The Influence of Inclusive Brand Image in Indonesian Cosmetic Products on Customer Loyalty

: In recent years, cosmetic brands in Indonesia have shifted their marketing strategies to emphasize inclusivity, aiming to foster stronger customer loyalty. This shift includes the portrayal of diverse beauty standards and the inclusion of a wide range of skin tones and types in their product lines. Prior studies have demonstrated that an inclusive brand image significantly boosts brand trust and customer satisfaction. The research investigates the influence of an inclusive brand image in Indonesia’s cosmetic products on customer loyalty, focusing specifically on Generation Z consumers. By employing a quantitative research methodology, data was collected using online surveys distributed to 201 respondents aged 12-27 years. The study aims to explore the relationship between inclusive brand image and brand trust, customer satisfaction, and loyalty within the context of the Indonesian cosmetics market. Data analysis was conducted using descriptive statistics and PLS-SEM. The findings indicate that an inclusive brand image positively influences brand trust and customer satisfaction, which subsequently strengthen customer loyalty. Findings from this research are anticipated to provide insights that can help local cosmetic brands enhance their inclusive marketing strategies, thereby fostering a sense of acceptance and belonging among their diverse customer base and driving customer loyalty.


INTRODUCTION
The beauty industry has undergone a significant transformation in recent years, emphasizing the importance of inclusivity in cosmetic products.Inclusive marketing is a strategic approach that promotes diversity and caters to a wide range of skin tones, types, and other individual characteristics, aiming to make every customer feel represented and valued.This shift has been driven by increasing consumer demand for products that acknowledge and celebrate diversity, influenced by social movements such as "Black Lives Matter" which highlight the need for broader representation and inclusivity in all sectors, including cosmetics (Sanchez, 2021).The concept of an inclusive brand image, which encompasses the portrayal of diverse beauty standards, is crucial in today's market.Brands like Fenty Beauty and Rare Beauty have set high standards with their extensive range of foundation shades and inclusive product packaging, respectively (Alli, 2022;Morson, 2020).This approach not only addresses the varying needs of consumers but also fosters brand trust and customer satisfaction, which are essential for building customer loyalty (Kim & Chao, 2019;Dam, 2020).In Indonesia, a diverse cultural landscape offers a unique backdrop for studying the impact of inclusive brand images.The local beauty market is rapidly growing, with an increasing number of consumers seeking products that cater to their specific needs and values.Despite this, many Indonesian cosmetic brands are still perceived as lacking in inclusivity (Nadhirahastri, 2022).
The main issues facing the beauty industry, particularly in Indonesia, include the lack of cultural relevance and sensitivity in product offerings and marketing strategies.Many brands still struggle to offer products that cater to the diverse skin tones and types present in the Indonesian market, leading to dissatisfaction among consumers (Nasir, 2023).Moreover, the competitive nature of the beauty industry necessitates that brands innovate and adapt to meet evolving consumer expectations (Fauzia, 2022).
This research aims to investigate the influence of inclusive brand images in Indonesian cosmetic products on customer loyalty, focusing specifically on Generation Z consumers.By examining the relationships between inclusive brand image, brand trust, customer satisfaction, and loyalty, this study seeks to provide insights that can help local cosmetic brands enhance their marketing strategies and better meet the needs of their diverse customer base.By addressing these research problems, the study aims to offer practical recommendations for Indonesian cosmetic brands to improve their inclusivity efforts, thereby fostering a stronger connection with their consumers and enhancing customer loyalty.

Hypotheses
A positive brand image can lead to higher levels of customer satisfaction as it reflects reliability and attractiveness.Prior research has established that a well-constructed brand image influences customer satisfaction by enhancing their perception of the brand's quality and reliability (Abbas et al., 2021;Wijaya, 2018).A brand that is perceived positively by customers can meet or exceed their expectations, thereby increasing satisfaction.H1: Brand image has a significant effect on customer satisfaction.
Consumers are more likely to trust a brand that has a positive and strong image.Studies indicate that a strong brand image fosters trust as it conveys stability, reliability, and a commitment to quality (Kim & Chao, 2019;Bernarto et al., 2020).Trust in a brand is built when customers perceive the brand as consistent and dependable, which is often reflected in a positive brand image.H2: Brand image has a significant effect on customer loyalty.
A strong brand image can influence customers' loyalty, encouraging them to make repeat purchases.Research shows that customers tend to remain loyal to brands that have a positive image because they associate the brand with high quality and good experiences (Cuong & Khoi, 2019;Dam & Dam, 2021).A positive brand image can create an emotional connection with customers, leading to increased loyalty.H3: Brand image has a significant effect on customer loyalty.
Trust in a brand ensures that customers feel confident in their purchases, leading to higher satisfaction.Previous studies have shown that brand trust reduces perceived risks and enhances the overall purchase experience, resulting in greater satisfaction (Apriansyah & Muhmin, 2023;Wulur et al., 2020).When customers trust a brand, they believe that it will deliver on its promises, which boosts their satisfaction with the product or service.H4: Brand trust has a positive effect on customer satisfaction.
Trustworthy brands tend to retain customers, as they are more likely to return to brands they trust.Research suggests that brand trust is crucial for building customer loyalty, as it encourages repeat purchases and positive word-of-mouth (Japarianto & Agatha, 2023;Tammubua, 2021).Customers who trust a brand are more likely to stay loyal because they feel secure in their choice and have confidence in the brand's consistency.H5: Brand trust has a positive effect on customer loyalty.
Satisfied customers are more likely to become loyal customers who make repeat purchases and recommend the brand to others.Studies have consistently shown that customer satisfaction is a key driver of loyalty, as satisfied customers tend to return to the brands they enjoy and share their positive experiences with others (Ahlawat, 2023;Abu et al., 2020).High levels of satisfaction lead to stronger loyalty and a greater likelihood of customers advocating for the brand.

METHODOLOGY
This study employs a quantitative research approach to investigate the influence of inclusive brand images on customer loyalty in the Indonesian cosmetic market, focusing specifically on Generation Z consumers.The subjects of this study are Generation Z consumers in Indonesia, aged 12-27 years, who use inclusive cosmetic products.A total of 201 respondents participated in the survey.The research was conducted through a structured online survey using Google Forms.The survey was distributed over two months, from February to March 2024.The respondents were selected using purposive sampling to ensure they met the criteria of being Generation Z consumers who use inclusive cosmetic products.
The primary instrument for data collection was a questionnaire designed based on existing literature and previous research on brand image, brand trust, customer satisfaction, and customer loyalty.The questionnaire included both multiple-choice questions and Likert scale items.Data was collected through an online survey distributed via social media platforms and direct messaging to potential respondents.The questionnaire collected socio-demographic information and responses related to the study variables: brand image, brand trust, customer satisfaction, and customer loyalty.The collected data were analyzed using descriptive statistics and Partial Least Squares Structural Equation Modeling (PLS-SEM) with the SmartPLS software.Below are the measurements details:

DATA ANALYSIS AND DISCUSSION
The quantitative analysis conducted to determine how inclusive brand images in Indonesian cosmetic products affect customer loyalty via brand trust and customer satisfaction is presented in this section.Descriptive statistics and Partial Least Squares Structural Equation Modeling (PLS-SEM) were utilized in SmartPLS to analyze the data.
The demographic profile of the 201 respondents indicates that the majority are Generation Z (92.5%), aged 12-27 years, with a significant proportion being university students (71.1%).The remaining respondents include high school students, employees, entrepreneurs, and others.Geographically, 90% of respondents are from the island of Java, with smaller percentages from Sumatra, Bali, Kalimantan, Sulawesi, and Papua.This distribution highlights a focus on younger, digitally engaged individuals in urban areas, aligning with the target market of inclusive cosmetic brands.
Screening questions confirmed that all respondents had experience with inclusive cosmetic products, ensuring relevant perceptions and behaviors for assessing the impact of inclusive brand images on brand trust, customer satisfaction, and loyalty.This demographic and familiarity data underscores the importance of respondents' insights in evaluating the effectiveness of inclusive marketing strategies.
In composite reliability, values that are between the number 0.60 and 0.70 are considered acceptable, whereas numbers between 0.70 and 0.95 can be considered satisfactory to good reliability levels.However, it is problematic if the values are higher than 0.95 (Sarstedt et al., 2021).Table 2 displays the composite reliability scores that are higher than 0.70, confirming the reliability of each variable.Convergent validity required the Average Variance Extracted (AVE) to be evaluated to check the validity of each variable.According to Bagozzi and Yi (1988), the AVE numbers must be above 0.50 for the variables to be considered valid (Wong, 2013).The results of AVE for all variables in this research are above 0.50, which can be considered valid.It can be seen in Table 3 below.Bootstrapping is used to test the inner and outer models significantly using T-statistics.From the result of the T-statistics, which checks the inner model's path coefficient, the result number should be above 1.96.The outer model loadings are significant if the number of T-statistics is above 1.96 (Wong, 2013).Table 5 shows that the T-statistics on each path are significant because the number of T-statistics is above the number of 1.96.The most significant path is Brand Image to Brand Trust, with 16.490, and the least significant path is Brand Image to Brand Loyalty, with 2.262.The Goodness-of-Fit (GoF) index is used to measure the performance that is predicted in the measurement model.To calculate the result of GoF, multiplying the square root of R2 average with Q2 will be done (Wong, 2013).Table 5 below shows the calculation of GoF using the coefficient of determination (R2) and cross-validated redundancy (Q2).Based on the calculation result of GoF in Table 6, it shows that the GoF score which is 0.343 is higher than the minimum score which is 0.1.The GoF number that is higher than 0.1 means that the model can be used to explain the data.

Mediating Test
In conducting the mediation test, there will be steps by Baron and Kenny (1986) to test the mediation: 1.First, test the independent variable against the dependent variable (direct effect).For the test to be accepted, the T-statistic needs to be at least 1.96 and have a P-value below 0.05.Then, the test should continue to the second step.2. Second, test the independent variable to the mediator (indirect effect).The T-statistic needs to be above 1.96, with a P-value below 0.05, so the path can be accepted.The accepted path should continue to the next step.3. Third, test the independent variable and mediator predicting the dependent variable (total effect).

Mediating Test on Brand Trust
As seen on the direct effect result in Table 8, the T-statistic of brand image to customer satisfaction is 6.017, with the Pvalue of 0.000, meaning that there is a significant direct effect between brand image on customer satisfaction.Whereas for the T- statistic of brand image to customer loyalty is 2.309, with the P-value of 0.021, which means that there is a significant effect for brand image on customer loyalty.The table 9 that shows the indirect effect of brand image to customer loyalty has a result of T-statistics that is both above 1.96, and P-value below 0.05, meaning that both the brand image to customer satisfaction (T-stat: 6.366, P-value: 0.000), and brand image to customer loyalty (T-stat: 2.878, P-value: 0.004) has a significant indirect effect through the mediation of brand trust.According to Table 10 that shows the total effect result of the structural path has a T-statistics of 17.564 and 3.949 for brand image to customer satisfaction and brand image to customer loyalty respectively, with P-value of 0.000 for both of the structural paths.The result shows that there is a significant effect for the brand image to customer satisfaction and brand image to customer loyalty.From the brand trust's mediation test that has been done, the result for the test is partial (complementary) mediation, which shows that the indirect and direct effects are both significant and point in the same direction.

Mediating Test on Customer Satisfaction
As seen on the direct effect result in Table 11, the T-statistic of brand image to customer loyalty is 3.058, with the P-value of 0.002, meaning that there is a significant direct effect between brand image on customer loyalty.Whereas for the T-statistic of brand trust to customer loyalty is 2.853, with the P-value of 0.004, which means that there is a significant effect for brand trust on customer loyalty.The table 12 that shows the indirect effect of brand image to customer loyalty has a result of T-statistics that is both above 1.96, and P-value below 0.05, meaning that both the brand image to customer loyalty (T-stat: 5.918, P-value: 0.000), and brand trust to customer loyalty (T-stat: 3.603, P-value: 0.000) has a significant indirect effect through the mediation of customer satisfaction.According to Table 13 that shows the total effect result of the structural path has a T-statistics of 11.447 and 5.448 for brand image to customer loyalty and brand trust to customer loyalty respectively, with P-value of 0.000 for both of the structural paths.The result shows that there is a significant effect for the brand image to customer loyalty and brand trust to customer loyalty.From the customer satisfaction's mediation test that has been done, the result for the test is partial (complementary) mediation, which shows that the indirect and direct effects are both significant and point in the same direction.

H1: Brand Image has a significant effect on Customer Satisfaction
The first hypothesis is supported by a T-statistic of 5.991, well above the 1.96 threshold, with indicators averaging over 3.50.This aligns with previous studies (Abbas et al., 2021;Wijaya, 2018;Ma'azzah & Prasetyo, 2023) showing a positive link between brand image and customer satisfaction.In this context, the inclusive brand image of cosmetic brands satisfies customers, particularly when the image meets personal needs like matching skin tones.Frequent purchases and preference for e-commerce platforms also highlight the importance of accessibility and convenience.
H2: Brand Image has a significant and positive effect on Brand Trust Supported by a T-statistic of 16.490 and average indicators over 3.50, this hypothesis confirms previous research (Afriani et al., 2019; Kim & Chao, 2019; Bernarto et al., 2020).An inclusive brand image strengthens brand trust by meeting consumer needs and maintaining a positive online presence.Respondents' reliance on social media and moderate spending further indicate that a trusted brand image fosters consumer trust.H3: Brand Image has a significant effect on Customer Loyalty The hypothesis is validated with a T-statistic of 2.262 and indicators averaging above 3.50.Previous studies (Ma'azzah & Prasetyo, 2023; Dam & Dam, 2021; Kandampully & Suhartanto, 2000; Cuong & Khoi, 2019) support this finding, showing that an inclusive brand image boosts customer loyalty.Regular purchases and willingness to recommend the brand demonstrate loyalty driven by a positive brand image and accessibility.H4: Brand Trust has a positive effect on Customer Satisfaction A T-statistic of 6.716 and high indicator averages support this hypothesis, confirming prior research (Apriansyah & Muhmin, 2023; Wulur et al., 2020; Japarianto & Agatha, 2023).Trust in a cosmetic brand leads to higher customer satisfaction, especially when expectations are met.Social media influences this trust, suggesting that endorsements from trusted sources enhance satisfaction.H5: Brand Trust has a positive effect on Customer Loyalty

Table 1 . Research Measurement
CS1Compared to other brands, I am happy with inclusive cosmetic brands(Dam & Dam, 2021) CS2The overall feeling I received from the inclusive cosmetic brand was satisfiedCS3My purchase choice at inclusive cosmetic brand is the right oneCS4The inclusive cosmetic brand meets my expectations ISSN:

Table 3 . Convergent Validity Variables Average Variance Extracted (AVE) Validity
Larcker criterion result is going to be used.When a latent variable explains more of the variance in the indicator variables it is related to than other constructs in the same model, Fornell and Larcker (1981) claim that discriminant validity has been demonstrated(Henseler et Discriminant validity is one of the ways to analyze the reliability of internal consistency.In this testing the Fornell-

Table 6 . Goodness of Fit
The hypothesis testing results are shown in Table7below.The Smart PLS calculation, which includes the T-Statistics and P Value result for the research, is provided below to see the findings of this research hypothesis.

Table 11 . Direct Effect Result
ISSN: