Abstract

This study examines the impact of product quality and online shopping experience (OSE) on consumer loyalty through customer satisfaction in the context of local skincare products. Findings reveal that both product quality and OSE significantly influence consumer loyalty, with OSE having the strongest effect. Perceptions of lower prices on e-commerce platforms are crucial. The study integrates Social Presence Theory with product quality, customer satisfaction, and Flow Theory in understanding the OSE. These insights can help businesses enhance customer loyalty and satisfaction in the local skincare industry. Overall, the research objectives of this study are geared toward uncovering the relationship between product quality, OSE, customer satisfaction, and consumer loyalty in the local skincare industry. By achieving these objectives, the study aims to provide valuable insights for businesses to enhance customer loyalty and develop effective strategies for success in the market.

Introduction

The COVID-19 pandemic has significantly impacted customer satisfaction with skincare products in Indonesia. With the shift to online shopping due to lockdowns and social distancing measures, customers have faced challenges physically experiencing and testing products. However, skincare brands that offer detailed information, virtual consultations, and seamless online experiences have the opportunity to enhance customer satisfaction. The demand for skincare products in Indonesia has shown steady growth, with sales of health and personal care reaching US $5.93 billion in 2020, US $6.34 billion in 2021, and projected to reach US $7.23 billion in 2022 which is skincare amounting to US$2.05 billion, according to Statista (Mutia, 2022) and expected to grow every year by 5.81%. This underscores the importance of customer satisfaction in driving sales and capturing market share in the skincare industry.

Customer satisfaction is vital in the skincare industry as it directly impacts sales and consumer loyalty. Satisfied customers are more likely to purchase and recommend products, while dissatisfied customers may switch to other brands, potentially losing sales. With intense competition in the skincare market, meeting customer expectations and providing a positive shopping experience is crucial for building a loyal consumer base and driving sales. Additionally, negative experiences can quickly harm a brand’s reputation in the age of social media and online reviews. Prioritizing customer satisfaction helps maintain a competitive edge and fosters long-term customer relationships.

Conclusion

From the results of this study, it can be concluded that online shopping experience has a stronger influence, directly or indirectly, on consumer loyalty. This means that companies selling online need to ensure consumers have a good experience when shopping online. This experience can be formed from the ease of using an application or website, ease of access, language, and ease of seeing the appearance of skincare products that can make consumers feel good when using the website or application. Looking at the product quality variable, product quality can also have an effect, but not as strong as online shopping experience, so to maintain product quality, skincare brands can continuously monitor the expiration date of skincare products, make testimonials from skincare users to prove quality. skincare products and ensure that skincare products are safe by obtaining a halal label from the government.