PURCHASE INTENTION MODEL BASED ON STORYTELLING, PRODUCT INNOVATION, VALUE CO-CREATION, AND EMPOWERMENT OF FARMERS IN INDONESIAN NATURAL COSMETIC PRODUCTS

Abstract

Objective: This study aimed to examine and explain the effect of storytelling and product innovation on the purchase intention of cosmetics made from natural ingredients through value co-creation and moderated by farmer empowerment. Method: The method used is a quantitative approach using Structural Equation Model Partial Least Square (SEM-PLS) models technique on SmartPLS 3.0. The sampling technique used is a non-probability sampling technique, and the respondent was natural cosmetic users in Indonesia. Results: The results show that storytelling is related to purchase intention and is also related to value co-creation which in the end value co-creation can increase purchase intention. In addition, product innovation can also increase purchase intention and value co-creation, which can escalate purchase intention. Empowerment does not significantly affect purchase intention directly, but the empowerment that moderates storytelling proves to exert a significant influence on purchase intention. Value co-creation significantly mediated the effect of storytelling on purchase intention, and it mediated the effect of product innovation on purchase intention. Conclusion: New product innovations are proven to have a significant effect on the purchase intention and value co-creation process. Value co-creation is proven to be able to increase purchase intention and also able to mediate storytelling and product innovation to increase purchase intention. Finally, farmer empowerment has been able to provide reinforcement when storytelling seeks to increase purchase intention.