Determinants of Actual Purchase Decisions in Carousell Indonesia: An Empirical Analysis

Abstract

Carousell is one of the fastest-growing E-commerce sites in Southeast Asia, including Indonesia, Malaysia, and the Philippines. With many transactions occurring in Indonesia, there are differences in user behavior when deciding to transact through Carousell. Therefore, this study aims to analyze and determine the factors influencing a person's purchase decision when transacting on Carousell. This study uses a quantitative method to collect data by distributing questionnaires to 174 respondents via Google Forms; then, the data processed and analyzed using the Partial Least Square Structural Equation Modeling (PLS-SEM) method and multiple linear regression analysis. The findings reveal that Service Quality, Security, and Privacy positively impact Trust. Moreover, Trust, along with Ease of Use and Word of Mouth, positively influences Purchase Decisions. However, it is essential to note that Information Quality does not significantly affect Trust and may not be the key determinant of user’s trust. Overall, this research provides valuable insights into the factors influencing purchase decisions on the Carousell platform in Indonesia. The results highlight the significance of Service Quality, Security, Privacy, Trust, Ease of Use, and Word of Mouth in shaping consumers' purchase decisions. The research results can guide Carousell and other E-commerce platforms to improve service quality, security measures, privacy protections, and trust-building strategies to drive customer trust and encourage purchase decisions.