The Impact of Electronic Word of Mouth (eWOM) and Perceived Value on Young Customers’ Purchase Intention for Open-Shelf Cosmetic Products Shopping at Physical Drugstores

Abstract

The cosmetic industry is currently thriving as people gain satisfaction in purchasing beauty-enhancing products. The purpose of this study is to investigate the impact of eWOM and perceived value on young customers’ purchase intention for open-shelf cosmetics products shopping at physical drugstores. The target respondents ranged from 15 to 24 years old, as the young generation contributes to a large portion of the cosmetic market. 243 valid questionnaires were received from people who have purchased cosmetic products once in six months in Taiwan. The confirmatory factor analysis and structural equation model were adopted to analyze the relationship between three constructs: eWOM, perceived value, and purchase intention. The results suggest that perceived value impacts purchase intention positively and directly, while eWOM impacts purchase intention indirectly. This result regarding the consumer behavior of young customers could be utilized in the cosmetic industry's marketing strategy to enhance the sales profit and product competitiveness.