Role of Omnichannel Retailing on Customer Retention Mediated by Brand Experience in Cosmetics Retail: SOR Approach

Abstract

The Covid-19 pandemic has been going for two and a half years and is starting to enter the recovery phase. Indonesian consumers have changed consumer behaviour and more adaptable to technology. Technological advances have encouraged the creation of omnichannel, an integrated channel management model of all available channels. This research focuses on factors that influence customer retention with application to cosmetic retailers in Indonesia using SOR theory. Stimulus Organism Response (SOR) theory is used to identify customer purchasing behaviour in cosmetics omnichannel retail and analyze omnichannel strategies to increase customer retention. Sociolla was chosen as an Indonesian cosmetics retailer that has implemented omnichannel and dealt with customer retention problems. Sociolla experiences fluctuations in website community visitors, so it is necessary to analyze what factors influence customer retention from Omnichannel stimulus on Sociolla. Data from 172 respondents was collected by a 1-7 Likert scale questionnaire using Google Forms. This research used quantitative cross-sectional and purposive sampling for SEM-PLS. Five of the seven hypotheses supported that omnichannel interaction and individualization have a significant positive effect on sensory, affective and behavioural brand experiences. Brand experiences that prioritize visuals and emotions also influence Sociolla customer retention, especially for cosmetic products.