1 Understanding the Effect of Review Credibility, Perceived Usefulness, and
Perceived Ease of Use towards Purchase Intention (A Study on K-Beauty Products in Shopee)
By: Nadzima Afifah
Faculty of Economics and Business, Universitas Brawijaya nadzimaa@yahoo.com
Supervisor: Ainur Rofiq, S.Kom., SE.,MM.,Ph.D.
Abstract: The rapid progress in digital technology makes online shopping even easier, moreover during pandemic COVID-19. In 2020, new e-commerce users estimated that there are around 12 million and Shopee was placed as the most visited e-commerce site in Indonesia by the fourth quarter in 2020. This study is aimed to analyze the influence of review credibility, perceived usefulness and perceived ease of use towards consumer purchase intention on K-Beauty product on Shopee. This study examine four variables such as Review Credibility (X1), Perceived Usefulness (X2), Perceived Ease of Use (X3) and Purchase Intention (Y). This study is descriptive research by using quantitative approach. The population in this study is Shopee’s customers. The sampling technique is purposive sampling in which some criteria is needed. The sample size is 161 respondent. Statistical software Smart-PLS is used to analyze the data in this study. This study shows review credibility, perceived usefulness, and perceived ease of use has a positive and significant effect on purchase intention.
Keywords: Review Credibility, Perceived Usefulness, Perceived Ease of Use, Purchase Intention.
INTRODUCTION
Over the last few years, consumer shopping habits have changed due to the explosion of e-commerce. Shopping in a physical store used to be the main way to shop, but now online shopping is quickly becoming the most preferred way to shop for consumers around the world (Scalefast, 2018). E-commerce is currently growing rapidly in Indonesia.
Even during the COVID-19 pandemic, the e-commerce’s growth in Indonesia
reached 91 percent growth by the end of 2020 compared to 2019 (Situmorang, 2020). According to survey conducted in January 2021 by Datareportal (2021) with a total of 7.83 billion population around the world, around 59.5 percent of the world population equivalent to 4.66 billion population are active internet users.
The rapid progress in digital technology makes online shopping
2 even easier. But the change of customer’s
habits from physical stores to online store is not always smooth. This is because online reviews have an important role for business continuity.
Furthermore, following the Korean Wave and the rapid popularity of K-prefixed cultural products, K-Beauty has become a tool for Korea to re-build its national identity (Li et al., 2019). Korean drama series and K-Pop have supported for Korean beauty ideals and trends (Oh, 2018). Korean celebrity’s wide exposure through dramas and music videos has influenced viewers to adopt Korean beauty ideals and facilitates the consumption of Korean beauty products worldwide (Halim and Kiatkawsin, 2021).
The competition between marketplaces in Indonesia is very tense.
According to iPrice Insights cited in Databoks (2021), Shopee was placed as the most visited e-commerce site in Indonesia by the fourth quarter in 2020.
Moreover, Shopee is a well-known marketplace for K-Beauty fans because customers can find a huge range of original products in one place (Umma, 2020). Shopee has been running an Instagram account called ‘Shopee K-Pop’
that focuses on promoting Korean waves
such as K-Pop stuff and K-Beauty products.
In-line with how important review to customers, beauty products also needs review because it depends on customer’s preference. Mo, Li, and Fan (2015) also state that positive reviews, picture reviews, cumulative reviews, appended reviews and describing ratings have an effect in consumer purchase behavior.
Aware of the future inconvenience, Shopee set up a built-in program that can help customers to find the detail of selected product information, which is the online customer review.
Research Problem
Built upon the background, this study tried to answer a specific question of “Does review credibility, perceived usefulness and perceived ease of use influence purchase intention?”
LITERATURE REVIEW
Review Credibility, Perceived Usefulness, and Perceived Ease of Use
Almana and Mirza (2013) conclude consumer review as part of e- WOM. There are five indicators of online customer review based on Putri and Wandebori (2016) which are; perceived review credibility, argument quality, perceived usefulness, review valence, and
3 the quantity of review. Cheung et al.
(2009) define review credibility as the consumers’ perception that the information contained in a review is believable, true, or factual.
In examining perceived review credibility, perceived usefulness and perceived ease of use on purchase interest in this research, the Technology Acceptance Model (TAM) was used to test the acceptance of new technology.
According to Davis et al. (1992), perceived usefulness indicates consumers’ perceptions or judgment towards products or services regarding the outcome of the experience. According to Davis (1989), PEOU refers to user’s perception of how conveniently a particular application can be used.
Purchase Intention
Purchase intention is a part of the consumer buying decision process.
Purchase intention can be described as the probability of a consumer will purchase a specific product (Fazli et al. 2009).
According to Mowen and Minor (2002), purchase intention is defined as a consumer’s determinant to decide buy products or services. Purchase intention also can be referred as a determination and an antecedent of consumers (Kotler and Keller, 2015).
Hypothesis
H1: Review credibility has a positive and significant influence on customer purchase intention on K- Beauty products in Shopee.
This hypothesis is supported by previous research by Tien et al. (2019), the study enclosed that perceived usefulness and credibility increase the probability of the adoption of the e- WOM message, and e-WOM adoption has a strong influence as the mediating role of e-WOM credibility and usefulness toward products recommended on SNSs. These results are supported by Chakraborty (2019) and Filieri et al. (2020).
H2: Perceived usefulness has a positive and significant influence on customer purchase intention on K- Beauty products in Shopee.
This hypothesis is supported by research conducted by Ventre and Kolbe (2020), the results indicate that trust has an inverse relationship with perceived risk and positively influences in online purchase intention. The study also suggests that companies should enhance customers to share their positive online opinions to improve trust and encourage online purchases.
The results of this study were supported
4 by Tien et al. (2019) and Filieri et al.
(2020).
H3: Perceived ease of use has a positive and significant influence on purchase intention on K-Beauty products in Shopee.
This hypothesis is supported by research conducted by Filieri et al.
(2020), the research results reveal that perceived ease of use, online consumer review (OCR) credibility and OCR usefulness have a positive impact on customer satisfaction, which ultimately leads to the continuance intention of UGC platforms. Customer satisfaction mediates the effect of the independent variables on continuance intention.
RESEARCH METHOD Research Type
Based on the research question and objectives, this study employed an explanatory research that used quantitative approach. A quantitative approach was adopted in this study as it is a method that transform a collection of numerical data into statistic. It also commonly used to test the hypothesis or specific research question on a descriptive or explanatory research.
Population and Sampling
Based on the previous definition, population in this study directed to all consumers who have purchased K- Beauty products on Shopee Indonesia.
According to Hair et al. (2014), a sample size should be 100 or more. As a general rule, the minimum number of a sample is at least five times more than the number of the questions to be analyzed, and the sample size will be more acceptable if it has the ratio of 10:1. To avoid invalid data and strengthen the result of the research, the sample size used to process the data was 161 samples.
Sample Techniques
Non-probability sampling and purposive sampling were used in this study. The considerations for selecting respondent in this study are based on the knowledge and the criteria are as follow:
first, respondent is at least 17 years old.
And second, respondent has ever purchase K-Beauty products on Shopee Indonesia.
Data Collection Method
This study used questionnaire as the data collection method. Questionnaire was distributed online to the respondents via Google Form. And the data was obtained by spreading the Google Form
5 form’s link through the online messaging
and social media platform.
Data Analysis Method
The data analysis method employed in this study is the Structural Equation Model (SEM) with Variance Based SEM approach or known as Partial Least Square (PLS).
FINDINGS AND DISCUSSION Research Object Description
Shopee is a Singapore based e- commerce platform under Sea (previously known as Garena) founded in 2009 by Forrest Li. Since its first debut in Indonesia at the end of 2015, Shopee has been climbing the stair of fame before finally being placed first as the most visited e-commerce site in Indonesia by the second quarter of 2020.
Li et al. (2019) stated that with the rapid growth of K-prefixed cultural products, K-beauty has become a stepping stone for Korea to rebrand its national identity. Korean drama series and also K-pop has become major tools for Korean beauty ideals and trends (Oh, 2018).
The Characteristics of Respondent Table 1. Based on Gender
Frequency Percentage (%)
Male 7 4
Female 154 96
Total 161 100
Table 2. Based on Age
Frequency Percentage (%)
>37 years old 47 29
17 – 21 years
old 20 12
22 – 26 years
old 49 31
27 – 31 years
old 21 13
32 – 36 years
old 24 15
Total 161 100
All the 161 respondents has ever purchase K-Beauty products through Shopee as a platform. The detailed profile chategories of the respondents is presented in the appendix.
Data Analysis Method
The data analysis method used are Partial Least Square (PLS) that calculated using the Outer Model, Inner Model and Hypothesis Test.
Outer Model
There are two criteria can be used to test the validity of each research
6 instrument, namely convergent validity
and discriminant validity.
For reliability, there’s also two criteria can be used, which are Cronbach Alpha and Composite Reliability.
Table 3. Convergent Validity measured using Outer Loading
Original
Sample (O) Note
X1.1 0.908 Valid
X1.2 0.915 Valid
X1.3 0.89 Valid
X1.4 0.9 Valid
X2.1 0.946 Valid
X2.2 0.943 Valid
X2.3 0.916 Valid
X3.1 0.905 Valid
X3.2 0.886 Valid
X3.3 0.861 Valid
Y1.1 0.827 Valid
Y1.2 0.842 Valid
Y1.3 0.762 Valid
Table 4. Discriminant Validity measured using Cross Loading
X1 X2 X3 Y Note
X1.1 0.908 -0.031 0.513 0.617 Valid X1.2 0.915 0.019 0.559 0.634 Valid X1.3 0.89 0.016 0.521 0.622 Valid X1.4 0.9 0.005 0.652 0.65 Valid X2.1 0.037 0.946 0.202 0.234 Valid X2.2 -0.025 0.943 0.128 0.173 Valid X2.3 -0.016 0.916 0,102 0.181 Valid X3.1 0.583 0.114 0.905 0.708 Valid X3.2 0.588 0.056 0.886 0.636 Valid X3.3 0.484 0.245 0.861 0.705 Valid Y1 0.521 0.239 0.821 0.827 Valid Y2 0.66 0.09 0.551 0.842 Valid Y3 0.529 0.181 0.453 0.762 Valid
Table 5. Reliability measured using Cronbach Alpha and Composite Reliability
Variable
Composite Reliability (>0.7)
Cronbach’s
Alpha (>0.7) Information
X1 0.946 0.925 Reliable
X2 0.954 0.929 Reliable
X3 0.915 0.86 Reliable
Y 0.852 0.743 Reliable
Inner Model
Inner model showing R-Square and Goodness of Fit (GoF). Based on the R-square value and after multiplied by 100%, the coefficient of determination value for the endogenous variable is 69.3% for the purchase intention variable.
These results indicate that the coefficient of determination of the purchase intention variable is influenced by variables in this study by 69.3%, while the remaining 30.7% is explained by other variables outside the research model.
And for the GoF, after calculated, the result shows that the goodness of fit value in this study is 0.7361 or 73.61%. It indicates that the data diversity explained by the model is 73.61%, while the remaining 26.39% is explained by the other variables outside the model.
Hypothesis Testing
The result of the hypothesis testing shows that H1: Review Credibility has a positive
7 and significant influence on purchase
intention, H2: Perceived usefulness has a positive and significant influence on customer purchase intention, H3:
Perceived ease of use has a positive and significant influence on purchase intention, are accepted. With all t- statistics more than 1,96.
LIMITATION
There are several limitations that the researcher experienced during this study, such as: First, the questionnaire was spread out online using the Google Form.
With this method, it is possible that the gathered data did not represent the whole population. Second, the variables used in this study are limited. This study only used four variables, including Review Credibility, Perceived Usefulness, Perceived ease of Use and Purchase Intention. So it is expected for future researchers to add other variables that are suitable and supporting this study.
According to the researchers, variables that might suitable and support this study are related to brands such as brand image and brand trust.
CONCLUSION
In conclusion, this research findings proves that: First, review credibility
significantly influence consumers to make purchase intention on K-Beauty products in Shopee. Second, perceived usefulness significantly influence consumers to make purchase intention on K-Beauty products in Shopee. And lastly, perceived ease of use significantly influence consumers to make purchase intention on K-Beauty products in Shopee.
SUGGESTIONS
First, Shopee’s marketing team should pay more attention on the online review’s credibility and usefulness of each market. Second, a strict evaluation activities towards online reviews and sellers will create a convenient marketplace ecosystem for potential consumers The result of this evaluation are expected to minimalize the risk of online shopping.
8 REFERENCES
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(2009). Credibility of Electronic Word-of-Mouth: Informational and Normative Determinants of Online Consumer Recommendations.
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Datareportal. (2021). Digital 2021: Indonesia.
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https://datareportal.com/reports/digita l-2021-indonesia
Davis, F. D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Quarterly, 13(3), 319-340.
Davis, F., Bagozzi, R. and Warshaw, P.
(1989). User Acceptance of Computer Technology: A Comparison of Two Theoretical Models. Management Science, 35(8): 982-1003.
Davis, F., Bagozzi, R. and Warshaw, P.
(1992). Extrinsic and Intrinsic Motivation to Use Computers in the Workplace. J. Appl. Soc. Psychol, 22(14): 1109-1130.
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Kuppelwieser, V. (2014). Partial Least Squares Structural Equation Modeling (PLS-SEM). European Business Review, pp. 106-121.
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Website Quality and Consumer Online
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Consumption Intentions. MDPI.
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Oh, Y. (2018). Pop City: Korean Popular Culture and the Selling of Place First Edition. New York, NY: Cornell University Press.
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10 APPENDIX
1. Nama :
2. Jenis Kelamin * : a. Perempuan b. Laki-laki 3. Usia * : a. 17 – 21 tahun
b. 22 – 26 tahun c. 27 – 31 tahun d. 32 – 36 tahun e. >37 tahun 4. Pendidikan Terakhir * : a. SMA
b. Sarjana/Diploma (S1) c. Magister (S2)
d. Pascasarjana (S3)
e. Lainnya, sebutkan: ………
5. Pekerjaan * : a. Pelajar/Mahasiswa
b. Pegawai Negri/TNI-POLRI c. Pegawai Swasta/BUMN d. Wiraswasta
e. Lainnya, sebutkan: ………..
6. Pendapatan Perbulan *: a. < Rp 1.500.000,00
b. Rp 1.500.000,00 – Rp 3.000.000,00 c. Rp 3.000.000,00 – Rp 4.500.000,00 d. Rp 4.500.000,00 – Rp 6.000.000,00 e. > Rp 6.000.000,00
11 7. Jumlah pengeluaran produk kecantikan dalam satu bulan *:
a. < Rp 100.000,00
b. Rp 100.000,00 – Rp 300.000,00 c. Rp 300.000,00 – Rp 500.000,00 d. > Rp 500.000,00
8. Berapa kali anda pernah melakukan belanja online melalui Shopee? * a. 1 – 5 kali pembelian
b. 6 – 10 kali pembelian c. 10 – 15 kali pembelian d. 15 – 20 kali pembelian
e. Lainnya, sebutkan: ………..
9. Apakah Anda selalu melihat fitur review yang ada di Shopee sebelum memutuskan untuk membeli suatu produk? *
a. Ya b. Tidak c. Sesekali saja
