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E-ISSN: 2808-6724
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THE INFLUENCE OF PRODUCT REVIEWS, PRICES AND TRUST ON
ONLINE PURCHASE DECISIONS AT SHOPEE
Telli Poniman Chandra
1
, Anny Nurbasari
2
Faculty of Business, Christian University of Maranatha Bandung, Bandung, West Java, Indonesia
1
rcardtopia@gmail.com
2
annurbas_61@yahoo.co.id
ARTICLE INFO
ABSTRACT
Published: October 30
th
, 2022
The digital industry in Indonesia is growing and increasing very rapidly,
one of the growing industries is the e-commerce industry in Indonesia.
Trust, researchers conducted research on Shopee. In this study, the
population consisted of customers in Bandung who had used the Shopee
program for online shopping and the exact number was not known. The
sample technique used is purposive sampling, with respondents consisting
of Bandung residents who have used the Shopee program at least three
times for online purchases. This research was conducted in Bandung. The
investigation stage lasted for six months. There are independent factors and
dependent variables in this study. Product reviews, cost and trust are
independent factors. Whereas the bound variable is the option to buy.
According to the research findings, product reviews do not affect
purchasing decisions on Shopee. Shopee buyers are affected by the price
when making a purchase. Shopee's purchasing decisions are influenced by
consumer trust, Product Reviews, Pricing, and Trust all have an effect on
the Purchase Decision.
Keywords: product reviews, price,
trust, online purchase decision
This work is licensed under CC
BY-SA 4.0
INTRODUCTION
The rapid development of e-commerce has given rise to many marketplaces in Indonesia
such as Bukalapak, Shopee, Lazada, Tokopedia which are growing rapidly in Indonesia today
(Nugroho, 2021). Based on research from "Navigating Indonesia's E-Commerce: Omnichannel as
the Future of Retail", it is known that consumers who shop online are 74.5 percent more than
consumers who shop offline. The growing trend of online shopping is also one of the factors that
encourage MSME players to adapt to the digital ecosystem, namely by selling through the
marketplace so that they can increase sales and continue to meet public demand (BizzInsight,
2021).
Ipsos, a world market research institute, found that Shopee, which first entered Indonesia in
2015, thrives in the country. According to a poll conducted by global market research firm Ipsos,
Shopee, which first entered Indonesia in 2015, topped the rankings in terms of brand, usage, most,
and often (BUMO), top-of-mind awareness, number of transactions, and transaction value over the
past three months. 54% of respondents preferred Shopee based on the BUMO index, followed by
30% for Tokopedia and 13% for Lazada. Regarding the size of brand awareness, Shopee has the
largest score. According to 54% of respondents, Shopee is the most memorable e-commerce site.
Tokopedia was chosen by 27% of respondents, while Lazada was chosen by 11%. Based on these
criteria, it can be concluded that Shopee has become the most popular online shopping brand
among most Indonesian consumers (Rayana, 2022).
The Influence of Product Reviews, Prices and Trust on Online Purchase Decisions at Shopee
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Before buying a product, buyers often consider various things. This includes product
assessment, affordability, and dependence. According to his research (Ilmiyah & Krishernawan,
2020), online purchasing decisions are significantly influenced by price. On Shopee, consumers
can see the prices of the goods they are interested in, and prices can be sorted from lowest to
highest, allowing them to search for goods at the desired price. Customers can publish product
reviews on Shopee by rating between 1 and 5 stars (from worst to best). Shopee makes it easy for
consumers to find the items they need.
Buyer trust is certainly very important. Because the business sector activities carried out are
online-based, sellers do not meet buyers in person (Malau, 2016). In addition, Shopee guarantees
security through a product return system and the provision of joint accounts to protect consumers
from fraud.
From the description above, it is known that (Sudjatmika, 2017) has conducted a similar
study with the variables Product Review, Price, Security, purchasing decisions. In this research,
the difference from the study is the existence of various different research results, and the presence
of samples and populations that have not been studied before. So the researcher wanted to develop
the research by adding the Trust variable, the researcher conducted a research on Shopee. So this
research is entitled "The Influence of Product Reviews, Prices and Trust on Online Purchasing
Decisions on Shopee in Bandung".
The purpose of this study is to determine whether there are any influences:
1) To find out how product reviews affect online purchasing decisions on Shopee;
2) To find out how product prices affect online purchasing decisions at Shopee;
3) To find out how trust affects online purchasing decisions at Shopee; and
4) To find out how product reviews, prices, and trust affect online purchasing decisions on
Shopee.
METHOD
Population and Sample
The demographics included in this study consist of customers in Bandung who have
experience buying online using Shopee, but the number is uncertain. Because the exact number
of Shopee application users in Bandung is not clear, the researcher will use the Lameshow
formula.
n =
𝑍
2
𝑥 𝑃 (1 − 𝑃)
𝑑
2
Information:
n = sample
Z = Z score at 95% confidence = 1.96
P = prevalence of outcomes, data has not been obtained then used (50% = 0.5)
d = sampling error (10% = 0,10)
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M o n t h , Y e a r
𝑛 =
(1,96)
2
𝑥 0,5 (1 − 0,5)
(0,10)
2
Therefore, researchers used a sample size of at least 96 Bandung residents who had made
online purchases using the Shopee program.
Research Location and Time
This research was conducted in Bandung for six months.
Data and Data Collection Methods
This study uses two types of data, yesthe primary data is collected through an online survey
given to Bandung-based buyers who have used the Shopee application for online purchases, and
secondary data obtained from books and websites related to the issues to be discussed.
Data Analysis Methods
Data processing in this study used SmartPLS Software version 3.0. There are three analysis
methods used, namely outer model analysis, inner model analysis, and hypothesis testing.
RESULT AND DISCUSSION
Outer Model Test
Figure 1. Outer Model Test
An external model analysis is performed to ensure that the applied measurements can be used
as measures (valid and reliable). It describes the relationship between latent variables and their
indices in the form of this analysis. Some signs allow the researcher to find an outside analysis of
the model
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M o n t h , Y e a r
Convergent Validity
Table 1. Convergent Validity Test
Item Number
Outer Loading
Price
Trust
Purchasing Decision
H01
0.901
H02
0.872
H03
0.893
KEP01
0.895
KEP02
0.875
KEP03
0.882
KEP04
0.912
KP01
0.904
KP02
0.940
KP03
0.932
UP01
UP02
UP03
UP04
Convergent validity research using Outer Loadings revealed that the items tested had Outer
model values greater than 0.700. Therefore, such items are legitimate.
Discriminant Validity
Table 2. Discriminant Validity Test
Variable
Price
Trust
Purchasing Decision
Product Reviews
Price
0.889
Trust
0.893
0.891
Purchasing
Decision
0.881
0.922
0.926
Product
Reviews
0.895
0.903
0.880
0873
Based on the tendency of discriminant validity, there is a difference in the value of the
correlation between one construct and another. This shows that each construct has a good ability
to be distinguished from one another because there are differences in correlation values between
one construct and another. Analysis using AVE shows the following uses:
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M o n t h , Y e a r
Table 3. AVE Test
Variable
Price
Price
0.789
Trust
0.794
Purchasing Decision
0.857
Product Reviews
0.762
Composite Reliability
Table 4. Reliability Test
Variable
Cronbach’s Alpha
Composite reliability
Price
0.867
0.918
Trust
0.913
0.939
Purchasing Decision
0.916
0.947
Product Reviews
0.895
0.927
Based on the data presented in the table just presented, the Composite Reliability value for
Price is 0.918, the Composite Reliability value for Trust is 0.939, the Composite Reliability value
for Purchasing decisions is 0.947, and the Composite Reliability value for Product Review is
0.927. Therefore, it is reliable.
Cronbach’s Alpha
Cronbach's Alpha is a reliability test used to amplify the combined results of dependence. A
variable is said to be believable if Cronbach's alpha is better than 0.70.
Inner Model Test
Figure 2. Inner Model Test
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Goodness of Fit Test
This test is used to test research hypotheses. To perform a PLS analysis using the Smartpls
3.0 application. Therefore, SRMR value testing is a must to pass the Goodness Of Fit Model test.
If the SRMR is less than 0.10, it says Perfect if it is less than 0.08.
Table 5. Goodness of Fit Test
Indicator
Saturated Model
Estimated Model
SRMR
0.065
0.065
d_ULS
0.438
0.438
d_G
0.671
0.671
Chi-Square
343.682
343.682
NFI
0.792
0.792
From the table above, an SRMR value of 0.065 is obtained, which means that the SRMR
value is less than 0.10 and the SRMR value is smaller than 0.08, which means that it can be said
to be Perfect Fit. In order, the model created can describe the influence between the variables
studied according to the model.
Hypothesis Test
In hypothesis testing can be seen t-statistical values and probability values. To test the
hypothesis using statistical statistics, the t-statistical value for alpha 5% is 1.96. In accordance with
the criteria of accepting or rejecting the hypothesis, Ha is accepted and H0 is rejected when the t-
statistic is greater than 1.96. To reject/accept a hypothesis based on probability, Ha is accepted if
the p-value is less than 0.05.
The statistical hypotheses tested are:
1) H01: Product reviews have no bearing on purchasing decisions on Shopee;
2) H1: Product reviews have an influence on purchasing decisions on Shopee;
3) H02: Prices have no influence on purchasing decisions on Shopee;
4) H2: Price has an influence on purchasing decisions on Shopee;
5) H03: Trust has no influence on purchasing decisions on Shopee;
6) H3: Trust has an influence on purchasing decisions on Shopee;
7) H04: Product Reviews, Pricing, and Trust have no bearing on purchasing decisions; and
8) H4: Product Reviews, Pricing, and Trust have an influence on Purchasing Decisions.
Table 6. Inter-Variable Influence Test
Original
Sample
T calculate / P value
Information
Product Reviews
Purchase Decisions→
0.155
1.368 (0.172)
H01 accepted, H1
rejected
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M o n t h , Y e a r
Purchase Decision
Pricing→
0.218
1.999 (0.046)
H02 rejected, H2
accepted
Trust of Purchasing
Decisions→
0.588
5.337 (0.000)
H03 rejected, H3
accepted
Product Reviews,
Pricing, Trust Purchase
Decision→
0.870
The SRMR value is less than 0.10
and the SRMR value is smaller than
0.08, which means it can be said to
be Perfect Fit. In a way, the model
created can describe the influence
between the variables studied
according to the model
H04 rejected, H4
accepted
The test results according to the table above are:
1) For Hypothesis Test 1, a sig value of 0.172 was obtained which shows that the sig value
is more than 0.005 so that it accepts H01 and rejects H1, indicating that product reviews
have no effect on purchasing decisions at Shopee. The findings of this study are in line
with the findings of Ilmiyah and Krishernawan (2021), which show that product
reviews do not have a positive effect on purchasing decisions;
2) For Hypothesis Test 2, a sig value of 0.046 was obtained which shows that the sig value
(0.046) is smaller than 0.005 so that it rejects H02 and accepts H2 stating that the price
affects the purchase decision at Shopee. Thus, research conducted by (Laili Hidayati,
2018) shows that product prices have a significant positive effect on purchasing
decisions; Research (Laili Hidayati, 2018) explained that consumers will consider
prices on Shopee products that are affordable to consumers and consumers are more
interested in products that match their purchasing power;
3) For Hypothesis Test 3, a sig value of 0.000 was obtained which indicates that the sig
value (0.000) is 0.005 less than the sig value (0.000). Therefore, reject H03 and accept
H3, which shows that trust influences purchasing decisions on Shopee. Anggraeni and
Madiawati (2016) asserts that trust has a great beneficial influence on purchasing
decisions; Anggraeni & Madiawati (2016) added that customer trust plays an important
role in their purchasing decisions. In accordance with this, Ilmiyah & Krishernawan
(2020) and Mahkota (2014) show that trust has a considerable and strong influence on
purchasing decisions; and
4) For Hypothesis Test 4, an SRMR value of less than 0.10 and an SRMR value of less
than 0.08 indicates a perfect match; thus, H04 is rejected and H4 is accepted. As a
result, Product Reviews, Pricing, and Trust all contribute to the Purchasing Decision.
According to Kotler and Keller (2016), consumer purchasing decisions are a
component of consumer behavior, which is the study of how individuals, groups, and
organizations choose, acquire, utilize and experience goods, services and ideas to
satisfy their needs. desire. and desire. This conclusion is in accordance with previous
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research conducted by Andiani (2019), Laili Hidayati (2018), and Anggraeni &
Madiawati (2016), which studied the influence of product reviews, prices, and trust on
purchasing options simultaneously.
R-Square Analysis
Table 7. R-Square Analysis
R Square
Adjusted R Square
Information
Purchasing Decision
0.870
0.866
Magnitude of influence
= 87.0%
Based on the table above, the joint influence of Product Reviews, Price, and Trust in
Purchasing Decisions is 0.870, or the simultaneous influence is 87.0%.
Indicator Influence Test
Table 8. Indicator Influence Test
Variable
Item No
Indicator
Value
Product
Reviews
UP01
Awareness
0.906
UP02
Frequency
0.880
UP03
Comparison
0.879
UP04
Influence
0.823
Price
H01
Price Eligibility
0.901
H02
Conformity of Price to Product Quality
0.872
H03
There are Discounts or Discounts
0.893
Trust
KEP01
Benevolence
0.985
KEP02
Ability
0.875
KEP03
Integrity
0.882
KEP04
Willingness to depend
0.912
Purchase
Decisions
KP01
Product Review Factors
0.904
KP02
Price Factors
0.940
KP03
Trust Factor
0.932
Discussion
Based on the analysis of the research indicators, it is known that currently the Product Review
Variable has the highest indicator of Awareness with a coefficient of 0.906 thus, the product
reviews given can raise consumer awareness. For the price variable, the highest indicator is price
feasibility with a coefficient of 0.901. Thus, the price given by consumers is relatively feasible
because it has a value that matches the price. For the trust variable, it was found that the
Benovelence indicator has the highest indicator of 0.985, which illustrates that consumers believe
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that the company provides sincerity to provide services. In order, it is obtained that the company
is considered by consumers to have the sincerity to be able to provide the products and services
needed, and for the variable the Purchase Decision has the highest indicator, namely Price, with a
quantity of 0.940. Thus, it is known that the price component offered is one of the considerations
for consumers to make a purchase decision.
Product evaluation at Shopee has a small effect on purchasing decisions. The findings of this
study are in line with the findings of Ilmiyah and Krishernawan (2021), who found that product
reviews have little influence on consumers' purchasing decisions.
The price affects the purchasing decisions made by Shopee. As a result, research conducted
by Laili Hidayati (2018) shows that product prices have a fairly favorable impact on purchasing
decisions. According to research Laili Hidayati (2018), people will research the cheap prices of
Shopee goods and be more interested in things that match their purchasing power.
Shopee consumers are influenced by their level of trust. According to the research findings,
this study is consistent with research by Anggraeni and Madiawati (2016) which confirms trust
has a large favorable influence on purchasing decisions. According to Anggraeni & Madiawati
(2016), customer trust is crucial to their purchasing decisions. In accordance with this, Ilmiyah &
Krishernawan (2020) and Mahkota (2014) affirm that trust has a fairly strong and substantial
impact on purchasing decisions.
This shows that Product Reviews, Pricing, and Trust all influence purchasing decisions
together. According to Kotler and Keller (2016), consumer purchasing decisions are elements of
consumer behavior, which are the study of how people, groups, and organizations choose, buy and
use goods, services, ideas, or experiences to meet their needs. . This finding is in line with previous
research conducted by Andiani (2019), Laili Hidayati (2018), and Anggraeni & Madiawati (2016),
which simultaneously examined the influence of product reviews, prices, and trust on purchasing
decisions.
CONCLUSION
Product reviews have a positive and significant influence on online purchasing decisions in
Shopee.com. Price has no effect on online purchasing decisions in Shopee.com. Trust has no effect
on online purchasing decisions in Shopee.com. Product reviews, pricing, and trust stimultanly
influence online purchasing decisions in Shopee.com
Shopee can pay more attention to the price element by offering additional discount programs
or free shipping programs to clients without requiring them to buy in bulk or use Shopee payments.
The free shipping program must have a reasonable minimum purchase requirement, such as Rp.
50000. It is recommended that more and more people are interested in buying goods through
Shopee.
Product Reviews are factors that are known not to affect online purchase decisions at
Shopee.com. Buyers means that they are still not aware and have not used the product review
feature on Shopee to the fullest. Thus, Shoppee Indonesia must improve the product review
system, so that it can be more helpful for someone to be able to attract purchase decisions in the
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future. In accordance with the indicator variable review produk which has the lowest indicator is
the Influence indicator, thus, the company can continue to encourage influential people to give
reviews to increase trust.
Price is one of the components that drive consumers' purchasing decisions. With demikin,
the company can push up good prices. It is known for the Price variable that has the lowest
indicator is the indicator of Price Conformity with Product Quality, thus, the company still needs
to improve the quality of the products offered, with the aim of being able to drive purchasing
decisions to consumers in the future.
The existence of consumer confidence is a factor that drives purchasing decisions. For this
reason, companies must be able to encourage consumer confidence. It is known that the Trust
variable that has the lowest indicator is the Ability indicator , so companies need to improve the
capability component, by increasing the standardization of service and employee knowledge and
experience to face consumer demand.
The product review feature at Shopee has an influence on product selection, where the
Product Reviews, prices, and beliefs mentioned above must be further improved. For the Purchase
Whiteness variable that has the lowest indicator is the Product Review Factor indicator. For this
reason, companies need to encourage product reviews that are better able to represent the
components of consumer needs, with the aim of being able to encourage greater purchasing
decisions in the future.
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