Why are Indonesian consumers buying on live streaming platforms? Research on consumer perceived value theory

Abstract

Along with the economic and technological development in Indonesia, one of the innovations is in the field of social media commerce and it has managed to attract the attention of Indonesian consumers. Different from other social media, TikTok offers a new feature, namely TikTok Live, participants can use this social media for their entertainment as well as a buying and selling platform. At the same time, live streaming also faces several factors where consumers are not yet sure about buying it. However, the marketing strategy has recently become a hot topic of discussion. Therefore, this empirical research aimed to investigate why Indonesian consumers buy on live streaming using perceived trust as a mediating variable, such as trust in the products and trust in the sellers. The factors used to analyse the influence on consumers' purchase intention include utilitarian value, hedonic value and social value. This study collected data in a questionnaire created in Google Forms and performed data analysis using SPSS 26 and SPSS Amos software, using structural equation models to analyse validation and theoretical hypotheses. The results of this analysis are expected to provide knowledge to social commerce providers, especially in the area of live streaming.This study shows that perceived values such as utilitarian, hedonic and social values have a significant positive impact on purchase intention. Utilitarian value and social value both have a significant and positive influence on both consumer trust in the products and consumer trust in the platform, but not on hedonic value, where hedonic value only has a significant positive influence on trust in the platform, but an insignificant effect on trust in the product. Even though hedonic value has no influence on the product, sellers still need to provide a more pleasant atmosphere to attract the attention of users or consumers. And for further research, this study hopes to uncover additional elements that influence consumer behaviour on the TikTok live streaming platform.