Purchase Intention Model Based on Storytelling, Product Innovation, Value Co-Creation, and Empowerment of Farmers in Indonesian Natural Cosmetic Products

Authors

DOI:

https://doi.org/10.55908/sdgs.v11i6.1087

Keywords:

farmer empowerment, Indonesia, natural cosmetic, purchase intention

Abstract

Objective: This study aimed to examine and explain the effect of storytelling and product innovation on the purchase intention of cosmetics made from natural ingredients through value co-creation and moderated by farmer empowerment.

 

Method: The method used is a quantitative approach using Structural Equation Model Partial Least Square (SEM-PLS) models technique on SmartPLS 3.0. The sampling technique used is a non-probability sampling technique, and the respondent was natural cosmetic users in Indonesia.

 

Results: The results show that storytelling is related to purchase intention and is also related to value co-creation which in the end value co-creation can increase purchase intention. In addition, product innovation can also increase purchase intention and value co-creation, which can escalate purchase intention. Empowerment does not significantly affect purchase intention directly, but the empowerment that moderates storytelling proves to exert a significant influence on purchase intention. Value co-creation significantly mediated the effect of storytelling on purchase intention, and it mediated the effect of product innovation on purchase intention.

 

Conclusion: New product innovations are proven to have a significant effect on the purchase intention and value co-creation process. Value co-creation is proven to be able to increase purchase intention and also able to mediate storytelling and product innovation to increase purchase intention. Finally, farmer empowerment has been able to provide reinforcement when storytelling seeks to increase purchase intention.

References

Amoah, J., & Jibril, A. B. (2021). Social Media as a Promotional Tool Towards SME’s Development: Evidence from the Financial Industry in a Developing Economy. Cogent Business and Management, 8(1). https://doi.org/10.1080/23311975.2021.1923357

Askadilla, W. L., & Krisjanti, M. N. (2017). Understanding Indonesian Green Consumer Behaviour on Cosmetic Products: Theory of Planned Behaviour Model. Polish Journal of Management Studies, 15(2), 7–15. https://doi.org/10.17512/pjms.2017.15.2.01

Atristain-Suárez, C., & García-Álvarez, S. (2020). Narrative and Family Business Firms: A Discourse Framework Toward Continuity and Competitiveness. In Strategy, Power and CSR: Practices and Challenges in Organizational Management (pp. 101–118). Emerald Publishing Limited. https://doi.org/10.1108/978-1-83867-973-620201005

Bai, Y. (2018). How Does Co-Creation Affect Customer’s Purchase Intention? Journal of Industrial Integration and Management, 03(01), 1850005. https://doi.org/10.1142/S2424862218500057

Bom, S., Jorge, J., Ribeiro, H. M., & Marto, J. (2019). A step forward on sustainability in the cosmetics industry: A review. In Journal of Cleaner Production (Vol. 225, pp. 270–290). Elsevier Ltd. https://doi.org/10.1016/j.jclepro.2019.03.255

Bstieler, L., Gruen, T., Akdeniz, B., Brick, D., Du, S., Guo, L., Khanlari, M., McIllroy, J., O’Hern, M., & Yalcinkaya, G. (2018). Emerging Research Themes in Innovation and New Product Development: Insights from the 2017 PDMA‐UNH Doctoral Consortium. Journal of Product Innovation Management, 35(3), 300–307. https://doi.org/10.1111/jpim.12447

Chen, J.-S., Kerr, D., Chou, C. Y., & Ang, C. (2017). Business co-creation for service innovation in the hospitality and tourism industry. International Journal of Contemporary Hospitality Management, 29(6), 1522–1540. https://doi.org/10.1108/IJCHM-06-2015-0308

Concepción, E., Gervás, P., & Méndez, G. (2017). An API-based Approach to Co-creation in Automatic Storytelling. https://www.researchgate.net/publication/321918076

Corazza, M., Borghi, A., Lauriola, M., & Virgili, A. (2009). Use of topical herbal remedies and cosmetics: a questionnaire-based investigation in dermatology out-patients. Journal of the European Academy of Dermatology and Venereology, 23(11), 1298–1303. https://doi.org/10.1111/j.1468-3083.2009.03314.x

Cova, B., Dalli, D., & Zwick, D. (2011). Critical perspectives on consumers’ role as ‘producers’: Broadening the debate on value co-creation in marketing processes. Marketing Theory, 11(3), 231–241. https://doi.org/10.1177/1470593111408171

Delgado-Ballester, E., & Munuera-Alemán, J. L. (2005). Does brand trust matter to brand equity? Journal of Product and Brand Management, 14(3), 187–196. https://doi.org/10.1108/10610420510601058

Ericska, R. A., Maureen Nelloh, L. A., & Pratama, S. (2022). Purchase intention and behavioural use of freemium mobile games during Covid-19 outbreak in Indonesia. Procedia Computer Science, 197(2021), 403–409. https://doi.org/10.1016/j.procs.2021.12.156

Erjavec, J., & Manfreda, A. (2022). Online shopping adoption during COVID-19 and social isolation: Extending the UTAUT model with herd behavior. Journal of Retailing and Consumer Services, 65(November 2021), 102867. https://doi.org/10.1016/j.jretconser.2021.102867

Fonseca-Santos, B., Corrêa, M. A., & Chorilli, M. (2015). Sustainability, natural and organic cosmetics: consumer, products, efficacy, toxicological and regulatory considerations. Brazilian Journal of Pharmaceutical Sciences, 51(1), 17–26. https://doi.org/10.1590/S1984-82502015000100002

Fu, W., Wang, Q., & Zhao, X. (2017). The influence of platform service innovation on value co-creation activities and the network effect. Journal of Service Management, 28(2), 348–388. https://doi.org/10.1108/JOSM-10-2015-0347

Gebashe, F. C., Naidoo, D., Amoo, S. O., & Masondo, N. A. (2022). Cosmeceuticals: A Newly Expanding Industry in South Africa. In Cosmetics (Vol. 9, Issue 4). MDPI. https://doi.org/10.3390/cosmetics9040077

Gerstell, E., Marchessou, S., Schmidt, J., & Spagnuolo, E. (2020). How COVID-19 is changing the world of beauty.

Ghozali, I., & Fuad. (2006). Structural equation modeling : teori, konsep, & aplikasi dengan program Lisrel 8.54. Badan Penerbit Unversitas Diponegoro .

Hansen, A. V. (2017). What stories unfold: empirically grasping value co-creation. European Business Review, 29(1), 2–14. https://doi.org/10.1108/EBR-08-2015-0080

Hartini, S. (2012). Peran Inovasi: Pengembangan Kualitas Produk dan Kinerja Bisnis. Jurnal Manajemen Dan Kewirausahaan, 14(1), 82–88. https://doi.org/10.9744/jmk.14.1.83-90

Horn, D., & Salvendy, G. (2006). Consumer-based assessment of product creativity: A review and reappraisal. Human Factors and Ergonomics in Manufacturing & Services Industries, 16(2), 155–175.

Indriastuti, H. (2019). Entrepreneurial Inattentiveness, Relational Capabilities And Value Co-Creation To Enhance Marketing Performance. Humanities & Social Sciences Reviews, 7(3), 181–188. https://doi.org/10.18510/hssr.2019.7328

Irshad, M., Ahmad, M. S., & Malik, O. F. (2020). Understanding consumers’ trust in social media marketing environment. International Journal of Retail & Distribution Management, 48(11), 1195–1212. https://doi.org/10.1108/IJRDM-07-2019-0225

Kalyani, S. R. (2021). Impact of Covid-19 on Personal Care Products in India: A Study with Special Reference to Beauty and Cosmetic Products and Personal Hygiene Products. JournalNX-A Multidisciplinary Peer Reviewed Journal , 7(2), 39–44.

Kanten, S., & Yaslioglu, M. (2012). Role of Innovation in Creating Customer Value in Hotel Establishments: A Study on Managers. Suleyman Demirel University The Journal of Faculty of Economics and Administrative Sciences Y, 17(2), 437–449.

Kao, D. T. (2019). The impact of envy on brand preference: brand storytelling and psychological distance as moderators. Journal of Product & Brand Management, 28(4), 515–528. https://doi.org/10.1108/JPBM-08-2018-2004

Kemp, E., Porter III, M., Anaza, N. A., & Min, D.-J. (2021). The impact of storytelling in creating firm and customer connections in online environments. Journal of Research in Interactive Marketing, 15(1), 104–124. https://doi.org/10.1108/JRIM-06-2020-0136

Killa, M. F. (2014). Effect of Entrepreneurial Innovativeness Orientation, Product Innovation, and Value Co-Creation on Marketing Performance. Journal of Research in Marketing, 2(3), 198. https://doi.org/10.17722/jorm.v2i3.73

Kim, H.-J., Park, S.-Y., & Park, H.-Y. (2018). A Study on the Effect of Storytelling Marketing on Brand Image and Brand Attitude. International Convergence Management Association, 6(4), 1–16. https://doi.org/10.20482/jemm.2018.6.4.1

Kryger, A. (2017). Telling stories to aid strategy formulation: the crucial role of the interviewer. Strategic Direction, 33(5), 11–13.

Leclercq, T., Poncin, I., & Hammedi, W. (2017). The Engagement Process During Value Co-Creation: Gamification in New Product-Development Platforms. International Journal of Electronic Commerce, 21(4), 454–488. https://doi.org/10.1080/10864415.2016.1355638

Lee, S. M., Olson, D. L., & Trimi, S. (2012). Co‐innovation: convergenomics, collaboration, and co‐creation for organizational values. Management Decision, 50(5), 817–831. https://doi.org/10.1108/00251741211227528

Lim, H., & Childs, M. (2020). Visual storytelling on Instagram: branded photo narrative and the role of telepresence. Journal of Research in Interactive Marketing, 14(1), 33–50. https://doi.org/10.1108/JRIM-09-2018-0115

Lundqvist, A., Liljander, V., Gummerus, J., & van Riel, A. (2013). The impact of storytelling on the consumer brand experience: The case of a firm-originated story. Journal of Brand Management, 20(4), 283–297. https://doi.org/10.1057/bm.2012.15

Nikhashemi, S. R., & Delgado-Ballester, E. (2022). Branding antecedents of consumer need for uniqueness: a behavioural approach to globalness vs. localness. Journal of Marketing Communications, 28(4), 392–427. https://doi.org/10.1080/13527266.2021.1881807

O’Cass, A., & Ngo, L. V. (2012). Creating superior customer value for B2B firms through supplier firm capabilities. Industrial Marketing Management, 41(1), 125–135. https://doi.org/10.1016/j.indmarman.2011.11.018

Paharia, N., Keinan, A., Avery, J., & Schor, J. B. (2011). The Underdog Effect: The Marketing of Disadvantage and Determination through Brand Biography. Journal of Consumer Research, 37(5), 775–790. https://doi.org/10.1086/656219

Pop, R. A., Saplacan, Z., & Alt, M. A. (2020). Social media goes green-the impact of social media on green cosmetics purchase motivation and intention. Information (Switzerland), 11(9). https://doi.org/10.3390/INFO11090447

Prahalad, C. K., & Ramaswamy, V. (2004). Co-creation experiences: The next practice in value creation. Journal of Interactive Marketing, 18(3), 5–14. https://doi.org/10.1002/dir.20015

Rubin, C. B., & Brod, B. (2019). Natural Does Not Mean Safe—The Dirt on Clean Beauty Products. JAMA Dermatology, 155(12), 1344. https://doi.org/10.1001/jamadermatol.2019.2724

Sanders, J., & van Krieken, K. (2018). Exploring Narrative Structure and Hero Enactment in Brand Stories. Frontiers in Psychology, 9. https://doi.org/10.3389/fpsyg.2018.01645

Sarmah, B., Kamboj, S., & Kandampully, J. (2018). Social media and co-creative service innovation: an empirical study. Online Information Review, 42(7), 1146–1179. https://doi.org/10.1108/OIR-03-2017-0079

Satria, D., Soewardi, T. J., & Wibowo, J. M. (2023). Smart governance: Payment transaction electronification acceptance in North Sumatra Province, Indonesia. Ekonomski Horizonti, 25(1), 85–99. https://doi.org/10.5937/ekonhor2301085S

Schmidt, H. J., & Steenkamp, P. (2019). The Underdog Effect in the Context of Brand Management: An Abstract (pp. 679–680). https://doi.org/10.1007/978-3-030-02568-7_184

Sok, P., O’Cass, A., & Sok, K. M. (2013). Achieving Superior SME Performance: Overarching Role of Marketing, Innovation, and Learning Capabilities. Australasian Marketing Journal, 21(3), 161–167. https://doi.org/10.1016/j.ausmj.2013.04.001

Spohrer, J., & Maglio, P. P. (2008). The Emergence of Service Science: Toward Systematic Service Innovations to Accelerate Co-Creation of Value. Production and Operations Management, 17(3), 238–246. https://doi.org/10.3401/poms.1080.0027

Steenkamp, J.-B. E. M., Batra, R., & Alden, D. L. (2003). How perceived brand globalness creates brand value. Journal of International Business Studies, 34(1), 53–65. https://doi.org/10.1057/palgrave.jibs.8400002

Suhartini, T., Muafi, M., Widodo, W., & Suprihanto, J. (2023). Generating Sustainable Organizational Commitment of Indonesian Lecturers: The Role of Psychological Contract Through Spiritual Perspective. Journal of Law and Sustainable Development, 11(5), e748. https://doi.org/10.55908/sdgs.v11i5.748

Sumodiningrat, G. (1999). Jaring Pengaman Sosial dan Pemberdayaan Masyarakat. Journal of Indonesia Economy and Business, 14(3).

Suswardany, D. L., Sibbritt, D. W., Supardi, S., Pardosi, J. F., Chang, S., & Adams, J. (2017). A cross-sectional analysis of traditional medicine use for malaria alongside free antimalarial drugs treatment amongst adults in high-risk malaria endemic provinces of Indonesia. PLOS ONE, 12(3), e0173522. https://doi.org/10.1371/journal.pone.0173522

Thirumoorthy, K., & Muneeswaran, K. (2023). An application of text mining techniques and outcome based education: student recruitment system. Journal of Ambient Intelligence and Humanized Computing, 14(3), 1359–1371. https://doi.org/10.1007/s12652-021-03162-4

Tilaar, K., Mulyana, A., Komaladewi, R., & Saefullah, K. (2023). Exploratory analysis of natural cosmetic products purchase intention: Evidence from Jakarta, Indonesia. Uncertain Supply Chain Management, 11(4), 1635–1644. https://doi.org/10.5267/j.uscm.2023.7.005

Tsai, M.-C. (2020). Storytelling Advertising Investment Profits in Marketing: From the Perspective of Consumers’ Purchase Intention. Mathematics, 8(10), 1704. https://doi.org/10.3390/math8101704

Üçok Hughes, M., Bendoni, W. K., & Pehlivan, E. (2016). Storygiving as a co-creation tool for luxury brands in the age of the internet: a love story by Tiffany and thousands of lovers. Journal of Product & Brand Management, 25(4), 357–364. https://doi.org/10.1108/JPBM-09-2015-0970

Utomo, H. J. N., Irwantoro, I., Wasesa, S., Purwati, T., Sembiring, R., & Purwanto, A. (2023). Investigating The Role of Innovative Work Behavior, Organizational Trust, Perceived Organizational Support: An Empirical Study on SMEs Performance. Journal of Law and Sustainable Development, 11(2), e417. https://doi.org/10.55908/sdgs.v11i2.417

Van Klyton, A., Tavera-Mesias, J.-F., & Castaño-Muñoz, W. (2022). Value co-creation and co-destruction in the first cashless society in Colombia – a middle range theory approach. Information Technology and People, 35(4), 1298–1325. https://doi.org/10.1108/ITP-05-2020-0273

Voelpel, S. C., von Pierer, H., & Streb, C. K. (2006). Mobilizing organizations for innovation and value creation: an integrated model of the mobile company. Journal of Knowledge Management, 10(6), 5–21. https://doi.org/10.1108/13673270610709189

Williams, A., Atwal, G., & Bryson, D. (2020). Developing a storytelling experience: the case of craft spirits distilleries in Chicago. International Journal of Wine Business Research, 32(4), 555–571. https://doi.org/10.1108/IJWBR-06-2019-0040

Yaşlıoğlu, M., Çalışkan, B. Ö. Ö., & Şap, Ö. (2013). The Role of Innovation and Perceived Service Quality in Creating Customer Value: A Study on Employees of a Call Center Establishment. Procedia - Social and Behavioral Sciences, 99, 629–635. https://doi.org/10.1016/j.sbspro.2013.10.533

Downloads

Published

2023-09-15

How to Cite

Tilaar, K., Mulyana, A., Komaladewi, R., & Saefullah, K. (2023). Purchase Intention Model Based on Storytelling, Product Innovation, Value Co-Creation, and Empowerment of Farmers in Indonesian Natural Cosmetic Products. Journal of Law and Sustainable Development, 11(6), e1087. https://doi.org/10.55908/sdgs.v11i6.1087