Analysis of Viral Marketing and Customer Experience Influence on

Purchasing Decisions through E-Commerce Shopee

Agin Septhi, and Rahmat Hidayat

Department of Business Management, Politeknik Negeri Batam, Jl. Ahmad Yani, Batam, Indonesia

Keywords: Viral Marketing, Customer Experience, Purchasing Decision.

Abstract: This research is motivated by the aim to test and analyse viral marketing and customer experience on

purchasing decisions through Shopee e-commerce. This research uses quantitative approach with multiple

linear analysis using SPSS 25 software. Data collection is collected by distributing Google Form questionnaire

links to a sample of 150 people who are Shopee users in Batam. The results showed that there was an effect

of viral marketing and customer experience both partially and simulatively on purchasing decisions through

Shopee e-commerce. In this study, the calculation of the coefficient of determination obtained by 0.654. This

means that 65.4% of purchasing decisions can be explained by viral marketing and customer experience,

while the rest is explained by other variables.

1 INTRODUCTION

World Stats Internet Data (2018), shows internet

users worldwide until 2018 reached 4,312,982,270

people. Data from the Indonesian Internet Service

Providers Association shows that people who use the

internet amounted to 143.26 million in 2017 and

experienced an increase from the previous year.

The development of information and

communication technology is driving the growth of e-

commerce in Indonesia. This has become a

convenience for consumers to shop and save energy

and time, with this efficiency online shopping is

increasingly in demand by the public. In line with the

growth of internet users in Indonesia, statistics

obtained from Kata Data (2018) of digital buyers in

Indonesia are predicted to increase to 43.9 million

buyers with a penetration of 15.7% of the total

population in 2022. In addition, retail sales e-

commerce in Indonesia also has the largest number of

sales in Southeast Asia. This indicates a shift in the

behaviour of consumers today who like to shop online.

Online shopping is a purchasing and selling

activity that uses information and communication

technology in every transaction made. Chang et al

(2016) defines marketing activities through internet

media as online shopping. Besides being used as a

medium for sales and purchases, through online

media shopping that can also be used as a means of

activities to carry out promotions.

Competition among e-commerce platforms in

Indonesia is getting tougher, one of which is due to

the increasingly technological literacy of society. In

business competition, there are certainly those who

are superior compared to other competitors such as

the results of a survey from Daily Social (2018) to

find out e-commerce services carried out by taking

2,026 respondents in Indonesia, the results of which

many respondents use Shopee e-commerce services

as much as 33.63 %. Followed by Blibli 2.15%,

Lazada 14.30%, Bukalapak 17.50%, Tokopedia

28.11%, and other e-commerce 4.31%. This shows

Shopee as the most popular e-commerce in Indonesia.

This is inseparable from the marketing strategy that

makes Shopee the most widely used e- commerce

amid competition with other e-commerce.

Shopee uses viral marketing strategies including

advertisements using Jokowi's wording "Where's the

bicycle?" This ad appears after the characteristic of

Mr. Jokowi who likes to distribute bicycles so that the

advertisements delivered can be accepted by

consumers. This ad won in the 2017 Bright Awards

Indonesia Most Impressive Advertising category.

Then there is free shipping which is an attraction for

Shopee to increase sales. Price is also a part that is

considered by Shopee. Shopee branding with

"Cheapest Price Guarantee, 2x Foldable Money

Back", so through this promotion Shopee users do not

think long about purchasing the desired product

through this e-commerce.

Septhi, A. and Hidayat, R.

Analysis of Viral Marketing and Customer Experience Inﬂuence on Purchasing Decisions through E-Commerce Shopee.

DOI: 10.5220/0010354200360043

In Proceedings of the 2nd International Conference on Applied Economics and Social Science (ICAESS 2020) - Shaping a Better Future Through Sustainable Technology, pages 36-43

ISBN: 978-989-758-517-3

Based on a survey conducted by MarkPlus, Inc.

throughout October 2018 Shopee branding variants

that successfully stuck in the minds of consumers

include the Shopping Festival, Shopee Shake, to the

Money Storm. In addition, Shopee also made

Blackpink as a brand ambassador who made a scene

of K-Pop in Indonesia, especially Blackpink fans.

Within a week after Shoppe launched the jingle of the

Blackpink song, the jingle was watched more than 11

million times on Shopee Indonesia's official YouTube

channel.

The increasingly dynamic competition between e-

commerce requires companies to continue to compete

in the business world which requires innovative and

creative marketing strategies. The intended marketing

strategy is a viral marketing strategy.

Situmorang (2010) defines viral in viral

marketing to describe the spread of messages or

invitations like a virus whose spread is fast and

widespread. However, this marketing strategy cannot

be compared to software that is damaged by computer

viruses. Instead, an effort to promote word of mouth

that utilizes the power of news through internet

media. Distribution via the internet can be done in the

online world such as YouTube, Facebook, Twitter,

Yahoo, or Instagram.

Viral marketing strategy is similar to the word of

mouth (WOM) marketing strategy. However, viral

marketing requires media distribution via the internet,

while word of mouth (WOM) does not require media

distribution through the internet. Sernovitz (2012)

defines word of mouth (WOM) as an activity that

makes people have a reason to want to talk about a

product or something that is consumed.

In addition to viral marketing, customer

experience is used as a strategy to influence

customers in making purchasing decisions. Customer

experience is a form of interaction that causes a

reaction between a company, product or part of an

organization with customers (Pramudita &

Japarianto, 2013). This interaction is the driving force

in communication from one person to another. Thus,

a good rating will be obtained and very profitable for

the company if word of mouth communication has

good value. Conversely, a bad assessment of the

company will be obtained if word of mouth

communication is not good, of course this will be

very detrimental to the company. To be able to

provide positive experiences to consumers, the

company must be able to know and fulfill all the

hopes, desires and needs of its customers.

According to Kartajaya (2006) because of

technological developments, customers not only need

products or services that have high quality, but also

positive experiences that are emotionally touching

and easy to remember. The experience felt by the

customer provides a special memory or memories for

him. In addition, this good experience will also

benefit the company because potential customers

become interested in participating in the service or

buy products that are told by customers who already

have good experience of these services or products.

According to Schmitt (1999) the features and

advantages of the products used are the focus of

traditional marketing concepts. However, at present

this is not appropriate because consumers are no

longer considered to be rational decision makers in

deciding on purchases based on logic alone. Instead,

consumers also act as rational and emotional

individuals in the purchasing process through

pleasant experiences that are felt by others.

From viral marketing and customer experience

marketing strategies, these strategies influence

consumers to make purchasing decisions. Purchasing

decision is a decision-making process towards the

available alternatives of a product offered to further

lead to the purchasing process (Tjiptono, 2014).

2 RESEARCH METHOD

The population in this study is Shopee users in Batam

City and the number is unknown. Sampling using

purposive sampling and determination of the amount

using quota sampling. Quota sampling is a technique

for determining samples with certain characteristics

to the desired amount (Sugiyono, 2014). So, in this

study the samples studied were 150 people who are

Shopee users who are aged 18 years and over and

have made at least 2 purchases through Shopee e-

commerce in Batam City.

This research uses a quantitative approach using

multiple linear analysis. Multiple linear analysis is an

analysis used to prove the presence or absence of a

causal relationship between two independent variables

with the dependent variable (Sugiyono, 2017).

3 RESULT AND DISCUSSION

3.1 Instrument Test

3.1.1 Validity Test

According to Sugiyono (2014) the question items are

declared valid at a significant level of 95% or α = 5%

if the question items count > standard = 0,30.

Analysis of Viral Marketing and Customer Experience Inﬂuence on Purchasing Decisions through E-Commerce Shopee

Table 1: Validity test results.

Variable Question r calculates r standards Remark

Viral

Marke

ting (X1)

viral_

marketin

0,649

0,30

Valid

viral_

marketing2

0,783 Valid

viral_

marketin

0,791 Valid

viral_

marketin

0,832 Valid

viral_

marketing5

0,760 Valid

viral_

marketin

0,758 Valid

Custo

mer

Experi

ence

(X2)

customer_

erience1

0,746

0,30

Valid

customer_

experience2

0,730 Valid

customer_

erience3

0,749 Valid

customer_

erience4

0,762 Valid

customer_

experience5

0,725 Valid

customer_

experience6

0,836 Valid

Purcha

sing

Decision

(Y)

keputusan_

embelian1

0,751

0,30

Valid

keputusan_

embelian2

0,777 Valid

keputusan_

embelian3

0,863 Valid

keputusan_

embelian4

0,885 Valid

keputusan_

embelian5

0,896 Valid

keputusan_

embelian6

0,854 Valid

Based on table 1 it is known that each question

item has a calculated value greater than the standard,

this shows that the question items of each variable

used are valid as a measurement tool for the variables

in this study.

3.1.2 Reliability Test

Reliability test is a tool to measure the reliability of

the questionnaire (Ghozali, 2018). If the respondent's

answer is consistent, then the questionnaire is

declared reliable if Cronbach Alpha has a value > 0,7

(Ghozali, 2018).

Table 2: Reliability test results.

Based on table 2 it is known that each variable has

a Cronbach alpha value greater than 0.70. This shows

that the three question instruments in this study were

declared reliable.

3.2 Classic Assumption Test

3.2.1 Multicollinearity Test

Multicollinearity test has the objective to find out

whether there is a correlation between regression in

the independent variables or not (Ghozali, 2018).

Regression model is declared free from

multicollinearity if it has a variance inflation factor

value < 10 and tolerance value >0,10.

Table 3: Multicollinearity test results.

Based on Table 3 note that each variable free to

have VIF < 10 and the value of tolerance > 0,10, it

indicates that there is no multicollinearity between

independent variables in the regression model.

3.2.2 Normality Test

Normality test aims to find out whether there are

residual variables in the regression model that have a

normal distribution in the regression model (Ghozali,

2018).

Table 4: Normality test results.

ICAESS 2020 - The International Conference on Applied Economics and Social Science

Based on table 4 it is known that Ztable is greater

than Zskewness and Zkurtosis, so it can be concluded

that the residual data has a normal distribution.

3.2.3 Heteroscedasticity Test

Heteroscedasticity test has the aim to see whether the

regression model occurred inequality variance from

one observation to observation another residual

(Ghozali, 2018). If the significance value > 0,05, then

there is no heteroscedasticity.

Table 5: Heteroscedasticity test results.

Based on table 5 it is found that the significance

value > 0,05, so that the tested variables are free from

heteroscedasticity.

3.2.4 Linearity Test

Linearity test is used to see whether the specification

of the model used has a linear relationship or not

(Ghozali, 2018). If the significance value < 0.05, then

there is a linear relationship between the independent

variable and the dependent variable (Suhartanto,

2020).

Based on table 6, the linearity test shows the

significance level of the purchase decision variable

with a viral marketing variable of 0,000 < 0.05 and

the significance level of the purchase decision

variable with a customer experience variable of 0,000

< 0.05, so there is a linear relationship between the

independent and dependent variables.

Table 6: Linearity test.

3.2.5 Autocorrelation Test

Autocorrelation test is used to determine whether in

the linear regression model there is a correlation

between the error of the intruder in the t period with

the error of the intruder in the t-1 period (before) and

a good regression model is a regression that is free

from autocorrelation (Ghozali, 2018). The Durbin-

Watson test was used to test the autocorrelation in this

study.

Table 7: Autocorrelation test.

Model R R Square

Adjusted

R Square

Std. Error

of the

Estimate

Durbin-

Watson

1 ,809a ,654 ,650 1,673 2,075

From the Durbin-Watson table with 2

independent variables (k) and 150 n, at a probability

level of 5%, a dl value of 1.71970 and a du value of

1.74652 are obtained. Because of the Durbin- Watson

value of 2.075 > upper limit (du) of 1.74652 and < 4

- du of 2.25348, it can be concluded that H0 cannot

be denied stating that there is no autocorrelation in

this model.

3.3 Multiple Linear Regression

Analysis

Multiple linear regression analysis aims to prove the

value of the influence of viral marketing (X1) and

customer experience (X2) on purchasing decisions

Analysis of Viral Marketing and Customer Experience Inﬂuence on Purchasing Decisions through E-Commerce Shopee

(Y) (Sugiyono, 2017). The equation of the multiple

linear regression analysis is as follows:

Y = a + b1X1 + b2X2 +e (1)

Remark:

Y : Dependent variable (Purchase Decision).

a : constant.

b : Regression coefficient.

X1 : free variable (Viral Marketing).

X2 : free variable (Customer Experience).

e : Error / variable that is not in the study.

Table 8: Result of multiple linear analysis.

Model

Unstandardized

Coefficients

Sig.

B Std. Error

(

Constant

)

,075 1,248

viral marketin

,231 ,070 ,001

customer expe

ience ,761 ,070 ,000

Based on table 8 can be seen the multiple linear

regression equation as follows:

Y = 0.075 + 0.231(X1) + 0.761(X2) +e (2)

From this equation, it can be described as follows:

1. The constant value (a) for the regression equation

is 0,075. This means that the average purchase

decision variable will be 0,075 if the viral

marketing and customer experience variables are

zero.

2. Viral marketing variable has a regression

coefficient of 0,231 which means that viral

marketing has a positive influence on purchasing

decisions, meaning that if viral marketing is

increasing, then purchasing decisions are

increasing. Significance value <0,05 which means

there is a significant influence of viral marketing

and shows an increase in 1 viral marketing score

will increase purchasing decisions by 0,231 if the

other variables are constant.

3. The customer experience variable has a regression

coefficient of 0,761, which means the customer

experience has a positive influence on purchasing

decisions, meaning that if the customer

experience increases, the purchasing decision

increases. Significance value < 0,05 which means

there is a significant influence of customer

experience and shows an increase in 1 customer

experience score will increase purchasing

decisions by 0,761 assuming other variables are

constant.

3.4 Hypothesis Test

3.4.1 T Test

T test has the aim to test whether the independent

variables individually have an influence on the

dependent variable (Ghozali, 2018). If the

significance is < 0,05 then the independent variable

significantly influences the dependent variable.

Table 9: T Test.

Based on table 9, the t test results will be

explained as follows:

1. t-test results for the viral marketing variable

obtained t count of 3.28 > t table of 1.655 with a

significance value of 0.001 < 0.05. This means

that H1 is accepted, meaning that viral marketing

has a positive and significant influence on

purchasing decisions.

2. t test results for the customer experience variable

obtained t count of 10.854 > t table of 1.655 with

a significance value of 0.000 < 0.05. This means

that H2 is accepted, meaning that customer

experience has a positive and significant effect on

purchasing decisions.

3.4.2 F Test

The F test has the objective to show whether all

independent variables have a stimulant effect on the

dependent variable (Ghozali, 2018). If the

significance value < 0,05, then all independent

variables have a significant stimulatory effect on the

dependent variable.

Table 10: F Test.

Model df

Mean

Square

F Sig.

Regression 2 389,371 139,177 0,000

Residual 147 2,798

Total 149

Based on table 10 it is known that the F count

value is 139,177 > F table is 3.06 with a significance

value of 0,000 < 0.05, then H3 is accepted, meaning

ICAESS 2020 - The International Conference on Applied Economics and Social Science

that the free variable of viral marketing and customer

experience has a positive and significant influence on

purchasing decisions.

3.5 Coefficient of Determination

The coefficient of determination aims to see the

regression model in explaining the variation of the

dependent variable (Ghozali, 2018).

Table 11: Result of the coefficient of determination test.

Table 11 shows the R-Square value is 0.654 which

means that 65.4% of the variable variation can be

explained by viral marketing and customer

experience variables, while the remaining 34.6% is

explained by other variables outside the study.

3.6 Influence of Viral Marketing on

Purchasing Decisions through

Shopee E-Commerce

Based on testing the viral marketing hypothesis on

purchasing decisions using the t test in table 9, the

results obtained viral marketing influence on

purchasing decisions, because the t count of 3.280 > t

table of 1.655 with a significance value of 0.001

<0.05. This shows that H1 is accepted which means

that viral marketing has a positive and significant

influence on purchasing decisions.

There are several studies conducted related to

viral marketing strategy as one of the marketing

strategies used to increase the purchase of products or

services. These studies have been conducted by

Hidayati (2018), Hamdani and Mawardi (2018),

Ni'mah (2018), and Purba (2016). These studies

provide inspiration for this research. This study takes

dimensions that can be used as benchmarks in viral

marketing from Kaplan and Haenlein (2011) which

contain three dimensions, including (a) messenger,

(b) message, and (c) environment.

The difference between this study and previous

research is an analysis that discusses how viral

marketing influences purchasing decisions through e-

commerce Shopee. In this research, viral marketing

can influence purchasing decisions because

consumers will consider a product that is being widely

discussed by the general public. Active in using social

media becomes an important role so that it can

facilitate the dissemination of information about

messages or invitations made by Shopee. This has an

impact on viral marketing strategies that make

potential consumers believe what they say. In

addition, many matters discussed by the public attract

consumers. This makes potential customers aroused to

make purchasing decisions through e- commerce

Shopee.

3.7 Effect of Customer Experience on

Purchasing Decisions through

Shopee E-Commerce

Based on testing the customer experience hypothesis

on purchasing decisions using the t test in table 9,

obtained customer experience results influence on

purchasing decisions, because the t count of 10,854 >

t table of 1,655 with a significance value of 0,000 <

0.05. It shows that H2 is accepted which means

customer experience has a positive and significant

influence on purchasing decisions. T test results also

identify that this variable is the most dominant

independent variable in influencing purchasing

decisions.

There are several studies conducted related to the

customer experience strategy as one of the marketing

strategies used to increase the purchase of products or

services. These studies have been carried out by

Hidayati (2018) and Lung-Yu Li and Long- Yuan Lee

(2016). These studies provide inspiration for this

research. This study takes dimensions that can be used

as benchmarks in customer experience from Schmitt

(1999) which includes five dimensions, including (1)

sense, (2) feel, (3) think, (4) act, and (5) relate.

The difference with previous research is an

analysis that discusses how the influence of customer

experience in influencing purchasing decisions

through e-commerce Shopee. In this study,

customer experience from other consumers by giving

reviews on a product can influence prospective

consumers in choosing a product. When planning

marketing strategies to meet customer needs the

dimensions of consumption of experience must be

taken into account because customers make decisions

through experience all the time when involved in the

service process.

3.8 The Influence of Viral Marketing

and Customer Experience on

Purchasing Decisions through

Shopee E-Commerce

Based on testing the viral marketing hypothesis and

customer experience on purchasing decisions using

Analysis of Viral Marketing and Customer Experience Inﬂuence on Purchasing Decisions through E-Commerce Shopee

the F test in table 10, the results obtained viral

marketing and customer experience influence the

purchase decision, because the F count value of

139.177 > F table of 3.06 with a significance value of

0.000 < 0.05. This shows that H3 is accepted which

means that viral marketing and customer experience

have a positive and significant influence on

purchasing decisions.

This study takes dimensions that can be used as

benchmarks in purchasing decisions from Abdullah

and Tantri (2018) which contain five dimensions,

including (a) introduction of needs, (b) information

seeking, (c) alternative evaluation, (d) purchasing

decisions, and (e) behaviour after purchase.

Research that discusses the effect of viral

marketing and customer experience together in

influencing decisions has not been done. In this study,

the results of research that have been done show that

prospective consumers are currently more interested

in what is being viral in the community, especially

those who are young at heart and do not want to miss

the trend. This can be seen from the large number of

respondents in the age range 18-22 years in this study,

the majority are also students who are still young at

heart then it will be easier to be attracted to things that

are viral and interested in trying to use a product that

is being viral. In addition to something viral,

prospective consumers will also consider the

experience of customers who have already used

Shoppe as an online shopping medium. This is

because prospective consumers want to convince

themselves not to choose the wrong product so that

potential customers seek information in advance

during the purchase decision process.

4 CONCLUSIONS

The purpose of this study was to determine whether

viral marketing and customer experience can

influence the purchasing decisions of Shopee users in

Batam with a sample of 150 people. The conclusions

from the results of testing variables that are thought

to influence purchasing decisions through e-

commerce Shopee include:

1. Viral marketing has a positive and significant

influence on purchasing decisions. It is based on t

test that the viral marketing variable has a t count

of 3.280 > t table of 1.655 with a significance

value of 0.001 <0.05.

2. Customer experience has a positive and

significant influence on purchasing decisions. It is

based on t test that the customer experience

variable has a t count of 10.854 > t table of 1.655

with a significance value of 0.000 < 0.05.

3. Viral marketing and customer experience have a

positive and significant influence on purchasing

decisions. This is based on the results of the

analysis obtained using the F test that the viral

marketing and customer experience variables

have a F count value of 139.177 > F table of 3.06

with a significance value of 0.000 < 0.05.

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Analysis of Viral Marketing and Customer Experience Inﬂuence on Purchasing Decisions through E-Commerce Shopee