P-ISSN: 2808-0467
E-ISSN: 2808-5051
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860 This work is licensed under CC BY-SA 4.0
ANALYZING FACTORS AFFECTING PURCHASE DECISION ON
SHOPEE USERS IN BEKASI
Nanda Syahtidar
1
, Suherman
2
, M. Edo S. Siregar
3
Faculty of Economics, State University of Jakarta, Jakarta, Indonesia
1
nanda.syahtidar@yahoo.com
2
suherman@feunj.ac.id
3
edosiregar@unj.ac.id
PAPER INFO ABSTRACT
Received:
February 2022
Revised: April
2022
Approved: April
2022
Background: The emergence of information and communication
technologies such as the internet has opened up new opportunities for the
spread and development of the use of online transactions.
Aim: This study aims to determine the influence of brand image, price, word
of mouth, and advertisement to purchase decisions of Shopee users.
Method: The method of data collection is using the survey method with
Likert-type purposive sampling. The object of this research is 200
respondents who are Shopee users in Bekasi. This research used SPSS
software version 24 and SEM (Structural Equation Modelling) AMOS
version 24 for data analysis. The fit value of the model with a probability
level of 0.525, CMIN/DF value of 0.988, GFI value of 0.928, AGFI value of
0.907, RMSEA value of 0.000, TLI value of 1.001, and CFI value of 1.000.
Findings: The result of the hypothesis show: (1) brand image has a positive
and significant effect on purchase decision, (2) price has a positive and
significant effect on purchase decision, (3) word of mouth has a positive and
significant effect on purchase decision, (4) advertisement has a positive and
significant effect on the purchase decision.
KEYWORDS
brand image, price, word of mouth, advertisement, purchase decision
INTRODUCTION
The widespread use of the internet is not only used by the people of Indonesia as an
alternative to finding various information, used as a means of communication but by the
community is also used to facilitate economic activities. The emergence of information and
communication technologies such as the internet has opened up new opportunities for the
spread and development of the use of online transactions. Reality states that Indonesian people
are now more and more people who use the internet in other words always increased every
time, the phenomenon makes trading through electronic media or e-commerce more and more
(Pratama, 2021). Shopee is one of the few companies that are experiencing development and
has a great opportunity when seeing the reality of increasing internet users in Indonesia.
Shopee is a platform or application founded by Forrest Xiaodong Li, with the realm of online
buying and selling movements, and can be used through a smartphone or computer. Riyadi
(Riyadi, 2019) stated that the product offerings provided by this application are very diverse,
ranging from clothing to products that are used to meet people's daily needs.
One of the phenomena experienced by Shopee is the decline in purchases and the number
of Shopee users in the first quarter of 2021. Iqbal (2021) explained that in March 2021 in
Indonesia Shopee experienced a drastic decrease in the number of uses and purchases on the
platform, so Shopee ranked second only to its competitor Tokopedia, with 117 million monthly
visitors and recorded a mastery of its marketplace traffic of 29.73%. Unlike Tokopedia, this
Analyzing Factors Affecting Purchase Decision on Shopee Users in Bekasi
861 Interdisciplinary Social Studies, 1(7), Apr 2022
online shopping application in March 2021 ranked number one with 126.4 million visitors and
a portion of traffic of 33.07% in Indonesia.
Marlius (2017) explained that the important thing for online buying and selling companies
that must be considered and remembered is the decision of consumers in making purchases, it
is said to be important because based on certain reasons, the purchase will be used as a
consideration by the company in executing the next marketing strategy. According to Suhari
(2008) the decision to buy someone will be made by involving several considerations, namely
alternative evaluation, information search, and introduction of needs. The three considerations
are influenced by certain factors, namely such as internal consumer factors, namely
psychological conditions that exist in consumers, then external factors that include the social
and cultural environment in which the consumer is social and influenced. stimuli of consumer
self-marketing. Ramli (2020) stated that purchasing satisfaction significantly affects and is
related to the business performance of a company. Therefore, it proves that customer purchase
decisions are an advantage that the company has in improving business performance and
obtaining competitive value in the market. In purchasing services and goods, consumers will
be influenced by certain factors. Among others are, the influence of advertising that serves, the
brand image attached to the product, word of mouth, and price.
Brand image by Tanady & Fuad (2020) is understood as something that is considered to
have a high urgency in the company's life, it must be considered because it can affect the
attitude of consumers when they want to make a decision to buy a company products or vice
versa. Brand image is defined as a representation or image of a consumer in compressing a
particular brand on the willingness of existing information and consumer experience of a
particular brand.
Another thing that needs to be considered by Armstrong et al (2014) is also emphasized,
namely the price of goods. The urgency of product prices in the dynamics of the company is
important to note because the price can increase the desire of buyers to make purchasing
decisions on a particular item or product. In simple terms, the price can be understood as the
nominal money set for the goods and services produced. But it can also be understood as the
total exchange rate for a particular good or service to meet the needs of the consumer.
Lay (2019) explained that the word of mouth made by customers is able to give influence
customers in deciding their purchase desires for a particular product. If viewed in terms of
definition, that word of mouth is understood as a form of conversation that leads to elements
of product marketing in an informal realm, technically word of mouth can occur using writing,
and can also occur verbally, namely in the form of advice or experience owned by a consumer
on a particular product.
Based on the affirmation expressed by Armstrong et al. (2014) that the position of
advertising in the dynamics of the company is very important because advertising will affect
the improvement of consumer decisions in purchasing a particular product. Advertising if
viewed from other definitions is understood as all forms of non-personal presentation and
promotion of goods, ideas, and services by paying for the advertising from the sponsor.
Based on the background above, the purpose of this study is to find out the influence of
brand image on Shopee user purchase decisions in Bekasi, the influence of prices on Shopee
user purchase decisions in Bekasi, the influence of word of mouth on Shopee user purchase
decisions in Bekasi, and the influence of advertising on Shopee user purchase decisions in
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862 Interdisciplinary Social Studies, 1(7), Apr 2022
Bekasi. It is expected to give more insight into how Shopee affects people in terms of economic
aspects, especially the purchase decision.
Hypothesis
Based on the background and theory underlying the research, the hypothesis of this study
is as follows:
H
1
: Brand Image has an influence on purchase decisions
H
2
: Price has influence over purchase decisions
H
3
: Word of Mouth has an influence on purchase decisions.
H
4
: Advertisement has an influence on purchase decisions.
METHOD
The place to be chosen for data collection is Bekasi. This research uses survey methods as
an effort to collect field data, namely using research instruments that have previously been
made and then distributed in the form of online questionnaires. This research establishes that
people who are domiciled in Bekasi and have used Shopee's online shopping apilikasi to shop
at least once in the past year as a research sample. The timing of this research is from October
to November 2021. This research uses purposive sampling as a sampling technique.
Furthermore, as many as 200 respondents by researchers were determined as the total sample
of research. Such a sample dose is in line with the affirmation of the total sample in the theory
initiated by Hair et al. (2018), which sets the sample size of 100-200 if using analysis of
structural modeling type or familiarly known as SEM analysis.
RESULTS AND DISCUSSION
Validity Test
This test is functionally used as an alternative to determining the validity level of a research
questionnaire. Referring to the idea of Malhotra et al. (2017) that the purpose of validity is to
confirm the significance of the correlation between one variable and another. By conducting a
validity test, researchers are able to find out the validity or feasibility of the statement items of
each variable performed in the study. By using factor analysis, the correlation that exists
invalidity can be known. This research uses factor analysis Exploratory Factor Analysis or
often abbreviated as EFA and factor analysis Confirmatory Factor Analysis is known as the
abbreviation CFA.
Each variable contained in the study has a loading factor number that represents. In
determining the value of factor loading based on the total sample in the study. The loading
factor value guidelines contained in the EFA are based on the number of samples used in the
research, in more detail, namely as written in the table below:
Table 1. Significant Loading Value EFA Based on Sample Count
Factor Loading
Sample Count
0.30
350
0.35
250
0.40
200
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863 Interdisciplinary Social Studies, 1(7), Apr 2022
Source: Hair et al., (2018)
Reliability Test
Matondang (2009) explained that this test is functionally used to see the level of confidence
in the results of several measurements of a single subject in the same. As long as the measured
subject does not change from the previous one, then the results obtained for the measurement
action are the same. Reliably a questionnaire can be understood when the answer to the
questionnaire is known to be consistent even though the questionnaire is distributed at the same
time.
This research uses Cronbach's Alpha method as an alternative to looking at the reliability
of questionnaires, namely by using certain limits in the test. The results of the reliability test
according to Priyatno (2010) are declared not good if the number found shows < 0.6 if a number
of 0.7 is found then the reliability is accepted, while the result of 0.8 can be interpreted as a
good questionnaire.
Table 2. Brand Image EFA Test
Name
Statement
Cronbach’s
Alpha
CM1
Shopee is a reliable online store
0.898
CM3
Shopee is a satisfying online store
CM4
Shopee is an online store that has a good reputation
CM5
I feel that Shopee is already known by many people
CM6
I feel that Shopee has a prestigious image
CM2
Shopee is an interesting online store
Source: Data processed by researchers
Based on the brand image variable table, the loading factor value found in all
questionnaires showed a figure of more than 0.40. The result can be interpreted that no
dimensions are formed and no indicators are omitted, then all indicators are declared valid. In
the reliability test table, it is shown that the results of each variable meet reliable requirements,
such an affirmation is due to all existing variables declared to have a good Cronbach's Alpha
value.
0.45
150
0.50
120
0.55
100
0.60
85
0.65
70
0.70
60
0.75
50
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Table 3. Price EFA Test
Name
Statement
Cronbach’s
Alpha
HA2
The products contained in this Shopee store have
competitive prices with other online stores.
0.895
HA3
The price of the product at Shopee is in accordance
with its quality
HA1
Products available at Shopee have affordable prices
Source: Data processed by researchers
Based on the brand image variable table, the loading factor value found in all instruments
shows a number of more than 0.40. The result can be interpreted that no dimensions are formed
and no indicators are omitted, then all indicators are declared valid. In the reliability test table,
it is shown that the results of each variable meet reliable requirements, such an affirmation is
due to all existing variables declared to have a good Cronbach's Alpha value.
Tabel 4. EFA Word of Mouth Test
Name
Statement
Factor
Loading
Cronbach’s
Alpha
WM4
I say positive things about this online store brand to
others
0.869
0.824
WM2
I often tell people about the positive experiences I
have had with this Shopee online store.
0.849
WM1
I would recommend Shopee products to someone
who asks for my advice
0.784
WM3
Because of my experience with Shopee, I tried to
persuade friends, family, and colleagues to switch to
this online store brand.
0.746
Source: Data processed by researchers
Based on the word of mouth variable table, the loading factor value found in all instruments
shows a number of more than 0.40. The result can be interpreted that no dimensions are formed
and no indicators are omitted, then all indicators are declared valid. In the reliability test table,
on the reliability test table, it is shown that the results of each variable meet reliable
requirements, such affirmations are caused by all existing variables declared to have a good
Cronbach's Alpha value.
Table 5. EFA Ad Test
Name
Statement
Cronbach’s
Alpha
IK1
Shopee ad theme is interesting or unique
0.903
IK6
Shopee's advertising style delivered in any media
caught my attention
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IK3
Persuasive Shopee ad messages
IK4
Music or accompaniment songs according to Shopee
ads
IK8
Shopee ad message caught my attention
IK7
Shopee ads remind me of the advanced Shopee
online application
IK5
Shopee ads provide information to me
IK2
Shopee ad stars attract attention
Source: Data processed by researchers
Based on the ad variable table, the loading factor value found in all instruments shows a
number of more than 0.40. The result can be interpreted that no dimensions are formed and no
indicators are omitted, then all indicators are declared valid. In the reliability test table, on the
reliability test table, it is shown that the results of each variable meet reliable requirements,
such affirmations are caused by all existing variables declared to have a good Cronbach's Alpha
value.
Table 6. EFA Test of Purchasing Decisions
Name
Statement
Cronbach’s
Alpha
KP2
I decided to shop at Shopee to fulfill my wish
0.874
KP1
I decided to shop at Shopee to meet my needs
KP3
I decided to shop at Shopee because I believe in
these products.
Source: Data processed by researchers
Based on the purchase decision variable table, the loading factor value found in all
instruments shows a number of more than 0.40. The result can be interpreted that no dimensions
are formed and no indicators are omitted, then all indicators are declared valid. In the reliability
test table, the results of each variable meet reliable requirements, such affirmations are due to
all existing variables declared to have a good Cronbach's Alpha value.
Confirmatory Factor Analysis (CFA) Test
This test is used to analyze existing research variables, namely trying to identify the
presence or absence of a relationship that is built from some of the research variables used, to
find out it then a correlation is done. In addition, the test was held to confirm the compatibility
of the measurement model with the research hypothesis. The results of the CFA research model
output are described below.
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866 Interdisciplinary Social Studies, 1(7), Apr 2022
Figure 1. Full Model SEM
Source: Data processed by researchers
Table 7. EFA Test of Purchasing Decisions
Index
Cut off Value
Result
Model Evaluation
P
≥ 0.05
0.027
Lack of Fit
CMIN/DF
≤ 2.00
1.183
Fitted
GFI
≥0,90
0.903
Fitted
AGFI
≥0,90
0.880
Lack of Fit
RMSEA
≤ 0.08
0.030
Lack of Fit
TLI
≥ 0.95
0.993
Fitted
CFI
≥ 0.95
0.985
Fitted
Source: Data processed by researchers
This test is carried out with the aim of seeing the suitability of the requirements on the
research variables that have been established before entering the next test stage. Based on the
results found after the full model test was conducted, it was declared not appropriate, this
affirmation was caused by the discovery of the non-fulfillment of the conditions in the existing
index, namely that the value of P is equal to 0.027, the value of AGFI is equal to 0.880, and
the value of RMSEA is equal to 0.030. Therefore, adjustments are needed so that models that
fit the index criteria can be found by researchers, in this way, a new hypothesis test can be
done.
Fitted Model
The researchers here re-modify existing models by removing some indicators that have
high error correlation values and the indicators that most often appear in accordance with the
guidelines for output modification indices and goodness of fit. Based on these references, a
latent construct model is obtained such as in figure 3.
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Figure 2. Fitted Model SEM
Source: Data processed by researchers
Table 8. EFA Test of Purchasing Decisions
Index
Cut off Value
Result
Model Evaluation
P
≥ 0.05
0.532
Fitted
CMIN/DF
≤ 2.00
0.988
Fitted
GFI
≥0,90
0.928
Fitted
AGFI
≥0,90
0.907
Fitted
RMSEA
≤ 0.08
0.000
Fitted
TLI
≥ 0.95
1.001
Fitted
CFI
≥ 0.95
1.000
Fitted
Source: Data processed by researchers
Based on the fitted tests that have been done on this model, the discovery of the value of
P is equal to 0.532, the value of CMIN / DF is equal to 0.988, the GFI value is equal to 0.928,
the value of AGFI is equal to 0.907, the value of RMSEA is equal to 0.000, the value of GFI
is equal to 0.928, the value of AGFI is equal to 0.907, the value of RMSEA is equal to 0.000,
the value of GFI is equal to 0.928. TLI is equal to 1,001, and the CFI value is equal to 1,000,
thus the research model is declared fit or appropriate.
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Hypothesis Testing
Table 9. The Results of Hypothesis Testing
Hypothesis
Free
Variables
→
Bound
Variables
C.R.
(t-value)
P
Standardized
Regression
Weights
Result
Hypothesis Test
H
1
Brand
Image
→
Purchasing
Decision
3.440
***
0.203
Accepted
H
2
Price
→
Purchasing
Decision
5. 330
***
0.341
Accepted
H
3
Word of
Mouth
→
Purchasing
Decision
4.774
***
0.329
Accepted
H
4
Advertisem
ent
→
Purchasing
Decision
4.234
***
0.303
Accepted
Source: Data processed by researchers
This test may refer to the p-value generated in its regression weight. The p-value must be
<0.005 or a CR value of >1.96. Values that meet p-value and CR can be said to be accepted
hypotheses and there is a significant relationship between constructs. After being tested for the
hypothesis, it turns out that the p-value and CR value meet the reference used. So, it can be
concluded that the entire relationship is said to have positive results and significance between
constructs.
The p-value generated at regression weight will be a reference. The p-value criteria must
be <0.05 or the C.R. (Critical Ratio) value of >1.96. If the value obtained has met the p-value
and C.R. (Critical Ratio), then the hypothesis can be said to be accepted and there is a
significant relationship. After analyzing primary data on brand image, price, word of mouth,
and advertising of consumer purchasing decisions on Shopee in Bekasi. Then the conclusions
that can be drawn are as follows:
1) H
1
: The brand image variable or symbolized by X
1
, significantly gives a positive effect
on purchasing decisions or symbolized by Y. Based on testing, standardized regression
weights of 0.203 were found. The figure can be interpreted that the relationship
between brand image and purchasing decisions directly affects, the influence given is
20.3% or also written with a decimal number of 0.203, while the critical ratio number
is 3,440 which means there is a significant influence, and the value of P or probability
is 0.000, thus it has met the criteria P which is obtained the number < 0.05. The
conclusion is that H
1
is declared by the accepted researcher;
2) H
2
: The price variable or symbolized by X
2
, significantly gives a positive effect on
purchasing decisions or symbolized by Y. Based on the test, it was found that the
standardized regression weights value of 0.341 which means that the relationship
between the price and the purchase decision directly affects with a percentage of
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34.1% or if it is reduced to 0.341, and a critical ratio of 5.330 which means there is a
significant influence, and the value of P or probability is 0.000, thus it has met criterion
P where the number < 0.05 is obtained. The conclusion is that H
2
is declared by the
accepted researcher;
3) H
3
: The word of mouth variable or symbolized by X
3
, significantly gives a positive
effect on purchasing decisions or symbolized by Y. Based on the test, it was found that
the standardized regression weights value of 0.329, the figure carries the meaning that
the relationship between word of mouth and purchasing decisions directly affects with
a percentage of 32.9% or if it is maximized to be 0.329, and a critical ratio of 4.774
which means there is a significant influence, and the value of P or probability is 0.000,
thus it has met the criteria P which obtained the number < 0.05. The conclusion is that
H3 is declared by the accepted researcher;
4) H
4
: The advertising variable or symbolized by X
4
, significantly gives a positive effect
on purchasing decisions or symbolized by Y. Based on testing, it was found that the
standardized regression weights value of 0.303, the figure means that the relationship
between advertising and purchasing decisions directly affects with a percentage of
30.3% or if it is reduced to 0.303, and a critical ratio of 4.234 which means there is a
significant influence, and the value of P or probability is 0.000, thus it has met criterion
P where the number < 0.05 is obtained. The conclusion is that H
3
is stated by the
accepted researcher.
Brand Image of Purchasing Decisions
Based on findings in the field, the brand image variable against the purchase decision with
standardized regression weights is equal to 0.203, while the Critical Ratio value or known by
the abbreviation C.R is equal to 3,440 and is expressed > 1.96, then the value of P or probability
is 0.000 thus it has met the criteria P which is obtained the number < 0.05. This fact means that
the first hypothesis with the sound of a mere image significantly exerts a positive influence on
the purchase decision is declared accepted in this case. This fact is in line with the research of
Solihin et al. (2021) and in line with Ristanti & Iriani’s (2020) research that brand image
significantly has a positive influence on consumer purchasing decisions.
The above findings can be concluded, if the company's image is considered good and able
to captivate the hearts of consumers, then consumer interest in the company's products will
arise and consumers will buy products with the same brand issued by the company. The advice
from the above statement is that Shopee is expected to improve its brand image in order to
improve consumers' views of Shopee.
Price to Purchase decision
Based on findings in the field, the price variable against the purchase decision with
standardized regression weights is equal to 0.341, while the critical ratio value or known by
the abbreviation C.R is equal to 5,330 and is expressed > 1.96, then the value of P or probability
is 0.000 thus it has met the criterion P where the number < 0.05 is obtained. This fact means
that the second hypothesis with a price sound significantly exerts a positive influence on the
purchase decision is declared acceptable in this case. This fact is in line with Puspita &
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Suryoko's research (2017) and in line with Sari & Yuniati's research (2016) that price
significantly affects consumer purchasing decisions.
The conclusion of the above statement is that when consumers see the price owned by
Shopee is reasonable, then consumer interest in the company's products will arise and
consumers will buy products with the same brand issued by the company. The advice from the
above statement is that Shopee is expected to be able to improve the performance the quality
of its services so that consumers feel the price they pay is appropriate or reasonable.
Word of Mouth to Purchase Decisions
Based on the findings in the field, the word of mouth variable against the purchase decision
with standardized regression weights is equal to 0.329, while the Critical Ratio value or known
by the abbreviation C.R is equal to 4.774 and is expressed > 1.96, then the value of P or
probability is 0.000 thus it has met the criteria P which is obtained the number < 0.05. This fact
means that the third hypothesis with the sound of word of mouth significantly exerts a positive
influence on the purchase decision is declared accepted in this case. This fact is in line with
Aries & Sunarti’s research (2018) and in line with Nuprilianti & Khuzaini’s (2016) research
that word of mouth significantly affects consumer purchasing decisions.
The conclusion of the above statement is that the word of mouth made by consumers is
able to settle purchasing decisions from other consumers against products from a brand. The
advice from the above statement is that Shopee needs to create a new strategy so that consumers
want to convey information about Shopee to others.
Advertising against purchasing decisions
Based on the findings in the field, the advertising variable for the purchase decision with
standardized regression weights is equal to 0.303, while the critical ratio value or known by
the abbreviation C.R is equal to 4,234 and is expressed > 1.96, then the value of P or probability
is 0.000 thus it has met criterion P where the number < 0.05 is obtained. This fact means that
the fourth hypothesis with the sound of advertising significantly exerts a positive influence on
the purchase decision is declared acceptable in this case. This fact is in line with Setiawan &
Rabuani's research (2019) and in line with Yunita's research (2012) that advertising
significantly affects consumer purchasing decisions.
The conclusion of the above statement is that advertising is persuasive and able to foster
consumer interest in the product and can increase the decision of the ministry to buy a particular
company's products. The advice from the above conclusion is that Shopee needs to improve
the delivery of information in the promotions carried out so as to attract the attention of Shopee
consumers.
CONCLUSION
Based on the findings in the field, a significant positive influence is given brand image
over consumer decisions in buying a product through Shopee. This states that the consumer's
decision to buy a product will be maximized along with the good brand image of the product.
Field facts show that a significantly positive influence is given the price on consumer decisions
in buying a product through Shopee. This fact means that the more reasonable the nominal
price set on a product, the more optimal the consumer's decision to buy the product. Field facts
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show that significantly positive influence is given word of mouth on consumer decisions in
buying a product through Shopee. This fact means that word of mouth is done well, able to
maximize consumer decisions to buy products. Field facts show that a significantly positive
influence is given advertising on consumer decisions in buying a product through Shopee. This
fact means that the product is advertised with attractive packaging, then the decision of
consumers to buy the product is getting maximum.
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