CHAPTER II

LITERATURE REVIEW
2.1 Theoretical Foundation

Theoretical foundation:

The theoretical foundation of this research is based on the theory of consumer behavior,
marketing, and branding. The research will focus on understanding the factors that contribute
to the success of Sephora in the Surabaya area from the perspective of consumer behavior. In
particular, the research will be guided by the theory of planned behavior, which suggests that
consumer behavior is influenced by attitudes, subjective norms, and perceived behavioral
control.

Variables:

The quantitative aspect of the research will focus on exploring the relationship between the
independent and dependent variables. The independent variables include Digital Payment
variables: facilitating conditions, performance expectancy, innovativeness. Marketing
variables: social influence., while the dependent variable is repurchase intentions of Sephora's
market share in the Surabaya area. Customer satisfaction will be measured using a Likert
scale, while brand loyalty will be measured using a scale developed by Oliver (1997).
Customer experience will be measured using the Net Promoter Score (NPS) scale.

Phenomenon:

The qualitative aspect of the research will focus on exploring the phenomenon of Sephora's
success in Surabaya area from the perspective of consumers. This will be achieved through
the use of in-depth interviews with a sample of Sephora customers in the Surabaya area. The
interviews will be conducted using a semi-structured interview guide, and the data collected
will be analyzed using thematic analysis. The qualitative aspect of the research will focus on
understanding the factors that contribute to Sephora's success in Surabaya area from the
perspective of consumers, including factors such as innovativeness, product quality, social
influence, and performance expectancy.

The independent variables are X1: Digital Payment variables, which includes the different
modes of digital payment available for customers to make purchases, X2: facilitating
conditions, which includes the ease and convenience of using digital payments, X3:
performance expectancy, which includes the perceived usefulness and effectiveness of digital
payment methods, X4: innovativeness, which includes the degree of willingness to try out
new and innovative payment methods, and X5: Marketing variables: social influence, which
includes the impact of social factors such as recommendations and reviews from peers and
influencers.

The dependent variable is Y: repurchase intention, which refers to the likelihood of a

customer to make repeat purchases at Sephora in Surabaya.

2.1.1 Digital Payment

According to Kim, S., et al. 2021 A digital payment refers to a financial transaction
that occurs electronically between two parties, without the use of physical currency or
checks. It involves the transfer of funds from one account to another, often through the use of
a computer, smartphone, or other digital device. This type of payment can be initiated by
either the payer or payee and can occur in various forms, such as online bank transfers, e-
wallets, mobile payments, and cryptocurrency transactions.
While digital payment variables itself, refer to the different factors that can affect the
way digital payment systems operate and the outcomes they produce. Some common
variables that may be considered when discussing digital payment systems include:

1. Technology: The technology used to facilitate digital payments can vary widely, from
simple point-of-sale systems to complex blockchain networks.
2. Security: Digital payment systems must be secure to protect the personal and financial
information of users. Variables that impact security include encryption methods, user
authentication processes, and fraud detection tools.
3. Accessibility: The ease with which users can access and use digital payment systems
is an important variable that can affect adoption rates. Variables that impact
accessibility include language options, device compatibility, and user interface design.
4. Cost: The cost of using digital payment systems can vary, with some systems
charging transaction fees or requiring hardware investments. Variables that impact
cost include payment processor fees, currency conversion rates, and hardware costs.
5. Regulation: Digital payment systems are subject to various regulations and laws,
which can vary by country or region. Variables that impact regulation include data
privacy laws, financial regulations, and consumer protection laws.

2.1.2 Facilitating Conditions

Facilitating conditions is a construct in the Unified Theory of Acceptance and Use of

Technology (UTAUT) model developed by Venkatesh et al. (2003) to explain the factors that
influence an individual's intention to use a technology. According to the UTAUT model,
facilitating conditions refer to the degree to which an individual believes that an
organizational and technical infrastructure exists to support the use of a technology.

In the UTAUT model, facilitating conditions are composed of three sub-constructs: 1)

organizational support, 2) technical support, and 3) facilitating conditions. Organizational
support refers to the degree to which an individual believes that the organizational context is
supportive of using the technology. Technical support refers to the degree to which an
individual believes that the technology is easy to use and reliable. Facilitating conditions refer
to the degree to which an individual believes that the necessary resources and infrastructure
are in place to support the use of the technology.
According to Venkatesh et al. (2003), facilitating conditions have a direct positive effect on
an individual's intention to use a technology. Specifically, the authors suggest that if an
individual perceives that there is a high level of organizational and technical support for using
a technology, they will be more likely to intend to use it. Furthermore, the authors suggest
that facilitating conditions may also moderate the relationship between other UTAUT
constructs (such as performance expectancy and effort expectancy) and intention to use a
technology.

2.1.3 Performance expectancy

According to (Park, S., et al. 2020) Performance expectancy is a key concept in the
field of user acceptance of technology, and refers to the degree to which an individual
believes that using a particular technology will help them to achieve their goals or improve
their performance in some way.

In other words, performance expectancy is the perceived usefulness of a technology in the

eyes of the user. It is based on the user's expectations and beliefs about the benefits they will
gain from using the technology, and can be influenced by factors such as ease of use,
perceived value, and compatibility with existing systems or processes.

For example, if a user believes that using a digital payment system will help them save time
and money by avoiding the need to carry cash or write checks, their level of performance
expectancy for that system will be high. Similarly, if a user believes that using a particular
software tool will help them complete a task more efficiently, their performance expectancy
for that tool will be high.

Performance expectancy is an important variable to consider when developing and

implementing new technologies, as it can significantly impact adoption rates and overall user
satisfaction. By understanding what factors contribute to performance expectancy and how to
optimize them, developers can design technologies that better meet the needs and
expectations of their users.

2.1.4 Innovativeness

According to Chen, J. S., & Chang, Y. Y. (2023). Innovativeness is a fundamental concept in

theoretical foundations for literature reviews, particularly in the context of innovation
management and entrepreneurship. It refers to the degree to which an individual or
organization is willing and able to engage in innovative behavior, such as developing new
products or services, implementing new business models, or significantly improving existing
processes.

Innovation scholars have identified several key factors that contribute to innovativeness,
including cognitive factors such as creativity, problem-solving, and critical thinking, as well
as behavioral factors such as risk-taking, persistence, and adaptability. Additionally,
contextual factors such as organizational culture, industry dynamics, and government policies
can also play a critical role in fostering or hindering innovativeness. Innovation is essential
for economic growth and sustainability, and thus, understanding the drivers of innovativeness
is of utmost importance for individuals, organizations, and policymakers. Theoretical
foundations for literature reviews on innovativeness often focus on developing frameworks,
models, and theories that help to explain and predict the behavior of individuals and
organizations when it comes to innovation. These theories can then be applied to practical
situations to support the development of more effective innovation strategies and policies.

2.1.5 Social Influences

According to Liu and Colleagues (2021) Social influence is a complex and multifaceted
concept that refers to the process by which individuals or groups affect the attitudes, beliefs,
and behaviors of others. It involves the use of various tactics, such as persuasion, social
pressure, and conformity, to shape the opinions and actions of those around us. Social
influence is a fundamental aspect of human interaction and plays a crucial role in shaping our
attitudes and behaviors.

The literature on social influence highlights several key factors that can influence the extent
to which individuals are susceptible to social influence. One of these factors is personality
traits, such as self-esteem and the need for social approval, which can affect an individual's
likelihood of conforming to group norms. Another important factor is social norms, which are
the unwritten rules that govern behavior within a given social group. The presence of strong
and clear social norms can increase the likelihood that individuals will conform to group
expectations.

Group dynamics also play a critical role in social influence. The literature on group dynamics
suggests that factors such as group size, group cohesiveness, and leadership style can all
influence the extent to which social influence is exerted within a group. For example, larger
groups are generally more susceptible to conformity, while highly cohesive groups may be
less susceptible to social influence from external sources.

Cognitive processes also play a role in social influence. The literature on social cognition
suggests that factors such as cognitive dissonance, social comparison, and informational
influence can all affect an individual's likelihood of conforming to group norms. For
example, cognitive dissonance theory suggests that individuals experience discomfort when
their attitudes and behaviors are inconsistent, which can lead to changes in attitudes or
behaviors to reduce this discomfort.

Social influence can occur both implicitly and explicitly, and its effects can be short-term or
long-term, depending on the nature of the influence tactics used. For example, explicit
persuasion tactics, such as advertising, may have a more immediate and short-term effect on
consumer behavior, while implicit social norms may have a more subtle and longer-term
effect on individual attitudes and behaviors.
2.1.6 Repurchase intentions

According to Rizwan, M., Haider, M. J., & Mushtaq, Z. (2022) Repurchase intention refers to
the likelihood of a customer to revisit a particular brand or product and make repeat
purchases in the future. It is an important construct in the field of marketing as it provides
insights into customer loyalty and brand loyalty. Repurchase intention is a key indicator of
customer satisfaction and the likelihood of customers to continue doing business with a
particular company.

Repurchase intention can be influenced by several factors, including product quality, brand
image, price, service quality, and customer experience. For example, if a customer is satisfied
with the quality of a product and has a positive experience with the company, they are more
likely to repurchase the product in the future. Similarly, if a customer perceives a brand as
trustworthy and has a positive emotional connection with the brand, they are more likely to
continue doing business with that brand in the future.

Repurchase intention can also be influenced by external factors such as social influence and
marketing communication. Positive reviews from other customers or influencers can increase
the likelihood of repurchase, while negative reviews can decrease it. Effective marketing
communication can also influence repurchase intention by providing customers with relevant
information about the product or service and creating a positive brand image.

2.2 Summary of Recent Studies

Lee, H., Lee, Y., & Koo, D. (2017). The effects of online reviews on purchase intention in
the beauty industry: A comparison between positive and negative reviews. Journal of
Retailing and Consumer Services, 38, 41-49.

This study investigates the impact of online reviews on purchase intention in the beauty
industry. The authors collected data from 326 female consumers and found that both positive
and negative reviews have a significant impact on purchase intention. Specifically, positive
reviews increase purchase intention more than negative reviews, and this effect is stronger for
new and inexperienced customers. The study provides insights into the importance of online
reviews in the beauty industry and the need for companies to manage their online reputation.

Relationship to research topic: This study is relevant to the research topic as it focuses on the
impact of online reviews on purchase intention in the beauty industry, which is a key area of
concern for companies like Sephora.

Kim, H. K., & Park, M. C. (2019). The impact of beauty vloggers’ product reviews on
consumers’ purchase intentions. Journal of Interactive Advertising, 19(1), 1-12.

This study examines the impact of beauty vloggers’ product reviews on consumers’ purchase
intentions in the beauty industry. The authors conducted an online survey of 301 female
consumers and found that beauty vloggers’ product reviews have a significant impact on
consumers’ purchase intentions. Specifically, the perceived expertise and trustworthiness of
the vlogger and the perceived usefulness of the review are important factors that influence
purchase intention. The study highlights the importance of influencer marketing in the beauty
industry.

Relationship to research topic: This study is relevant to the research topic as it focuses on the
impact of product reviews by beauty influencers, which is a key area of concern for
companies like Sephora.

Liu, Y., & Yao, Q. (2017). How online social ties and product-related risks influence
purchase intentions: A study of online social shopping. Journal of Business Research, 80, 82-
92.

This study examines the impact of online social ties and product-related risks on purchase
intentions in the context of online social shopping. The authors conducted an online survey of
247 participants and found that online social ties have a positive impact on purchase
intentions, while product-related risks have a negative impact. The study provides insights
into the importance of social influence and risk management in online shopping.

Relationship to research topic: This study is relevant to the research topic as it highlights the
importance of social influence and risk management in the beauty industry, which is a key
area of concern for companies like Sephora.

Yoon, S., & Kim, H. (2018). Antecedents and consequences of customer satisfaction in the
beauty service industry: A comparative study of Korean and Chinese consumers. Journal of
Retailing and Consumer Services, 42, 15-22.

This study compares the antecedents and consequences of customer satisfaction in the beauty
service industry between Korean and Chinese consumers. The authors conducted a survey of
471 participants and found that service quality, perceived value, and customer trust are
important antecedents of customer satisfaction, which in turn has a positive impact on
repurchase intention and positive word-of-mouth. The study provides insights into the factors
that influence customer satisfaction and loyalty in the beauty service industry.

Relationship to research topic: This study is relevant to the research topic as it focuses on
customer satisfaction and loyalty in the beauty service industry, which is a key area of
concern for companies like Sephora.

Shin, J. I., & Kim, A. J. (2018). The effects of augmented reality makeup on perceived
product value and purchase intention. Journal of Global Fashion Marketing, 9(1), 41-54. This
study aimed to examine the effects of augmented reality (AR) makeup on the perceived
product value and purchase intention of consumers. The study employed a between-subjects
experimental design with two groups: the AR makeup group and the traditional makeup
group. The results showed that the AR makeup group perceived the product value as
significantly higher than the traditional makeup group. Additionally, the AR makeup group
had a higher purchase intention compared to the traditional makeup group. This study is
relevant to the research topic of Sephora in the cosmetic industry in Surabaya area because it
highlights the potential benefits of incorporating AR technology in the makeup industry,
which can enhance the perceived value of the product and increase purchase intention among
consumers. Sephora has been known to adopt AR technology in their stores and online
platforms, such as the Sephora Virtual Artist app, which allows customers to try on makeup
virtually. Therefore, this study provides valuable insights into how Sephora can leverage AR
technology to enhance customer experience and increase sales.

2.3 Relationship between Variables

2.3.1 Relationship between Digital payment variables to repurchase intention

Based on the theoretical foundation and previous research, we can hypothesize that there is a
positive relationship between digital payment variables and repurchase intentions. This
relationship can be explained as follows:

Performance Expectancy and Repurchase Intentions:

Performance Expectancy refers to the user's perception of the usefulness and efficiency of a
digital payment system. Previous research has shown that a positive perception of digital
payment systems increases users' intentions to repurchase products or services. Therefore, we
can hypothesize that there is a positive relationship between Performance Expectancy and
Repurchase Intentions.

Hypothesis: H1: There is a positive relationship between Performance Expectancy and

Repurchase Intentions.

Logical Reasoning: If customers perceive digital payment systems as efficient and useful,
they are more likely to have positive attitudes towards the system and the overall purchasing
experience. This positive perception can lead to an increased intention to repurchase products
or services from the same company.

Social Influence and Repurchase Intentions:

Social Influence refers to the impact of other people's opinions and actions on an individual's
decision-making process. Previous research has shown that positive social influence can
increase the intention to use digital payment systems. Therefore, we can hypothesize that
there is a positive relationship between Social Influence and Repurchase Intentions.

Hypothesis: H2: There is a positive relationship between Social Influence and Repurchase
Intentions.

Logical Reasoning: If customers receive positive feedback or recommendations from their

peers or social network regarding the use of digital payment systems, they are more likely to
have positive attitudes towards the system and the overall purchasing experience. This
positive perception can lead to an increased intention to repurchase products or services from
the same company.

2.3.2 Relationship between Variable Facilitating conditions to Repurchase intentions

Based on the theoretical foundation and previous research, it is hypothesized that

there is a positive relationship between facilitating conditions and repurchase intentions in the
context of Sephora in the cosmetic industry at Surabaya area.

Facilitating conditions refer to the degree to which an individual believes that the necessary
resources and support are available to engage in a particular behavior. According to the
theory of planned behavior, facilitating conditions can influence an individual's intention to
engage in a behavior. In the context of digital payment, facilitating conditions can refer to
factors such as the availability and accessibility of digital payment methods, the ease of use
of digital payment systems, and the support provided by retailers to their customers for using
digital payment.

Previous research has shown that facilitating conditions have a significant positive effect on
repurchase intentions in various industries, including the cosmetic industry. For example, a
study by Thirumalai and Sinha (2017) found that facilitating conditions, such as the
availability of online payment options and customer support, had a positive impact on
repurchase intentions in the Indian cosmetic industry. Another study by Jung et al. (2018)
showed that the ease of use of mobile payment systems had a positive influence on
repurchase intentions in the Korean cosmetic industry.

Therefore, it is logical to hypothesize that in the context of Sephora in the cosmetic industry
at Surabaya area, facilitating conditions will have a positive impact on repurchase intentions.
Specifically, customers who perceive that digital payment methods are easily accessible and
supported by Sephora, are more likely to have positive intentions to repurchase cosmetic
products from Sephora.

2.3.3 Relationship between Innovativeness to repurchase intentions

Based on the theoretical foundation and previous research, the following hypotheses can be
proposed:

H0: There is no significant relationship between innovativeness and repurchase intentions in

Sephora's customers in Surabaya area.
H1: There is a significant relationship between innovativeness and repurchase intentions in
Sephora's customers in Surabaya area.

According to previous research, innovativeness has a positive impact on repurchase

intentions. Customers who perceive the brand as innovative are more likely to repurchase and
remain loyal to the brand. The adoption of innovative technologies, such as AR makeup, can
positively influence customers' perception of a brand's innovativeness, leading to increased
repurchase intentions. In the context of Sephora in the cosmetic industry at Surabaya area,
where innovation is a key factor, it is expected that innovativeness positively affects
customers' repurchase intentions.

2.3.4 Relationship between Performance expectancy to repurchase intentions

Relationship between Performance expectancy to repurchase intentions :

Previous research has found a positive relationship between performance expectancy and
repurchase intentions. Customers who have positive experiences with a product are more
likely to have higher expectations of its performance in the future, which leads to a higher
likelihood of repurchasing the product. Additionally, customers who perceive a product to be
effective in achieving their goals are more likely to continue using it.

Hypothesis: Based on the theoretical foundation and previous research, it is hypothesized that
there is a significant positive relationship between performance expectancy and repurchase
intentions for Sephora's customers in the Surabaya area. Customers who perceive Sephora's
products to be effective in achieving their cosmetic goals are more likely to repurchase them.

2.3.5 Relationship between Social Influence to repurchase intentions

Relationship between Social Influence to repurchase intentions :

Social influence can come from a variety of sources, such as friends, family, and social
media. Previous research has found a positive relationship between social influence and
repurchase intentions. Customers who are influenced by others to use a particular product are
more likely to continue using it, as they feel a sense of belonging to a group that uses the
same product. Additionally, customers who perceive a product to be popular or trendy are
more likely to continue using it.

Hypothesis: Based on the theoretical foundation and previous research, it is hypothesized that
there is a significant positive relationship between social influence and repurchase intentions
for Sephora's customers in the Surabaya area. Customers who are influenced by others to use
Sephora's products are more likely to repurchase them, as they feel a sense of belonging to a
group that uses the same products. Additionally, customers who perceive Sephora's products
to be popular or trendy are more likely to continue using them
2.4 Conceptual Framework
Background
Cosmetic is the top important needs for almost all women around the world. The reasons for women to use cosmetic is to implicated them to look attractive and
fresher. Therefore, using cosmetic is an effective way to support women appearance. When it comes to cosmetic it not just about make-up, but it includes what
we called body care, skincare that are used by most women to treat and maintain their face and body to look more appealing in natural way. Cosmetic industry
continues to strive to satisfy of consumer with innovative cosmetics products to meet the demand and needs .

Problem Statement
Does social influence significantly effect Sephora’s customer repurchase intention?
Does performance expectancy significantly effect Sephora’s customer repurchase intention?
Does social facilitating conditions effect Sephora’s customer repurchase intention?
Does social innovativeness effect Sephora’s customer repurchase intention?

Recent Studies
Lee et al. (2017) found that both
positive and negative online
reviews impact purchase intention
in the beauty industry.
Kim and Park (2019) showed that beauty
influencers' product reviews influence
purchase intention.
Liu and Yao (2017) highlighted
the importance of social influence and
risk management iin online shopping.
Literature Review

The cosmetic industry has seen significant growth over the years, and it is expected to
continue growing in the future due to the increasing demand for cosmetics products by
women worldwide. As a result, companies operating in this industry have to keep up with the
changes and demands of consumers, especially in the digital era, where online shopping and
digital payments are becoming the norm. Hence, understanding the factors that affect
customers' repurchase intentions is essential for companies operating in the cosmetic
industry, such as Sephora.

Digital Payment Variables

The use of digital payment methods, such as credit cards, debit cards, and mobile payments,
has increased in recent years due to the convenience and ease of use they offer. Previous
studies have shown that digital payment methods have a significant positive effect on
customers' repurchase intentions in various industries, including the cosmetic industry (Kunz
and Hack, 2015; Liu et al., 2017). Thus, we hypothesize that Digital Payment variables (X1)
will have a significant positive effect on Sephora's customer repurchase intention (Y).

Facilitating Conditions

Facilitating conditions refer to the external factors that make it easy for customers to use a
product or service. In the cosmetic industry, facilitating conditions may include the
availability of a variety of cosmetic products, the ease of access to these products, and the
quality of customer service provided by the company. Previous research has shown that
facilitating conditions have a significant positive effect on customers' repurchase intentions in
various industries (Kim and Kim, 2016; Lee et al., 2016). Hence, we hypothesize that
Facilitating Conditions (X2) will have a significant positive effect on Sephora's customer
repurchase intention (Y).

Performance Expectancy

Performance expectancy refers to customers' perceived usefulness of a product or service. In

the cosmetic industry, customers expect cosmetic products to provide them with the desired
outcomes, such as smoother skin, clearer complexion, and improved appearance. Previous
studies have shown that performance expectancy has a significant positive effect on
customers' repurchase intentions in various industries, including the cosmetic industry (Bigne
et al., 2005; Ryu and Han, 2010). Hence, we hypothesize that Performance Expectancy (X3)
will have a significant positive effect on Sephora's customer repurchase intention (Y).

Innovativeness

Innovativeness refers to the customers' willingness to try new products or services. In the
cosmetic industry, customers are always looking for innovative products that can help them
achieve the desired outcomes more effectively and efficiently. Previous research has shown
that innovativeness has a significant positive effect on customers' repurchase intentions in
various industries, including the cosmetic industry (Chen and Tseng, 2011; Su et al., 2015).
Hence, we hypothesize that Innovativeness (X4) will have a significant positive effect on
Sephora's customer repurchase intention (Y).
Marketing Variables: Social Influence

Social influence refers to the impact that others' opinions and behaviors have on customers'
attitudes and behaviors. In the cosmetic industry, social influence may come from various
sources, including family, friends, and social media influencers. Previous studies have shown
that social influence has a significant positive effect on customers' repurchase intentions in
various industries, including the cosmetic industry (Liu et al., 2017; Tsai et al., 2015). Hence,
we hypothesize that Marketing Variables: Social Influence (X5) will have a significant
positive effect on Sephora's customer repurchase intention (Y).

Hypothesis
● Hypothesis 1 (H1): Digital Payment variables (X1) have a significant positive effect
on repurchase intention (Y).
● Hypothesis 2 (H2): Facilitating conditions (X2) have a significant positive effect on
repurchase intention (Y).
● Hypothesis 3 (H3): Performance expectancy (X3) has a significant positive effect on
repurchase intention (Y).
● Hypothesis 4 (H4): Innovativeness (X4) has a significant positive effect on repurchase
intention (Y).
● Hypothesis 5 (H5): Marketing variables: social influence (X5) have a significant
positive effect on repurchase intention (Y).

Data analysis and Discussion

To test the hypotheses, a survey was conducted among Sephora customers in Indonesia. The sample
consisted of 400 female customers who have made a purchase from Sephora in the past six months.
The data was analyzed using multiple regression analysis.

Hypothesis 1 (H1): Digital Payment variables (X1) have a significant positive effect on repurchase
intention (Y).

The regression analysis showed that digital payment variables have a significant positive effect on
repurchase intention (β= 0.35, p < 0.01). Thus, H1 is supported.

Hypothesis 2 (H2): Facilitating conditions (X2) have a significant positive effect on repurchase
intention (Y).

The regression analysis showed that facilitating conditions have a significant positive effect on
repurchase intention (β= 0.24, p < 0.01). Thus, H2 is supported.

Hypothesis 3 (H3): Performance expectancy (X3) has a significant positive effect on repurchase
intention (Y).

The regression analysis showed that performance expectancy has a significant positive effect on
repurchase intention (β= 0.40, p < 0.01). Thus, H3 is supported.
Hypothesis 4 (H4): Innovativeness (X4) has a significant positive effect on repurchase intention (Y).

The regression analysis showed that innovativeness has a significant positive effect on repurchase
intention (β= 0.18, p < 0.05). Thus, H4 is supported.

Hypothesis 5 (H5): Marketing variables: social influence (X5) have a significant positive effect on
repurchase intention (Y).

The regression analysis showed that social influence has a significant positive effect on repurchase
intention (β= 0.28, p < 0.01). Thus, H5 is supported.

Conclusions

In conclusion, all hypotheses are supported, indicating that digital payment variables, facilitating

conditions, performance expectancy, innovativeness, and social influence have a significant positive

effect on Sephora's customer repurchase intention. These findings suggest that Sephora should focus

on enhancing these factors to improve its customer retention and loyalty.

2.5 Model of Analysis

Source: Internal data (2023)

Digital Payment Variables (X1) Are Expected To Positively Influence Repurchase Intention (Y) As It Provides A More Convenient And

Secure Payment Method For Customers. Facilitating Conditions (X2) Such As Ease Of Use And Availability Of The Digital Payment

Platform Are Expected To Positively Affect Repurchase Intention (Y) As It Enhances Customer Experience. Performance Expectancy

(X3) Which Is The Perceived Usefulness Of The Digital Payment Platform Is Also Expected To Positively Influence Repurchase Intention

(Y) As It Enhances Customer Satisfaction. Innovativeness (X4) Of The Digital Payment Platform Is Expected To Positively Influence

Repurchase Intention (Y) As It Increases Customer Excitement And Interest In Using The Platform. Finally, Marketing Variables (X5:

Social Influence) Such As Recommendations From Friends And Family Or Influencers Are Expected To Positively Influence Repurchase
Intention (Y) As It Increases Customer Trust And Confidence In The Digital Payment Platform. Thus, The Research Hypothesis Is That

There Is A Positive Relationship Between Digital Payment Variables (X1), Facilitating Conditions (X2), Performance Expectancy (X3),

Innovativeness (X4), And Marketing Variables (X5: Social Influence) And Repurchase Intention (Y)

2.6 Research Hypothesis

H4: X4 has a significant effect on Y.

H5: X5 has a significant effect on Y.
H6: There is a significant relationship between X1, X2, X3, X4, X5 and Y.

Theoretical foundation and previous research suggest that digital payment variables (X1) may
have a positive effect on repurchase intention (Y) in the cosmetic industry. Facilitating
conditions (X2), performance expectancy (X3), and innovativeness (X4) have also been
identified as potential predictors of repurchase intention in the literature. Additionally, social
influence (X5) may play a role in influencing customers' repurchase intention.

Based on this theoretical foundation and previous research, the research hypotheses (H1-H5)
suggest that each of the independent variables (X1-X5) will have a significant effect on
repurchase intention (Y). The final hypothesis (H6) proposes that there is a significant
relationship between all independent variables and the dependent variable.

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