THE INFLUENCE OF INFLUENCER CREDIBILITY AND LIVE STREAMING ON GEN Z’S PURCHASE DECISIONS ON THE TIKTOK PLATFORM MEDIATED BY CUSTOMER TRUST

Abstract

TikTok's popularity among Generation Z is encouraging many companies to use it to influence purchase decisions. However, the reopening of TikTok after the shutdown creates challenges for businesses regarding Gen Z purchase decisions. This research aims to investigate the influence of influencer credibility and live streaming on Generation Z purchase decisions, with customer trust as a mediating variable. Utilising SmartPLS 4.1.0.6 software, this study employs a quantitative approach with PLS-SEM (Partial Least Square Structural Equation Modelling) analysis. The study utilized data from 149 current Gen Z in Indonesia participants who were actively engaged and had engaged in transactions on TikTok. Results of the investigation indicate that both influencer credibility and live streaming have a substantial direct influence on consumer trust, as does the direct influence of customer trust on purchase decisions. Influencer credibility and live streaming exert a direct influence on purchase decisions, however it is not significant. By contrast, the indirect influence of influencer credibility and live streaming on consumers' purchase decisions through the development of trust shows significant results. An essential element in mitigating the influence of influencer credibility and live streaming on purchase decisions is the emphasis placed on customer trust. Although influencer credibility and live streaming may not have a direct influence on consumers' purchase decisions, the trust they instil can indirectly influence their purchase behaviour.