International Journal of Education.
Social Studies.
And Management (IJESSM) e-ISSN : 2775-4154 Volume 4.
Issue 2.
June 2024 The International Journal of Education.
Social Studies, and Management (IJESSM) is published 3 times a year (February.
June.
Novembe.
Focus : Education.
Social.
Economy.
Management.
And Culture.
LINK : http://lpipublishing.
com/index.
php/ijessm Trust.
Value.
Price Fairness: Boosting Loyalty in Eco Hair Care Altisya Putri Dinanti1.
Usep Suhud2.
Nofriska Krissanya3 1,2,3 Universitas Negeri Jakarta.
Indonesia
ABSTRACT
ARTICLE INFO
Article history:
Received 22 March 2024 Revised 27 April 2024 Accepted 25 May 2024 Keywords Doi Corresponding Author :
The purpose of this research is to determine the influence of trust, perceived value, perceived price fairness, and customer satisfaction on customer loyalty to environmentally friendly hair care products.
The research method uses a quantitative research design by distributing A total of 254 respondents were sampled using purposive sampling technique.
The research objects in this study were respondents aged 18-60 years in DKI Jakarta and had purchased environmentally friendly hair care products at least three times in the last year.
This research uses SPSS version 26 software and SEM (Structural Equation Mode.
from AMOS software to analyze and process research data.
The research results show that: first, trust, perceived value, and perceived price fairness have a positive and significant effect on customer satisfaction.
Second, trust, perceived value, and customer satisfaction have a positive and significant effect on customer loyalty.
Third, perceived price fairness has no influence on customer loyalty.
Customer Loyalty.
Customer Satisfaction.
Green Products.
Price Fairness.
Eco Hair Care dinanti@gmail.
INTRODUCTION
Rapid economic growth has caused degradation of the natural environment and the emergence of various environmental problems (Sheng et al.
, 2019.
Krissanya et al.
, 2.
The United Nations .
states that environmental degradation is caused by human involvement, namely too much consumption, too much packaging and too many chemicals.
One of the products for human consumption that contributes to environmental damage is cosmetic products, where many of the ingredients in these products are difficult to decompose naturally (Watsons.
id, 2.
According to Badan Pengawas Obat dan Makanan (BPOM) the number of beauty companies in Indonesia increased by 20.
6% from 2021, from 819 to 913 in July 2022.
Statista.
reports that the cosmetics market is expected to continue to grow by 4.
39% every year (CAGR 2024Ae2.
By 2024, the personal International Journal of Education.
Social Studies.
And Management (IJESSM) Volume 4.
Issue 2.
June 2024 Page 454-472 care segment will be the largest market segment with a value of US$3.
88 billion.
With this growth, entrepreneurs are forced to carry out many innovations amidst many environmental issues to remain in the industry.
Environmentally friendly cosmetic products are one of the innovations carried out by companies in the cosmetics industry.
The development of the environmentally friendly cosmetics industry shows that people's interest in adopting environmentally friendly cosmetic products is Increasing public awareness of environmental and social problems related to the consumption of cosmetic products, one of which occurs in the choice of hair care products.
It was reported by factmr.
that the market for environmentally friendly hair care products will reach US$ 10.
32 billion in 2023 and is expected to increase at a CAGR of 7.
1% and reach a market value of US$ 20.
5 billion by the end of the year.
This has caused many environmentally friendly hair care brands to emerge, including in Indonesia.
Reporting from katadata.
, 47.
5% of consumers admitted that they most often use Pantene shampoo.
As is known.
Pantene is a brand of nonenvironmentally friendly hair care products.
Meanwhile, when compared to Natur, which is an environmentally friendly hair care brand.
Natur is far behind 8% of users in Indonesia.
This shows that far more Indonesian people consume non-environmentally friendly hair care products.
The intense competition in the market requires environmentally friendly hair care brands to maintain their customer loyalty.
Customer loyalty is a key factor in the business environment due to its crucial role in achieving business success (Ammari dan Bilgihan, 2.
Achieving customer satisfaction is a prerequisite for achieving customer loyalty.
Based on product reviews on com .
, many consumers still express dissatisfaction with environmentally friendly hair care products and are reluctant to make repeat This should be a concern for businesses in the environmentally friendly hair care sector to maintain their customer loyalty.
Based on a survey reported by Statista.
, 15% of respondents stated that they did not believe they could make a difference by consuming environmentally friendly products or did not believe that consuming environmentally friendly products was something that was needed.
This shows that public trust in environmentally friendly products still needs to be improved.
Companies must be able to instill the belief that they can contribute to preserving the environment if they consume environmentally friendly products, one of which is hair care products.
Based on a survey reported by Statista.
around 32% of respondents in Indonesia stated that they do not adopt a sustainable lifestyle International Journal of Education.
Social Studies.
And Management (IJESSM) Volume 4.
Issue 2.
June 2024 Page 454-472 because they consider sustainable or environmentally friendly products to be too This indicates that many Indonesians have not yet experienced fairness or reasonable pricing in environmentally friendly products.
Additionally, other data also indicate that 62.
8% of 555 respondents in Indonesia cite affordable prices as their reason for using a shampoo brand .
id, 2.
This suggests that price fairness remains an important consideration for the majority of customers when repurchasing environmentally friendly hair care products.
Based on all the descriptions and arguments presented above, this research was conducted with the aim of comprehensively testing the influence of trust, perceived price fairness, and perceived value on customer loyalty through customer satisfaction with environmentally friendly hair care products.
Trust Trust is a critical hedonic value dimension in the service experience, which indicates the customer's need to feel that the service or product is reliable and safe to use (Komulainen dan Saraniemi, 2.
According to Xu et al.
customer trust emphasizes continuous customer support for the company and building trust when the company is faced with certain risks.
When customer trust is well maintained, customers will have a strong relationship with the brand and its products, and tend to recommend them to others.
Customers will be confident that the brand can provide quality products and services (Xu et al.
, 2.
Perceived Value Prior .
defines customer perceived value as a personal interpretation of the value offered by the seller, made by the buyer.
This involves considering the potential costs, benefits, and the likelihood that it will enable buyers to meet their needs.
According to Zailani et al.
perceived value is a subjective view of customers.
When customers realize the benefits of a product, they will ignore the costs of the product.
Micu et al.
stated that perceived value is the gap between customers' perceptions of what they spend .
osts and sacrifice.
and what they get .
uality, benefits and usefulnes.
Perceived Price Fairness Price fairness is an important element in achieving customer satisfaction and loyalty because it reflects the customer's view of the relationship between the price of a product and the value it provides (Saldanha et al.
, 2.
Foroudi et al.
define price fairness as a customer's assessment and related feelings regarding whether the difference between the price offered by the seller and the price offered by another party in a reasonable comparison is acceptable or According to Value et al.
perceived price fairness is a customer's International Journal of Education.
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And Management (IJESSM) Volume 4.
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June 2024 Page 454-472 affective and cognitive evaluation regarding whether the amount requested is considered fair, acceptable, or reasonable.
Customer Satisfaction Consumer satisfaction can be characterized as an assessment of how satisfied customers feel with the products, services, and performance of an organization (Ali et al.
, 2.
Satisfaction or dissatisfaction of an individual arises when they compare the performance or results they experience from a product with their expectations (Kotler dan Keller, 2.
According to Berners and Martin .
, customer satisfaction can be defined as the evaluation of the difference between the expectations held by customers and the perception of the experience they receive.
Customer satisfaction reflects customers' response to the quality offered by a company (Alareeni dan Hamdan, 2.
Customer Loyalty Customer loyalty is a component of expected behavior towards products or services provided by a company (Hayati et al.
, 2.
Consumers have different levels of loyalty to certain brands or companies.
According to Kotler dan Keller .
loyalty can be defined as a strong commitment to repurchase or resubscribe to a preferred product or service in the future even though situational influences and marketing efforts have the potential to cause a shift in behavior.
Wirtz dan Lovelock .
suggest that loyalty is the tendency to continue to support a company in the long term, often with exclusive loyalty.
Customer loyalty is more than just behavior, it includes customers' preferences, tendencies and intentions to interact with a company in the future (Wirtz dan Lovelock.
Trust and Customer Satisfaction Trust is very important in increasing customer satisfaction (Venkatakrishnan et al.
, 2.
Several researchers state that trust is a precursor to customer satisfaction and loyalty (Rita et al.
, 2.
Ishak and Saraih .
state that trust has a positive influence on customer satisfaction.
This is in line with research conducted by Chou et al.
that trust has a positive and significant effect on customer satisfaction.
H1: Trust has a positive and significant effect on customer satisfaction.
Perceived Value and Customer Satisfaction Perceived value is an important factor in forming customer satisfaction.
Customers will get satisfaction if what they get meets their expectations and desires (Kusumawati dan Rahayu, 2.
This is in accordance with the results of research conducted by Slack et al.
that perceived value has a positive influence on customer satisfaction.
H2: Perceived value has a positive and significant effect on customer satisfaction.
International Journal of Education.
Social Studies.
And Management (IJESSM) Volume 4.
Issue 2.
June 2024 Page 454-472 Perceived Price Fairness and Customer Satisfaction According to Kotler and Keller .
price sensitivity is interconnected with the level of customer satisfaction and dissatisfaction.
Customer satisfaction and dissatisfaction can be influenced by value for money, fair prices, special offers, and discounts (Uddin, 2.
Based on research conducted by Hidayat et .
perceived price fairness has a direct and positive effect on customer This is in line with research by Singh et al.
which shows that perceived price fairness has a positive and significant effect on customer H3: Perceived price fairness has a positive and significant effect on customer Trust and Customer Loyalty Customer trust in a product can be an effective tool for forming customer According to research by Omoregie et al.
trust has a positive and significant influence on customer loyalty.
This is in accordance with research conducted by Chanpariyavatevong et al.
which shows that trust has a positive and significant impact on customer loyalty.
H4: Trust has a positive and significant effect on customer loyalty.
Perceived Value and Customer Loyalty Perceived value is a strategic construct that enhances repurchase, relationship commitment, and customer loyalty (Chae et al.
, 2.
According to the research by Kusumawati dan Rahayu .
, perceived value has a positive effect on customer loyalty.
Similar findings are also suggested by Chanpariyavatevong et al.
, stating that perceived value directly influences customer loyalty positively.
H5: Perceived value has a positive and significant effect on customer loyalty.
Perceived Price Fairness and Customer Loyalty Reasonable and fair prices can increase the likelihood that customers will remain subscribed, but regular price increases can damage customer loyalty (Ahmed et al.
, 2.
According to research conducted by Yaqub et al.
perceived price fairness has a positive and significant influence on customer Hidayat et al.
also stated that perceived price fairness has a positive and significant influence on customer loyalty.
H6: Perceived price fairness has a positive and significant effect on customer Customer Satisfaction and Customer Loyalty Customer satisfaction will influence customer loyalty.
Yusof et al.
stated that satisfaction has a positive and significant effect on customer loyalty.
If customers are satisfied and the product meets their needs, they are more likely International Journal of Education.
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And Management (IJESSM) Volume 4.
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June 2024 Page 454-472 to buy it again.
This is in line with the results of research conducted by Omoregie et al.
that customer satisfaction has a positive and significant influence on customer loyalty.
H7: Customer satisfaction has a positive and significant effect on customer Figure 1.
Research Framework Source: Data processed by author .
RESEARCH METHODE This research uses quantitative methods to collect data regularly and uses statistical analysis to find patterns and relationships between variables.
Quantitative methods can provide clarity and accuracy in measuring how independent variables influence the dependent variable.
This research was conducted for six months, starting from September 2023 to February 2024 in the DKI Jakarta area.
Data and Sample The sampling technique used in this research is purposive sampling and will be analyzed using structural equation modeling (SEM).
Hair et al.
stated that a minimum sample size of 200 is required for structural equation modeling (SEM) analysis.
Based on this statement, the researcher will use a sample of 250 respondents.
The characteristics of respondents required for this research are:
Have purchased environmentally friendly hair care products at least three times in the last year.
Aged between 18 and 60 years .
roductive ag.
Domiciled in DKI Jakarta.
International Journal of Education.
Social Studies.
And Management (IJESSM) Volume 4.
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June 2024 Page 454-472 Data Collection Techniques Researchers used primary data in this research.
Primary data used in this research was obtained from questionnaires distributed to 250 respondents who used environmentally friendly hair care products in DKI Jakarta.
Data Analysis Techniques The data analysis technique used to process and analyze the data in this research is SPSS Version 26 and AMOS.
Researchers use SPSS to test validity and reliability, while AMOS to test Confirmatory Factor Analysis (CFA) and hypothesis testing.
RESULT AND DISCUSSION
Respondent Characteristics Table 1.
Characteristics of Respondents Based on the Type of Environmentally Friendly Cosmetic Products Used Product Brand
Eucalie Good Virtues Natur
OC Naturals Sensatia
Botanicals Sukin
The Body Shop
Others Total
Amo-unt
0,8%
7,9%
31,5%
3,1%
5,9%
15,7%
34,3%
0,8%
Table 1 shows that The Body Shop is the environmentally friendly hair care product brand most consumed by respondents.
Table 2.
Characteristics of Respondents Based on Period of Use of Environmentally Friendly Hair Care Products Duration of Amount
Product Use < 1 Year
40,6%
1-3 Years 46,5% 4-6 Years 10,6% > 6 Years 2,4% Total International Journal of Education.
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And Management (IJESSM) Volume 4.
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June 2024 Page 454-472 Table 2 shows that the majority of respondents have used environmentally friendly hair care products for 1-3 years.
Table 3.
Characteristics of Respondents Based on Number of Purchases of Environmentally Friendly Hair Care Products in the Last Year Number of Product Amount Purchases 3 Times 51,2% 4 Times 22,8% 5 Times 10,2% > 5 Times 15,7% Total Table 3 shows that most respondents have purchased environmentally friendly hair care products 3 times in the last year.
Table 4.
Characteristics of Respondents Based on Gender
No Gender Amount
Men
40,9%
2 Women
59,1%
Total Table 4 shows that the majority of respondents are women, which means that more women are interested in using environmentally friendly body hair products than men.
Table 5.
Characteristics of Respondents Based on Age
Age
Amount
18-29 Years 238
93,7%
30-47 Years 14
5,5%
48-60 Years 2
0,8%
Total Table 5 shows that the majority of respondents who use environmentally friendly hair care product s are aged 18-29 years.
International Journal of Education.
Social Studies.
And Management (IJESSM) Volume 4.
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June 2024 Page 454-472 Table 6.
Characteristics of Respondents Based on Domicile No Domicile Amount
West
10,6%
Jakarta
Central
20,1%
Jakarta
South
15,4%
Jakarta
East Jakarta 99
39,0%
North
15,0%
Jakarta Total Table 6 shows that the majority of respondents who consume environmentally friendly hair care products live in East Jakarta.
Table 7.
Characteristics of Respondents Based on Last Education Last Educational Amount
Background
< High
0,4%
school/equivalent High
60,6%
school/equivalent Diploma
5,9%
32,3%
0,8%
Total Table 7 shows that the majority of respondents who use environmentally friendly hair care products have a high school education or equivalent.
Table 8.
Characteristics of Respondents Based on Employment Status
Employment
Amo-unt
Status
Civil Servant
1,2%
International Journal of Education.
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And Management (IJESSM) Volume 4.
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Private Employees Student
Entrepreneur
Retiring Others Total
26,0%
68,8%
0,8%
3,1%
Table 8 shows that the majority of respondents who use environmentally friendly hair care products are students.
Table 9.
Characteristics of Respondents Based on Marital Status
Marital Amount
Status
Unmarried 239
94,1%
Married 5,9% Divorce Spouse Dies Total Table 9 shows that the majority of respondents who use environmentally friendly hair care products are unmarried.
Validity and Reliability Test Based on table 10, it can be seen that the loading factor values for all indicators in this research can be declared valid.
Then the Cronbach's Alpha value for all variables is > 0.
7, which means reliable.
Table 10.
Validity and Reliability Test Results Factor
CronbachAos Name
Variables and Indicators Loading Alpha
Trust
0,889
Ts4 I feel confident in environmentally friendly hair care products that keep their promises 0,878 and commitments.
Ts3 I feel that this environmentally friendly hair
0,845
care product is reliable International Journal of Education.
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Ts5
Ts1
Ts2
PV3
PV4
PV2
PV1
PV5
I trust the labels or logos of quality environmentally friendly hair care
I feel that the performance of this environmentally friendly hair care product
meets expectations I feel that environmentally friendly hair care
products can be trusted Perceived Value I think this environmentally friendly hair
care product meets my needs well
In my opinion, environmentally friendly hair care products have advantages In my opinion, environmentally friendly hair care products have a good function
Environmentally friendly hair care products are useful for long-term use Environmentally friendly hair care products are high value products Perceived Price Fairness PPF3 The price of environmentally friendly hair
care products is acceptable PPF4 The price of eco-friendly hair care products is justifiable PPF2 Prices for environmentally friendly hair care
products are fair
PPF5 I buy environmentally friendly hair care
products because the price matches the benefits offered PPF1 Prices for environmentally friendly hair care
products are reasonable Customer Satisfaction CS4
CS2
CS3
Eco-friendly hair care products meet my Buying environmentally friendly hair care products is the right decision Overall.
I am satisfied with environmentally friendly hair care products 0,817 0,816 0,813 0,899 0,880 0,877 0,838 0,821 0,809 0,887 0,895 0,862 0,858 0,790 0,771 0,874 0,874 0,833 0,829 International Journal of Education.
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CS5
CS1
CL5
CL4
CL3
CL1
CL2
I am very satisfied with the ease of use of 0,800 environmentally friendly hair care products I love buying environmentally friendly hair 0,752 care products Customer Loyalty 0,856 Environmentally friendly hair care products 0,866 will be my first choice when I need to buy hair care products.
I still use environmentally friendly hair care 0,829 products, whatever the price I would recommend eco-friendly hair care 0,779 products to others I always buy environmentally friendly hair 0,766 care products I will buy eco-friendly hair care products in 0,753 the future Confirmatory Factor Analysis (CFA) Test Table 11 shows the results of the Confirmatory Factor Analysis (CFA) test.
The test results show that all index values meet the suitability requirements and are declared fit.
Table 11.
Confirmatory Factor Analysis (CFA) Test Results CMIN/DF GFI
RMSR
Cut off
Value Ou 0,05 O 2,00 Ou 0,9 < 0,05 RMSEA
AGFI
TLI
CFI
O 0,08
Ou 0,9 Ou 0,9 Ou 0,9 Index
0,105
1,365
0,974
0,018
Evaluation Model Fitted Fitted Fitted Fitted 0,038 0,943 0,987 0,993 Fitted Fitted Fitted Fitted Result Hypothesis Test Based on table 12, the t value results conclude that H1 is accepted because the t value > 1.
96 means that trust is stated to have a positive and significant influence on customer satisfaction.
H2 is accepted because the t value > 1.
means that the perceived value is stated to have a positive and significant effect International Journal of Education.
Social Studies.
And Management (IJESSM) Volume 4.
Issue 2.
June 2024 Page 454-472 on customer satisfaction.
H3 is accepted because the t value > 1.
96 means that perceived price fairness is stated to have a positive and significant effect on customer satisfaction.
H4 is accepted because the t value > 1.
96 means that trust is stated to have a positive and significant effect on customer loyalty.
H5 is accepted because the t value > 1.
96 means that perceived value is stated to that trust is stated to have a positive and significant effect on customer loyalty.
H5 is accepted because the t value > 1.
96 means that perceived value is stated to have a positive and significant effect on customer loyalty.
H6 is not accepted because the t value < 1.
96 means that perceived price fairness is stated to have no influence on customer loyalty.
H7 is accepted because the t value > 1.
96 means that customer satisfaction is stated to have a positive and significant effect on customer loyalty.
Table 12.
Hypothesis Test Result
Independe Dependent Hypothes nt Variable Variable PPF
PPF
IeCS IeCS IeCS IeCL IeCL IeCL -valu.
*** Standardiz
Regression Weight
0,207
0,435
0,248
0,288
0,196
0,128
Hypoth Test Result Accepted Accepted Accepted Accepted Accepted Refused The Relation Between Trust and Customer Satisfaction The trust variable on customer satisfaction has a standardized regression weights value of 0.
435 and C.
(Critical Rati.
355 > 1.
96, so trust is stated to have a positive and significant effect on customer satisfaction.
This shows that positive trust will influence customer satisfaction when purchasing environmentally friendly hair care products.
The results of this research are in accordance with research conducted by Ishak and Saraih .
and Chou et al.
who stated that trust has a positive and significant relationship with customer satisfaction.
The Relation Between Perceived Value and Customer Satisfaction The perceived value variable on customer satisfaction has a standardized regression weights value of 0.
435 and C.
amounting to 5.
118 > 1.
96, then perceived value is stated to have a positive and significant effect on customer International Journal of Education.
Social Studies.
And Management (IJESSM) Volume 4.
Issue 2.
June 2024 Page 454-472 This shows that positive perceived value will influence customer satisfaction when purchasing environmentally friendly hair care products.
The results of this research are in accordance with research conducted by Suttikun dan Meeprom .
Chou et al.
, and Slack et al.
who stated that perceived value has a positive and significant relationship with customer The Relation Between Perceived Price Fairness and Customer Satisfaction The perceived price fairness variable on customer satisfaction has a standardized regression weights value of 0.
248 and C.
704 > 1.
96, then perceived price fairness is stated to have a positive and significant effect on customer satisfaction.
This shows that perceived price fairness will positively influence customer satisfaction when purchasing environmentally friendly hair care products.
The results of this study are in accordance with research conducted by Singh et al.
and Hidayat et al.
who stated that perceived price fairness has a positive and significant relationship with customer The Relation Between Trust and Customer Loyalty The trust variable towards customer loyalty has a standardized regression weights value of 0.
288 and C.
135 > 1.
96, then trust is stated to have a positive and significant effect on customer loyalty.
This shows that positive trust will influence customer loyalty in purchasing environmentally friendly hair care The results of this study are in accordance with research conducted by Chanpariyavatevong et al.
and Omoregie et al.
who stated that trust has a positive and significant relationship with customer loyalty.
The Relation Between Perceived Value and Customer Loyalty The variable perceived value towards customer loyalty has a standardized regression weights value of 0.
196 and C.
002 > 1.
96, then perceived value is stated to have a positive and significant effect on customer loyalty.
This shows that positive perceived value will influence customer loyalty when purchasing environmentally friendly hair care products.
The results of this study are in accordance with research conducted by Chanpariyavatevong et al.
and Kusumawati dan Rahayu .
who stated that perceived value has a positive and significant relationship with customer loyalty.
The Relation Between Perceived Price Fairness and Customer Loyalty The perceived price fairness variable on customer loyalty has a standardized regression weights value of 0.
128 and C.
330 < 1.
96, so perceived price fairness is stated to have no significant effect on customer loyalty.
Thus, the sixth hypothesis which states that perceived price fairness has a positive and significant effect on customer loyalty is rejected.
This shows that International Journal of Education.
Social Studies.
And Management (IJESSM) Volume 4.
Issue 2.
June 2024 Page 454-472 there is no positive influence between perceived price fairness and environmentally friendly hair care products.
The results of this study are not in line with research conducted by Yaqub et al.
and Hidayat et al.
which states that perceived price fairness has a positive and significant effect on customer loyalty.
However, the results of this study are in accordance with research conducted by Octaviani et al.
which states that there is no significant influence between perceived price fairness and customer loyalty.
The Relation Between Customer Satisfaction and Customer Loyalty The variable customer satisfaction towards customer loyalty has a standardized regression weights value of 0.
285 and C.
677, which means it is greater than 1.
96, then customer satisfaction is stated to have a positive and significant effect on customer loyalty.
The results of this research are in accordance with research conducted by Yusof et al.
and Omoregie et al.
who stated that customer satisfaction has a positive and significant relationship with customer loyalty.
CONCLUSION
This research tests several hypotheses about the factors that influence customer satisfaction and loyalty.
The first finding shows that trust positively and significantly influences customer satisfaction, thereby confirming the importance of building and maintaining customer trust.
The second finding highlights that perceived value also has a positive and significant effect on customer satisfaction, emphasizing the need for companies to improve the quality and value of their products.
The third finding shows that perceptions of price fairness also have a positive impact on customer satisfaction, underscoring the importance of fair pricing in the context of the value provided.
Additionally, the study found that trust and perceived value also influence customer loyalty, while the relationship between perceived price fairness and customer loyalty is not always so direct or significant.
In conclusion, customer satisfaction plays a key role in building customer loyalty, and factors such as trust, perceived value, and price perception play an important role in this process.
REFERENCES