Abstract:

Unloyal yet heavy cosmetics buyers and millennial preferences for international cosmetic products create problems for local cosmetic brands. Previous research has discussed contributing factors in Customer Satisfaction and Customer Loyalty towards beauty products and discussed Indonesian Local Cosmetic Brands as a research subject, yet researchers have not specified Millennials as target respondents and use Indonesia as the research subject. Therefore, this research aimed to focus on Indonesian millennials' customer loyalty towards local cosmetic brands by evaluating its relationship with customer satisfaction, perceived product quality and price, and emotional attachment. A total of 203 local female millennials' cosmetics user data are gathered and analyzed using SEM-PLS. The study reveals how customer loyalty is positively impacted by customer satisfaction. Customer satisfaction has been shown to mediate and amplify the influence of other variables such as perceived product quality and emotional attachment. However, the perceived price has no direct impact on customer loyalty. Instead, Perceived product quality is proven to be an important factor in customer loyalty. To conclude, this study proves that Indonesian Millennials' loyalty is quality-driven rather than price-driven

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