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Volume: 7 Issues: 43 [September, 2022] pp.

571 - 586
International Journal of Accounting, Finance and Business (IJAFB)
eISSN: 0128-1844
Journal website: www.ijafb.com
DOI: 10.55573/IJAFB.074342

FACTORS INFLUENCING PRODUCT PURCHASE


INTENTION IN TIKTOK LIVE STREAMING SHOPPING
Fajar Ahmadi1
Herry Hudrasyah2
1
School of Business and Management, Institut Teknologi Bandung (SBM-ITB), Indonesia,
(E-mail: fajar_ahmadi@sbm-itb.ac.id)
2
School of Business and Management, Institut Teknologi Bandung (SBM-ITB), Indonesia,
(E-mail: Herry_hud@sbm-itb.ac.id)

Article history To cite this document:


Received date : 1-7-2022Ahmadi, F., & Hudrasyah, H. (2022). Factors
Revised date : 2-7-2022Influencing Product Purchase Intention in TikTok
Accepted date : 14-10-2022
Live Streaming Shopping. International Journal of
Published date : 15-10-2022
Accounting, Finance and Business (IJAFB), 7(43),
571 - 586.
___________________________________________________________________________

Abstract: Live streaming shopping allows customers to get the correct product information to
get their attention and ultimately increase online purchase interest. As one of the new and
emerging e-commerce in Indonesia, TikTok Shop provides a new way to approach potential
markets to its coverage and boost their sales through this unique marketing stream. The
primary data was gathered by conducting an interview with ten people and distributing the
questionnaire to 170 respondents. Findings show that price awareness and perceived
credibility have a positive effect on perceived attractiveness, while interactivity has a positive
effect on argument quality. In addition, price awareness, perceived credibilited attractiveness,
interactivity, and argument quality positively affect attitudes towards the product. Furthermore,
interactivity has the most substantial effect among other variables in the relationship. Finally,
attitude towards products has a positive effect impactchase intention.

Keywords: Live Streaming, Purchase Intention, Elaboration Likelihood Model (ELM)


__________________________________________________________________________

Introduction
The rapid internet development has created an avenue for customers to share and seek product
information from other customers (Ali, Hussin, and Dahlan, 2020). People nowadays get used
to doing everything mobile. They just have to click from the application on their smartphones.
They are checking the earliest news, ordering taxis, and even shopping. That is also because of
the large number of internet users in Indonesia. Recorded to the survey conducted by APJII in
2020, internet users in Indonesia have grown by 73,7% over the population.

The evolving internet innovation has transformed online selling activity to be more reachable
and efficient through e-commerce. According to Wong (2006), E-commerce is all the activities
including buying, selling, and marketing the products or services through an online electronic
system like radio, computer, or Internet. Even today, e-commerce technology has real-time
fusion shopping in its ecosystem. The live streaming feature is believed to boost marketing
campaigns and e-commerce economies (Sun et al., 2019). Live streaming lets customers get
the correct product information to get their attention and ultimately increase online purchase
571
Volume: 7 Issues: 43 [September, 2022] pp. 571 - 586
International Journal of Accounting, Finance and Business (IJAFB)
eISSN: 0128-1844
Journal website: www.ijafb.com
DOI: 10.55573/IJAFB.074342

interest. Live streaming has its advantages when compared to other online shopping strategies.
First, it is difficult for customers to rely on information derived from static images on traditional
e-commerce websites (Xu, Yan, and Zhang, 2019). Second, live streaming can provide images,
sound, and motion to convey product information (Wongkitrungrueng and Assarut, 2020).
Local and international e-commerce compete to adopt this feature on their respective platforms.
For example, in 2021, TikTok penetrated the Indonesian market with its live streaming and
short video-based e-commerce TikTok Shop.

TikTok has become one of the fastest-growing short video platforms in the world (Kaye, Chen,
and Zeng, 2021). Short-form of video usually starts with 15 seconds to 1 minute and can be
uploaded or shared with mutual. The short video lets users easily capture memorable moments
(Zhang, Wu, and Liu, 2019). According to research done by L. Ceci (2022) TikTok's daily
active user in Indonesia has become number two globally after the United States. The data
shows that there are more than 22 million Indonesian users. It shows how popular TikTok
between all Indonesian citizens. One of the reasons TikTok users in Indonesia are rising is
because the platform itself a new way to interact with followers, and they can get easily viral
quickly Internet.

There is a lot of opportunity in Indonesia’s TikTok market because of that high daily active
users. The development of TikTok in Indonesia and the large number of users have made
TikTok adopt TikTok Shop to the Indonesian market. There are two main selling activities: live
streaminto streaming short video. Livestreaming is a feature where a creator can record video
in a real timreal-time session and be viewed by othersers and potential followers can also
interact in live streaming with comments sections and give reaction to treact way can create an
active interaction between the host and the viewers.

In TikTok livestreaming session (TikTok LIVE), viewers, in this case, is potential customer
could ask instantly the hostfor the details of the products in comment section. If they do not
want to proceed the order, they could put the product to the cart and check out later. In practice,
many exclusive promotions can be provided by TikTok and sellers on Live. This keeps people
interested in staying longer while watching the video or session. Therefore, there is also present
a more passive selling actionty in TikTok, the activity is making such a short video to be
uploaded in the account. It can be product knowledge, promotion, giveaway or a live streaming
announcement. Along with the live streaming and short video feature, there is another affiliate
marketing feathat targets micro-influencer to help promote selected brands. This feature enable
seller to join collaboration with the requested content creator (influencer). The influencer then
starts to sell the product via their own live streaming and making short video plplatformso
promote the product. With the right influencer, it can affect the customer's engagement towards
the product or even the brand itself.

A previous study that covers livestreaming feature is done by Caet al.al, (2018) to see the
relationship of motivation towards the behavioral objective of the viewers in the live streaming
session. The results are shown that the objective of viewers to watch live streaming is related
with sustainability of personal examination, this means a power to replace a censor presence
without having to touch the product (Cai et al., 2018). It is also important to an e-commerce to
start using live streaming to increase a censor attribute and enlarge product information to the
customer (Cai and Wohn, 2019). Live streaming phenomenon is also delivering an experience
to the product that need fit size and product quality detail compared to the traditional e-
commerce where customer perceive high uncertainty. Uncertainty happens because people
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Volume: 7 Issues: 43 [September, 2022] pp. 571 - 586
International Journal of Accounting, Finance and Business (IJAFB)
eISSN: 0128-1844
Journal website: www.ijafb.com
DOI: 10.55573/IJAFB.074342

might wonder if they look good to wear specific dress or clothes or they might be unsure about
the trustworthiness of a seller. On the other side, live streaming e-commerce could remove this
uncertainty by providing information that relevant.

Host plays an important role in the live streaming (Lu and Chen, 2021). Host attractiveness and
how they communicate to the seller are believed to be the internal factors to impact the attitude
of the customer. Host also develop interactivity to convey the customer to watch longer and
stay until the end of the session (Hou et al., 2020). Interactivity and presence are system features
that should be considered as they enable smooth and effective way of communication (Liu, Bao
and Zheng, 2019). In addition, the sale might occur allegedly because the customer received
information from what was conveyed by the host when interacting, such as the quality of the
material, size number, or recommendations made by the host.

Practically, live shopping behavior routes into two ways of different customer (Cai et al., 2018).
The first type is the one that constructs their decision toward the product quality and
argumentation in using the product, whereas others purchase created by the influence of the
host appearance itself. In becoming live streaming seller, it is important to know which type of
customer that they would encounter. This research is aimed to identify the relationship of the
six determinants, which are perceived credibility, price awareness, perceived attractiveness,
argument quality, interactivity, and attitude toward product on purchase intention in TikTok
Shop.

Literature Review
This chapter will explain the concept of Interactivity, Perceived Credibility, Perceived
Attractiveness, Argument Quality, Livestreaming Shopping Attitude Towards Product, Price
Awareness, and Purchase Intention.

Interactivity
Interactivity means to the customer's subjective definition of high-quality interaction between
the seller. It also refers to how people interact in a real-time (Steure, 1993). Interactivity is a
key element of one effective online communication (Davison, Ou and Martinsons, 2013)
Previous study shows that interactivity has three components: (1) control, or parties that being
charged with the process of information change that has active control, (2) two-way, or the
communication differs to reciprocal way, (3) synchronicity, means the parties have degree in
which they are synchronous in communicate (Liu and Shrum, 2002). In e-commerce,
interactivity places a critical role in building a high-quality connection between the seller and
the customer (Davison, Ou and Martinsons, 2013).

Perceived Credibility
The source of credibility model was created by Hovland and Weiss in 1951. The degree to
which the receiver believes the source has the necessary expertise and/or experience to offer
impartial information is referred to as credibility (Belch and Belch, 2013). Source Credibility
refers to a communicator's favorable characteristics that influence the receiver's acceptance of
the message (Ohanian, 1990). This source's credibility and persuasiveness are determined by
two factors: knowledge and dependability (Hovland & Weiss, 1953; Belch and Belch, 2013).
Internalization occurs when a receiver accepts the viewpoint of a reputable communicator
because they feel the source's information is true (Belch & Belch, 2013).

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Volume: 7 Issues: 43 [September, 2022] pp. 571 - 586
International Journal of Accounting, Finance and Business (IJAFB)
eISSN: 0128-1844
Journal website: www.ijafb.com
DOI: 10.55573/IJAFB.074342

Perceived Attractiveness
Perceived of Attractiveness is seen as an element of the source valance model (Siegel et al.,
1986). According to Ohanian (1990), attractiveness refers to how sophisticated, gorgeous,
elegant, and sensual the source is. Attractiveness source motivates consumers to purchase
things (Riggio and Friedman, 1986). Persuasion occurs when the source of beauty motivates
the receiver to desire some form of connection with the source, and the recipient adopts
comparable ideas, attitudes, preferences, or behavior (Belch and Belch, 2013). Familiarity,
likeability, and likeness are all factors that contribute to attraction (Belch and Belch, 2013)

Argument Quality
Argument quality is defined as a piece of information that is crucial to establishing the true
genuine merits of the position taken (Petty et al., 2001). It also could define as the power of
persuasive argumentation (Eagly and Chaiken, 2007). By definition, argument quality means
the ability of someone to persuade and convince. In the live streaming context, the one that
communicates to the customer is the host. Strong argument quality with a high trustworthiness
personality could give a greater impact to the customer (Chu and Kamal, 2008)

Livestreaming Shopping Attitude Towards Product


Attitude in psychological definition refers to a mental and emotional entity which rely to a
person (Muchison, 1935). Attitude is a belief system established with the use of information
processing techniques (Fishbein and Ajzen, 1975). It could be formed from a person's past and
present. However, attitude happens to be stronger prediction rather than normative effect (Ryan
and Bonfield, 1980). In the live-streaming shopping, attitude toward the product is believe come
from two motivation: (1) utilitarian motivation, that means the person seek for the product
because of its functionality, instrumental, and practical for the needs, (2) Hedonic motivation,
it differs when someone face a subjective and emotionally satisfying experience related to the
shopping activity (Cai et al., 2018).

Price Awareness
In general, price refers to the value of items purchased with money or the amount of money
worth exchanging for a given product or service (Kotler and Armstrong, 2016). According to
Stanton (1997), there are four pricing indicators: price competitiveness, affordability, price to
quality, and price to benefit. Each indicator's definition provides a unique perspective on the
degree of pricing (Stanton, 1997). Price awareness can also be described as a consumer's
reluctance to pay for a supermarket item with distinguishing qualities if the price difference is
not worth enough in comparison to the difference or if the price difference is too high (Batra
and Sinha, 2000). Consumers in various countries and product brands may have varying levels
of price sensitivity.

Purchase Intention
Kotler & Keller (2008) defined purchase intention to something that arises after receiving a
stimulus from the product he sees, from there an interest arises to try the product until the desire
to buy it arises in order to have it. Meanwhile, according to Assael (2001), buying interest is
the tendency of consumers to buy a brand or take actions related to purchases as measured by
the level of possibility of consumers making purchases. Thamrin (2003) states that purchase
intention is part of the component of consumer behavior in consuming attitudes, the tendency
of consumers to act before deciding to buy.

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Volume: 7 Issues: 43 [September, 2022] pp. 571 - 586
International Journal of Accounting, Finance and Business (IJAFB)
eISSN: 0128-1844
Journal website: www.ijafb.com
DOI: 10.55573/IJAFB.074342

Elaboration Likelihood Model


Elaboration likelihood model (ELM) is a persuasive communication model that was first
developed by Richard E. Petty and John T. Cacioppo in 1986. In the ELM model, the underlying
assumption is that each person will process the message conveyed to him in a different way
(Petty and Cacioppo, 1986). ELM predicts how and when individuals will be affected or not
affected by the intent and content of the messages given to them (Littlejohn & Foss, 2008).
When someone gets a message, ELM will model how the characteristics of the message will
affect the formation of his attitude and then how he behaves (Ho and Bodoff, 2014). In one
situation, people judge a message deeply, carefully and with critical thinking, but in other
situations, they take the message quickly without considering the arguments underlying the
message. (Griffin, 2006).

Figure 1: Elaboration Likelihood Model (Petty and Cacioppo, 1986)

Research Design

Conceptual Framework
In this research, Elaboration Likelihood Model (ELM) will be the basis for the author to assess
and examine the variables that will be used to determine the effect on purchase intention in the
live streaming session. Price awareness, perceived popularity and perceived attractiveness is
were added to be the peripheral route of customer receiving message and affecting their attitude
towards the product. In other side, the central route would be only interactivity and argument
quality. Then the writer assumed there is a relationship between perceived attractiveness and
argument quality towards the attitude of the customer. Meanwhile, according to relevant
research and previous study, attitude towards the product also added to predict purchase
intention.

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Volume: 7 Issues: 43 [September, 2022] pp. 571 - 586
International Journal of Accounting, Finance and Business (IJAFB)
eISSN: 0128-1844
Journal website: www.ijafb.com
DOI: 10.55573/IJAFB.074342

Figure 2: Conceptual Framework

Research Hypothesis
H1 : Perceived Credibility has a significant positive influence on perceived
attractiveness towards purchase intention.
H2 : Price awareness towards product has a significant positive influence on perceived
attractiveness towards purchase intention.
H3 : Interactivity has a significant positive influence on building a comprehensive
argument quality towards live streaming shopping.
H4 : Perceived Attractiveness has a significant positive influence on live streaming
shopping attitude towards product purchase intention.
H5 : Argument Quality has a significant positive influence on live streaming shopping
attitude towards product to purchase intention.
H6 : Live streaming attitude towards product has significant positive towards purchase
intention

Research Methodology
In this study, the author will identify the influence and relationship between interactivity and
argument quality on fashion products in live streaming shopping. Simultaneously, this
relationship can help identify other variables which are also assumed to have an effect on
buying interest in fashion products, live streaming shopping, subjective norms, perceived
behavioral control, live streaming attitude, and price awareness. In collecting and analyzing
data in this research, the authors use a combined method (qualitatively and quantitatively) to
find out their views on the topics discussed in this research.

The author uses a survey to collect the required data from the respondents through a closed
ended questionnaire. The questionnaire used is only intended for people who have used live
streaming at least once for shopping. The survey method aims to collect information and it is
done by asking respondents (Malhotra, 2010). The population of this study is the number of
TikTok users in Indonesia. The total number of TikTok users in Indonesia has reached 22
million users with various distributions. the authors use non-probability sampling in this

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Volume: 7 Issues: 43 [September, 2022] pp. 571 - 586
International Journal of Accounting, Finance and Business (IJAFB)
eISSN: 0128-1844
Journal website: www.ijafb.com
DOI: 10.55573/IJAFB.074342

research. Purposive sampling was done because the authors used measurements and judgments
that not all respondents could answer. According to Hair (2010), if the sample size is too large,
for example 400, then the method becomes very sensitive, so it is difficult to get a good
goodness of fit measure. So it is suggested that the minimum sample size is 5-10 observations
for each parameter estimated. This research has 33 question indicators. Then the number of
samples that will be needed is 33 x 5 = 165 respondents. After collecting data from the
questionnaire that has been distributed, the authors collect the results in Microsoft Excel which
will later be transferred to smartPLS to process and develop this research. The analysis carried
out is reliability test, validity test, multi regression analysis, and path analysis.

Results and Discussions

Qualitative Result
Based on the overall results of the preliminary research conducted through the interview
method, the authors found that there are 6 factors that influence consumer buying interest and
deserve to be analyzed, these factors are price awareness, perceived credibility, perceived
attractiveness, interaction, argument quality and attitude towards the product.

Quantitative Result
The total sample obtained and tested was 170 people aged 21-30 years and had experience
buying through live streaming TikTok Shop.

Validity and Reliability Analysis


Validity test is conducted in order to determine the validity of constructed statement and question
used in the questionnaire. While for the indicators for each variable are developed according to
previous research. The validity test in this study is performed by factor analysis. The indicator is
stated as valid when the value of factor loading should be more than 0.5, Kaiser-Meyer-Olkin
(KMO) above 0.5 and the Bartlett's Test value must be less than 0.05. As for the calculation of
validity test for the research can be seen in the table below.

Table 1: Validity Result


Factor Extracted
Variable Indicator KMO Bartlett’s Test
Loading Variance %
PCA 1 0.737
Price Awareness
PCA 2 0.732
PC 1 0.621
Perceived
PC 2 0.691
Credibility
PC 3 0.808
PA 1 0.722
PA 2 0.789
PA 3 0.817
Price Awareness 0.778 0.000 66.839%
PA 4 0.798
PA 5 0.813
PA 6 0.790
IV 1 0.743
IV 2 0.778
Interactivity IV 3 0.604
IV 4 0.665
IV 5 0.761
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Volume: 7 Issues: 43 [September, 2022] pp. 571 - 586
International Journal of Accounting, Finance and Business (IJAFB)
eISSN: 0128-1844
Journal website: www.ijafb.com
DOI: 10.55573/IJAFB.074342

AQ 1 0.746
AQ 2 0.857
Argument
AQ 3 0.746
Quality
AQ 4 0.860
AQ 5 0.879
AT 1 0.774
AT 2 0.670
AT 3 0.775
Attitude Toward
AT 4 0.802
Product
AT 5 0.857
AT 6 0.848
AT 7 0.855
PI 1 0.818
Purchase PI 2 0.769
Intention PI 3 0.876
PI 4 0.863

Reliability test is carried out to measure the consistency and stability of the question's answer at
each valid questionnaire. Cronbach's Alpha is performed to test the reliability of the question's
answer. The data considered as reliable if the Cronbach's Alpha value is above 0.6. For this research
the Cronbach's alpha value in each variable shows the number greater than 0.6. This represents the
entire indicators are reliable. The result for reliability can be seen in the table below:

Table 2: Reliability Result


Variable Cronbach’s Alpha N of items
Price Awareness 0.809 2
Perceived Credibility 0.606 3
Perceived Attractiveness 0.768 6
Interactivity 0.737 5
Argument Quality 0.744 5
Attitude toward product 0.765 7
Purchase Intention 0.752 4

Direct Influence between Variables


Multiple-regression is executed to find the relationship between variables as presented in the
framework. Independent variables show significant influence or effect toward dependent
variable when the significance is below 0.05. Individual significance is also considered to
understand which independent variable individually influences the dependent. Also, the
individual beta value represents which independent variable gives a stronger effect compared
to the others. The Table 3 represents the summary of the result for the direct relationship
regression:

578
Volume: 7 Issues: 43 [September, 2022] pp. 571 - 586
International Journal of Accounting, Finance and Business (IJAFB)
eISSN: 0128-1844
Journal website: www.ijafb.com
DOI: 10.55573/IJAFB.074342

Table 3: Multiple Regression Result Summary


Dependent ANOVA Coefficient R²
Independent Variable
Variable F Sig β Sig
Perceived Perceived Credibility 0.274 0.000
18.950 0.000 0.185
Attractiveness Price Awareness 0.283 0.000
Argument
Interactivity 58.768 0.000 0.509 0.000 0.259
Quality
Perceived Credibility 0.176 0.007
Attitude Price Awareness 0.153 0.020
Towards Perceived Attractiveness 22.104 0.000 0.147 0.036 0.403
Product Interactivity 0.333 0.000
Argument Quality 0.171 0.020
Perceived Credibility 0.051 0.484
Price Awareness 0.094 0.200
Purchase Perceived Attractiveness 0.162 0.037
10.840 0.000 0.285
Intention Interactivity 0.040 0.630
Argument Quality 0.103 0.204
Attitude Towards Product 0.297 0.001

Table 3 shows the results from multiple-regression performed based on the proposed conceptual
framework. The four structures are adapted from research on similar themes around live
streaming on different platforms. Zhaoxing et al.,(2018) said that the source of attitude towards
products in live streaming shopping comes from Perceived Attractiveness and Argument
Quality. Perceived attractiveness can be measured through price awareness and perceived
credibility. Perceived credibility is how popular and trustworthy a seller is in the eyes of buyers
(Zhaoxing et al., 2018). Meanwhile, Price Awareness is believed to have an effect on buyer
interest in live streaming sessions (Lu and Chen, 2021). Factors of Perceived Attractiveness can
be adapted from the model created by Zhaoxing et al., (2018) when researching the topic of
live streaming on the Taobao app.

Figure 3: Direct Relationships to Perceived Attractiveness (Structure 1

The results of calculations on the structural model 1 show that two influencing factors have a
significant impact on perceived attractiveness. Simultaneously these two factors affect 18.5%
(R² value). The two factors, namely perceived credibility and price awareness, have a
significant value of less than 0.05. This means that the perceived attractiveness obtained by
buyers through watching live streaming sessions can be influenced by the credibility and prices
offered by the seller. Even so, in assessing which variable has the greater influence, researchers
can look at the two Beta values. That the Beta value of price awareness (Beta=0.283) is greater
than perceived credibility (Beta=0.274). Buyers perceive price as more important than
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Volume: 7 Issues: 43 [September, 2022] pp. 571 - 586
International Journal of Accounting, Finance and Business (IJAFB)
eISSN: 0128-1844
Journal website: www.ijafb.com
DOI: 10.55573/IJAFB.074342

credibility. Credibility can be measured through the buyer's perception of the smartness,
honesty and popularity of a buyer or host. The price offered also affects whether the price is the
lowest price or a small discount. So it can be concluded that when buyers feel trust in the seller
or host and see prices that match their criteria, it will also have an impact on the interest of the
entire live streaming session.

Figure 4: Direct Relationships to Argument Quality (Structure 2)

The structure model 2 describes the relationship between the independent variables of
interactivity. This model was adapted from research by Zhaoxing et al., (2018), which found
that the interaction made by the seller or the host to the buyer had an effect on the buyer's
understanding of the quality of the product received. Based on the R-value and significant value,
interactivity has a significant effect of 25.9% on argument quality.

Figure 5: Direct Relationships to Attitude Toward Product (Structure 3)

Based on the conceptual framework used, attitude towards product is predicted to have a direct
relationship with perceived credibility, price awareness, perceived attractiveness, interactivity,
and argument quality. The test results through the calculation of the significant value and R-
value found that these factors have a significant effect of 40.3%. Overall, among these factors,
the most influencing factors can be identified based on the B value in the order of largest to
580
Volume: 7 Issues: 43 [September, 2022] pp. 571 - 586
International Journal of Accounting, Finance and Business (IJAFB)
eISSN: 0128-1844
Journal website: www.ijafb.com
DOI: 10.55573/IJAFB.074342

smallest, namely interactivity (Beta = 0.333), perceived credibility (Beta = 0.176), argument
quality (Beta = 0.171), price awareness (Beta=0.153) and perceived attractiveness
(Beta=0.147). This can indicate that the buyer's attitude towards the product during the live
streaming session is strongly influenced by the quality of the interaction between the seller or
the host or the buyer. The interactions include how the seller communicates in two directions
and whether the buyer understands the information and then responds reciprocally or not.

Figure 6: Direct Relationships to Purchase Intention (Structure 4)

Based on the conceptual framework, purchase intention is believed to have an indirect and
direct relationship with perceived credibility, price awareness, perceived attractiveness,
interactivity, argument quality, and attitude towards the product. Based on the R-value, these
factors have an influence of 28.5%. The influence of each factor can be known through
understanding the Beta value. The factors that have the greatest influence in sequence are
attitude towards product (Beta = 0.297), perceived attractiveness (Beta = 0.167), argument
quality (0.103), price awareness (Beta = 0.094), perceived credibility (Beta = 0.051), and
interactivity (Beta= 0.040). Each factor has a significant effect with a sig value less than 0.05
except for the interactivity factor (sig = 0.630). It can be concluded that the direct influence of
the quality of interaction from the seller or host is not very significant on the buying interest of
buyers. Buyers pay attention to the quality of the interaction and affect the argument quality
and then attitude as an intervening variable that affects it.

Intervening Variables
In this study, the intervening variable is attitude toward product variable. Path analysis is
performed to know the total influence of perceived attractiveness and argument quality towards
purchase intention through attitude toward product as the intervening variables. The calculation
is shown on Table 4.
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Volume: 7 Issues: 43 [September, 2022] pp. 571 - 586
International Journal of Accounting, Finance and Business (IJAFB)
eISSN: 0128-1844
Journal website: www.ijafb.com
DOI: 10.55573/IJAFB.074342

Table 4: Path Analysis Result


Intervening Dependent Independent Indirect Total Direct Total
variable Variable Variable P1 P2 Indirect P3 Influence
Attitude
Purchase Perceived
Towards 0.147 0.297 0.443 0.162 0.605
Intention Attractiveness
Product
Attitude
Purchase Argument
Towards 0.171 0.297 0.467 0.103 0.570
Intention Quality
Product

The indirect effect is the sum of the beta value of the effect of perceived attractiveness on the
attitude towards the product of 0.147 and the beta value of the influence of the attitude towards
the product on the purchase intention of 0.297 so that the total indirect effect of 0.443 is
obtained. While the direct effect of perceived attractiveness on purchase intention is 0.162 so
that the total effect (direct and indirect) is 0.605.

The indirect effect is the sum of the beta value of the influence of the argument quality on the
attitude towards the product of 0.171 and the beta value of the influence of the attitude towards
the product on the purchase intention of 0.297 so that the total beta value of the indirect effect
is 0.467. Meanwhile, the direct effect of argument quality on purchase intention is 0.103 so that
the total beta value of the effect (direct and indirect) is 0.570. Overall it can be interpreted that
marketers can consider the strongest beta value, namely the perceived attractiveness factor
obtained by buyers and balance the quality of the argument.

Framework Summary
All data analysis explained in this chapter follows the proposed conceptual framework. All
variables were found significant in performing multiple linear regression and path analysis for
intervening variable.

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Volume: 7 Issues: 43 [September, 2022] pp. 571 - 586
International Journal of Accounting, Finance and Business (IJAFB)
eISSN: 0128-1844
Journal website: www.ijafb.com
DOI: 10.55573/IJAFB.074342

Figure 7: Framework Summary

In summary, the hypothesis of this research are all accepted (H1-H6). Using Path Analysis, the
writer could determine which factors that has significant towards another. Factor that has
p<0.05 is considered to have a significant impact. Price awareness has a significant impact on
perceived credibility and attitude towards product. Perceived credibility has a significant impact
on perceived attractiveness and attitude towads product. Perceived attractiveness has a
significant impact on attitude towards product and purchase intention. Interactivity has
significant impact towards argument quality and attitude towards product. Argument quality
has a significant impact on attitude towards product. Lastly, attitude toward product has a
significant impact on purchase intention.

Conclusion
In the current business era, technological advances by utilizing the live streaming feature have
been adopted by many e-commerce and are gaining popularity among buyers. In Indonesia,
TikTok is one of the e-commerce sites that combines this feature with updates that continue to
be made every time. The research was conducted qualitatively by interviewing 10 of different
people. These are the factors that the interviewee considered as one of the reasons to purchase
via live streaming TikTok, these factors are price awareness, perceived credibility, perceived
attractiveness, interaction, argument quality and attitude towards the product. This research also
conducted quantitatively by adopting the Elaboration Likelihood Model (ELM) method by
dividing the way buyers receive communication through two things: the central route and the
peripheral route. In the peripheral route, respondents are interested in using the live streaming
feature because of the price offered and how the customer saw in the host. This can be seen
from the preferences of buyers in assessing goods based on prices according to their choice and
whether or not they are seeing that the host is credible enough to sell the product. In the central
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Volume: 7 Issues: 43 [September, 2022] pp. 571 - 586
International Journal of Accounting, Finance and Business (IJAFB)
eISSN: 0128-1844
Journal website: www.ijafb.com
DOI: 10.55573/IJAFB.074342

route, respondents think that interactions made by the seller or host can influence them in
assessing a product. The quality of the interaction can be observed through the way the host
communicates with the audience. Good communication is a two-way communication and
messages can be conveyed properly. This should be a concern for business owner in conveying
interactive messages that are also full of meaning. In conclusion, the results of this study are in
line with the objectives that buyers perceive interaction quality as influencing argument quality,
price awareness and perceived credibility affect perceived attractiveness, perceived
attractiveness and argument quality affect attitude towards advertisement and attitude toward
advertisement influence purchase intention. All independent variables have a positive effect on
purchase intention through the intervening variable, namely attitude towards product.

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