The phenomenon of the virality of content on social media has spawned the most recent advertising strategies for businesses. Viral marketing is a marketing strategy that encourages people to spread marketing messages to others voluntarily. Meanwhile, online customer review is a forum for exchanging customer opinions when viewing reviews from other customers on a product. Trust is the main factor that determines the success of an E-commerce platform. Customer purchasing decisions are part of customer behavior, namely the study of how individuals, groups and organizations select, buy, use, and dispose of goods, services, ideas or experiences to satisfy their needs and wants. This research examined how viral marketing and online customer reviews influenced purchasing decisions with online trust as an intervening variable in Shopee e-commerce. The hypothesis built in this study was tested by using a causal design approach. The test tool used Structural Equation Modeling (SEM) with the AMOS 26 statistical tool to see the relationship between the independent and dependent variables. The data collection method used a questionnaire with 250 respondents. The results of this study indicated that viral marketing and online customers had a positive and significant effect on online trust. As for viral marketing and online customer reviews, they positively and significantly affected purchase decisions. In conclusion, online trust positively and significantly affects purchase decisions and significantly influences viral marketing and online customer reviews.
The Internet is one of the technological advances that individuals, organizations, and businesses widely utilize. With the advance of technology, the use of the Internet from various devices, such as computers and smartphones, makes it simpler for customers to obtain knowledge and information about the products they decide to buy [1]. The phenomenon of viral content has become an attraction for customers and a digital marketing strategy, thereby becoming a new business strategy. As a result of the advance in technology, people have become easier to acquire what they need, especially with the various e-commerce facilities available.
Viral marketing is a marketing strategy that aims to make individuals voluntarily disperse marketing messages [2] The term viral marketing refers to a phenomenon in which customers share and disseminate marketing-related information that was originally sent on purpose by marketers to stimulate and capitalize on word-of-mouth (WOM) behavior [3]. Marketers and companies must comprehend how word-of-mouth influences the information about their products, brands, and companies [4]. According to [5] this phenomenon encourages and facilitates the dissemination of marketing messages. The effectiveness of unsolicited electronic referrals to generate awareness, interest, and sales or product adoption is the primary driver of viral marketing [6] Viral marketing spreads due to people's innate desire to share and distribute information about interesting or useful things [7]. Successful viral marketing campaigns include messages that inspire imagination, amusement, intrigue, promote usability and visibility, target credible sources, and employ a combination of technologies [8] The introduction of the Internet and subsequent technologies and online platforms has made it possible for businesses to profit from online WOM advertising strategies [9] Companies must implement a new focus strategy to maintain customer engagement [9] According to [10] study supports the notion that establishing trusted processes is the key to online business success. This fact demonstrates that online merchants provide a secure environment for all prospective online transactions. Researchers have determined that trust is necessary for forming and maintaining long-term relationships [11] Credibility is the primary factor determining an e-commerce platform's success [12] Due to the unpredictability of the online environment, establishing trust is of utmost importance but also the most challenging task to accomplish [13,14] Trust is significant in e-commerce, particularly in other online activities (Gaurav Bansal, Zahedi, & Gefen, 2016). [15]According to the literature on service, the key to increasing customer trust is the impact of dependable service and the significance of brand credibility based on the role of trust in establishing customer confidence [16,17] examined several factors that influence internet-based transactions. The trust factor was identified as a crucial factor.
One of the benefits of online shopping is that potential customers can easily access a collection of reviews given by other customers that can help them make purchasing decisions [18] Customers leave their experience as a review, which helps those who want to buy the same product with an experienced customer [19] Therefore, online Customer Review provides information about products and recommendations from a customer perspective, which is important for customers in making purchases online. Online customer review is the mainstay of customers in assessing a product personally [20] Besides, people talk to each other daily to share their opinions and comments about a product [21] The assessment of users on the preference of a product for their experience refers to the psychological and emotional state they live in when interacting with virtual products in a mediated environment [22] Perceived product quality reflects a customer's subjective evaluation which is important for making purchasing decisions in an e-commerce environment, where actual product quality is difficult to assess [23] Thus, online customer reviews can help customers answer their curiosity about products to assist them in making purchasing decisions [24].
According to [2] the customer purchasing decision is part of customer behavior, which studies how individuals, groups, and organizations choose, buy, and use goods, services, ideas, and experiences to satisfy their needs and desires. Other benefits of reviews include attracting customer visits, increasing website stickiness (time spent on the site), and fostering a sense of community among buyers [25]. Compared to traditional word-of-mouth, online customer reviews are instantaneous, trustworthy, and anonymous; they transcend space and time and are perceptible instantly [26] Product quality is the totality of the characteristics and characteristics of a product or service in satisfying the implied needs. If the product has positive reviews, the customer will make a purchase [27]. However, most existing research evaluates only the direct effect of online customer reviews on purchase decisions [28] Only a few studies examine the mediating effect of perceived online trust on purchase decisions. Existing research focuses primarily on the quantitative aspects of online reviews, such as ratings and volume [29] Customers typically seek out both positive and negative reviews when evaluating a product, and the effect of review valence has received substantial academic attention [30]
Figure 1: The Data of E-Commerce Website Visitors on Quarter I 2022 in Indonesia
Based on data from iPrice on DataIndonesia.id, data on monthly e-commerce website visitors, in the first quarter of 2022, Shopee took second place with an average monthly visitor of 132.78 million. Furthermore, Shopee is a platform that enables individuals and business owners to easily manage online stores, make purchases, and provide a safe and comfortable experience. However, Shopee's secure payment system instills users with confidence, allowing them to select from various online products without worrying about fraud. Also, as a form of e-commerce, Shopee presents a user-friendly website with various available features such as customer reviews and live product promotions so that customers can easily see the products' condition.
[31] discovered that risk and trust are crucial to the success of viral marketing, particularly during the message initiation phase. According to a separate survey, customers believe that their close friends have their best consideration and that they can rely on their friends' recommendations. [32] stated that viral marketing positively and significantly affects trust. According to [33] found that viral marketing had a positive and statistically significant impact on online trust. This research concurs with [34] conclusion that viral marketing plays an important role in forming online customer trust. According to [35] viral marketing positively affects online trust. According to [36] also discovered that viral marketing had a positive and statistically significant impact on online trust.
H1: Viral marketing positively and significantly affects online trust
Trust in online reviews is a factor in the success of online transactions [37] as customers tend to seek dependable product and service information [38]. It has been demonstrated that trust has a positive effect on the effectiveness of online reviews. As a result, online reviews are meaningful for purchase intent when potential customers trust them [39] Information gleaned from online reviews that can be relied upon to inform a purchase decision is essential [38] Relationship between perceived credibility of online reviews and future behavior [39].
According to research conducted by [40], Online Customer Reviews substantially impact Trust. Consistent with other research, [41] assert that Online Customer Reviews positively and substantially impact customer trust.
H2: Online customer review positively and significantly affects online trust
Trust is a psychological factor that influences the buying decisions of customers. When customers develop trust, they engage in purchasing activities [32].In the literature on e-commerce, purchasing decision is viewed as trust-related behavior [42-44].If sellers want customers to purchase their products (purchase decisions and money transfers), they must demonstrate trustworthy behavior [45]. According to [46] online customer trust is necessary for online purchases. According to research conducted by [47], establishing customer trust is a crucial aspect of both traditional marketing and e-commerce. According to research conducted by [48] trust positively influences purchasing decisions. Furthermore, [49] found that trust positively influences purchasing decisions.
H4: Online trust positively and significantly affects the purchasing decision
The main drivers of Viral Marketing are awareness [6] interest [6] access to use these marketing techniques, and experiences that decide their final decision [6] According to [50] an effective viral marketing strategy with explicit content, popular brands, and secure entries influences customer purchasing decisions. Viral marketing influences customer purchasing decisions through their ability to gather information from other customers' comments [51]
The research findings show a significant and positive relationship between viral marketing and purchasing decisions; In other words, viral marketing directs customers to improve their purchasing decisions [52] In another study, it was revealed that Viral Marketing has a significant effect on purchasing decisions [53].Research conducted by [54] shows the positive influence of viral marketing on customer purchasing decisions. Research conducted by [52] also shows a significant and positive relationship between viral marketing and purchasing decisions.
H4: Viral Marketing positively and significantly affects purchase decision.
[27] classify online customer reviews as a form of electronic word-of-mouth that can influence and play a role in the purchasing decision process. Online customer reviews have been recognized as having a substantial impact on purchasing decisions practically [55] and academically [25,56] opined that online customer reviews are widely posted on various products and services and have become integral to many customers' purchasing decisions. [57] explained that in the context of online shopping, product information is more reliable and necessary to support purchasing decisions. This information is provided by Online Customer Reviews and is regarded as credible and reliable [58,59] Online Customer Review is increasingly important as a source of product information and a factor in customer purchasing decisions.
According to [58] found that product information provided in online discussion forums had a greater impact than information created by sellers. As a result, online customer reviews play an increasingly significant role in customer purchasing decisions [60] Online customer reviews are an important source of information to reduce information asymmetry in e-commerce and assist customers in purchasing decisions [61] In previous studies, it has been confirmed that online customer reviews have a significant effect on purchasing decisions [62] In line with other studies, [63] opined that Online Customer Review significantly affects customer decisions.
H5: Online customer review positively and significantly affects purchasing decision
This causal research design used a questionnaire for data collection. The survey employed a 5-point Likert scale (1 = strongly disagree, 5 = strongly agree). Measurement of Viral Marketing was based on six items adapted from [35,64] Online Customer Review was evaluated based on six items derived from [65,62] The level of online trust was determined by five items adapted from [35] Purchase Decision was measured by four adapted items from [66].
In this study, 250 respondents served as collected and analyzed samples. A customer who has utilized Shopee more than three times was included in the sample. Sampling locations were dispersed throughout various cities in Indonesia using an online questionnaire.
This study employed Structural Equation Modeling (SEM) with the AMOS 26 statistical software to analyze and evaluate the constructed research construct's measurement and structural models. The fit test model was evaluated using goodness of fit index parameters, including chi-square (χ2), CMIN/DF, Root Mean Square Error of Approximation (RMSEA), root mean square residual (RMR), goodness of fit index (GFI), Tucker Lewis Index (TLI), Incremental Fit Index (IFI), Comparative Fit Index (CFI), and Normal Fit Index (NFI). The validity evaluation was based on the standardized loading factor (SLF) value, which must be ≥0.50 [67] and the reliability construct was based on the tabulated construct reliability (CR) and average variance extracted (AVE) values. In addition, the SEM analysis performed is a structural model analysis to determine whether the constructed research hypothesis is accepted or rejected. The t-value for each coefficient is displayed by SEM analysis. The hypothesis has a causal relationship if the t-count ≥ the t-table value (1.96), with a significant α level of 5%.
The characteristics of the respondents in this quantitative study include gender, age, occupation, residence, shopping frequency, spending, and decision-making when shopping on Shopee.
Category | Item | F | % |
Gender | Male | 124 | 49.6 |
Female | 126 | 50.4 | |
Total | 250 | 100 | |
Age | 13-15 Years old | 2 | 0.8 |
16-18 Years old | 4 | 1.6 | |
19-23 Years old 24-30 Years old 31-40 Years old 41-50 Years old >50 Years old | 154 67 17 5 1 | 61.6 26.8 6.8 2 0.4 | |
Total | 250 | 100 | |
Occupation | Student/College Student | 120 | 48 |
Civil Servant | 10 | 4 | |
Corporate | 88 | 35.2 | |
Entrepreneurs Others Total | 17 15 250 | 6.8 6 100 | |
Residence | DKI Jakarta | 3 | 1.2 |
Pontianak | 231 | 92.4 | |
Bandung | 1 | 0.4 | |
Surabaya | 2 | 0.8 | |
Palembang Yogyakarta Tangerang Others | 1 2 2 8 | 0.4 0.8 0.8 3.2 | |
Total | 250 | 100 | |
Shopping frequency on Shoope | 3 times 4 times 5 times > 5 times Total | 40 9 6 195 250 | 16 3.6 2.4 78 100 |
Spending average when purchasing in Shoope | <Rp.100.000 Rp. 100.000 – Rp. 500.000 Rp. 500.000 – Rp. 1.000.000 Rp. 1.000.000 – Rp. 3.000.000 Rp. 3.000.000 – Rp. 5.000.000 >Rp.5.000.0000 Total | 41 140 42 14 8 5 250 | 16.4 56 16.8 5.6 3.2 2 100 |
The decision maker in making purchases at Shopee | The customers themselves Friend Family Others Total | 225 6 17 2 250 | 90 2.4 6.8 0.8 100 |
Before analyzing the data, it is necessary to test the validity and reliability of the study's instruments. The collected data were analyzed using version 26 of the AMOS program. The following table displays the results of the validity and reliability tests for the research instrument.
Table 2. Measurement Model Results
Items | SLF | CR | AVE | |
Viral Marketing | I follow every product promotion on Shopee | 0,755 | 0,898 | 0,595 |
I monitor every information shared by Shopee | 0,779 | |||
I forward product promotional information receive about Shopee to other people | 0,768 | |||
I always talk positively about product promotion on Shopee | 0,807 | |||
I hope other people are interested in the product promotion information that I share about Shopee | 0,77 | |||
I engage in viral marketing communications that Shopee does by sharing it with other people | 0,749 | |||
Online Customer Review | Other people’s comments are very important for me to make purchase decision | 0,662
| 0,874 | 0,538 |
I spent a lot of time surfing the internet for online reviews before I decide upon purchase a product | 0,801 | |||
I trust other cunsomer reviews | 0.777 | |||
Trusting product ratings from other consumer | 0,783 | |||
Read product reviews from other consumer | 0,688 | |||
Gather information from reviews before making a purchase | 0,679 | |||
Online Trust | I believe merchants on Shopee can fulfill people’s needs | 0,75 | 0,910 | 0,672 |
I believe merchants on Shopee sell product honestly | 0,855 | |||
I believe product information on Shopee matches the real conditions | 0,814 | |||
I believe in the safety of the product on Shopee | 0,831 | |||
I believe traders can meet every need of society on Shopee | 0,845 | |||
Pruchase Decision | I choose to use the Shopee as the first choice when I want to shop | 0,822 | 0,830 | 0,551 |
I shop on Shopee because I want to | 0,752 | |||
I do not consider other applications when shopping (besides shopee) | 0,677 | |||
I shop with shopee because of my needs | 0,711 |
Table 2 is the result of testing the validity and reliability of the entire model. The standardized loading factor (SLF) value of all indicator variables in the full model is above 0.50. This means that all indicators are declared valid and believed to be able to measure the construct of the full model being built. The results of the reliability test present relevant results. All instruments are declared reliable and can consistently measure the constructs of the full model built. This is shown from the avariance extracted (AVE) value of all instrument indicators which obtain a value of ≥0.50 and the value of construct reliability (CR) which obtains a value of ≥0.70.
The goodness of Fit Index | Cut off Value | Results |
CMIN/DF | ≤ 3.00 | 2,612 |
RMSEA | ≤0,08 | 0,080 |
IFI | ≥0,90 | 0,913 |
CFI | ≥0,90 | 0,912 |
TLI | ≥0,90 | 0,900 |
Table 3 is the outcome of the model fit test. The results of the model fit test demonstrate that the model's suitability requirements can be accepted and declared fit. Therefore, there are five measurements that indicate the good fit level. According to [67] a research model construct can be accepted if three to four measurements achieve a degree of good fit or are above the cut-off value.
4.2.1 Hypotheses Testing
Figure 2: Full Model Structural Test
Estimate | S.E. | C.R. | P | Description | |||
---|---|---|---|---|---|---|---|
Online Trust | <--- | Viral Marketing | .538 | .060 | 9.013 | *** | Accepted |
Online Trust | <--- | Online Customer Review | .375 | .071 | 5.292 | *** | Accepted |
Purchase Decision | <--- | Online Trust | .589 | .119 | 4.936 | *** | Accepted |
Purchase Decision | <--- | Viral Marketing | .180 | .088 | 2.045 | .041 | Accepted |
Purchase Decision | <--- | Online Customer Review | .592 | .105 | 5.616 | *** | Accepted |
Based on the results of the AMOS processing shown in table 4, the t-count value for the viral marketing variable for online trust is obtained at 9,013. Likewise, the p-value obtains a number less than 0.001, indicating a value less than 0.05 (α = 0.05). This means that the first hypothesis regarding viral marketing has a positive and significant effect on online trust. For the second hypothesis, the t-value for the online customer review variable on online trust obtains a value of 5.292 and a p-value of less than 0.001. Proving the hypothesis built where online customer reviews positively and significantly affect online trust. The third hypothesis, the t-count value for the online trust variable on the purchase decision is 4.963 and the p-value is less than 0.001. This shows that online trust positively and significantly affects purchase decisions. The fourth hypothesis, the t-value for the viral marketing variable on the purchase decision is 2.045 and the p-value is 0.041. These results are consistent with the hypothesis that viral marketing positively and significantly affects purchase decisions. The fifth hypothesis is that the t-count value for online customer review variables on purchase decisions is 5.616 and the p-value is less than 0.001, indicating that online customer reviews have a positive and significant effect on purchase decisions.
Table 5. Sobel Test - Significance of Mediation
Sobel test statistic | Two- tailed probability | |
Viral Marketing --> Online Trust --> Purchase Decision | 4,33 | *** |
Online Customer Review --> Online Trust --> Purchase Decision | 3,611 | *** |
Based on the Sobel test results in Table 5, the Sobel test statistic is 4.33 and the p-value is 0.001, denoted by three stars. The value of the Sobel test statistic is greater than the t-table value of 1.96, as indicated by these results. Similarly, the obtained p-value is less than or equal to 0.05 (α = 0.05). These results indicate that viral marketing significantly indirectly affects purchase decisions via online trust. In online customer review, the Sobel test statistic value was greater than 1.96, namely 3.611, and the p-value was less than 0.05 (α = 0.05), namely 0.001, denoted by a three-star symbol. Therefore, online customer reviews significantly and indirectly affect purchase decisions via online trust.
The study results indicate that viral marketing has a positive and statistically significant impact on online trust in e-commerce Shopee. It is important to introduce a product to the public; with viral marketing, the message that the producer wishes to convey can be conveyed quickly and capture customers' attention so that they become more acquainted with the products offered. This study's findings corroborate previous findings that viral marketing significantly impacts online trust [34-36]
The findings indicate that online customer reviews have a positive and statistically significant impact on online trust in e-commerce Shopee. This demonstrates that customers frequently read and value the opinions of their peers. Customers can gain confidence in a product by reading positive reviews. This research confirms previous findings that online customer reviews positively and significantly influence online trust [40,41]
The findings indicate that online trust has a positive and statistically significant effect on Shopee purchase decisions. This explains that buyers' most important factor when shopping online is whether they trust the sites that offer online store services and the sellers on these sites to foster and develop long-term relationships [11].This study confirms the findings of previous research indicating that online trust significantly impacts purchasing decisions [68,49,48]
The study results show that viral marketing positively and significantly affects purchase decisions in e-commerce Shopee. If the message gets a positive effect through viral marketing and gains customer trust, this can lead to customer buying action. This study's results align with previous studies that state that viral marketing significantly influences purchase decisions [69,70,55,52,54]
The findings of the study indicate that online customer reviews have a positive and statistically significant impact on purchasing decisions at Shopee. This demonstrates that online customer reviews are very important for potential customers, as they can assist them in making purchasing decisions. This study confirms the findings of previous studies that online customer reviews have a positive and significant impact on purchase decisions [62,63,69]
It is necessary for entrepreneurs, particularly those who engage in e-commerce, to continue increasing customer confidence where trust becomes one of customers' most important purchasing factors. Then, for future research, variables other than those used in this study can be added to obtain diverse results consistent with technological advancements.
The authors declare that they have no conflict of interest
No funding sources
The study was approved by the Universitas Tanjungpura, Indonesia.
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