from many different aspects due
to its complexity that concerns multi-disciplinary sciences; sociology, computer science, psychology,
and marketing in business (Han et al., 2018). This current study focuses on marketing knowledge.
According to McKinsey’s report, the top three product categories sold in Indonesian social commerce
are electronics, fashion, and beauty and health, which make up approximately 70% of the total online
sales. Moreover, it was discovered that online transactions are dominated by women; 35% of the
total online revenue comes from them (Das et al., 2018). Past studies mostly evaluated social
commerce in general, not product-specific (Busalim & Hussin, 2016; Das et al., 2018; Gvili & Levy,
2021; Liu et al., 2021; Yusuf et al., 2018). More recent research related to the specific product category
of e-commerce has been conducted, where they discussed issues in fashion products (Cho & Son,
2019; Jin & Ryu, 2018; Molina-Prados, Muñoz-Leiva, & Prados-Peña, 2021) and luxury counterfeit
products (Islam, Pitafi, Akhtar, & Xiaobei, 2021). However, although beauty product makes it to the
top-three mostly-bought category in online platforms (Das et al., 2018), research that concentrates
on social commerce for this category has never been done before. Whereas, the product-specific type
of social commerce, especially the beauty product sector, has recently been developed in Indonesia
(Sociolla, BeautyHaul, Female Daily, etc.).

Purchase Intention in Social Commerce

Purchase intention is a person's plan, the way he behaves towards a specific product and either ends
it with a decision to buy or not to buy (Fishbein & Ajzen, 1975). Purchase intention is often seen as a
measurement tool that allows consumers to buy a particular product (Morwitz & Schmittlein, 1992).
In other words, the existence of purchase intention can indicate high or low symptoms of the
purchase scale (Giantari et al., 2020). In today’s era, with the rapid development of social commerce,
it is undoubtedly useful to deeply discuss the purchase intention in social commerce since the
presence of social commerce has shifted the behavior of today’s consumers before they decide to
make a purchase (Hajli & Sims, 2015; Ying et al., 2021).

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WIBISONO, ET AL.

Online and offline purchase intentions are different considering the fact that online consumers
rely on technological factors to form such an intention. Generally, when a consumer uses technology,
social commerce is no exception, he will be willing to purchase the product promoted through that
certain technology once he gets a higher social value (Ying et al., 2021). Literature related to user
acceptance of technology (TAM) (Davis, 1989) can be used to understand the psychology of
consumers’ acceptance of social commerce, which will affect their intention to purchase. In short,
TAM is an appropriate model to investigate online consumer behaviors, one of which is purchase
intention (Um, 2019). Several studies have employed TAM in the context of purchase intention in
social commerce (Makmor, Aziz, & Alam, 2019; Um, 2019; Ying et al., 2021).
TAM alone will not be enough to predict customer purchase intention in social commerce since
social commerce is different from e-commerce technology. Social commerce heavily relies on e-WoM
(Y. Wang & Yu, 2017), and many scholars have discovered the connection between e-WoM and
purchase intention (Erkan & Evans, 2016; Kunja & Gvrk, 2018; Yusuf et al., 2018). One of the most
used theories to explain e-WoM engagement and its impact on purchase intention is TRA (Ali &
Hussin, 2019). TRA believes that one’s attitude toward social commerce will stimulate a willingness
to engage in e-WoM, which will affect the intention to purchase (Erkan & Evans, 2016).
E-WoM in social commerce also generates lots of information about certain products and
services, or brands (Yusuf et al., 2018). ELM is often employed to understand how consumers
carefully elaborate the information to finally come out with a solid thought (Petty & Cacioppo, 1984),
in this context, the purchase intention. Lastly, to create the most effective model to predict purchase
intention in the social commerce context, this current study will not only discuss it from the
perspectives of consumer behavior, technology, and information characteristic of e-WoM but social
aspects will also be added. Therefore, Social Support Theory is also integrated to better understand
the purchase intention in social commerce for beauty products. Previous studies have discovered a
positive correlation between social support, e-WoM engagement, and purchase intention on social
media, e-commerce, and social commerce (Ali & Hussin, 2019; Makmor, Alam, & Aziz, 2018; Yusuf
et al., 2018).

Technology Acceptance Model (TAM)

First introduced by Davis (1989), TAM was developed to understand the variety of individual
attitudes toward their behaviors. According to TAM, the formation of a person's behavior is
influenced by two perceptions: perceived usefulness and perceived ease of use (Davis, 1993).
Perceived ease of use is integrated into perceived usefulness as a correlation that simple and easy-
to-use technology will produce the highest value for its users (Bai, Yao, & Dou, 2015). This integration
will later result in users’ attitudes (Davis, 1993), which will be presented in the form of their
evaluation of how good or bad the technology is in providing services and benefits (Kunja & Gvrk,
2018). Easy-to-use technology is essential due to its ability to be an effective tool and maintain
positive work performance (Cantarelli, Flyvbjerg, Molin, & Wee, 2010; Rafdinal & Senalasari, 2021;
Wallace & Sheetz, 2014). Directly, perceived usefulness and perceived ease of use can be used to
measure the level of consumer use of technology (Cheung & Thadani, 2012). Previous research on
different objects showed that perceived ease of use and perceived usefulness influence one's attitude
toward using different technologies such as social media, mobile payment applications, and websites
(Das et al., 2018; Rafdinal & Senalasari, 2021; Rauniar, Rawski, Yang, & Johnson, 2014; Wallace &
Sheetz, 2014). Based on the above explanation, the hypotheses are developed as follows.

H1: Perceived ease of use has a positive impact on perceived usefulness.

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INTERNATIONAL JOURNAL OF APPLIED BUSINESS RESEARCH

H2: Perceived usefulness has a positive impact on attitude towards E-WoM.


H3: Perceived ease of use has a positive impact on attitude towards E-WoM.

Elaboration Likelihood Model (ELM)

Elaboration Likelihood Model (ELM) is best used to find out how a person or user processes and
accepts something so that he can provide an assessment (Chiu, 2022). Generally, recipients and users
will elaborate on the information obtained and give an assessment that the information contained
in technology has quality and credibility (Giantari et al., 2020; Seo, Park, & Choi, 2020). The quality
of information provides the foundation for a central route because it is believed to be a source of
persuasive information control. Meanwhile, the level of credibility is considered a crucial factor of
the peripheral route because it is a perception of the reliability of information (Cheung & Thadani,
2012). When consumers process information into something they consider credible, they are ready
to contribute to all forms of communication. They can also then assess whether the quality and
credibility of an information factor get involved in e-WoM communication or vice versa (Petty &
Cacioppo, 1984). E-WoM engagement itself can be influenced by the information’s quality and
credibility (Yusuf et al., 2018). Every internet user can produce information through e-WoM;
therefore, the quality and credibility of information are essential to be considered by every individual
(Xu, 2014). Based on this explanation, two hypotheses are constructed.

H4: Information quality has a positive impact on e-WoM engagement.


H5: Information credibility has a positive impact on e-WoM engagement.

Social Support Theory

Social support can be referred to as existing social sources due to the formation of social groups
(Makmor et al., 2018). In social support, Communication is based on warmth, attention to others,
and belonging (Hajli, 2014). The internet has become a virtual place to interact based on intangible
social support and product information in the form of emotional support (Sheikh et al., 2019). The
social form can exist in some ways of giving messages within the information that can be used as a
solution to help other consumers (Tajvidi, Wang, Hajli, & Love, 2021). Social support is preferred in
the online scope because it focuses on providing quality information and emotional support (Yusuf
et al., 2018). Based on previous research, someone who has been bounded or strongly connected in
e-WoM engagement in social commerce tends to continue to develop purchase intentions on a
product (Sharifpour et al., 2016). Few behavioral science concepts reveal that there is a direct
relationship between innovativeness and consumer behavior (Hirschman, 1980). Innovative
individuals tend to be more active in finding information about a product that is of interest and
sharing their experiences with other consumers without any coercion or necessity from outside
parties. Thus, innovativeness in e-WoM engagement gives a good impact on the desire to give an
opinion (Yusuf et al., 2018) and in the process of finding information (Rogers, 1976).

H6: Innovativeness has a positive impact on e-WoM engagement.


H7: Social support has a positive impact on e-WoM engagement.

Theory of Reason Action (TRA)

TRA believes that a person’s attitude is the most crucial factor in human behavior. Hence, one’s
decision regarding a given object or matter is strongly affected by his intention to have that behavior,

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WIBISONO, ET AL.

be it good or bad (Ali & Hussin, 2019). Based on previous studies, attitude toward e-WoM not only
affects e-WoM engagement but also has a relationship to purchase intention (Erkan & Evans, 2016).
When technology users give a positive attitude toward e-WoM communication, it is most likely to
stimulate information dissemination or the intention to buy a product (Ali & Hussin, 2019; Ayeh,
2015). Attitude is indicated as one of the most influential aspects of behavior in cyberspace (Um,
2019; Yusuf et al., 2018). Thus, the hypotheses are formed as follows.

H8: Attitude toward E-WoM has a positive impact on E-WoM engagement.


H9: Attitude toward E-WoM has a positive impact on purchase intention.

Electronic Word-of-Mouth (E-WoM) Engagement

Nowadays, the way consumers interact with others can be conducted online, which is more popular
as electronic word-of-mouth (E-WoM) (Yusuf et al., 2018). E-WoM activities carried out on social
network sites have a strong influence, including affecting the effectiveness of consumer decisions
(Gvili & Levy, 2018). Early studies found that engagement in E-WoM has an influence on purchase
intention (Ayeh, 2015; Farzin & Fattahi, 2018; Yusuf et al., 2018). E-WoM engagement is when
consumers of technology feel bound to provide information and seek information (Gvili & Levy,
2018). Positive responses from platform users can cause a feeling of involvement due to valid e-WoM
activities (Yusuf et al., 2018). In other words, consumers are the main element in social commerce
to develop a much higher purchase intention. A hypothesis is then developed as follows. Figure 1
presents the proposed model used in this study.

H10: E-WoM engagement has a positive impact on purchase intentions.

RESEARCH METHOD

This study employed a purposive sampling technique due to its ability to concentrate on respondents
with certain characteristics and understand an issue better than others (Etikan, 2016). In this case,
the respondents were women who had used social commerce for beauty products. Data were
collected over four weeks in June 2021. A total number of 418 responses were obtained but only 356
were qualified to be further analyzed. Although there is no specific number of samples required in
the purposive sampling method (Etikan, 2016), to reach the research aims, the data analysis process
requires a minimum size of the sample (Rafdinal & Senalasari, 2021). To examine the sample size
using statistical power, G*Power was applied. G*Power is a program designed to anaylze the
statistical power of a broad variety of tests, including determining the sample size (Carranza, Díaz,
Martín-Consuegra, & Fernández-Ferrín, 2020). The value of statistical power for the current study
was 0.95, exceeding the minimum value of 0,80 (Carranza et al., 2020; Hair, Risher, Sarstedt, &
Ringle, 2019); therefore, the sample size was considered adequate.
All respondents were females, which can be translated that the female domination in social
commerce specializing in beauty products in Indonesia is strong. Of all the participants, 66% were
between the age of 18-21, 33% were between the age of 22-25, and the rest 1% were above 25 years
old. Young generation users are dominating social commerce for beauty products. In terms of
educational background, 65% were undergraduate/diploma level, 17% were postgraduate level,
16% were senior high school graduates, and the rest 2% were others, representing an educated
group of respondents. In terms of income, considering the domination of young generations, 74%

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INTERNATIONAL JOURNAL OF APPLIED BUSINESS RESEARCH

of the respondents earned below IDR 2,000,000 per month, and only 26% earned more than IDR
2,000,000, with only 5% of them earning above IDR 5,000,000 each month. To conclude,
considering the characteristics of the respondents, this current study focused on young females in
Indonesia who had used social commerce.

Perceived H2
usefulness

Attitude H9
H1
towards e-WOM
Perceived H3

ease of use

Purchase
Information H4 intention
quality H8

Information H5
credibility
e-WOM
engagement H10
H6
Innovativeness

H7
Social support

Figure 1. The proposed model

The constructs, in the form of a self-developed questionnaire, were distributed online to the
Indonesian users of social commerce specialized in beauty products. We ensured that the
respondents had used this kind of social commerce at least once in their lives. All constructs in the
questionnaire were measured using a five points Likert scale, from 1 = “strongly disagree” to 5 =
“strongly agree”. Additional questions regarding participants’ profiles such as gender, age,
educational level, and income were included in the questionnaire. A total of nine constructs were
used, with the detail shown in Table 1.

Table 1. The indicators of variables and their sources


Variable Number of Indicators Reference
Perceived PU1: Using social commerce allows me to get re-connected (Rafdinal & Senalasari,
usefulness with people that share the same interest as me 2021; Rauniar et al.,
PU2: I find social commerce useful for sharing information 2014; Wiese &
related to beauty products Humbani, 2020)
PU3: Using social commerce makes it easier to stay informed
about beauty products
Perceived ease EU1: Social commerce is flexible to interact with fellow users (Rafdinal & Senalasari,
of use EU2: It is easy to get social commerce to do what I desire 2021; Rauniar et al.,
EU3: I think it is easy to use social commerce 2014; Wiese &
EU4: I find it easy to understand how to use social commerce Humbani, 2020)
Attitude AT1: I read/write reviews about beauty products on social (Wiese & Humbani,
towards e- commerce frequently 2020; Yoo, Sanders, &
WoM AT2: Reviews shared in social commerce help me make a Moon, 2013)
purchase decision
AT3: Reviews shared in social commerce convince me to
purchase a product

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WIBISONO, ET AL.

Table 1. The indicators of variables and their sources (continued)


Variable Number of Indicators Reference
Information IQ1: The information shared on social commerce is based on (Filieri, Alguezaui, &
quality facts McLeay, 2015)
IQ2: The information shared on social commerce is detailed
and clear
IQ3: The information shared on social commerce is credible
Information IC1: The information shared on social commerce is reliable (Filieri, 2015; Filieri et
credibility IC2: The information shared on social commerce is accurate al., 2015)
IC3: The information shared on social commerce is
trustworthy
Innovativeness IN1: Generally, I want to be the fastest among my friends to (Kim & Kim, 2015)
write a review of a product in social commerce
IN2: Generally, I am the first in my circle of friends to know
the latest beauty product
IN3: Compared to my friends, I often read/write reviews on
social commerce
Social support SS1: When facing difficulties in finding product information, (Hajli, 2014; Hajli &
some social commerce users encourage and comfort me Sims, 2015)
SS2: When facing difficulties in finding product information,
other users express interest and concern for me
SS3: On social commerce, some users offer advice when I
need help
SS4: When I encounter problems in the context of beauty
products, some people provide information to help me solve
the problems
E-WoM EE1: I frequently read and/or write beauty product reviews in (Kunja & Gvrk, 2018;
engagement social commerce Yoo et al., 2013)
EE2: I frequently read beauty product reviews in social
commerce to get information about products that makes a
good impression on others
EE3: I often use social commerce to seek information about
beauty products so I can feel confident in making my
purchase decision
Purchase After getting information shared by other users of social (Kırcova, Yaman, &
intention commerce for beauty products, … Köse, 2018;
PI1: I am likely to buy the product Prendergast, Ko, & Siu
PI2: I will consider buying the product in the future Yin, 2010)
PI3: I will try the product I’m interested in, according to the
information I get from the social commerce
PI4: I will recommend the product to my friends
Note: “Social commerce” in Table 1 refers to “the one specialized in beauty products”

The data analysis was conducted using Partial Least Square Structural Equation Model (PLS-
SEM) with SmartPLS 3.0 software. This study employed PLS-SEM because it can examine complex
research models (Hair, Ringle, & Sarstedt, 2011). PLS-SEM was used to test various hypotheses in
this study by conducting a two-step approach: taking measurements on the structural model
(assessing the reliability and validity of constructs used) and examining the structural model
(Goodness of Fit, R2, Q2, and path coefficients) (Hair, Risher, Sarstedt, & Ringle, 2019).

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INTERNATIONAL JOURNAL OF APPLIED BUSINESS RESEARCH

RESULTS

Measurement Model

The measurement model was conducted to measure the reliability and validity of each construct for
all latent variables. The reliability test was done by evaluating the loading factor and Composite
Reliability (CR) values (Hair et al., 2011). The standardized requirement for measuring a loading
factor to ensure validity is 0.708 (Hair et al., 2011), but for some cases, a loading factor of more than
0.4 is still acceptable (Chin, Peterson, & Brown, 2008). All loading factors of this analysis show a
value of more than 0.70 (as shown in Table 2). Furthermore, the threshold for CR is 0.7 (Hair et al.,
2011), in other words, it is considered reliable.
The next step was performing the convergent validity test using the sum of the AVE coefficient
values. The required value is above 0.50 (Fornell & Larcker, 1981). Table 2 shows the value of AVE
for all variables is above the cut-off level of 0.50. The Heterotrait-Monotrait (HTMT) test was also
conducted, with a value of below 0.9 (Hair et al., 2019). As shown in Table 2, the HTMT value for all
variables does not surpass its threshold. The model is safe and considered valid.

Structural Model

The structural model was carried out by evaluating the Goodness of Fit (GoF), coefficient of
determination (R2), and path coefficient (Hair et al., 2019). The GoF test was conducted to test
structural hypotheses in a study as it functions to determine the level of accuracy and suitability of
data distribution (Wang, Yeh, Chen, & Tsydypov, 2016). The GoF test is said to be appropriate if it
exceeds the cut-off value of 0.36 (Henseler, Hubona, & Ray, 2016). The GoF value for this model is
0.572, exceeding the criteria of 0.36. It implies that the model proposed in this study is compatible
with the research hypotheses and has been good enough to explain the research model.

Table 2. The measurement model result


Construct/item Loading CR Cronbach’ Alpha AVE
Attitude (AT) 0.887 0.822 0.739
AT1 0.851
AT2 0.902
AT3 0.828
E-WoM Engagement (EE) 0.874 0.777 0.690
EE1 0.830
EE2 0.829
EE3 0.818
Information Credibility (IC) 0.862 0.755 0.673
IC1 0.799
IC2 0.828
IC3 0.829
Information Quality (IQ) 0.904 0.811 0.731
IQ1 0.856
IQ2 0.863
IQ3 0.837
Innovativeness (IN) 0.859 0.770 0.677
IN1 0.762
IN2 0.852
IN3 0.858

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Table 2. The measurement model result (continued)


Construct/item Loading CR Cronbach’ Alpha AVE
Perceived Ease of Use (PEU) 0.859 0.783 0.598
PEU1 0.744
PEU2 0.751
PEU3 0.767
PEU4 0.841
Perceived Usefulness (PU) 0.830 0.688 0.616
PU1 0.723
PU2 0.829
PU3 0.821
Purchase Intention (PI) 0.883 0.807 0.641
PU1 0.854
PU2 0.802
PU3 0.808
PU4 0.731
Social Support 0.903 0.843 0.669
SS1 0.841
SS2 0.874
SS3 0.785
SS4 0.761

Table 3. HTMT test result


Variable AT EE IC IQ IN PEU PU PI SS
AT
EE 0.608
IC 0.541 0.429
IQ 0.502 0.420 0.623
IN 0.350 0.498 0.356 0.341
PEU 0.529 0.451 0.491 0.620 0.324
PU 0.547 0.511 0.494 0.607 0.403 0.588
PI 0.719 0.664 0.502 0.548 0.463 0.541 0.556
SS 0.581 0.556 0.532 0.527 0.529 0.508 0.540 0.638

Table 4. Goodness-of-fit result


Variable AVE R2 Q2
AT 0.742 0.368 0.260
EE 0.688 0.476 0.308
IC 0.667
IQ 0.731
IN 0.680
PEU 0.600
PU 0.615 0.344 0.205
PI 0.642 0.592 0.372
SS 0.673
Average Score 0.679 0.482 0.289
AVE × R2 0.327
GoF = √(𝐴𝑉𝐸×𝑅2) 0.572

The value of R2 was analyzed to determine the simultaneous effect of exogenous variables on
endogenous variables. The R2 value is divided into three assessment groups: a rating of 0.19 is

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categorized as weak, 0.33 as moderate, and 0.67 as strong (Chin et al., 2008). Table 4 shows that all
endogenous variables were influenced by exogenous variables with moderate criteria. Lastly, the
path coefficient analysis was carried out to determine the effect of the variables specified and as an
attempt to explore deeper in this study using a bootstrap test (Henseler et al., 2016). The hypotheses
are accepted if the T-Statistics value in a study has a cut-off value of more than 1.96 and P-values
below 0.005 (Hair et al., 2011).

Table 5. Coefficient determination


Variable R2 Adjusted R2
AT 0.368 0.364
EE 0.476 0.472
PU 0.344 0.343
PI 0.592 0.589

As shown in Table 6, all hypotheses have a t-value of more than 1.96 and a p-value below 0.05,
except for the relationship between information quality and information credibility to e-WoM
engagement. In other words, all hypotheses developed and tested in this study are accepted, except
for H4 and H5 which are rejected. Both hypotheses show p-value of 0.373 and 0.839 respectively, far
above the threshold of 0.05. It implies that information quality and information credibility do not
have a significant impact on e-WoM engagement.

Table 6. Hypotheses testing result


Hypothesis β t-value p-value Result
H1: PEU → PU 0.589 15.697 0.000 Accepted
H2: PU →AT 0.373 6.335 0.000 Accepted
H3: PEU → AT 0.313 5.366 0.000 Accepted
H4: IQ → EE 0.052 0.890 0.373 Rejected
H5: IC → EE 0.008 0.191 0.839 Rejected
H6: IN → EE 0.248 5.089 0.000 Accepted
H7: SS → EE 0.146 2.802 0.000 Accepted
H8: AT → EE 0.397 7,288 0.000 Accepted
H9: AT →PI 0.501 13.742 0.000 Accepted
H10: EE → PI 0.351 8.545 0.000 Accepted

Table 7. Indirect effect result


Indirect Effect
Variable
β t-value p-value
PEU → AT 0.214 5.305 0.000
PEU → EE 0.213 6.372 0.000
PEU → PI 0.338 10.372 0.000
PU → EE 0.149 4.293 0.000
PU → PI 0.239 5.599 0.000
AT → EE 0.143 6.878 0.000
IC → PI 0.000 0.201 0.831
IQ → PI 0.000 0.923 0.364
IN → PI 0.077 4.223 0.000
SS → PI 0.046 2.718 0.000

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WIBISONO, ET AL.

Lastly, this study also provides the result of the indirect effect between variables. According to
Table 7, perceived ease of use has an indirect effect on attitudes toward e-WoM (β=0.214, t-
value=5.305), e-WoM engagement (β=0.213, t-value=6.372), and purchase intention (β=0.338, t-
value=10.372). Perceived usefulness has an indirect effect on e-WoM engagement (β=0.149, t-
value=4.293) and purchase intention (β=0.239, t-value=5.599). The result also shows that attitude
indirectly affects e-WoM engagement (β=0.143, t-value=6.878). Lastly, innovativeness (β=0.077, t-
value=4.223) and social support (β=0.046, t-value=2.718) have an indirect effect on purchase
intention.

DISCUSSION

First, this study analyzes the impact of e-WoM engagement in beauty products’ social commerce
applications on the purchase intention of young female consumers. It integrates four main
theories/models: the Theory of Reason Action (TRA), the Technology Acceptance Model(TAM), the
Elaboration Likelihood Model (ELM), and the Social Support Theory. The result of the proposed
model test shows that the model fits. E-WoM engagement that is influenced by attitudes toward e-
WoM positively affects purchase intention. A number of previous studies support this result, saying
that attitude toward e-WoM acts as a building factor that can significantly build purchase intention
and the occurrence of someone feeling involved or bound to e-WoM (Um, 2019; Yusuf et al., 2018).
This result highlights that in the beauty industry, people who show a positive attitude toward e-WoM
on social commerce tend to engage more in e-WoM, and are likely to have a much higher intention
to buy beauty products. Consumers of beauty products in Indonesia believe that the reviews left in
social commerce are helpful for them. In line with a research report from (ZAP Clinic & MarkPlus,
Inc, 2020), women tend to look at reviews before purchasing beauty products. A positive attitude
toward e-WoM will stimulate them to read more about the review or even write one themselves. It
indicates a higher chance of participating in e-WoM, which then provokes their purchase intention
of beauty products.

Perceived 0.37*
usefulness

Attitude 0.50*
0.59*
towards e-WOM
Perceived 0.31*

ease of use

Purchase
Information ns intention
quality 0.40*

Information ns
credibility
e-WOM
engagement 0.35*
0.25*
Innovativeness

0.15*
Social support

Figure 2. Result of hypotheses testing


*Significant at p<0.01; ns: not significant

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Second, perceived ease of use and perceived usefulness have a positive impact on attitude; this is
in line with previous studies conducted by Cho & Son (2019) and Um (2019). Once users feel that
the system can increase their effectiveness in getting achievements or shortened working time, the
system meets their needs, and most likely they get a lot of benefits from the system. A system that
produces maximum benefits with minimal effort can easily encourage an individual's attitude
toward long-term use (Cho & Son, 2019). Furthermore, this study reveals that both perceived
usefulness and perceived ease of use have an indirect effect on purchase intention through attitude
and e-WoM engagement (see Table 7). Technology that could enhance work effectiveness and has
benefits can influence one’s intention to purchase a product or use technology by showing an attitude
(Ying et al., 2021). This study promotes that beauty products’ social commerce that is useful for users
could enhance users’ effectiveness. It has features that can be easily understood, and this will form a
positive attitude to engage in e-WoM (write reviews and comments) and stimulate users’ intention
to buy the beauty products. Because the application is easy to use, the features provided are following
user needs, so users can quickly get and share information about a beauty product in a short time,
with the least amount of effort. Therefore, enhancing more sophisticated features is the foundation
for social commerce to be accepted by users for all time and can produce as much effectiveness and
performance. It is the job of a marketer to ensure that the technology can continue to be adopted by
users, and this stimulates users’ intention to purchase.
Third, although not as expected, the result shows that users of beauty products’ social commerce
do not consider the quality and credibility of information as an important factor to engage in e-WoM
and influence their intention to purchase a product. In other words, in the beauty industry, active
users of social commerce are more concerned with other aspects such as attitude, consumer
innovation, and social support. This result contradicts a study conducted by Seo et al. (2020) that
focuses on airline consumers and Cheung & Thadani (2012). However, it supports a study by Ali &
Hussin (2019). Ali & Hussin (2019) argued that e-WoM engagement does not depend on information
characteristics, both quality and credibility. The recipients of the message cannot ensure that the
information obtained has good quality and credibility (Chen et al., 2016). Yusuf et al. (2018) stated
that to engage in e-WoM on a social commerce platform, information quality is not an important
factor since the reviews published there could be produced by anyone; thus, it is hard to filter out
their quality and credibility. Indonesian young female consumers of beauty products are categorized
as well-educated consumers. When it comes to engaging in e-WoM (writing reviews regarding
beauty products in social commerce), the characteristics of the information itself do not play any
role. These consumers can write a review as soon as they try the new products. Meanwhile, when it
comes to reading a review of beauty products, the information provided does not have to be credible
and qualified. In the beauty industry, it is understandable that people have different skin conditions;
thus, a good review written by one person does not mean that the product would suit another. For
a well-educated consumer of beauty products, this would make e-WoM engagement happen
regardless of the quality of reviews in social commerce.
Fourth, the result also shows that innovative consumers have quite important involvement in
encouraging others to perform e-WoM activities in social commerce. This is consistent with studies
by (Wang et al., 2016; Yusuf et al., 2018). Also, innovative consumers will be willing to give their
ideas or become pioneers to show their loyalty to the platform by engaging in e-WoM activities.
Through the e-WoM engagement variable, innovativeness indirectly affects the purchase intention
of beauty products (see Table 7). This statement supports the result from previous research which
proved that there is a relationship between innovative consumers and purchase intention (Erkan &
Evans, 2016; Yusuf et al., 2018). This result confirms that in the online beauty industry, innovative
consumers are important to create e-WoM engagement and stimulate the purchase intention of a

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WIBISONO, ET AL.

product. After trying new beauty products, a more innovative person would want to share her
thoughts about that product with the world. In today’s era, social commerce has become one of the
most look-out places for these beauty product enthusiasts, both to share their thoughts and read the
thoughts of others regarding beauty products. Innovative beauty products consumers also tend to
be most updated with the new products, so they will search for reviews or information on certain
products in social commerce, which will influence their intention to buy. Innovative consumers,
then, are proven to be a significant investment for companies to continue to create value so
companies must treat these innovative customers as best as they can (Friedrich, 2015).
Lastly, social support also has a significant relationship with e-WoM engagement. This is aligned
with the findings from previous studies (Ali et al., 2020; T. Wang et al., 2016). Social support appears
from a community that has succeeded in building relationships among its members by providing
information support and emotional support. Information support can be in the form of suggestions
for other users to solve problems while emotional support can be the attention given to fellow users
(Tajvidi et al., 2021). This research discovers that users of beauty products' social commerce do not
only get and search for information but also try to develop relationships with other users. Due to
this positive relationship, active users feel increasingly involved in e-WoM. Acceptance from the
surrounding environment will simultaneously encourage other users to find out new information
and eventually form the purchase intention toward a product (Gottlieb & Bergen, 2010). It is also
found that support between users, in the form of physical and psychological comfort, can influence
e-WoM engagement and in turn indirectly affect purchase intention (see Table 7). The correlation
between these variables is supported by previous research in the context of e-WoM communication
(Baber et al., 2016).

THEORETICAL IMPLICATION

The results of this study are crucial for several reasons. First, they are important for marketing
literature related to e-WoM engagement and purchase intention, especially for social commerce.
Following the rapid development of technology, the number of social commerce platforms continues
to grow. In Indonesia, one of the most used is social commerce specializing in beauty products,
dominated by young female consumers. Thus, e-WoM is believed to be a more effective method to
promote a product, even better than advertising (Yusuf et al., 2018). Second, this study is the first to
propose a model which combines four theories to answer the main questions related to the influence
of e-WoM on the purchase intention of beauty products. Those theories are TRA, TAM, ELM, and the
Social Support Theory. Due to the differences between social commerce, e-commerce, and social
media in terms of their operations and end-objective, the four theories are combined into a research
discussion to answer complex research objectives which cannot be achieved credibly with one theory
only (Ali et al., 2020; Busalim & Hussin, 2016; Yusuf et al., 2018). Therefore, this research can further
explore problems in the marketing world, bridging the gaps and completing the limitations of
previous research. Lastly, we discover that in the social commerce beauty industry, information
characteristics are not crucial in enhancing users’ intention to buy beauty products through e-WoM
engagement in social commerce. Other variables supported by TAM, TRA, and Social Support Theory
are proven to have an impact, both directly and indirectly, on e-WoM engagement and purchase
intention.

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MANAGERIAL IMPLICATION

This research is specifically important for practitioners, both beauty product companies and social
commerce platforms. The TAM and TRA theories are proven in this study. The more people feel that
the platform is easy to use and useful, the more they will engage in the platform. It leads to an
increase in the number of users and is beneficial for the platform. The usefulness and ease of use of
a social commerce platform will stimulate users’ positive attitude to perform and engage in e-WoM,
and in turn, affect their intention to purchase a beauty product. Social commerce businesses that
focus on beauty products could try implementing mobile apps that can attract more young female
consumers since apps are easier to use than web-based platforms. A total of 96% of the Indonesian
population owns smartphones, and 93.3% of them access the internet from their smartphones. In
February 2022, the annual consumer spending on mobile apps and in-applications purchases
reached US$ 532 million, which was increased by 12% from the previous year (Kemp, 2022).
However, social commerce platforms also need to ensure that they provide a good-quality user
experience, not only by hiring a professional but also by surveying things that matter to their
consumers (such as features to be added to the platforms, brands they should share information
about, the layout of the site, etc.). This should be done on a regular basis. Improvements need to be
made based on this survey in order to increase the perceived ease-of-use and perceived usefulness
level in customers’ minds since social commerce heavily relies on the interactions between users,
and the beauty industry is no exception.
The results also show that innovativeness and social support affect e-WoM engagement and
purchase intention. Innovative consumers are important for both social commerce platforms and
beauty product companies. For social commerce platforms, these consumers would be the ones who
attract engagement when they write reviews or comments. For beauty product companies, these
consumers are critical because they can promote the company's products in a way that the company
itself cannot. Thus, in today’s era, companies should filter and pay extra attention to the innovative
consumers they found on social commerce sites or the companies’ social networking sites.
Businesses in the beauty industry should hire or form a special team assigned to screen these
innovative consumers, not only on social commerce platforms but also on social media such as
Instagram, Youtube, etc. The ones that fit the criteria and have done a fantastic way of reviewing
beauty products have a big impact on their followers, thus, they should be contacted by companies
to further create any kind of partnerships. Nowadays, these innovative consumers could be more
valuable than celebrities. Innovative consumers must be treated as a company’s investment. Giving
them special treatments such as discounts or free products might enhance the company’s chance to
get a better review in the future. In addition, since innovative consumers could possibly leave a bad
review, following their suggestions could also affect the beauty products. Social commerce sites or
platforms also have to provide a feature such as forums to support the needs of creating a community
among users. Social support among users could be beneficial for the company since it has an impact
on purchase intention. Therefore, companies have to ensure that it is supported and provided.

LIMITATIONS AND FUTURE RESEARCH

Several limitations of this study require further investigation by future researchers. This study was
limited to social commerce for beauty products in Indonesia. Different types of products or countries
could create different results since the nature of each product and consumer in different regions
varies. This study focused on young female consumers in Indonesia. Future studies could test the

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same model on different samples to validate the generalization of the results. Comparison within
different types of social commerce could also be done to understand whether the model proposed in
this study works for all types of social commerce, which will bring valuable insight to the literature
and practitioners. Finally, future research could add more variables that have not been covered in
this study, such as trust and perceived risk to enrich the results or differentiate the social support
factors into informational and emotional support to understand which one is actually needed in the
social commerce industry.

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