Electronic Word-of-Mouth and Consumer–Brand Relationships in the Indonesian Cosmetic Industry

Abstract

Indonesia’s expanding cosmetics market is increasingly shaped by digital interactions, making negative electronic word-of-mouth (e-WOM) an important influence on consumer–brand relationships and responses to product innovation. This study aimed to examine the relationships among negative e-WOM, brand trust, customer loyalty, and consumer resistance to innovation in the Indonesian cosmetics industry. A quantitative causal-relational design was employed, with data collected through a structured online questionnaire. Respondents were cosmetics consumers aged 17 years or older who had encountered online reviews or digital discussions concerning cosmetic products and were selected through purposive sampling. Data were measured using a five-point Likert scale and analyzed using partial least squares structural equation modeling (PLS-SEM), including measurement model assessment, structural model evaluation, and bootstrapping. All four hypothesized relationships were positive and statistically significant. Negative e-WOM had a significant effect on brand trust (B = 0.669, p < 0.001) and customer loyalty (B = 0.474, p < 0.001); brand trust had a significant effect on customer loyalty (B = 0.476, p < 0.001); and customer loyalty had a significant effect on resistance to innovation (B = 0.670, p < 0.001). These findings demonstrate an interconnected relational pathway and suggest that customer loyalty may create inertia toward unfamiliar or newly introduced products. Cosmetics companies should therefore integrate proactive online reputation management, trust-building initiatives, and gradual, educationally oriented innovation strategies.