E3S Web of Conferences 426, 01081 (2023) https://doi.org/10.

1051/e3sconf/202342601081
ICOBAR 2023

The Effect of Live Streaming on Social Commerce Platforms on

Generation Z’s Purchase Intention
Dhia Fairistha1, Iva Bernessa1, Lurencia Junika Cen1, Mediana Aryuni2 *

1Accounting Information Systems Program, Information Systems Department, School of Information Systems, Bina Nusantara
University, Jakarta, Indonesia 11480
2Information Systems Department, School of Information Systems, Bina Nusantara University, Jakarta, Indonesia 11480

Abstract. Generation Z's use of social media has become their interest in carrying out daily activities.
Currently, social media's role is not only as a communication tool but also as a platform for buying and
selling activities, known as social commerce. Sellers use various existing social commerce features to
support their buying and selling activities, live streaming being one of them. Sellers often use the live
streaming feature to show tangible and real-time goods sold and interact with Generation Z customers to
increase purchase intention and product sales results. This study aims to examine the influence of utilitarian
value, hedonic value, information quality, and service quality on perceived value which impacts the level of
involvement of Generation Z customers to participate in live streaming sales activity and the impact on their
purchase intentions. The sample in this study had 434 respondents using the online questionnaire method,
which was distributed in the Jakarta region. Hypothesis testing was carried out by using PLS-SEM analysis
using SmartPLS software. According to the outcome of this study, perceived value is positively influenced
by utilitarian value, hedonic value, information quality, and service quality, perceived value influences
customer engagement, so it also influences Generation Z purchase intention.

1 Introduction content, and live streaming, to sell products or services,

connect and engage with their customers, and develop
Customers may now utilize social media platforms to acts of loyalty. Live streaming has become increasingly
discover and purchase products or services while popular in Indonesia over the past two years following the
maintaining social media's primary role, communication, outbreak of COVID-19 [5] and emerged as a business
because of social commerce. The utilization of social model that allows sellers to deliver fun and engaging
media for e-commerce transaction purposes develops demonstrations [6]. This popularity is also supported by
social commerce as a business model now people Generation Z's preferences over video-based and live-
recognized [1]. Compared to e-commerce, social stream content at 75% and 13%, respectively [3].
commerce platforms such as TikTok, Facebook, and Generation Z is interested in the concept of social
Instagram provide more customers to create value by commerce that allows customers to interact directly with
collaborating with sellers and engaging in online sellers, such as asking about product-related issues;
discussions with other customers [2]. Customers in the additionally, the live streaming feature in social
study were defined as Generation Z (born between 1997 commerce platforms minimizes customers' concerns
and 2012) since Generation Z is Indonesia's largest about the integrity of the seller due to the lack of in-person
generation group, representing 27.94% of the overall interaction [7]. Purchase intention can arise directly
population (74.93 million people) [3]. through social interaction, significantly when the
Generation Z is much savvier in technology than interaction facilitates the exchange of information and
earlier generations (e.g., millennials) since technology has recommendations [8].
emerged throughout their youth. The capacity of A prior study on the social commerce platform [9],
Generation Z to effortlessly absorb and master technology Instagram, found that information and service quality
and information, especially the internet, has become a affects perceived value, whereas perceived value affects
culture and habit [4]. Furthermore, the second most customer engagement. The study also recommended
common activity Generation Z Indonesians performs on future research to include other variables in predicting
the internet is accessing social media at 86%, while 52% customer engagement in social commerce platforms.
of Generation Z do internet purchasing activities is rated Utilitarian and hedonic values on live streaming
fifth [3]. collectively significantly impact e-commerce customers'
As business firms, sell *ers use social media features, purchase intention, with customer engagement mediating
in particular online chats, review systems, video-based the relationship [5].

*
Corresponding author: mediana.aryuni@binus.ac.id

© The Authors, published by EDP Sciences. This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0
(https://creativecommons.org/licenses/by/4.0/).
E3S Web of Conferences 426, 01081 (2023) https://doi.org/10.1051/e3sconf/202342601081
ICOBAR 2023

This study discusses the influence of information highlight the use value of a product and an efficient way
quality, service quality, utilitarian values, and hedonic of getting it compared to other aspects.
values on perceived value, which perceived value can
affect customer engagement so that it has an impact on
2.2 Hedonic Value (HDV)
customer purchase intentions in live streaming on social
commerce platforms. We also hypothesized that The word "hedonism" can be defined that the hedonic
perceived value and customer engagement would be lifestyle applied by customers is a strong impetus from
associated with increased customer purchase intention in within when doing online shopping; this is because the
live streaming on social commerce platforms. hedonic lifestyle is a lifestyle that prioritizes pleasure and
satisfaction so that when customers make decisions to buy
2 Literature Review products, customers tend to use feelings rather than logic
[18]. The daily lifestyle refers to customer activities and
habits focusing on fulfilling desires, personal pleasure,
2.0 Social Commerce and Live Streaming and satisfying secret desires. Idea shopping and
gratification shopping is one of the dimensions of hedonic
The use of social media today is aimed at sharing values [19]. Adventure shopping is also added to the list
information and improving the overall business of hedonic value dimensions [17]. Therefore, it is evident
experience, where users can contribute to purchasing and that utilitarian and hedonic have different values in
selling products and services in social commerce, which purchasing goods, especially in social commerce.
is a part of e-commerce [10-12]. In social commerce Hedonic value is based on outcomes related to
websites, users also use social networks and promote spontaneous subjective and personal judgments, such as
social interaction, which is also one of the characteristics customer satisfaction, while utilitarian value is objective
of online brand communities. However, in contrast to and prioritizes utility [15].
participants in brand communities, social commerce
allows users to make website purchases [13].
Recent technology breakthroughs enable sellers to 2.3 Information Quality (IQT)
present and promote their items online in real time. This
The use of information and the extent of willingness to
is referred to as live streaming. It allows sellers to connect
adopt is influenced by a number of factors, like the quality
with customers, demonstrates a particular product feature
of information being a prerequisite for decision-making
and respond to client inquiries in real time while
when making online purchases. This statement means that
scheduling live broadcasting that encourages customers to
information quality is a subjective consumer assessment
purchase products exhibited online [14]. As such,
regarding the characteristics of information and whether
authenticity and visualization can reduce customer
it meets the needs and objectives of use or not. High
uncertainty, increase seller loyalty, and improve
confidence in the quality of the information provided can
customers’ knowledge of what they should need when
support the success of social commerce, where the higher
shopping conventionally [5].
satisfaction and trust of customers in the information
provided can support customer decision-making in buying
2.1 Utilitarian Value (UTV) products or goods [20].
High-quality information can be seen from several
Utilitarian values in customers deciding to buy a product criteria [21]. First, the accuracy of the information
are related to logical thinking and lead to the purpose of provided, which customers obtain, must be error-free and
purchasing the product [15]. From a utilitarian not misleading and have an accuracy value so that there is
perspective, customers are seen as homo economicus no doubt about its correctness. Second, the information
because customers emphasize functional thinking, provided to customers is right on time; it should be on
product-centeredness, and the customer decision process time so that the information that comes to the recipient is
in fulfilling predetermined consumption [16]. One-way still valuable for decision-making. Third, the information
customers fulfil this predetermined consumption is by provided must be relevant, which means that the
online shopping, where customers expect that when doing information is useful and has value according to what
so, customers can shop while saving time, effort, and customers need. Fourth, the information must also be up-
money, they have. However, in online shopping, to-date so that customers always know and get the latest
customers' doubts about the seller and the product become information. In addition, information quality is also the
an obstacle to buying the product because there is no main pillar that can influence customer attitudes and
guarantee of product authenticity provided by the social interaction in social commerce, which is a valuable source
commerce. for customers [13].
Therefore, live streaming shopping is one of the best From some of the above definitions, it has been
solutions for customers because the seller will provide discovered that information quality including the most up-
more information about the product, answer customer to-date, accurate, and relevant information plays a major
questions, and show the product in real-time in a way that role in customer purchase decisions through live
is not edited like an advertisement so that it can fulfil and streaming.
comply with utilitarian values which emphasize rational
and practical aspects [17]. As a result, utilitarian value is
a form of customer attitude in shopping activities that will

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2.4 Service Quality (SQT) From these several definitions, it has been observed that
perceived value is an assessment of the value comparison
Level of service delivered may match customer between the sacrifices that customers have made and the
expectations, which can be reached via the fulfilment of benefits received from using these goods or products,
the customer's needs and delivery accuracy to match whether following customer expectations or not.
customer expectations [22]. Service quality, often known Therefore, perceived value is significant in carrying out
as e-service quality, is an evaluation by customers who sales activities because if a product cannot produce
get service quality from a business or service provider satisfying value, then the product will not be able to
over an internet network [23]. Service quality used to compete with other competing products.
determine how much customer satisfaction is from online
shopping activities or the services of an internet-based
seller in facilitating effective and efficient online 2.6 Customer Engagement (CSE)
shopping, which includes purchasing and delivering
Customer engagement is the amount of each existing or
products or services.
future customer's interaction and relationship with
Service quality has five main dimensions [24]. First,
corporate operations [28] to establish trust and long-term
reliability is the seller's ability to maintain the service
loyalty to a product or service. In live streaming activities
quality. Second, responsiveness is a willingness and
on social commerce platforms, customer engagement can
ability to help and respond quickly to customer requests
be seen from word-of-mouth activities, helping fellow
and help solve customer problems. Third, assurance is a
consumers, providing reviews and recommendations [29],
good performance ability and knowledge the seller
and providing support in the form of comments or likes.
possesses to generate customer trust and confidence.
Sellers utilize the convenience of various features
Fourth, empathy is a form of care and attention given to
available in social commerce to interact with customers in
customers and seeks to understand customer desires. Fifth
selling products on live streaming. Four indicators are the
is tangibility, which describes the company's physical
main points in measuring customer engagement [30]; the
facilities, equipment, materials and employees'
first is enthusiasm which is a strong level of interest from
appearance.
individuals in a product. Second, attention is the
When making sales via live streaming, sellers and
individual's level of focus on a brand/product. Third,
customers indirectly interact with each other, such as
interaction is an interaction that takes place outside the
sellers answering questions given by customers or
buying process between fellow customers and sellers.
responding to customer responses regarding the products
Fifth is the identification which leads to the customer's
being sold. The quality of service provided by the seller
perception of belonging to a particular brand.
when live streaming in a short time is one of the things
that must be considered and maintained at the quality level
because it is a driving factor in attracting the attention and 2.7 Purchase Intention (PUI)
interest of customers to buy products.
The purchase intention that arises in consumers towards a
product or service indicates that consumers will plan to
2.5 Perceived Value (PCV) buy the product or service at any time. Previous research
states that increasing purchase intention means an
Perceived value is a set of benefits that customers expect
increase in the likelihood of purchasing goods/services,
to get, both from product value, service value such as
which means that if consumers' purchase intention shows
seller friendliness, accuracy, and speed of the seller in
a positive value, it will positively affect consumer
serving, employee value in terms of appearance and
involvement which encourages consumers to make
communication shown to customers, and also image value
purchases [31]. In terms of social commerce, consumer
or the same as image [25]. Perceived value is the product
purchase intention is something to consider as a
evaluation value provided by customers from the results
consumer's desire to purchase through a social commerce
of utilizing the product functions based on the value
platform [31, 32]. Purchase intention also means the
received and the value provided by the product [9]. More
likelihood of a customer deciding when buying
concretely, perceived value is a value that involves the
something, which is the individual result of the customer's
value of advantages (quality, benefits, usefulness, value)
evaluation of the related product [33]. This study
with disadvantages (price, sacrifice) felt by the customer
describes purchase intention as a measure of consumer
against the use of a product or service [26]. The perceived
willingness to buy products online [34].
value dimension consists of four main aspects [27],
Figure 1 depicts the proposed hypothesis on the
namely, emotional value, derived from the positive
influences between variables. Therefore, we postulate:
feelings that arise from using the product/service. Second,
H1: UTV has a positive influence on PCV
social value improves the customer's social self-concept
H2: HDV has a positive influence on PCV
obtained from product utility. Third, quality value is the
H3: IQT has a positive influence on PCV
use value obtained from the impression of excellence and
H4: SQT has a positive influence on PCV
the desired performance of the product. Fourth, monetary
H5: PCV has a positive influence on CSE
value is the use value obtained from products/services due
H6: CSE has a positive influence on PUI
to cost cuts in a short period of time and costs in a long
period.

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Fig 1 Research Model

Prior to the collection of data, a few experts were

3 Research Method appointed to help review and proofread the questionnaire,
which resulted in some minor changes being made to
3.1 Sampling improve the ease of understanding the questions without
making changes to the original scale and measurements.
This quantitative study uses a PLS-SEM, a partial least
square structural equation model, as the best analysis
method for validating and predicting ability evaluation
4 Result and Discussion
[35]. PLS enables researchers to analyze samples even as Table 1 Respondent Demographics
small or less than 500 [36] and is appropriate for this study
because it only includes respondents from a specific
Variables Categories Frequency %
geographic area. The PLS-SEM algorithm and
bootstrapping test were run using the SmartPLS software Gender Male 173 40%
to measure the hypothesis validity. Female 261 60%
Data were collected in DKI Jakarta, a province located
Age <17 15 4%
in Indonesia, which has one of the world's most active
internet users, focusing on Generation Z users [37]. We 17-19 110 25%
used the Slovin formula to calculate the total samples 20-22 169 39%
required to determine the sample size. The latest Census 23-25 140 32%
has shown that Jakarta's total Generation Z population is
854.382 [38]. As a result, a minimum of 400 samples were Domicile West Jakarta 95 22%
required. Since we are trying to reach out to as many Central Jakarta 87 20%
respondents as possible from various municipal regions in South Jakarta 86 20%
Jakarta, we used the snowball sampling method. We East Jakarta 88 20%
obtained 434 samples from Jakarta-based respondents
who had watched live streaming on social commerce. North Jakarta 78 18%

According to the demographic profiles of respondents

3.2 Questionnaire and Measures who completed the questionnaire, as depicted in Table 1,
the frequency of both male and female respondents is
A questionnaire was constructed in Indonesian and was
close, with females dominating higher. Since the gap is
shared online with respondents through social media
not too far away, we could still view equal perspectives
groups on various platforms who frequently use social
from both sides. Since our paper mainly focuses on
commerce and have ever seen or often do live streaming
Generation Z internet users (1997-2012), we have
shopping using social commerce platforms. Using a
provided the corresponding age range for respondents to
Likert scale of five-point with anchors ranging from (1)
fill in. The majority of the respondents were in the age
"strongly disagree" to (5) "strongly agree." To ensure the
range of 20-22, with 39%, with the 23-25 age range
respondents' validity, a screening question was added to
coming in second. Respondents also need to fill in their
justify that the respondents have had experience using
domicile, where it was shown that most of the respondents
social commerce platforms and have seen or shopped
are from the West 22% and also from the East, South, and
through live streaming.
Central 20% each, respectively. The rest of the
All measurement items have been adapted from
respondents are from North Jakarta at 18%.
relevant former research and adjusted to the social
commerce context. UTV and HDV were both measured
by five and four items, respectively [17,19]; IQT and SQT
were measured by four items [9]; PCV was measured by
four items [9]; CSE was measured by four items [17, 39];
PUI measured by four items [17, 39].

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4.1 Validity and Reliability Test

Table 2 Outer Loading Factors

Utilitarian Hedonic Information Service Perceived Customer Purchase

Value Value Quality Quality Value Engagement Intention
UTV01 0,850
UTV02 0,865
UTV03 0,875
UTV04 0,828
UTV05 0,838
HDV01 0,886
HDV02 0,876
HDV03 0,818
HDV04 0,841
IQT01 0,896
IQT02 0,911
IQT03 0,897
IQT04 0,890
SQT01 0,881
SQT02 0,896
SQT03 0,919
SQT04 0,903
PCV01 0,890
PCV02 0,907
PCV03 0,914
PCV04 0,888
CSE01 0,903
CSE02 0,926
CSE03 0,924
CSE04 0,921
PUI01 0,907
PUI02 0,920
PUI03 0,901
PUI04 0,844

Table 3 Reliability Test

Cronbach's Alpha rho_A Composite Reliability

(CA) (CR)
UTV 0.905 0.906 0.929
HDV 0.878 0.880 0.916
IQT 0.921 0.921 0.944
SQT 0.922 0.923 0.944
PCV 0.921 0.921 0.944
CSE 0.938 0.938 0.956
PUI 0.916 0.920 0.941

As seen in Table 2, the results of loading factor testing reliability test. The Cronbach alpha measurement results
generated a loading value above 0.5 (>0.5) [40]. This show that the internal consistency values are above 0.6 for
figure is used to measure the validity of existing all latent variables, and composite reliability values are
indicators, so it can be seen that 29 indicators in this study above 0.9 for all latent variables, which indicates high
meet the validity criteria. internal consistency [17]. Rho_A value is displayed as it
As seen in Table 3, the research model's reliability and helps measure reliability. Rho_A is expected to have a
validity were further measured by calculating the CA, CR, value of 0.7 or more. The Rho_A values measured on the
and AVE. The table above shows the value of construct

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variables shown in Table 3 are all above 0.7, indicating coefficient of determination (R2) assesses the amount of
good reliability [41]. influence the independent factors have on the dependent
variable. R2 is deemed substantial if it is 0.75, moderate
Table 4 Validity Test
if it is 0.50, and weak if it is 0.25 [42].
Average Variance Extracted (AVE)
Table 5 R Square
UTV 0.725
HDV 0.732 R2 Description
IQT 0.808 PCV 0.749 Substantial
SQT 0.810 CSE 0.762 Substantial
PCV 0.809 PUI 0.587 Moderate
CSE 0.844
PUI 0.799 Table 5 displays the structural model's results. The
coefficient of determination (R2) for a perceived value is
The AVE shown in Table 4 was calculated to 0.749, for customer engagement is 0.762, and for
determine the convergent validity. We use the Fornell- purchase intention is 0.587, indicating an adequate level
Lacker criteria for all latent variables, where the AVE of predictive power.
value must exceed 0.5. AVEs of all the variables stated in This study’s proposed hypotheses are explained using
the table above measured greater than 0.5, indicating that the direct path coefficient. Path coefficient uses to
more than 50% of the variance's indicators could be determine the influence of the independent variables
accounted for. Based on the recommended value of AVE, UTV, HDV, IQT, and SQT on PCV, the relationship
which is higher than 0.5 [35], this also shows adequate between PCV and CSE, and the influence of CSE on PUI
validity. in social commerce platforms. To determine the
significance of the coefficient paths, a bootstrapping
calculation was initiated with 499 subsamples [42]. The
4.2 Discussion
bootstrapping findings are presented in Table 6 below.
After analysing the results, the following will examine the
structural model and perform hypothesis testing. The
Table 5 Path coefficient

Coefficient Standard Deviation T Statistics P Values Hypothesis Result

UTV -> PCV 0,210 0,063 3.338 0,001 H1: Supported
HDV -> PCV 0,260 0,050 5.231 0,000 H2: Supported
IQT -> PCV 0,260 0,072 3.597 0,000 H3: Supported
SQT -> PCV 0,239 0,074 3.217 0,001 H4: Supported
PCV -> CSE 0,866 0,018 47.684 0,000 H5: Supported
CSE -> PUI 0,766 0,027 27.977 0,000 H6: Supported

All the proposed hypotheses result in Table 6 shows be accepted. Previous studies [9, 39] on Instagram as one
that they are all supported. With a path coefficient of of the social commerce platforms show that these findings
0.210, it can be demonstrated that the UTV variable are aligned. Customers will have an excellent impression
positively influences the PCV on social commerce of the seller/online stores on Instagram if the information
platforms, proving that the hypothesis (H1) is accepted. is up-to-date and reliable.
The findings are consistent with a prior study [19], which Next, the result of hypothesis (H4) concludes that
found that utilitarian value had a favourable impact on SQT positively influences PCV on social commerce
perceived value. Utilitarian value based on customer platforms with a path coefficient of 0.239, so hypothesis
experience or judgment after joining live-streaming on (H4) is proven to be accepted. Based on prior studies'
social commerce platforms could increase the customer's results [9, 39] states that there is a positive influence of
perceived value. service quality on perceived value. If the seller provides
The HDV positively influences the PCV of social excellent assistance to the customer when there is an
commerce platforms with a path coefficient of 0.260, so issue, the customer whose problem has been fixed will
hypothesis (H2) is proven to be accepted. The findings are write a positive review, which has the power to raise the
in accordance with previous research [19], which found customer's perceived value.
that hedonic value positively impacted perceived value. The PCV positively influences the CSE on social
Hedonic value demonstrates the customer's desire to commerce platforms with a path coefficient of 0.866, so
decrease stress and keep up with trends by purchasing hypothesis (H5) is proven to be accepted. This value is the
online via live streaming on social commerce platforms, highest, aligning with prior studies [9,39]. Customer
especially when they obtain great deals. engagement may grow if the seller can portray the goods
The test findings suggest that IQT positively based on the value paid and the risk the customer will
influences the PCV on social commerce platforms, with a face. If customer engagement has risen, a relationship will
path coefficient of 0.260, so hypothesis (H3) is proven to emerge between the customer and the seller, and the

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customer will be interested in getting involved in live- and more accurate predictions that can support previous
streaming activities. research on purchase intention. Second, this research only
Finally, hypothesis testing (H6) results show that CSE examines some of the main dimensions related to
influences PUI positively, with a path coefficient of perceived value, namely social value [27], so that further
0.766. These findings align with a recent study [5]. When research can raise and include social value to explain the
a customer develops a connection with the seller, this better and more complete perceived value. Third, this
improves customer loyalty. Customers will prefer research does not focus on one social commerce platform,
purchasing a product or service from a seller/online so customer behaviour on each social commerce platform
business they acknowledge and trust. is not known.
Researchers also suggest that sellers use the live
streaming feature in social commerce to increase the
5 Conclusion perceived value, influencing customer purchase intention.
What needs to be done is to continuously improve the
5.1 Conclusion quality of information by providing information that
customers need, is reliable, and is up to date. Another
This study aims to determine the factors that influence thing is improving service quality in selling products to
Generation Z's purchase intention during live streaming customers during live streaming and prioritizing two-way
on social commerce platforms, starting from the existence interactions between sellers and customers during live
of customer engagement that occurs during live streaming sales to answer customer questions, solve
streaming, which is influenced by perceived value, where problems, and apply a friendly attitude in interacting with
previously perceived value was also influenced by customers. In addition to information quality and service
utilitarian value, hedonic values, information quality, and quality, sellers can pay attention to utilitarian values
service quality provided by the seller. Based on the 434 related to products that must suit customers' needs and be
Generation Z respondents who participated, all easy to obtain so that sellers who sell products via live
respondents had watched live streaming on social streaming can attract customers' attention and interest in
commerce platforms. Six hypotheses were formed from buying these products. Another value sellers must
29 indicators stating the relationship between UTV, HDV, consider when selling live streaming is hedonic; sellers
IQT, and SQT factors with PCV, PCV on CSE, and CSE must ensure that the products being sold attract customers
on PUI through live streaming in social commerce and can provide satisfaction and happiness when buying
platforms, stating that all hypotheses are valid. these products. With these values fulfilled, it will increase
the value felt by customers, which aims to strongly
5.2 Significance and Implications influence customer engagement in live streaming on
social commerce, which can impact customer purchase
The present study is significant because it addresses live intentions.
streaming as a trending feature of social commerce use on
Generation Z. Given the widespread use of social
commerce among this age group, understanding the
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