The Influence Of Price, Online Customer Reviews, and Ratings On The Purchasing Decisions Of Generation Z In TikTok Shop Marketplace

Abstract

The rapid development of social commerce has changed consumer purchasing behavior, especially among Generation Z. TikTok Shop has become one of the most widely used social commerce platforms because it integrates social media and online shopping activities in one application. This study aims to analyze the influence of price, online customer reviews, and ratings on purchasing decisions among Generation Z in TikTok Shop. This study uses a quantitative approach with primary data obtained through distributing questionnaires to 119 Generation Z respondents who have made purchases through TikTok Shop. Data analysis was carried out using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method with the help of SmartPLS 4 software. The results show that online customer reviews and ratings have a positive and significant effect on purchasing decisions, while price does not have a significant effect on purchasing decisions. In addition, online customer reviews are the variable that has the most dominant influence on purchasing decisions. Simultaneously, price, online customer reviews, and ratings are able to explain purchasing decisions by 62.3%, while the remaining 37.7% is explained by other variables outside the research model. These findings suggest that Generation Z tends to rely more on information provided by other consumers than on price considerations when making purchasing decisions on TikTok Shop.