The Power of Atmosphere, Gifts, and Interaction: Exploring Hedonic Value's Mediation in Repurchase Intention for Oppo Smartphones

 

Niken Suyanti* , Budiyanto , Khuzaini

Indonesia School of Economics (STIESIA), Indonesia

Abstract:

The purpose of this study is to investigate repurchase intention among Oppo smartphone users. The aim of the findings is to reveal the extent to which store atmosphere, gift promotions, and proactive interaction marketing directly and indirectly, through the mediation of hedonic value, impact the repurchase intention of Oppo smartphone users. The study employed accidental sampling, with a sample size of 201 respondents who met the criteria of having purchased an Oppo smartphone from a brand-affiliated outlet, used the device for at least six months, and were at least 15 years old. The data was analyzed using Structural Equation Modeling (SEM). The results indicated that gift promotion and store atmosphere significantly influenced both hedonic value and repurchase intention, while proactive interaction marketing did not significantly impact either variable. Additionally, hedonic value mediated the effects of store atmosphere and gift promotion on repurchase intention but not for proactive interaction marketing.

 

The global smartphone market has experienced a consistent decline in sales since reaching its peak in 2017. In 2017, 1,595.96 million units of smartphones were sold to users globally. Subsequently, in 2018, a year-on-year decline in sales of 4% resulted in sales of only 1,526.54 million units. Furthermore, between 2017 and 2023, the smartphone sales market decreased by 16.1%, with only 1,339.51 million units of smartphones sold in the global market, as illustrated in Figure 1.

Figure 1

Smartphone Sales in Global Markets 2012-2023 (Laricchia, 2024)

     In the Indonesian market, despite the absence of a decline in the number of units sold in national smartphone sales, there has been a deceleration in the sales volume growth rate since 2017. The numerical data about smartphone sales in Indonesia from 2015 to 2023 is presented in Table 1.

Table 1

Number of Smartphone Sales in Indonesia in 2015-2023

Source: (Andalas, 2024)

     Table 1 indicates that 2017 represented the peak of national smartphone sales growth, with total sales reaching 17.1 million units, an increase of 78% from the previous year. In 2018, growth decelerated to 42%, followed by a further reduction to 17% in sales growth from 2018 to 2019. Subsequently, the period from 2022 to 2023 exhibited an 8% increase. Table 1 demonstrates that smartphone sales in Indonesia continue to rise, as the percentage of smartphone users remains at approximately 80% of the Indonesian population in 2023.

     Based on the data presented in Figure 2, it is evident that the smartphone market in Indonesia exhibits substantial growth potential. As of 2023, smartphone penetration has reached 82.84% of the Indonesian population, indicating that approximately 18% has yet to adopt smartphone technology

Figure 2

Smartphone Usage Percentage Population of Indonesia in 2012-2023 (Siahaan, 2023)

  As presented in Figure 3, Oppo led the smartphone market in Indonesia between 2019 and 2021; however, since 2019, Oppo's market share has experienced a decline, and in Q3 2020, Vivo surpassed Oppo's performance. A survey conducted in June 2022 with 100 Oppo users revealed that 72% expressed a lack of interest in repurchasing Oppo products, indicating a significant issue in the brand's repurchase intention. The global decline in smartphone sales, coupled with high ownership levels, necessitates a shift in marketing strategies that emphasize creating repurchase intentions rather than solely targeting new users (Riofita et al., 2024). Consequently, Oppo's marketing strategy, which focuses on increasing short-term sales, requires reevaluation within the context of intensifying competition and market saturation. Customer loyalty offers long-term advantages, including consistent repeat purchases, positive word-of-mouth communication, and reduced promotional expenditures (Chan et al., 2022; Nasır, n.d.).

Figure 3

Market Share of Smartphone Top 5 Brands (Riyanto & Pertiwi, 2023)

Literature Review

The store atmosphere exerts a significant influence on consumer decisions regarding outlet visitation. Most consumers prefer establishments with a favourable atmosphere (Munaro et al., 2019). The store atmosphere is crucial in attracting potential buyers, providing comfort, and serving as a reminder of desired products (Kotler & Armstrong, 2018). A well-designed store atmosphere contributes to customer satisfaction and enhances loyalty, as satisfied customers positively impact the company (Venter de Villiers et al., 2018). Babin and Attaway (2000) posited that store atmosphere affects consumers' emotional states, interest levels, satisfaction, and perceived quality, subsequently influencing repurchase intention (Kezia et al., 2023). A store atmosphere associated with a specific brand may lead to future purchases of similar products. Empirical studies (Rayburn & Voss, 2013; Simanjuntak et al., 2020; Sudaryanto et al., 2020; Tulipa et al., 2014) corroborate a significant relationship between positive store atmosphere and repurchase intention. Based on these studies, the first hypothesis is formulated as follows:

H1: Store atmosphere significantly affects Oppo smartphone repurchase intentions.

     Gift promotion aims to create added value and incentivise customers to generate short-term sales (Belch & Belch, 2018). Kotler and Armstrong (2018) emphasized that sales promotions should reinforce product positioning and establish long-term customer relationships. Cummins and Mullin (2004) noted that one of the primary objectives of sales promotion is to enhance loyalty. Peter and Olson (2010) proposed that promotions encourage consumers to maintain loyalty by offering incentives. Tjiptono (2015) asserted that sales promotions aim to stimulate repeat purchases and foster brand loyalty. Providing gifts related to additional product devices promotes loyalty by encouraging repurchases. Studies by Ji & Ha (2021), Park (2016), Lee and Yi (2017), and Lee & Yi (2019) identified a positive correlation between gift promotions and repurchase intentions. Thus, the second hypothesis is:

H2: Gift promotion significantly affects Oppo smartphone repurchase intentions.

     Proactive interaction marketing involves initiating customer engagement to cultivate loyalty (Rane et al., 2023). Loyalty programs reward customers based on their purchase history, thereby incentivizing repeat purchases (Czinkota et al., 2021). This strategy can mitigate customer attrition and create barriers for competitors attempting to acquire customers (Lee & Yi, 2017). Moreover, proactive marketing enhances customer trust by offering economic value, rewards, and incentives (Ewah, 2013). Research conducted by Chanthinok et al. (2015), Filieri and Lin (2017), and Kruger and Mostert (2014) demonstrated that proactive marketing positively influences repurchase intention. Consequently, the third hypothesis is formulated as follows:

H3: Proactive interaction marketing significantly affects Oppo smartphone repurchase intentions.

     Bakirtaş et al. (2015) elucidated that hedonic value encompasses sensory, emotional, and fantasy-related experiences during consumption. Store atmosphere enhances hedonic value by stimulating the senses, fostering comfort, and promoting extended visits (Kim et al., 2012). This atmosphere influences consumer perceptions of the store and its products (Calvo-Porral & Lévy-Mangin, 2021). An appropriate store atmosphere contributes to hedonic value, promoting repurchase intention (Ballantine et al., 2010; Sinha & Verma, 2020). The hypothesis is formulated as follows:

H4: Store sales atmosphere significantly affects Oppo smartphone repurchase intention.

     Gifts enhance purchase intention and retention, serving short-term sales and long-term loyalty (Liu & Chou, 2015; Montaner et al., 2011). Consumers evaluate the benefits and costs, and gifts increase perceived value without raising prices (Gala et al., 2024). Non-monetary promotions, such as gifts, generate emotional benefits and elicit pleasure during purchases (Andrian & Rostiani, 2021). Thus, the hypothesis is formulated as follows:

H5: Gift promotion significantly affects consumer hedonic value in Oppo smartphone products.

     Proactive marketing strategies, such as telemarketing and customer retention efforts, enhance engagement and provide hedonic value through personalized attention (Siahaan & Brina, 2024). Digital interactions contribute to sensory pleasure and emotional satisfaction, strengthening customer connections (Kwon & Jain, 2009). Consequently, the hypothesis is formulated as follows:

H6: Proactive interaction marketing significantly affects the hedonic value of Oppo smartphone products.

     Hedonic value, derived from pleasurable shopping experiences, serves as a motivator for repurchase behaviour (Kazakevičiūtė & Banytė, 2013; Nejati & Parakhodi Moghaddam, 2013). Research demonstrates a direct correlation between hedonic value and repurchase intention (Akter & Ashraf, 2016; Simanjuntak et al., 2020). Furthermore, hedonic value has been found to substantially influence repurchase intentions more than utilitarian value (Bagyarta, 2014). Based on these findings, the following hypothesis is proposed:

H7: The hedonic value associated with Oppo smartphone purchases significantly affects repurchase intentions.

     Store atmosphere significantly influences repurchase intention by enhancing the hedonic value of the shopping experience. A well-designed environment provides sensory gratification, encouraging subsequent visits (Casado-Díaz et al., 2021). Positive experiences increase customer loyalty and repurchase intention (Kim et al., 2007). Consequently, the hypothesis is formulated as follows:

H8: Store atmosphere significantly affects repurchase intention through hedonic value.

 

     The provision of complimentary items enhances the affective bond between consumers and the brand, thereby increasing the probability of repeat purchases (Gan & Wang, 2017). The unanticipated gratification derived from receiving a gift augments the overall shopping experience, fostering a desire to return (Dukes, 2019). Complimentary items also differentiate brands in a competitive market by providing emotional satisfaction (Burns, 2012). Consequently, the hypothesis is formulated as follows:

H9: Gift promotion significantly affects repurchase intention through hedonic value.

     Proactive interaction marketing, tailored to individual preferences, enhances customer engagement and hedonic value (Dwivedi et al., 2021). Personalized communications establish emotional connections, improving the shopping experience and promoting repurchase behaviour (Rane et al., 2023). Proactive marketing enhances customer satisfaction and loyalty by anticipating consumer needs (Vivek et al., 2012). Consequently, the hypothesis is formulated as follows:

H10: Proactive interaction marketing significantly affects repurchase intention through hedonic value.

Method

Ferdinand (2014) asserted that when employing SEM (structural equation model) analysis, the sample size should be 5 to 10 times the number of indicators across all research variables. This study implements a formula wherein the parameters are multiplied by 10. Accordingly, 16 indicators multiplied by 10 yields a sample size of 160 (Sukardi, 2021), as a larger sample size provides a more representative depiction of the population.

     The study employs accidental sampling conducted in person with Oppo smartphone consumers at Oppo sales outlets. Inclusion criteria for participants comprise purchasing an Oppo smartphone directly from a brand-affiliated outlet to evaluate the store atmosphere, utilizing an Oppo smartphone for a minimum of 6 months to assess proactive interaction marketing, and being at least 15 years of age to ensure adequate comprehension of the questionnaire.

     Data were collected directly in the field. While the minimum target was 160 respondents, the researchers aimed to collect a larger sample to account for potential non-responses or invalid data. During a consumer gathering in April at several Oppo outlets, 201 respondents were obtained, exceeding the target by 25%. This data collection was conducted utilizing accidental sampling of Oppo smartphone purchasers.

Result and Discussion

Most Oppo smartphone users who participated as respondents were male, comprising 105 individuals or 52.24%, while female respondents numbered 96, representing 47.76%. The predominant age group among Oppo smartphone users in the study was 20 to 30, accounting for 115 individuals or 57.21%. Additionally, respondents aged 31-40 constituted 42 individuals or 20.90%, those aged 41-50 numbered 33 individuals or 15.42%, and respondents aged 51-60 represented the smallest group with 11 individuals or 5.47%. Most respondents utilizing Oppo smartphones consisted of users who had employed the Oppo brand for 1 to 3 years, totalling 113 respondents or 56.22%. Respondents who had used Oppo for six months to 1 year numbered 44, or 21.89%. Concurrently, those who had used Oppo for more than three years also numbered 44 individuals or 21.89%. As evidenced by Table 2, all indicators demonstrate validity in measuring their respective latent variables. This validity is substantiated by the loading factor values and Average Variance Extracted (AVE) scores, which exceed .50 for all indicators.

Table 2

Result Loading Factor and Variance Extracted

Variable	Indicators/Dimensions		Loading Factor	Variance Extracted
Store atmosphere (SA)	Outside	SA1	.85	.71
	General interior	SA2	.82
	Displeasure	SA3	.85
Free gift promotion (FG)	Perceived Fit	FG1	.63	.64
	Price	FG2	.84
	Expectation	FG3	.91
Proactive interaction marketing (PI)	Express of customer need	PI1	.86	.59
	Consumer Exploration	PI2	.73
	Loyalty Program	PI3	.69
Hedonic value (HV)	New Experiences	HV1	.74	.53
	Pleasure	HV2	.75
	Social Interaction	HV3	.73
	Exploration Experience	HV4	.69
Repurchase intention (RI)	Repurchase	RI1	.78	.60
	WOM	RI2	.84
	Information Searching	RI3	.69

 

     The reliability test results of the instrument with construct reliability demonstrate that the instrument is reliable, as evidenced by the construct reliability value meeting the acceptable threshold. As presented in Table 3, all construct reliability values exceed .70, thus indicating that all indicators across all variables are reliable.

Table 3

Value Construct Reliability

   

     The test results for Goodness of Fit Indices, as elucidated in Table 4, indicate that the TLI, CFI, RSMEA, and GFI values yielded good fit results. The AGFI score demonstrated a marginal fit; however, despite this marginal outcome, Hair et al. (2019) assert that the AGFI value approximates the recommended threshold, thus warranting the continuation of the model.

Table 4

Goodness of Fit Test

Table 5

Test Results

  The data analysis results which are shown in Table 5, indicate that the store atmosphere significantly influences the hedonic value associated with purchasing Oppo smartphones. An enhanced store atmosphere elicits positive emotions, augmenting the consumer's perception of hedonic value. Establishing a more comfortable and aesthetically pleasing store environment is anticipated to evoke a positive emotional response from consumers during the purchasing process (Tulipa et al., 2014). Hedonic value encompasses multisensory, fantasy, and emotional aspects related to product experiences. It reflects the expenditure's entertainment and emotional value (Akdim et al., 2022). Creating a pleasant shopping experience through store design and atmosphere in a highly competitive smartphone industry can enhance hedonic value, foster customer loyalty, and differentiate a brand (Berman & Evans, 2014; Calvo-Porral & Lévy-Mangin, 2021).

     The results also demonstrate that gift promotions significantly influence the hedonic value of Oppo smartphone purchases. Superior complimentary items enhance the hedonic value of the purchase by meeting consumers' expectations regarding function, quality, and price. Consumers can perceive the hedonic value when they receive complimentary items, enhancing satisfaction and excitement during the purchase process (Buil et al., 2013). Offering complimentary items creates a distinctive and enjoyable shopping experience, making consumers feel rewarded and increasing their purchase's hedonic value (Chandon et al., 2000). Complimentary items that possess sensory or aesthetic value enhance the overall shopping experience. Consumers experience a sense of exclusivity or privilege when they receive a complimentary item, which increases the hedonic value as they feel recognized and appreciated (Liu & Chou, 2015).

     The study found that proactive interaction marketing has a non-significant effect on the hedonic value of Oppo smartphone purchases. Proactive marketing has not demonstrated efficacy in enhancing hedonic value. Active bidirectional communication with consumers can facilitate the creation of an emotional connection, which could potentially augment the hedonic value of the product (Cheung et al., 2020). It can also empower consumers, providing them with increased control over their shopping experience, which could enhance hedonic value. However, several factors contribute to the insignificant effect of proactive interaction marketing on hedonic value. Long-term Oppo users may be familiar with the product features and no longer benefit from proactive interaction marketing efforts. Over time, these users prioritize functional aspects such as battery life and reliability over hedonic experiences (Lee et al., 2023). Long-term users often focus on the product's practical benefits rather than emotional or experiential aspects. Consequently, proactive marketing efforts aimed at pleasure or novelty may have a diminished impact (Hollebeek et al., 2022). The result contrasts with studies that found proactive interaction marketing significantly affects hedonic value (Butcher & Chomvilailuk, 2022).

     The study also found that store atmosphere significantly influences repurchase intention for Oppo smartphones. A favourable store environment, including illumination, ambient music, and spatial arrangement, enhances consumer satisfaction and promotes repeat purchases (Situmorang & Kumar, 2022). Store atmosphere can also influence consumer perceptions of product quality. An upscale store atmosphere may lead consumers to associate the brand with high-quality products, enhancing repurchase intentions (Calvo-Porral & Lévy-Mangin, 2021). This finding aligns with previous studies demonstrating that store atmosphere significantly impacts repurchase intention (Rayburn & Voss, 2013).

     The analysis also revealed that gift promotions positively impact repurchase intention for Oppo smartphones. Consumers perceive increased value in the transaction when they receive complimentary gifts, which enhances their satisfaction and likelihood of repurchasing (Darke & Chung, 2005). Complimentary gifts also enhance perceptions of product value, encouraging repeat purchases. Positive experiences with complimentary gifts can lead to favourable word-of-mouth recommendations, further strengthening the brand's reputation and motivating others to purchase (Lee & Yi, 2019). The finding aligns with previous research, demonstrating that gift promotions influence repurchase intention (Lee & Yi, 2019).

     Proactive interaction marketing demonstrates an insignificant effect on repurchase intention, consistent with (Adekunle & Ejechi, 2018) findings. Proactive marketing may prove ineffective when it fails to adequately communicate or address consumer needs (Dwivedi et al., 2021). Younger consumers prioritize social factors, user experience, and technological innovation over proactive marketing, while older consumers emphasise trust and long-term relationships (Maulid et al., 2022).

     The study determined that hedonic value significantly affects repurchase intention. Consumers who experience high hedonic value from a smartphone product are more likely to remain loyal and make repeat purchases (Zhu & Lin, 2019). Positive emotions associated with the smartphone, from the purchase process to its utilization, foster brand loyalty and repurchase intentions (Nejati & Parakhodi Moghaddam, 2013). Consumers who experience high hedonic value from a smartphone purchase demonstrate a greater likelihood of recalling and repurchasing the product in the future. The finding aligns with research indicating that increasing hedonic value is an effective strategy for enhancing consumer satisfaction and loyalty (Bagyarta, 2014).

     The study also found that store atmosphere significantly influences repurchase intention, mediated by hedonic value. A well-designed store atmosphere, with elements such as lighting and music, enhances the hedonic value of the shopping experience, increasing repurchase intentions (Shang, 2022). Younger consumers are more attracted to engaging and innovative store elements, while women tend to focus on aesthetic and emotional details such as design and lighting. These factors contribute to a positive shopping experience, increasing repurchase intentions (Ali et al., 2022). Men, conversely, prioritize practical aspects such as efficient layouts (Ali et al., 2022).

     Through the mediation of hedonic value, gift promotions considerably impact repurchase intention. Promotions offering gifts strengthen the emotional bond between customers and the business, especially younger customers who frequently form deep emotional connections with satisfying experiences (Khamitov et al., 2019). The relationship between promotions offering gifts and the intention to repurchase is mediated by hedonic value. Gifts perceived as having hedonic value increase customer satisfaction and promote repeat business (Kim et al., 2012).

     Furthermore, the study revealed that proactive interaction marketing has a non-significant effect on repurchase intention, even when mediated by hedonic value. Users with higher education and long-term smartphone use prioritize functional benefits over hedonic pleasure, diminishing the impact of proactive marketing on repurchase intentions (Qu & Wu, 2024). Higher-educated consumers emphasise practical benefits rather than the pleasure or novelty offered by proactive marketing, which reduces the influence of hedonic value on their repurchase intention (Akdim et al., 2022).

 

Conclusion

The study investigated the impact of store atmosphere, gift promotion, and proactive interaction marketing on smartphone Oppo's hedonic value and repurchase intention. The findings reveal that store atmosphere significantly influences hedonic value and repurchase intention. A well-designed store atmosphere stimulates consumers to experience hedonic value, enhancing their overall shopping experience and increasing the likelihood of repeat purchases. Gift promotion also significantly impacts both hedonic value and repurchase intention. The quality of the gift received is positively correlated with the hedonic value experienced, leading to increased satisfaction and a higher likelihood of repeat purchases.

     Conversely, proactive interaction marketing was found to have a non-significant impact on both hedonic value and repurchase intention. Excessive proactive interaction can lead to information overload, diminishing the enjoyable experience. Additionally, hedonic value was found to significantly influence repurchase intention, as consumers who experience high hedonic value are more likely to make repeat purchases. The mediation effect of hedonic value was observed in the in-store atmosphere and gift promotion, indicating that these elements enhance the hedonic experience, increasing satisfaction and repeat purchase intentions. Overall, the study emphasizes the importance of store atmosphere and gift promotion in enhancing hedonic value and repurchase intention for smartphone Oppo.

Implication

Theoretically, this study reveals a significant influence of hedonic value on repurchase intention, aligning with existing theories on consumer behaviour. The findings support the importance of emotional and experiential aspects in shaping purchasing decisions. The positive effect of store atmosphere on hedonic value reinforces the Theory of Reasoned Action (TRA) and Theory of Planned Behaviour (TPB), which posits that behaviour is influenced by subjective attitudes, norms, and perceived control (Ajzen, 1991; Nickerson, 2023). A positive hedonic value for smartphone users leads to more favourable attitudes toward the brand (Chatzoglou et al., 2022). The positive influence of gift promotions and proactive interaction on hedonic value strengthens consumer behaviour theory, highlighting how promotions and positive experiences drive purchase decisions and brand loyalty (Catic & Poturak, 2022; McGoey, 2016).

     From a practical perspective, Oppo vendors can enhance their marketing strategies by creating attractive store atmospheres, offering relevant gifts, and utilizing customer data for personalized interactions. A well-designed store environment and appropriate gifts can increase product appeal, customer satisfaction, and the likelihood of repurchase. Personalized recommendations and proactive engagement through multiple channels can foster stronger customer relationships and drive repeat purchases.

 

Suggestions for Future Research

It is necessary to expand the sample size and scope of the survey to encompass additional factors that may influence the repurchase intention of Oppo smartphones. Subsequent research should also consider the impact of various models on consumer behaviour, particularly for high-technology products such as Oppo smartphones. It would be advantageous to develop a research model that integrates consumer behaviour in the context of technology utilization. Incorporating the Technology Acceptance Model (TAM) could provide a more comprehensive analysis from consumers' perspectives as advanced technology users.

 

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