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.