The Effect of Live Streaming Feature on the E-commerce Platforms Towards Customers’ Purchase Decisions in Indonesia

Abstract

COVID-19 outbreak affected the whole world. Many businesses can not open their shop offline because of the new implementation of the control policies. Even though the pandemic has disrupted almost all business sectors, it has positively impacted the e-commerce business. The total e-commerce industry revenue, including in Indonesia, is rapidly increasing. It is found that this continual revenue growth on e-commerce platforms is because of the newly added section, which is the live streaming feature. Despite the growing popularity, it is found that 220 out of 500 Indonesians still do not do transactions through this live streaming feature. Only a limited paper studied the live streaming features, specifically the impact of factors in the live streaming feature on consumers' purchase decisions on e-commerce platforms. As a result, this research aims to examine how the live streaming feature actually affects the consumers' purchase decisions on the e-commerce platforms in Indonesia. The data was gathered using a quantitative approach and survey method by an online questionnaire distributed to 304 Indonesians who have at least purchased one product after watching the live streaming, then analyzed using PLS-SEM to determine the correlation between variables. According to the findings of this research, the Information Success Model significantly influences Trust, Flow, Satisfaction, and Perceived Social Support (only System Quality and Information Quality). Privacy and Security Concerns significantly affect Trust and Flow, except Satisfaction. It is also found that Trust has a significant effect on Flow that leads to a significant relationship with Satisfaction. Trust, Flow, Satisfaction, and Perceived Social Support have a significant relationship with purchase intention. In addition, Purchase Intention was also found to have an influence on Purchase Decision based on this research. To summarize, this study provided recommendations for the industry, e-commerce businesses, and e-commerce platforms, as well as a summary of the study's limitations and future opportunities, with the hope of providing future researchers with practical implications for examining the purchase decision in live streaming e-commerce.