The Impact of Visual Promotion and Consumers` Perception of Risk Toward Consumers` Purchasing Decision in a Skin Care Store in Shopee

Abstract

In 2020, almost 74% of Indonesian population have access and use the internet to facilitate online transactions. Online shopping has limitation of low direct interaction between products and potential consumers. This leads to the needs of online retailers to create effective strategies in order to attract consumers to choose their store over the others, including attracting them visually and creating strategies to lower perceived risks. A survey was distributed, resulting 206 responses and the results indicate that visual promotion and consumers'; perception of risk (including the impact of giving out consumer money-back guarantees, hassle-free returns, and e-WOM) are positively and significantly affecting online consumers'; purchase intention and purchase decision of Indonesian woman with age ranging from 23-65 years old, who have experiences in buying skin care products in online store in Shopee for the last 3 months. This study provides meaningful implications and recommendations for online retailers in the beauty industry to use attractive visual promotion and offer risk reduction strategies to influence customer’s purchase intention and purchase decisions as discussed in this study.

Keywords: Consumer Behavior, E-Commerce, Perceived Risk, Purchase Decision, Purchase Intention, Visual Promotion.