Digital Interaction, Customer Value, and Loyalty in Social Commerce: The Role of Customer Ethnocentrism

Abstract

The rapid growth of social media and social commerce has transformed how cosmetic users evaluate products and develop loyalty toward cosmetic brands. This study examines the influence of Social Media Construct and Social Commerce Construct on Customer Value and the subsequent effect of Customer Value on Customer Loyalty. It also investigates the moderating role of Customer Ethnocentrism in the relationship between Customer Value and Customer Loyalty. A quantitative approach was used, with data collected through structured questionnaires from 300 cosmetic users in Java Island, Indonesia, specifically from Jakarta, Bandung, and Surabaya. The research variables consist of Social Media Construct, Social Commerce Construct, Customer Value, Customer Loyalty, and Customer Ethnocentrism. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS. The study is expected to show that ratings, recommendations, and social commerce interactions strengthen Customer Value by helping cosmetic users reduce uncertainty, evaluate product credibility, and gain social assurance during the purchasing process. Customer Value is expected to increase Customer Loyalty, while Customer Ethnocentrism is expected to strengthen this relationship, particularly among users who prefer and support local cosmetic brands. These findings contribute to social commerce and consumer behavior literature by explaining how digital interaction and ethnocentric orientation shape loyalty among cosmetic users. Practically, the study provides insights for cosmetic brands and digital marketers in designing social media and social commerce strategies that enhance Customer Value and build sustainable Customer Loyalty.