P-ISSN: 2808-0467
E-ISSN: 2808-5051
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VISUAL MERCHANDISING, CELEBRITY ENDORSERS,
ADVERTISEMENT CREATIVITY, AND E-SERVICE QUALITY ON
NETFLIX PURCHASE DECISION
Wilda Ayu Putri Mardani
1
, Wenti Krisnawati
2
Muhammadiyah University of Gresik, Gresik, Indonesia
1
wildaayupm@gmail.com
2
PAPER INFO ABSTRACT
Received:
February 2022
Revised: March
2022
Approved: March
2022
Background: Advances in technology are not foreign to us. Over time,
technology is growing rapidly and rapidly, making it easier for people to
access and utilize technology. The development of technology, especially in
the field of information, has an impact on several sectors of life, including
the economic, social, and cultural sectors.
Aim: This research aims to find out the influence of Visual Merchandising,
Celebrity endorsers, ad creativity, and E-service Quality on the purchase of
the Netflix video streaming app.
Method: Using 100 respondents as a sample. The study used multiple linear
regression analysis using four hypotheses. Test the hypothesis using the t-test
with a signification level of 0.05.
Findings: The calculation results showed that the free variables namely
Visual Merchandising, Celebrity Endorser, Creative Advertising, and E-
Service Quality partially positively affected the purchase number with
signification numbers below 0.05. Based on the results of the analysis, it is
expected that Netflix can improve Visual Merchandising, Celebrity Endorser,
advertising creativity, and E-service Quality. This will increase the number
of purchases of the Netflix video streaming app.
KEYWORDS
visual merchandising; celebrity endorser; advertisement creativity; e-service
quality; purchase decision
INTRODUCTION
Technological progress is not unfamiliar. Over time, technology is growing rapidly and
rapidly, this makes it easier for people to access and utilize technology. The development of
technology, especially in the field of information, has an impact on several sectors of life,
including the economic, social, and cultural sectors. The results of a survey conducted by IDN
Research Institute and Alvara Research Center on 1,400 millennials in 12 major cities in
Indonesia with several findings, including millennials' lives cannot be separated from gadgets
or smartphones, most millennials state that the goods touched first after waking up are
smartphones (Harususilo, 2019). People's new habits with the internet certainly affect several
things, one of which is economic life. This has an impact on the use of the internet to meet
people's needs and has an impact on people's purchasing behavior towards something.
According to Kotler and Keller (2009), consumer behavior is the study of how individuals,
groups, and organizations choose, buy, use goods, services, ideas, or experiences to decide
needs and desires. Daily life that can no longer be separated from internet technology causes
all need to depend on internet access, communication, purchasing goods, meeting
entertainment needs, and using internet services, such as watching movies. It can be concluded
that there has been a shift in the way people watch movies from using conventional television
Visual Merchandising, Celebrity Endorsers, Advertisement Creativity, and E-Service Quality On Netflix
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774 Interdisciplinary Social Studies, Vol(No), Nov 2021
to using streaming on the internet. This causes many applications or websites that can be used
to access movies. One of them is Netflix.
Netflix is one of the most popular apps for movie lovers. Headquartered in Los Gatos,
California. It was founded in 2008 by Reed Hasting and Marc Randolph in Scotts Valley,
California (Netflix – Wikipedia). Netflix became the paid video streaming app with the most
subscribers compared to any other app in 2020 with the following data:
Source: databoks.katadata.co.id (2020)
Figure 1. Number of Paid Streaming Video Subscribers (2020)
This is also supported by graph data on the increase in the number of Netflix subscribers
in the last four years with the following data:
Source: databoks.katadata.co.id (2020)
Figure 2. Number of Netflix Streaming Subscribers in Indonesia 2017-2020
The switch to how to watch or access movies from conventional television to video
streaming and the increasing number of subscribers of the Netflix streaming application
became a phenomenon in this study. Netflix has an interesting and accessible app display, this
is because Netflix pays attention to its Visual Merchandising. Pancaningrum (2017) defines
Visual Merchandising as the presentation of a store or brand and merchandise to customers
through a work team from store advertising, displays, certain events, fashion coordination, and
merchandising departments to sell goods and services offered by store outlets. Visual
Merchandising on Netflix can be seen from the Netflix logo, theme design on the application,
font selection, color, and the menu layout on the Netflix application display.
0
50
100
150
200
Netflix Amazon
Prime
Tencent
Video
iQiyi Youku Disney Viu Alt Balaji Hulu Eros Now
Users of Paid Streaming Video Platforms (2020)
Users (Million)
0
200,000
400,000
600,000
800,000
1,000,000
2017 2018 2019 2020
Users of Paid Streaming Video Platforms in Indonesia (2017-
2020)
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775 Interdisciplinary Social Studies, Vol(No), Nov 2021
In addition to the Visual Merchandising variable, here is also a Celebrity Endorser
variable. Celebrity Endorser is the use of artists as advertising stars in media, ranging from
print media, social media, and television media (Shimp, 2003). Netflix uses artists and film
players in Indonesia and abroad implicitly as their Celebrity Endorsers by promoting the films
they star in. It can also provide an advantage for the cast of the film because it can be a medium
for the promotion of their films.
Efforts to increase the users of the Netflix application to be wider, of course, Netflix also
uses advertising as a promotional medium. Advertising creativity is translating various
information about the product, the market, against the target consumer to formulate the product
(Kasali, 1995). Netflix is quite active in processing its social media. On Netflix's Instagram
social media account, Netflix.
In addition to Visual Merchandising, Celebrity endorsers, and ads that Netflix is trying to
maximize to get more subscribers, there is another factor that is very important for the
continuity o this video streaming application, namely E-Service Quality. E-service quality is
a meeting between consumer expectations without direct interaction in the services provided
(Dolatabadi, 2012). The E-Service Quality that Netflix has provided so far can be felt starting
from the service when we register an account to subscribe. Netflix provides short but clear
information instructions to be easily understood by customers and can help customers register
independently.
Based on this background, this research will prove the "Influence of Visual Merchandising,
Celebrity Endorser, Advertising Creativity and E-Service Quality on the purchase decision of
the Streaming Video (Netflix) application."
Relationships Between Variables and Hypotheses
Visual merchandising is a term used in product management that pays great attention to
the appearance of products in retail stores to get the best profit. Visual Merchandising is
expected to increase consumer interest in products by making them more visible to consumers
in-store or online.
H
1
: Visual Merchandising affects video streaming app purchase decisions (Netflix)
Shimp (2003) stated that Celebrity endorsers are figures (actors, entertainers, or athletes)
who are famous by the public for their achievements in the field of supported product
categories. This is in line with Mmiftahurrahman’s (2020) research entitled The Influence of
Celebrity Endorsers, Prices, and Product Innovation on Jambi batik purchase decisions. It was
concluded that Celebrity Endorser had a positive influence on purchasing decisions. Then it
will affect consumer purchasing decisions against something promoted by celebrity endorsers.
H
2
: Celebrity Endorser influences video streaming app purchase decisions (Netflix).
Advertising creativity is the translation of various information about products, markets,
and target consumers into specific positions in communication, which is then used to formulate
advertising purposes, therefore, when viewed from any angle, creative advertising strategies
cannot be separated from the overall marketing strategy (Kasali, 1995). The more creative the
advertisements are created, the more likely it is that consumers will be interested and buy the
advertised product.
Visual Merchandising, Celebrity Endorsers, Advertisement Creativity, and E-Service Quality On Netflix
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776 Interdisciplinary Social Studies, Vol(No), Nov 2021
H
3
: Advertising Creativity affects video streaming app purchase decisions (Netflix)
E-service quality is defined as the meeting between consumer expectations without direct
interaction in the services provided (Dolatabadi, 2012). This online service is expected to
provide consumers with quality services that meet their needs and expectations of consumers.
E-Service Quality is also expected to be useful to maintain good relations with consumers and
it is expected that there will be buyers back from consumers for the products or services offered.
H
4
: E-Service Quality affects video streaming app purchase decisions (Netflix)
RESEARCH FRAMEWORK
Figure 1. Research Framework
METHOD
The type of research used is quantitative research where quantitative research is research
that emphasizes more on numbers and analytical techniques using statistics assisted by the
SPSS program. The research site is located at the University of Muhammadiyah Gresik, Gresik
Regency, East Java Province. Population according to Sugiyono (2015) is a generalization area
consisting of subjects or objects that have certain qualities and characteristics set by researchers
to be studied and then drawn to conclusions. The population in this study is a Students of the
University of Muhammadiyah Gresik who knows Netflix with an unknown population. The
population of this study is not known with certainty. So that the number of samples taken as
many as 100 respondents. Cooper and Emory (1996) argue that the basic formula for
determining the sample size of probability assumes that the population is unlimited where as
many as 100 people drawn from a population of 5000 roughly have the same estimate as 100
samples taken from 200 million populations. Sampling is done by nonprobability sampling.
The procedure used is to use Purposive sampling with the criteria of Muhammadiyah Gresik
University students who are or have used a video streaming application (Netflix). The data
source is obtained from primary data where the data is taken directly from the respondent,
namely through filling out a questionnaire. The data measurement technique used is the interval
scale, then in this questionnaire using a Likert scale with a score of 1-5. Testing of research
instruments is carried out by Validity and Reliability Tests. Classical assumption testing uses
normality tests, multicollinearity tests, and heterocedoxity tests. Using multiple linear
regression analysis as well as hypothesis tests is carried out with determination coefficient tests,
and statistical tests-t.
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RESULTS AND DISCUSSION
Respondents in this study were Netflix users who were students of the University of
Muhammadiyah Gresik. With a sample of 100 respondents who subscribed to or subscribed to
Netflix, through a list of statements (online questionnaires) data was obtained from
respondents. The classification conducted on respondents in this study aims to know clearly
about the picture of respondents as research objects. An instrumented test is a test of the validity
of data whether the data is suitable for research or not.
The validity test in this study can be calculated if r calculates > r table and positive value
then the statement is declared valid or by looking at the signification number with the provision
that if the sig is below 0.05 then the questionnaire can be said to be valid and if the signification
number is greater than 0.05 then it can be categorized as invalid. The following are the results
of the validity of the study:
Table 1. Validity Test Results
Variable
Statement
r
tabel
r
count
Sig.
Information
Visual Merchandising (X
1
)
P1
0,1966
0,873
0,000
Valid
P2
0,1966
0,837
0,000
Valid
P3
0,1966
0,887
0,000
Valid
P4
0,1966
0,883
0,000
Valid
Celebrity Endorser (X
2
)
P5
0,1966
0,875
0,000
Valid
P6
0,1966
0,876
0,000
Valid
P7
0,1966
0,933
0,000
Valid
Advertising creativity (X
3
)
P8
0,1966
0,863
0,000
Valid
P9
0,1966
0,896
0,000
Valid
P10
0,1966
0,897
0,000
Valid
P11
0,1966
0,895
0,000
Valid
P12
0,1966
0,885
0,000
Valid
E-service Quality (X
4
)
P13
0,1966
0,869
0,000
Valid
P14
0,1966
0,941
0,000
Valid
P15
0,1966
0,937
0,000
Valid
P16
0,1966
0,918
0,000
Valid
P17
0,1966
0,88
0,000
Valid
Purchasing Decision (Y)
P18
0,1966
0,824
0,000
Valid
P19
0,1966
0,889
0,000
Valid
P20
0,1966
0,853
0,000
Valid
Source: SPSS output 25, data processed by researchers, 2021
Based on the table on all items of the r count statement greater than r table and signification
numbers smaller than 0.05, thus all items of the questionnaire statement are proven valid and
can be continued for the advanced testing stage.
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A construct is said to be reliable when giving a Cronbach Alpha value of > 0.60 and vice
versa (Ghozali, 2011). The results of the instrument reliability test are shown in table 4.13
below:
Table 2. Reliability Test Results
Variable
Alpha Theory
Alpha Value
Information
Visual Merchandising (X
1
)
0,60
0,880
Reliable
Celebrity Endorser (X
2
)
0,60
0,876
Reliable
Advertising creativity (X
3
)
0,60
0,932
Reliable
E-service Quality (X
4
)
0,60
0,946
Reliable
Purchasing Decision (Y)
0,60
0,814
Reliable
Source: SPSS output 25, data processed by researchers, 2021
The table shows the Alpha value of all variables over 0.60 which means that all research
statement items are reliable as research measuring instruments.
The normality test of this study used the Kolmogorov Smirnov test to obtain
Zhicalcation
scores and signification rates. The test conditions if the signification value is above the alpha
value (5%) then H1 is rejected and H0 is accepted, which concludes that the residual
distribution is normal and vice versa.
Table 3. Kolmogorov-Smirnov Test Results
One-Sample Kolmogorov-Smirnov Test
Unstandardized
Residual
N
100
Normal Parameters
a,b
Mean
,0000000
Std. Deviation
1,12287485
Most Extreme
Differences
Absolute
,107
Positive
,107
Negative
-,043
Test Statistic
,107
Asymp. Sig. (2-tailed)
,007
c
Monte Carlo Sig. (2-
tailed)
Itself.
,194d
99% Confidence
Interval
Lower Bound
,183
Upper Bound
,204
Source: SPSS output 25, data processed by researchers, 2021
It is explained that the Monte Carlo signification value of residual data is 0.194 > 0.05,
hence the decision to accept H0 which means that the residual data meets normal assumptions.
Ghozali’s (2011) heteroskedasticity test aims to test whether in regression models there is
a variance inequality from residual one observation to another. The statistical test selected by
Visual Merchandising, Celebrity Endorsers, Advertisement Creativity, and E-Service Quality On Netflix
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the researcher is the Glejser test, the basis for decision making of heteroskedasticity test
through the Glejser test is:
1) When sig. 2-tailed < α = 0.05, then heteroskedasticity has occurred; and
2) When sig. 2-tailed > α = 0.05, hence no heteroskedasticity occurs.
Table 4. Heteroskedasticity Test Results
Model
Sig.
1
(Constant)
,000
Visual Merchandising (X
1
)
,313
Celebrity Endorser (X
2
)
,082
Advertising creativity (X
3
)
,530
E-service Quality (X
4
)
,543
Source: SPSS output 25, data processed by researchers, 2021
The results of heteroskedasticity testing can be concluded sig. each variable is greater than
0.05. So based on the results of the test, the free variables in this study did not occur
heteroskedasticity.
The tolerance value that is commonly used is 0.10 or equal to a VIF value below 10. Thus
it becomes multicollinearity (Ghozali, 2001). The results of multicollinearity testing in this
study can be seen in the following table:
Table 5. Heteroskedasticity Test Results
Model
Collinearity Statistics
Tolerance
VIF
Visual Merchandising (X
1
)
,275
3,638
Celebrity Endorser (X
2
)
,600
1,667
Advertising creativity (X
3
)
,359
2,786
E-service Quality (X
4
)
,271
3,692
Source: SPSS output 25, data processed by researchers, 2021
From the table above, it can be seen that the VIF of all free variables is smaller than 10
and has a tolerance value greater than 0.10, meaning that all free variables in this study have
no multicollinear symptoms.
While the analysis of multiple linear regression obtained by researchers is as follows.
Table 6. Multiple Linear Regression Analysis Results
Model
Unstandardized Coefficients
Standardized
Coefficients
t
Sig.
B
Std. Error
Beta
1
(Constant)
,076
,747
,102
,919
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Visual Merchandising
(X
1
)
,219
,072
,298
3,029
,003
Celebrity Endorser
(X
2
)
,235
,062
,251
3,761
,000
Advertising creativity
(X
3
)
,140
,051
,238
2,766
,007
E-service Quality (X
4
)
,127
,057
,219
2,212
,029
a. Dependent Variable: Purchase Interest (Y)
Source: SPSS output 25, data processed by researchers, 2021
So that the regression equation is obtained as follows:
Y = 0.076 + 0.219x1 + 0.235x2+ 0.140x3+ 0.127x4
The last test conducted by the researchers was a hypothesis test using the t-test to test the
significance of the relationship between variables X and Y, whether variables X
1
, X
2
, X3, and
X4 (Visual Merchandising, Celebrity Endorser, Creative Advertising, E-service Quality) affect
variable Y (Purchasing Decision) separately or partially. The basis of decision-making
(Ghozali, 2011) is to use probability numbers of significance, namely:
1) If the probability number of significance > 0.05, then Ho is accepted and Ha is rejected.
2) If the probability number of significance < 0.05, then Ho is rejected and Ha is accepted.
Table 7. Hypothesis Test Results
Model
Unstandardized Coefficients
Standardized
Coefficients
t
Sig.
B
Std. Error
Beta
1
(Constant)
,076
,747
,102
,919
Visual Merchandising (X
1
)
,219
,072
,298
3,029
,003
Celebrity Endorser (X
2
)
,235
,062
,251
3,761
,000
Advertising creativity (
X3
)
,140
,051
,238
2,766
,007
E-service Quality (X
4
)
,127
,057
,219
2,212
,029
a. Dependent Variable: Purchase Interest (Y)
As well as the result of the coefficient of determination (R2). From the results of Adjusted
R Square = 0.736, it can be said that the change of bound variables (Y) by 73% to variables X
1,
X
2,
X
3,
X
4
part of the remaining 27% are caused by other factors that are not contained in the
model. With the following results:
Table 8. Validity Test Results
Model Summary
Model
R
R Square
Adjusted R Square
Std. Error of the Estimate
1
,864
a
,747
,736
1,14627
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781 Interdisciplinary Social Studies, Vol(No), Nov 2021
a. Predictors: (Constant), E-service Quality (X
4
), Celebrity Endorser
(X
2
), Creative advertising (X
3
), Visual Merchandising (X
1
)
Visual Merchandising earns a significance value of 0.003 or below 0.050. This proves that
Visual Merchandising has a positive influence on variable purchasing decisions. Thus the
hypothesis in this study proved acceptable. Visual Merchandising is a term used in product
management that pays great attention to the appearance of products on display for the best
profit (Pancaningrum, 2017). This easy-to-understand presentation of information on Netflix
got an average score of 4.47 on a scale of 1 to 5, out of 100 respondents who had filled out the
questionnaire. Netflix presents some information on its display by grouping several menus.
The menus presented on the Netflix display are: Home, TV Shows, Movies, New & Popular,
My List on the menu at the top of the left, and there is also a menu of items for movie search,
selection of adult or children's film genres, and icons such as notification bells for notifications
regarding movie updates from Netflix.
Celebrity Endorsers earn a significance value of 0.000 or below 0.050, thus proving that
Celebrity Endorsers have a positive influence on purchasing decisions. Thus the hypothesis in
this study proved acceptable. Shimp (2003) stated that Celebrity endorsers are figures (actors,
entertainers, or athletes) who are famous by the public for their achievements in the field of
supported product categories. Celebrity Endorser on Netflix has occurred implicitly through
the film players who number the movie and Netflix as the viewing media. This means that
Netflix has chosen a celebrity group as its endorser. The selection of the group is by the
selection factors of endorsers according to Song and Chaipoopiratana (2010) which is an
endorser who has credibility and has a match with the promoted product. Thus Netflix has got
a lot of advantages of promoting its application through the cast of the film.
Advertising creativity gets a significance value of 0.007 or below 0.050, proving that
advertising creativity has a positive influence on purchasing decisions. Thus the hypothesis in
this study proved acceptable. Advertising is a form of mass media disseminated through
newspapers, magazines, radio, television, and other media or direct messages between two or
more individuals, intended for or delivered to a particular recipient (Shimp, 2010). The more
creative the advertisements are created, the more likely it is that consumers will be interested
and buy the advertised product. This is in line with Netflix's social media which is always
updated and consistent in providing its latest advertising every day on social media accounts
both Instagram and Twitter.
E-service Quality obtains a significance value of 0.029 or below 0.050, proving that E-
service Quality has a positive influence on purchasing decisions. Thus the hypothesis in this
study proved acceptable. E-service quality is defined as the meeting between consumer
expectations without direct interaction in the services provided (Dolatabadi, 2012). This online
service is expected to provide consumers with quality services that meet their needs and
expectations of consumers. In line with the Netflix service according to its users, namely,
providing convenience from the account registration process, payment, verification until the
account can be used by users to watch movies.
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CONCLUSION
Based on the results of testing the seven hypotheses that have been proposed in this study,
conclusions can be drawn, namely:
1) The results of the research hypothesis test show that Visual Merchandising has a Positive
Effect on the Decision to Purchase Video Streaming Applications (Netflix);
2) The results of the research hypothesis test showed that Celebrity Endorser had a positive
effect on the Decision to Purchase a Video Streaming Application (Netflix);
3) The results of testing the research hypothesis show that advertising creativity has a positive
effect on video streaming application (Netflix) purchasing decisions;
4) The results of the research hypothesis test showed that E-service Quality had a positive
effect on the Decision to Purchase Video Streaming Application (Netflix).
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