Advances in Social Science, Education and Humanities Research (ASSEHR), volume 186

15th International Symposium on Management (INSYMA 2018)

The influence of Hallyu, packaging and subjective norms towards buying

intention on culture adaptation in Etude House
Yuco Aldelina & Jony Oktavian Haryanto
President University, Bekasi, Indonesia

ABSTRACT: The growth of cosmetic’s industries became rapid especially in Indonesia with the presence of
local brands cosmetics and imported brands cosmetics. One of the competitors is Etude House, imported
brand cosmetic from South Korea, which is now demanded by men and women especially the young people.
Hence, researcher interested to have the research on The Influence of Hallyu, Packaging and Subjective
Norms towards Buying Intention on Culture Adaptation in Etude House. This study used the non-probability
sampling with purposive sampling, 200 respondents were taken part, and the data was tested by using struc-
tural equation modeling with AMOS2.2. The result of the findings showed that Hallyu had no positive influ-
ence on buying intention but had a positive influence on culture adaptation, packaging had a positive influ-
ence on buying intention, subjective norm had a positive influence on buying intention and culture adaptation,
but buying intention had no positive influence on culture adaptation.
Keywords: Hallyu, subjective norms, buying intention, culture adaptation

1 INTRODUCTION Nowadays, several men or women are using cos-

metics in their activities. The trend of the cosmetic
Cosmetic industry is one of the industries in the industry for the men and women especially teenag-
world that is facing a tough and severe competition. ers and young adults is the products from South Ko-
According to Indonesia Finance Today (2015), In- rea. This caused by the K-pop fever in Indonesia fea-
donesia’s cosmetic market value generated over US$ tured by the beautiful actress, actors, and promotion
5 billion with the average growth of 12% per year. of their cosmetic products. The activity to spread out
The opportunities of cosmetics market in Indone- their culture and products, called as “Hallyu” or the
sia is still very large and cosmetic industry in Indo- “Korean Wave”.
nesia is also a good place for the foreign company to Buying intention or purchase intention is the will-
enter the market, it can be seen from the 70% mar- ingness of a customer to buy a certain product and
ket share of the cosmetic industry in Indonesia is the factors of buying intention come from external
ruled by the foreign company. One of them is Etude and internal sides. From many cosmetic products
House, a cosmetic product from South Korea with that are offered in the market, consumers usually use
the pink pastel color that gives a girly impression to a specific factor to create the buying intention of a
their consumers to easily attract the women’s inter- product such as trends, packaging, and subjective
est. According to Teen Magazine, Etude House was norm. Trends such as Hallyu could trigger the fans
established in 1966. Then, it changed into Oscar to buy, emulate and use the same product to be like
Corporation in 1985. Finally, in 1997 the company actress and actors from South Korea.
name was changed to Etude Corporation then Attractive packaging will affect the buying inten-
changed to Etude House as today. tion, which is in line with the theory of consumer
The development of the cosmetic products is be- behavior psychologically saying that a consumer
coming the trend and basic goods for the people in will make observations of the goods to be purchased
the developing country like Indonesia. It can be seen and used by consumers (Kotler & Keller 2014). At-
not only from the number of the outlets that sell the tractive product packaging will encourage a con-
cosmetic products, starting from the big to small out- sumer to provide ease of use and storage so that con-
let, but also from the way the cosmetics used to. sumers feel satisfied. The unique design, an
Copyright © 2018, the Authors. Published by Atlantis Press. 136
This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
 Advances in Social Science, Education and Humanities Research (ASSEHR), volume 186

assortment of sizes, colors, forms, and information live in Bekasi area. Nonprobability sampling - the
given on the packaging will increasingly influence judgmental sampling was used in this study.
consumers in determining the choice of products. According to Copper & Schindler (2011), judgmen-
Etude House’s packaging is very attractive as it used tal sampling is a sampling technique with certain
the pink pastel color, good material, and design. considerations. In this study, respondents selected
Product quality is one of the factors that triggers were respondents who met the following criteria: 1)
the buying intention, the better the quality, the great- Male or Female aged 17 – 40 years. 2) Have used
er the potential. However, the subjective norm can the Etude House’s product. The number of samples
reverse the fact that better quality will increase the taken was 200 respondents from several groups,
buying intention. This caused by a subjective norm such as students, employees, entrepreneurs, and
which is a component contains the decision made by housewives who've bought Etude House’s products.
an individual after considering the views of those The primary data comes from the original source by
people who influence the behavior. Family, friends, its own question. The questionnaire contains about
and people who have higher positions such as teach- four variables, Hallyu, packaging, subjective norms,
ers, lecturers, superiors, and those who have the and cultural adaptation.
dominant role in one’s life to make a positive contri- This research used Structural Equation Modeling
bution to consumer buying interest. (SEM) methods. Questionnaire instrument used was
Based on the background, the objective of this re- a 5-point Likert Scale, with the interval level of
search is to determine how much the influence of measurements as follows: (1) Strongly disagree, (2)
Hallyu, packaging, and subjective norm on consum- Disagree, (3) Neither agree or disagree, (4) Agree,
er buying intention and how much the influence of and (5) Strongly Agree. The author has conducted
Hallyu, subjective norm, and buying intention on the pre-test questionnaire to 30 respondents to see the
cultural adaptation will be the main research prob- validity and reliability of each of the indicators that
lems of this research. The benefit of this research will be used as a statement in the questionnaire. Ac-
will be addressed to the company as input in devel- cording to Hair et al., (2010), an indicator is de-
oping consumer buying intention and other parties as clared valid if the value if corrected item-total corre-
additional knowledge or concept, particularly on lation ≥ 0.361 and declared reliable if the value of
Hallyu, packaging, subjective norm, buying inten- Cronbach’s Alpha > 0.7. The data obtained from the
tion, and cultural adaptation. questionnaires were analyzed using Structural Equa-
Based on the description above, this study will tion Modeling method with AMOS 2.2.
examine matters related to the buying intention,
which includes: Hallyu, packaging, subjective norm,
and the role of Hallyu, subjective norm, and buying 3 DISCUSSIONS
intention towards culture adaptation. As for the re-
search question of this study are as follows: 1. Does By using SEM and AMOS 2.2, it is obtained
Hallyu influence Etude House’s consumer buying overall suitability structural model test, which also
intention? 2. Does packaging influence Etude produces the conformity value or GOF. Conformity
House’s consumer buying intention? 3. Does values are shown in table 1. Good-of-Fit criteria are
subjective norm influence Etude House’s consumer the step in which the model is concluded as accepta-
buying intention? 4. Does buying intention influence ble or not. The Chi-Square indicates the difference
culture adaptation on Etude House? 5. Does Hallyu between the estimated population covariance and
influence culture adaptation on Etude House? And 6. sample covariance. The smaller Chi-square value,
Does subjective norm influence culture adaptation the better. CMIN/DF was done in order to find the
on Etude House? minimum standard of discrepancy function divided
by the degree of freedom. As the CMIN/DF value is
2.693, which passes the requirement to the Good-of-
2 RESEARCH METHODS Fit criteria, thus it can be concluded that the model is
acceptable. RMSEA is measuring how well the
The subjects of this research were women who model with the parameter of the population, since
had been buying or consuming the Etude House. The RMSEA value ranging from ≤ 0.08, it indicates me-
data to be used were the primary data, collected by diocre fit, therefore as the RMSEA value in this re-
distributing the questionnaires in person and via search is .092, this model is considerably mediocre
online by the Google Docs. The research population fit in the population. TLI or Tucker-Lewis Index is a
was the people who live in Bekasi and use the Etude measurement used to compare the proposed model
House’s product. The sample of this research was and the possible alternative model. As the TLI value
students, employees, housewives, and others who in this research is .809, the model is concluded as
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 Advances in Social Science, Education and Humanities Research (ASSEHR), volume 186

acceptable fit. IFI or Incremental Fit Index is a makes the Korean product on the market as the tar-
measurement used to measure the proposed model gets for the must-buy-items to follow the Korean art-
whether it is correct or not. As the IFI value in this ist. The hypothesis is rejected, allegedly, because of
research is .845, this model is concluded as accepta- the people appreciate the Korean drama, music and
ble fit. The CFI or Comparative Fit Index measure- culture, but the buying intention on the Korean
ment is used to measure the improvement in non- product is still questionable. The respondents also
centrality in going off the model. Since this research are not interested in buying the products from South
shows the value of .0842, thus it is considered as a Korea even there’s the Hallyu effect. The respond-
good fit model. After analyzing the assessment from ents only got the message of Hallyu as the cultural
the model fit index, it is concluded that the model is aspects such as the language, TV shows, music,
acceptable in the population and has a mediocre fit fashion, and foods.
to reach the reasonable level in real life application. Based on the findings in table 2, The P-value of
H2 is 0.000. In other words, it is below than 0.05
Table 1. Goodness of Fit (GOF) Value Index and the H2 is significant. Hence, the hypothesis of
GOF Indicator Good Fit Value Estima- Conclusion packaging has a positive influence on consumer buy-
tion Re- ing intention is supported by the data and hypothesis
sult is accepted 2. These findings are in line with the
X² - Chi P < 0.05 .000 Significant
Square statement of Chandrawati (2015) that a good pack-
aging will attract consumer because of its color, font,
CMIN/DF L0<CMIN/DF<3 2.693 Good Fit background, and the shape of packaging. Therefore,
a better packaging will affect the consumer purchas-
RMSEA RMSEA≤ 0.08 0.092 Mediocre ing intention. Currently, the role of packaging
Fit
TLI 0.0 < TLI < 0.9 .809 Good Fit
change with increasing consumer interest and it be-
comes a tool used by companies to increase sales
IFI IFI ≥ 0.90 .845 Marginal and reduce promotion costs. Attributes in packaging
Fit such as color, background, shape, text, and so forth
CFI 0.8 < CFI < 0.9 .842 Good Fit can attract the attention of consumers. When con-
Source: Tasmin and Woods (2010), Arbuckle (2012), Primary sumers are attracted to the packaging then they will
Data (2016) buy. But if the packaging does not attract the atten-
tion of consumers, the consumer will less likely buy
Table 2 shows the aspects that affect the buying in- the products. These findings are also in line with
tention and culture adaptation most. The most influ- Nazarullah (2014) who state that the appeal of the
ential in buying intention is the H2 or the packaging packaging is very important to capture consumer
to buying intention and the most influential in a cul- stimulus delivered to manufacturers that trigger their
tural adaptation that is the H6 or subjective norms to buying interest of consumers.
cultural adaptation. P-value shows the significant Based on the findings in table 2, the P value of
level of the variable. Therefore, P-value is used to do H3 is .016 which is significant because the P Value
the hypothesis testing, when P value is lower than is < 0.05. Hence, the hypothesis of subjective norms
(<) 0.05, it means significant and the hypothesis is has a positive influence on consumer buying inten-
supported by the data. tion is supported by the data and accept H3. These
findings are in line with Tjahjono & Ardi (2008)
Table 2. Hypothesis Test who stated that subjective norms are form of norma-
Hypothesis CR P Value Findings tive beliefs and willingness to obey the wishes of
H1 1.906 .057 Not supported others that are considered more important and re-
H2 4.304 .000 Supported
H3 2.420 .016 Supported
garding the condition of the importance of the indi-
H4 1.704 .088 Not supported vidual or group referents will agree or disagree with
H5 4.318 .000 Supported the particular behavior. Subjective norms tend to
H6 5.913 .000 Supported give the indirect pressure to a people to agree and
Source: Primary Data (2016) follow the specific action even on a buying action.
These findings also in line with Yogatama (2013)
Based on H1 on the findings in table 2, P-value is who stated that subjective norm also gives the influ-
.057 which is more than 0.05, means the hypothesis ence and encourage the consumer to the buying in-
is not significant. Hence, the hypothesis of Hallyu tention because of the social pressure felt by indi-
has a positive influence on consumer buying inten- viduals to do any action.
tion is not supported by data. These findings are not Based on the findings in table 2, the P-value of
in line with Rizki (2014) who stated that Hallyu H4 is .088, means the hypothesis is not significant
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 Advances in Social Science, Education and Humanities Research (ASSEHR), volume 186

because the P value is < 0.05. Hence, the hypothesis greater the consumers buying intention towards the
of buying intention has a positive influence on cul- product. (3) Subjective norms have a significant and
ture adaptation is not supported by data. These find- positive influence on consumer buying intention
ings are not in line with Suryanto (2013) who stated which signifies that the social pressure can affect the
that a behavior of purchasing a certain product in a belief of an individual to follow and perform a cer-
specific place will automatically create a sense of tain behavior. (4) Buying intention has no significant
love to the product origin. The hypothesis is reject- and positive influence on culture adaptation. This
ed, allegedly, because of the Etude House only sells means by purchasing a product from a particular
the cosmetic products and they didn’t educate the country, it does not mean that people will absorb
buyer to like and adapt the Korean culture. their culture. (5) Hallyu has a significant and posi-
Based on the findings in table 2, the P-value of tive influence on culture adaptation. This means the
H5 is 0.000, means the hypothesis is significant be- spreading of Hallyu by the TV shows, music, and
cause the P-value is < 0.05. Hence the hypothesis fashion will trigger the people to like, love, and learn
Hallyu has a positive influence on culture adaptation the Korean culture. (6) Subjective norms have a
is supported by the data and accepted. These find- significant and positive influence on culture adapta-
ings are in line with Farrar (2010) who stated that tion. This means that social pressure can affect the
the purpose of spreading the Hallyu is to create the people who previously do not like the Korean cul-
mindset of the people aboard to like and love the ture to like the Korean culture. It happens because
Korean culture. Hallyu has successfully created the the subjective norm is a form of normative beliefs
mindset of the young people in Indonesia to like and and willingness to obey the wishes of others.
love the Korean Culture. It can be seen from the be- There are some limitations of this research as
havior of the respondents who tend to learn the Ko- follows: (1) Etude House is the only product which
rean culture such as language and use the Korean been observed, so there is no comparison with the
products. Moreover, in the society, it can be seen other product. (2) This research was only done in a
that K-drama, K-music, and K-fashion are the new small city of Bekasi, so the rearchers hope the future
trends and culture amongst the people. research can be done in a bigger city. (3)
Based on the findings in table 2, The P-value of Researchers only analyzed the factors of buying in-
H6 is 0.000, in other words, it is < 0.05 and the H6 is tention towards culture adaptation. The variables
significant. Hence, the hypothesis of the subjective used in this research were Hallyu, packaging, and
norm has a positive influence on culture adaptation. subjective norms. Researchers hope in the future re-
Subjective norm also successfully creates the mind- search, it can add some variables either on interven-
set of the Indonesian people to like and love the Ko- ing variables, dependent variables or independent
rean culture. It happens because the subjective norm variables in order to give new facts which could be
is the social pressure to make the people follow and used and studied for people and society, such as, ad-
believe in someone's perception. These findings are vertisement, word-of-mouth, customer satisfaction,
in line with Ajzen (1991) who stated that subjective loyalty, brand ambassador, and promotion.
norm is related to the perceived social influ-
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