Studies and Scientific Researches. Economics Edition, No 34, 2021 http://sceco.ub.ro 44 THE EFFECT OF ADVERTISING AND PRODUCT QUALITY ON THE PURCHASE DECISION OF HALAL COSMETICS WITH ONLINE CONSUMER REVIEWS AS MEDIATION VARIABLES Ristina Tri Rahmawati Universitas Pembangunan Nasional Veteran Jakarta ristina.tri@upnvj.ac.id Muhammad Anwar Fathoni Universitas Pembangunan Nasional Veteran Jakarta mfathoni@upnvj.ac.id Abstract Indonesia is ranked second the largest halal cosmetic consumer country in the world with a total consumption of US$ 4 billion. In fact, Indonesia hasn’t been first rank of the 10 indicator countries for halal pharmaceutical and cosmetic producers. Halal cosmetic manufacturers in Indonesia still ranked sixth, this condition is inversely to the total consumption of the Indonesian residential to halal cosmetics. This study aims to determine the effect of advertising and product quality on halal cosmetic purchasing decisions with online consumer reviews as a mediating variable. Research method is descriptive quantitative. Research test is the inner model, outer model, hypothesis testing and mediation testing with WarpPLS 7.0. Population is men and women who have bought and used halal cosmetics and domiciled in Jabodetabek. Samples are 210 people using purposive sampling. The results of a study found advertising, product quality, and online consumer review significant and positive on the purchasing decisions, and online consumer review was able to mediate advertising and product quality on purchasing decisions. The research is to increase Indonesian halal cosmetic manufacturers to become the world’s main producer of halal cosmetics and innovate in the growth of halal cosmetics industry. Keywords advertising; halal cosmetics; product quality; purchasing decisions; online reviews JEL Classification L6; M3 Introduction The halal industry is the most developed and growing sector from year to year. Indonesia is a country that has great power to develop the halal industrial sector, because it has the largest Muslim population in the world. The halal industry in Indonesia continues to develop and receives support from various parties, ranging from government policies, regulations, halal certificates, and technological developments in an effort to develop the halal industry (Fathoni & Syahputri, 2020). The halal industry is predicted to experience an increase in revenue in 2024 for the halal product and lifestyle sector (Standard, 2020). Indonesia as a producer of the halal industry among the 10 indicator countries of the Islamic Economy 2020/21 is still not able to rank in the top five producers in various Halal industries, namely Islamic finance, halal travel, halal pharmaceuticals and cosmetics (Standard, 2020). Halal cosmetics are the answer for Muslim women who want to treat their faces to their feet without violating the teachings of Islam (Maria, 2020). Changes in needs make cosmetics a primary need for every women, so it is Rahmawati, Fathoni 45 important to pay attention to safe cosmetics when using cosmetics (Zukhrufani & Zakiy, 2019). Indonesia as the country's halal cosmetic producer is still in the sixth rank. Table 1. Top Ten Pharmaceutical & Cosmetic Producer Countries 2020/21 Rank Country Total Muslim 1 Malaysia 16,318,355 2 United Arab Emirates 4,615,081 3 Singapore 781,558 4 Iran 82,500,000 5 Egypt 87,500,000 6 Indonesia 229,000,000 7 French 5,720,000 8 South Africa 1,050,000 9 Turkey 79,850,000 10 Tunisia 11,190,000 Source: State of The Global Islamic Economy 2020/21 (processed) Singapore is a country that is included in the top five halal cosmetic producers and the only country that does not have a Muslim majority population, but Indonesia is still unable to compete with Singaporean products. Indonesia is a country with the highest Muslim population in the world, but it has not been optimized in utilizing the halal economy so that Indonesia has not been able to become the main producer of halal needs for the world (Fathoni & Syahputri, 2020). Table 2. Five Countries With the Highest Consumers of Halal Cosmetics Rank Country Total Consumption Total Muslim 1 India $6 billion 195 billion 2 Indonesia $4 billion 229 billion 3 Russia $4 billion 20 billion 4 Malaysia $4 billion 16, 31 billion 5 Turkey $4 billion 79,85 billion Source: State of The Global Islamic Economy 2020/21 (processed) According to a report from the State of The Global Islamic Economy 2020/21 data, as a consumer of halal cosmetics, Indonesia ranks second with consumption of US$4 billion (Standard, 2020). This condition is inversely proportional to the total consumption of the Indonesian population for halal cosmetics. The fact is that Indonesia has not been able to become the first rank of the 10 indicator countries for halal pharmaceutical and cosmetic producers. The majority of Indonesian people buy halal cosmetics online, where the highest sales from an e-commerce Shopee, Bukalapak and Tokopedia are Wardah brands originating from Indonesia. Cosmetics purchases in Indonesia are still dominated by brands from South Korea, namely Nature Republic and Innisfree, which are ranked second and third (Digimind.id, 2020). Local halal cosmetics have not developed optimally because they compete with imported halal cosmetic products from non-Muslim countries such as Singapore, Thailand, and South Korea which flood the cosmetic market in Indonesia. Indonesia is required to participate fairly and contribute to developing halal cosmetics both nationally and internationally, not only as users of cosmetics but also as producers THE EFFECT OF ADVERTISING AND PRODUCT QUALITY ON THE PURCHASE DECISION OF HALAL COSMETICS WITH ONLINE CONSUMER REVIEWS AS MEDIATION VARIABLES 46 of halal cosmetics (Nursyamsiah, 2018). Cosmetics are not only used by women but also by men. Men are starting to realize the importance of taking care of hair to feet. Products used by men are different from products used by women. Men's halal cosmetic products are dominated by facial care because men's cosmetic products are not much found (Basyarahil, 2017). Men who use cosmetics are considered unnatural because cosmetics are considered not too important (Juliarty, 2019). According to the Fatwa MUI No. 26 of 2013, that every Muslim may use cosmetics, as long as it is halal, pure and doesn’t contain forbidden ingredients. Consumers when purchasing products don’t only focus on halal but also be careful in choosing products to suit their needs. Consumers will consider several factors when deciding to buy cosmetics (Yanti & Darwanto, 2021). Based on the problem from the background, it is deemed necessary to conduct further research related to the decision to purchase halal cosmetics. The novelty of the research is that there has not been a research title that discusses the three variables simultaneously, namely advertising, product quality and online consumer reviews, and also not found online consumer reviews as a mediating variable. Therefore, researchers will discuss advertising and product quality on purchasing decisions with online consumer reviews as a mediating variable. Literature Review Purchase Decision Purchasing decisions in Islam have limitations that are born from Islam. The limitations of purchasing decisions in a Muslim's review are using halal products, prioritizing primary or basic needs, frugal, and aiming for the pleasure of Allah swt (Muflih, 2006). According to Mankiw (2008) consumer purchasing decisions are influenced by price, quality and income. Consumers before purchase will consider the price of the two products and buy the product that has a relatively cheaper price. Purchase decision is the attitude of a person in making a purchase after comparing one type of product with another type of product as an alternative choice (Setiadi, 2017). Purchasing decision indicators according to (Mongi et al., 2014) as follows: 1. The need to use a product 2. Desire to try a product 3. Stability of the quality of a product 4. Product repurchase decisions Advertisement Advertising is a very important promotional tool for companies whose products are aimed at the wider community (Morissan, 2010). According to Lupiyoadi (2013) advertising is useful for building attention to the existence of the product being offered, expanding information about a product, convincing potential buyers to buy or use the product, and recognizing products from other products. Ads must have 5 elements (Kotler & Keller, 2016) among others : 1. Mission is the purpose of an advertisement. The purpose of advertising is to inform or introduce a product to consumers so that they are influenced to buy the product. 2. Message (message). The message displayed by an advertisement must be able to explain the added value of the product through sentences and images. Advertising is called a storytelling medium that informs the buyer about the clarity of the product. 3. Media. Media is used to reach the target market effectively and cost-effectively. Media is also the best tool for advertising dissemination. Rahmawati, Fathoni 47 4. Money (funding). Advertising budgets are determined by pricing decisions on each feature, marketing reach, frequency and impact. 5. Measurement. Measurements are references obtained after an advertising campaign, to determine whether an ad is successful or makes a brand's reputation worse. A good advertisement will give a good and pleasant impression so that it will be easily remembered by consumers. Product Quality Quality is the ability of a product to meet its specifications (Lupiyoadi, 2013). Companies need to improve the quality of their products to win the competition, the more satisfied a consumer is with a product, the longer the consumer will stay with the product.Islam teaches companies to make quality products and be transparent in the information on product packaging (Zuardi & Sari, 2019). Measurement of product quality is divided into eight measurements according to Sviokla in (Lupiyoadi, 2013, hlm. 214), among others : 1. Performance relates to the use of the basic benefits of a purchased product. 2. The specialty of the product is secondary benefits or accessories. 3. Reliability is the usefulness of a product which consists of two results, namely satisfactory or not within a certain period of time. Products that have greater benefits then the product can be relied on. 4. Conformity, is the usability of the product in accordance with the basic function and serves to meet certain specifications or not and then found deficiencies in the product. 5. Durability, which means how long the product lasts before the product is used up. The frequency of consumer consumption is faster, the greater the durability of the product. 6. Service expertise, including speed, convenience, follow-up on complaints that are deemed unsatisfactory. 7. Beauty, relates to the appearance of the product packaging as seen from the appearance, taste, smell, and appearance of the product. Product packaging is good then the quality of the product is maintained. 8. Perceived quality, is the result of after using a product. Consumers who are dissatisfied with the product because of the possibility that consumers do not understand the use of the product purchased. Online Consumer Reviews Online consumer reviews are a type of electronic word of mouth that share product information from the consumer's perspective (Lee & Watkins, 2016). Online consumer reviews is defined as a place to get product information that is not available elsewhere in the hope that reading reviews can reduce risk in purchasing decisions and also to reduce search time for products that consumers want to buy (Khammash, 2008). Six conditions for an online review to be effective (Zhao et al., 2015) as follows : 1) Review benefits. The benefit of the review is the information of a product online so as to facilitate the process of making consumer purchasing decisions. 2) Review skills. The expertise of someone who understands more about the product will have a greater influence on consumer purchasing decisions, through online consumers reviews can find someone who understands about the product. 3) Review time. The process of searching for data by consumers is faced with large amounts of information based on different times. Online review must always provide up-to-date information that will attract the attention of potential consumers. 4) Number of reviews. Number is a meaningful attribute of word of mouth communication and plays a role in measuring the number of interactive messages. THE EFFECT OF ADVERTISING AND PRODUCT QUALITY ON THE PURCHASE DECISION OF HALAL COSMETICS WITH ONLINE CONSUMER REVIEWS AS MEDIATION VARIABLES 48 The number of reviews is a number of opinions or testimonials from a consumer. Online reviews that agree, consumers increasingly believe in these reviews and products. 5) Review rating. There are two types of online review values, namely positive and negative reviews. Negative reviews are caused by dissatisfaction with the use of a product, consumers who have a disappointing experience will be more active in disseminating information. 6) Complete review. Completeness aims to measure how detailed and complete a review is. Consumers need a complete online review, the completeness of the review is the key to making decisions when faced with the uncertainty of available information. Halal Cosmetics Cosmetics are an important requirement in the field of beauty (Sukristiani et al., 2014). Cosmetics according to BPOM RI Number 19 of 2021 concerning Guidelines for Follow-up on Supervision Results of Traditional Medicines, Quasi Medicines, Health Supplements, and Cosmetics, explains that cosmetics are beauty care products used for external parts of the human body such as epidermis, hair, nails, lips, teeth and others and functions to clean, scent, change appearance, and maintain healthy skin and body (Peraturan.go.id, 2021). Halal cosmetics in appearance are almost the same as ordinary cosmetics, the difference is that halal cosmetics do not contain haram ingredients which are prohibited by Islam. The guidelines used in choosing halal cosmetic products are similar to choosing halal food, namely in QS Al Baqarah verse 168. Methodology This research uses a quantitative descriptive method. Variables will be measured based on indicators of each exogenous and endogenous variable using a Likert scale of 1-4, for the doubtful choice is removed to avoid ambiguous answers and are deemed less valid. Sampling is non-probability sampling using purposive sampling technique (Sugiyono, 2013). The sample of this study uses the criteria that men and women who live in Jabodetabek, have bought and used halal cosmetics. Determination of the number of samples using the formula according to (Hair et al., 2010). Researchers may choose in determining the number of samples between 5 to 10, if the sample obtained is less than 10 times, it must be at least 5 times. This research has 23 questions, so counting samples is 23 times 9 is 207, to minimize the contents of the wrong questionnaire then the samples becomes 210 respondents. This study uses primary and secondary sources. The primary sources were obtained by the authors from men and women who had purchased and used halal cosmetic products domiciled in Jabodetabek. The secondary sources used are books, government publications, news, journals and other sources related to research. Researchers collect data by distributing questionnaires to a predetermined population through Google Froms or an application similar. The data analysis technique of this research uses the inner model test, outer model test, hypothesis test and mediation test using WarpPLS 7.0 software. Results and Discussion Deskriptive Respondent Data This research obtained 210 respondents of women and men who have bought and use the product halal cosmetics in Jabodetabek. Respondent data will be described based on the characteristics of the questionnaire that has been researched, as follows: Rahmawati, Fathoni 49 Table 3. Respondent Data by Gender Gender Respondent Percentage (%) Men 44 21 % Women 166 79 % Total 210 100 % Source: Data processed, 2021 Based on the table, it can be concluded that the majority of consumers of halal cosmetic products in this study were women amounting to 166 respondents with a percentage of 79%, and men amounting to 44 respondents with a percentage of 21%. Table 4. Respondent Data by Age Age Respondent Percentage (%) 12 - 23 Years (Generation Z) 134 63,8 % 24 - 39 Years (Millennial Generation) 60 28,6 % 40 - 55 Years (Generation X) 15 7,1 % 54 - 74 Years (Baby Boomer Generation) 0 0 % > 75 Years (Pre-Boomer Generation) 1 0,5 % Total 210 100 % Source: Data processed, 2021 Based on the table, it is concluded that consumers of halal cosmetic products in this study are the majority aged 12-23 years who are included in the category Z generation aged 12-23 years as many as 142 respondents by 63.8%. Table 5. Respondent Data Based on Domicile Domicile Respondent Percentage (%) Jakarta 116 55,2 % Bogor 15 7,1 % Depok 20 9,5 % Tangerang 47 22,4 % Bekasi 12 5,7 % Total 210 100 % Source: Data processed, 2021 Based on the table, it is concluded that the majority of consumers of halal cosmetic products are domiciled in Jakarta as many as 116 people with a percentage of 55.2%. Table 6. Respondent Data Based on Work Work Respondent Percentage (%) Student 58 27,6 % Civil Servant 8 3,8 % Private Employees 100 47,6 % Entrepreneur 12 5,7 % Housewife 16 7,6 % Other 16 7,6 % Total 210 100 % Source: Data processed, 2021 Based on the table, it is concluded that the majority of consumers of halal cosmetic THE EFFECT OF ADVERTISING AND PRODUCT QUALITY ON THE PURCHASE DECISION OF HALAL COSMETICS WITH ONLINE CONSUMER REVIEWS AS MEDIATION VARIABLES 50 products in this study work as private employees as many as 100 people by 47.6%. Measurement Model (Outer Model) Convergent Validity Test Convergent validity aims to prove that each question from the research variable indicators can be understood by respondents who respond to statements. The loading factor size is generally accepted as 0.708 or higher and the loading factor value < 0.5 must be removed from the model, however from the loading factor value exceeding 0.5 to 0.6 it is still considered to meet the value requirements and it is said that the indicator is valid. From the results, it was found that there were still questions that had scores below 0.50, although the majority of the questions had scores above 0.50. Therefore, questions that have a value below 0.50 must be deleted, this is because a value below 0.50 is considered invalid or does not meet the requirements for convergent validity. Then the researcher will delete the loading factor value below 0.50, namely KP4 of 0.422. Discriminant Validity Test Discriminant validity aims to prove that each question from the research variable indicators is not messed up by respondents who respond to questions. The measurement indicator through the AVEs value of the extracted average variance must be higher than the correlation involving exogenous and endogenous variables, besides the AVEs value must be above 0.50. The results of discriminant validity: Table 7. Results Average Variance Extracted (AVEs) Variable Average Variance Extracted (AVEs) Purchase Decision 0.721 Advertisement 0.795 Product Quality 0.760 Online Consumer Reviews 0.717 Source: Data processed, 2021 Based on the table, it shows that the AVEs value of each variable has a value above 0.50 and is higher than the correlation involving exogenous and endogenous variables, meaning that all variable data are valid and meet the requirements of discriminant validity. Internal Consistency Reliability Test This test aims to measure how capable indicators can measure variables. In testing the reliability of internal consistency there are 2 ways, namely the value of composite reliability and Cronbach alpha. The requirements for the value of composite reliability and cronbach alpha must be above 0.70, and the composite value must be higher than the cronbach alpha. The results of internal consistency reliability: Table 8. Composite Reliability Test Variable Composite Reliability Cronbach Alpha Purchase Decision 0.841 0.762 Advertisement 0.872 0.804 Product Quality 0.905 0.878 Online Consumer Reviews 0.861 0.805 Source: Data processed, 2021 Rahmawati, Fathoni 51 Based on the table, it is concluded that the composite reliability and Cronbach alpha values are reliable and meet the internal consistency reliability requirements Structural Model (Inner Model) Test To find out the model has a match with the data, it can be seen from the average path coefficient (APC), the average R-squared (ARS) and average variance factor (AVIF). The model fit is accepted if the APC and ARS p value < 0.05 while the AVIF must be smaller than 5. The results of the test model fit: Table 9. Model Fit and Quality Indices After Removal Model fit and quality indices Indeks P Value Criteria Description Average path coefficient (APC) 0,288 P<0,001 P<0,05 Received Average R-Squared (ARS) 0,388 P<0,001 P<0,05 Received Average Block Variance Inflation Factor (AVIF) 1.488 ≤ 5 and ideally ≤ 3,3 Received Source: Data processed, 2021 After the model fit test is met, then the next step is to look at the value of the coefficient of determination (R2). The test of the R-Square coefficient of determination is needed to find out how much influence the X variable has on the Y variable. The category of the R-Square coefficient of determination is divided into three, namely substantial at 0.75; moderate by 0.50; and weak by 0.25. Table 10. Result Effect Sizes For Path Coefficients Variable R-Square Description Advertisement → Online Consumer Reviews → Keputusan Pembelian 0,438 Weak Product Quality → Online Consumer Reviews → Purchase Decision Source: Data processed, 2021 Based on the table, it is found that the value of the coefficient of determination of purchasing decisions is 43.8%, the remaining 56.2% is explained by other variables not examined. The R-Square value for the purchase decision variable of 43.8% is a weak category. Hypothesis Test Hypothesis testing was conducted to determine the effect of each variable through path analysis with the help of WarpPLS 7.0 software. The Effect of Advertising on the Purchase Decision to Halal Cosmetics The results of advertising testing on purchasing decisions for the path coefficient value are positive at 0.172 with a pvalue 0.005 where the value <0.05 means significant. The results of the study found that H1 was accepted because the advertising variable had a significant and positive effect on purchasing decisions for halal cosmetics in Jabodetabek. More and more advertising information will increase consumer purchasing decisions, otherwise if the level of advertising decreases it can reduce purchasing decisions. Research results in line with previous research that advertising has an effect on purchasing decisions (Astuti, 2019; binti Rahim et al., 2015; Gustini & Istiqomah, 2021; Widyaningrum, 2018). Although these studies were conducted in different cities, THE EFFECT OF ADVERTISING AND PRODUCT QUALITY ON THE PURCHASE DECISION OF HALAL COSMETICS WITH ONLINE CONSUMER REVIEWS AS MEDIATION VARIABLES 52 they used the same research theme, namely halal cosmetics and still showed the same results. The research results are different from the research Ayuniah (2018) that advertising has no effect on Wardah cosmetic purchasing decisions on active students of the 2011-2014 class majoring in Management, Faculty of Economics, Gunadarma University in Depok, and research Septiyani & Rakhmawati (2020) stated that advertising has a negative influence on Wardah's cosmetic purchasing decisions. Figure 1. Test Results Research Source: Data processed, 2021 The Effect of Product Quality on the Purchase Decision to Halal Cosmetics The results of product quality testing on purchasing decisions for the path coefficient value is positive at 0.400 with p value < 0.001 where the value < 0.05 means significant. The results of the study found that H2 was accepted, because the product quality variable had a significant and positive effect on purchasing decisions for halal cosmetics in Jabodetabek. Good product quality will affect purchasing decisions, if halal cosmetic products have the quality that consumers expect, then consumers will be gradual with these products and make repeated purchases. Poor product quality can reduce the level of purchasing decisions. Research results in line with previous research by Eka Sri Handayani (2020) and Ayuniah (2018) concluded that product quality has a positive effect on purchasing decisions. Although these studies were conducted in different cities and subjects, they used the same research theme, namely halal cosmetics and still showed the same results. The results of the study are different from the research conducted Anggadwita et al. (2019) and Rosida (2018) that quality doesn’t affect the decision to purchase halal cosmetics, namely in public who live in several villages in Indonesia and Muslim women in West Java. More research from Septiyani & Rakhmawati (2020) shows that quality has a negative influence on Wardah cosmetic purchasing decisions. The Effect of Online Consumer Reviews on Halal Cosmetics Purchase Decisions Test result online consumer reviews on purchasing decisions for the path coefficient value are positive in 0.222 with a p value < 0.001 where the value < 0.05 means significant. The results of the study found that H3 was accepted because the variable of online consumer reviews had a significant and positive effect on purchasing decisions for halal cosmetics in Jabodetabek. Good online reviews will encourage consumers to make purchases, on the contrary if the level of online consumer reviews decreases or is Rahmawati, Fathoni 53 bad, it can affect the level of purchasing decisions. Research results in line with previous research Astuti (2019) and Lestari & Lutfitah (2020) concluded that online consumer reviews have an effect on purchasing decisions, namely on female students who use Wardah in Kebumen Regency and consumers who buy Wardah products online in Surabaya. Although these studies were conducted in different cities and indicators, they used the same research theme, namely halal cosmetics and still showed the same results. The results of the study are different from the research conducted Amin & Rachmawati (2020) explained that online consumer reviews have a negative effect on purchasing decisions on Muslim women who use Wardah in the city of Surabaya. Mediation Test The mediation test was analyzed from the value of the indirect effect and the value of the direct effect. The mediation test was assessed by its level of significance (p value). 1. The study conducted a direct effect test between exogenous and endogenous. Figure 2. Test Results Direct Effect Source: Data processed, 2021 2. The study conducted a indirect effect by adding a mediating variable among the research variables. Table 11. Results Indirect and total effects with 2 segments No Variable Indirect effects P Value Description 1 Advertisement → Online Consumer Reviews → Purchase Decision 0,048 0,161 Not significant 2 Product Quality → Online Consumer Reviews → Purchase Decision 0,096 0,023 Significant Source: Data processed, 2021 The Effect Online Consumers Reviews in Mediating Advertising and Product Quality on Halal Cosmetics Purchase Decisions The results of advertising testing on halal cosmetic purchasing decisions through online consumer reviews found that the indirect effect value decreased from the direct effect of 0.048 from 0.223 with a p-value of 0.161 > 0.05, so it was not significant. The results of the mediation are called full mediation, which means that advertisements are not able THE EFFECT OF ADVERTISING AND PRODUCT QUALITY ON THE PURCHASE DECISION OF HALAL COSMETICS WITH ONLINE CONSUMER REVIEWS AS MEDIATION VARIABLES 54 to directly influence purchasing decisions without going through online reviews, it can be seen from the direct effect value of advertising 0.223 which is smaller than product quality of 0.487. The results of testing product quality on the purchasing decisions for halal cosmetics through online consumer reviews showed that the indirect effect value decreased from the direct effect by 0.096 from 0.487 with p value of both paths <0.05, so it was significant. The result of the mediation is called partial mediation, meaning that product quality is able to directly influence purchasing decisions without going through online reviews. The results of the study found that H6 was accepted because the online consumer review variable was able to indirectly influence the relationship between advertising and product quality on purchasing decisions for halal cosmetics in Jabodetabek. The results of this study are strengthened by research Pertiwi & Pradhanawati (2020) stated that advertising and product quality affect the purchasing decisions of Wardah cosmetics for female students at the Faculty of Social and Political Sciences, Diponegoro University, and advertising and product quality have an indirect effect on purchasing decisions when mediated by brand image. The results of the study support the research opinion of Chua & Banerjee (2015) where experience on products in the form of reviews on the internet is one source of valuable data for consumers in helping make purchasing decisions. Conclusion Based on the results of the discussion on advertising and product quality on the decision to purchase halal cosmetics with online consumer reviews as a mediating variable, it is concluded that all variables have a positive and significant on the halal cosmetics purchasing decisions at male and female respondents who live in Jabodetabek. So it is concluded that in order to increase halal cosmetic manufacturers, companies need to pay attention to and maintain advertisements, and the quality of a product so that local products can be glimpsed by consumers. In addition, companies need to pay attention to online reviews from consumers both positive and negative, in order to make products better. Researchers found limitations in this study, there are other variables that affect purchasing decisions because the value coefficient determinant is low. Based on the results obtained, the researchers provide some input and considerations based on the research that has been done. For researchers who want to do research on halal cosmetics to add other variables, add a larger number of samples and a wider research location. For regulators, both the government and related institutions, to maximize the opportunities that exist in developing halal cosmetic manufacturers in Indonesia and make invitations to use local products. For business people must always maintain the quality of local products so that they are not less competitive with imported halal cosmetic products, consider appropriate advertising strategies according to Islamic law in order to influence consumers to buy cosmetic products, and pay attention to online reviews from consumers as consideration for improving quality and quality of halal cosmetic products. References Amin, M. A., & Rachmawati, L. (2020). Pengaruh Label Halal, Citra Merek, dan Online Consumer Review terhadap Keputusan Pembelian Kosmetik Wardah. Jurnal Ekonomika Dan Bisnis Islam, 3(3), 151–164. Anggadwita, G., Alamanda, D. T., & Ramadani, V. (2019). Halal Label vs Product Rahmawati, Fathoni 55 Quality in Halal Cosmetic Purchasing Decisions. IKONOMIKA, 4(2), 227–242. Astuti, L. A. (2019). Pengaruh Online Consumer Review dan Iklan terhadap Keputusan Pembelian Kosmetik Wardah dengan Citra Merek sebagai Variabel Intervening (Studi pada Mahasiswa di Kabupaten Kebumen). Ayuniah, P. (2018). Analisis Pengaruh Citra Merek, Kualitas Produk, Iklan, dan Harga Terhadap Keputusan Pembelian Produk Kosmetik Wardah (Studi Kasus pada Mahasiswi Jurusan Manajemen Fakultas Ekonomi Universitas Gunadarma yang Mengambil Kuliah di Kampus Depok). Jurnal Ilmiah Ekonomi Bisnis, 22(3). Basyarahil, M. A. (2017). Analisis Faktor-faktor yang Mempengaruhi Minat Beli Kosmetik Pria pada Mahasiswa Fakultas Ekonomi dan Bisnis Universitas Brawijaya (Studi Kasus Pada Mahasiswa S1 Prodi Ekonomi Islam Fakultas Ekonomi dan Bisnis Universitas Brawijaya). Doctoral Dissertation, Universitas Brawijaya. binti Rahim, N. F., Shafii, Z., & Shahwan, S. (2015). Awareness And Perception Of Muslim Consumers On Halal Cosmetics And Personal Care Products. International Journal of Business, Economics and Management, 2(1), 1–14. Chua, A. Y. K., & Banerjee, S. (2015). Understanding Review Helpfulness As A Function Of Reviewer Reputation, Review Rating, And Review Depth. Journal of the Association for Information Science and Technology, 66(2), 354–362. Digimind.id. (2020). Data Produk Kecantikan Terlaris Di E-Commerce. Asosiasi Digital Marketing Indonesia. Eka Sri Handayani, M. (2020). Pengaruh Harga, Kualitas Produk, Kualitas Pelayanan dan Celebrity Endorser Terhadap Keputusan Pembelian Kosmetik Halal. Universitas Muhammadiyah Surakarta. Fathoni, M. A., & Syahputri, T. (2020). Potret Industri Halal Indonesia: Peluang dan Tantangan. Jurnal Ilmiah Ekonomi Islam, 6(3), 428–435. Gustini, S., & Istiqomah. (2021). Pengaruh Iklan Dan Label Halal Produk Wardah Terhadap Keputusan Pembelian Konsumen Di Desa Bandar Jaya Kecamatan Sekayu. Adminika, 7(1), 20–39. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis Seventh Edition. Pearson. Juliarty, D. A. (2019). Perilaku Konsumsi Produk Kosmetik Di Kalangan Laki-laki UNSOED. Jurnal Interaksi, 3(12), 85–94. Khammash, M. (2008). Electronic Word-of-Mouth: Antecedents of Reading Customer Reviews in On-line Opinion Platforms: A Quantitative Study from the UK Market. IADIS International Conference WWW/Internet 2008, 77–84. Kotler, P., & Keller, K. L. (2016). Marketing Management ed 15 Global Edition. Pearson. Lee, J. E., & Watkins, B. (2016). YouTube Vloggers’ Influence on Consumer Luxury Brand Perceptions and Intentions. Journal of Business Research, 69(12), 5753– 5760. Lestari, U. P., & Lutfitah, N. H. L. (2020). Pengaruh Label Halal, Brand Image , Dan Online Customer Review Terhadap Keputusan Pembelian Produk Wardah Kosmetik Online Di Surabaya. Lupiyoadi, R. (2013). Manajemen Pemasaran Jasa Berbasis Kompetensi edisi 3. Salemba Empat. Mankiw, N. G. (2008). Principles Of Microeconomics Fifth Edition. Cengage Learning WebTutorTM. Maria, P. (2020). Pengaruh Atribut Halal Terhadap Keputusan Pembelian Kosmetik Wardah: (Survey Pada Karyawan PT. Barclay Products Jakarta). JURNAL EKONOMI, MANAJEMEN, BISNIS, DAN SOSIAL, 1(1), 40–47. Mongi, L., Mananeke, L., & Repi, A. (2014). Kualitas Produk, Strategi Promosi Dan Harga Pengaruhnya Terhadap Keputusan Pembelian Kartu Simpati Telkomsel Di THE EFFECT OF ADVERTISING AND PRODUCT QUALITY ON THE PURCHASE DECISION OF HALAL COSMETICS WITH ONLINE CONSUMER REVIEWS AS MEDIATION VARIABLES 56 Kota Manado. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 1(4). Morissan. (2010). Periklanan : Komunikasi Pemasaran Terpadu. PRENADAMEDIA GROUP. https://www.google.co.id/books/edition/Periklanan_Komunikasi_Pemasaran_T erpadu/U9xDDwAAQBAJ?hl=id&gbpv=1 Muflih, M. (2006). Perilaku konsumen dalam perspektif Ilmu Ekonomi Islam. PT. Rajagrafindo Persada. https://opac.perpusnas.go.id/DetailOpac.aspx?id=461813 Nursyamsiah, T. (2018). Potensi Pasar Kosmetika Halal di Indonesia. Sharianews.Com. https://sharianews.com/posts/potensi-pasar-kosmetika-halal- di-indonesia Peraturan.go.id. (2021). Peraturan BPOM No. 19 Tahun 2021 Tentang Pedoman Tindak Lanjut Hasil Pengawasan Obat Tradisional, Obat Kuasi, Suplemen Kesehatan dan Kosmetika. https://peraturan.go.id/peraturan/instansi.html?id=10 Pertiwi, E. S. S., & Pradhanawati, A. (2020). Pengaruh Kualitas Produk Dan Iklan Terhadap Keputusan Pembelian Kosmetik Wardah Melalui Citra Merek Sebagai Variabel Intervening (Studi Pada Mahasiswi S1 Aktif FISIP UNDIP). Jurnal Ilmu Administrasi Bisnis, 9(1), 288–297. Rosida, R. (2018). Faktor-faktor Yang Mempengaruhi Intensi Pembelian Kosmetik Halal. JEBIS (Jurnal Ekonomi Dan Bisnis Islam)| JOURNAL OF ISLAMIC ECONOMICS AND BUSINESS, 4(2), 129–140. Septiyani, R., & Rakhmawati, S. (2020). Pengaruh Citra Merek, Kualitas Produk, Persepsi Harga, Celebrity Endorser Dan Iklan Terhadap Keputusan Pembelian Kosmetik Wardah. Prosiding Seminar Nasional Indonesian R Summit, 1(1). Setiadi, N. J. (2017). Perilaku Konsumen : Perspektif Kontemporer Pada Motif, Tujuan dan Keinginan Konsumen Edisi Revisi. PrenadaMedia. http://webadmin.ipusnas.id/ipusnas/publications/books/87983 Standard, D. (2020). State Of The Global Islamic Economy Report 2020/2021 (D. I. E. D. Center & Salam Gateway (eds.)). Dinar Standard. Sugiyono. (2013). Metode Penelitian Kuantitatif, Kualitatif, dan R & D. Penerbit Alfabeta. Sukristiani, D., Hayatunnufus, H., & Yuliana, Y. (2014). Pengetahuan Tentang Kosmetika Perawatan Kulit Wajah Dan Riasan Pada Mahasiswi Jurusan Kesejahteraan Keluarga Fakultas Teknik Universitas Negeri Padang. E-Journal Home Economic and Tourism, 7(3). Widyaningrum, P. W. (2018). Pengaruh Label Halal, Asosiasi Merek, Iklan, dan Celebrity Endroser Terhadap Keputusan Pembelian (Survei pada Konsumen Wardah di Malang). Jurnal Capital, 1(2), 110–124. Yanti, N. D., & Darwanto, D. (2021). Analisis Pengaruh Labelisasi Halal dan Digital Selling Terhadap Minat Beli Kosmetik Halal. Ad-Deenar: Jurnal Ekonomi Dan Bisnis Islam, 5(01), 1–22. Zhao, X. R., Wang, L., Guo, X., & Law, R. (2015). The Influence of Online Reviews to Online Hotel Booking Intentions. International Journal of Contemporary Hospitality Management. Zuardi, M. H., & Sari, R. P. (2019). Bisnis Online Dalam Perspektif Islam. Adzkiya: Jurnal Hukum Dan Ekonomi Syariah, 4(1), 10–35. Zukhrufani, A., & Zakiy, M. (2019). The Effect Of Beauty Influencer, Lifestyle, Brand Image And Halal Labelization Towards Halal Cosmetical Purchasing Decisions. JEBIS (Jurnal Ekonomi Dan Bisnis Islam)| JOURNAL OF ISLAMIC ECONOMICS AND BUSINESS, 5(2), 168–180. Abstract Introduction Literature Review Purchase Decision Advertisement Product Quality Online Consumer Reviews Halal Cosmetics Methodology Results and Discussion Deskriptive Respondent Data Measurement Model (Outer Model) Convergent Validity Test Discriminant Validity Test Internal Consistency Reliability Test Structural Model (Inner Model) Test Hypothesis Test The Effect of Advertising on the Purchase Decision to Halal Cosmetics The Effect of Product Quality on the Purchase Decision to Halal Cosmetics The Effect of Online Consumer Reviews on Halal Cosmetics Purchase Decisions Mediation Test The Effect Online Consumers Reviews in Mediating Advertising and Product Quality on Halal Cosmetics Purchase Decisions Conclusion References