THE EFFECT OF ONLINE CUSTOMER REVIEW AND PERCEIVED RISK ON PURCHASE DECISIONS: A STUDY OF SOMETHINC CONSUMERS ON THE TIKTOK SHOP PLATFORM

Abstract

TikTok Shop is one of popular e-commerce today, especially among Generation Z. Somethinc, a local beauty brand, is one of the brands actively utilizing this platform to boost sales through content creation, live streaming, and online customer reviews. However, factors such as perceived risk remain a challenge in influencing purchasing decisions. This study is intended to analyze the effect of Online Customer Review and Perceived Risk variables on the purchase decisions of Somethinc products through TikTok Shop in Batam. A quantitative method was used with purposive sampling targeting 100 respondents aged 15–24 years who had previously purchased Somethinc via TikTok Shop. The data was obtained through a questionnaire distributed using Google Forms, applying a 1 to 4 Likert scale, and analyzed with SPSS. The findings indicate that Online Customer Review exerts a positive and statistically significant influence on consumer purchasing decisions, with a t-value of 7.267 (> 1.660) and a significance level of 0.000 (< 0.10). Conversely, Perceived Risk does not have a significant effect, with a t-value of -0.281 (< 1.660) and a significance value of 0.780 (> 0.10). An F-value of 28.267 with a significance level of 0.000 (< 0.05) indicates that the two independent variables together significantly impact purchase decisions. The coefficient of determination (R²) is 0.368, indicating that Online Customer Review and Perceived Risk together explain 36.8% of the variation in purchase decisions, while the rest 63.2% is influenced by another factors.