Seminar Conferance Paper Gp1 (Shopee)

PURCHASING DECISION INFLUENCE SHOPEE USER TO ACHIEVE A FUTURE
SUSTAINABLE ECONOMY
1
Mohamad Shahidi Nasri Bin Mohd Soffi, 2Muhammad Iqbal Bin Mat Rapi, 3Adiba Marzuki
1-3
Business School, Universiti Kuala Lumpur,
1016, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia
Corresponding author: shahidinasri669@gmail, com
ABSTRACT
Keywords:
2023 | Purchasing Decision Influence Shopee User To Achieve A Future Sustainable Economy
1.0 Introduction
Purchasing decisions are made by consumers after weighing two or more different options. Aaker
(2008) defines, “purchasing decision indicators as buying stability, buying considerations, and
attribute conformity to wants and needs,” (Supiyandi et al., 2022). According to Kotler and
Armstrong (2008) in order to make a purchase, a consumer must go through five stages: experience
demands, information seeking, alternative evaluations, purchasing decisions, and post-purchase
behaviour (Nabilah, 2020). According to the research, due to the fierce rivalry in the market that has
arisen because of globalisation, both domestically and internationally, industry participants are turning
to e-commerce, or online sales, which makes use of internet technology (Nabilah, 2020). Indrajit
(2001) also supports this by stating that the factors driving industry growth, the use of internet
resources is also a result of the growing number of internet users and the technological advancements
that have occurred in alongside with this rise in internet users and e-commerce sales (Nabilah, 2020).
Presently, a lot of people are starting to move from traditional to online shopping. Online shopping
has numerous benefits, including the ability to purchase from virtually anywhere at any time and
without leaving the house, as well as a large assortment of goods (Supiyandi et al., 2022). According
to statistics on the number of people using mobile e-commerce applications and the number of people
visiting various websites, there is a wide variety of e-commerce platforms available to consumers.
Many people across the world are doing online shopping and this has resulted in many companies
listing their products in their websites like Shoppee, Lazada, Alibaba etc. Shoppee is a popular
website and frequently used by consumers world-wide. Shopee provides a range of goods and
services, from fashion to daily essentials. Shopee is available as both a mobile application and a
website, making it simpler for users to access it from their smartphones at any time and from any
location. This study will examine how customer reviews, trust, price and service quality influence
Shopee users' purchasing decisions.
1.1 Background Of The Research

Shopee is highly favored and frequently accessed by the younger generation known as millennials. An
online retailer called Shopee made its debut in Singapore in 2015 and has since expanded to many
Southeast Asian countries Shopee’s growth according to Nabilah, 2020, by the year 2017, 50
million people in 7 countries have downloaded the Shopee application and many of them are
from countries like Thailand, Taiwan, Malaysia, Vietnam, Indonesia, and the Philippines.
According to (Similarweb 2021), Shopee was the most popular marketplace website in Malaysia,
according to the most current rating data in November 2021.
It is a platform that is particularly developed to provide clients with a simple, secure, and speedy
online shopping experience, as well as thorough payment and logistical assistance. Using Shopee,
buyers and merchants can exchange products and services with ease thanks to its simple payment
system with a low fraud rate (Handayani & Usman, 2021). As an e-commerce site that is dedicated to
consumer-to-consumer sales, Shopee offers a few distinct characteristics that make it stand out from
the competition, such as consumer-to-consumer (C2C) tools and live chat tools that enable visitors to
connect with Shopee more easily (Kamila & Usman, 2021). Shopee is truly committed to delivering a
smooth and delightful online purchasing experience for its customers, and to be the region's e-
commerce platform of choice as online commerce becomes more prevalent and is set to be the top
online retailer in the region by the near future (Shanthi & Kannaiah, 2015).
1.2 Problem Statement

For this research, the problem statement chosen for the topic above is as follows:
“How does purchasing decisions influence Shopee users to achieve a future sustainable
economy?”
Purchase decisions are a major component in consumer behaviour (Tarmidi, et. al, 2021). It
plays a huge role in influencing e-commerce users especially Shopee users. Over the years, e-
commerce has become an important part of the economy due to the increased use of
technology and the innovation to create business online. According to Gan et. al, (2022) this
can be seen through the increased switch to e-commerce that had become mandatory for
entrepreneurs after the pandemic. E-commerce platforms such as Shopee has also become a
huge influence on the economy because of their rapid growth over the years which is owed to
the various strategies they have adapted to ensure consumers will choose their platform.
Shopee as a huge part of the e-commerce business can be utilized to achieve a sustainable
economy. This can be done through researching the habits of Shopee users, most importantly
the purchasing decision. As stated by Gonzola et.al. (2017), the purpose of this research is to
find the factors influencing purchasing decisions of Shopee users that can help in achieving a
future sustainable economy.
1.3 Research Questions
i. Is there any significant relationship between customer reviews and purchasing decision on
Shopee?
ii. Is there any significant relationship between trust and purchasing decision on Shopee?
iii. Is there any significant relationship between price and purchasing decision on Shopee?
iv. Is there any significant relationship between service quality and purchasing decision on
Shopee?
1.4 Research Objectives
i. To identify the relationship between customer reviews and purchasing decision on Shopee?
ii. To determine the relationship between trust and purchasing decision on Shopee?
iii. To investigate the relationship between price and purchasing decision on Shopee?
iv. To analyze the relationship between service quality and purchasing decisions on Shopee?
2.0 LITERATURE REVIEW
2.1 Theories on the Research Topic
2.1.1 Theory of planned behaviours
Some issues unresolved in the (TPB) theory of planned behaviours (Ajzen, 1985,1987) are discussed
and research covering various aspects is reviewed. It has been shown that empirical evidence supports
the theory in general. The attitudes toward behaviours, subjective norms, and perception of
behavioural control can be used to predict the intentions to perform a variety of behaviours with high
accuracy, and these intentions, along with perceptions of behavioural control, account for a
considerable amount of variance in behaviours. Several salient behavioural, normative, and control
beliefs about behaviours are related to attitudes, subjective norms, and perceptions of behavioural
control, but their exact nature is unknown. It is found that expectations and value formulations are
only partially successful when dealing with these relationships. As a solution to measurement
limitations, optimal rescaling is proposed for expectancy and value measures. As a final point,
including past behaviours can be used to test the theory's sufficiency, another unresolved issue. The
limited available evidence concerning this question shows that the theory predicts behaviours quite
well compared to the ceiling imposed by behavioural reliability.
2.1.2 Expectancy theory
According to Vroom (1964), the cognitive theory of motivation known as expectancy theory is based
on the subjectively rational behaviour of people (Talwar et al., 2021). According to the theory, people
weigh their options and select the one that will give them the most pleasant experience with the least
amount of discomfort. Baumann and Bonner (2017) mention that expectancy, instrumentality, and
valence are the three main elements of this theory, and they all work together to form a motivating
force (Talwar et al., 2021). Weber et al. (2020) explain that expectancy, a cognitive assessment
affected by individual characteristics and personal experience, is the subjective expectation that the
best option will result in a good outcome corresponding with the effort put forth (Talwar et al., 2021).
Baumann and Bonner (2017) also support this by stating, instrumentality refers to the influence of
behaviour on the result, suggesting that if a person performs well, the desired result will take place
(Talwar et al., 2021). The difference between the perceived value that individual connects with an
outcome at a particular time and the estimated expenses incurred to conduct the necessary actions is
known as value, which is an emotive component of the theory, both positive and negative valence
exist.
2.2 Hypothetical Development
To begin, a hypothesis is a preliminary prediction of the connection between the dependent and
independent variables. The theoretical framework in this study did not contain any mediating or
moderating factors. Nevertheless, in this study, the researchers will focus on determining whether
there is a significant association between each independent variable and the dependent variable.
2.2.1 Independent Variables
2.2.1.1 Price
Pricing is the sole component of the marketing mix that creates money all other components reflect
cost, according to Kotler and Armstrong (2016). Pricing is the sole component of the marketing mix
that generates revenue; all other components are expenses. Pricing is also the element of the
marketing mix that is most flexible. Pricing is erratic, as opposed to product characteristics and
channel agreements. Pricing is prioritized by marketing executives at the same time. A reoccurring
problem is that businesses are constantly looking for ways to improve sales by lowering prices rather
than persuading customers that their products are more valuable at higher rates. Price may also be
referred to as a customer's assessment of a product's value, according to Kotler and Armstrong (2006).
Price is the amount of money used to exchange goods or services in Abshor, Hasiolan, & Malik
(2018). Price is relative since it is based on a reference.
H1: There is a significant relationship between price and purchasing decisions.
2.2.1.2 Trust
The ability of a firm to rely on a partner is characterized by trust. Competence, integrity, honesty, and
compassion are just a few examples of the interpersonal and organizational variables that influence
trust (Kotler and Keller, 2018: 56). Jhon C. Mowen and Michael Minor (2018: 312) assert that
customer knowledge and any judgments they draw about products, features, and advantages are all
based on trust. According to Andromeda (2015), customer confidence in online shopping websites is
mostly based on how well-liked the websites are; the more well-liked a website is, the more
consumers will trust it to be reliable. Consumer expectations for a product are what drive customer
trust, which will be diminished or even destroyed when these expectations are not realized (Wijaya &
Warnadi, 2019). The actions and learning processes that influence consumers' purchasing behavior
result in the emergence of trust and attitude. A person's attitude towards something is a combination
of their motivation, perception, emotional state, and psychological processes, as opposed to their trust,
which is a notion that they have about something.
H2: There is a significant relationship between trust and purchasing decisions.
2.2.1.3 Customer Review
Customers have acquired a new strategy in the modern shopping world when it comes to determining
whether a brand is worth buying which is by looking up other customer’s opinions. Before the age of
internet some people depend on the word of mouth from other buyers. According to Agesti et. al,
Sutanto et. al (2016), defines online customer review as a form of electronic word of mouth and can
be said to be a new marketing communication that can influence and play a role in the purchase
decision process. Online customer reviews provide information about products and recommendations
from a consumer's perspective, which is important for consumers in making online purchases (Agesti
et. al, 2021). Therefore, customers unfamiliar with a new product will usually turn to the online
customer reviews as a reliable source of information for the products. Depending on the review, it can
be a huge factor in the customers’ purchasing decision. According to Erken and Elwalda (2019),
researchers have studied the effectiveness of customer reviews due to how customers use them.
H3: There is a significant relationship between customer review and purchasing decisions.
2.2.1.4 Service Quality
The term Service Quality is an association of two different words; „service‟ and quality. Service
means “any activity or benefit that one party can offer to another that is essentially intangible and
does not result in the ownership of anything”. Quality has come to be recognized as a strategic tool for
attaining operational efficiency and better performance of business (Ramya et. al, 2019). According to
Lee and Lin (2016), there has been research over the last two decades showing that service quality
influences consumption decisions and this discovery can also be applied in e-commerce. In other
words, the service quality demonstrated by an e-commerce section will have an impact on how
customers will decide their purchase. A good service quality in an e-commerce transaction such as in
Shopee play a role on influencing customers’ decisions.
H4: There is a significant relationship between service quality and purchasing decisions.
2.2.2 Dependant Variable
2.2.2.1 Purchasing Decision
Purchasing decision is define as someone's choice of whether to buy something and what to buy.
According to Kotler and Amstrong (2018) the consumer establishes preferences among the brands in
the choice set throughout the evaluation stage and may also decide to purchase the brand that is most
appealing to them (Agesti et al., 2021). Before making a purchase, it is important to do product
analysis activities, and online shopping enables consumers to compare products to discover those with
the best quality and satisfaction. Kotler and Keller (2016) explains that smart businesses understand
how customers behave when making purchases, leading to the development of a model for the buy
decision process (Et. al., 2021). According to Rozieqy & Arifin (2018) there are five roles in
purchasing decisions which is the initiator, carrier influence, decider, buyer, and user (Mbete &
Tanamal, 2020). It is particularly helpful to interpret essential components and consumer characters
since they have a big impact on how people feel about buying goods and services from the companies
that produce them. Kotler and Armstrong (2008) mention that there are five stages of the consumer
purchasing decision process, namely experience needs, information seeking, alternative evaluations,
purchasing decisions and post-purchase behaviour (Mbete & Tanamal, 2020). Kotler and Keller
(2008) support this by stating the buying process begins when an issue or need is identified by the
buyers as a result of internal or external triggers (Supiyandi et al., 2022). Customers have the option
to select from a range of products, providing a decision-making opportunity. Experimental consumer
research has shown that offering options to customers when there isn't just one can boost sales
dramatically (Supiyandi et al., 2022). The conclusion reached by the author is that consumers are
faced with an increasing number of options when deciding whether or not to purchase a product or
service. To assess the situation or the potential for measuring the occasional changes, purchasing
decision indicators might be used.
2.2.3 Theoretical Framework
The theoretical framework is a collection of interrelated concepts, like a theory but not certainly well
worked out. It is the structure that supports or holds a study concept and leads to an investigation. It
also explains why the situation under consideration occurs. Accordingly, the theoretical framework
serves as a bridge between independent and dependent variables during research focused on
explaining, predicting, and mastering phenomena such as relationships, occurrences, and behaviors
(Maimunah, 2022).
Figure 1.0 Theoretical Framework
Independent Variable Dependent Variable
Price
Purchasing
Trust
Decision
Customer Reviews
Service Quality
Source: Developed for the Research
3.0 Methodology
The research methodology is an important part of the research detailing how data is collected
and sorted to find the relevant conclusion for the hypothesis and topic of the research. It is
important to understand how data needs to be collected and analysed for the purpose of
finding the correlation between the independent variables and the hypothesis of this research.
For this research, primary and secondary data had been collected in order to find the relevant
information for this study. Primary data is the first-hand data collected through methods by
the researchers and belonging entirely to the researchers. Secondary data is data collected by
other people and found through journal articles, websites and other relevant sources for the
research. The data from these sources have already existed and used for this study to help the
researchers understand the topic of this research further.
To collect the primary data, researcher had used the quantitative method which can be easily
counted and measured. An online survey was made to collect primary data from the sample
population. This method is the easiest way to collect data and makes it easier to sort out the
data and measure them, making analysing much easier as well. Researcher came up with
questions relevant to the research for the online survey before sending them to be filled by the
target sample. The online survey was spread through internet and social media such as
Whatsapp, Instagram and Twitter. The sample size for this research is 102. Other than the
survey method, sampling technique was also used for this research.
After the survey was send out, researcher collected the answers from the respondents. The
answers were sorted into different categories based on different things such as the
independent variable of this research as well as the demographics of this respondent.
Separating the survey into different categories makes it easier to analyse the collected data.
The first section, Section A, sorted the respondents into different demographics such as
gender, age, race, monthly income and education level. This helps researcher understand the
population sample and the target of this survey. Section B has four different sections with 3
questions each, which are sorted into the four different independent variables. Section B is
sorted into Price, Trust, Customer Review and Service Quality. Respondents need to pick
which demographic they fall into for Section A. For the rest of the surveys, they have to pick
one choice from a 5-point Likert Scale. This method is used to understand how much
importance respondents, as Shoppee users places each independent variable influencing their
purchasing decision while shopping online. Finally, is Section C which contains question
about the dependant variables which is the customer’s purchasing decision.
The collected data was sorted and stored using the Statistical Package for Social Science
(SPSS) software to be analysed. Firstly, the data was examined for any errors and mistakes
made while respondents answered them. Any mistakes such as unanswered question or empty
survey results need to be checked before they are analysed in order to avoid any
miscalculations and inaccuracies in the final results.
Afterwards, the data was analysed using various techniques. The demographic data was
analysed using descriptive statistics while the data for the independent variables were tested
for their reliability level. Some of the techniques used include the Cronbach Alpha, Spearman
Pearson Correlation and Regression Test. By testing them on their reliability, researchers can
piece together the level of influence these independent variables have on the dependant
variable which is customer’s purchasing decision. Therefore, the analysis will lead to
researcher to see if their hypothesis for this research is correct or false.
4.0 RESULTS AND DISCUSSIONS
Based on the 102 respondents, only 100 respondents were found to be valid to use for further
analysis. This study assessed innovation and creativity to achieve a sustainable economy for
the customer demand of Shopee users. All the data from the questionnaire that is valid has
been transferred into the SPSS software for further analysis.
4.1 Demographic Profile (Descriptive Statistic Analysis)
Descriptive statistics (frequencies) were obtained to gather information for demographics

(Questions 1 to 6) based on gender, age, race, employment status, income level, and how
many times Shopee users used both the website and application use in this research.
1. Gender
Valid Cumulative
Frequency Percent Percent Percent
Valid Male 46 46.1 46.1 46.1
Female 54 53.9 53.9 100.0
Total 100 100.0 100.0
Table 4.1.1: Descriptive Statistic for Gender
2. Age
Valid Cumulative
Valid 18-23 years 35 35.3 35.3 35.3
old
24-29 years 33 33.3 33.3 68.6

old
30-35 years 17 16.7 16.7 85.3

old
36-40 years 9 8.8 8.8 94.1

old
41- 46 years 6 5.9 5.9 100.0

old
Total 100 100.0 100.0

Table 4.1.2: Descriptive Statistic for Age
3. Race
Valid Cumulative
Valid Malay 62 61.8 61.8 61.8
Chinese 21 20.6 20.6 82.4
Indian 18 17.6 17.6 100
Total 100 100.0 100.0
Table 4.1.3: Descriptive Statistic for Race
4. Employment Status
Valid Cumulative
Valid Employed 39 39.2 39.2 39.2
Unemployed 8 7.8 7.8 47.0
Retired 7 6.9 6.9 53.9
Student 27 26.5 26.5 80.4
Internship 20 19.6 19.6 100.0
Total 100 100.0 100.0
Table 4.1.4: Descriptive Statistic for Employment Status
5. Income Level
Valid Cumulative
Valid Less than 41 41.2 41.2 41.2
RM 1,000
RM 1,001 – 33 33.3 33.3 74.5

RM 2,000
RM 2,001 – 15 14.7 14.7 89.2

RM 3,000
More than 11 10.8 10.8 100.0

RM 3,001
Total 100 100.0 100.0

Table 4.1.5: Descriptive Statistic for Income Level
6. Frequency of use of Shopee Website/Application?

Valid Cumulative
Valid Everyday 24 24.5 24.5 24.5
Once a week 18 17.6 17.6 42.1
Twice a 19 18.6 18.6 60.7

week
Once a 28 28.4 28.4 89.1

month
More than 11 10.8 10.8 100.0

once a
month
Total 100 100.0 100.0
Table 4.1.6: Descriptive Statistics for Frequency Use Shopee Website/Application?
1) Gender:
Data from the descriptive statistics show that most of the respondents are Female with a
percentage of females 53.9 % and males 46.1%.
2) Age:
Most respondents are within the age group of 18-23 years old which is 35.3% followed by
the age of 24-29 years old 33.3%, 30-35 years old which is 16.7%, 36-40 years old which
is 8.8%, and 41-45 years old is 5.9%.
3) Race:
Most respondents are Malays with a percentage of 62% (n=62), followed by Chinese
which is 21% (n=21), and Indians at 18% (n=18) respectively.
4) Employment status:
Most respondents are employed with a percentage of 39% (n=39), followed by students
which are 27% (n=27), internship which is 20% (n=20), and unemployed which are 8%
(n=8) and retired 7% (7=2) respectively.
5) Income level:
Most respondents have an income level of less than RM 1,000 with a percentage of 41%
(n=41). Followed by RM 1,001 – RM 2,000 which is 33% (n=33), RM 2,001 – RM 3,000
which is 15% (n=15), and more than RM 3,001 is 11% (n=11).
6) Frequency of using the Shopee application:

Many respondents use Shopee once a month with a percentage of 28% (n=28). Followed by
every day which is 25% (n=25), twice a week which is 19% (n=19), once a week which is
18% (n=18), and more than once a month which is 11% (n=11).
4.2 Reliability Test
Table 4.2 Reliability Test Analysis
Independent No. of Item Cronbach Alpha Interpretation

Variables
Price 3 0.886 Very good reliability
Trust 3 0.864 Very good reliability
Customer review 3 0.839 Very good reliability
Service quality 3 0.832 Very good reliability
Dependent Variable No. of Item Cronbach Alpha Interpretation
Purchasing Decision 4 0.890 Very good reliability
Based on the table above, the independent variable with the highest Cronbach Alpha is the Price
variable with the value of 0.886 making it have a very good reliability. The next highest value is Trust
with the Cronbach Alpha of 0.864 which is also very reliable. The third highest independent variable
is Customer Review with 0.839 value for Cronbach Alpha and lastly is the independent variable
Service Quality with the lowest Cronbach Alpha value which is 0.832. The dependent variable which
is Purchasing Decision has Cronbach Alpha value of 0.890 which is very high reliability. Overall, all
the variables in this survey have high Cronbach Alpha value which makes the questionnaire used in
this research very reliable and acceptable.
4.3 Correlation
4.3.1 Correlation Analysis
Table 4.3.1 Correlation Analysis
Price Trust Online Service Purchasing

Review Quality Decision
Price Pearson 1 0.815 0.783 0.862 0.764
Correlation
Sig. (2-Tailed)
N
Trust Pearson 0.815 1 0.809 0.838 0.847
Correlation
Sig. (2-Tailed)
N
Customer Pearson 0.783 0.809 1 0.753 0.809
Review Correlation
Sig. (2-Tailed)
N
Service Pearson 0.862 0.838 0.753 1 0.756
Quality Correlation
Sig. (2-Tailed)
N
Purchasing Pearson 0.764 0.847 0.809 0.756 1
Decision Correlation
Sig. (2-Tailed)
N
Correlation is significant at the 0.01 level (2-tailed)
Based on the table 4.3.1, the results for the correlation analysis of the independent variables of this
study which is Price, Trust, Online Review and Service Quality all have quite high correlation with
the results being 0.764, 0.847, 0.809 and 0.756 respectively. The correlation scores all show the
independent variables working effectively and have relationship with the dependent variable,
Purchasing Decision. The independent variable with the strongest correlation with Purchasing
Decision is Trust with value 0.847.
4.3.2 Hypothesis Testing
Table 4.3.2: Hypothesis Testing
Hypothesis Significant value Correlation Relationship Decision

(p-value) Coefficient Strength
H1: There is a 0.000 0.764 High correlation Accepted
significant
relationship between
price and purchasing
decisions.
H2: There is a 0.000 0.847 Very high Accepted

correlation
significant
trust and purchasing
decisions.
H3: There is a 0.000 0.809 Very high Accepted

correlation
significant
customer reviews
and purchasing
decisions.
H4: There is a 0.000 0.756 High correlation Accepted

significant
service quality and
purchasing
decisions.
Based on the table 4.3.2, the p-value is 0.000 and considered insignificant. For hypothesis 1, there is a
rather high correlation with the Pearson correlation coefficient being 0.764 between the price and the
purchasing decisions which is considered statistically significant and making the hypothesis
acceptable. Next is hypothesis 2, where there is the highest correlation coefficient which is 0.847
between the trust from customers and purchasing decision which is statistically significant and
accepted by the research. Next is hypothesis 3, the Pearson correlation coefficient is also quite high
and positive correlation which is 0.809 between online review and purchasing decision making it
statistically significant and considered accepted. Lastly is hypothesis 4, the Pearson correlation
coefficient is also quite high and positive correlation which is 0.756 between the service quality of
Shopee and purchasing decision which is statistically significant and accepted by this study.
4.4 Regression
4.4.1 Model Summary
Table 4.4.1: Model Summary of Regression (R-squared)
Model R R Square Adjusted R Std. Error of the

Square Estimate
1 .875a .765 .755 .532584823984937
a. Predictors: (Constant), Customer Reviews, Trust, Price, Service Quality Influence
Source: SPSS Version 25
Based on table 4.4.1, R square is 0.765. This value indicates that 76.5% of the variance in customer
demand can be explained by the variable's customer reviews, trust, price and service quality influence.
It is required to have a difference between R-square and Adjusted R-square minimum. In this case, the
value of adjusted R Square is 0.755, which is not far off from 0.765, so it is good.
4.4.2 Summary of ANOVA
Table 4.4.2: Summary of ANOVA
Model Sum of Df Mean Square F Sig.

Square
Regression 89.551 4 22.388 78.928 <.001b
1 Residual 27.514 97 .284
Total 117.064 101
a. Dependent Variable: Purchasing Decision
b. Predictors: (Constant), Customer Reviews, Trust, Price, Service Quality
Source: SPSS Version 25
Based on table 4.4.2, the researcher assessed the p-value for the F-test to test the significance level of
total independent variables. The data indicates that the p-value is 0.001, which is lower than the
significance level of alpha value 0.05. It determines that all independent variables in the model
demonstrate too in tailored. Therefore, the coefficients of overall independent variables are
significantly equal.
4.4.3 Multiple Linear Regression
Normality Graph
Figure 1: Normality Graph
There is a normality in data because histogram is in similar shape as the standard normal graph.
The assumption is met or not violated.
Linearity

Figure 2: Linearity
There is linearity as the data fall around the linear. Therefore, this assumption is fulfilled.
Heteroscedasticity / Homoscedasticity

Figure 3: Heteroscedasity / Homoscedasity
This assumption is also met or not violated because the residual data is scattered in lopsided
rectangle manner.
1.5 Modelling (SmartPLS)
Figure 2: Prediction Model of SEM
Source: SMART PLS 3.3.3

The model above shown a direct path from customer reviews, trust, price and service quality
towards purchasing decision. In fact, all variables were significant with p-value below 0.05.
Accessibility contributes the highest coefficient value with 0.402.

I. A direct path from customer review towards the purchasing decision
II. A direct path from trust towards the purchasing decision
III. A direct path from service quality towards the purchasing decision
IV. A direct path from price towards the purchasing decision
5.0 Discussion
The study's aims are to see if there is a link between price, trust, customer reviews, and service quality
on Shopee. Furthermore, Google Forms and a quantitative method were used to administer the
questionnaires. In addition, the survey data was evaluated using SPSS Version 25.0 and SmartPLS
3.3.3 to determine whether each variable had a significant value. Furthermore, the data were evaluated
for the reliability and validity of the questionnaire survey, as well as hypothesis testing.
According to the survey results, 100 people in the public are aware of the purchasing
decisions made through Shopee's website and application. The regression analysis standardized
coefficients demonstrate the relevance of the independent variables, which are price, trust, service
quality, and customer review. Price is ranked as the most significant, followed by trust, and customer
review, and the least essential dimension is the service quality. The questionnaire's reliability was
examined using the reliability test to guarantee that each question in the questionnaire had an
appropriate consistency level. The result demonstrates that price has the greatest Cronbach's alpha (=
0.886) with a fair interpretation of the independent variable being dependable. Trust is ranked second
(= 0.864) with acceptable interpretation. The customer review (= 0.839), and finally, the lowest
Cronbach Alpha variable is service quality (= 0.832), with a logical explanation. The aggregate
cumulative Cronbach's alpha that we obtained is (= 0.890), indicating that purchasing decision for
Shopee is consistent.
Furthermore, the price has a positive relationship with purchasing decisions for using Shopee.
It concludes that the hypothesis is accepted using SPSS. The correlation analysis stated 0.764, which
is less among the independent variables. However, the relationship strength is a high correlation and is
considered acceptable. Purchasing decisions are influenced by how customers perceive prices and
what their current real price is, rather than by the price marketers communicate. Customers may have
a price value below the threshold when prices below that limit are of poor or unsatisfactory quality, as
well as an upper limit on pricing where prices over that limit are regarded exorbitant and
inappropriate to the money spent (Kotler & Keller, 2016).
Besides, trust has a positive relationship with purchasing decisions. The correlation analysis
stated 0.847, which is the relationship strength is a very high correlation and is considered an
accepted. A company's propensity to rely on a commercial partner is defined as trust. Interpersonal
and intra-organizational elements that foster trust include competence, integrity, honesty, and
compassion (Kotler and Keller, 2018: 56). Trust is defined as "all knowledge consumers possess, and
all conclusions’ consumers draw about products, attributes, and benefits" by Jhon C. Mowen and
Michael Minor (2018: 312). According to Andromeda (2015), consumer trust in online retailers
depends on the popularity of the websites themselves the better a website is, the more buyers have
faith in its dependability.
Next, customer reviews have a positive relationship with purchasing decisions. The
correlation analysis stated 0.809, which is the highest among the independent variables and the
relationship strength is a very high correlation and consider as accepted. Customer reviews are a type
of electronic word-of-mouth advertising used in online commerce. Through these evaluations,
previous customers who have used the product in question may be used to help prospective customers
evaluate it. (2014) (Filieri). Furthermore, Yasmin (2015) states that online customer reviews will
make it simpler for potential customers to compare products with those they plan to buy. Since this
eliminates the need for customers to travel to the seller in question, it will be simpler for customers to
make purchases.
And lastly, service quality has a positive relationship with purchasing decisions. The
correlation analysis stated 0.756, which is the relationship strength is high correlation and consider as
accepted. The idea of service is the outcome of a translation and a kind of fusion between the
customer's demands being identified and our own, which in turn results in planning. Service
adjustments involve the deployment of a service with the predetermined operating capacity (ability
and resources) in the distribution of services on both the provider and client sides. In addition, the
distribution service includes all of the provider's operations related to service consumption, such as
support and recovery services (Winkler & Wulf, 2019).
6.0 Conclusion
The conclusion that can be drawn from the study and data that is now available is that Shopee
customers' shopping choices can significantly influence the development of a sustainable economy in
the future. By choosing to make purchases from businesses that prioritize sustainability and
environmentally friendly practices, Shopee consumers may have an impact on the sustainable
business practices of other organizations. This may increase consumer demand for sustainable goods
and motivate other companies to use sustainable practices. Shopee customers may also make an
impact by forming sustainable purchasing habits, such as deciding to buy goods with less packaging,
supporting local producers, and cutting back on consumption in general. These initiatives can
encourage a more sustainable economy and help minimize waste. It is crucial to remember, however,
that building a sustainable economy necessitates collaborative effort by firms, consumers, and
politicians. Shopee consumers may help drive sustainability, but businesses and politicians must also
take action to solve environmental and social challenges.
As a result, hypothesis 1 is accepted, and there is a substantial association between customer reviews
and purchase decisions on Shopee. Where there is a considerable association between trust and
Shopee purchase decisions, Hypothesis 2 is likewise accepted. Following that, hypothesis 3 is
accepted: there is a substantial association between pricing and purchase decisions on Shopee.
Hypothesis 4 is also accepted since there is a substantial association between service quality and
Shopee purchase decisions based on the questionnaire data.
6.1 Limitations
Every research study will have defects and mistakes as they are done by humans and will contain a
human error. The weaknesses in this study stem from the short time to do proper research regarding
users of Shopee which is a huge sample of the population. The amount of data collected is not enough
to fully understand the users’ opinions regarding Shopee. Furthermore, this study was done using
Google form which has its own weakness as well and the results from it are not entirely reliable as the
answers chosen might not be fully considered by the people who answered it. By using Google
Forms, there were only a limited number of questions that were able to be put in the survey, which
was not enough to fully understand the population’s opinion on the topic and unable to fully cover the
scope. The surveys were also handed out using social media means which were also quite limited.
6.2 Recommendations
This topic is worth researching further for economic study as e-commerce is steadily growing and
have proven to be shaping up the future economy. For future researchers who are interested in doing
their own research for this topic, there are a few steps that they can take to fix the limitations for this
study. Firstly, the study should be done using a larger sample of population to get a more accurate
data and opinion for this topic. The data collection should be done by directly asking the sample
population to obtain a more honest and reliable answer and questions are not limited to the ones put in
surveys. More varied questions should be used when asking the population for data for this topic to
cover more aspect of this research topic that were not mentioned in this study. Lastly, the surveys
should be handed out using more applications to reach out to more people.
7.0 References
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Supiyandi, A., Hastjarjo, S., & Slamet, Y. (2022, February 8). Influence of Brand Awareness, Brand
Association, Perceived Quality, and Brand Loyalty of Shopee on Consumers’ Purchasing Decisions.
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Et. al., D. T. (2021, April 10). The Effect of Product Innovation and Price on Purchasing Decisions on
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APPENDIX
PURCHASING DECISION INFLUENCE SHOPEE USER TO

ACHIEVE A FUTURE SUSTAINABLE ECONOMY
We are final year students currently pursuing bachelor’s degree in University Kuala Lumpur
Business School. We would like to seek your corporation to take part in this survey. We are
doing survey regarding purchasing decision of Shopee user.
INSTRUCTIONS TO RESPONDENTS:
This questionnaire consists of 22 questions, and you are requested to answer all the questions in all
sections. Your response in answering this questionnaire will be treated strictly confidential and will be
used only for the purpose of this study. The information provided will not be forwarded or employed
by any other individual or organization.
----------------------------------------------------------------------------------------------------------------
SECTION A: Demographic
This section lists questions regarding your personal information. Kindly choose the best answer.
1. Gender:
❑ Male
❑ Female
2. Age
❑ 18-23 years old

❑ 24-29 years old
❑ 30-35 years old
❑ 36-40 years old
❑ 41-46 years old
3. Race
❑ Malay
❑ Chinese
❑ Indian
❑ Others
4. Employment Status
❑ Employed
❑ Unemployed
❑ Retired
❑ Student
5. Income Level
❑ Less than RM 1,000

❑ RM 1,001 – RM 2,000
❑ RM 2,001 – RM 3,000
❑ More than RM 3,001
6. Frequency of using Shopee application?
❑ Everyday
❑ Once a week
❑ Twice a week
❑ Once a month
❑ More than once a month
SECTION B: Independent variables (Customer Reviews, Trust, Price, Service Quality)
For this section and onwards, you need to pick one answer that related to your satisfaction and
the rate will be form:
Strongly 1 Disagree 2 Neutral 3 Agree 4 Strongly 5
disagree agree
No. Questions 1 2 3 4 5
IV 1 Price
7. Shopee ensures that their products were worth the
purchase price.
8. Shopee offers consumers with lower prices than its
competitors.
9. Shopee is known for offering their consumers with
special discounts and promotions.
IV 2 Trust
10. The information given about the products in Shopee is
trustworthy.
11. Shopee customers have a lot of trust for the e-commerce
platform.
12. Shopee customers can trust in communicating with the
sellers in the platform.
IV 3 Customer Review
13. Customers in Shopee often look up customer review of
the product they want to buy.
14. Shopee’s customer review is a viable source of
information for purchasing.
15. Shopee customer review is used to decide the
purchasing decision of the products there.
IV 4 Service Quality
16. Shopee is very reliable when it comes to provides quick
services and fast return rate.
17. Shopee take immediate action with any complaints that
users face in online shopping.
18. Shopee is very committed in ensuring the quality of
services in online shopping is maintained.
SECTION C: Dependent variable (Purchasing Decision)
No. Questions 1 2 3 4 5
19. I would like to purchase products from Shopee.
20. I would recommend Shopee to my family, friends, and

others.
21. I would like to purchase products from Shopee because it

is a reliable shopping channel.
22. I enjoy using Shopee both application and website.

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PURCHASING DECISION INFLUENCE SHOPEE USER TO ACHIEVE A FUTURE

Corresponding author: shahidinasri669@gmail, com

1.1 Background Of The Research

1.2 Problem Statement

1.3 Research Questions

2.0 LITERATURE REVIEW

2.1 Theories on the Research Topic

2.1.1 Theory of planned behaviours

2.1.2 Expectancy theory

2.2 Hypothetical Development

2.2.1 Independent Variables

H1: There is a significant relationship between price and purchasing decisions.

H2: There is a significant relationship between trust and purchasing decisions.

2.2.1.3 Customer Review

2.2.1.4 Service Quality

2.2.2 Dependant Variable

2.2.2.1 Purchasing Decision

Figure 1.0 Theoretical Framework

Independent Variable Dependent Variable

Source: Developed for the Research

4.0 RESULTS AND DISCUSSIONS

4.1 Demographic Profile (Descriptive Statistic Analysis)

Descriptive statistics (frequencies) were obtained to gather information for demographics

24-29 years 33 33.3 33.3 68.6

30-35 years 17 16.7 16.7 85.3

36-40 years 9 8.8 8.8 94.1

41- 46 years 6 5.9 5.9 100.0

Total 100 100.0 100.0

Unemployed 8 7.8 7.8 47.0

Retired 7 6.9 6.9 53.9

Student 27 26.5 26.5 80.4

Internship 20 19.6 19.6 100.0

Total 100 100.0 100.0

RM 1,001 – 33 33.3 33.3 74.5

RM 2,001 – 15 14.7 14.7 89.2

More than 11 10.8 10.8 100.0

Total 100 100.0 100.0

6. Frequency of use of Shopee Website/Application?

Once a week 18 17.6 17.6 42.1

Twice a 19 18.6 18.6 60.7

Once a 28 28.4 28.4 89.1

More than 11 10.8 10.8 100.0

6) Frequency of using the Shopee application:

4.2 Reliability Test

Table 4.2 Reliability Test Analysis

Independent No. of Item Cronbach Alpha Interpretation

4.3.1 Correlation Analysis

Table 4.3.1 Correlation Analysis

Price Trust Online Service Purchasing

Table 4.3.2: Hypothesis Testing

Hypothesis Significant value Correlation Relationship Decision

H2: There is a 0.000 0.847 Very high Accepted

H3: There is a 0.000 0.809 Very high Accepted

H4: There is a 0.000 0.756 High correlation Accepted

4.4.1 Model Summary

Table 4.4.1: Model Summary of Regression (R-squared)

Model R R Square Adjusted R Std. Error of the

a. Predictors: (Constant), Customer Reviews, Trust, Price, Service Quality Influence

Source: SPSS Version 25

4.4.2 Summary of ANOVA

Table 4.4.2: Summary of ANOVA

Model Sum of Df Mean Square F Sig.

Source: SPSS Version 25