UNRAVELING THE LINK BETWEEN RISK AVERSION AND BRAND LOYALTY IN MEN’S COSMETICS: THE MEDIATING ROLE OF BRAND TRUST AND BRAND AFFECT

Abstract

Background: Currently, cosmetic products are no longer exclusively for women but also for men. Thus creating opportunities and an environment conducive to the emergence of new companies. With the increasing number of companies in the men's cosmetics industry today, building brand loyalty is one of the biggest challenges that companies will face.

Purpose: This research aims to explore the relationship between Risk Aversion and Brand Loyalty, and to test whether Brand Trust and Brand Affect mediate this relationship.

Design/methodology/approach: This is a quantitative study with one independent variable (Risk Aversion), one dependent variable (Brand Loyalty), and two mediating variables (Brand Trust and Brand Affect)—130 male respondents from the University of Bandung. The analysis method uses variance-based structural equation modeling.

Findings/Result: The research results indicate that risk aversion is statistically significant in influencing brand trust, effect, and loyalty. Brand trust and brand effect are also statistically significant in influencing brand loyalty.

Conclusion: This study confirms that risk aversion significantly influences brand trust, brand effect, and brand loyalty among male consumers in the cosmetics industry. Furthermore, brand trust and brand affect are also significant predictors of brand loyalty. These findings underscore the importance of addressing consumer risk perceptions and fostering trust and positive emotional connections to cultivate brand loyalty in this market segment.

Originality/value (State of the art): This research contributes as a means of scientific and theoretical information for subsequent studies related to Risk Aversion, Brand Trust, Brand Affect, and Brand Loyalty.