FACTORS AFFECTING CUSTOMER RETENTION IN SHOPPING BEAUTY PRODUCTS ON MULTICHANNEL: SURVEY IN BALI

Abstract

This research, titled "Factors Affecting Customer Retention in Shopping Beauty Products on Multichannel: A Survey in Bali," aimed to explore how various factors such as product variety, social media marketing, price perception, electronic word-of-mouth (e-WOM), perceived benefits, and trust impact customer retention. The quantitative study involved administering a questionnaire with 37 items to 467 respondents in Bali who were regular online purchasers of beauty products. Purposive sampling was used to select the respondents, ensuring that the data represented the target population. The data analysis used the structural equation modeling technique in AMOS version 24.0. The findings revealed several insights: e-WOM was found to significantly influence trust, while perceived benefits did not impact trust. Social media marketing showed a significant effect on trust. Interestingly, product variety did not affect customer retention, nor did social media marketing impact retention. However, price perception and trust were significant factors influencing customer retention. Moreover, e-WOM also had a substantial effect on retaining customers. This study is distinctive in its approach as it is the first to investigate the combined impact of product variety, social media marketing, e-WOM, perceived benefits, trust, and customer retention in the context of online beauty product shopping in Bali. These findings provide valuable insights for businesses in the beauty industry, especially those operating in multichannel retail environments.