Analyzing the impact of KOL Marketing toward Consumer Decision Making Process in Selecting Cosmetic Product/Service: The Case Study in HCMC

Abstract

Internet has been the primary source of information over the globe and it has dramatically changed the consumer behavior. One of the main changes in modern consumers is that they can actively evaluate information source before making purchase action. Internet enables customers to share their opinions on, and experiences with, goods and services with a multitude of other consumers. This growing expansion of Internet has been creating a variety way to gather product information including other consumers' comments, posted on the Internet, and has provided consumers opportunities to offer their own consumption-related advice by engaging in electronic word-of-mouth (e-WOM). KOL Marketing (key opinion leaders) is one of the most outstanding and trendy strategies to optimize influence effects on customers, especially in cosmetic industry which is predicted to reach approximately $129 million by 2023. The aim of this study is to assess the impact of KOL Marketing on consumer decision making process of cosmetic products. This empirical study also focuses on the relationship between persuasive e-WOM messages (represents for KOL Marketing) and information acceptance leading to consumers’ purchase intention. An instrument was prepared to measure the proposed constructs, with questionnaire items taken from prior studies but adapted to fit the context of Vietnam e-WOM. Data collected from an online and offline survey of 430 individuals that living in Ho Chi Minh City and using Internet. The data was analyzed using the SPSS and AMOS tools. This research will determine factors of an effective e-WOM messages which directly affect consumers toward selecting cosmetic products. Finally, the potential implications are discussed.