Influencer Marketing and Online Advertising as A Digital Marketing: A Case Study Green Beauty Products

The beauty industry in Indonesia is experiencing rapid growth, driven by factors such as a large young population and increasing purchasing power. The government is also encouraging improvements in the supply chain of raw materials to increase the national added value. Additionally, advancements in technology and the rise of social media and digital platforms have provided opportunities for the promotion and dissemination of beauty products. Influencer marketing and online advertising have become popular strategies for promoting beauty products. These techniques have been found to have a positive impact on consumer purchase decisions. Green brand knowledge has also gained importance in the beauty industry, as consumers are becoming more conscious of environmental issues and seeking sustainable and eco-friendly products. Therefore, this study aims to examine the impact of influencer marketing, online advertising, and green brand knowledge on the purchase decisions of green beauty products. The study utilizes a quantitative research approach and analyses data from 100 consumers. The findings suggest that influencer marketing and online advertising, have a direct impact on purchasing decisions, while green brand awareness has an insignificant impact on purchase decisions. The study recommends that companies focus on creating high-quality influencer content and implementing effective online marketing strategies to enhance the impact of these techniques. Additionally, companies should choose influencers and platforms aligned with their target audience. The study acknowledges limitations in sample size and research method and suggests further research to validate the findings.


I. INTRODUCTION
The beauty product industry is witnessing a trend towards environmentally friendly and sustainable green beauty products.The beauty product industry is witnessing a trend towards environmentally friendly and sustainable green beauty products.This industry utilizes natural and organic ingredients coupled with eco-friendly production methods.Although the green beauty products industry is relatively new, it is rapidly growing.This trend is motivated by rising public awareness about the significance of environmental protection.Consumers are searching for beauty products that are sustainable and eco-friendly.The green beauty industry provides an array of products, including 1) Natural bath soaps crafted with coconut oil, shea butter, and honey.2) Natural shampoo and conditioner contain argan oil, jojoba oil, and aloe vera.3) Our natural face cream is made with green tea, aloe vera, and hyaluronic acid.4) Natural face serum is infused with vitamin C, retinol, and niacinamide.5) Our makeup line features natural mineral makeup and organic lipstick.Green beauty products typically have higher prices than conventional beauty products due to increased production costs and the limited availability of natural raw materials (Ikbal, 2022).Green beauty products typically have higher prices than conventional beauty products due to increased production costs and the limited availability of natural raw materials (Ikbal, 2022, Cleanomic, 2020).
Although the green beauty products industry is still a nascent market, its outlook is highly favorable.This can be attributed to various elements, such as: 1) The industry's potential for growth is expansive due to the increasing public consciousness of the significance of environmental preservation.Consumers are progressively attuned to the environmental repercussions of their purchasing decisions and are, therefore, seeking out eco-friendly products; 2) The competitive landscape is relatively underdeveloped.The emerging green beauty industry in Indonesia presents ample opportunities for new entrants due to the low competitiveness in the market.This is augmented by the abundant natural resources, which offer a substantial supply of organic materials for producing eco-friendly beauty products.This is augmented by the abundant natural resources, which offer a substantial supply of organic materials for producing eco-friendly beauty products.Furthermore, technological advancements have facilitated the production of such green beauty items.Advancements in technology enable manufacturers to create eco-friendly beauty products that are affordable and of high quality.Additionally, the government offers support to the green beauty industry through policies such as tax incentives for producers of sustainable beauty products (Sari, 2022, Ministry of Industry, 2020).
To develop the beauty products industry, the government is encouraging improvements in the supply chain of raw materials.The reason for this is that Indonesia's abundant biological resources can increase the national added value.After Brazil, Indonesia is the world's second-largest country with the most cosmetic biological resources.Three fundamental factors will propel the growth of the beauty industry in Indonesia.These include a large young population, among others.Indonesia boasts a sizable youthful demographic, with the average age of its population standing at 28 years old.The beauty industry is set to flourish thanks to the rising purchasing capacity of younger generations, in addition to the country's favorable economic development which will heighten consumers' collective buying might, with particular regard to beauty products.Additionally, social media and digital platforms will serve as key vehicles for the promotion and dissemination of such products.Advances in technology, social media, and digital platforms will increase the diversity of cosmetic products and provide domestic consumers with affordable access (Ministry of Industry, 2020).
The beauty industry is highly competitive, requiring companies to effectively market their products and services for success.Two marketing strategies that can aid this goal are influencer marketing and online advertising.These strategies have the ability to influence consumer purchasing decisions in numerous ways within the beauty industry, including: 1) To increase brand awareness, influencer marketing, and online advertising can be effective strategies.These methods showcase products or services to a wide audience.2) Influencer marketing and online advertising can also help build consumer trust by promoting products or services positively.3) To increase consumer interest, influencer marketing, and online advertising can showcase products or services in an appealing manner.4) Similarly, to encourage purchases, these marketing methods can provide discounts, coupons, or other promotions (Koay et al., 2022, Graham & Wilder, 2020, Le & Aydin, 2023).According to a 2022 survey on the beauty industry in Indonesia, around 78% of respondents reported that local influencers such as Selebgram, YouTubers, and TikTokers had an impact on their purchasing decisions for beauty products and services.Local actors and actresses were the next most influential group, with about 23.7% reporting their influence.The term "Selebgram" is derived from the words "Celebrity" and "Instagram," referencing a popular user's account on the platform.
Aside from influencer marketing and online marketing, there are other factors that can influence purchase decisions, particularly green brand awareness.This term refers to the awareness of consumers towards the importance of protecting the environment and their preference for products and services that are eco-friendly.Green brand knowledge refers to consumers' awareness of brands that prioritize sustainability.Such awareness can impact their purchasing decisions in several ways, including boosting their confidence in the brand, making them feel good about buying sustainable products, and increasing their awareness of products' environmental impact (Borah et al., 2023, Mansoor et al., 2022).

II. LITERATURE REVIEW
Effective marketing can be achieved through the use of social media and influencer marketing.An influencer, be it an individual or an organization, possesses a significant influence over their followers on social media or other online platforms, and their words have the potential to impact the behavior of their audience.The characteristics of the influencer must align with the product being promoted to capture the audience's interest.Influencer marketing is a commercial tactic that leverages popular personalities to endorse products or services to their audiences, prompting them to make purchasing decisions (Tjiptono, 2016, Yoga Prasetya et al., 2016).This method has been proven to effectively steer consumer desires and requirements.The aforementioned attributes justify its use as a lucrative marketing strategy.As research suggests, it is anticipated to foster sales by imparting a positive influence on consumer decision-making.Influencer marketing is a marketing strategy that uses influencers to expand audience reach, boost sales, and enhance consumer relationships.Studies by Le et al.;2023, Lengkawati, 2021, and Yoga Prasetya et al., 2016, demonstrate the impact of influencer marketing on consumer purchasing decisions.
Online advertising is commercial content that is accessible on the internet and aimed at informing consumers about a product or service.This content can be presented through various channels and formats, offering different levels of information (Yoga Prasetya et al., 2016, Ary Putra, 2014).When it comes to viewing online advertisements, four key dimensions have a significant impact on internet users.Research conducted by Shavitt and Kanfer, 1999 has demonstrated that online advertising can influence purchasing decisions through four main factors: 1) the value benefit of the ad in meeting consumer needs, 2) the credibility of the ad, 3) the perceived value of the advertised product or service, and 4) the suitability of the ad with applicable regulations.
Green brand knowledge refers to nodes in memory associated with a brand's environmental commitments and care.These associations can include information about raw materials, production processes, and company policies.Additionally, green brand knowledge encompasses details on a product's unique attributes and its overall benefits to the environment.Unique brand features may comprise eco-friendly manufacturing methods, sustainable packaging, or utilization of natural raw materials.Green Brand Knowledge is a significant determinant for consumers when making purchasing decisions based on a commitment to sustainability from the brand in question (Himawan, 2019, Suki, 2016).The hypotheses proposed and will be proven true in this study are: H1: Influencer marketing is positively influenced by the purchase decision of green beauty products.H2: Online advertising is positively influenced by the purchase decision of green beauty products.H3: Green brand knowledge is positively influenced by the purchase decision of green beauty products.H4: Influencer marketing is positively influenced by the purchase decision of green beauty products moderated by green brand knowledge.H5: Online advertising is positively influenced by the purchase decision of green beauty products moderated by green brand knowledge.

III. RESEARCH METHODOLOGY
The study utilized a quantitative research approach to investigate the impact of green brand knowledge on the connection among influencer marketing, online marketing, and consumers' purchase decisions of green beauty products.The data analyzed in this study comprise both primary and secondary data.The study's primary data was acquired by administering Likert rating scale questionnaires to customers who purchased and used green beauty products from The Body Shop, Love Beauty and Planet, Nature Republic, Innisfree, Yves Rocher, and L'Occitane en Provence brands.Secondary data was acquired indirectly through books, journals, websites, and prior research of this study.The sample size was 100 green beauty product consumers and the Lemeshow algorithm was utilized.This study employed a purposive sampling technique for participant selection.The sample criteria were consumers in Bandung, Indonesia; consumers aged 18-65 years, male or female; consumers who had used the product for at least six months; and consumers who used environmentally friendly beauty products at least twice a week.The purpose of the participant selection criteria is to guarantee that the individuals taking part in the study possess the same traits as the study's target demographic, which is consumers of skin care products who purchase and utilize eco-friendly beauty goods.PLS-SEM is a predictive technique that combines causal and measurement modeling.The approach prioritizes prediction and employs value-neutral language to avoid bias.The paper follows a conventional academic structure with clear headings and logical structure.Technical terms are explained and consistent grammar and spelling are used throughout.Standard citation and footnote styles are maintained.PLS-SEM enables researchers to handle intricate models featuring a variety of supplementary constructs and factors, such as mediators for environmental responsibility drives, moderators for perceived social media trust, and moderators for perceived environmental effectiveness, without having to consider data distribution assumptions.Therefore, PLS-SEM presents a superior method for this study, primarily due to potential sampling issues.The method, which comprises two stages -the measurement model (outer) and the structural model (inner) -was employed to assess the model (Hair et al., 2019a).
Partial Least Squares (PLS) is a variance-based SEM methodology for predicting and elucidating latent variable connections.The covariance-based SEM provides an optimal estimate of the model parameters if the hypothetical structural and measurement models accurately explain the covariance of all indicators and the data and sample size meet the necessary conditions.The Partial Least Squares (PLS) statistical method was chosen in the research for eco-friendly skincare consumers for several reasons; for starters, PLS is a data analysis method based on the assumption that the sample size does not need to be large.Second, because it can predict, PLS is useful for analyzing theories that are still considered weak.Third, PLS enables the algorithm to avoid the problem of identifying non-recursive models by using series ordinary least squares (OLS) analysis (reciprocal models between dependent and independent variables).Fourth, the PLS approach presumes that all variant sizes can be used to explain the data (Hair et al., 2019a;Schubring et al., 2016).Inferential statistical analysis was conducted utilizing the SmartPLS 4 software, beginning with the measurement model (external), model structure (internal), and hypothesis testing.

IV. RESULT/FINDING
Table 2 contains critical information about the respondents' characteristics that is necessary for interpreting the research findings.The goal of this study is to determine consumer purchasing decisions based on key demographics such as gender, age, education, occupation, and monthly income.This data is critical for understanding how consumer preferences differ based on these variables.At this stage, researchers verify the reliability of the data to ensure its trustworthiness.This is accomplished by assessing the internal consistency, convergent construct validity, and discriminant validity of the latent constructs.Internal consistency measures how well indicators within a construct correlate with each other.The Cronbach alpha coefficient is the preferred method to assess internal consistency.A Cronbach alpha value above 0.7 signifies good internal consistency within the construct's indicators.Convergent construct validity assesses the degree to which indicators within a construct measure the same underlying construct.Researchers can evaluate convergent construct validity by examining the correlation among indicators within a construct.If the indicators in a construct display a strong correlation, it suggests that they are measuring the same construct.Discriminant validity is a measure of how well distinct constructs can be differentiated from one another.The assessment of discriminant validity involves examining the correlation between diverse constructs.Constructs that show a low correlation suggest that they can be differentiated from each other.All eligible measures demonstrated high reliability with Cronbach alpha values exceeding 0.7.Consequently, the researcher determined that the data utilized was of satisfactory quality (Hair et al., 2019a).
As shown in Table 3, the measurement model evaluation indicates that each structure's Cronbach's alpha value exceeds the 0.700 limit value due to its higher overall reliability.Additionally, the composite reliability (CR) values range from 0.873 to 0.937, surpassing the 0.70 limit value (Hair et al., 2019a), confirming high levels of process reliability.Survey instruments of this kind are widely accepted as valid across all domains of research design and are free from errors stemming from chance.Relevant metrics for computing convergent validity include composite reliability values, standard factor loading, and extracted average variance.The measurement model evaluation revealed an AVE value greater than the optimal threshold of 0.50.(Hair et al., 2019a).Additionally, each item's loading exceeded the optimum value of 0.70 (Hair et al., 2019a), and the composite's reliability surpassed 0.70, implying that the structure has noteworthy convergent validity.The study's findings indicate that the discriminant validity requirement for each construct was met because the diagonal value of each construct is greater than the value of its corresponding rows and columns.In this context, the structural model is the second step of the Partial Least Squares (PLS) process utilized to evaluate test hypotheses.Table 6 presents the effects of the structural path relationships between the variables.To measure how well the model aligns with the data, R2 is employed.The R2 value signifies the proportion of variation in the dependent variable that can be clarified by the independent variables employed in the model.A higher R2 value indicates a superior model since it explains a larger portion of the variance in the dependent variable.For each dependent variable in the purchase decision model, R2 is gauged, along with an adjusted R2 value.The adjusted R2 value assesses the model's coherence and takes into account the number of independent variables employed.The greater the number of independent variables implemented, the lower the adjusted R2 value.R2 values greater than or equal to 20% are deemed significant in consumer behavior research (Rasoolimanesh et al., 2016).However, given that one of the primary objectives of the research reviewed here was to determine the moderating effect of Green Product Knowledge, a higher R2 was expected.Therefore, for consistency in explanatory modeling efforts, R2 is preferred over Q2.
Path analysis is a technique used to explore the connection between the independent variables of a model and its dependent variable.When the value of the path coefficient is significant, it indicates that the two variables have a strong association.The path coefficient is considered statistically significant when its value exceeds zero and falls outside of the confidence interval (Hair et al., 2019b).The path coefficient is significant at a particular level of significance when the confidence interval does not contain a value equal to zero.If the path coefficient has a significant value, it is reasonable to conclude that a substantial relationship exists between the independent and dependent variables in the model under study.The validation of the three hypotheses in this research model indicates a high correlation between the different variables.It should be noted that the results of this study are limited to the sampled population and cannot be generalized to the entire population without further testing.4 demonstrate that research findings validate only three out of the five proposed hypotheses in this context, which can be seen from P values above 0.00.Influencer marketing and online marketing have a direct impact on purchasing decisions.This implies that these marketing strategies can spur consumer interest in buying a product or service without relying on sufficient knowledge about green beauty brands.Green brand awareness has an insignificant impact on purchase decisions.This suggests that consumers' awareness of a brand's commitment to sustainability has little effect on their buying choices.

V. DISCUSSION
The purpose of this research is to assess the impact of influencer marketing and online advertising on purchasing decisions, as moderated by green brand knowledge of green beauty brands.The study investigates the significance of consumer decision-making in purchasing green products.Influencer marketing and online marketing have a direct impact on consumer purchase decisions, according to the research findings.These two marketing techniques can increase consumer interest in purchasing products or services without requiring them to be familiar with green brands (Le et al., 2023, Lengkawati, 2021, Yoga Prasetya et al., 2016).This result is consistent with other research showing how successful these tactics are in the digital era, especially in the visually and influencer-driven beauty sector.This emphasizes how important it is to comprehend how consumers make decisions when it comes to buying environmentally friendly items.Even in cases when customers are not wellversed on the specifics of green brands, they can still be persuaded to make purchases through persuasive marketing techniques such as influencer endorsements and targeted web advertising.
Several factors could explain the findings of this study.One of the factors is the growing popularity of influencer and online marketing in recent years.These marketing strategies are effective in raising consumer awareness of products or services, as well as increasing consumer trust in brands.Influencer and online marketing can provide consumers with educational resources to help them make better purchasing decisions.Both strategies encourage consumers to make informed decisions by providing educational content.As a result, influencer marketing and online marketing can have a direct impact on purchase decisions without the mediation of green brand knowledge (Mansoor et al., 2022, Konstantopoulou et al., 2019).
Consumers' lack of knowledge about environmentally responsible brands may lead to a lack of interest in a brand's commitment to sustainability.In influencer marketing and online advertising, focusing on sustainability may have little impact on consumer purchasing decisions.This implies that consumers' awareness of a brand's commitment to sustainability has little impact on their purchasing decisions.As a result, knowing a green brand knowledge does not affect the relationship between influencer marketing, online advertising, and purchasing decisions.Another factor that may help to explain the study's findings is that green brand knowledge is not always the most important factor that consumers consider when making purchasing decisions (Krissanya et al., 2023, Tan & Quang, 2023).Other factors such as the product's price, quality, or availability may be prioritized by customers.As a result, knowing about green brands may have little influence on their purchasing decisions.Thus, influencer and online marketing cannot always directly impact purchase decisions.

VI. CONCLUSION AND RECOMMENDATION
According to the findings of the study, the moderation of green brand knowledge does not affect the variables of influencer marketing and online marketing to purchase decisions.This suggests that influencer marketing and online marketing can have a direct impact on purchase decisions without the need for mediation via green brand knowledge.Several factors can explain the results of this study, including: 1. Influencer and online marketing are proving to be extremely effective at increasing brand awareness and trust.
As a result, they may have a direct impact on purchasing decisions without the need for green brand knowledge as a mediator.2. Green brand knowledge may not always be the primary factor in consumer purchasing decisions.Other considerations, such as product availability, quality, and price, may take precedence.Thus, the impact of green brand knowledge on purchasing decisions may not be significant.These findings support the hypothesis that influencer marketing and online advertising can be effective marketing strategies to encourage the purchase of environmentally friendly products, regardless of environmentally friendly brand knowledge.This is because influencer marketing and online advertising can reach consumers in an engaging and informative way, even if consumers have no prior knowledge of green brands.These findings also show that it is important to understand the underlying mechanisms underlying the relationship between influencer marketing, online advertising, and green product purchasing decisions.Overall, the finding that green brand knowledge does not influence the relationship between influencer marketing, online advertising, and purchasing decisions is an important result and has broad implications for marketing research and practice.
Based on the findings of this research, the following recommendations are suggested for companies seeking to enhance the impact of influencer and online marketing on purchasing decisions: 1. Businesses that sell environmentally friendly products don't need to rely on consumer education about green brands to make better purchase decisions.Alternatively, they can concentrate on efficient marketing techniques to connect with customers, irrespective of their familiarity with eco-friendly businesses.2. Focus on creating high-quality influencer content and implementing effective online marketing strategies.
Quality content has the potential to raise consumer awareness of a product or service and build trust in the brand.This can positively influence consumers' purchasing decisions.3. To achieve the best results, choose influencers and platforms that are aligned with the target audience.Relevant influencers can establish trust and credibility with their audience.By gaining the audience's trust, they are more likely to accept the influencer's recommendations.With the ability to reach the right demographic, Yusiana et.al Jurnal Manajemen Indonesia (Vol.23(3), pp.364-374, 2023) 373 selecting the most relevant platforms ensures efficient marketing.Targeting appropriate online platforms enables companies to connect with their ideal audience by ensuring their messages are viewed by those most likely to have interest in their products or services.Utilizing appropriate influencers and online platforms, businesses can enhance their likelihood of reaching their intended audience and optimize the efficacy of influencer and online marketing.

Figure 1 .
Figure 1.Type of influencers who influenced purchases of beauty products and services among consumers in Indonesia in 2022 Source: Online survey among Indonesian women on October to November 2022 ZAP Clinic, MarkPlus, Statista 2023

Figure
Figure 1.Framework Research

Figure 4 .
Figure 4. Results of PLS Algorithm data processing

Table 2 .
Profile of the respondents in Bandung, n=100

Table 3 .
The Evaluation of The Measurement Model

Table 6 .
The Effects of The Structural

Table 6 and
Figure