ABSTRACT

THE EFFECT OF ELECTRONIC WORD OF MOUTH ON PURCHASE DECISIONS

OF ERIGO PRODUCTS THROUGH TIKTOK LIVE STREAMING AS AN
INTERVENING VARIABLE
Alfahri Nanda Rayanaldi Tampubolon
Faculty of Social Science and Political Science University of Riau
alfahri.nanda2221@student.unri.ac.id
Supervisor:
Dr. Ringgo Eldapi Yozani, M. I.Kom
TikTok Live Streaming is here as a new online shopping medium among the public. Tiktok Live
Streaming is a feature on social media TikTok where a content creator who already has 1000
followers can broadcast a live streaming that can be watched by all TikTok users. The presence
of TikTok Live Streaming is used by business people as a medium to market and sell their
products. TikTok Live Streaming then facilitates Electronic Word of Mouth activities which
have become a way for consumers to find information about the product they want. Electronic
Word of Mouth is an exchange of information in the form of feedback or feedback on products
or services carried out by consumers and carried out on digital platforms. The relationship
between Electronic Word of Mouth, TikTok Live Streaming and Purchase Decisions in this
study is explained through the Stimulus-Organism-Response theory with the basic assumption
of this theory that the cause of behavior change (response) depends on the quality of the
stimulus (stimulus) communicated with the communicant (organism). In this study, Electronic
Word of Mouth acts as a stimulus and Purchase Decision acts as a Response, while TikTok
Live Streaming, which is an intervening variable, acts as an organism. This study aims to study
the effect of Electronic Word of Mouth on Purchase Decisions for Erigo products mediated by
TikTok Live Streaming.
This research uses a quantitative approach with the type of explanatory research which
explains the causal relationship between the variables through hypothesis testing. The
sampling technique in this study was taken using a non-probability sampling method with
accidental sampling. In this study, the number of respondents was 120 people taken from the
ongoing viewing of Erigo Live Shopping. The data analysis technique in this study used the
Partial Least Square method based on covariance with the help of SmartPLS 3.0 software and
the hypothesis testing was carried out using bootstrapping techniques.
The results of this study indicate that the Electronic Word of Mouth variable has a positive and
significant effect on the TikTok Live Streaming variable by 81.2%. The Electronic Word of
Mouth variable also has a positive and significant effect on the Purchase Decision variable by
29.3%. In addition, the TikTok Live Streaming variable has a positive and significant effect on
the Purchase Decision variable by 43.2%. Finally, the Electronic Word of Mouth variable has
a positive and significant effect on the Purchase Decision variable mediated by TikTok Live
Streaming by 35.1%. The conclusion of this study is that the mediating role provided by TikTok
Live Streaming on the effect of Electronic Word of Mouth on Purchase Decisions is quasi-
mediation.
Keywords: Electronic Word of Mouth, TikTok Live Streaming, Purchase Decisions, Erigo Live
Shopping, Intervening Variable