Influence of Price, Product Reviews, and Quality of Service on Online

Purchase Decisions through Shopee on Students of Batam State

Polytechnic

Febby Melliana Suryawan and Ayu Puspitasari

Applied Business Administration Study Program, Batam State Polytechnic, Jl. Ahmad Yani, Batam Centre, Indonesia

Keywords: Price, Review Products, Quality of Service, Purchase Decision.

Abstract: This study aims to determine the influence of price, product reviews, and quality of service on online

purchasing decisions through Shopee on Batam State Polytechnic students. The population in this study is

students of Batam State Polytechnic class 2018-2020 with the number of samples used in this study is 100

respondents. This study uses quantitative approach using descriptive statistical analysis with data processing

using multiple linear regression analysis with sampling techniques using purposive sampling techniques. The

results proved that product prices and reviews had no influence on purchasing decisions where t-calculated

the price of 0.381 and t-count product reviews 0.690 smaller than the

t-table of 1,660. While the variable

quality of service has an influence on the variable of purchasing decisions with t-count 1,816 greater than t-

table of 1,660. And the three independent variables namely price, product reviews and service quality have a

positive and significant effect simultaneously on purchasing decisions with a value of f-count 12,791 greater

than the value of f-table that is 2,14.

1 INTRODUCTION

With the development of information technology

such as the internet, the number of internet users in

Indonesia from year to year is increasing along with

technological advances. According to a 2019

Indonesian Internet Service Providers Association

(APJII) survey published by Internet World Stats, the

number of Internet users in Indonesia increased by

64.1% compared to the previous year, and the total

number of users reached 175.4 million.

With the increase of internet users in Indonesia,

this is clearly a very promising business potential.

Through this opportunity, the company increasingly

hopes to reach its consumers through various

channels, such as e-commerce or commonly referred

to as e-commerce or e-commerce. Many people take

advantage of this opportunity to start an online

business because it is considered more profitable and

promising.

According to Vasić, Kilibarda, &Kaurin (2019),

this phenomenon creates a new thing in consumer

behavior in online shopping that can be easily

purchased and sell their products using e-

commercefacilities, social media, and communities.

E-commerce is a third-party application created to

connect buyers and sellers online, making it easier for

them to do so. E-commerce itself is an application

that can be accessed and downloaded through each

user's mobile phone such as Shopee, Lazada,

Bukalapak, Tokopedia, Blibli, and so on.

Based on the monthly visitor data of Indonesian

e-commerce sites referred to by databoks.katadata.id,

Shopee ranks first with 96.5 million monthly visits,

making it the most popular and relatively widely used

e-commerce site. Shopee is an e-commerce website

with a market model that allows individuals or

entrepreneurs to easily open an online business and

provide a safe and convenient online buying and

selling experience. Shopee app itself has interesting

features and is very easy to use, so users will not have

any difficulties. In addition, Shopee itself has

interesting marketing techniques, has created a

program that will be held every month, one day in the

program, online sellers will give massive discounts so

that users are interested in buying.

Before purchasing a product, consumers have

some considerations before deciding to buy a product.

One of the first considerations I saw was the price of

the product. In the Shopee app, consumers can check

the price of the desired items from each store, ranging

382

Melliana Suryawan, F. and Puspitasari, A.

Inﬂuence of Price, Product Reviews, and Quality of Service on Online Purchase Decisions through Shopee on Students of Batam State Polytechnic.

DOI: 10.5220/0010934700003255

In Proceedings of the 3rd International Conference on Applied Economics and Social Science (ICAESS 2021), pages 382-387

ISBN: 978-989-758-605-7

from the most purchased, the cheapest to the most

expensive. This makes it easier for consumers to find

products that suit their needs.

After searching for a product with the right price,

the second thing that is usually a consideration of

consumers before deciding to buy a product is a

product review or an online customer review.

According to Collins in Shafa &Hariyanto (2020),

product reviews are news in the media where

someone expresses an opinion about the service or

product purchased. That's why product reviews mean

a lot to sellers in order to improve their quality and

help other consumers in deciding whether to make a

purchase of the product or not.

In addition to product reviews, the quality of

service provided by online store owners is also very

attentive. Good quality of service will be one of the

considerations of a consumer before deciding on the

purchase of products because consumer confidence is

always a priority so it takes the ability to serve

consumers (Meliana et al., 2013).

Based on research conducted by Rahayu,

Sismanto & Arlanto (2020) with the title "The

Influence of Prices, Product Reviews, Ease of Use,

and Transaction Security on Online Purchase

Decisions at Shopee" shows that prices and product

reviews have a positive and significant partial effect

on decisions online purchases. This shows that prices

and product reviews have an impact on the tendency

of consumers to make an online purchase.

Meanwhile, according to research conducted by

Fahrevi and Satrio (2018) with the title "The

Influence of Price, Promotion, and Service Quality on

Online Purchase Decisions at Shopee.co.id" states

that service quality has a significant and positive

effect on online purchasing decisions. So it can be

concluded that the better the quality of service

provided by the seller to the consumer, the higher the

purchase decision on the product.

Based on the explanation above, researchers are

interested to research more about the influence caused

by variable prices, product reviews and quality of

service to purchasing decisions by taking the title

"Influence of price, product reviews, and quality of

service on the quality of online purchases through

Shopee on Batam State Polytechnic students".

2 LITERATURE REVIEW

2.1 Price

Price is a monetary measure or unit of a product or

other service that is exchanged for property rights or

the use of such goods or services (Malau, 2017). Price

is one of the factors that determine a consumer's

decision in making a purchase. Where consumers

tend to make prices become a benchmark or

assessment of the quality and suitability of the

benefits of a product. Proper pricing can benefit the

seller. That is why a seller must be able to set the price

appropriately so that the products or services they

offer can be successful and in demand in the market.

As for the indicator of the price according to Kotler

& Amstrong in Muhasri (2019) is an affordable price,

the price is in accordance with the quality of the

product, the competitiveness of the price and the price

in accordance with the benefits.

Price is a monetary measure or unit of a product

or other service that is exchanged for property rights

or the use of such goods or services (Malau, 2017).

Price is one of the factors that determine a consumer's

decision in making a purchase. Where consumers

tend to make prices become a benchmark or

assessment of the quality and suitability of the

benefits of a product. Proper pricing can benefit the

seller. That is why a seller must be able to set the price

appropriately so that the products or services they

offer can be successful and in demand in the market.

As for the indicator of the price according to Kotler

& Amstrong in Muhasri (2019) is an affordable price,

the price is in accordance with the quality of the

product, the competitiveness of the price and the price

in accordance with the benefits.

2.2 Review Products

Product reviews are responses given by consumers

regarding products or services that have been used.

According to Mo, et, al. in Saripa (2019) argues that

reviews containing images reflect the quality of actual

items, such as color problems, inconsistent

specifications, usage issues, or high quality, and good

experiences. Product reviews are very influential for

both sellers and buyers. Product reviews become one

of the marketing techniques that play a role in the

purchasing decision making process. The indicators

of product reviews according to Lackermair, Kailer

&Kanmaz (2013) are awareness, frequency,

comparison, and influence.

2.3 Quality of Service

Quality of service is a thing provided by the seller to

satisfy consumers (Tjiptono in Fahrevi & Satrio,

2018). The quality of services provided is also

considered by consumers because if the services

provided are not in accordance with the wishes of

Inﬂuence of Price, Product Reviews, and Quality of Service on Online Purchase Decisions through Shopee on Students of Batam State

Polytechnic

383

consumers then it can have a bad impact on the

business that is being run. Consumer confidence must

be maintained so that consumers always feel that the

service we provide is good enough and make those

consumers loyal to us. The indicators of the quality of

service seen by consumers according to Parasuraman,

Zeithaml & Berry (2018) namely reliability,

responsiveness, assurance, empathy, and tangibles.

2.4 Purchase Decisions

Purchase decision is a process where consumers

know the problem, look for a particular product or

brand and evaluate howwell each alternative can

solve the problem, which then leads to a purchase

decision (Tjiptono in Shafa &Hariyanto, 2020).

Before deciding to make a purchase, consumers

usually first see what the parameters are before

deciding to buy. As for the parameters before

someone decides to make a purchase according to

Kotler &Keller in Muhasri (2019) there are 5 problem

recognition, information search, evaluation of

alternative (alternative evaluation), purchase decision

(determining purchase), and post purchase behavior

(behavior after purchase).

3 METHODS

3.1 Populations and Samples

The population in this study is Batam State

Polytechnic students in 2018-2020 which amounted

to 4872 students. The samples used in this study

numbered 100 respondents.

3.2 Methods

The research method used in this study is quantitative

analysis method. The results of this data collection

were obtained from the results of questionnaires

distributed to samples which then the results were

tabulated frequency distribution of each variable.

Then the data obtained will be processed and

analyzed to get conclusions from the existing

problems.

The study used four variables, where price,

product reviews and service quality as independent

variables and purchase decision variables as

dependent variables. This research uses multiple

linear regression analysis methods to process the data

of questionnaire results obtained from respondents.

The equation model is as follows:

𝑌 = 𝛼 + 𝛽1𝑋1 + 𝛽2𝑋2 + 𝛽3𝑋3 (1)

Description :

Y = Purchase Decisions

X1 = Price

X2 = Product Reviews

X3 = Quality of Services

α = Constant

β = Regression Coeficient

4 RESULT AND DISCUSSION

4.1 Validity Test

Validity tests are used to test the reliability of a

questionnaire. To see the validity test level of this

questionnaire refers to the apostate value, where the

value of the correlation rcount must be greater than

thetabler value. To test its validity in this study using

SPSS version 25. If thecalculated r is greater than

rtable and is positive, then the question item or

indicator is declared valid (Ghozali, 2018). Here are

the validity test results that the researchers have

summarized in the following table:

Table 1: Recapitulation of Research Instrument Validity

Test Results.

Variable

Validity

Item Rcount R table Description

Price

(X1)

X1.1 0,795

0,1654

Valid

X1.2 0,757 Valid

X1.3 0,738 Valid

X1.4 0,730 Valid

X1.5 0,826 Valid

Product

Reviews

(X2)

X2.1 0,759

0,1654

Valid

X2.2 0,766 Valid

X2.3 0,660 Valid

X2.4 0,615 Valid

Quality

Service

(X3)

X3.1 0,340

0,1654

Valid

X3.2 0,307 Valid

X3.3 0,336 Valid

X3.4 0,364 Valid

X3.5 0,510 Valid

X3.6 1 Valid

Purchase

Decisions

(Y)

Y.1 0,545

0,1654

Valid

Y.2 0,508 Valid

Y.3 0,340 Valid

Y.4 0,634 Valid

Y.5 0,519 Valid

Y.6 0,735 Valid

Y.7 0,548 Valid

Y.8 0,590 Valid

(Source: SPSS Processing result 25, 2021)

ICAESS 2021 - The International Conference on Applied Economics and Social Science

384

4.2 Reliability Test

Reliability test is a test that shows the consistency of

the question instrument in this study. A questionnaire

is said to be reliable or reliable if each-questionis

answered consistently (Ghozali, 2018). The question

criteria can be said to be reliable if the cronbach alpha

value is greater than 0.60. Conversely if the result of

cronbach alpha is less than 0.60 then it is not reliable.

Reliability test results in this study can be seen in the

table below:

Tabel 2: Recapitulation of Reliability Test Results.

Variable

Reliability

Conclusion

Alpha

Cronbach

Cut off

Alpha

Cronbach

Price (X1) 0,822 0,6 Reliabel

Product

Reviews (X2)

0,650 0,6 Reliabel

Quality of

Service (X3)

0,848 0,6 Reliabel

Purchase

Decisions (Y)

0,672 0,6 Reliabel

(Source: SPSS Processing result 25, 2021)

4.3 Descriptive Statistics

Characteristics of respondents is an overview of the

respondents who became a sample of research. This

characteristic is the identity given by respondents to

the study with the title "Influence of Price, Product

Reviews, d an Quality of Service To Online

Purchasing Decisions Through Shopee At Batam

State Polytechnic Students". The respondents in this

study were students of Batam State Polytechnic class

2018-2020 as many as 100 respondents. The

characteristics of respondents in this study include

gender, course of study, and year of study.

Table 3: Recapitulation of Results from Respondent

Characteristics.

No Variable

Persentage

(%)

Gender

Female 57%

Male 43%

Study Program

Applie

Business Administration 11%

Accountin

Mana

erial 8%

Accountin

International Trade Lo

istics 5%

Informatics Engineering 10%

No Variable

Persentage

(%)

Multimedia and Networking

ineerin

11%

Geomatics Engineering 5%

Animation 4%

Sabe

Securit

Engineering 3%

Electronics Engineering 4%

Manufacture Electronics

ineerin

Mechatronics Engineering 11%

Instrumentation Engineering 2%

Robotics Engineering 4%

Power Plant Engineering 3%

Mechanical Engineering 5%

Ship Planning & Reconstruction

ineerin

Aircraft Maintenance

Engineering

Year of Entr

2018 57%

2019 18%

2020 25%

(Source: SPSS Processing result 25, 2021)

4.4 Multiple Linear Regression Test

Multiple linear regression analysis is used for the

purpose of knowing whether or not an independent

variable affects dependent variables. Multiple linear

regression calculations in this study using spss

application program help version 25.. The results of

the calculation of multiple linear regression tests are

as follows:

Table 4: Recapitulation of Multiple Linear Regression Test

Results.

Model

Unstandardized

Coefficients

Standardized

Coefficients

B Std. Error Beta

(Constant)

12,333 2,216

Price 0,211 0,553 0,156

Product Reviews 0,382 0,554 0,285

Quality of Service 0,188 0,104 0,173

(Source: SPSS Processing result 25, 2021)

4.5 T Test

T test is used to measure the extent of the influence of

each free variable i.e. variable price (X1), product

review (X2) and service quality (X3) partially to the

Inﬂuence of Price, Product Reviews, and Quality of Service on Online Purchase Decisions through Shopee on Students of Batam State

Polytechnic

385

bound variable i.e. purchase decision variable (Y) by

comparing t-count value with t-table with a level of

significance of 10%. The research has a test

hypothesis model where the value of t-table and df (

degree offreedom) with the formula n2. Based on the

calculation of criteria obtained t-table value of 1,660.

The following are the results of the recapitulation of

multicolinearity tests in the following table:

Table 5: Recapitulation of T Test Results.

Model

Unstandardized

Coefficients

Standardized

Coefficients

T Sig.

Std.

Erro

Beta

(Constant) 12,333 2,216 5,566 0

Price 0,211 0,553 0,156 0,381 0,704

Product

Reviews

0,382 0,554 0,285 0,690 0,492

Quality of

Service

0,188 0,104 0,173 1,816 0,072

(Source: SPSS Processing result 25, 2021)

4.6 F Test

F test or simultaneous test is a test used to measure

the extent to which free variables i.e. price variables

(X1), product reviews (X2) and service quality (X3)

jointly affect bound variables i.e. purchase decisions

(Y). Calculation for test F, requires df. Based on the

calculation of the above criteria obtained a f-table

value of 2,14. The test results of the f test in this study

can be seen in the following table:

Table 6: Recapitulation of F Test Results.

ANOVA

Model

Sum of

uares

Mean

uare

F Sig.

Regression 285,690 3 95 12,791

.000

Residual 714,750 96 7,445

Total 1,000,440 99

(Source: SPSS Processing result 25, 2021)

4.7 Discussion

1. The results of this research analysis show that

price variables are of positive value and there is

no significant influence on the variables of

online purchasing decisions through Shopee.

This is evidenced by the value in the t test with

t-count value is 0.381<1.660 with a significant

value on the variable price of 0.704>0.1. In this

case the zero hypothesis is accepted because the

price variable has no effect on the purchase

decision variable.

2. Based on the above T test results it is known that

product review variables are positive and there is

no significant influence on the variables of

online purchasing decisions through Shopee.

This is evidenced by the value in the t test with a

t-count value of 0.690<1.660 with a significant

value on the variable price of 0.492>0.1. In this

case the zero hypothesis is accepted because the

product review variable has no influence on the

purchase decision variable. The results of this

study support previous research conducted by

Ilmiyah and Krishernawan (2020) which

explained that product review variables do not

have a positive influence on the variable of

purchasing decisions.

3. Based on the results of the T test above it is

known that the variable quality of service is

positive and there is a significant influence on

the variable of online purchasing decisions

through Shopee. This can be proven by the value

in the t test with t-count value is 1,816>1,660

with a significant value on the service quality

variable worth 0.072<0.1. In this case the zero

hypothesis is rejected because the service quality

variable has an influence on the purchase

decision variable. The results of this study

support previous research conducted by Fahrevi

and Satrio (2018) stated that the quality of

service positively affects the variable purchasing

decisions.

4. The results of this research analysis show that the

price, product reviews, and quality of service

simultaneously influence the decision to

purchase products online at Shopee in batam

state polytechnic students. Based on the above

statement, it can be concluded that the first

hypothesis is accepted. Because the three

independent variables are price, product reviews

and service quality significantly influenced the

dependent variable that is the decision to

purchase online through Shopee at the Batam

State Polytechnic students. This statement can be

proven by f-count result of 12,791, this value is

greater than the error rate of 10% or 0.1 of f-

table of 2.14 and a significant value of 0.000 that

is smaller than the alpha value of 0.1.

5 CONCLUSIONS

Based on the data analysis conducted by the authors

in this study can be drawn the following conclusions:

ICAESS 2021 - The International Conference on Applied Economics and Social Science

386

1. Variable prices have no influence on the

variable purchasing decisions online through

Shopee on students of Batam State Polytechnic.

2. Variable product reviews have no influence on

the variable of online purchasing decisions

through Shopee on students of Batam State

Polytechnic.

3. Variable quality of service has an influence on

the variable of online purchasing decisions

through Shopee on students of Batam State

Polytechnic.

4. Variable price (X1), product reviews (X2) and

quality of service (X3) together that have a

positive nature with variable purchasing

decisions (Y) online through Shopee at students

Batam State Polytechnic.

ACKNOWLEDGEMENTS

Thank you to Ayu Puspitasari, S.E., M.Si., Nur

Rahmah Andayani, S.IP., M.Si., Dian

Mulyaningtyas,. S.Si., M.T. Fandy Bestario Harlan,

S.T., M.MT., and entire academic and staff of

department of Business Management Batam State

Polytechnic.

REFERENCES

APJII. (2020, 12 23). Asia Internet Stats. Accessed:

https://www.internetworldstats.com/asia.htm#id

Fahrevi, S. R. (2018). The Influence of Price, Promotion,

and Service Quality on Online Purchase Decisions at

Shopee.co.id. Journal of Management Science and

Research : Volume 7, No 3.

Ghozali, I. (2016). Multivariate Analysis Application with

IBM SPSS Program 23. Semarang: BPFE Diponegoro

University.

Ghozali, I. (2018). Multivariate Analysis Application with

IBM SPSS Program 25. Diponegoro University

Publishing Agency.

Kotler, P., & Armstrong, G. (2018). Principles of Marketing

17th edition. London: Pearson.

Kotler, P., & Keller, K. (2019). Marketing Management

Edition 13 Volume 1. Erlangga.

Lackermair, G., Kailer, D., & Kanmaz, K. (2013).

Importance Of Online Product Reviews From A

Consumer's Perspective. Advances in Economics and

Business, 1-5.

Malau, H. (2017). Marketing Management Theory and

Application of Marketing from the Traditional Era to

the Era of Global Modernization. Bandung: Alphabeta.

Meliana, Sulistiono, & Setiawan, B. (2013). The Influence

of Service Quality and Consumer Trust on Purchase

Decisions. Scientific Journal of Unit Management, 247-

254.

Muhasri, A. (2019). The Influence of Customer Reviews,

Prices, and Service Quality on Purchase Decisions for

Cosmetic Products at Shopee (Case Study on Pertamina

University Students). Jakarta: Faculty of Economics

and Business, Pertamina University.

Saripa. (2019). The Effect of Product Reviews and Ratings

on Purchase Decisions Through Tokopedia (Case Study

3 Districts in Makassar City). Indonesia: Nobel School

of Economics Indonesia.

Shafa, P. M., & Hariyanto, J. (2020). The Influence of

Prices, Product Reviews, and Payment Methods on

Purchase Decisions in Online Shopping Through the

Shopee Application. Indonesian College of Economics.

Shopee. (2020, 12 23). Shopee Indonesia. Taken back from

https://shopee.co.id/

Sugiyono. (2015). Quantitative, Qualitative and R&D

Research Methods. Bandung: CV. Alphabet.

Sugiyono. (2017). Quantitative, Qualitative and R&D

Research Methods. Bandung: CV. Alphabet.

Vasić, N., Kilibarda, M., & Kaurin, T. (2019). The

influence of online shopping determinants on customer

satisfaction in the Serbian market. Journal of

Theoretical and Applied Electronic Commerce

Research, 70-89.

Yudiaatmaja, F. (2017). Path Analysis: Manual

Calculations and Computer Applications. Depok:

Rajawali Press.

Zeithaml, V. A., Parasuraman, A., & Berry, L. L. (2018).

Service Quality Dimensions. Focus on the Customer,

Service Marketing 7th Edition. 87-91.

Smith, J., 1998. The book, The publishing company.

London, 2

edition.

Inﬂuence of Price, Product Reviews, and Quality of Service on Online Purchase Decisions through Shopee on Students of Batam State

Polytechnic

387