Generation Z and Indonesian Social Commerce: Unraveling key drivers of their shopping decisions

Abstract

The landscape of social media has greatly evolved, which created new opportunities, especially in the field of e-commerce. This has led to the development of social commerce (s-commerce), where social media is used for online shopping and business activities, especially for Generation Z (Gen-Z). This study aims to determine the factors that drive Gen-Z's intention to make purchases on s-commerce from the perspective of social cognitive theory. Prior studies have investigated the factors influencing the utilization of s-commerce by Gen-Z, focusing on aspects related to technology, trust, and the s-commerce construct. In contrast, research in Indonesia pertaining the shopping behavior of Gen-Z tends to concentrate more on e-commerce platforms, little of them focusing on s-commerce. Therefore, bridging this gap is crucial. This study gathered data from 204 Gen-Z users of s-commerce. The collected data underwent analysis using Structural Equation Modeling (SEM) procedures. The findings revealed that the intention to purchase among these users is directly impacted by various factors including the quality of information provided, subjective norms, expectations of hedonic outcomes, expectations of utilitarian outcomes, and the users' self-efficacy. This research offers valuable insights and implications for enhancing the shopping experience of Gen-Z through s-commerce. The findings underscore the importance of tailoring s-commerce strategies to meet the unique preferences and behaviors of this demographic. This study highlights that businesses can better engage Gen-Z by understanding what drives their buying decisions. As Gen-Z is tech-savvy and socially connected, knowing these key factors helps businesses create more effective strategies. This research also opens doors for further studies on how s-commerce is changing and its effects on young consumers.