Analysis if Factors Influence Purchase Intention in Tiktok Shop Live Streaming: A Study in Indonesia

Abstract

The rapid growth of online shopping, driven by social commerce platforms, has profoundly reshaped consumer behavior. TikTok Shop, leveraging live streaming as an interactive sales channel, has gained immense popularity by offering consumers a dynamic and engaging shopping experience. The COVID-19 pandemic further accelerated this trend, making live stream shopping an accessible alternative to physical stores. However, in October 2023, TikTok Shop faced regulatory hurdles in Indonesia, leading to its temporary closure amid concerns about fair competition for local traders. In response, TikTok made a strategic investment of US$1.5 billion in Tokopedia, aiming to support Micro, Small, and Medium Enterprises (MSMEs) while promoting locally sourced products within Indonesia’s digital economy. Amid these developments, this study seeks to understand the factors influencing consumer purchase intention during TikTok Shop’s live streaming sessions. Data were collected through an online survey of 400 respondents and analyzed using SmartPLS. The findings highlight that perceived price plays a crucial role in shaping purchase intention, both directly and through the mediation of online trust. Furthermore, factors such as perceived usefulness, ease of use, social influence, and application content also contribute to consumer decision making. This study not only provides empirical insights into live stream e-commerce but also underscores the importance of trust and strategic pricing in fostering meaningful connections between businesses and consumers. By understanding these dynamics, businesses can create more engaging, transparent, and consumer-centric shopping experiences in the evolving digital marketplace.