Moderating structural equation modeling (MSEM) on product attributes of drekle'sskincare using principal component analysis (PCA)

Amid the growth of the industry, the number of new skincare products in the market continues to increase. drekle'sskincare, a local Indonesian skincare brand, has experienced significant growth since the pandemic. In this decade, an approach has been developed to address the relationship between independent and dependent variables, influenced by other latent variables known as Moderating Structural Equation Modeling (MSEM). Therefore, this study employs MSEM and the Partial Least Squares (PLS) algorithm to examine the moderating role of product attributes within the structural equation model, while using Principal Component Analysis (PCA) to reduce the dimensionality of product attributes. This aims to identify whether the moderating variable affects the relationship between consumers' psychological perceptions or purchase intentions and their buying decisions across segmented groups based on principal component scores. The study utilizes primary data from an online questionnaire survey involving 240 respondents, who are customers and consumers of drekle'sskincare in the Greater Jakarta area (Jabodetabek). Based on the results from the MSEM-PLS method, it was concluded that in Group 1, product attributes significantly moderate the relationship between consumer perceptions or purchase intentions and their buying decisions, with a p-value of 0.007. However, in Group 2, product attributes did not significantly moderate the relationship between perceptions or purchase intentions and buying decisions, as indicated by a p-value of 0.435. Hence, it is observed that product attributes do not have a uniform moderating effect across both groups, necessitating different treatments or strategies for each group. By identifying distinct customer segments and their specific needs and preferences, these findings provide insights into more effective sales and marketing strategies. The insights and findings are expected to support the strategic efforts of the CEO and team in achieving the brand's vision, 'Everyone can look stunning,' through a better understanding of the market, thereby encouraging more users to recommend drekle'sskincare products to the Indonesian public.