Effectiveness of the Shopee Live Features Sales Strategy on Influencing Consumer Purchase Interest Decisions by Information Systems Students ^†

Abstract

In the Shopee application there is a feature that is used as a promotional tool and which increases sales, namely, Shopee Live. A digital survey (Jakpat, 2022) published on Databoks in 2023 showed that Shopee was the application most used for live shopping in Indonesia, being used by 83.4% of live-shopping users. The present study aimed to determine the effectiveness of the Shopee Live feature sales strategy on influencing consumer buying interest decisions among information systems students. The data collection method used was a survey. The sampling technique used probability purposive sampling with a sample size of 54 respondents. Questionnaires were distributed online through Google Forms. Data analysis was carried out using simple linear regression analysis techniques with SPSS software. The results showed that the Shopee Live sales strategy had a strong influence on consumer buying interest decisions, with a correlation value of 0.990 and an influence contribution of 98.7% being recorded. In addition, significance testing supported the hypothesis that the Shopee Live sales strategy would exert an influence on consumer buying interest decisions.

1. Introduction

Information Systems students are part of a digital generation that is very familiar with technology and the internet. A survey conducted by the Indonesian Internet Service Providers Association (APJII) in 2022 showed that 98% of students in Indonesia actively used the internet, with 84% of them shopping online. This shows the great potential of students as consumers on e-commerce platforms like Shopee. Therefore, understanding how the Shopee Live feature affects their purchasing decisions is very important.

In addition, the Shopee Live feature offers various incentives such as discounts and exclusive promotions that are only valid during broadcasts. This is in line with the findings of research by [1], which showed that special offers during live streaming can increase consumer interest in making purchases. Thus, this strategy not only serves to attract consumers’ attention but also encourages them to make purchasing decisions quickly.

However, despite numerous studies showing the positive potential of the Shopee Live feature, there are still challenges to overcome. For example, not all consumers are comfortable shopping through live streaming, and some may prefer more traditional shopping methods. Therefore, it is important to explore the factors that influence consumer purchase intention decisions among Information Systems students, and to investigate how sales strategies using Shopee Live can be optimized to meet their needs and preferences.

Shopee is one of the largest e-commerce platforms in Indonesia. Shopee continues to innovate and develop new features to improve the consumer shopping experience. One of the new features introduced by Shopee is Shopee Live. This feature allows sellers to go online and promote their products to consumers. During these live streams, sellers can provide information about products, answer consumer questions, and offer special discounts.

A 2022 poll (Jakpat) survey found that 83.7% of Indonesians had watched online shopping features via live broadcasts. It was noted that Shopee was the application most used for live shopping in Indonesia, being used by 83.4% of live-shopping users. TikTok ranked in second place with a percentage of 42.2%, followed by Instagram, which was used by 34.1% of respondents for live shopping. Tokopedia and Facebook ranked fourth and fifth, respectively, with 30.4% of respondents using Tokopedia and 25.9% using Facebook for live shopping. Next, live shopping via Lazada and Bukalapak was reported by 20.5% of respondents in both cases. A total of 5.2% of respondents reported live shopping on JD.ID, while 0.5% reported using other platforms. The survey also noted that the majority (55%) of respondents said they had bought goods using live shopping, while 45% had never done so (Figure 1).

The benefits of the existence of Shopee Live are among the reasons why the service is in demand by many people. Consumers obtain many benefits when using the Shopee Live service. Shopee Live provides services with attractive offers such as 50% and 20% discounts at 8 pm every evening. It also provides promo prices, vouchers with specified conditions, and free shipping within specified distances. In fact, total prices are often cheaper when the Shopee Live feature is used. Compared to buying products after looking at a catalog alone, consumers prefer to buy live after seeing the benefits they obtain.

Consumer purchase intention decisions are the result of a decision-making process carried out by consumers before making a purchase. Consumer purchase intention decisions are influenced by various factors, such as price, free shipping, product quality, flash sales, brands, promotions, and shopping experiences. Therefore, an effective sales strategy can influence consumer purchase intention decisions [2].

Based on the explanation above, in the present study, we sought to conduct further research on the influence of the Shopee Live feature sales strategy on consumer purchase interest decisions. The aim was to determine the effectiveness of Shopee Live on influencing consumer purchase interest decisions among Information Systems students of the 2021 batch at Nusa Putra University.

1.1. Formulation of the Problem

Based on the background that has been described, the formulation of the problem addressed in this research may be stated as follows:

• Does the Shopee Live feature sales strategy influence consumer purchase interest decisions among Information Systems students ?

1.2. Research Purposes

The objectives of this study were as follows:

• To find out how effective the Shopee Live sales strategy was on influencing the purchasing interest decisions of Information Systems students of the 2021 intake [3].
• To fulfill the final assignment for semester 5 of the data mining course.

1.3. Benefits of the Research

The benefits of this research include the following:

• Theoretical benefit: This study can contribute to the development of consumer purchasing decision theory. It provides empirical evidence regarding the influence of Shopee Live sales strategies on consumer purchasing interest decisions.
• Practical benefit: This research can provide value to online business actors, especially sellers on Shopee. The results can be used as a consideration in developing Shopee Live sales strategies to influence consumer purchasing interest decisions.

2. Literature Review

The following research was reviewed for the present study:

Research conducted by the authors of [4], entitled “Live Streaming Strategy on Purchase Interest and Fulfillment of Desires”. This study applied a qualitative method using a phenomenological research design. Data was collected from interviews with five sources, and also from studies in the literature. The results of this study indicated that the promotional strategy of online marketing through live broadcasts on the online shopping platforms Shopee and TikTok Shop had a considerable influence on consumer interest in buying an item [4].

Research conducted by the authors of [5], entitled “The Influence of Persuasive Communication through the Shopee Live Feature on Purchasing Decisions (Study on Lilybelleclothing)”. This research used a quantitative method by distributing questionnaires to 100 samples of Lilybelleclothing followers through the purposive sampling method. The results of this study showed that the dimensions of communicator credibility (variable x) and purchase time (variable y) had the most influence. Based on a correlation coefficient test, a figure of 59.8% was obtained for the influence of persuasive communication on the purchasing decisions of Shopee Lilybelleclothing followers [5].

Research conducted by the authors of [6], entitled “The Influence of Live Streaming Selling, Product Reviews, and Discounts on Consumer Purchase Interest in E-Commerce ‘Shopee’”. This study used a quantitative method, along with descriptive statistical data analysis techniques. The results of this study showed that live-streaming selling influences consumer purchase interest because the live-streaming selling feature helps consumers find out about the products they will buy in real time [6].

Research conducted by the authors of [7], entitled “The Influence of Content Marketing and Live Shopping on Fashion Product Purchase Decisions on TikTok Shop Users”. This study used a descriptive quantitative method. The sampling technique used non-probability purposive sampling. The results of this study showed that the live shopping variable had a partial effect on decisions to purchase fashion products made by TikTok Shop users in South Jakarta [7].

Research conducted by the authors of [8], entitled “The Influence of Live Streaming and Online Customer Reviews on Purchase Decisions for Muslim Fashion Products (Case Study of Tiktok Shop Customers in Surabaya)”. This study used a quantitative method with an associative approach. The sampling technique used was purposive sampling. The results of this study showed that the live streaming variable had a significant partial influence on purchasing decisions for Muslim fashion products in the city of Surabaya. With this live streaming feature, it is easier for customers to obtain more detailed information about the product because the seller (streamer) displays the product in real time [8].

Based on previous research, it can be concluded that the live shopping sales strategy has a significant influence on consumer purchasing decisions or buying interest. However, further research is needed to test the effectiveness of live shopping sales strategies on consumer purchasing decisions or buying interest among certain groups.

2.1. General Definitions

2.1.1. Effectiveness

The word effectiveness comes from the English word “effective” which means “successful” or “something that is done well”. Any activity may be called effective if its goals or targets are achieved as determined. In economic terms, effectiveness may be expressed as a quantity or number to indicate the degree to which a target is achieved [7]. According to management expert Peter Brucker, as quoted in the book Management by T. Hani Handoko, effectiveness is doing the right job (doing the right things). Effectiveness is a term that describes actions or things that are impressive or efficacious and contribute to business success. So, an organizational or business activity is said to be effective if it runs according to the rules and according to the targets determined by the organization [8].

2.1.2. Sales Strategy

A sales strategy is a plan or action taken by a seller to increase sales of a product or service. Sales strategies can include discounts, promotions, special offers, or the use of certain features on e-commerce platforms such as Shopee Live [9,10]. In a sales strategy, sellers must consider factors such as price, product quality, brand, and promotions to attract consumer interest and increase sales [11].

2.1.3. Shopee Live

Available at the website seller.shopee.co.id, Shopee Live is a feature that allows sellers to create streaming sessions and promote their stores and products directly to buyers. Buyers can directly communicate with sellers in real time to learn more about the products being sold and buy them directly without leaving the streaming page. Through direct interaction with buyers, sellers can understand the needs of consumers and create a better shopping experience for them.

2.1.4. Consumer Purchase Interest Decision

Consumer purchase interest decisions are decisions taken by consumers to buy or not to buy a product. Such decisions are influenced by various factors, such as price, free shipping, product quality, flash sales, brands, and promotions. Consumer interest is an interest in or liking for products or services, with a desire to acquire them [12]. Consumer interest is a personal or individual drive that is influenced by brands, prices, or product services, so that a desire arises to own products and services by buying them.

2.2. Framework of Thinking

The following hypotheses were considered, as own in Figure 2:

• H0: the Shopee Live feature sales strategy (X) has no influence on consumer purchasing interest decisions (Y).
• Ha: the Shopee Live feature sales strategy (X) has an influence on consumer purchasing interest decisions (Y).

Figure 2. Framework of thinking.

Figure 2. Framework of thinking.

3. Materials and Methods

3.1. Tools

The tool used in this study was IBM SPSS Statistics for Windows, Version 29.0. SPSS is statistical software that can be used to perform data processing, statistical analysis, and data presentation in graphical form.

3.2. Materials

The materials used in this study were primary data obtained directly from Information Systems students of the 2021 intake. The population of this study included all Information Systems students of the 2021 batch at Nusa Putra University. The research sample consisted of 54 Information Systems students of the 2021 batch of Nusa Putra University. This sample was selected using a purposive sampling method, so that students who had purchased products through the Shopee Live feature were the target of selection.

3.3. Data Collection Techniques

The data collection technique used in this study was a survey. The survey was conducted by distributing questionnaires to respondents. A questionnaire is a data collection tool in the form of a list of questions that must be filled out by respondents. The type of questionnaire used was a closed questionnaire with a Likert scale which was distributed online via Google Forms to Information Systems students of the 2021 batch at Nusa Putra University who had purchased products through the Shopee Live feature.

3.4. Research Design

The research design used in this study was a quantitative research design with a survey approach. Quantitative research design is a research design that uses data in the form of numbers that can be measured and tested objectively.

3.5. Research Methods

The method used in this study was simple linear regression analysis using SPSS software. Simple linear regression analysis is a statistical analysis technique used to test the relationship between two variables, namely, the independent variable (x) and the dependent variable (y). In this study, the independent variable (x) was the Shopee Live sales strategy, while the dependent variable (y) was the consumer’s purchase interest decision. In addition, validity and reliability tests of the questionnaire were carried out to ensure that the data obtained was valid and reliable. Validity testing is the process of testing whether a research instrument is valid, i.e., that it measures what should be measured. Reliability testing is the process of testing whether a research instrument is reliable, i.e., that it is consistent in measuring what should be measured. A correlation test was then carried out to determine the extent to which the two variables intersected with each other.

3.6. Research Time

The time allocated for this research was 10 days, from 1 January 2023 to 10 January 2023.

4. Results and Discussions

4.1. Validity Test

A validity test is a measure that shows the level of validity of an instrument. The principle of validity is a measurement or observation which expresses the reliability of an instrument in collecting data. The instrument must be able to measure what should be measured. In the present study, the basis for decision-making in validity testing was as follows:

• If the calculated r value > r product moment table, then the questionnaire item is declared valid.
• If the calculated r value < r product moment table, then the questionnaire item is declared invalid.

Based on

Table 1. Case processing summary.

		N	%
Cases	Valid	54%	100
	Excluded *	0	0
	Total	54	100

* Listwise deletion based on all variables in the procedure.

, the output table above shows that the number of samples (n) is the 54 students from the class of 2021 and that this is 100% valid, meaning there is no empty data. Excluded has a value of 0 because no data is excluded or all data is used in the analysis.

Based on

Table 2. Item-total statistics.

	Scale Mean If Item Deleted	Scale Variance If Item Deleted	Corrected Item-Total Correction	Cronbach’s Alpha If Item Deleted
X1	31.94	44.242	0.614	897
X2	31.72	42.808	0.668	894
X3	31.69	42.786	0.749	888
X	31.78	44.176	0.674	893
X5	31.33	43.925	707	891
X6	31.43	45.419	567	900
X7	31.35	45.025	714	891
X8	31.19	45.059	677	893
X9	31.87	45.889	644	895
X10	31.87	44.945	597	898

, the output in the “Corrected item-total correlation” column, the calculated r value is known. Using the r table value based on the df (degree of freedom) value, which is 54 − 2 = 52 at 5% significance, the r table is found to be 0.2681. Based on the results of data processing from SPSS, all questionnaire instruments show that r count > 0.2681, so all questions are said to be valid (

Table 3. Validity test results.

No Item	RCount	Rtable	Explanation
X1	0.614	0.2681	Valid
X2	0.668	0.2681	Valid
X3	0.749	0.2681	Valid
X4	0.674	0.2681	Valid
X5	0.707	0.2681	Valid
X6	0.567	0.2681	Valid
X7	0.714	0.2681	Valid
X8	0.677	0.2681	Valid
X9	0.644	0.2681	Valid
X10	0.597	0.2681	Valid

).

4.2. Reliability Test

Reliability means having a trustworthy nature. A measuring instrument can be said to have reliability if it is used repeatedly by the same researcher or by other researchers and still gives the same results. A reliability test using SPSS was carried out using reliability analysis statistics. The basis for decision-making in the reliability test was as follows:

• If the Cronbach’s Alpha value > 0.60, then the questionnaire is declared reliable or consistent.
• If the Cronbach’s Alpha value is < 0.60, the questionnaire is declared unreliable or inconsistent.

From the Figure 3, it can be seen that the number of items is 10, and the Cronbach’s Alpha value is 0.903. Because the Cronbach’s Alpha value of 0.903 is greater than 0.60, it can be concluded that all questions are reliable.

4.3. Correlation Test

From the results of the correlation test presented in

Table 4. Correlation test results.

			Sales Strategy	Purchase Interest Decision
Spearman’s rho	Sales Strategy	Correlations Coefficient	1	0.990 **
		Sig. (2-tailed)	.	0.000
		N	54	54
	Purchase Interest Decision	Correlations Coefficient	0.990 **	1
		Sig. (2-tailed)	0.000	.
		N	54	54

** Correlation is significant at the 0.01 level (two-tailed).

, a correlation coefficient of 0.990 ** was obtained. This means that the level of the strength of the relationship (correlation) between the Shopee Live sales strategy variable and consumer purchasing interest decisions is 0.990, or very strong. Because the significance value, or Sig. (2-tailed), is 0.000, that is, <0.05 or 0.01, then there is a significant relationship between the Shopee Live sales strategy variable and consumer purchasing interest decisions.

4.4. Simple Linear Regression

In statistics, regression analysis is often used to test the relationship between independent variables and a dependent variable. The mathematical model that states the relationship between the two variables is called a regression equation. In this equation, there are parameters that explain the quantitative relationship between the independent variable and the dependent variable.

Table 5. Model summary.

Model	R	R Square	Adjusted R Square	Std. Error of the Estimate
1	0.944a	0.987	0.987	0.76

shows the magnitude of the correlation/relationship (R), which is 0.994. From the results above, it can be seen that the coefficient of determination (R. Square) is 0.987. This value means that the influence of the Shopee Live sales strategy (X) on consumer purchase interest decisions (Y) is 8.7%. A total of 1.3% of sales strategies are influenced by variables that are not studied, or by other factors.

• a = constant number of unstandardized coefficients. In this case, the value is 0.102. This number is a constant number, which means that if there is no sales strategy (X), then the consistent value of the purchase interest decision (Y) is 0.102.
• Based on

  Table 6. Test results.

  Model		Sum of Square	df	Mean Square	F	Sig.
  1	Regression	2352.052	1	2352.052	4071.382	0.000 b
  	Residual	30.041	52	0.578
  	Total	2382.093	53

  ^b = Decision predictor (constant): sales strategy.

  , b = regression coefficient number. Its value is 0.904. This number means that for every 1% increase in the level of Shopee Live sales strategy (X), the purchase interest decision (Y) increases by 0.904. Because the regression coefficient value is (+), it can be said that the Shopee Live sales strategy (X) has a positive effect on consumer purchase interest decisions (Y). So, the regression equation is Y = 0.102 + 0.904X.
• Based on

  Table 7. T-test results.

  Unstandardized Coefficients				Standardized Coefficients Beta	t	Sig.
  Model		B	Std Error
  1	(Constant)	0.102	0.509		0.2	0.842
  	Sales Strategy	0.904	0.014	0.994	63.807	0

  , The t-test is used to determine the partial effect of the independent variable on the dependent variable. If the significance value is < 0.05 or t count > t table, then there is an effect of the independent variable (X) on the dependent variable (Y), and if the significance value is < 0.05 or t count > t table, then Ha is accepted and H0 is rejected and there is an effect of the independent variable (X) on the dependent variable (Y) Based on the output above, the t count value is calculated to be 63.807. Because the t count value is 63.807, which is greater than the t table value of 0.2681, it can be concluded that H0 is rejected and Ha is accepted, meaning that there is an effect of the Shopee Live sales strategy (X) on consumer purchase interest decisions (Y).

4.5. Hypothesis Testing

The basis for decision-making in our regression analysis, which involved looking at the significance value (Sig.) of the SPSS output results, was as follows:

• If the significance value (Sig.) is less than the 0.05 probability value, then there is an influence of the Shopee Live sales strategy (X) on the purchase interest decision (Y).
• If the significance value (Sig.) is greater than the 0.05 probability value, then there is not an influence of the Shopee Live sales strategy (X) on the purchase interest decision (Y).

In the

Table 8. Coefficients.

Unstandardized Coefficients				Standardized Coefficients Beta	t	Sig.
Model		B	Std Error
1	(Constant)	0.102	0.509		0.2	0.842
	Sales Strategy	0.904	0.014	0.994	63.807	0

, it can be seen that the significance value (Sig.) of 0.000 is smaller than the probability value (0.05), so it can be concluded that H0 is rejected and Ha is accepted, meaning that the Shopee Live sales strategy (X) does have an influence on consumer purchase interest decisions (Y)”.

5. Conclusions

Data analysis showed that the Shopee Live feature sales strategy had a significant influence on consumer purchase intention decisions made by a 2021 class of Information Systems students. The correlation between sales strategy and purchase intention decisions was found to be 0.990, which is a strong positive relationship. This means that the greater the use of sales strategies, the greater the consumer’s purchase interest. Sales strategy contributed 98.7% to purchase intention decisions, while 1.3% of changes in purchase intention decisions were influenced by other factors. Hypothesis H0, that sales strategy has no influence on purchase intention decisions, was rejected by the significance test. So, it can be concluded that sales strategy did have an influence on the consumer purchase intention decisions of Information Systems students.