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Factors Affecting Skincare Purchase Intention During E-Commerce Live Streaming

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da vinciss
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Factors Affecting Skincare Purchase Intention During E-

Commerce Live Streaming

Ravanell Avaryl1* and Nurrani Kusumawati 2


1,2 Institut Teknologi Bandung, Bandung, Indonesia
ravanell_avaryl@sbm-itb.ac.id
Corresponding author

Abstract. E-commerce has transformed the beauty industry by providing cus-


tomers with abundant content and information hosted by Key Opinion Leaders
(KOLs) as the main anchor to guide their purchasing decisions. This research
investigates several factors in live-streaming e-commerce on customers' percep-
tion of value, trust, and purchase intentions for skincare products. While live
shopping is popular, it has not yet become the dominant platform for buying
beauty products, creating trust issues for online skincare purchases in Indonesia.
The study adopts a comprehensive approach, combining qualitative and quanti-
tative analyses. Qualitative data will be analysed using NVivo software with au-
tomated coding, while quantitative data will be examined using the Partial Least
Squares Structural Equation Modelling (PLS-SEM) method. The research targets
skincare enthusiasts experienced in live streaming, with a minimum of 12 re-
spondents for qualitative analysis and 200 respondents for quantitative analysis.
Additional variables, including brand preference and price promotion, will be
explored qualitatively and further analysed quantitatively along with e-commerce
live streaming, KOL presence, perceived value, perceived trust, and purchase in-
tention variables. The findings will emphasize the significant influence of KOLs
in e-commerce live streaming, shaping customers' perceived value, trust, and pur-
chase intentions for skincare products. It is recommended that e-commerce
sellers leverage KOLs in their live streaming features to enhance customers' de-
sire to purchase skincare products. This research contributes to understanding the
role of various factors in live streaming e-commerce and offers guidance for re-
fining strategies and maximizing the potential of live streaming platforms in the
dynamic beauty industry.

Keywords: E-Commerce, Key Opinion Leader, Live Streaming, Purchase Inten-


tion, Skincare.

1 INTRODUCTION
E-commerce has witnessed significant growth in Indonesia and is now widely
recognized as an integral part of customers' daily lives. Due to advancements in
technology and the impact of the Covid-19 pandemic, which restricted physical
interactions, customers have increasingly shifted towards digital platforms for their

© The Author(s) 2023


S. Kusairi et al. (eds.), Proceedings of the International Conference on Sustainable Collaboration in Business,
Technology, Information, and Innovation (SCBTII 2023), Advances in Economics, Business and Management
Research 265,
https://doi.org/10.2991/978-94-6463-292-7_5
48 R. Avaryl and N. Kusumawati

shopping needs. To enhance the shopping experience, many brands are leveraging Key
Opinion Leaders (KOLs) in their live shopping events. KOLs hold influence over
purchasing decisions by utilizing their personal qualities and informal networks to sway
customers' opinions or actions. McKinsey predicts a rise in live shopping collaborations
with micro- and nano-influencers, who maintain close relationships with their
communities, offer affordability, and boast high engagement rates and credibility
(Solano, 2022).
Customers now feel more comfortable purchasing beauty products online, including
those that typically require trial and error. Online retailers face the challenge of
replicating the tactile experience of "touch-and-feel" in the virtual realm. However,
technology and the influence of social media have mitigated this challenge. E-
commerce has evolved beyond simple transactions, offering customers extensive
content before finalizing their purchases. Live streaming in e-commerce, particularly
in the beauty industry, allows live streamers to interact with viewers, sharing their
impressions of products and providing detailed real-time information about production,
usage instructions, and more (Wongkitrungrueng, 2020). The authenticity, visibility,
and interactivity of live broadcasts bring customers closer to freshly produced goods,
both in terms of space and time. Consequently, it is intriguing to examine how these
features of live streaming impact customers' intention to purchase products.
The potential of live shopping in the beauty industry lies in the intimate engagement
and product immersion it offers. The channels used by customers and brands are rapidly
evolving, with significant value at stake (Conferwith, 2022). However, live shopping
has not yet become the primary platform for purchasing beauty products, as 56% of
Indonesian customers have made purchases through live shopping (Ipsos, 2022). This
indicates that despite their growing popularity, live streaming features require further
investigation in e-commerce research to ensure their sustainable growth. Preliminary
research shows that 86.8% of respondents do not consider live shopping as their first
choice for purchasing skincare products, as they require more deliberation before
making beauty product purchases on live streaming platforms.
With numerous skincare products flooding the market and an abundance of
advertisements promising flawless complexions, potential customers often feel
overwhelmed. Additionally, customers face difficulties in identifying trustworthy
skincare sellers on online platforms, as there are numerous accounts with limited
information. This hesitation in establishing trust and value among Indonesian
customers, particularly when purchasing skincare products online, creates challenges.
If a transaction takes place during a live streaming session on an e-commerce platform
and the customer encounters fraudulent sellers with no resolution, they may
subsequently hold the e-commerce platform accountable for neglecting their rights.
However, the influence of live broadcast features on customers' purchase intentions for
fresh products, through perceived value and trust, remains unclear. Therefore, this
research aims to analyse the factors that can build value and trust in customers,
influencing their intention to buy skincare products through live streaming e-
commerce.
Factors Affecting Skincare Purchase Intention During 49

2 LITERATURE REVIEW
In conducting a comprehensive literature review, it is imperative to explore the state-
of-the-art in the field to accentuate the novelty and significance of one's research. A
meticulous examination of existing scholarly works and research findings serves as the
foundation for identifying the gaps in current knowledge.

2.1 E-Commerce
E-commerce, also referred to as electronic commerce or e-business, is the exchange of
goods and services via electronic communications. Through online retailers and
marketplaces, ecommerce has developed to make it simpler to find and buy products.
Through a simple and straightforward product display, direct broadcast of e-commerce
enables users to truly comprehend and master information about a product or brand (Su,
2019).

2.2 Live Streaming

The term "live streaming" describes the features and functions that enable in-the-
moment communication by heavily utilizing text, sound, and image. Additionally, live
streaming enables the delivery of reliable information to customers from a variety of
perspectives, enabling them to clearly evaluate the performance of products. (Guo et
al., 2021). Live streaming e-commerce can therefore promote a more interactive, real,
and visual shopping experience, attracting more potential customers and increasing the
customer's propensity to purchase (M. Li et al., 2022).

2.3 Key Opinion Leader

Key Opinion Leader (KOL) was generally defined as the small group of individuals
with significant influence in a particular field (Godey et al., 2016). This topic will
typically be related to the brand's products in some way, or at the very least, be
interesting to the types of consumers who might be interested in those products (Werner
Geyser, 2022). To capitalize on their influence and reach a larger audience, many
brands decide to work with KOLs to gain the awareness of their product which will be
converted into customer’s needs.

2.4 Perceived Trust


(Chung & Kwon, 2009) proposed trust as a feeling of security and willingness to
depend on someone or something. The term "trust" in the context of e-commerce refers
to a positive outlook and expectation regarding the goodwill and capacity of trading
partners or platforms to carry out their committed obligations (Dong et al., 2022).
50 R. Avaryl and N. Kusumawati

2.5 Perceived Value

In the context of a live streaming, perceived value can be defined as the general
perception and assessment of the goods or services by viewers based on their prior
subjective impressions of the product during the live broadcast (Yin & Qiu, 2021).
Meanwhile, (Jones et al., 2006) also proposed that perceived value is divided into utility
and hedonic value.

2.6 Purchase Intention

The willingness of a customer to buy a particular good or service is referred to as


purchase intent. Purchase intention, the dependent variable, is affected by both internal
and external factors (Morwitz et al., 2007). Purchase intentions are a sign of a
respondent's attitude toward making a purchase or using a service. Purchase intentions
can be used to gauge a new distribution channel's effectiveness, and managers can use
that information to determine which consumer groups and regions it should target
(Peña-García et al., 2020).

2.7 Hypothesis Development

2.7.1. E-commerce Live Streaming and Perceived Value


Previous research conducted by (Song et al., 2022) stated that E-commerce live
streaming which divided into several elements such as visibility and interactivity could
increase the customer’s perceived value. Strengthen with the statement from (Shang et
al., 2023), consumers’ perceived value came more from product-related influences
(price or quality) while participating in e-commerce live streaming. The proposed
hypothesis is as follows:
H1: E-commerce Live Streaming has positive influence on Skincare Perceived
Value.

2.7.2 E-commerce Live Streaming and Perceived Trust


Shows that background fitting (comprised of both product-background fit and anchor-
background fit) positively affect consumer cognitive process (perceived trust and
perceived value) where perceived trust is mainly affected by anchor-background fit
(Shang et al., 2023). Live streaming enables sellers to provide customers with a
comprehensive view of the product's features, lowering the risk associated with product
purchases and boosting customer trust (Song et al., 2022). Supported with the study
from (Lin et al., 2021) that shows perceived trust plays a key role in consumer purchases
of fresh products which has a greater impact on consumers’ willingness to buy. The
proposed hypothesis is as follows:
H2: E-commerce Live Streaming has positive influence on Skincare Perceived
Trust.

2.7.3 Key Opinion Leader’s Presence and Perceived Value.


Factors Affecting Skincare Purchase Intention During 51

Research conducted by (Dr. Ghulam Rasool Lakhan et al., 2021) concluded that key
opinion leaders positively influence customer’s value which divided into perceived
functional value and perceived emotional value. Added by another research that shows
homogeneity in key opinion leaders could influence the perceived emotional value
(Zhou & Tong, 2022) such as pleasure emotion, arousal emotion, emotional trust, and
admiration emotion (Meng et al., 2021). The proposed hypothesis is as follows:
H3: Key Opinion Leader’s Presence has positive influence on Skincare
Perceived Value.

2.7.4 Key Opinion Leader’s Presence and Perceived Trust


In the context of real-time live streaming e-commerce, the consumers' trust in the
product is influenced by the professionalism, authority, and popularity of the anchor
(Dr. Ghulam Rasool Lakhan et al., 2021). Opinion leaders connects customer with
merchant through a live experience. With this method, customers will have more
information available to them thanks to live online commerce resulting a greater level
of product trust. The proposed hypothesis is as follows:
H4: Key Opinion Leader’s Presence has positive influence on Skincare
Perceived Trust.

2.7.5 Perceived Value and Perceived Trust towards Purchase Intention.


(Y. Li & Peng, 2021) stated that perceived practical value and hedonic value positively
affect consumers’ willingness to buy. This statement is completed with another research
conducted by (Song et al., 2022) that shows not only perceived value that affects
customer willingness to buy, but so does perceived trust. Different perspective stated
by (Shang et al., 2023), customer’s pleasure was promoted more by perceived value
than by perceived trust. Although there are different perspectives, both perceived value
and perceived trust play important roles in affecting customer’s intention to buy
product. The proposed hypotheses are as follows:
H5: Perceived Value has positive influence on Skincare Purchase Intention.
H6: Perceived Trust has positive influence on Skincare Purchase Intention.

2.7.6 Key Opinion Leader’s Presence towards Purchase Intention.


Customer’s perceptions of interest are positively and significantly impacted by their
sense of social existence (Su, 2019). Validated with the perception of key opinion
leaders as an external stimulus which make consumers feel the body and finally
stimulate consumers’ willingness to act (Song et al., 2022). Moreover, the streamer is
the key opinion leader and salesperson who controls the entire live broadcast and
influences the consumer’s purchasing decisions. Therefore, trust in the streamer has a
greater impact on continuous purchase intention than trust in the product (Wu & Huang,
2023). The proposed hypothesis is as follows:
H7: Key Opinion Leader’s Presence has positive influence on Skincare
Purchase Intention.
52 R. Avaryl and N. Kusumawati

2.7.7 Conceptual Framework


In this study, researcher includes several variables which generated from many studies
conducted by (Song et al., 2022), (Wu & Huang, 2023), and (Su, 2019). Specifically,
e-commerce live streaming and key opinion leader’s presence will act as an external
stimulus that promotes customers’ intention to purchase skincare product. Since this
study main objective is to identify how is the variable predicted could affect customers’
intention to purchase skincare and which variable that significantly affecting the
skincare purchase intention, the researcher want to highlight the predicted variable
through perceived value and perceived trust as mediating variable. The research model
will be verified by means of the experiments in the following sections.

Fig. 1. Conceptual Framework (Song, et al., 2022; Wu & Huang., 2023; Su.,2019)

3 RESEARCH METHODOLOGY

The research begins with identification of a problem regarding the low conversion rate
of online shopping method that is still occurred in Indonesia. Regarding the skincare
industries, there is still a hesitation in creating a purchase intention within Indonesian
market through online platform. Through the problem, this research aims to examine
the influencing factor of live streaming commerce could penetrate the perceived value
and trust in Indonesian market to reach the skincare purchase intention. This research
is strengthened with literature review that is conducted after problem identification to
discuss and compare from prior studies and papers. Then, hypothesis development is
presented, where variables are defined and examined along with the theories and
framework that support them. After constructing the hypotheses, the data collection
will be provided by using several methods and continued with the analysis also
discussion. The data collection will be done by conducting the interview first then
followed by spreading the survey to desired respondent since the interview result could
affect the development of questionnaire. Due to the integration of the advantages of
both methods, mixed methods can help you obtain a more comprehensive picture than
a standalone quantitative or qualitative study (Tegan George, 2021; van Teijlingen &
Hundley, 2002).
Factors Affecting Skincare Purchase Intention During 53

Fig. 2. Research Flowchart

Therefore, this research will use mixed method by combining quantitative and
qualitative in which conducting survey is meant for the quantitative research, completed
with in-depth interview regarding KOL and e-commerce live streaming as the
qualitative research to add the contextualization regarding richer detail. This semi-
structured interview includes several questions as the main framework for gaining the
pertinent insight. Additional follow-up questions regarding the study may be asked as
the interview goes on to elicit more information from the informant. It has previously
been recommended that qualitative studies require a minimum sample size of at least
12 to reach data saturation (Vasileiou et al., 2018), therefore minimum of 12
respondents are the desired response rate. In response to the informant's statement,
follow-up questions are naturally asked to give the informant a less biased
understanding. Lastly, the interview will be done in Bahasa Indonesia to minimize
misinterpretation on informants’ answers. The list of questions is stated below.

Table 1. Interview Question

No Questions
Could you please share your experience using the Live Shopping feature on Tokopedia
1 or Shopee?

In your opinion, what factors motivate you to use the Live Shopping feature?
2

3 How was your experience purchasing skincare products through Live Shopping?
54 R. Avaryl and N. Kusumawati

4 What considerations do you have when buying skincare products online?

Do you believe the presence of Key Opinion Leaders (KOLs) can influence someone
5 to shop through Live Shopping?

What specific characteristics do you expect KOLs to have in order to influence your
6 skincare purchase during Live Streaming?

Do you think trust in E-Commerce platforms or KOLs is necessary before having the
7 intention to buy skincare products during live streaming?

Do you think perceived value in E-Commerce platforms or KOLs is necessary before


8 having the intention to buy skincare products during live streaming?

The interview will be analyzed by using automated coding using NVivo application to
avoid misinterpretation and will be validated through data triangulation from
netnography, interview, and literature review. Meanwhile, a questionnaire with a list of
questions and spaces for respondents' responses will be used. The Google Form
platform will be used in this study's questionnaires because it makes it simpler for
researchers to find relevant responses and can be completed quickly, especially during
semi-quarantined periods. The survey will ask multiple-choice questions about
sociodemographic and behavioral information as well as constructed measured
questions using a Likert scale. Strong disagreement for number (1) and strong
agreement for number (5) are the options available in the study measured using the
Likert Scale. For this study, questions from earlier studies on related subjects were used.
As a means of facilitating better understanding among respondents, questions were also
translated into Bahasa Indonesia.

Table 2. Demo-Behavioral Questionnaire

No Variable Indicator Label

1 Demographic Age 18-20

20-23

24-27

Gender Male

Female

Domicile Bandung

Jakarta
Factors Affecting Skincare Purchase Intention During 55

Bogor

Depok

Tangerang

Bekasi

Outside
Bandung & Jabodetabek

Occupation Student

Employee

Entrepreneur

Other

2 Behavioral Have you ever used e-commerce Yes


live streaming feature?
(Tokopedia Play or Shopee No
Live)

Have you ever bought Yes


skincare through e-commerce
live streaming platform? No

How many times do you use live 1-2 times


streaming platform in a week? 3-4 times
>4 times

Table 3. Quantitative Questionnaire Design

No Variable Dimension Label Indicator Source


1 E- Visibility EL1 In the live streaming room, I (Song et al.,
Commerce can see the appearance 2022)
Live characteristics of skincare
Streaming products
EL2 In the live streaming room, I
can learn about the skincare
products
EL3 The live room provided
visual scenes to help me
56 R. Avaryl and N. Kusumawati

understand the details of the


product
Interactivity EL4 I think the live streamer can
actively respond to the
viewers' questions during the
live streaming
EL5 During the live streaming, I
can communicate product
related questions with the
streamer or other viewers
EL6 I think the live streaming
platform provides a good
communication platform
between customers and
sellers
Authenticity EL7 During the live streaming, the
streamer will display the
skincare products from
multiple angles
EL8 The streamer’s detailed
introduction to skincare
products brings the sense of
authenticity
2 Key Opinion Social KL1 I can make sense (M. Li et al.,
Leader’s Presence of the KOL’s 2022)
Presence attitudes by
interacting with
them in live
streaming
KL2 There is a sense
of human touch
when I
communicate
with the KOL in
live streaming.
KL3 Communication
with the KOL in
the live
streaming is
warm.
Attractiveness KL4 I think the KOL (Ha & Lam,
in live streaming 2016)
have a good taste
KL5 I think that the
KOL in live
streaming have
an appealing
appearance
KL6 I think that the
KOL makes me
attracted to
Factors Affecting Skincare Purchase Intention During 57

watch the live


streaming
Trustworthine KL7 I think that the
ss KOL provides
reliable source of
information.
KL8 I think that the
KOL has
experience in
using the brand.
3 Perceived Utility PV1 Watching live (Song et al.,
Value streams of 2022)
skincare product
is helpful for me
PV2 Watching live
streams of
skincare product
is practical for
me
PV3 Shopping on the
live streaming
platform made
me feel
convenient
Pleasure PV4 Watching live
streams of
skincare product
is fun
PV5 Watching the
live stream of
skincare
products makes
me feel good
PV6 Watching the
live stream of
skincare
products made
me feel relaxed
4 Perceived Trust Trust in PT1 I believe the (Wu &
Streamer streamer is well- Huang, 2023)
meaning and will
consider the
basic interests of
the customer.
PT2 I am comfortable
buying the
skincare
products
recommended by
the streamer.
PT3 I believe that the
skincare product
58 R. Avaryl and N. Kusumawati

recommended by
the streamer are
useful to the
desired
customer.
Trust in PT4 I consider the
Product quality of the
skincare
products sold
during the live
streaming to be
reliable.
PT5 I believe the
product received
was the same as
the one
demonstrated on
the live
streaming
PT6 I believe I will be
very happy with
the skincare
product I receive.
5 Purchase Intention PI1 E-commerce live (Song et al.,
streaming is a big 2022; Wu &
help to my Huang, 2023)
buying
behaviour
PI2 I am willing to
look for my
favourite
skincare
products in the
live streaming
platform
PI3 I would like to
buy skincare
products after
watching the live
streaming
PI4 I plan to continue
to follow this e-
commerce live in
the future.

The data will be analyzed by using PLS-SEM method. At the end, this paper will
provide the overall conclusion from the research and recommendation for further
studies.
Factors Affecting Skincare Purchase Intention During 59

4 RESULT / FINDING

4.1 Qualitative Research Result

According to the interview, it is demonstrably true that the respondent's statement


regarding her intention to purchase skincare products made brand preference and price
promotion as additional variables that fully qualified the data saturation criteria. Thus,
brand preference and price promotion is added as a variable to be examined through
quantitative means. The data has the same results for each variable, and it is valid to
use these variables as additional variables for the hypothesis development process,
according to validation data with triangulation on the previous table. Therefore, the
additional hypothesis is stated below:
H8: Price Promotion has positive influence on Perceived Value
H9: Brand Preference has positive influence on Skincare Purchase Intention
The researcher will also update the conceptual framework now that the hypothesis has
been formed.

Fig. 3. Updated Theoretical Framework


(Song et al., 2022), (Wu & Huang, 2023), (Su, 2019), (Anantasiska et al., 2022), (Ho et al., 2022)

In order to make this research more informative, the researcher adds a number of
variables based on the findings of qualitative data and applying data validation with the
triangulation data source method. As a result, the researcher has updated the theoretical
framework that will be used to analyze the influence variable that will be used to predict
how the customers' intention to purchase skincare may be affected by the KOL's
presence during live streaming. Moreover, the researcher also added additional
indicators according to the previous findings which are honesty in KOL’s presence and
impulsivity in e-commerce live streaming from the interview result. The researcher will
carry out the remaining research using a quantitative approach method considering the
revised hypothesis and theoretical framework. The researcher will also update the
questionnaire design to reflect the addition of the variables.
60 R. Avaryl and N. Kusumawati

Table 4. Updated Demo-Behavioral Questionnaire

No Variable Indicator Label

1 Demographic Age 18-20

20-23

24-27

Gender Male

Female

Domicile Bandung

Jakarta

Bogor

Depok

Tangerang

Bekasi

Outside
Bandung &
Jabodetabek

Occupation Student
Factors Affecting Skincare Purchase Intention During 61

Employee

Entrepreneur

Other

2 Behavioral Have you ever used e- Yes


commerce live
streaming feature?

(Tokopedia Play or No
Shopee Live)

Have you ever bought Yes


skincare through e-
commerce live
streaming platform?
No

How many times do 1-2 times


you use live streaming 3-4 times
platform in a week? >4 times

Table 5. Updated Quantitative Questionnaire

No Variable Dimension Label Indicator Source


1 E-Commerce Visibility EL1 In the live streaming room, I (Song et al.,
Live can see the appearance 2022)
Streaming characteristics of skincare
products
EL2 In the live streaming room, I
can learn about the skincare
products
EL3 The live room provided visual
scenes to help me understand
the details of the product
62 R. Avaryl and N. Kusumawati

Interactivity EL4 I think the live streamer can


actively respond to the viewers'
questions during the live
streaming
EL5 During the live streaming, I can
communicate product related
questions with the streamer or
other viewers
EL6 I think the live streaming
platform provides a good
communication platform
between customers and sellers
Authenticity EL7 During the live streaming, the
streamer will display the
skincare products from
multiple angles
EL8 The streamer’s detailed
introduction to skincare
products brings the sense of
authenticity
Impulsivity EL9 Through live streaming, I felt a
sudden urge and spontaneously
to perform an action that is
different from regular behavior.
EL10 Through live streaming, I feel a
psychological conflict and try
to balance between immediate
need satisfaction and long-term
consequences from the
purchase
2 Key Opinion Social KL1 I can make sense of the KOL’s (M. Li et al.,
Leader’s Presence attitudes by interacting with 2022)
Presence them in live streaming
KL2 There is a sense of human touch
when I communicate with the
KOL in live streaming.
KL3 Communication with the KOL
in the live streaming is warm.
Attractiveness KL4 I think the KOL in live (Ha & Lam,
streaming have a good taste 2016)
Factors Affecting Skincare Purchase Intention During 63

KL5 I think that the KOL in live


streaming have an appealing
appearance
KL6 I think that the KOL makes me
attracted to watch the live
streaming
Trustworthine KL7 I think that the KOL provides
ss reliable source of information.
KL8 I think that the KOL has
experience in using the brand.
Honesty KL9 I think that the KOL provides
an honest information
regarding the product
3 Perceived Utility PV1 Watching live streams of (Song et al.,
Value skincare product is helpful for 2022)
me to gain the information
about the product
PV2 Watching live streams of
skincare product is practical for
me since the features are
integrated
Pleasure PV3 Watching live streams of
skincare product brings an
entertainmen t for me
PV4 Watching the live stream of
skincare products makes me
feel relaxed and comfort
4 Perceived Trust in PT1 I believe the streamer is well- (Wu &
Trust Streamer meaning and will consider the Huang,
basic interests of the customer. 2023)
PT2 I am comfortable buying the
skincare products
recommended by the streamer.
PT3 I believe that the skincare
product recommended by the
streamer are useful to the
desired customer.
Trust in PT4 I consider the quality of the
Product skincare products sold during
the live streaming to be reliable.
PT5 I believe the product received
was the same as the one
64 R. Avaryl and N. Kusumawati

demonstrated on the live


streaming
PT6 I believe I will be very happy
with the skincare product I
receive.
5 Brand Preference BP1 Although other companies have (Anantasisk
the same features, I prefer to a et al.,
buy on that platform 2022)
BP2 Even though there are better
companies than Shopee, I will
choose to buy at Shopee
BP3 I consider this platform to be
superior to other competing
brands
6 Price Promotion PP1 Host offer discounts on (Ho et al.,
products 2022)
PP2 Discounted prices are only
available during live streaming
session
PP3 Live streaming provides some
promotional activities (e.g.,
free gift with purchase, free
shipping, buy one get one free,
limited time flash sales)
7 Purchase Intention PI1 E-commerce live streaming is a (Song et al.,
big help to my buying 2022; Wu &
behaviour Huang,
PI2 I am willing to look for my 2023)
favourite skincare products in
the live streaming platform
PI3 I would like to buy skincare
products after watching the live
streaming
PI4 I plan to continue to follow this
e-commerce live in the future.

4.2 Quantitative Research Result

The result shows approximately equal usage on the 2 platforms which are Shopee Live
with the amount of 107 respondents and Tokopedia Play with the amount of 106
respondents. Based on this result, the researcher will dig more about the research topic
Factors Affecting Skincare Purchase Intention During 65

by comparing between the two platforms to gain more specific result and comparison
on the sample’s behavior.

Table 6. Hypothesis Testing for Shopee Live Users

Shopee Live
Path T P
Hypothesis Structural Path Result
Coefficient Statistic Values
E-Commerce Live
Positive Impact,
H1 Streaming -> 0.346 3.829 0
Accepted
Perceived Value
E-Commerce Live
Positive Impact,
H2 Streaming -> 0.227 2.498 0.013
Accepted
Perceived Trust
KOLs Presence -> Positive Impact,
H3 0.334 3.963 0
Perceived Value Accepted
KOLs Presence -> Positive Impact,
H4 0.602 7.309 0
Perceived Trust Accepted
Perceived Value-> Positive Impact,
H5 0.284 3.007 0.003
Purchase Intention Accepted
Perceived Trust -> Positive Impact,
H6 0.189 2.072 0.038
Purchase Intention Accepted
KOLs Presence -> Positive Impact,
H7 0.341 2.993 0.003
Purchase Intention Accepted
Price Promotion -> Positive Impact,
H8 0.225 2.408 0.016
Perceived Value Accepted
Brand Preference -> Positive Impact,
H9 0.16 2.17 0.03
Purchase Intention Accepted

Table 7. Hypothesis Testing for Tokopedia Play Users

Tokopedia Play
Structural Path T P
Hypothesis Result
Path Coefficient Statistic Values
E-Commerce Live
Positive Impact,
H1 Streaming -> 0.264 3.026 0.002
Accepted
Perceived Value
E-Commerce Live
Positive Impact,
H2 Streaming -> 0.224 3.01 0.003
Accepted
Perceived Trust
KOLs Presence -> Positive Impact,
H3 0.439 5.542 0
Perceived Value Accepted
KOLs Presence -> Positive Impact,
H4 0.628 10.066 0
Perceived Trust Accepted
Perceived Value -> Positive Impact,
H5 0.195 2.074 0.038
Purchase Intention Accepted
66 R. Avaryl and N. Kusumawati

Perceived Trust -> Positive Impact,


H6 0.1 1.2 0.23
Purchase Intention Rejected
KOLs Presence -> Positive Impact,
H7 0.452 4.142 0
Purchase Intention Accepted
Price Promotion -> Positive Impact,
H8 0.224 3.01 0.022
Perceived Value Accepted
Brand Preference -
Positive Impact,
H9 > Purchase 0.17 2.276 0.023
Accepted
Intention

5 DISCUSSION

According to the survey result, e-commerce live streaming positively influences


perceived value and trust as the mediating variable to create the skincare purchase
intention through several indicators. By looking at the PLS analysis for each of the
platforms which are Shopee Live and Tokopedia Play, e-commerce live streaming’s
path coefficient shows a positive number which indicating that e-commerce live
streaming that focusing on visibility, interactivity, authenticity, and impulsivity have a
positive influence on perceived trust and value on both platforms. KOL’s presence also
positively influences perceived trust and perceived value in creating skincare purchase
intention through several indicators. According to PLS method, the path coefficient
shows a positive number which indicating that KOL’s Presence that focusing on social
presence, attractiveness, trustworthiness, and honesty have a positive influence on
perceived value. Moreover, opinion leaders connect customer with merchant through a
live experience. With this method, customers will have more information available to
them thanks to live online commerce resulting a greater level of product trust.
Strengthen with the findings from interview that shows the importance of having a
suitable KOL precisely KOL that runs in the beauty industry to create a more
trustworthy information regarding skincare product. The presence of KOLs during e-
commerce live streaming plays a crucial role in shaping customer behavior. Their
endorsements, reviews, and collaborations generate excitement, influence purchasing
decisions, and create anticipation among customers. The influence of KOLs' presence
and recommendations demonstrates the power they hold in driving customer interest
and engagement during e-commerce live streaming events. To conclude, this is how
effective KOL’s presence during e-commerce live streaming affect Indonesian
customers' intention to purchase skincare products.
In contrast, both mediating variable (perceived value and trust) are significantly
influencing customers’ purchase intention only in Shopee Live since Tokopedia Play
users are focusing on the perceived value that could influence the skincare purchase
intention. The interview results that show Tokopedia Play users tend to concentrate on
the pre-determined skincare that the customers already have experience using the
product show the difference perspective in this platform. Customers tend to seek as
much information as they can about hosts and skincare products when using Shopee
Live, in contrast. According to the interview, customers' positive feedback on websites
like Shopee Live demonstrates their confidence in finding good deals. Moreover, there
Factors Affecting Skincare Purchase Intention During 67

is price promotion that become an additional variable that positively influence


perceived value.
The different result on each platform is strengthen with the hypothesis of how brand
preference is positively influencing customers’ purchase intention. Apart from the
accepted result from PLS method, this is a result of brand preference which refers to
customers' propensity to favor one brand over rivals to have their purchase intentions
reflect favorably on the chosen brand. Prior experiences, which are closely related to
purchasing decisions, may influence a brand's preference. This review is consistent with
the results of the interviews, which indicate that customers' purchasing decisions are
influenced by brand reputation. The decision to purchase skincare requires additional
thought from the customer's perspective. Since most respondents are already familiar
with the skincare brand, choosing the best online retailer to buy skincare products
becomes the top priority before moving on to the product information. To conclude,
this is how e-commerce live streaming affect Indonesian customers' intention to
purchase skincare products during the session.

6 CONCLUSION AND RECOMMENDATION

In terms of how independent variables impact perceived value, it appears that the
presence of Key Opinion Leaders (KOLs) has a more significant influence compared
to e-commerce live streaming itself and price promotions. In Tokopedia Play, the
presence of KOLs has a moderate effect on perceived value, while in Shopee Live, the
effect is relatively smaller. This suggests that KOLs in Tokopedia Play are successful
in creating a sense of need among their target audience. These findings align with the
interviews conducted, which revealed that Tokopedia Play users primarily search for
specific skincare products they already require, rather than experimenting with new
ones. Regarding perceived trust, both e-commerce live streaming and KOLs contribute
equally to building trust on both platforms, although the influence of KOLs in
Tokopedia Play is slightly stronger due to the characteristics of the hosts during live
streaming. Moving on to purchase intention for skincare products, it is significantly
influenced by perceived trust, perceived value, and brand preference in Shopee Live,
with perceived value playing the most crucial role. In contrast, purchase intention in
Tokopedia Play is primarily affected by perceived value and brand preference, with
both variables being equally important. This distinction is reinforced by the interviews,
as Tokopedia Play users tend to focus on predetermined skincare products that they
already have experience using, while Shopee Live customers seek as much information
as possible to establish trust in both the hosts and the skincare products. Positive
customer experiences shared on platforms like Shopee Live further demonstrate their
trust in finding affordable products, as revealed during the interviews. At the end, these
are several recommendations to the stakeholders that is contributed in this research.
68 R. Avaryl and N. Kusumawati

6.1 Beauty Product Resellers in Shopee

The research findings suggest that having Key Opinion Leaders (KOLs) participate in
live streaming events for skincare products can positively influence customers'
intention to make a purchase. Therefore, it is recommended to partner with relevant
KOLs who are actively engaged in live streaming within the skincare industry. When
these KOLs endorse and demonstrate products during the live streams, it significantly
enhances the trustworthiness and perceived value of the resellers. This aligns with the
findings that highlight the importance of product knowledge in gaining trust from both
sellers and products. Additionally, it is beneficial to create exclusive offers and
promotions specifically for customers who make purchases during e-commerce live
streams. This approach encourages viewers to take immediate action and increases their
perception of value for the products being sold. Collaborating with brands to negotiate
exclusive discounts for the audience can further enhance this strategy. Lastly, it is
crucial for resellers to actively engage with customers during the live streams by
promptly responding to comments and inquiries. This demonstrates a strong
commitment to customer service and helps build trust with potential buyers. Providing
accurate and helpful information about the skincare products being sold is also essential
in fostering trust. By partnering with relevant KOLs, offering exclusive promotions,
and actively engaging with customers, resellers can leverage the impact of KOL
presence during e-commerce live streaming to enhance perceived value and trust,
ultimately boosting their skincare purchase intention.

6.2 Beauty Product Resellers in Tokopedia

Different with Shopee, Tokopedia resellers can make the most of the features and
tools provided by Tokopedia to enhance their e-commerce live streaming experience.
They can effectively showcase skincare products by using product tags, banners, and
carousel displays. It's important to optimize the product descriptions and images to
attract potential buyers. In this case, the focus is more on how the perceived value of
the products positively influences purchase intention rather than solely relying on trust.
By utilizing these features, Tokopedia users who are interested in skincare will feel a
sense of urgency to purchase products that meet their personal needs. Furthermore,
resellers can encourage customers to leave reviews and ratings after they have made a
purchase from their store. Positive reviews and high ratings play a significant role in
enhancing the perceived value and trustworthiness of the skincare products.

6.3 Marketers in Beauty Industry

For marketers in the beauty industry, it is crucial to navigate the world of e-commerce
live streaming effectively. To begin with, it is essential to identify relevant Key Opinion
Leaders (KOLs) and influencers who have a strong presence in this space and align
with the brand's values and target audience. Collaborating with these influential
individuals during live streams can significantly promote the skincare products. It's
important to conduct thorough research to evaluate their engagement rates, credibility,
Factors Affecting Skincare Purchase Intention During 69

and audience demographics before forming partnerships. Moreover, equally important


is providing the KOLs with comprehensive product knowledge and training. Educating
them about the skincare products, their benefits, and key ingredients will enable them
to effectively communicate the value and advantages during live streams. This not only
enhances their credibility but also establishes trustworthiness in their recommendations
among viewers. To gauge the effectiveness of the e-commerce live streaming
campaigns, continuous monitoring and analysis are vital. Keep a close eye on key
metrics such as customer engagement, conversion rates, and purchase intention. This
data provides valuable insights into the impact of KOL presence on perceived value
and trust. Based on these insights, make necessary adjustments to the strategies to
optimize results and improve overall performance.

6.4 Future Research

This research focuses specifically on e-commerce platforms like Shopee and


Tokopedia. However, it is suggested to explore the impact of KOL presence during live
streaming on perceived trust and value in generating customer purchase intention across
different e-commerce platforms that offer live streaming features. Additionally, future
studies could delve into assessing various product segments sold within e-commerce
since this research only focusing on skincare products. Furthermore, there is a
recommendation to expand the scope beyond the limitations of the population and
sample. This study solely assesses the Indonesian population and sample, making it
valid only within the context of Indonesia. It is acknowledged that this limitation can
be addressed in future research, allowing for broader insights and applicability.

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