SOCIAL INFLUENCE AND ONLINE IMPULSE BUYING OF INDONESIAN INDIE COSMETIC PRODUCTS

As part of social influence, online reviews provide important information and peers as consumer socialization agents had shown that they affect on consumers’ online shopping behavior. This study aims to identify how Indonesian indie cosmetic products can generate online impulse buying. To do so, a research model combining theories of online reviews and peers influence along with browsing and peer communication was used. Further, this research had 173 participants on the online survey that was conducted in Greater Area of Jakarta, Indonesia. The data results were analyzed using structural modeling equation, specifically partial least square method. Results show how hedonic value of online reviews have influence on browsing while tie strength with peers and identification with peer group have influence on peer communication; that then encourage urge to buy impulsively that stimulates impulse buying behavior


INTRODUCTION
For the past few years, many new Indonesian cosmetic brands were established online (CNN Indonesia), most of which are indie cosmetic brands such as: Polka, Rollover Reaction, BLP by Lizzie Parra, ESQA Cosmetics and many more. Indie brands are referred to those brands that have distinct purpose of a niche, independently funded, has artisanal quality on design and functionality, and also has unconventional marketing (Mintel, 2018). Therefore, these indie cosmetic brands are referred to as the brands established by celebrities, influencers (social media) and self-labeled cosmetics entrepreneurs and not under major corporate label companies. Most of these indie cosmetic brands were first established online and these brands had been trending between Indonesian women and had reach success and fame under 5 years since their establishment

LITERATURE REVIEW
Cheng et al., (2016) suggested that social influence plays an important role in impulse buying behavior. Previous researches discussing social influence, found that shopping with peers increases impulse buying behavior (Luo, 2005). Further, as social influence, online reviews being form of online verbal communication, is believed to have influence in consumer decision making (Cheung and Thadani, 2012). Therefore, both peers influence, and online reviews is seen to be a relevant social influence. Based on the information gained from the literature, the author wishes to examine the relationship of two social influence, namely online reviews and peers influence, with impulse buying behavior that occur online (Anaza, N. A., 2014).
Prior making purchases, online reviews had been used by consumers a lot these days. It is used to check on the products, services and the online retailers to reduce uncertainty, verify the purchase that is about to be made and inform other future consumers on the product or services based on the perspective of previous consumers (Dellarocaz, 2003). Many previous studies had stated the importance of online reviews on the consumers' purchasing behavior. With many studies highlighting the importance of online reviews, only several had examined if and how online reviews lead to impulse buying behavior (Kuo, Y. F., & Wu, C. M., 2012). Satisfaction and post-purchase intentions with service recovery of online shopping websites (Jeon, S., & Kim, J. S., 2016 (2), 127-138. Zhang and Xu (2018) proved that browsing facilitates online reviews as perceived in value by customers, utilitarian and hedonic, in generating online impulse buying behavior.
As another part of social influence, peers are known as the primary socialization agents that works beyond family members (Köhler et al., 2011;Moschis and Churchill, 1978). Consumers tend to communicate with peers about their consumption matters, where peers can create great influence on their attitudes toward the products and/or services (Churchill and Moschis, 1979). Frequent communication with peers on consumption matters drives even stronger social consumption motivations (Shim, 1996). Therefore, it is important to examine the role of peer communication on impulse buying. Previous researches had examined on the matter. Wang et al., (2012) had previously proved that peer communication in social media, along with its two antecedents: individual-level tie strength and group-level identification with the peer group, are positively associated with impulse buying behavior.

Hyphothesis
Perceived Value of Online Reviews. Dellarocas (2003) stated that word-of-mouth (WOM) is perceived by the consumers to be more credible and effective than marketer-generated content (such as: advertisement and product information by marketers). Online reviews as the electronic form of WOM, is defined as any positive or negative online consumer comments on products and/or services and retailers (Henning-Thurau et al., 2004;Lii, Y., & Lee, M., 2012). As the internet is not limited to place and time, online reviews can spread fast and in a large scale between people (Lee et al., 2006). Moreover, to avoid the potential risks and uncertainty of online shopping, such as product performance risk and financial risk, many consumers rely on product informations to online reviews from other consumers (Zhang and Xu, 2018). Online customer reviews can be both defined as peergenerated product evaluations and thirdparty websites online reviews posted online (Mudambi et al., 2010;Brun, I., Rajaobelina, L., & Ricard, L., 2014).
Online reviews is considered as an essential type of social influence on online impulse buying (Zhang and Xu, 2018). Online reviews is also known as the electronic form of word of mouth (WOM) that messages the expressions and opinions of consumers toward a product or a seller (Lee et al., 2006). They are believed to be able to reach a large scale of people with internet technologies easily (Lee et al., 2006). Knowing the impact that online reviews can make, it is important to distinguish how consumers value these online reviews. Therefore, the author then further distinct online reviews by utilitarian and hedonic value of online reviews.
Utilitarian value is defined as the value that a customer receives based on a task-related and rational consumption behavior (Babin et al., 1994). Basically, consumers with utilitarian value are goal-oriented. Further, Zhang and Xu (2018) defined utilitarian value as consumers' perceptions regarding the extent of which online reviews can provide instrumental value and fulfill their needs. In their research, they found that utilitarian value of online reviews is positively related with browsing of consumers. In addition, To et al.. (2007) found that consumers can get utilitarian value from further searching information online, in which became one of the main reasons as to why consumers repeatedly search for information online. Similar to these researches, the author proposes that if consumers perceive obtaining useful information from online reviews, then they are more likely to do browsing. Thus, the hypothesis formulated is as follows: H1. Utilitarian value of online reviews positively influences browsing of Indonesian cosmetic products.
In contrast to utilitarian value, hedonic value is defined as the value a customer receives based on the subject experience of having fun and playfulness (Babin et al., 1994). In terms of online reviews,  Zhang and Xu (2018) defined hedonic value as consumers' perception where online reviews can provide self-fulfilling value and pleasure to them. They basically conduct activities based on emotional and/or affective aspects (Chiu et al., 2014). These theories infer that there are consumers that reads online reviews for the sake of enjoying reading the online reviews itself and not for the information that they seek and gain from the reviews.
Regarding its relationship with browsing, Pöyry et al., (2013) mentioned that consumers are likely to browse if they enjoy it. This statement creates an expectation that consumers who enjoys reading online reviews are likely to spend time browsing the reviews. Moreover, searching information online is believed to be a way of self-reward by giving themselves (consumer) leisure and escapism (Mathwick et al., 2001;Mathwick and Rigdon, 2004). Based on these theories, the author wishes to discuss on the matter of how hedonic value of online review is associated with browsing. Moreover, as previously mentioned, the hedonic value of online reviews are underinvestigated by previous researches. This creates more urge for the author to discuss on the matter. Therefore, to fill in this gap the author proposes a hypothesis formulated as follows: H2. Hedonic value of online reviews positively influences browsing of Indonesian indie cosmetic products.
Browsing. Browsing is defined as the activity of scanning product information for either information-seeking purposes or entertainment-seeking purposes, without having buying intention (Verhagen and Van Dolen, 2011). It is known that most consumers spend more time looking at products than actually purchasing them (Shen, Chu, Chiang, & Huang, 2010). Browsing activities is believed to be important when determining a consumer's shopping behavior (Bloch, Ridgway, & Sherrell, 1989). Moreover, it is believed that as consumers browse, they experience more and more urges to buy the product, which increase their likelihood of engaging in actually buying the product impulsively (Beatty and Ferrell, 1998). This likelihood is believed to be increase due to the more stimuli consumers are exposed to as they browse more (Dholakia, 2000).
This study would like to refer to browsing as consumers' all activities of information searching, reading and scanning activities without any specific shopping goals. Therefore, browsing is not only limited to searching online reviews or any other type of information solely. It is important to not limit browsing in this research, as online reviews and market-generated contents of products (i.e. product price and product attributes) are most of the time displayed next to each other. Previous researches (Park, Kim, Funches, & Foxx, 2012;Shirmohammadi et al., 2015;Verhagen and Van Dolen, 2011;Huang, 2016) had discussed and proved on the matter of the positive influence that browsing activities has on urge to buy impulsively and online impulse buying. Based on the references, below is the proposed hypothesis: H3. Browsing positively influences the urge to buy Indonesian indie cosmetic products impulsively.
Peers Influence. Peers are socialization agents that can influence a consumers' consumption matters in terms of products and/or services' attitudes and perceptions (Churchill and Moschis 1979). Wang et. al (2012) had proven the importance of peer influence toward online purchase intention. Unlike family, peers may encourage consumers to engage in impulse buying (Tian and Lin, 2015). On social media, impulse buying is considered unavoidable (Huang, 2015). Further, customers can be strongly influenced by the relationships built through social media (Okazaki, 2009;Zhang and Daughety 2009), therefore Wang et al., (2012)  Tie strength with peers is defined as the degree to which a person is willing to maintain some relationship with peers (Wang et al., 2012). Tie strength has significant power to the influence of word of mouth (WOM) communications (Brown, Broderick, and Lee, 2007;De Bruyn and Lilien, 2008). Specifically, the relationship with the peers may be classified to either very close or very casual. However, strong ties have been proven to have more influence on receivers than weak ties do (Levin and Cross, 2004). Frenzen and Nakamoto (1993) also agree on the matter by further proving that strong ties are most likely to transfer information of higher economic value than weak ties. They discussed that, having very close relationship and having strong ties with peers are more likely to transfer and communicate useful knowledge.
Strong ties can encourage the support and beliefs that groups of individuals have which further enhance trust and information exchange between the individuals (Holzinger et al., 2009). Relationships built through social media also may have strong influences on communication with peers (Zhang and Daughety, 2009). Based on these previous researches, the writer would like to discuss on how the closeness relationship with peers can influence the communication of products in social media. Regarding on tie strength with peers and peer communication, Wang et al., (2012) had proven that the two are positively related. Therefore, similar to the previous research, the author wishes to examine how tie strength with peers can encourage peer communication in social media context. Below is the proposed hypothesis: H4. Tie strength with peers positively influences peer communication of Indonesian cosmetic products.
Identification with the peer group is defined as the origination of one-self that renders selfcharacteristics exchangeable with the group (Hogg, 1992). It refers to a person's participation with his/her community and/or peers (Dholakia, Bagozzi, and Pearo 2004). By having an identification within a peer group, a person then is involved with activities in terms of group scale (Dholakia, 2000). The person then develops we-intentions and wants to maintain the relationship that he/she has with the peer group (Bagozzi and Dholakia, 2002). They further explained that following want to maintain the relationship and valuing it, the person is willing to do more activities and interactions with the peer group with that specific goal. This indicates that the person will have more communication with the members of the group. Algesheimer, Dholakia, and Herrmann (2005) believes that identification with peer group is a person's will to engage in community activities. Further, they believe that a harmonious relationship with peers would lead to consumers in seeking interactions with other members of the group (Algesheimer, Dholakia, and Herrmann, 2005). This indicates that identification of peer group stimulates peer communication activities. Supporting to that fact, Wang et al., (2012) had proven the positive influence of identification with peer group as antecedents to peer communication in the context of social media. Based on these references, the author proposes the hypothesis below in the context of social media: H5. Identification with the peer group positively influences peer communication of Indonesian cosmetic products.
Peer communication is a form of consumer socialization through peers that act as socialization agents (Wang et al., 2012). Peer communication are believed to have an influence on learning through modeling, reinforcement and social interaction (Muralidharan and Men, 2015). Moreover, peer communication can also be referred beyond just communicating statements of personal matter, but also as interaction that focuses on products, services, companies and brands (Moschis and Churchill, 1978;Wang, Yu and Wei, 2012 opportunity where consumers can learn about consumption from his/her peers, such as brand preferences, involvement, or purchase intentions. Consumer behaviors tend to result from learning acquired through the interactions between the consumer and his/her socialization agents, where in this case, peers Wang et al. (2012).
Recommendations of electronic agents have been found to effect on consumers' decision (Häubl & Murray, 2003). Specifically, Lueg and Finney (2007) stated that peer communication strongly influences consumers' purchase behaviors as online shoppers. On impulse buying, it had been found that peer communication is positively influence the urge to buy impulsively (Huang, 2016). Based on these theories, this study would like to examine peer communication as social factor that has influence on the urge to buy impulsively. Specifically, this study examines peer communications that occur online, especially social media. Thus, the author proposes the hypothesis below: H6. Peer communication positively influences urge to buy Indonesian indie cosmetic products impulsively.
Buying Behavior. This study differentiates the urge to buy impulsively and impulse buying. Many previous researches had proven the importance to distinguish these two and show that impulse buying behavior is the final dependent variable of the research model (Beatty and Ferrell, 1998;Shen and Khalifa, 2012;Huang, 2016;Verhagen and Van Dolen, 2011). Specifically, urge to buy impulsively is defined as the sudden and spontaneous urge to buy something (Zhang and Xu, 2018). It is a sudden and powerful feeling, yet it does not always imply to the consumers acting on it (Rook and Fisher, 1995). Moreover, it is believed that the urge to buy impulsively precedes the actual impulse buying behavior (Beatty and Ferrel, 1998). This infers that, consumers may experience urge to buy impulsively more often than their actual impulse buying behavior. Verhagen and Dolen (2011) indicated that there is a significant and positive relationship between the urge to buy impulsively and actually buying impulsively. Other previous researches had proven that urge to buy impulsively is positively influence with impulse buying behavior (Huang, 2016;Zhang and Xu, 2018). Similar to previous research (Rook and Fisher's, 1995;Huang, 2016;Zhang and Xu, 2018), his study would like to examine how impulse buying behavior is influenced by the feeling of the urge to buy impulsively. Therefore, based on the previous research, the author proposes the hypothesis below: H7. Urge to buy impulsively positively influences impulse buying behavior of Indonesian indie cosmetic products.

METHOD
For the purposes of collecting the primary data, this study conducted an online survey in the form of questionnaire. The respondents of the self-administered questionnaire where respondents will fill in the questionnaires by themselves. Further, the questionnaire is distributed via social media like WhatsApp, LINE Message and Instagram in a form of link to Google Forms. The distribution of the questionnaire will be using the author personal contact and social media. Having the topic of the research in a context of cosmetic products, the author decided that this study will be limited to female respondents only. Specifically, in terms of age, the respondents will be those within the millennial age range.
To be able to analyze the data accordingly, as previously mentioned, the questionnaire will be distributed to at least 155 respondents. Prior to the distribution, a pre-test and wording test of the questionnaire will be conducted to improve the questionnaire and produce an understandable one in order to get sincere and true answers from the respondents. Other supporting (secondary) data will be obtained from the existing and previous researches which includes the gathering of data from journal, websites and other literature reviews.
This study conducts Structural Equation Modeling (SEM). This study will specifically use Partial Least Square (PLS) -SEM or also known as Variance Based SEM to analyze the method. The primary data obtained will be processed using SmartPLS 3.2.8 software. The particular method will be used to test the influence of perceived online reviews, hedonic and utilitarian value, along with browsing; and peers influence, tie strength with peers and identification with peer group, along with by peer communication; on urge to buy impulsively and impulse buying behavior.

RESULTS AND DISCUSSION
Results. The pretest collected 33 responses, with only 32 responses that passed the screening section and can further be analyzed. With the result the author decided to delete and not utilize indicators PC1 and PC2 as the two were invalid. For the main test, the questionnaire was distributed through the author's personal contact and social media which are: LINE messenger, WhatsApp and Instagram. The data collection was obtained using the platform Google Forms. This research resulted with a total of 173 respondents that participated in filling the questionnaires, which only 161 inputs passed the screening questions and can be further analyzed.
The author did an analysis on the reflective measurement model that consists of: Utilitarian Value, Hedonic Value, Browsing, Identification with the Peer Group, Peer Communication, Urge to Buy Impulsively, and Impulse Buying Behavior. The author also did an analysis on the formative measurement model that is Tie Strength with Peers. The analysis and tests resulted in the deletion of IPG 3, due to the variable's low reliability. Regarding the hypothesis testing, the results are as shown below: Discussion. Based on the results of the demographic profiles, it can be seen that the most purchased brands of Indonesian indie cosmetic products are Rollover Reaction, BLP by Lizzie Parra and ESQA Cosmetics. Having these brands as the top three most purchased, the author suggests that other brands learn from these brands on how to place themselves successfully in the market of Indonesian indie cosmetic products. Dissecting further to the reason of why the respondents purchase the Indonesian cosmetic products, they chose reasons of based on three reasons (liking the products, friends' recommendations, good review), liking the product solely, and product having good review solely, as the top three reasons of why they purchase the product. Therefore, it can be interpreted that Rollover Reaction, BLP by Lizzie Parra and ESQA cosmetics has good products, good online review and are recommended by their peers. It is to be noted however, that these positions of the three brands and the reasonings to it are based on the demographic profile where mostly are in the age of 21-25 (78.5%) with completed education of highschool (79.50%). This infers that those brands had successfully hold their position in the target market of Indonesian indie cosmetic products within those age. Discussing on the first social influence, online reviews, it is found that hedonic value of online reviews positively influence consumers' browsing behavior, which then encourages urge to buy impulsively and finally encourages impulse buying behavior of Indonesian indie cosmetic products. This confirms previous theories stated by Zhang and Xu (2018) Pöyry et al., (2013). In addition, the result gave interesting remarks of how utilitarian value does not positively influence consumers' browsing behavior of Indonesian indie cosmetic products. This contradicts previous research such as Xu (2018), To et al., (2007), Wang (2010). It is to be noted that the possible cause of this outcome is due to: the goal-oriented and time efficient principles of utilitarian and millennials, as the respondents are millennials, also the level of impulsiveness (Bressolles et al., 2007;Chen et al., 2016) of the respondents that are likely to be low, suggesting strong control behavior within respondents.
Indonesian indie cosmetic brands may consider in using these reviews as marketing tools to act as effective social influence that can promote consumers' impulse buying behavior. Specifically, these cosmetic brands are suggested to deliver and facilitate online reviews in interesting and aesthetic ways, knowing that only the hedonic value of online reviews can drive the online impulse buying behavior. These online reviews can be delivered in interesting ways such as displaying interesting and entertaining (Mas-Tur et al., 2016), testimonial contents and posts, such as videos and pictures, in the brands' social media (Im, J. Y., & Hancer, M., 2014). Moreover, as proven that hedonic value leads to browsing, this infers that the browsers are those with hedonic value, therefore these brands should present themselves and post contents on internet and social media that satisfy them emotionally and especially aesthetically (Wu and Lee, 2016).
For the second social influence, peers, the results show that social media's tie strength with peers and identification with the peer group positively influence consumers' browsing behavior, which further encourages urge to buy impulsively and therefore encourage the actual impulse buying behavior of Indonesian indie cosmetic products. These results are consistent to the previous researches that stated the positive influence of tie strength with peers and identification with the peer group to peer communication (Wang et al., 2012;Sutarso, Y., Halim, R. E., Balqiah, T. E., & Tjiptoherijanto, P., 2017;De Bruyn and Lilien 2008;Algesheimer, Dholakia, and Herrmann 2005) that then further encourages the feeling of urge to buy impulsively (Huang, 2016).
There are two implications related to peer communication suggested to the cosmetic brands. First, these cosmetic brands should actively monitor peer communications of targeted consumers in social media as suggested by Wang (2012). By monitoring, these brands should detect and take care of negative peer communication about products, learn dynamics and changes in consumer behavior patterns (i.e. new areas of consumer values and interest) and learn how the less connected consumers interact in order to be able to connect to them in the future. Second, the cosmetic brands can create communities (Mersey et. al., 2010) of the brand in social media (for example, Facebook group) or in official website to connect peers and non-peers with those of the same interest. These communities are made to allow exchange of information about products by participating and socializing online. Not only attempting to maintain members of community, the cosmetic brands can attract visitors and create a desire for them to join the community by promoting the values they offer or highlighting the commonalities between the members and the visitors might have.
In the matter of online impulse buying, the results of the research show that the urge to buy impulsively positively influence impulse buying (Ortiz, J., Chiu, T.-S., Wen-Hai, C., & Hsu, C.-W., 2017). Therefore, it is important to trigger consumers' urge to buy impulsively, if impulse buying is desired. Whereas based on this research, the urge to buy impulsively is triggered by the existence of browsing activities and peer communication. Specifically, the R² result showed that the urge to buy is a critical determinant of impulse buying based on the high degree of variance (45.2%). Consistent with the theories, the feeling of urge to buy impulsively might happen more often than the actual impulse buying. This is shown by the result of the descriptive analysis, showing urge to buy impulsively with higher value of 3.85 and impulse buying behavior with lower value of 3.48. Previous researches stated that consumers urge to buy impulsively and impulse buying increase as 246 ISSN : 2088-1231 E-ISSN: 2460-5328 DOI: dx.doi.org/10.22441/mix.2020.v10i2.007 they are exposed to more stimuli. Therefore, these results imply that the cosmetic brands could encourage impulse buying during payment method in website (Huang, 2016) through shifting attention or postponing payment by displaying more products offered before final payment.
Overall, the results of the research implies that in order to create impulse purchases on the Indonesian indie cosmetic products, it is crucial for those brands to acknowledge the importance of two social factors that can cause impulse buying, namely: online reviews and peers. It is important for those brands to know that online review readers with hedonic motives, conduct further browsing on Indonesian indie cosmetic products that encourages their urge to buy impulsively and then ended up actually buying the product impulsively. It is also important for those brands to know that in social media, strong individual-level tie strength with peers and group-level identification with peers fosters peer communication of Indonesian indie cosmetic products which then encourages their urge to buy impulsively and, in the end, ended up actually buying the Indonesian indie cosmetic product impulsively.
Based on the findings, Indonesian indie cosmetic brands could lead consumers to impulse purchases of their products by improving matters and facilitating: online reviews as seen from hedonic motives and peers relationship on social media especially peer communication related to the products. Specifically, discussing on online reviews, cosmetic brands are suggested to deliver and facilitate online reviews in interesting and aesthetic ways like photos and videos on their official websites and/or official social media accounts. For peer communication, cosmetic brands specifically can encourage impulse buying by monitoring peer communications of targeted consumers in social media and build online communities in order to learn about the customers and connect with the customers also connect the customers that shares the same interests.