The Influence Of The E-WOM, E-Trust, and E-Service on Purchase Decision

(Study on TikTokShop Marketplace Users in West Jakarta)

 

Agus Sriyanto

Universitas Budi luhur, South Jakarta, DKI Jakarta, Indonesia

Email: [email protected]

Keywords

 

ABSTRACT

E-WOM, E-Trust, E-Service, Purchase Decisions.

 

The research aimed to investigate the influence of E-WOM, E-Trust, and E-Service on purchase decisions among active users of the TikTokShop marketplace in West Jakarta. These variables were chosen due to their critical roles in shaping consumer behavior and influencing purchasing decisions in online market contexts. E-WOM (Electronic Word of Mouth) reflects the power of recommendations and reviews from peers and online communities, which are crucial factors in modern consumer decision-making processes. E-Trust (Electronic Trust) is fundamental in establishing and maintaining relationships between consumers and online platforms, influencing user confidence in the platform's reliability, security, and credibility. E-Service (Electronic Service) directly impacts user experience and satisfaction within online marketplaces, as the quality of service provided significantly influences consumer perceptions and purchasing decisions. By examining the dynamics of E-WOM, E-Trust, and E-Service within the TikTokShop market context, the research aims to provide insights that can inform strategies to enhance user engagement, trust, and ultimately drive purchase decisions on the platform.

 

 

 

INTRODUCTION

One of the marketplaces that is increasingly popular today is TikTokShop. TikTokShop is a marketplace connected to the TikTok social media application. Tiktok itself was initially a social media platform that provided space for its users to create, disseminate, and watch short videos or commonly referred to as content (Rochman & Kusumawati, 2023; Rosiyana et al., 2021; Solikah & Kusumaningtyas, 2022). This application was released in 2016 and received rave reviews, especially among teenagers to become a very popular application to this day. Based on Business of Apps data, Tiktok had 1.6 billion monthly active users worldwide in the fourth quarter of 2022. This figure shows a rapid increase from the previous year.

The COVID-19 pandemic period has become one of the most impactful on the use and popularity of Tiktok. The large number of people who were laid off during the pandemic made their movements limited. In this condition, various ways they do to be able to spend their time at home, one of which is by looking for entertainment via the Tiktok application. With this application they can pour their creativity by making fun videos, dancing, or other interesting content. Apart from being an entertainment medium, Tiktok can also be a medium for disseminating information related to COVID-19 at that time. Many of its users use the TikTok application to provide health tips, facts about viruses, and other essential messages to fellow users. This is what makes the Tiktok application experience an increase in popularity. Digital marketing strategies must always be considered in this digital era because they greatly influence consumer purchasing decisions (Jain & Yadav, 2017; Mican & Sitar-Taut, 2020; Pasha et al., 2020).

According to Petcharat (2021), purchasing decision is a process where consumers recognize the problem, find information about specific products or brands and evaluate well each alternative can solve the problem, which then leads to a purchase decision. E-WOM (Electronic Word of Mouth), E-Trust, and E-Service usually influence the decision to purchase a product online. E-WOM (Electronic Word of Mouth) is the process of disseminating information, reviews, arguments, and consumer recommendations on products, brands, and services shared through digital media such as social media applications, web networking sites, online discussion forums, or E-Commerce platforms (Agag et al., 2024; Jeljeli et al., 2022; Kumar et al., 2023; Yang & Ha, 2023; Zhao et al., 2020).

In this digital era, E-WOM is one of the essential things for consumers to share information about their experiences, especially in terms of online shopping. The existence of E-WOM can be a driving factor that influences purchasing decision-making. E-WOM has a significant influence on consumer purchasing decisions (Hana & Miranti, 2021; Kartono & Halilah, 2019; Mican & Sitar-Taut, 2020; Setiawan & Hamdi, 2022). The existence of E-WOM can create consumer trust in a product or brand. Before making a purchase decision, consumers will observe and look for reviews or recommendations from others. They will be more confident in a product if they find many positive reviews about related products. In addition, with E-WOM, consumers will undoubtedly receive more information about the products they are interested in. This is very helpful for consumers to make more informed decisions. Most beneficially, E-WOM has a robust social influence (Gregory et al., 2019; Kartika & Ganarsih, 2019; Konhäusner et al., 2021; Kusnanto et al., 2020; Rajapaksha & Dk, 2019). Many positive reviews or recommendations from many parties can foster the trust of a group.

Another factor influencing consumers' purchasing decisions in online shopping is E-Trust. E-trust is something that leads to a level of trust between customers and brands or companies through electronic media. Electronic trust or E-Trust is essential in digital technology, including digital marketing. The high level of trust allows customers to feel safe, comfortable, and confident in transacting online (Dong et al., 2024; Pang et al., 2024; Suva, 2021; Wong, 2017). So they don't hesitate to go back and make a purchase decision. E-Trust can be seen from the ratin of product sales, the higher the rating of a product, it can be said that many people believe or believe in the product. Seeing a high product rating will certainly slightly reduce their anxiety about shopping online to make a purchase decision (Al-Adwan et al., 2022; Nawres et al., 2024).

In addition to E-WOM and E-Trust, E-Service is another factor that influences purchasing decisions in the marketplace. E-Service is a service a brand or company provides through digital media. E-Service includes online customer service, online purchase process, product delivery, and communication between sellers and buyers via the marketplace. A company or brand needs to continue improving its services digitally to attract consumers and create sales. The most essential thing in electronic services, called E-Service in the marketplace, is a quick response to customer chats.

 

METHODS

Population

The population in this study is TikTokShop marketplace users in West Jakarta. This population includes individuals with experience interacting with E-WOM, E-Trust, and E-Service in digital business. The standard population in this study is consumers who are active in using social media or digital platforms, have a history of purchasing products or services online, and have adequate internet access.

Sample

The criteria used in sampling are people in West Jakarta who are TikTokShop marketplace users and have made transactions (Nugroho, 2005). Because the population size in this study is not known with certainty, the authors used the Lemeshow Formula to determine the size of this sample. The Lemeshow formula is as follows:

 

Information:

n = number of samples

z = z score at 95% confidence = 1.96

p = maximum estimate = 0.5

d = sampling error = 10%

Through the formula above, it can be calculated the number of samples to be used as follows:      

 

                     

 

                     

                                                                                                                            

Using the Lemeshow Formula above, the sample value (n) obtained is 96.04. To get accurate results, the sample taken in this study was divided into 100 respondents.

Research Model

This study used multiple linear regression analysis techniques because it has more than one independent variable. Multiple linear regression equation models were used to test hypotheses regarding the influence of E-WOM (X1), E-Trust (X2), E-Service (X3), and Purchase Decision (Y). Analysis of the regression line equation is to determine the influence of variable X as an independent variable (free) with variable Y as the dependent variable (bound). Regression analysis aims to (i) determine the magnitude of the quantitative influence of X changes on Y changes, whether positive or negative and (ii) estimate or forecast the value of Y if the X variable that correlates with Y increases or decreases, Priyatno (2017), while correlation aims to determine the relationship of variable X to Y. The regression equation used in this study is:  Y = a + β1 X1 + β2 X2 + β3 X3 + ε

Information:

Y = Purchase Decision A = Constant

β1, ..... , β3 = Regression coefficient of each variable X1 = E-WOM

X2 = E-Trust

X3 = E-Service

ε = Error

 

RESULTS

Normality Test

According to Santoso (2018), the normality test is carried out to determine whether the resulting error has a normal distribution in a regression model. The basis for decision making to detect normality is that if the data spreads around the diagonal line and follows the diagonal direction, then the regression model meets the normality assumption and can also be seen from the customarily distributed digram graph (Priyatno, 2017).

Multicollinearity Test

The method of decision making is that if the smaller the Tolerance  value and the greater the VIF value, the closer the multicollinearity problem will occur. Most studies stated that if the tolerance is more than 0.1 and VIF is less than 10, multicollinearity does not occur.

 

Table 1. Regression

Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

B

Std. Error

Beta

1

(Constant)

1,893

1,578

 

1,200

,233

E-Wom

,413

,068

,439

6,115

,000

E-Trust

,297

,081

,299

3,673

,000

E-Seevice

,233

,085

,234

2,738

,007

a. Dependent Variable: Puchace Decision

Source: SPSS 25 data processing results

 

From the results above, it can be known that the value of the Variance Inflation Factor (VIF) of each variable, namely the E-WOM  variable, is 1.931, the E-Trust variable is 2.491, and the E-Service variable is 2.734. All three have a Tolerance of more than 0.1 and VIF of less than 10; it can be concluded that for the variables E-WOM, E-Trust, and E-Service, No multicollinearity problems occur.

Heteroscedasticity Test

According to Santoso (2018), test heteroscedasticity is Used To find out whether, in a regression model, there is an inequality of variance in residuals (error). If the variance of the residual from one observation to another is fixed, it is called homoscedasticity. If the variance is different, it is referred to as heteroscedasticity. A regression model is said to be good if heteroscedasticity does not occur. The basis for decision making the presence or absence of heteroscedasticity:

1.     Heteroscedasticity occurs if the points at the output form a specific regular pattern.

2.     Text Box: Buying decision

If the points in the output do not form a specific orderly pattern, heteroscedasticity does not occur.

Source: SPSS 25 data processing results

Figure 1. Scatterplot Chart

 

Figure 2. above shows the spread of data points as follows:

1.     The data points spread above and below or around the number 0.

2.     Data points don't clump together just above and below them.

3.     Unpatterned spread of data points

So it can be concluded that the independent variable is free from the classical assumption of heteroscedasticity and is worthy of use in research.

Correlation Test

Correlation analysis determines the linear closeness of the relationship between two variables (Priyatno, 2017).

 

Table 2. Correlation Test Correlations

 

E-WOM

 

E-Trust

 

E-Service

Purchasing Decision

E-WOM

Pearson Correlation

1

,628**

,669**

,783**

Sig. (2-tailed)

 

,000

,000

,000

N

100

100

100

100

E-Trust

Pearson Correlation

,628**

1

,756**

,751**

Sig. (2-tailed)

,000

 

,000

,000

N

100

100

100

100

E-Service

Pearson Correlation

,669**

,756**

1

,753**

Sig. (2-tailed)

,000

,000

 

,000

N

100

100

100

100

Purchasing Decision

Pearson Correlation

,783**

,751**

,753**

1

Sig. (2-tailed)

,000

,000

,000

 

N

100

100

100

100

**. Correlation is significant at the 0.01 level (2-tailed).

Source : SPSS 25 data processing results

 

 

Table 3. Correlation Level Table

Coefficient Interval

Relationship Level

0,80 – 1,000

Very Powerful

0,60 – 0,799

Strong

0,40 – 0,599

Strong enough

0,20 – 0,399

Low

0,00 – 0,199

Very Low

Source: Riduwan and Engkos Achmad Kuncoro (2013)

 

Furthermore, we can see the relationship between the variables E-WOM (X1), E-Trust (X2), and E-Service (X3) to purchasing decisions (Y). Based on Table 3. above, the description of the output regarding correlation, it can be interpreted as follows:

E-WOM Variable (X1) with Purchase Decision (Y) : (r = 0.783 : Sig = 0.000)

Based on Table 3. showing the relationship between the E-WOM  variable and purchasing decision of 0.783, it can be concluded that the magnitude of the relationship between E-WOM and purchasing decision shows a strong correlation.

E-Trust Variable (X2) with Purchase Decision (Y) : (r = 0.751 : Sig = 0.000)

Based on Table 3, which shows the relationship between the E-Trust variable and the purchase decision of 0.751, it can be concluded that the magnitude of the relationship between E-Trust and the purchase decision shows a strong correlation.

E-Service Variable (X3) with Purchase Decision (Y) : (r = 0.753 : Sig = 0.000)

Based on Table 3, which shows the relationship between the E-Service variable and the purchase decision of 0.753, it can be concluded that the magnitude of the relationship between E-Service and purchasing decision shows a strong correlation.

Partial Test (Test t)

Partial hypothesis testing (t-test) is used to examine the effect of E-WOM (X1), E-Trust (X2) and E-Service (X3) on purchasing decisions (Y) individually or partially. The partial test is done by comparing tcount with ttable so it is often called t test. The degree of freedom on the t test is n-k where n (number of data), k (number of variables).

 

Table 4. Partial Test (Test t)

Coefficientsa

 

 

Unstandardized Coefficients

Standardized Coefficients

 

 

 

t

 

 

 

Sig.

Type

 

B

Std. Error

Beta

1

(Constant)

1,893

1,578

 

1,200

,233

E-WOM

,413

,068

,439

6,115

,000

E-Trust

,297

,081

,299

3,673

,000

E-Service

,233

,085

,234

2,738

,007

a. Dependent Variable: Purchase Decision

Source : SPSS 25 data processing results

 

From table 4. above it can be concluded that:

Variable E-WOM (t count = 6.115 ; Sig 0.000)

tcount (6.115) > ttable (1.984)  then Ha received Sig value (0.000) < 0.05  then Ha received. That is, the variable coefficient E-WOM (X1) partially significantly influences the purchase decision variable.

E-Trust variable (t count = 3.673 ; Sig 0.000)

tcount (3.673) > ttable (1.984)  then Ha received Sig value (0.000) < 0.05  then Ha received. That is, the coefficient of the E-Trust  variable (X2) partially significantly influences the purchase decision variable.

Variable E-WOM (t count = 2.738 ; Sig 0.007)

tcount (2.738) > ttable (1.984)  then Ha received Sig value (0.007) < 0.05  then Ha received. That is, the coefficient of the E-Service  variable (X3) partially significantly influences the purchase decision variable.

Coefficient of Determination (R2) Analysis Test

 

Table 5. Coefficient of Determination Analysis

Model Summary

 

Type

 

R

 

R Square

Adjusted R Square

Std. Error of the Estimate

1

.863a

,744

,736

1,909

a. Predictors: (Constant), E-Service, E-WOM, E-Trust

Source : SPSS 25 data processing results

 

To see the effect of E-WOM, E-Trust, and E-Service variables against purchasing decisions. The calculation results will be seen in the summary model, especially the R Square number (squared correlation number). The number R Square is also called the coefficient of determination (KD). As for the calculation results, table 4.22. Because the independent variable is more than two, the adjusted R Square (Adj R2) is used. The magnitude of the coefficient of determination (adjusted R Square) is 0.736. So the adjusted  R Square (Adj R2) or the coefficient of determination (KD) in the calculation above is 0.736 or equal to 73.6% (the formula for calculating the Coefficient of Determination is r2 x 100%).

KD = r2 x 100%

KD = 0.736 x 100%

KD = 73.6 %

This figure means that the combined influence of E-WOM, E-Trust, and E-Service on purchasing decisions is 73.6% while the remaining 26.4% (100% - 73.6%) is influenced by other causal factors outside this regression model. For example, price, promotion, quality and others.

Interpretation of Research Results

The Effect of E-WOM on Purchasing Decisions

The results of testing the first hypothesis in this study, show that E-WOM has a significant influence on purchasing decisions; this can be seen from the probability value of count (6.115) > table (1.984) and Sig value (0.000) < (0.05). The results of the author's research show that the E-WOM  variable has a significant effect on purchasing decisions. This shows that consumers feel that the existence of E-WOM that matches their expectations of a product will influence their purchasing decisions. According to research by Elsa Riski Yulindasari, 2022, the results showed that E-WOM had a significant and positive effect on purchasing decisions; this proves that the results of research conducted by the author with previous research consistently have a significant influence between E-WOM on purchasing decisions.

The Effect of E-Trust on Purchasing Decisions

The results of testing the first hypothesis in this study, show that E-Trust has a significant influence on purchasing decisions; this can be seen from the probability value of calculate (3.673) > table (1.984) and Sig value (0.000) < (0.05). The results of the author's research show that E-Trust variables have a significant effect on purchasing decisions. This shows that consumers will prefer to buy a product they trust. According to Nuri Purwanto's research, 2021, the results showed that E-Trust had a significant and positive effect on purchasing decisions. This proves that the results of research conducted by the author with previous research are consistent that there is a significant influence between E-Trust and purchasing decisions.

The Effect of E-Service on Purchasing Decisions

The results of testing the first hypothesis in this study, show that E-Service has a significant influence on purchasing decisions; this can be seen from the probability value of calculate (2.378) > table (1.984) and Sig value (0.007) < (0.05). The results of the author's research show that the E-Service variable has a significant effect on purchasing decisions. This shows that consumers are happier if served quickly and precisely when buying a product so that purchasing decisions are made. According to Ismi Suaidi's research, 2022, the results showed that E-Service had a significant and positive effect on purchasing decisions. This proves that the results of research conducted by the author with previous research are consistent that there is a significant influence between E-Service and purchasing decisions.

 

CONCLUSION

Research on the impact of E-WOM, E-Trust, and E-Service on purchasing decisions within the TikTokShop Marketplace unveils significant insights. Electronic Word of Mouth (E-WOM) substantially influences consumers' choices on TikTokShop, underscoring the importance of positive online word-of-mouth in shaping purchasing decisions. The study also sheds light on the influential roles of E-Trust and E-Service, which significantly contribute to repeat purchase decisions on the platform. This highlights the interconnectedness of trust-building and effective digital services in shaping consumer preferences and ultimately driving purchasing behaviors within the digital marketplace. From a managerial perspective, the implications drawn from the research offer valuable guidance for businesses navigating the dynamic landscape of online commerce. Firstly, there is a clear call for companies to expand and optimize their use of social media, particularly on platforms like TikTokShop. This recommendation reinforces empirical support for integrating social media into comprehensive marketing strategies, emphasizing the need for proactive engagement, positive E-WOM cultivation, and strategic digital marketing efforts. Secondly, the research underscores the critical importance of investing in digital customer service (E-Service). Managers are urged to establish a robust technological foundation that ensures efficient and responsive customer support, secure online transactions, and effective inventory management. This dual-focus on leveraging social media and enhancing digital service capabilities emerges as key pillars for businesses seeking to thrive in the evolving landscape of online retail.

 

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Copyright holder:

Agus Sriyanto (2024)

 

First publication rights:

International Journal of Social Service and Research (IJSSR)

 

This article is licensed under: