Co-Value : Jurnal Ekonomi, Koperasi & Kewirausahaan
Volume 14, Number 2, Juli, 2023
p-ISSN: 2086-3306 e-ISSN: 2809-8862
The Power of Shopee Live Streaming on Z Generation Purchasing
Decisions
Kurniawan1, Sri Hardianti Sartika2*
12*
Economic Education, Faculty of Teacher Training and Education, Siliwangi University
sri.hardianti@unsil.ac.id*
Abstract
The focus of the research is to determine the power of live streaming carried out by shops selling
on Shopee on product purchasing decisions by Generation Z. Quantitative methods using survey
data collection techniques are used to explain this phenomenon. The instrument used was 15
question items consisting of 9 items about live streaming variables and six items about
purchasing decisions, then packaged in a Google Form questionnaire and distributed via social
media. The sample in this study consisted of 185 respondents aged 13 – 26 years (generation Z).
The data obtained was then analyzed using descriptive and differential statistics to determine the
relationship between variables. Statistical data analysis using SPSS version 25. The results show
that Shopee Live Streaming contributes 62% to Z Generation Purchasing Decisions. So it
provides information that live streaming activities can attract consumers to buy, the seller's
products can reach a wider market, educate consumers directly about the products offered by the
seller, and increase immediate feedback.
Keywords: live streaming, Z generation, purchasing decision
INTRODUCTIONS
Digitalization in marketing has changed the way sellers market their products and
services, thereby significantly influencing the market strategies used (Nabila et al., 2023).
This digital era is also shaping changes in consumer behavior with the shifting phenomenon
or shifts in people's behavior in shopping, so marketers must respond quickly, such as
selling products via e-commerce. E-commerce development in the digital space has become
where people can interact and carry out economic and business activities. Geng et al. (2020)
noted that consumers aged 18 – 25 years or Generation Z will be the largest contributor to
the proportion of e-commerce transactions in 2022.
Generation Z is currently the largest in the world; their number reached 2.5 billion
in 2020. The same thing also happened in Indonesia. Referring to data from the Central
Statistics Agency (BPS) in 2020, Generation Z dominates the population group with a
percentage of 27.94% (BPS, 2023). Their status as 'rulers of the world' automatically makes
Generation Z a new target market for industry. Nevertheless, winning their hearts is a
challenging matter. These young people have different values and characteristics than
previous generations, namely Baby Boomers, Gen X, or Millennials. These differences in
values and characteristics influence their life goals, lifestyle, and consumption styles. This
means that the industry must refrain from using marketing strategies that target previous
generations. New strategies are needed so that marketing becomes more targeted. In
comparison, the Millennial generation is 25.87 percent, and Generation X is 21.88 percent.
Next, generation Z was born in 1996-2010, and Generation Z is often called the Internet
generation (Turner, 2015).
Consumer purchasing decisions in Generation Z can be influenced by the accuracy
of the seller's selection of marketing strategies (Nuryanti et al., 2023). So manufacturers,
sellers, and sales platforms need to understand and overcome these problems to simplify
The Power of Shopee Live Streaming on Z Generation e-ISSN: 2809-8862
Purchasing Decisions p-ISSN: 2086-3306
the purchasing decision-making process for consumers (Lestari et al., 2022). Providing
clear information, offering good customer service, providing quality guarantees, and
providing competitive prices are some steps that can be taken to overcome problems in
purchasing decision-making (Madani et al., 2023). One of marketing strategy to answer
this problem so that it develops rapidly in the digital era is a live streaming shop. Lu and
Chen (2021) live streaming is broadcasting video or audio in real time over the internet.
This allows viewers to watch events, presentations, or other content live as they happen.
Live streaming activities are usually done on social media, live streaming platforms, and
e-commerce. Or marketplace. One of the pioneers of the marketplace in Indonesia, namely
Shopee, has since 16 June 2019 launched the Shopee Live feature. In this live-streaming
video feature, sellers can sell and interact directly with buyers using the Shopee platform,
which is optimized for smartphone users. Indarti et al. (2022) Shopee is the most visited
marketplace platform during the first quarter of 2023, namely 157.9 million visits per
month, far surpassing its competitors. Shopee's live streaming feature is thought to cause
many visits to the platform.
Shopee live streaming is where sellers or brands conduct live streaming to
showcase their products or services directly to viewers, often to increase sales. Nowadays,
many e-commerce and social media platforms have adopted the "shop live streaming"
feature where viewers can view products, ask broadcasters about product details directly,
and even buy products directly during the live broadcast. Shopee live-streaming purchasing
decisions are influenced by several factors, including live product demonstrations, direct
interactions, direct promotions and discounts, reviews and testimonials, product
availability and time limits, product quality, and brand reputation (Prihatiningsih et al.,
2023).
Shopee live streaming provides a unique interactive experience for viewers who
can directly interact with the products or services offered. By providing a platform where
viewers can ask questions, view, and even directly purchase products during a live
broadcast, this practice aims to increase viewer engagement and directly influence
purchasing decisions. Live streaming often provides viewers a live experience, which can
influence purchasing decisions due to real-time interactions and more immersive product
presentations.
Live-streaming activities carried out by sellers on the Shopee platform can
stimulate consumer purchase decisions so that they carry out purchasing activities.
Purchase Decision is the process of selecting two or more alternative options, which results
in a decision to buy or not to buy. Choices must be available when consumers want to make
a decision (Safrina & Putra, 2023). The purchasing decision-making process requires
searching for or receiving different information (Widyastuti et al., 2020). Mbete & Tanamal
(2020) purchase Decision is a process carried out to combine all the knowledge obtained
by consumers into consideration values that are useful in choosing two or more alternatives
so that they can decide on one product.
Purchase Decision is the process where consumers decide which brand to buy (Nur
et al., 2023). Consumers will buy the brand they like most . However, it can be influenced
by two factors that are between purchase intentions and purchase decisions, namely other
people's attitudes and unexpected situations (Mappesona et al., 2020). Purchase intentions
can change if the situation consumers face prevents or forces them to cancel a purchase or
switch to another choice (Kotler & Keller, 2016). Purchase Decision is a stage in a process
where consumers make purchases based on the results of a combination of all the
knowledge they have to become a consideration value between two or more alternative
products available in deciding on one product (Meini & Istikharoh, 2022). Based on the
marketing phenomenon that is developing in this digital era, namely live streaming
activities as a marketing strategy that is popular among sellers (Imani et al., 2023). So, it is
Kurniawan, Sri Hardianti Sartika
Vol. 14, No.2, Juli, 2023
necessary to research how effective live-streaming activities are in stimulating Purchase
Decisions, especially among Generation Z individuals of ten referred to as the Internet
generation.
RESEARCH METHOD
This research aims to determine the power of live streaming by shops selling on
Shopee on product purchasing decisions by Generation Z. Quantitative methods explain
this phenomenon and data collection is carried out using surveys (Hardini & Pratiwi, 2022).
The instrument used is a questionnaire consisting of 2 parts; the first part concerns the
socio-demographic aspects of the respondents to ensure that the questionnaire is only filled
in by respondents with an age range of 13 to 26 years in 2023 (generation Z), the second
part concerns the research variables, namely 15 statement items which consists of 9 items
about live streaming and six items about purchasing decisions. The research questionnaire
was distributed via social media such as Facebook, TikTok, and Instagram. Data was
collected during February 2023, and 185 people filled in. This number meets the minimum
requirements for respondents with the research parameters used, namely 150 respondents.
The data obtained was then analyzed using descriptive and differential statistics to
determine the relationship between variables (Ananto et al., 2023). Statistical data analysis
uses SPSS version 25. The framework for this research is as follows:
Live Streaming Purchasing Decission
- Steamer Credibility - purchasing behaviour
- Media Richness - post purchasing
- Interactivity feedback
Figure 1. Research Framework
RESULT AND DISCUSS
The results of the descriptive analysis of the variables used, namely live streaming
and purchasing decisions, are as follows:
Tabel 1. Descriptive Analysis
Empirical Empirical Hypotetical Hypotetical
Variable Status
mean SD Mean SD
Puchasing Decision 61,86 6,672 46 11,638 Average
Live Streaming 138,65 15,081 103 22,967 Average
Table 2. Participant Score Category
Category Puchasing Decision Live Streaming
Very High 36% 51%
High 37% 37%
Average 10% 5%
Low 4% 3%
Very Low 3% 4%
Total 100% 100%
Table 2. shows that live streaming can be categorized as 51% very high, 37% high,
5% average, 3% low, and 4% very low. Meanwhile, the purchasing decision variable is
https://journal.ikopin.ac.id
The Power of Shopee Live Streaming on Z Generation e-ISSN: 2809-8862
Purchasing Decisions p-ISSN: 2086-3306
classified as 36% very high, 37% high, 10% average, 4% low, and 3% very low. Before
the data is processed with differential statistics, classical assumptions must be tested first.
The classic assumption test was the normality test using the Kolmogorof-Smirnov
technique, which obtained results with a normal distribution for both research variables (p
> 0.05). Furthermore, the linearity test between live streaming and purchasing decisions
found that Fcount was 1.235; p > 0.281, indicating a significant linear relationship. Then,
the multicollinearity test obtained VIP values of 4,000 < 10 and tolerance of 4 < 10,
meaning there was no multicollinearity in the variables. The Durbin-Watson
autocorrelation test shows a value of d=1.456; dL=1.373; dU=1.356; this score follows the
guidelines of 1.356 < 1.373 < 2.644 (dU < d < 4-dU) meaning that there is no
autocorrelation. Next, the variables will be tested using linear regression to determine the
influence of live-streaming variables on purchasing decision variables. The results of the
linear regression analysis are displayed in table 3.:
Table 3. Regression Analysis Results
Variable F Ftab R2 p
Purchasing Decision (Y)
485,752 0,281 0.620 0.000
Live Streaming (X1)
Table 3. regarding the results of the regression analysis shows that the live
streaming variable plays a significant role in purchasing decisions (F=485.752; p <0.05),
thus the hypothesis is accepted. The R2 value shows the meaning that purchasing decisions
in generation Z are influenced by 62% by live streaming carried out by sellers on the
Shopee platform, while the remaining 38% is caused by other factors outside the model.
Table 4. Results of Model Regression Analysis
Variable Beta T Ttable p
Live Streaming (X1)
0,627 17,37 0,675 0,000
Purchasing Decision (Y)
Table 4. shows a positive and significant influence of the Shopee live streaming
variable on purchasing decisions (T = 17.37; p < 0.05), meaning that the research
hypothesis is accepted, namely the influence of Shopee live streaming on generation Z
purchasing decisions. These statistical results support the hypothesis in this research,
namely that live streaming contributes 62% to Generation Z's purchasing decisions.
The findings of this research are in line with Wongkitrungrueng et al. (2020) that
live streaming influences Generation Z purchasing decisions. Research Cai and Yvette
Wohn (2020) shows that Shopee live streaming is an effective sales option because sellers
can carry out a more interactive buying and selling process because they can show products
in real-time, answer consumer questions, and encourage purchases directly during the
broadcast. Gesmundo et al. (2022) shopee Live is also the live-streaming feature most
remembered by 60 percent of respondents, while TikTok Live gets 30 percent. From the
start, Shopee Live was designed as a feature that provides an interactive shopping
experience. Both buyers and sellers who open Shopee Live aim to conduct transactions in
real-time. This differs from TikTok Live, part of the TikTok social media platform that
focuses more on providing space for creative content, such as music, tips, or comedy.
Naturally, the intensity of people opening TikTok Live is more likely to be looking for
Kurniawan, Sri Hardianti Sartika
Vol. 14, No.2, Juli, 2023
entertainment rather than shopping. Because of this, the Shopee Live feature, part of
Shopee e-commerce, is more suitable for various brands and sellers who want to optimize
sales. The shopping plans and intentions of Shopee Live visitors are also in line with data
on the live streaming platform, where Shopee Live has the highest market share of the
number and value of transactions.
Turner (2015) generation Z depends on the internet because this generation can
easily access the internet via cell phones and their participation in the era of globalization.
Because it is so easy to use, the internet has become the main source for finding
information. Apart from that, generation Z's decision to purchase online is due to consumer
limitations and access, desires, technology, product and price limitations, flexibility,
efficiency, convenience, economical, and social. Hanaysha (2022) a purchasing decision is
influenced by the aspects that become a reference for a potential consumer interested in
making a purchase, namely product choice, brand choice, dealer choice, time of purchase,
and number of purchases. Khasanah and Kuswanto (2023) purchasing decisions can be
influenced by Shopee Live Streaming or live broadcasts on the Shopee platform. Shopee
Live Streaming allows sellers to interact directly with potential buyers, show products in
real time, provide product reviews, answer questions, and provide special offers or
discounts during the broadcast.
Surianto et al. (2021) with various information delivered directly and interactions
between sellers and potential buyers, Shopee Live Streaming can have a significant
influence on purchasing decisions, especially for those who prefer a more interactive and
informative shopping experience. Shopee Live Streaming is not only a platform for
showcasing products but also a very effective tool for influencing buyers' interest and desire
to purchase products, especially because of the direct interaction, in-depth information, and
promotional appeal provided during live broadcasts.
CONCLUSION
The conclusion of the research results shows a significant and positive influence of
the live streaming variable on purchasing decisions in Generation Z, with a magnitude of
63.27%. The results of this research provide information that live-streaming activities can
attract consumers to buy, and seller products can reach a wider market, directly educate
consumers about the products offered by sellers, and increase immediate feedback. So, the
live streaming feature provided by Shopee can be used as an effective marketing strategy.
The Shopee live streaming feature in marketing is to create a stronger connection between
brands and consumers, increase awareness, and encourage purchasing action through direct
interaction, in-depth information, and attractive offers.
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