Jurnal Syntax Transformation

Vol. 3, No. 10, October 2022

p-ISSN : 2721-3854 e-ISSN : 2721-2769

Social Science

 

THE EFFECT OF PROMOTION, PRODUCT REVIEW, AND SECURITY ON PURCHASING DECISION

 

Jizenji Tyas Wirastomo, Langgeng Sri Handayani

Universitas Pelita Bangsa, Bekasi

Email: [email protected], [email protected]

 

ARTICLE INFO

ABSTRACT

Received

05 September 2022

Revised

16 September 2022

Approved

19 September 2022

This research uses quantitative methods through field surveys of a sample of� Tokopedia Online Store site is one of the Indonesian marketplaces for buying and selling online. and the most visited in 2021. Promotions, Product Reviews, Security of the Tokopedia Application can affect purchase intentions using the Tokopedia Application. The purpose of this study was to determine the effect of promotions, product reviews, and application security on purchasing decisions using the Tokopedia application at the Bekasi Civil Society Communication Forum. The population of 1771 members, 100 samples, and research samples were obtained using the Slovin formula with a standard error of 10%. There were 95 respondents who appeared. The results of this study indicate that there is a positive effect of promotional variations (X1) on purchasing decisions (Y) from these variables. Product evaluation variable (X2) has a positive effect on purchasing decisions (Y). There is a positive effect of the security variable (X3) on purchasing decisions (Y). The Adjusted R-squared value of 0.720 indicates that 70.2% of the variation in purchasing decisions can be explained by the three independent variables in the regression equation.

Keywords:

Marketplace, Applications, Promotions, Product Reviews, Security, Purchasing decision.

 


Introduction

The development of technology and information in the world, especially the internet, has developed very rapidly. The internet connects one person to another, provides information, as a means of entertainment, and as a means of communication (Nawangsari & Pramesti, 2017). This makes the internet today has become a basic need for most people in addition to food and shelter needs (Santi, 2020). Some of the reasons why the internet is so much loved include: speed of information, help in various areas of life, and flexibility.

This phenomenon is of course a new business opportunity for several parties who then seize the opportunity so that the opportunity can be utilized properly. In general, it will turn into a tool for competition between one company and another. This will also have a huge impact on every company. The impact on the competition aspect is the formation of an increasingly sharp level of competition which makes companies in this economic globalization make changes to be constant and simultaneous. So the company must have the ability to quickly adapt to changes that occur so that the company can compete with its competitors (Andiyanto et al., 2017).

E-Commerce contains many benefits in the business world in addition to simplifying the buying and selling process, using e-commerce can reduce the cost of goods and services, can also increase purchase or consumer satisfaction with speed to get the goods needed in accordance with the budget.

Tokopedia is an e-commerce company based on online buying and selling in Indonesia. In building security, convenience and consumer trust, Tokopedia collaborates with 13 logistics companies both nationally, from Pos Indonesia, JNE, Tiki, to Go-Send from Go-Jek. Even innovation the latest from Tokopedia itself, for sellers who are in the same location as buyers, there is delivery service on the same day. Tokopedia.com was officially launched to the public on August 17, 2009 under the auspices of PT. Tokopedia was founded by William Tanuwijaya and Leontinus Alpha Edison on February 6, 2009.

Consumers have several considerations before deciding to buy a product. These considerations include safety, ease and trust in making purchase transactions (Setiawan, 2017). In Tokopedia.com, consumers can see the price of the product they are looking for, and the price of the product can be sorted from the cheapest to the most expensive so that consumers can easily find the price that suits their needs. Before buying a product at Tokopedia.com, consumers can see product reviews that have been given from previous buyers. Tokopedia.com makes it easy for buyers to find the items they need. At Tokopedia.com, there are 27 categories of goods, ranging from clothing, stationery, electronic goods, to credit, or train tickets. The buyer only needs to type the item he needs, select the item, make a payment and then wait for the item to arrive. Tokopedia.com guarantees the safety of shopping for buyers by using a joint account system.


 

Image 1.

(Source: (www.cnbcindonesia.com) (data processed)

 


In Q2-2021 quarterly data, Tokopedia holds the most monthly Web visitors, which is 147,790,000. Then in second position by Bukalapak and Shopee.

Based on the above background, the formulation of the problem in this study are: (1) Does promotion have a positive influence on purchasing decisions? Through the Tokopedia application at the Bekasi Civil Society Communication Forum?, (2) Do product reviews have a positive influence on purchasing decisions through the Tokopedia application at the Bekasi Civil Society Communication Forum?, (3) Does Security have a positive influence on purchasing decisions through the Tokopedia application at the Forum? Bekasi Civil Society Communication

 

Method

The type of data used in this study is quantitative data, according to (Sugiyono, 2016) quantitative data is data in the form of numbers. Judging from the purpose of this study, the researcher wanted to know whether there was an influence between the variables of service quality, price and trust on customer satisfaction. The sampling of this study used the non-probability sampling method, sampling where the technique cannot provide the same opportunities/opportunities for each member of the population selected as the sample (Sugiyono, 2016). The technique chosen in nonprobability sampling is purposive sampling, suggesting that purposive sampling is a sampling technique with certain considerations, (Sugiyono, 2016). The reason the researcher uses purposive sampling is because not all samples have the same criteria as the phenomenon being studied. So, the researcher chose purposive sampling which established certain criteria that must be met by the sample used in this study. The sampling in this study set the criteria, which will be the research sample is the Bekasi 2022 Civil Society Communication Forum, users or have used the Tokopedia application. The size of the sample in this study was determined by the slovin formula, and the sample obtained was 95 respondents.

The source of data used in this study is primary data, namely data obtained directly from the object of research through a questionnaire survey on google form. Data was collected through questionnaires and library studies. The questionnaire was prepared using a Likert model with five possible answers to the questions of each variable indicator. There are five alternative answers to this questionnaire, namely: Strongly Agree (SS), Agree (S), Disagree (KS), Disagree (TS), Strongly Disagree (STS).

The feasibility test of the data in this study was used to measure the extent to which the data used were feasible or not as a data source. Data collected from 95 respondents were tested for feasibility through validity and reliability tests. The data that has been collected and has been tested for feasibility is then tested for data analysis with multiple linear regression analysis and hypothesis testing on the t test. The research design in this study can be seen in the following figure:


 

Figure 2. Research Design

 


Purchasing decision is the dependent variable in this study which is influenced by three independent variables, namely promotion (X1), product reviews (X2), and security (X3), according to (Kotler & Keller, 2016) Promotion indicators in influencing purchasing decisions consist of three indicators, namely promotional messages, promotional media, promotional time. According to (Lackermair et al., 2013), product review indicators that influence purchasing decisions consist of four indicators, namely awareness, frequency, comparison, influence. (Raman & Viswanathan, 2011) suggests that security indicators that influence purchasing decisions consist of six indicators, namely integrity, prevention, authenticity, confidentiality, privacy, availability. The Operational Definition and Measurement of Variables in this study will be explained in the following table:


 

Table 1. Operational Definitions and Measurement of Variables

No.

Variable Description

Indicator

Indicator Explanation

1

Promotion (X1)

(Kotler & Keller, 2016)

Promotional Message

Is a measure of how much both promotional messages are carried out and conveyed to the market.

Promotion media

Is the medium used

by the company in carrying out the promotion.

Promotion Time

Is the duration of the promotion

done by the company.

2

Review

Product

(X2) (Lackermair et al., 2013)

Awarness

Buyers are aware of the product reviews on tokopedia.com and use those reviews in the selection process.

Frequency

Buyers often use the product review feature on Tokopedia as a source of information.

Comparison

Before buying, the buyer reads the reviews of the product to be purchased, which are available on Tokopedia one by one and compares

Effect

The product review feature on Tokopedia has an influence on product selection.

3

Security Used (X3) (Gauzente, 2004)

Integrity

The ability of the Tokopedia site to prevent unauthorized data modification.

Nonrepudiation

The ability of the Tokopedia site to ensure that one of the parties does not renege on the agreement after the transaction.

Authentication

The ability of the Tokopedia site to identify a person's identity.

Confidentiality

The ability of the Tokopedia site to ensure confidentiality that the messages and data available are safe.

Privacy

The ability of the Tokopedia site to provide control over personal information to users.

Availability

Ability to ensure that the Tokopedia site is available

function according to existing functions.

Source: Processed Research Data, 2022

 


Data analysis was carried out by multiple linear regression analysis where in this study, the data was processed using statistical methods through the SPSS for Windows application. Regression analysis in this study is to determine how much influence the independent variables (independent) consisting of Promotion (X1), Product Reviews (X2) and Security (X3) have on the dependent variable (dependent) namely Purchase Decision (Y). This test is carried out by using a model test using the coefficient of determination (R2). Meanwhile, hypothesis testing was carried out on the results of the analysis, namely the multiple linear regression equation model and the t test. The t test is done by comparing the value of t count with t table. If t count > t table, it is said that the effect is significant and if t count < t table, it is said that the effect is not significant.

 

Results and Discussion

The research results are illustrated from the results of the analysis used to perform model testing and hypothesis testing. These results were obtained from data processing using SPSS.


 

Table 2. Results of the Coefficient of Determination (R2)

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

,838a

,706

,692

2,59403

a.    Predictors: (Constant), Security, Product reviews, Promotion

b.    Dependent Variable: Purchase decision

Source: SPSS v.25 Output Data, Processed in 2022

 

Table 3. Multiple Linear Regression Test Results

Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

T

Sig.

B

Std. Error

Beta

(Constant)

-2.082

3.288

 

-.633

.528

Promotion

.507

.117

.320

4.313

.000

Prod. Review

.348

.131

.239

2.662

.009

Security

.376

.082

.400

4.572

.000

Source: SPSS v.25 Output Data, Processed in 2022

 


Based on table 3. shows the results of multiple linear regression analysis obtained a regression equation that represents the effect of the variables Promotion (X1), Product Reviews (X2), Security (X3) on the Purchase Decision variable (Y):

 

Y= 2,082 + 0,507X1 + 0,348X2 + 0,376X3

 

b1� =� 0,507� shows that the Promotion variable (X1) has a positive effect on Purchase Decisions (Y). This means that if the Promotion increases by one unit, the Purchase Decision will increase by 0.507 one unit with the assumption that the other independent variables are fixed.

b2 = 0,348 shows that the product review variable (X2) has a positive effect on Purchase Decisions (Y). This means that if the product review has increased by one unit, the Purchase Decision will increase by 0.348 one unit with the assumption that the other independent variables are fixed..

b3 = 0,376 shows that the security variable (X3) has a positive effect on purchasing decisions (Y). This means that if Security increases by one unit, the Purchase Decision will increase by 0.376 one unit with the assumption that the other independent variables are fixed.


 

Table 4. Results of Hypothesis Testing with t Test

Variable

T count

Sign.

T table

Service quality

4,313

0,000

1,986

Price

2,662

0,009

1,986

Trust

4,572

0,000

1,986

Source: SPSS v.25 Output Data, Processed in 2022

 


1)   Promotion Variable (X1)

It is known that the Sig value for the effect of Promotion (X1) on Purchase Decision (Y) is 0.000 <0.05 and the value of t arithmetic 4.313 > t table 1.986 so it can be concluded that Ho is rejected H1 is accepted which means that Promotion (X1) has a significant effect on Purchase Decision (Y).

2)   Product Reviews (X2)

It is known that the Sig value for the effect of product reviews (X2) on Purchase Decisions (Y) is 0.009 <0.05 and the t value is 2.2662 > t table 1.986 so it can be concluded that Ho is rejected H2 is accepted which means product reviews (X2) have a significant effect to the Purchase Decision (Y).

3)   Security Variable (X3)

It is known that the Sig value for the effect of Security (X3) on the Purchase Decision (Y) is 0.000 <0.05 and the t-count value is 4.572 > t table 1.986 so that it can be concluded that Ho is rejected, H3 is accepted, which means that Security (X3) has a significant effect on the Purchase Decision ( Y).

Research

This study discusses the effect of promotion on purchasing decisions, the influence of product reviews on purchasing decisions and the influence of security on purchasing decisions through the Tokopedia application. The explanation of each variable effect is explained as follows:

1.    Effect of Promotion (X1) on Purchase Decision (Y)

Based on the results of testing the t test hypothesis on the Promotion variable, it is obtained t count 4.313 is greater than t table 1.986, while the significance level of 0.000 is smaller than 0.05.

Based on the results of multiple linear regression analysis, the value of b1 = 0.507 indicates that the Promotion variable (X1) has a positive effect on Purchase Decision (Y). This means that if the Promotion increases by one unit, the Purchase Decision will increase by 0.507 one unit with the assumption that the other independent variables are fixed.

This study is in accordance with research conducted by (Amba & Sisnuhadi, 2021) in her research entitled The Effect of Promotion on Purchase Decisions with Brand Awareness as Mediation on Shopee E-Commerce Consumers. Vol. 11 No.1 September 2021, states that Promotion (X1) has a significant positive effect on purchasing decisions (Y).

In this study, it is known that Tokopedia is one of the largest e-commerce in Indonesia. The massive promotions provided by Tokopedia continue to innovate and create, which will produce positive consequences for the company in the future. Things that can be done include creating attractive promotional messages and following the latest trends, using various kinds of information media to promote Tokopedia to the public.

2.    Effect of product reviews (X2) on purchasing decisions (Y)

Based on the results of the t test hypothesis testing on the promotion variable, it was obtained that t count was 2.662 which was greater than t table 1.986, while the significance level of 0.009 is less than 0.05Berdasarkan hasil pengujian hipotesis uji t pada variabel promosi diperoleh t hitung 2,662 lebih besar dari t tabel 1,986, sedangkan dari taraf signifikansi sebesar 0,009 lebih kecil dari 0,05.

Based on the results of multiple linear regression analysis, the value of b2 = 0.348 indicates that the product review variable (X2) has a positive effect on purchasing decisions (Y). This means that if the product review has increased by one unit, the Purchase Decision will increase by 0.348 one unit with the assumption that the other independent variables are fixed.

This study is in accordance with research conducted by (Ivadah & Sharif, 2021) in his research entitled The Effect of Product Reviews on Consumer Purchase Decisions of Fashion Products at Shopee E-Commerce. Vol.8, No.4 August 2021, states that Perceived reviewers emotion affects the perceived product quality of consumers of fashion products on Shopee e-commerce. This shows that with product reviews, consumers can perceive product quality before buying fashion products on Shopee e-commerce.

With product reviews, consumers can ensure positive and negative reviews which will have a very good impact on gaining the trust of consumers, therefore the product review feature on Tokopedia is always improved again by including the item photo feature in the review so that buyers are more confident with the products purchased.

3.    Effect of Security (X3) on Purchase Decision (Y)

Based on the results of testing the t test hypothesis on the Security variable, it is obtained t count 4.572 is greater than t table 1.986, while the significance level of 0.000 is smaller than 0.05.

Based on the results of multiple linear regression analysis, the value of b3 = 0.376 indicates that the security variable (X3) has a positive effect on purchasing decisions (Y). This means that if Security increases by one unit, the Purchase Decision will increase by 0.376 one unit with the assumption that the other independent variables are fixed.

With security that guarantees the rights of Tokopedia consumers, consumers will feel safe and trusted to transact at Tokopedia, various kinds of security features can protect consumers' personal information and transaction information in order to avoid losses in buying and selling transactions at Tokopedia, therefore Tokopedia continues to innovate to improve transaction security services.

 

Conclusion

Promotion is one of the determining factors for the success of a marketing program. Regardless of the quality of a product, if consumers do not know or have never hear it and are not sure that the product has benefits for them, then they will never buy it therefore the Promotion variable has a significant effect on purchasing decisions. This means that the better the promotions carried out by Tokopedia, the more sales will be due to a purchase decision.

Almost every potential buyer in e-commerce reads product reviews online before making a purchase decision. Therefore, reviews are considered important for many business sites and the level of trust of buyers in reviews is also increasing from year to year. This shows that positive and negative reviews really help consumers to determine purchasing decisions and increase consumer intentions to use the Tokopedia application.

The second hypothesis which states that there is a partial effect of the security variable on purchasing decisions is accepted. partial test (t test) shows that trust partially has a significant effect on purchasing decisions in the Tokopedia application and this provides an understanding that security is closely related to consumer purchasing decisions. Transaction security is one of the factors that consumers are interested in using the Tokopedia application.

 

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Jizenji Tyas Wirastomo, Langgeng Sri Handayani (2022)

 

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