The Effect of Live Streaming on Social Commerce Platforms on Generation Z’s Purchase Intention

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.