The Effect of TikTok Live Streaming Shopping on Generation Y and Z Impulse Buying Behaviour: The Example of Indonesia

Abstract

Aim: Using social media as a marketing tool has given market players a new and interesting way to market their products and services not only in developed markets, but also in emerging ones. One of the important emerging markets for such companies is Indonesia, which has a large consuming market. As part of their marketing campaigns, suppliers used impulsive buying behaviour and other techniques to encourage customers to buy. Nevertheless, there are still some concerns and inconsistencies in literature regarding factors influencing impulsive buying in Indonesia for younger generations namely Gen Z & Y. Therefore, this research investigates the influence of TikTok Live Streaming on consumer impulsive buying behaviour and the factors driving this relationship by using the SOR framework. Methodology: A total of 250 samples were collected using quantitative research methods with non-probability purposive sampling methods from representative samples of Gen Z & Millennials that live in Jakarta who have made purchases on TikTok Live Streaming, thereby ensuring the relevance and contextual alignment of the sample with the study's research objectives. This research used validity and reliability analysis using SmartPLS. Results: The result showed that price promotion and promotion time limit significantly have a positive effect on impulsive buying behaviour the new generations. In addition, price promotion and promotion time limit also significantly have a positive effect on their perceived risk. Meanwhile perceived risk has no effect on impulsive buying behaviour of Gen Z & Y. Trust as the moderating variables cannot moderate the effect of perceived risk on impulsive buying behaviour, promotion time limits might overshadow its effect. However, in our study, trust was found to have a positive influence on the impulsive buying behaviour of Generation Z and Generation Y consumers in Indonesia. Conclusion: This research added insights of the effects of time limits in promotions to the better documented effects of the promotions themselves. It also highlights the importance of trust and especially creating trust by reducing elements of perceived risk, further lowering the barriers for impulse buying.