Why Do Taiwanese Consumers Purchase Korean Beauty
Product?
Massoud Moslehpour Gabriella Christianti
Department of Business Department of Business
Administration, Asia University, Administration, Asia University,
Taiwan Taiwan
writetodrm@gmail.com christiantigabriella@gmail.com
Hania Aminah**
Department of Business
Administration, Asia University,
Taiwan
hania@unj.ac.id
ABSTRACT
This research aims to explore and examine factors influencing Tai-
wan consumers on repurchase intention of Korean beauty products.
A causal study design is used in this research to establish a cause-
and-effect relationship between each construct. Questionnaires
were distributed to beauty product consumers in Taiwan. A total of
241 usable questionnaires are used for this study. Moreover, SEM
was applied for data analysis and testing the model. There is a
cause-and-effect relationship between product design, promotion,
product price, brand name and repurchase intention. Product price
and brand name significantly influence customer repurchase inten-
tion. This research suggests practical directions for companies to
consider and address product design, promotion, product price, and
brand name to achieve customer retention and customer repurchase
intention.
CCS CONCEPTS
• Social and professional; • User characteristics; • Cultural
characteristics; • Gender; • Women;
KEYWORDS
Korean Beauty Product, Repurchase Intention, Taiwan
ACM Reference Format:
Massoud Moslehpour, Gabriella Christianti, Pei-Kuan Lin*, Hania Aminah**,
and Momodou Barry. 2021. Why Do Taiwanese Consumers Purchase Korean
Beauty Product?. In 2021 7th International Conference on E-Business and
Applications (ICEBA 2021), February 24, 2021, Sejong, Singapore. ACM, New
York, NY, USA, 7 pages. https://doi.org/10.1145/3457640.3457659
Permission to make digital or hard copies of all or part of this work for personal or
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and/or a fee. Request permissions from permissions@acm.org.
ICEBA 2021, February 24, 2021, Sejong, Singapore
© 2021 Copyright held by the owner/author(s). Publication rights licensed to ACM.
ACM ISBN 978-1-4503-8973-0/21/02. . . $15.00
https://doi.org/10.1145/3457640.3457659
219
Pei-Kuan Lin*
Department of Business
Administration, Asia University,
Taiwan
linpk@asia.edu.tw
Momodou Barry
Department of Business
Administration, Asia University,
Taiwan, momod-
oubarry1994@gmail.com*Corresponding
Author; ** Presenting Author
1 INTRODUCTION
Most people strive to be more attractive, confident and famous
in their professional and social life. Everyone is more concerned
about appearances, and there is a belief that a way to have better
appearances is by using beauty products [1]. According to the
Food and Drug Administration (FDA) of the US, beauty products
are described as products that are intended to be rubbed, poured,
sprinkled, sprayed or applied to the human body for purification,
beautification, beauty promotion or alteration of better appearance
and attractiveness [2].
"Korean Wave" culture is a trending culture in Taiwan and in-
cludes K-drama, series, K-pop music, movies, fashion, and even
beauty products, especially in young professional groups of people
who are the dominant population in Taiwan [3]. The cosmetics and
beauty products industry itself is very lucrative, fast-paced, creative
in Taiwan’s marketplace. Korean beauty products are easy to find
anywhere in the department store and the night markets, a popular
Taiwanese lifestyle [4]. Korean beauty products have been trending
in Taiwan, triggered by a huge number of K-pop or K-drama fans
who have repurchase intention on Korean beauty products.
According to the International Trade Administration (ITA), US
Department of Commerce, South Korea’s beauty products are the
world’s 9th largest cosmetics market. South Korea’s beauty prod-
ucts represent approximately 2.8% of the global market. In 2018,
the market was estimated to be $9.3 billion. From the previous
year, local production and exports increased by nearly 14.7% and
26.5%, respectively. The beauty products market has seen an annual
growth of 5.4% from 2014 to 2018 [5]. According to Statistics Korea,
cosmetics online shopping transactions grew 25% year-on-year to
$10.5 billion in 2019 [6]. In March 2020, South Korea introduced the
world’s first individual customized skin condition and preference
system [6]. Based on the Compound Annual Growth Rate (CAGR),
beauty products, especially skincare segmentation, the K-beauty
products market size was valued at $9.3 billion in 2018 and is pro-
jected to reach $21.8 billion by 2026, growing at a CAGR of 11.3%
from 2019 to 2026. Asia-Pacific is one of the prominent regions in
the market that solely accounted for approximately 70% of the total
K-beauty products market share in 2018. Korean beauty products’
ICEBA 2021, February 24, 2021, Sejong, Singapore
popularity benefits from K-Pop and K-drama’s popularity, which
comes globally in society. Expanding its business, South Korea
would not stop experimenting with new ingredients or application
methods in beauty products through better research and develop-
ment and innovations and technology appliance. Hence, innovation
and technology play an important role in the competitive global
market that always rises within a period [7]. Not only because of the
Korean wave influence, but Korean beauty products also become
popular. The organization has dedicated itself to manufacturing
high-quality products without the use of toxic ingredients [7, 8]. It
has been a further concern for buyers of Korean beauty products in
Taiwan because Taiwanese have a green culture for their lifestyle.
Furthermore, the Korean beauty product industry is still grown
and boomed in Taiwan. Understanding which Korean beauty prod-
ucts’ characteristics affect repurchase intention becomes essential.
This research will explore the correlation among brand name, prod-
uct price, product design, promotion, and repurchase intention
regarding this phenomenon. Thus, this study contributes to bet-
ter knowledge and evaluation for market sellers on consumers’
repurchase intentions of Korean beauty products in a more com-
prehensive research model.
2 LITERATURE REVIEW
2.1 Korean Beauty Product
Beauty product has been existed for more than 6000 years ago
[9, 10]. Nearly to the end of the First World War, when King Ed-
ward enthroned, women tried to appear as young as possible. They
used various types of beauty products to achieve it [11]. Today,
beauty products can help with hiding pores, smoothing complex-
ions, extending eyelashes, and many other features [12]. Korean
beauty product industry has rapid explosive growth of 1500 percent.
In 2004, Korea exported its beauty products to 87 countries, but in
2014 Korean beauty products transferred 10 to 129 countries [13].
Because of Korean wave culture’s popularity, Korean beauty prod-
ucts have also been admitted to have an affordable price, various
innovations, flawless results, and easy to get both in online and
offline facilities [14].
2.2 Product Design
Design is an illustration look, which involves line, shape, and par-
ticular, affecting consumer awareness toward a brand. Most of the
consumers who are fashion aware are also brand conscious. That
is why brands make good looking or unique or elegant package to
magnetize those kinds of consumers [15]. Besides, product design
should meet the customer expectation performance requirement
[16]. Design or packaging is effective in marketing products since
most consumers are influenced by appearance and looks [17]. This
visual communication that is easiest to reach is by the design or
the packaging of the product and other aspects such as taste, tex-
ture, and smell. Thus, the product is very important in repurchase
intention.
2.3 Promotion
Promotion is a kind of communication technique, including activi-
ties used by the companies to create awareness among consumers’
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Massoud Moslehpour et al.
minds to differentiate products besides other brands [16]. The pro-
motion aims to make 16 people aware and attract them to buy the
product, and increase sales [16]. That is, promotion is very impor-
tant to the company’s marketing strategy [15]. Promotion can be
varied and unique. Promotion can be using magnetic advertise-
ments, such as using a popular actor or actress as the model in the
advertisements or giving a lot of free samples to the potential cus-
tomer. By giving the free samples, they can try it before they decide
to buy. Besides, the promotion also can be providing a discount
to the product. Another easiest way to do promotion is by having
attractive window displays. It will attract consumers to come to
our store [16].
2.4 Product Price
Product price is what amount a customer is willing to pay in return
for the product [17]. Goods and services must be priced to achieve
profitability for the business, satisfy consumers, and respond to
various competition constraints [17]. Among other key factors in
trade relationships, price is one of the methods advertisers may use
to confront the market, either by directly attracting and retaining
consumers or competing against rivals and playing a key role in
affecting customer repurchase intention.
2.5 Brand Name
The brand name is associated with the brand image [18]. The brand
name is a term, complex symbol, or design or the combination of
these that represent the seller’s identity [1, 16]. Brand image is
described as perceptions or consumers’ minds toward the brand
[18]. They related to each other, and both make viewpoints to the
consumers’ minds. The brand name is important and should be
unique, memorable, attractive, and show the product’s identity [1].
Brand name or brand image plays an essential role in consumer
evaluation of a product. It is one of the most affecting factors to the
perception of a product’s quality. When consumers face a brand
name with a positive or negative image in their mind, by referring
to the brand name, they relate positive or negative attitudes towards
the quality of the product [18].
2.6 Repurchase Intention
Repurchase intention is defined as the customer’s decision to engage
in future activities with the supplier [19]. Repurchase intention
is one of the major factors which makes a long-term profit for
the company [20]. Consumers’ repurchase can help maintain the
continuity of sales. Repurchase intention is one of the important
factors in the company’s revenue. Therefore, this study will be
examined about the factors which affect the repurchase intention.
2.7 The interrelationships among Product
Design, Promotion, Product Price, Brand
Name and Repurchase Intention
Product design is an important part that cannot be separated from
this century’s business [21]. If the design is already compatible
with the customer’s heart and the quality is good, plus the price
is fair, it would be potentially important to buy it again. There
is a significant positive influence on product design on product
Why Do Taiwanese Consumers Purchase Korean Beauty Product?
price [3, 21]. Product design has proven to be very substantial in
attaining product price of branding in the market place. Therefore,
it is supposed that:
H1. Product Design significantly influences Product Price
Promotions are necessary to educate customers about the avail-
ability of a product, raise public awareness of a brand’s marketing
activities, promote brand feedback, and increase consumer loyalty
[22, 30]. When promotion demonstrates significant expenditures,
there is a debate on its role to leverage the brand representing the
first touchpoint between a brand and its consumers, making its
selection a vital component of its marketing strategy [23]. Promo-
tions are valuable indications for cognitive product tests and buying
decisions based on the brand name [31]. Considering the pivotal
role of promotion and brand name, this research tries to explore
more the role of promotion, particularly on the brand name as one
of the particular relationships in the research framework:
H2. Promotion significantly influences Product Price
Brand Name is linked and related to product design because the
customer can recognize the brand just by looking at the product
design [21]. A well-known brand name synonymous with great
product design provides competitive advantages in increasing the
interest, focus and positive appraisal of a product by customers and
promotes frequent purchases [24]. Product design has proven to be
very substantial in attaining product design of brand image in the
market place. Therefore, it is supposed that:
H3. Brand Name significantly influences Product Design
Consumer preference for a product is greatly influenced by the
brand name [19, 25]. The well-known brand name could increase
its premium prices considerably in comparison to the unbranded
product. Branded products give higher perceived quality. In this
study, we examine the influence of brand name compared to other
product attributes’ influences. Previous studies claim that brand
name has a significant positive influence on product price [26].
Therefore, it is supposed that:
H4. Brand Name significantly influences Product PriceCustomers’
product price is often defined as a difference between the advan-
tages that customers can receive and the prices they will pay to
buy those services or goods that customers will consider before
they decide to repurchase the product [27,29] . Previous studies
claimed that product price significantly influence on repurchase
intention [34, 35]. This study examines the role of the product price
in repurchase intention. Therefore, it is supposed that:
H5. Product Price significantly influences Repurchase Intention
Previous studies have found that brand name positively affects
repurchase intention [18, 28]. Knowing and having familiarity with
a specific brand affects consumers’ confidence toward that brand.
It, therefore, indirectly influence consumers’ intention to repeat
the purchase of the same brand. Hence, it is supposed that:
H6. Brand Name significantly influences Repurchase Intention
3 METHOD
3.1 Research Design and Variables
In this research, the independent variables are product design (PD),
promotion (PR), product price (PP) and brand name (BN) that in-
fluence repurchase intention (RI). Moreover, a causal research con-
figuration was received in this study to discover a cause-effect
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ICEBA 2021, February 24, 2021, Sejong, Singapore
relationship among develops. The framework of this research is
presented in Figure 1 below:
3.2 Measurement and Scale
The items measurement are adopted from prior studies with modi-
fication as needed. This section uses a 5-point Likert Scale, ranging
from strongly disagree to strongly agree. Four (4) items are used to
measure PD [3, 16]. Five (5) items are used to measure PR [3, 16].
Four (4) items are used to measure PP [17]. Four (4) items are
used to measure BN [1, 16]. Five (5) items are used to measure RI
[10, 19].
3.3 Data Collection and Analysis
Respondents are from Taiwanese using Korean beauty products by
using an online questionnaire. A total of 214 valid questionnaires
were collected. Analyzing the data collection for this study follows
several statistical procedures using SPSS and AMOS to inspect each
construct’s validity and reliability and SEM (Structural Equation
Modelling) to verify the model’s fitness and test it.
4 RESULT AND DISCUSSION
4.1 Construct Validity
We identified the latent factors from measurement items through
EFA with principal component analysis and Varimax rotation. Also,
we conducted Kaiser-Meyer-Olkin (KMO), and Barlett’s Test of
Sphericity was conducted to check the validity and feasibility con-
struct of the data collection. Eight items from the questionnaire
(PD1, PR1, PR3, PP1, BN1, BN2, RI3 and RI4) showed lower factor
loading than 0.50. These eight items were deleted to achieve better
overall data set value. The KMO showed a good result = 0.85 with
p-value = 0.00 and total variance extracted = 73.26%.
As evidenced by the CFA analysis results, the minimum criteria,
according to the general statistical criteria, are reached. From the
results of the analysis conducted, the proposed model has a good
level of fit: X2 / df = 2.56, p-value = 0.00, Goodness of Fit Index
(GFI) = 0.91, Comparative Fit Index (CFI) = 0.95, Tucker-Lewis Index
(TLI) = 0.93, and RMSEA = 0.08. Discriminant validity, convergent
validity, and composite reliability measures and the overall CFA
model are good. The results are presented in Table 1
The results of the tests of discriminant validity, convergent va-
lidity, and composite reliability with the value criteria for√ each
parameter as follows: CR> 0.7, AVE > 0.5, MSV < AVE, and AV E >
Max Correlation. The results indicate that all instruments’ validity
and reliability and the overall CFA model are above the minimum
required values.
4.2 Path Analysis Result
The results of the model fit indices of the proposed model in this
study are X2 / df = 2.86, p-value = 0.00, Goodness of Fit Index (GFI)
= 0.90, Adjusted Goodness of Fit Index (AGFI) = 0.85, Comparative
Fit Index (CFI) = 0.93, and Root Mean Square Error of Approxima-
tion (RMSEA) = 0.08. Each Goodness-of-Fit index value exceeds
the minimum criteria of acceptable values. The results of structural
equation modeling are presented in Fig.2 below. Based on the re-
sults presented in Fig. 2 and Table 2, PD is proven to positively
ICEBA 2021, February 24, 2021, Sejong, Singapore Massoud Moslehpour et al.

Figure 1: Research framework

Table 1: Reliability, discriminant validity, convergent validity, and composite reliability (n=241)

Number Cronbach’s CR AVE MSV Max r PD. PR PP BN RI

of Items Alpha (α)
PD 3 0.86 0.857
0.667 0.521 0.722 0.817
PR 3 0.80 0.809
0.586 0.308 0.555 0.555 0.766
PP 3 0.92 0.922
0.797 0.521 0.722 0.722 0.386 0.893
BN 2 0.72 0.727
0.574 0.238 0.487 0.488 0.397 0.487 0.757
RI 3 0.85 0.860
0.677 0.326 0.571 0.503 0.236 0.571 0.452 0.823
√ √
Note: CR > 0.7; AVE > 0.5; MSV < AVE; AV E > Max r; AV E is boldface diagonal

Table 2: Result of hypothesis testing

Hypothesis Path β SE P-value Result

H1 PD→PP 0.63*** 0.10 0.000 Supported
H2 PR→BN 0.48*** 0.09 0.000 Supported
H3 BN→PD 0.57*** 0.09 0.000 Supported
H4 BN→PP 0.17* 0.09 0.037 Supported
H5 PP→RI 0.45*** 0.09 0.000 Supported
H6 BN→RI 0.25** 0.11 0.004 Supported
*p < 0.05, **p < 0.01, ***p < 0.001, NS= Not Significant

affect PP with the value of β = 0.63*** (H1). PR affects BN (H2),
proven by the value of β = 0.48***, with p-value = 0.000. BN also
proved to affect PD (H3), as evidenced by the value of β = 0.57***,
with p-value = 0.000. BN to PP (H4) shows the influence relation-
ship with the value of β = 0.17*, with p-value = 0.037. In addition,
PP to RI (H5) shows the influence relationship with the value of
β = 0.45***, with p-value 0.000. BN’s path to RI (H6) positively
influences the value of β = 0.25**. Moreover, the results of the
analysis show that there are cause and effect relationships between
variables.
4.3 Discussion
The results reported in this study show that product design pos-
itively affects consumer product price (β = 0.63***) supporting

222
Why Do Taiwanese Consumers Purchase Korean Beauty Product?
Figure 2: Result of structural modeling testing
previous research [3, 21]. So, it can be concluded that product de-
sign has a great impact on the product price. As beauty products
have appropriate, unique, stylish, fashionable, and comfortable de-
signs, they significantly affect the product price. By this finding,
the product manufacturer needs to pay attention to the aesthetic
product design. This is because product price depends on this term.
The results indicate that promotion significantly influences
brand name (β =0.48***), supported by previous studies [31, 32]. We
conclude that marketing activities through promotion implemented
by an organization may influence the brand name of products. In
other words, organizations may develop more effective promotional
strategies in marketing Korean beauty products to increase and
reinforce consumers’ recognition of the brand name of products.
With the great promotion, it will be easier for the organization to
maintain strong connections between their beauty products and
consumers.
Brand name significantly affects product design with β =0.57***
supported by former research [21, 24]. This indicates that the com-
pany’s brand name will be more positive if it offers a more attractive
design. The main goal of companies doing product design is to have
a good brand image [24]. The brand name is very important be-
cause it will become the concept of good product design. Therefore,
beauty products’ companies need to build a brand name through
product design.
In line with previous researchers [19, 25, 33], this study shows
that brand name significantly influences product price (β =0.17*).
Brand names are an important key to building relationships be-
tween customers and the company, especially product price [33].
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ICEBA 2021, February 24, 2021, Sejong, Singapore
The well-known brand name could increase considerably amount
the price consumer want to pay than the unbranded product. There-
fore, Korean beauty companies need to consider the brand name to
set the products’ product price.
Product price significantly affects consumer repurchase inten-
tion [21, 27, 34] as justified in this research. This study shows that
it has positive significance between product price and repurchase
intention (β =0.45***). The product price is often defined as a dif-
ference between the advantages that customers can receive and
the prices they will pay to buy those services or goods that cus-
tomers will consider before they decide to repurchase the product.
Therefore, product price plays an important key role in consumer
behavior of repurchase intention.
This study’s outcomes showed that brand name significantly
influences repurchase intention with the value of β =0.25**, which is
also in line with previous studies [18, 28]. It indicates that the brand
name is also an essential variable for the consumer to repurchase
the same product in the beauty product industry. While the brand
name is prestigious and highly reputable, aligned with the high
quality, people tend to buy the same product again. Beauty product
companies should consider the brand name as one of the important
points.
5 CONCLUSION AND RECOMMENDATIONS
This study suggested that marketers value the influences of product
design, promotion, product price, and brand name on intriguing
consumers’ repurchase intention. All of those characteristics are
important to engage with consumers to repurchase the products.
ICEBA 2021, February 24, 2021, Sejong, Singapore
The beauty product companies should improve their quality and
explore their creativity to make better product designs and brand
names to attain consumers’ repurchase intention of Korean beauty
products.
All of the variables investigated in this study are contributing
factors to sell foreign beauty products to customers. Companies
of beauty products should enhance their quality and develop their
ingenuity to choose better-imaged influencers to endorse their
beauty products.
In its implications for managerial aspects, the contribution is
given concerning the following points. The dimensions of product
design, promotion, product price and brand name dimensions influ-
ence consumers’ repurchase intentions. Two elements are more rel-
evant and directly influence consumers’ purchase intention, namely
product price and brand name. According to this finding, all of these
dimensions must be considered by beauty product companies. Fur-
thermore, an organization must provide more effort and attention in
creating attractive content that can stimulate consumer repurchase
intention of beauty products.
There are three limitations to this research. The first limitation
of this study would be the respondents. The respondents are limited
to Taiwanese consumers using Korean beauty products. Therefore
the results of this paper could not reflect other countries’ or the
whole world’s perception. The present study may give different
results due to the personal nature of beauty products and cultural
differences. Future research should gather samples in different coun-
tries or worldwide to develop a whole consumer’s perception of
Korean beauty products. Second, this study uses four independent
variables, one dependent variable and one mediating variable. A
future study could consider other variables to expand the study;
for instance, consider product price or store environment as inde-
pendent variables and add customer satisfaction as a mediating
variable to identify whether they may influence repurchase inten-
tion. Furthermore, this study only uses a quantitative approach to
investigate Korean customer repurchase intentions toward Korean
beauty products. Future scholars may use a qualitative approach in
order to develop a more theoretical framework and deeper results.
ACKNOWLEDGMENTS
The authors would like to thank Asia University and the Depart-
ment of Business Administration for their continued support of the
faculty’s research and development.
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