Anik Sofiatun Amanah, Zainal Zawir Simon

The Effect of Pricing Strategy, Promotion, and Online Reviews on Consumer Purchasing Decisions: An Empirical Study

Introduction

The effect of pricing strategy, promotion, and online reviews on consumer purchasing decisions: an empirical study. Explore how pricing strategy, promotion, and online reviews influence consumer purchasing decisions on TikTok Shop. An empirical study reveals their significant impact, while ratings do not.

Abstract

The rapid growth of digital commerce has intensified competition among online sellers, requiring businesses to understand the factors that influence consumer purchasing decisions in digital marketplaces. However, empirical evidence on how price, promotion, and electronic word of mouth particularly online customer reviews and ratings shape purchasing decisions in the TikTok Shop ecosystem remains limited. Therefore, this study aims to examine the effects of price, promotion, online customer reviews, and online customer ratings on purchasing decisions, and to review these relationships from an Islamic perspective. This study uses an explanatory research design with a population consisting of TikTok Shop consumers in North Jakarta and a sample of 125 respondents. Data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The results show that price, promotion, and online customer reviews have a positive and significant effect on purchasing decisions, whereas online customer ratings do not. These findings provide empirical evidence on consumer behavior in the TikTok Shop marketplace and highlight the importance of pricing strategies, promotional activities, and credible online reviews in influencing purchasing decisions in digital commerce environments.

Review

This study tackles a highly relevant and timely topic concerning the drivers of consumer purchasing decisions within the rapidly expanding digital commerce landscape, specifically focusing on the TikTok Shop ecosystem. The paper aptly identifies a critical gap in empirical evidence regarding the combined influence of pricing, promotion, and electronic word-of-mouth (online reviews and ratings) within this dynamic platform. The additional declared aim to review these relationships from an Islamic perspective introduces a unique and potentially insightful dimension, differentiating this research from more conventional studies on consumer behavior in digital marketplaces. This combination of contemporary relevance and a distinct theoretical lens positions the study to offer valuable contributions to both academic understanding and practical strategies for online sellers. Methodologically, the study employs an explanatory research design, utilizing Partial Least Squares–Structural Equation Modeling (PLS-SEM) to analyze data from 125 TikTok Shop consumers in North Jakarta. This approach is generally appropriate for examining complex relationships among variables. The core findings indicate that pricing strategy, promotional activities, and online customer reviews significantly and positively influence purchasing decisions. Interestingly, online customer *ratings* were found to have no significant effect, a result that warrants further exploration and discussion within the full paper. These results provide specific empirical evidence for understanding consumer behavior on a popular social commerce platform and affirm the importance of specific marketing levers. While the abstract highlights important findings, a more detailed review of the full paper would be necessary to fully assess its methodological rigor and theoretical contributions. The sample size of 125 respondents from a single geographic area (North Jakarta) might limit the generalizability of the findings, and the distinction in impact between "reviews" and "ratings" offers a particularly intriguing avenue for deeper qualitative or mixed-methods investigation. Furthermore, the integration and explicit findings related to the "Islamic perspective" are not detailed in the abstract, leaving a key aspect of the study's stated aims unaddressed in this summary. Future research could benefit from a larger, more diverse sample, cross-cultural comparisons, and a more comprehensive exploration of the mechanisms underlying the observed effects, particularly regarding the insignificance of online ratings. Nonetheless, the study provides a solid foundation for understanding consumer behavior in the TikTok Shop environment and offers practical implications for businesses operating in this space.

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