Integrating country of origin, brand image and halal product knowledge: the case of the South Korean skincare in Indonesia

Abstract

PurposeThe purpose of this study shows the effect of the value of country of origin and brand image on the purchasing decision of South Korean skincare with halal product knowledge as a moderator variable.Design/methodology/approachThe research method used is descriptive quantitative by analyzing the responses to questionnaires distributed to 212 respondents from all over Indonesia. Based on previous research, four hypotheses were built, and the collected data were processed using a path analysis tool through the SmartPLS 3.3.3 application.FindingsThe results showed that the country of origin and brand image variables had a significant effect on the purchasing decision of South Korean skincare with halal product knowledge as a moderator variable. Meanwhile, the halal product knowledge variable does not moderate the influence of country of origin and brand image on South Korean skincare purchasing decisions. This finding confirms that the halal product knowledge factor has not been sufficient to strengthen the influence of country of origin and brand image on South Korean skincare purchasing decisions.Practical implicationsTo increase knowledge about Muslim halal in South Korea’s skincare purchasing decisions, the role of halal assurance institutions and South Korean and Indonesian skincare manufacturers is needed in optimizing halal certification and international agreements related to halal guarantees. In addition, halal cosmetics business actors in Indonesia and Korea must increase halal awareness of the products they sell through brand image and halal product knowledge so that they can convince and encourage Muslim consumers in making decisions to buy South Korean skincare in Indonesia.Originality/valueTo the best of the authors’ knowledge, this study is the first to test country of origin and brand image on the decision to purchase South Korean skincare with halal product knowledge as a moderator variable. This study succeeded in revealing the strengths and weaknesses of the value of country of origin and brand image in influencing the purchasing decisions of South Korean skincare in Indonesia.