An empirical study of the impact of live streaming quality on purchase intention in Indonesia

Abstract

Rapid development and popularity of the internet have increased e-commerce businesses all over the world, particularly in Indonesia. Due to this, the e-commerce sector becomes more competitive and hard to enter. Live-streaming comes as a strategy for e-commerce enterprises to gain and increase engagement and purchase intention of their customers. In light of this phenomenon, we conducted this study to observe the impact of live-streaming quality on purchase intention in Indonesia. We employed the use of the Stimulus-Organism-Response (S-O-R) framework to investigate how external factors can stimulate the desire to engage and develop the intention to purchase goods. Within this constructed framework, we proposed that the stimuli of external factors (interactivity, expertise and attraction, entertainment, and accessibility) can influence the internal desire of an organism (trust and follow intention), which will generate the response through purchase intention. By using questionnaire that we developed to create a live streaming scenario, we acquired 130 respondents from Indonesia. Through the structural equation modeling results, we found that perceived quality values of live streaming contribute to both perceived customers’ trust and follow intention, predicting customers’ intention to purchase. Keywords: Live-Streaming Quality, Purchase Intention, Perceived Trust, Follow Intention, S-O-R Model.