“Product quality as a mediating variable in repurchase decisions: The case of Indonesian skincare products”

When buying skincare products, consumers are more concerned with comfort and safety and seek for high-quality items. Indonesian-made skincare products must be of the highest caliber and adhere to all applicable health regulations. This study aims to determine whether product quality can effectively mediate the effects of brand image, customer value, digital marketing, and product quality on repurchase decisions. The study surveyed people using skincare products in the Indonesian city of Surabaya, utilizing a targeted sample of 385 female responders at least 18 years old. According to descriptive statistics, background status significantly affects the decision to repurchase skincare products. Structural equation modeling was then used to examine the data. The results show that product quality mediates the association between brand image and consumer value on decisions to repurchase. However, it does not mediate the relationship between digital marketing and such decisions. Another finding shows that in contrast to digital marketing, brand image and customer value positively influence product quality. According to the study’s findings, product quality is a strong mediator and one of the factors influencing consumers’ decisions to repurchase. Additionally, the brand image of skincare products, which differ in each product’s features, enhances the consumer’s decision to repurchase.


INTRODUCTION
A woman's ideal skin is smooth and healthy.Women can appear more confident by having healthy facial skin.Careful skincare practices can solve skin issues and aid in skin lightening.One can take care of the skin at home using over-the-counter skincare products.Numerous locally produced skincare products are just as high-quality and competitive as those imported from overseas.In Indonesian e-commerce, the top five selling facial care brands are Something, Skintific, Scarlett Whitening, Gamier, and Ms Glow (Compas, 2023).
Brand image is one of the variables consumers consider when deciding whether to purchase a skincare product; in fact, many consumers are more concerned with a product's brand image than with price or other considerations (Schiffman & Kanuk, 2013).As a result, local skincare brands must have positive brand perceptions, even better than those of international skincare brands.Skincare companies should attempt to improve the quality of their goods in order to enhance their brand image (Beneke et al., 2013).Consumers are more likely to make re-peat purchases when a brand has a positive reputation (Mowen & Minor, 2016;Cretu & Brodie, 2007;Sakdiah, 2018).Local skincare goods must be promoted through modern information technology advancements, including digital marketing, in order for them to be better recognized by the general public (Smith, 2012;Yasmin et al., 2015).With the help of digital marketing, skincare businesses may market to and promote their products to a broader spectrum of consumers (Coviello et al., 2001;Nofrialdi, 2021;Deepa & Geeta, 2021).
Making consumers decide to repurchase skincare products is difficult in the face of fierce market rivalry (Best & Coney, 2004).Consumer psychological aspects impact purchase decisions (Blackwell et al., 2015;Hawkins & Mothersbaugh, 2010).It is insufficient for consumers to recognize the brand on the packaging when seeking a product.Customers will recognize high-quality items (Nurhayati & Hendar, 2020;Riptiono, 2020).Therefore, for businesses to have an impact on customer behavior, they must consider how consumers feel about the quality.Customers will use judgment to choose a product; therefore, they will always seek out high-quality items to purchase based on cognitive criteria (Kartikasari & Albari, 2019).One component of skincare quality assurance from the consumer's perspective is that it has been tested and registered with the Food and Drug Supervisory Agency (BPOM).Not a brand, BPOM is exclusive to one particular product.
Local skincare brands must have a strong brand image, high-quality products, and effective digital marketing strategies to compete with imported brands.However, few studies look at how Indonesian skincare products' quality affects buying patterns.

LITERATURE REVIEW
Consumers make repurchase decisions based on whether a product meets their expectations when purchasing, seeking out, or returning it after consumption.Repurchase decisions are consumer purchases affected by their psychological makeup (Blackwell et al., 2015;Schiffman & Kanuk, 2013).Such decisions are a person's propensity to rebuy the same things, look for them again, and desire to use them again (Kotler & Keller, 2016).Ghezelbash and Khodadadi (2017), who studied 300 consumers of the Amiran retail chain in Karaj, found that product and service quality affects customer satisfaction.Customer contentment affects incentives for repeat purchases.Fauzi and Ali (2021) looked at 180 users of Samsung smartphones in Jakarta and found that product quality and cost affect buying choices.Repeat purchases are unaffected by product quality.Among subject group awareness, brand awareness is the most critical selection heuristic.Subjects unaware of brands tend to select more high-quality brands (Hoyer & Brown, 1990).
Consumer trust in a brand is represented in the individual experience of consumers.If consumers have a positive experience with the product, a positive brand image will develop in their subconscious.
Consumer trust in the brand will increase if it has a positive reputation, motivating them to buy from it again.Even though the products sold have the same qualities as those supplied by other vendors, brands can serve as a differentiator (Assauri, 2018 partnerships.In contrast, corporate image has a significant impact on newer relationships.Brand image can considerably enhance the quality of the product and customer repurchase intentions. Customer value is defined as the customer's perception of the product attributes and services they choose, how they evaluate those attributes, how they perform, and how utilizing the product will affect their objectives and intentions (Woodruff & Gardial, 2006).Total customer value minus total customer expense equals customer value.Total customer value is made up of a number of anticipated advantages, while total customer costs are the number of expenses that consumers must bear in order to purchase goods or services (Kotler, 2020).Customers' perceived value is key to guaranteeing the company's viability in today's cutthroat industry.Correa et al. (2021) studied 185 companies, concluding that perceived value is positively related to satisfaction and trust perceived, which in turn increases intention to repurchase.Fang et al. (2016) examined 651 online shoppers, stating that both gender and age can affect repurchase intentions online by moderating the relationship between relational benefits (i.e., product quality and electronic service quality) and perceived value.
Additionally, Harryani (2017) looked at 360 clients and concluded that effective customer relationship management will raise client value and product quality, ultimately improving satisfaction.A key factor in driving repeat purchases is perceived value.Customer value can dramatically enhance product quality and repurchase decisions.
Digital marketing is a technology that facilitates communication between businesses and customers.Convenience for customers means making it simpler to access information about the products they want.In contrast, convenience for businesses means being able to educate customers about specials made available to a large audience.The digital revolution has fundamentally altered how businesses interact with their customers.Consumers may now research pricing and, in some instances, even set them themselves, thanks to the Internet (Sawicki, 2016).Digital marketing is a strategy for promoting a business's products or services using one or more electronic media (Arnes & Toto, 2020; Chaffey & Ellis-Chadwick, 2019).
The shopping paradigm has altered due to recent technological advancements, which have also favored an online shopping system.At Shopee, 400 millennials were evaluated by Ginting et al. (2022).They discovered that while product differences and digital marketing influence purchasing decisions, these decisions also influence repurchase decisions.In their study of 125 Catur Putraharmonis customers in Makassar, Ilyas et al. (2021) found that brand awareness affected consumers' decisions to repurchase products and that digital marketing impacted customer value.Additionally, Wandoko and Panggati (2022) looked at 407 Indonesian users of e-marketplaces who shop online.They concluded that consumer repurchase decisions are influenced by trust and the quality of the information.Customer trust in the digital sphere mediates customer repurchase intentions and information quality.The analysis of Jakarta's transportation system by Sutia et al. (2019) also showed the influence of online marketing and brand recognition on consumers' tendency to make repeat purchases.Accordingly, digital marketing can enhance product quality and decision-making for repeat purchases.
A product or service's capacity to satisfy explicit or implicit demands is determined by the total of all of its qualities.According to Schiffman and Kanuk (2013), a product's quality is determined by how well it performs its functions, including dependability, durability, accuracy, ease of use, and product maintenance.In contrast, Kotler  proved that product quality affects customer value, perceived value is considered an essential motivator of customer repurchase intentions.According to Munisih and Soliha (2015), a relationship exists between customer value and product quality.In a study of 336 textile industry workers in the city of Bandung, Manik et al. (2023) found that management's involvement in planning quality improvement will increase product quality, which is beneficial for the organization.According to a study on product quality, consumers' decisions to repurchase products can be significantly improved.
This study aims to ascertain if product quality is an effective mediating factor in the interactions between brand image, customer value, digital marketing, and product quality on repurchase decisions.The following hypotheses were developed in light of the literature review: H1: Brand image has a significant effect on product quality.
H2: Product quality has a significant affect on repurchase decisions through brand image.
H3: Customer value has a significant effect on product quality.
H4: Customer value has a significant effect on repurchase decisions through product quality.
H5: Digital marketing has a significant effect on product quality.
H6: Digital marketing has a significant effect on repurchase decisions through product quality.
H7: Product quality has a significant effect on repurchase decisions.
For clarity, the research framework is displayed in Figure 1.

METHODOLOGY
This is a causal study.All customers using skincare products made in Indonesia in Surabaya comprise the research population (Malhotra & Birks, 2007).The Lemeshow formula is used to obtain a minimal number of samples with a margin of error of 5% and a sample size of 385 respondents when the population is unclear (Lemeshow et al., 1990) Following instrument testing, measurement models (the outer and inner models) were evaluated.The structural and measurement models were examined together using the goodness of fit.A hypotheses test was then conducted.

RESULTS
The loading factor and AVE (average variance extract) both have values larger than 0.5, based on Table 2.As a result, the research variables satisfy the requirements for convergent validity.The square roots of the average variance extracted (AVEs) value serve as a proxy for discriminant validity.Table 3 shows that the values in the diagonal block (bold) are higher than the values in the same block.All variables thus meet the requirements for discriminant validity.The research variable reliability was assessed using Cronbach's alpha and composite reliability.Table 4 shows that the Cronbach's alpha for each variable is more than 0.6.Furthermore, the composite reliability value is greater than 0.7.Thus, every item has met the requirements.
The average path coefficient (APC), the average R-Squared (ARS), and the average variance inflation factor (AVIF) are the three fit metrics available on WrapPLS.ARS has a p-value of 0.05, and APC has a p-value of 0.001 in the fit index model test.The APC and ARS values must be significant (less than 0.05) in order for the model to be stated to be fit (according to or supported by data).There is no multicollinearity if the AVIF value is less than 5.The analysis results are displayed in Table 5.In this instance, AVIF and APC demonstrate the multicollinearity of the independent variables and their connections.The evaluation's data indicate that the model is suitable.
In this inquiry, SEM analysis is utilized.This analysis determines how the predictor will impact the predicted variable.The study's anticipated variable is the repurchase decision, and the predictors are product quality, customer value, brand image, and digital marketing.The data are subsequently coded once again using WarpPLS.Table 6 shows the hypotheses testing results.

DISCUSSION
Evidence supports the first hypothesis, which states that brand image improves product quality.This hypothesis is accepted because the p-value is less than 0.05, which equals 0.000, as shown in Table 6.The brand image variable has a coefficient value of 0.265 on product quality.Thus, brand image influences repurchase decisions in a positive and significant way.This demonstrates that consumers are pleased with the brand image of Indonesian-made skincare goods.This is evidenced by respondents who stated that local skincare products are well-   known and have a reputation as premium cosmetic brands.There are numerous advantages to adopting Indonesian skincare.As a result, the brand image of local products must be maintained and improved to maximize product quality's value.In order to have a good quality cosmetic brand reputation, it is also vital to market local skincare goods.The findings of this study are consistent with those of Amelia and Ayani (2020) and Prasetya and Farida (2021).
The second hypothesis is supported since the p-value, 0.045, is less than 0.05.The brand image variable has a coefficient of 0.066 on repurchase decisions based on product quality.This lends credence to the notion that brand image influences product quality, which drives repurchase decisions.This demonstrates that boosting brand image and product quality will improve the value of repurchasing options.Thus, product quality effectively mediates the relationship between brand image and repurchase decisions.
Evidence supports the third hypothesis, which states that brand image improves product quality.This hypothesis is accepted because the p-value is less than 0.05, equal to 0.000, as shown in The fourth hypothesis is supported since the p-value, 0.040, is less than 0.05.The customer value variable's coefficient of 0.076 influences repurchase decisions indirectly through product quality.This demonstrates that the value and the customer's decision to repurchase the goods are mutually beneficial.Thus, enhancing customer value and product quality together can enhance repurchasing decisions.This also explains why product quality acts as a moderator.
The results show that the fifth hypothesis is rejected because the p-value exceeds 0.05.This demonstrates that digital marketing does not increase customer value.This information indicates that local skincare product companies' web marketing could be better.This may also be seen in the comments of respondents who indicated that access to social media was difficult because the internet connection was not yet supported.The findings imply that the sixth hypothesis is rejected because the p-value is greater than 0.05, as shown in Table 6.This indicates no discernible indirect impact of digital marketing on customer value-driven repurchase decisions.This demonstrates that in the relationship between digital marketing and repurchase decisions, consumer value is a mediating variable that is not beneficial.As a result, local skincare businesses should employ digital marketing more often.This may be accomplished by using more of the current communication channels.
The seventh hypothesis shows that the quality of the product influences decisions to repurchase products.This evidence shows that local skincare product quality is good and is liked by us-ers.This may also be shown in respondents' responses, indicating that people find Indonesian skincare products acceptable and of good quality.Also, local skincare products are safe and have received BPOM-RI certificates.Local skincare products are proven to be good for all ages, suitable for all weather, and can beautify the user's skin.Thus, product quality needs to be maintained and improved so that the repurchase decision value increases.Customers also need to be informed that local skincare products comply with health standards, are safe to use, and make facial skin more beautiful.The results of this study support those of Widyaningrum et al. (2022) and Ketut (2018).
According to the impact of product quality on the decision to repurchase, improving product quality will encourage consumers to value their decision to repurchase more.These results show that product quality influences consumers' decisions to repurchase local skincare products.Thus, local skincare must be produced with excellent and superior quality to satisfy consumers.

CONCLUSION
This study aims to analyze the relationships between brand image, customer value, digital marketing, and product quality in relation to repurchase decisions for Indonesia-based skincare goods.
Product quality now functions as a mediating factor.The model's conclusion is critical for researching the decision to repurchase locally manufactured skincare goods, particularly regarding brand image, customer value, and product quality.This discovery will contribute to developing a conceptual model in the skincare business that integrates brand image, customer value, digital marketing, product quality, and repurchase decisions.
This study analyzed the relationship between brand image, customer value, and digital marketing on repurchase decisions, focusing on local skincare products.Brand image and customer value positively and significantly impact product quality and, as a result, indirectly influence repurchase decisions.Product quality has a strong and positive influence on repurchase decisions.The products' efficacy and compatibility created a high interest in Indonesian skincare products.
Because the scope of this study is limited to local Indonesian skincare consumers, it is suggested that future researchers broaden the geographical scope of the research and consider additional factors that are not currently the focus of research but may influence consumer decisions to make a repeated purchase.

Table 1
lists the characteristics of the respondents, including their gender, age, marital status, level of education, and how long they have used local skincare.

Table 2 .
Values for the loading factor and AVE

Table 3 .
Connections between latent variables

Table 5 .
Model fit quality