Effect of Bio Cosmetic Brand Equity on Brand Loyalty and WOM Intention

Abstract

Purpose: The purpose of this study is to examine the brand equity factors for bio cosmetics and to examine how brand equity for bio cosmetics affects brand loyalty and word of mouth intention through empirical analysis.Methods: Adults in their 20s or older living in the Seoul metropolitan area who had experience in using bio cosmetics were used as the sample group. It was conducted for 2 weeks from the 2nd week to the 3rd week of March 2022, and only 232 valid data were used for the final analysis, excluding insincere responses.Results: First, it was found that brand trust and brand image, which are brand equity of bio cosmetics, had a significant effect on brand loyalty. Second, brand loyalty of bio cosmetics was found to have a significant effect on word of mouth intention. Third, brand image and brand trust, which are brand equity of bio cosmetics, were found to have a significant effect on word of mouth intention. Fourth, the partial mediating effect of brand loyalty on the relationship between brand equity (brand image, brand reliability) and word of mouth intentions of bio cosmetics was confirmed.Conclusion: This study is meaningful in that it empirically examines the relationship between brand equity and word of mouth intentions for bio cosmetics and examines the mediating effect of brand loyalty. It will have great implications for the bio-cosmetics industry preparing for the post-corona era.