Consumer buying behavior towards point-of-sale material of halal cosmetic products

Abstract

The purpose of this research is to investigate the influence of various Point of Sale Materials (POSM) - Free Coupons, Free Samples, BOGO, and Discounts - on consumer buying behavior in the halal cosmetic industry. It aims to provide a deeper understanding of how these marketing strategies affect the purchasing decisions of Muslim consumers, particularly in relation to their religious and ethical values. This quantitative study, employing purposive sampling, investigates the impact of POSM on the purchasing behavior of halal cosmetic products. The research spans from March 2023 to June 2023, the data were collected over four months, garnering 245 respondents out of 260 shared questionnaires, resulting in a 92% response rate. Focusing on Wardah cosmetics as the research object—a pioneer of halal cosmetics in Indonesia consistently employing POSM—the study utilizes Partial Least Squares Structural Equation Modeling (PLS-SEM) for data analysis. The findings reveal that free coupons and BOGO exert a positive and significant influence on consumer behavior, while free sample and discount demonstrate a positive but not statistically significant effect. This research contributes valuable insights into the effectiveness of distinct marketing strategies through the examination of diverse promotional tools on consumer buying behavior. This resarch provides a comprehensive analysis of the effectiveness of various Point of Sale Materials (POSM) in influencing consumer buying behavior, specifically within the context of halal cosmetics. This targeted focus on halal cosmetic products adds a new dimension to the understanding of consumer behavior in this rapidly growing sector.

Keywords:

• Point of sale materials (POSM)
• consumer behavior
• halal cosmetic

JEL classification:

• M31
• Z12
• D12

Reviewing Editor:

• Kaouther Kooli
• Bournemouth University
• United Kingdom of Great Britain and Northern Ireland

Subjects:

• Consumer Buying Behaviour
• Economics
• Marketing
• Business

1. Introduction

The global development of cosmetics and the increasing demand for cosmetics in Indonesia provide significant business opportunities for cosmetic companies, both local and international (Ferdinand & Ciptono, 2022; Prasasti, n.d.; Septiarini et al., 2023). Chairman of the Indonesian Cosmetics Companies Association (Perkosmi) said that the demand for cosmetics from consumers with middle-class income is increasing (Aisyah, 2016; Briliana & Mursito, 2017; Ferdinand & Ciptono, 2022). This is an indication that the welfare of the Indonesian people is getting better (Kemenperin, 2023).

With a population of over 270 million people, Indonesia has a large consumer market. The fact that 85% of the population is Muslim indicates a significant demand for halal products, including cosmetics (Isa et al., 2023; Ngah et al., 2021). The millennial generation, comprising 81 million people, represents a large portion of the population and a potential market for halal cosmetics (Handriana et al., 2020). In Indonesia, there are guidelines from the MUI for halal cosmetic products. These guidelines are in place to ensure that products comply with Islamic principles and are suitable for use by Muslim consumers (Irfany et al., 2023).

Millennial women, in particular, are known to be active users of cosmetics. They value personal care and are most likely interested in products that align with their religious beliefs and lifestyle choices. By offering a variety of halal cosmetics specifically designed for the preferences and needs of millennial women, businesses can take advantage of this market opportunity (Anubha, 2023; Ngah et al., 2021). The combination of a large population, a significant Muslim majority, and a preference for halal products among millennials creates a favorable environment for businesses to target millennials with halal cosmetics in Indonesia.

In 2021, Indonesia’s cosmetics expenditure reached US$70 billion, showing a growth of 6.8% compared to the previous year’s expenditure of US$65 billion. India, Indonesia, and Bangladesh are named as the top three countries with the highest expenditure in this sector. Furthermore, a Compound Annual Growth Rate (CAGR) of 7.4% is projected between 2021 and 2025. This shows a positive trend, which suggests that Muslim consumer spending on cosmetics will continue to increase. By 2025, it is estimated that Muslim spending on cosmetics will reach US$93 billion (Dinar Standard & Salam Gateway, 2022).

The high market demand and many competitors in the cosmetics industry require cosmetics business players to understand consumer behavior in purchasing cosmetics (Shi et al., 2023). This behavior is very important to understand in order to be able to create the right marketing strategy (Avanzi et al., 2020). Cosmetics consumer behavior can be analyzed by looking at their characteristics, if the analysis is carried out in Indonesia, the majority of consumers are Muslim and Muslims need cosmetic products that are labeled halal. Furthermore, cosmetic consumers are the majority of women and the average age is 18–40 years so that several studies show that women with a young to middle age range are very fond of discounts, promos and other things that are financially tantalizing (Dhuria et al., 2023; Nugraha et al., 2024).

Some aspects that attract positive behavior of cosmetic consumers are covered by the concept of point of sales materials (Liao et al., 2023). Point of sales materials consist of free coupons, free samples, BOGO (Buy one get one promo) and price discounts (Ali & Muhammad, 2021). POSM display is important in supporting and increasing product sales (Kaipia et al., 2017). As many as 75% of purchasing decisions are made in stores. POSM is still used by almost all cosmetic brands in Indonesia. POSM that has been created by the company must be proven to increase consumer purchasing behavior towards halal cosmetic products. Several previous studies also support the important role of point of sales materials such as (Koo & Suk, 2020) who found that consumers are very interested in the term ‘free’ in making purchases, so the word is very appropriate to foster positive behavior from consumers. Likewise, (Ali & Muhammad, 2021) also emphasize that free coupons are one of the strategic marketing tools.

In addition to free coupons, another marketing tool that can increase purchases is ‘free samples’ (Liao et al., 2023; Shi et al., 2023). In making purchases, consumers often want to experience the use first before buying, so free samples are the right concept to provide this experience (Shi et al., 2023). On the other hand, free samples are marketing that can increase consumer confidence in a product (Liao et al., 2023).

Furthermore, (Gordon-Hecker et al., 2020) emphasized another concept in product marketing, namely BOGO (buy one get one) as a powerful promotional tool. Even (Bak et al., 2022) found that BOGO can create unplanned purchases. Consumers who initially did not plan to buy, but can be moved to buy a product on the grounds of buy one get one. Therefore, the BOGO concept is widely practiced in marketing practices for the lower middle class, especially for women and more in fashion and cosmetics (Li et al., 2023).

The next sales material is discount. Discount is a familiar concept to improve marketing performance, especially in attracting consumer purchases (Chen et al., 2023; Shiau, 2019). Discount is a marketing concept that is considered successful in attracting market share from all circles, especially women. This is because human instincts will be more interested in getting something with low effort or value but getting high-value goods (Shiau, 2019). Chen et al. (2023) also emphasized that in online purchases, the word discount will attract many consumer visits and foster positive purchasing behavior.

It is empirically proven from previous literature reviews that aspects of POSM (point-of sales materials) can improve consumer behavior. However, the majority of the previous literature analyzed POSM aspects separately and there was still no analysis of POSM as an analytical model that could improve consumer behavior. On the other hand, POSM analysis in cosmetic products is also still rare. So this research seeks to fill this gap by analyzing the effect of POSM on consumer behavior in purchasing halal cosmetic products.

2. Literature review

2.1 Consumer buying behavior

Consumer purchasing behavior is often driven by the choices available to consumers that vary in price and included offers. Therefore, it is understandable that engaging consumer behavior helps the market to sell more and introduce new products (Ashraf et al., 2014).

According to Malombeke (2014), consumer purchasing behavior is very important to understand customer behavior. It is important to study consumer demand as it helps sales and convinces consumers to buy the manufacturer’s products. Consumer buying behavior is the study of how to get customers to buy products. Marketers recognize customer needs.

Several previous studies found that consumer purchasing behavior is influenced by POSM (Ismail & Siddiqui, 2019; Malombeke, 2014). An attractive POSM that highlights certain products or promotions can increase consumer awareness of the product or brand. For example, a large poster in front of a store displaying a big discount can attract the attention of consumers passing by the store.

Furthermore, POSM that is attractive and displays special offers can encourage impulse buying behavior. When consumers see an interesting additional product or BOGO offer on the display rack near the checkout, they may feel tempted to purchase the product on impulse. The urge to get additional products or get a discount can trigger spontaneous purchasing decisions.

A well-designed and attractive POSM can create a more positive shopping experience. For example, the placement of display shelves that are neatly arranged and attractive can give the impression that the store has high-quality products and increase consumer perception of the brand. POSM that provides clear and interesting product information can help consumers make purchasing decisions. For example, a leaflet explaining the benefits of a product or a brochure with customer reviews can provide the information needed to influence a purchasing decision.

POSMs that display special offers, such as discounts for purchasing more than one product or bundling packages, can encourage consumers to make additional purchases. This increases the transaction value and results in increased sales for the business. The influence of POSM on consumer behavior can vary depending on the POSM design, sales context, and consumer characteristics. Therefore, businesses need to plan and execute a POSM strategy that suits their target market.

2.2 Point of sale materials (POSM)

POSM refers to a variety of promotional materials and displays that are strategically placed at points of purchase, such as retail stores, supermarkets, restaurants, or trade show booths. POSM is designed to attract customer attention (Brubaker & Wilson, 2018), increase brand visibility, and ultimately drive sales (Mussol et al., 2019; Syaekhoni et al., 2017) many customers did not notice the POSM or were not aware of the promotion pressure due to lack of customer attention or awareness (Smedema, 2016). POSM is also a display of product/brand information that attracts shoppers’ attention to make purchases (Bhushan, 2021).

POSM is very necessary in communicating products/brands (Khan & Rahman, 2015; Shetty, 2015). POSM is a great strategy to increase sales. When done well, it encourages customers to buy more by making the experience more positive (Anyadighibe et al., 2021).

By using promotion tools, many products or services can be sold. Manufacturers provide promotions in stores that influence customer preferences and interest in purchasing them (Rinawati et al., 2022). A person’s purchasing decision is almost always the same, but the entire process is not carried out by the customer. The consumer purchasing process generally involves several stages, which are often referred to as purchasing decision models (Zhang & Zheng, 2019). This model includes several stages which include need recognition, information search, alternative evaluation, purchase decision, and post-purchase (Malombeke, 2014).

2.3 Hypotheses development

2.3.1 Free coupon and consumer behavior

Free coupon offer help in getting price discounts on certain products. Coupons are useful for trial purchases of any product or service. Offering free coupons can be a powerful brand currency (Ashworth et al., 2005; Bester & Petrakis, 1996; Park et al., 2018). By providing coupons, manufacturers can promote their brands, products, or services (Ahmad et al., 2015). Coupons are a promotional tool commonly used by manufacturers to encourage customers to buy the products or services they offer. Coupons are usually in the form of discounts or discount offers given to customers as an incentive to make a purchase (Azzahro et al., 2021; Nastiti, 2020).

By offering free coupons, customers can gain interest and build trust in newly launched products or services. Offering free coupons is one of the strategic sales promotion tools that influence purchasing decisions (Ismail & Siddiqui, 2019). Offering free coupons is an excellent strategy to stimulate sales, especially in the short term (Abebe, 2020). Several previous studies also support the important role of free coupon such as (Koo & Suk, 2020) who found that consumers are very interested in the term ‘free’ in making purchases, so the word is very appropriate to foster positive behavior from consumers. Likewise, Ali and Muhammad (2021) also emphasize that free coupons are one of the strategic marketing tools. Therefore, this study formulates the following hypothesis:

H1: Free coupon has a positive effect on consumer buying behaviour.

2.3.2 Free sample and consumer behavior

Free Samples are product samples distributed free of charge at certain points of purchase to encourage trial and increase sales. By allowing consumers to try the product for free, it allows them to experience the benefits of the product firsthand which can generate interest and build positive perceptions (Bawa & Shoemaker, 2004; Ben Amor & Guilbert, 2009; Jaymee et al., 2019; Li, Jain, et al., 2019).

In free sampling, people get the product from the seller to use it, and having free samples can create interest in consumers. A sample is a small amount of a product for consumer testing (Ahmad et al., 2015). This research assumes that free samples increase a positive relationship with consumer buying behavior. When consumers receive free samples, they are more likely to try the product without the commitment of having to buy the product. This can create a sense of reciprocity, where consumers feel inclined to reciprocate the gesture by making a purchase or recommending the product to others. Positive experiences with free samples can also lead to profitable word-of-mouth marketing, as happy consumers are more likely to share their positive experiences with friends and family (Ben Amor & Guilbert, 2009).

Additionally, free sampling can help overcome consumer skepticism or hesitation about trying a new product. This reduces the perceived risks associated with purchasing foreign products, allowing consumers to assess quality, taste, effectiveness, or other attributes before making a purchasing decision. This can be especially effective for products that require a certain level of trust or demonstration to convince consumers of their value (Collins & Chinedu, 2023). However, it is important to note that while free samples can be an effective marketing tool, they must be implemented strategically and with a clear goal in mind. Businesses need to consider factors such as target market, distribution channels, sample size, and associated costs to ensure that sampling campaigns align with their overall marketing goals and produce desired results (Ofosu-Boateng, 2020). Therefore, this study formulates the following hypothesis:

H2: Free sample has a positive effect on consumer buying behaviour.

2.3.3. Buy one get one (BOGO) and consumer behavior

Buy One Get One Free (BOGO) includes a free product offer when a customer purchases another product at the original price. BOGO is when a consumer buys one product from a company and gets another product for free. This will create consumer interest and attention. More products are offered at the original price with the addition of more quantities (Meo et al., 2014).

BOGO creates interest in consumers’ minds toward a product. Research conducted by Ahmad et al. (2015) states that there is a positive impact arising from buy one get one on consumer purchasing behavior. With buy one get one, sellers can easily attract consumers’ attention by getting double product purchases at one product price (Ali & Muhammad, 2021; Dugan et al., 2021; Gordon-Hecker et al., 2020; Yin-Fah et al., 2011).

Gordon-Hecker et al. (2020) emphasized BOGO (buy one get one) as a powerful promotional tool. Even (Bak et al., 2022) found that BOGO can create unplanned purchases. Consumers who initially did not plan to buy, but can be moved to buy a product on the grounds of buy one get one. Therefore, the BOGO concept is widely practiced in marketing practices for the lower middle class, especially for women and more in fashion and cosmetics (Li, Jain, et al., 2019). Therefore, this study formulates the following hypothesis:

H3: Free sample has a positive effect on consumer buying behaviour.

2.3.4. Discount and consumer behavior

Discount refer to a reduction in the original price of a product or service. This strategy is a marketing strategy commonly used by business actors to encourage customers to make purchases (Chan et al., 2021). Nastiti (2020) found that discounts are one of the marketing strategies that is most often successful in attracting consumer interest. Discounts foster consumer interest and encourage them to make purchases (Akaichi et al., 2015; Blois, 1994; Henderson et al., 2023; Kim & Tanford, 2021; Lv et al., 2020).

However, different findings were expressed by Olubusola Temiloluwa et al. (2022) that discounts cannot influence consumer behavior. This proves that for certain products, consumers are not affected by discounts. Therefore, the analysis regarding the role of discounts in changing people’s consumption behavior is quite interesting.

Discount is a familiar concept to improve marketing performance, especially in attracting consumer purchases (Chen et al., 2023; Shiau, 2019). Discount is a marketing concept that is considered successful in attracting market share from all circles, especially women. This is because human instincts will be more interested in getting something with low effort or value but getting high-value goods (Shiau, 2019). Chen et al. (2023) also emphasized that in online purchases, the word discount will attract many consumer visits and foster positive purchasing behavior. Therefore, this study formulates the following hypothesis:

H4: Discount has a positive effect on consumer buying behaviour.

Figure 1 captured the theoretical framework of the point of sales material framework. Free coupons, free samples, BOGO, and discounts used as a variabel of point of sales material. Furthermore, there are four hypotheses developed.

Figure 1. Conceptual framework.

3. Methodology

This research is a quantitative study that analyzes the effect of point of sales markets which include free coupons, free samples, BOGO and discounts on consumer buying behavior of Wardah products. The population in this study are consumers of Wardah products in Indonesia where the population has a large number and is not recorded. Furthermore, the sample in this study was taken using purposive sampling technique, namely sampling by requiring certain criteria tailored to the research objectives. The criteria for sampling include 3 aspects, namely that respondents are regular users of Wardah products, respondents understand halal labeling in cosmetics and respondents are Wardah consumers in retail stores.

Based on the sampling criteria, the researcher distributed 260 research questionnaires to respondents who fit the criteria. From the results of distributing the questionnaires, 245 respondents filled out the questionnaire properly and met the research requirements. The results obtained in the form of research data were then analyzed using the Structural Equation Model method with Smart-PLS software. The use of SEM in this analysis aims to provide research novelty where POSM analysis is still rarely using SEM, then SEM analysis supports testing discriminant and convergent validity more simply and accurately and to explain research results more interestingly.

This study analyzes 5 variables consisting of 4 exogenous variables and 1 endogenous variable. The exogenous variables in this study are free coupon, free sample, BOGO and discount which are 4 aspects of POSM. The endogenous variable in this study is consumer buying behavior. The variable measurements in this study adopt from (Bhushan, 2021; Rubiyanti et al., 2022), the variable measurements are comprised in Table 1.

Table 1. Variable definition and measurement.

Variables	Definition	Measurement
Consumer Behavior	The actions, processes, and decisions taken by individuals or groups in selecting, buying, using, and disposing of products, services, ideas, or experiences to fulfill their needs and wants.	Regular purchase Trust in quality assurance Trust in the brand Interest in the product Interest in price Sufficient preference Product variety Product quality Bonding with the product Spontaneity in product purchase Confidence in the product Product purchase motive Product purchase consideration Purchase quantity Purchase decission
Free Coupon	A concept or tool used in transactions to provide discounts to customers on future purchases of similar products	Coupon appeal Priority of coupon use Increased purchase time with coupons Increased purchase quantity with coupons Purchase of new products with coupons
Free Sample	Free sample offers are trial packs given by manufacturers or retailers to customers	Free sample appeal Priority of free sample use Increased purchase time with free samples Increased purchase quantity with free samples Purchase of new products with free samples
BOGO (Buy one get one)	BOGO offers are a sales promotion method that can make it easier for customers to purchase products or services due to the perception of saving money	BOGO appeal Priority of BOGO use Increased purchase time with BOGOs Increased purchase quantity with BOGOs Purchase of new products with BOGOs
Price Discount	Price discount refers to the practice of openly displaying a discounted price on a product.	Price Discount appeal Priority of Price Discount use Increased purchase time with Price Discounts Increased purchase quantity with Price Discounts Purchase of new products with Price Discounts

4. Result

The distribution of questionnaires was carried out in June 2023. This study involved 196 respondents and most of them was female, because the use of cosmetics was very close to women (Al-Banna & Jannah, 2023). In this study, the research subjects chosen were Wardah cosmetic products. Wardah is a halal cosmetic product that is a pioneer of halal cosmetic products in Indonesia (Rosyada et al., 2022; Sukesi & Akbar Hidayat, 2019) and also one of the top Cosmetic Brand in Indonesia (Ramadania et al., 2023). Since its inception, Wardah has been labeled halal. In addition, consistency in maintaining products to remain trusted in terms of halal is still being carried out to this day. This is what attracts the attention of researchers to try to conduct direct research on the first halal cosmetics in Indonesia.

4.1. Descriptive analysis of research objects

The following is an explanation of the results of data analysis classified based on the profile of respondents involved in this study, such as gender, age, type of work, range of income per month, and shopping intensity. Based on the sample data obtained in this study, the classification of respondents by sex is described in Table 2.

Table 2. Classification of respondents.

Classification	Frequency	Percentage
Gender
Female	159	88%
Male	22	12%
Age
15–25	157	87%
26–35	17	9%
36–45	7	4%
Job
Student	132	73%
Entrepreneur	8	4%
Employee	23	13%
Pensionary	1	0.5%
Unemployed	7	4%
Others	10	5.5%
Income Range
< 1,000,000	80	44.2%
1,000,000–4,000,000	78	43.1%
4,100,000–12,000,000	19	10.5%
> 12,000,000	4	2.2%

The table above illustrates that most of the respondents to this study were women. The total number of female respondents was 159 people with a percentage of 88% of the total respondents. Then most of the respondents in this study were aged 15–45 years. The percentage size for this classification is 157 respondents aged 15–25 years or 87% of all respondents.

Most of the respondents of this study are students/students. There were 132 respondents with a percentage of 73% as Students/Students, 8 respondents with a percentage of 4% as Entrepreneurs, 23 respondents with a percentage of 13% as Employees, 1 respondent with a percentage of 0.5% as pensionary, 7 respondents with a percentage of 4% Unemployed, and 10 respondents with a percentage of 5.5% in other professions.

4.2. Outer model analysis

Outer model anlysis aims to test data quality and measurement of research variables. In this stage, the analysis is carried out in the context of the relationship between indicators and research variables. The outer model analysis includes several stages and sub-analyses, namely convergent validity, construct validity, composite reliability and discriminant validity. The first stage of analysis is carried out to test convergent validity, construct validity and composite reliability using the algorithm menu in smart PLS. The results of the analysis are shown in Table 3.

Table 3. Validity and reliabity test.

Variables	Indicators	Outer loadings	AVE	Composite Reliability
Customer Behavior	CB10	0.805	0.628	0.835
	CB15	0.824
	CB4	0.746
Free Coupon	COU1	0.789	0.645	0.879
	COU3	0.805
	COU4	0.826
	COU5	0.791
BOGO	BOGO1	0.777	0.617	0.890
	BOGO2	0.728
	BOGO3	0.818
	BOGO4	0.829
	BOGO5	0.772
Free Sample	FS3	0.863	0.707	0.878
	FS4	0.876
	FS5	0.779
Price Discount	PD1	0.836	0.723	0.887
	PD4	0.856
	PD5	0.858

4.2.1. Convergent validity

The Convergent Validity Test aims to examine the extent to which indicators in one variable correlate well with each other. It can be measured using the correlation coefficient between indicators. The loading value obtained from the outer layer can be seen in Table 3. However, several indicators do not meet the requirements for convergent validity. This is because the outer loading value formed is not >0.7. Subsequently, these indicators are eliminated and retested.

After invalid indicators were eliminated and the model was retested, the result of the analysis showed that all variable items have values that meet the specified criteria of >0.70 (Hair et al., 2021), this is as shown in Figure 2. The outer loading value obtained shows that all indicators have met the amount of convergent validity and can be tested further.

Figure 2. Outer loading for convergent validity test.

4.2.2. Reliability test

The reliability test parameters in this study are based on Composite Reliability (CR) values greater than 0.6 so that the variable can be said to be reliable (Hair et al., 2021) and Average Variance Extracted (AVE) value ≥ 0.5. Table 3 shows that all variables have Cronbach’s Alpha and Composite Reliability (CR) values > 0.6 and Average Variance Extracted (AVE) values ≥ 0.5. It is that the variables have met the criteria used in this study and the results of these tests are accepted. A higher value of Cronbach’s alpha and composite reliability indicates a high level of reliability. For example, the buy-one-get-one-get-one-free variable has a Cronbach’s alpha and composite reliability value above 0.8. Thus, it can be concluded that all variables are declared reliable.

4.3. Discriminant validity

Discriminant validity is a test conducted to see whether each indicator that composes a latent variable has a higher loading value compared to indicators for other latent variables. Discriminant Validity is also related to the principle that measures (manifest variables) of different constructs should not be highly correlated. The way to test the discriminant validity of reflective indicators in this study uses two methods, namely:

• Discriminant validity using cross loading. the parameter used is to compare the root of the AVE of a construct must be higher than the correlation between these latent variables, or by looking at the cross loading value (Hartono & Abdillah, 2015). In the cross loading table, it will be seen that each indicator in one construct will be different from indicators in other constructs and collect in the intended construct. The result is shown in Table 4 and can be concluded that the data is the data has met the requirements of the discriminant validity test so that all indicators have correctly measured the variables.

Table 4. Cross loading result.

	BOGO	Customer_Behavior	Free_Coupon	Free_Sample	Price_Discount
BOGO1	0.777	0.487	0.612	0.572	0.606
BOGO2	0.728	0.553	0.454	0.491	0.488
BOGO3	0.818	0.500	0.570	0.615	0.583
BOGO4	0.829	0.529	0.541	0.636	0.643
BOGO5	0.772	0.503	0.579	0.543	0.599
CB10	0.501	0.805	0.505	0.489	0.530
CB15	0.569	0.824	0.583	0.541	0.518
CB4	0.487	0.746	0.482	0.393	0.378
COU1	0.534	0.557	0.789	0.526	0.510
COU3	0.578	0.553	0.805	0.573	0.470
COU4	0.593	0.538	0.826	0.620	0.591
COU5	0.540	0.475	0.791	0.544	0.572
FS3	0.624	0.504	0.571	0.863	0.533
FS4	0.636	0.537	0.611	0.876	0.609
FS5	0.572	0.479	0.597	0.779	0.569
PD1	0.610	0.519	0.588	0.523	0.836
PD4	0.667	0.546	0.564	0.622	0.856
PD5	0.613	0.470	0.542	0.584	0.858

• A second analysis of discriminant validity is HTMT. HTMT (heterotrait-monotrait) approach is an estimate of the true correlation between two constructs, if they were perfectly measured (i.e. if they were perfectly reliable). The criterion in the HTMT assessment is a correlation value <0.9 so that there is no identical correlation between variables. The analysis results in Table 5 show that all HTMT correlations have a value <0.9 so that the data in this study meet the valid criteria.

Table 5. HTMT result.

	BOGO	Customer Behavior	Free_Coupon	Free_Sample	Price_Discount
BOGO
Customer_Behavior	0.847
Free_Coupon	0.845	0.867
Free_Sample	0.891	0.802	0.878
Price_Discount	0.898	0.792	0.820	0.848

4.5. Inner model evaluation

Testing the inner model or structural model is carried out to predict the causal relationship between variables or hypothesis testing. This test can be seen through the results of the coefficient of determination and path coefficient. When the significant relationship between variables is known, the hypothesis related to the variables used in the study can be concluded.

The coefficient of determination test, also known as the R-squared coefficient, is used to measure how well a linear regression model matches observational data. The coefficient of determination provides information about the percentage variation in response variables that can be explained by independent variables in the model. Based on Table 6, the results of the coefficient of determination test using R-Square can be interpreted that all endogenous variables of this study can be explained well by the exogenous variables. The R-squared value on the consumer behavior variable is 0.525. This shows that consumer behavior in this model can be explained by free coupons, free samples, buy one get one free, and discounts at a value of 525%.

Table 6. Coefficient of determination and hypothesis testing results.

	Path coefficient	T statistics	p values	R^2 value
Free_Coupon -> Customer_Behavior	0.327	4.927	.000	0.525
Free_Sample -> Customer_Behavior	0.093	1.274	.203
BOGO -> Customer_Behavior	0.268	3.144	.002
Price_Discount -> Customer_Behavior	0.124	1.448	.148

The next analysis of the inner model is path analysis. The path coefficient test, also known as the path coefficient, is a method used in structural equation analysis (SEM) to test the strength and significance of relationships between variables in a model. This test provides information about the direct influence between the independent variable and the dependent variable in the model. The research hypothesis is said to be significant if the value of the T-statistic is more than 1.96 (T-statistic > 1.96). The p-value less than .05 (p-value < .05) will indicate how effectively variable X explains variable Y or is used to find out whether the hypothesis made is acceptable. The results of testing this research hypothesis can be seen in Table 6 and can be concluded that:

1. Free coupon has a positive and significant effect on customer behavior with a path coefficient of 0.327 and a significance of 0.000 so that H1 is supported

2. A free sample has a positive but insignificant effect on customer behavior with a path coefficient of 0.093 and a significance of 0.203 so that H2 is not supported

3. BOGO has a positive and significant effect on customer behavior with a path coefficient of 0.268 and a significance of 0.002 so that H3 is supported

4. Price Discount has a positive but insignificant effect on customer behavior with a path coefficient of 0.124 and a significance of 0.148 so that H4 is not supported

5. Discussion

This study analyzes the effect of point of sales materials which include free coupons, free samples, BOGO (Buy One get One) and Price Discount on customer behavior on Wardah cosmetic products. The analysis was carried out with a sample of 245 respondents using structural equation model analysis with Smart-PLS software. This study formulates 4 hypotheses and the analysis results show that H1 and H3 are supported while H2 and H4 are not supported.

The results of the analysis show that free coupons have a positive and significant effect on customer behavior. These results indicate that the more coupons distributed to consumers will increase customer behavior. These results are supported by Koo and Suk (2020) and Rubiyanti et al. (2022) where similar results were found that free coupons can increase customer behavior. By offering free coupons, customers can gain interest and build trust in newly launched products or services. The effect of free coupons on consumer behavior in this study can be reviewed based on the gender of respondents who mostly filled out research questionnaires. A study conducted by Ertiö et al. (2020) shows that there are differences in online shopping patterns related to social media activity between men and women in Finland. In the study, it was found that women tend to engage more in social media activities compared to men.

Offering free coupons is one of the strategic sales promotion tools that influence purchasing decisions (Ismail & Siddiqui, 2019). According to Abebe in Ali and Muhammad (2021) offering free coupons is an excellent strategy to stimulate sales, especially in the short term. Several previous studies also support the important role of free coupons such as (Koo & Suk, 2020) who found that consumers are very interested in the term ‘free’ in making purchases, so the word is very appropriate to foster positive behavior from consumers. Likewise, (Ali & Muhammad, 2021) also emphasize that free coupons are one of the strategic marketing tools. This study emphasizes that the use of coupons as a marketing tool can be measured by several aspects, namely Coupon appeal, Priority of coupon use, Increased purchase time with coupons, Increased purchase quantity with coupons and Purchase of new products with coupons.

These free coupons generate a positive influence which is because it has several benefits:

1. Increase awareness and interest: Free coupons can attract consumers’ attention to halal cosmetic products. They can be an effective tool to increase the awareness and interest of consumers who were previously unfamiliar with the brand or product.

2. Encourage product trials: Free coupons provide an opportunity for consumers to try halal cosmetic products without having to pay full price. This can reduce financial risk and motivate consumers to try and experience the benefits of the product firsthand.

3. Build trust: If consumers are satisfied with the products they are trying through free coupons, this can help build trust in halal cosmetic brands. Consumers will feel more confident to buy products regularly and recommend them to others.

4. Increase customer loyalty: By providing free coupons regularly to loyal customers, halal cosmetics companies can build long-term relationships and increase customer loyalty. Free coupons can be an added incentive for customers to choose the brand consistently.

The results of further analysis show that BOGO (buy one get one) has a positive and significant effect on consumer behavior. These results indicate that the BOGO marketing method will be able to increase positive consumer behavior in purchasing cosmetics. This finding is almost in line with previous research (Ali & Muhammad, 2021). Apart from the research above, this research is also in line with other studies that also discuss similar matters (Bhushan, 2021). Both studies state that buy one get one free has a positive and significant influence on consumer purchasing behavior.

BOGO creates interest in the minds of consumers in a product. Research conducted by Ahmad et al. (2015) states that there is a positive impact of buy one get one on consumer purchasing behavior. With buy one get one, sellers can easily attract consumer attention by getting twice the product purchase for one product price (Ali & Muhammad, 2021; Dugan et al., 2021; Gordon-Hecker et al., 2020; Yin-Fah et al., 2011). Therefore, the BOGO concept is widely practiced in marketing practices for the lower middle class, especially for women and more on fashion and cosmetic products (Li, Khouja, et al., 2019).

Gordon-Hecker et al. (2020) emphasized BOGO (buy one get one) as a powerful promotional tool. Even (Bak et al., 2022) found that BOGO can create unplanned purchases. Consumers who initially did not plan to buy, but can be moved to buy a product on the grounds of buy one get one. This research advocates the use of the BOGO strategy in cosmetics marketing because it is able to make several positive contributions including the attractiveness of BOGO, Priority use of BOGO, Increased purchase time with BOGO, Increased number of purchases with BOGO and Purchase of new products with BOGO.

Although ‘buy one get one free’ (BOGO) is one of the popular marketing strategies, there are several factors that can cause BOGO not always to have a positive and significant effect on consumer behavior, including:

1. Perception of product value: If the product purchased is not considered of high value by consumers, BOGO’s offer may not provide enough traction to influence purchasing decisions. Consumers should feel that they are getting value in proportion to what they pay for the product.

2. Purchase frequency: The BOGO strategy can have a positive impact if the product is a frequently purchased item or has a high level of consumption. However, if the product is rarely purchased or only needed occasionally, consumers may not see the benefits of BOGO’s offerings.

3. Real needs: If consumers do not have a need or interest in obtaining a product in bulk (for example, if that product has a limited shelf life or is used only on special occasions), they may be reluctant to take advantage of BOGO’s offerings.

4. Terms and limitations: Some BOGOs may have certain requirements or restrictions, such as expiration dates, limited exchange locations, or products with certain variants. This can complicate or reduce the attractiveness of the offer for some consumers.

5. Manipulative perception: Some consumers may feel that BOGO offers are manipulative attempts by companies to encourage impulse purchases, especially if they believe that the initial price of the product has been inflated to cover BOGO offers.

6. Influence from other marketing strategies: The influence of BOGO can also be influenced by other marketing strategies used by the company. If consumers are more interested in big discounts or other special offers, BOGO may not look comparable or attractive.

Furthermore, this study found that there are two aspects of point of sales materials that have no effect on consumer behavior on Wardah cosmetic products, namely free samples and price discounts. These two aspects are considered important in previous literature studies by Liao et al., (2023) and Shi et al. (2023) but in some cases samples and discounts do not have a significant effect on consumer behavior.

Samples and discounts are common marketing techniques. Aldoreno and Chairy (2021) also found that discounted sales had no effect on positive consumer behavior. This is because competitors who sell similar products also implement discount or free sample strategies so that discounts become commonplace. This study recommends two aspects of POSM, namely free coupons and BOGO, which are proven to increase positive consumer behavior.

6. Conclusion

This study has explored the impact of various Point of Sale Materials (POSM) on consumer buying behavior, particularly in the context of halal cosmetic products. The investigation focused on how different POSM strategies, including Free Coupons, Free Samples, BOGO, and Discounts, influence consumer decisions. The results indicate that each POSM type significantly affects consumer buying behavior, highlighting the effectiveness of these marketing tools in the halal cosmetic industry. The detail result of the analysis state that:

1. Free coupon has a positive and significant effect on customer behavior so that H1 is supported

2. A free sample has a positive but insignificant effect on customer behavior so that H2 is not supported

3. BOGO has a positive and significant effect on customer behavior so that H3 is supported

4. Price Discount has a positive but insignificant effect on customer behavior so that H4 is not supported

The scope of our study is confined to Indonesia, a country with a predominantly Muslim population. Subsequent research should broaden its geographical focus to include countries with non-Muslim majorities. Such exploration could yield novel insights and different angles on consumer behavior in relation to halal cosmetic products.

Authors contribution

The paper titled ‘Consumer Buying Behavior Towards Point of Sale Material of Halal Cosmetic Products’ investigates the influence of various Point of Sale Materials (POSM) on consumer buying behavior in the halal cosmetic industry. This study focuses on marketing strategies and their impact on the purchasing decisions of Muslim consumers.

Author Contributions:

1. Rheyza Virgiawan: Conceptualization of the research idea, methodology development, data analysis using PLS-SEM, and drafting the main manuscript, interpreting the results and drawing conclusions from the data.

2. Revinanda Amda Anisa: Assistance in data collection and analysis, literature review, and co-writing the manuscript. Contributed significantly to the design of the research questionnaire and played a vital role in the discussion of results.

3. Martini Dwi Pusparini: Contribution to the theoretical framework development, review, and editing of the manuscript. Martini provided critical feedback on the research design and methodology, ensuring the study’s robustness and alignment with academic standards.

Acknowledgment

On this occasion, as authors, we would like to give thanks to the Islamic Studies Department of Universitas Islam Indonesia for the support that has been given to this research. Also, we would like to thank all the participants that has been joint us in this research.

Disclosure statement

Written informed consent was obtained from each participant, emphasizing their voluntary participation and the right to withdraw at any time without penalty. For the paper titled ‘Consumer Buying Behavior Towards Point of Sale Material of Halal Cosmetic Products’, the authors hereby declare the following. The research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

Data availability statement

All the data for this research can be accessed here: https://doi.org/10.6084/m9.figshare.24617748.v1. We obtained this data by distributing an online questionnaire that we had compiled to respondents via social media, Instagram and WhatsApp.

Additional information

Funding

The authors received no specific grant from any funding agency in the public, commercial, or not-for-profit sectors.