Moderating role of customer value on the effect of animosity, ethnocentrism and religiosity toward purchase decision: study on Chinese cosmetic

Purpose – This study aims to examine the moderating role of customer value on the relationship between animosity, ethnocentrism, and religiosity on purchasing decisions of Chinese brand cosmetics. Design/methodology/approach – This study used a quantitative research design. Selected 150 millennial in the city of Semarang as samples was taken using the purposive sampling technique. The data were analyzed using a moderated PLS-SEM. Findings – The results showed that hostility, ethnocentrism, and religiosity had a negative and significant effect on purchasing decisions. The study also found that customer value actually becomes a moderator that can weaken the relationship between these three variables on purchasing decisions. Research limitations/implications – Data were collected from millennial in the city of Semarang. This condition causes limitations as it may not capture reflections from other age groups that are different from the sample. Thus, further marketing studies are needed with comprehensive respondent characteristics, increasing the number of samples, and including other moderating variables such as the level of customer trust. Practical implications – The empirical findings of the current study help international businesses in understanding negative factors as antecedents of purchase decisions. This will be useful in planning marketing activities and efforts to increase market share. In addition, managers can consider the customer value to gain the trust of customers. Originality – The study on the negative influence of animosity, ethnocentrism, and religiosity on purchase decisions in Indonesia is very limited. This study focuses on explaining the importance of customer value as a moderating factor, in anticipation of the negative relationship. This study contributes to multinational companies understanding the consumer purchase decision.


Introduction
In Globalization, international trade is a common thing to do (Kristjánsdóttir et al., 2017), which gives customers the choice of domestic and foreign purchases (Nadiri & Tümer, 2010). This phenomenon is certainly a special concern for business people, especially for those who want to This study focused on Indonesia whereas a multi-cultural, multi-religious, and multiethnic country with a large population makes it interesting to study compared to other countries with large Muslim populations (Kusumawardhini et al., 2016). Objectively, this study aims to analyze the direct effect of animosity, ethnocentrism and religiosity toward purchase decision. The next objective is to describe the moderating role of customer value on the relationships between animosity, ethnocentrism, and religiosity on the consumer purchase decisions. The novelty of this research is the use of customer value to anticipate the negative effect between animosity, ethnocentrism, and religiosity on consumer purchase decisions. This research is expected to contribute to the development of marketing management science, especially consumer behavior. In addition, this research is expected to have managerial implications for Indonesian e-commerce players, especially in cosmetic products.

Literature Review and Hypotheses The Relationship Animosity and Purchase Decision
Consumer animosity represents discomfort with foreign goods, services and brands originating in countries where there is some kind of conflict; In this way, a better understanding of consumer behavior with respect to hostilities between countries is sought (Areiza-Padilla, 2021). The animosity is so widespread that its have been adapted to many areas, including the marketing sector. So that it should not be ignored the negative effect on consumer animosity on consumer buying behavior (Farah & Mehdi, 2021).
Several studies have determined the role of animosity in influencing the use of country of origin in product or service evaluation (Li et al., 2012), that state although animosity does not affect customer perceptions, this trait affects them in deciding a product. This is because consumers sometimes put forward the ego in making a purchase. In addition, many studies have established a strong relationship between animosity toward consumer buying behavior on products produced by conflicting nations (Haque et al., 2011;Huang et al., 2020;Klein et al., 1998). Result of Renko et al. (2012) indicates that consumer's ethnocentric tendency negatively related with intention to purchase foreign products form former European Union and Yugoslavia. Furthermore, Souiden et al. (2018) explain that Chinese animosity toward Taiwan has a significant negative effect on the perceived quality and purchase intention of Taiwanese brands. Previous study by Siahaan et al. (2021) on users and potential car buyers show that animosity has a significant negative effect on willingness to buy Chinese car products. Another study by Pratiwi et al. (2021) concludes that animosity has significant influence toward boycott French product. Based on this argument, the hypotheses 1 can be stated: H1: Animosity has a negative effect on purchasing decision

The Relationship Ethnocentrism and Purchase Decision
Since Shimp & Sharma (1987) developed the concept of the Consumer Ethnocentric Tendencies Scale (CETSCALE) to measure ethnocentrism, many studies have shown a significant relationship between ethnocentrism and consumer buying behavior (Nadiri & Tümer, 2010;Saffu et al., 2010;Sharma, 2015;Vuong & Khanh Giao, 2020;Yoo & Donthu, 2005). High ethnocentric consumers tend to avoid foreign products. Someone with ethnocentrism coupled with a high sense of hostility has a major influence on consumer buying behavior for foreign products (Arslandere & Yusuf, 2020;Güneren & Öztüren, 2008). Result study of Nagoya et al. (2021) show ethnocentrism have negatively effect toward purchase intention of Chinese smartphone in female or male. Based on these arguments, the hypotheses that can be put forward are: H2: Ethnocentrism has a negative effect on purchasing decision.

The Relationship Religiosity and Purchase Decision
Religiosity has a strong and clear relationship with consumer behavior, namely changing from loyalty to purchasing decisions in the form of boycotting international brands (Al-Hyari et al., 2012). Boycott foreign products from countries of origin with different religions or beliefs are becoming increasingly common among Muslim consumers (Sari et al., 2017). . Ahmed et al. (2013) by studying the relationship between consumer religiosity and American product decision making have suggested that religiosity should be used as an important construct in understanding consumer buying patterns in Malaysia. Wang et al. (2020) in their research in China concluded that religiosity is strongly related to consumer buying behavior and decisions. According to Choi (2010), religiosity has a strong influence not only on consumption patterns but also on purchasing behavior and consumer product preferences. A study by Riptiono & Wiwoho (2019) shows that religion and consumer religiosity in a country like Indonesia affect consumer buying interest in foreign and domestic products. Furthermore, a research by Muhamad et al. (2019) on Malaysian Muslim consumers shows that the intrinsic motivation of religiosity indirectly contributes negatively to the intention to boycott US fast-food because the US supports Israel. Based on this evidence, the hypotheses that can be concluded are: H3: Religiosity has a negative effect on purchasing decision.

The Relationship Customer Value and Purchase Decision
According to Cheah et al. (2016), there is a direct relationship between consumer product ratings and their buying behavior. Consumers often judge foreign products based on their perceptions which are influenced by several factors outside of the product (Nguyen et al., 2008). Mainolfi & Resciniti (2018) have shown that product appraisal plays an important role in influencing the buying behavior of foreign products in a certain cultural context as evidenced by their study for Moroccan citizens whether or not to buy halal food products from non-Muslim countries. A study by Ettenson & Klein (2005) shows that product appraisal is a predictor of prior buying behavior. However, a later study by Smith & Li (2010) on the boycott of Japanese products by Chinese consumers showed that product ratings were related to willingness to participate in product boycotts. Based on these arguments, the hypotheses that can be concluded are: H4: Customer value has a positive effect on purchase decision. Nguyen et al. (2008), based on their research, stated that some consumers use customer value in determining purchases so as not to make animosity a barrier. Meanwhile, research by Gupta & Singh (2019) in India found that although many people opposed China's political policies, economically it did not influence purchasing decisions, because it was based on the needs and value of Chinese goods. Tabassi et al. (2012) explain that customer value causes a reduced sense of ethnocentrism in foreign products because these products provide perceived value. Similar results have been observed by Rose et al. (2009) that Arab Muslim attitudes towards Israel products. Vuong & Khanh Giao (2020) on study indicated that international brands reduce ethnocentrism and provide consumer buying opportunities, which are presented by their prestige value and quality. Aziz et al. (2015) explain that the benefits of product quality received by customers are able to moderate the relationship between religiosity and purchase decisions. Products with high quality can shake the customer's intention to buy a product which in this case the religiosity factor has been included in it. Meanwhile, on the contrary, low quality tends to lead customers to leave the product. Meanwhile, study by Kusumawardhini et al. (2016) suggests that religiosity has an insignificant impact on purchasing decisions due to the realistic factor of Indonesians in buying a product, which is more concerned with the benefits of the product and not too concerned about the origin of the product. Based on the arguments, hypotheses are proposed: H5: Customer value moderates the relation between animosity and purchase decision. H6: Customer value moderates the relation between ethnocentrism and purchase decision. H7: Customer value moderates the relation between religiosity and purchase decision.

The Moderating Role of Customer Value
Based on the arguments presented in the literature review, path model diagram of the proposed research framework can be described in Figure 1.

Sample
This study was designed as quantitative research, which aims to test the theory of consumer's behavior in marketing management. The population is all Chinese cosmetic consumers in Semarang. The number of samples was calculated using the Lameshow formula (Lwanga et al., 1991;Suryani, 2015), because the total population was unknown, and that 150 respondents were obtained. The samples were carried out by quota sampling.

Measures
This present study uses three antecedent variables, namely, animosity, ethnocentrism, and religiosity; one consequent variable is purchase decision; and customer value as a moderator variable. The research instrument in data collection was developed from relevant previous studies. Animosity is a residual antipathy related to previous events, as measured refer to Klein et al. (1998;Fakharmanesh & Miyandehi, 2013) with three indicators: threats, injustice, and cultural differences. Ethnocentrism is consumer beliefs about attitudes and morals in providing foreign products, which is compiled with five indicators, refer to Shimp & Sharma (1987;Siamagka & Balabanis, 2015) that consists of: proportionality, cognition, reflective insecurity, and habituation. Religiosity is defined as the level of consumers' conception and commitment to their religion, refer to study of Shah et al. (2019;Adriani & Ma'ruf, 2020), with five indicators: belief, religious practice, appreciation, religious knowledge, and practice. Customer value is the difference between a prospect's assessment of all the benefits and costs of an offering against the alternative, with six indicators: product benefits, services, personnel, image, monetary costs, and time costs (Demirgünescedil, 2015;Morar, 2013;Thielemann et al., 2018). Finally, the purchase decision is the stage of the purchasing decision process, as measured with three indicators: stability, habit, and speed of buying a product (Leonandri et al., 2021).
The research instrument was arranged in the closed questions, ask the respondents' statement. Respondents' answers all statements on a five-choice Likert scale, ranging from 1 (strongly disagree), 2 (Disagree), 3 (Neutral), 4 (Agree), and 5 (strongly agree). The questionnaire was distributed among respondent using a Google form, during January to February 2021.

Data Analysis
The collected data were analyzed using Partial Least Square Structural Equation Modeling (Sholihin & Ratmono, 2021). The first analysis is called the confirmatory factor analysis, which aims to measure the influence of each indicator on the latent variables in the validity and reliability test. Furthermore, the structural model was carried out to measure the correlation between latent variables and the suitability of the structural modeling with the research data. Latent moderated structural equations analysis (Schermelleh-Engel et al., 2017) was used to analysis the final data, which in the equation involves elements of interaction between independent and moderating variable (Maslowsky et al., 2015). Tree step or model were used to examine the moderating role (Hayes, 2017;Kenny & Judd, 1984;Lux et al., 2020). In model 1, factor variables were entered in the model. Model 2, moderating variable was entered in the model equation. Thus, in model 3, included the interaction variables in the model equation. All equaitons can be described as below: Testing the role of moderating variables in this study using WarpPLS 7.0 software, to estimate the parameters of the interaction model. Data supporting the fit model will be evaluated on the results of Average path coefficient (APC), Average R-squared (ARS), Average adjusted Rsquared (AARS), Average block VIF (AVIF), Average full collinearity VIF (AFVIF), and Tenenhaus GoF (GoF) (Kock, 2020).

Respondent Characteristic
Respondents of this study were taken from 150 millennial in Semarang. Questionnaires were distributed online to respondents via Google Forms. Table 1 presents data on the characteristics of respondents showing that by gender the majority are women (93.3%); the majority of respondents are in the age group of 20-25 years (73.3%); the education level of the majority is high school graduates (50%), and the majority are Muslim (85.3%). In general, most of the respondents is working (91.3%), and have experience knowing or using Chinese's cosmetics (46.7%).

Confirmatory Factor Analysis
This research model has passed two stages of feasibility testing of the PLS-SEM model, namely confirmatory factor analysis and interaction moderated regression analysis. Table 2 shows a confirmation test where there is one loading factor of indicator below 0.5, namely ethno3 so that the indicator cannot be used to measure ethnocentrism. Other indicators have loading factors above 0.5 which can be used for further analysis. Table 2 also shows that although there are several the average variance extract (AVE) values < 0.50, the composite reliability (CR) and Cronbach Alfa values show a fairly high number > 0.70. Even though AVE value is below the minimum threshold of 0.5, referring to the study of Lam (2012;Ingle & Mahesh (2020), this is still acceptable because CR is higher than 0.7. So, it can be concluded that the feasibility test data is valid and reliable. The collinearity indicated by the Variance Inflation Factor (VIF) must be below the cutoff point <5. As illustrated in Table 3, the full collinearity values for all first-order constructs are below 5, and thus discriminant validity is well established. Another result shows the value of the square root of the Average Variances Extracted (AVE) variable animosity, ethnocentrism, religiosity, customer value and purchase decision are all above 0.7. Further results show that the square root of AVE is greater than the intercorrelation between variables, which indicates that each variable has a good discriminant.
Another way to test discriminant validity is to assess it from cross-loading measurements with constructs. Table 4 explains that the model has met discriminant validity, namely the latent construct loading value which will predict the indicator is higher than other constructs.

Moderated Structural Equation Model
The current study uses a latent moderated structural equations approach to maintain sample integrity and provide a basis for controlling the effect of moderating variables by comparing the results of three regression equations. The first regression is to estimate the structural model without moderating variables, resulting in model 1 which is the main effect of the three independent variables on the dependent variable. The second model is a continuation of the regression by including moderating variables. The results of model fit can be presented in Table  5. The structural model generates a sufficient fit index, with value of APC=0.213,p<0.01; ARS=0.342,p<0.001; AARS= 0.324,p<0.001; AVIF = 1.237<3.3; AFVIF = 1.237<3.3; and Tenenhaus GoF = 0.420>0.36. All indexes have met the criteria, and the model can be accepted. The third model is estimating the structural model by involving the interaction variables. Table 6 presents the all-result calculation of tree models for hypotheses testing. The results showed that the three variables had a negative influence on purchasing decisions, with animosity, ethnocentrism and religiosity have significantly at probability <0.001. Based on these results, H1, H2, and H3 are accepted. The results of model 2 show that customer value has a significant positive effect on purchase decisions so H4 is accepted. The model 3 show that the interaction between animosity, ethnocentrism and religiosity with customer value have a significant effect on the purchase decision (p<0.05), therefore H5, H6 and H7 is accepted.  Figure 2 illustrates the interaction pattern from WarpPLS software, showing how the relationship between Animosity, Ethnocentrism and Religiosity with Purchase Decision changes at all levels in the direction predicted by the hypothesis.

Discussion
The current research tested the moderating effect of customer value on relationship of the animosity, ethnocentrism, religiosity, and purchase decision. The result shows that H1 was accepted that animosity has a negative effect on purchasing decisions. This indicates that when animosity increases, purchasing decisions will decrease. The increase in threats to domestic goods, social and political injustice, as well as cultural differences between the two countries, can reduce the decision to purchase cosmetic products from China. The results of this study are in line with several previous research that animosity affects customer perceptions by prioritizing ego and feelings compared to the quality of the goods (Haque et al., 2011;Klein et al., 1998;Li et al., 2012). These results also strengthen the research findings presented by Huang et al. (2020) that consumer animosity is a factor that is clearly related to consumer behavior. Animosity or negative attitude between countries causes a decrease in consumers' willingness to buy foreign-based products. Although Indonesian consumers are rationally attracted to Chinese cosmetic products, they are emotionally unwilling to make purchasing decisions. This is related to China's frequent violation of maritime boundaries, especially related to disputes over the Natuna Sea Exclusive Economic Zone. Another cause of animosity is the continued arrival of foreign workers from China, at a time when many Indonesians are unemployed.
The results support H2, meaning that ethnocentrism does have a negatif effect on purchase decision of Chinese cosmetics product, were the higher the ethnocentrism, the lower respondent's purchase decision. While the result is inline from Arslandere & Yusuf (2020) finding that someone with high ethnocentrism coupled with high feelings of animosity can also have a large effect on consumer buying behavior towards foreign products. The result is consistent with prior studies, which have found that relationship of ethnocentrism and purchase decision is negatif (Saffu et al., 2010;Sharma, 2015;Vuong & Khanh Giao, 2020). The finding conform with Güneren & Öztüren (2008) based on empirical investigation stated that consumers who are ethnocentric are more likely to buy domestic products. This study in line with Nadir & Tümer (2010), consumer ethnocentrism has been shown to be positively related to the intention to buy domestically produced goods, while avoiding foreign products. Current study also supported Nagoya et al. (2021) that concluded ethnocentrism has negative influence on purchase intention of Chinese product. The negative effect of high ethnocentrism is that consumers are more likely to decide to buy domestic brands than Chinese cosmetics such as Perfect Diary Beauty. Consumers believe that some of the profits of producers will be returned to the community in the form of corporate social responsibility. In addition, it also creates job opportunities for Indonesian workers.
Similarly, the study found there is a negatif and significant effect between religiosity toward purchase decision and H3 is accepted. This study confirms the findings of Odeh & Hamad (2015) where the research results demonstrated there is a strong and significant inverse relationship between religiosity and intention to buy foreign-made products This result is conform with the several studies (Choi, 2010;Riptiono & Wiwoho, 2019), meaning that the consumer religiosity has influence on purchase behavior or product preferences. This also conform to the finding of Amalia et al. (2020) that Muslim millennial consumers who are religious can independently influence buying behavior. This study is in line with the results of Adriani & Ma'ruf (2020;Bukhari et al. 2020), that there is a direct relationship between religiosity on the purchase attitude and intention. This finding rejects previous finding by Kusumawardhini et al. (2016) that the impact of religiosity on purchase intention is non-significant. The high religiosity makes consumers not necessarily convinced of the halal on cosmetic products from China. Consumers prefer to purchase cosmetics produced by Muslim entrepreneurs.
The results of H4 showed that customer value have positively direct effect with purchase decision, which states that when customer value increases, purchasing decisions will increase. an increase in product benefits, service benefits, personnel benefits, image benefits and monetary costs and time costs can improve purchasing decisions of cosmetic products from China. Chinese cosmetic products can be found easily in the market, both in supermarkets, cosmetic stores, minimarkets, and even grocery stores are also available. In addition, many respondents are lured by prices that tend to be cheap, especially for millennial pockets, so these two factors trigger some respondents to buy. This inline with Woodruff (1997) that state competition based on customer value is a major change in managerial practice to compete in the global era in order to maintain a competitive advantage. This finding supports Kumar & Reinartz (2016) that marketing needs to create and communicate value to customers to drive satisfaction, loyalty, and profitability.
Moreover, according to the interaction moderation model, customer value was significantly moderated the relationship of animosity and purchase decision and H5 is accepted. The increase in the value of Chinese cosmetic products, especially monetary costs and physical costs, can weaken the relationship between enthusiasm and purchasing decisions. Thus, the results of this study support previous which both researched products from China where the price and ease of access factors managed to moderate enthusiasm for purchasing decisions (Gupta & Singh, 2019;Nguyen et al., 2008). In consumers with a high level of animosity, the benefits of the product contribute to anticipating its negative influence on the consumer's intention and decision to buy the product. This is supported by more competitive prices, making consumers gradually switch to Chinese cosmetic products.
The results stated that H6 is accepted, which means that customer value plays a role in moderating the relationship between ethnocentrism and purchasing decisions. The higher the value of Chinese cosmetic products, especially the monetary and physical costs, can reduce the impact of ethnocentrism on purchasing decisions. Thus, the results of this study support previous research that animosity and consumer ethnocentrism lead to a decrease in the desire to purchase decision another country's products (Rose et al., 2009;Vuong & Khanh Giao, 2020). High consumer ethnocentrism tends to emphasize the positive aspects of domestic products more than the superiority of foreign products. Reluctance to buy foreign products is basically relative, fluctuating according to socio-political conditions. By communicating the value information of the benefits of Chinese cosmetics brands, this condition can be reduced.
Finally, the results support H7, meaning that customer value does have a moderating role the relationship of religiosity with purchase decision. With these results, it strengthens previous research from Aziz et al. (2015) in their research in Malaysia explaining that the benefits of product quality received by customers are able to moderate the relationship between religiosity and purchasing decisions. However, this finding also rejects previous research from Kusumawardhini et al. (2016) about his research which states that religiosity has no moderated between religiosity and purchasing decisions. Religiosity has proven to be a major factor in the acceptance and rejection of foreign products. High religiosity consumers are approached by marketers with highlighting the advantages of their products, friendly prices, and supported by good customer service. This will make the acceptance of Chinese cosmetic products increase.

Conclusion
Based on the research and discussion that has been carried out, it is proven that there is a role for customer value in moderating the relationship between animosity, ethnocentrism, and millennial religiosity in Semarang on purchasing decisions for cosmetic products made in China. The contribution of current study is to test how customer value can be anticipating the negative effect of animosity, ethnocentrism, and millennial religiosity on purchase decision.
Although this study tries its best to cover all aspects related to the proposed model, there are some limitations, among which the sample is only millennial in Semarang City. To fully understand the influence of animosity, ethnocentrism, and religiosity on purchasing decisions universally, multi-regional and multi-generational research is necessary. In addition, current study is focused on cosmetic products from Chinese. Therefore, future research needs to examine another Chinese product as focus study.