chapter
10 Pages

Understanding the effect of celebrity endorsers and electronic word of mouth on e-commerce in Indonesia

WithM.E. Saputri, T.G. Sarawati, F. Oktafani

The development of the Internet that has penetrated all aspects of human life, including economic matters, has led to the birth of e-business or e-commerce. This e-business or e-commerce was created for business transactions that utilize the Internet and the Web, in order to make it easier for people to conduct business transactions with less energy and shorter time required to search for items they need. These online transactions have allowed the buying and selling process to not be obstructed by distance and time. Among the factors that can affect a company’s income and profits are celebrity endorsers and electronic word of mouth. Good celebrity endorsers and electronic word of mouth will increase consumers’ purchase of a product. This study aimed to determine the effect of celebrity endorsers and electronic word of mouth on the purchase decisions of Tokopedia customers. This research used both quantitative and descriptive analytic methods. The data analysis technique used was multiple linear regression. The results of the study have indicated that the responses from respondents to the celebrity endorser variable belong to the excellent category, responses to the electronic word of mouth variable to the good category, and responses to the purchase decision process variable to the excellent category. The conclusion of this study was that celebrity endorsers and electronic word of mouth affect the purchase decisions of Tokopedia customers with a percentage of 52.6%, while the remaining 47.4% is influenced by other variables not examined in this study. Thus, it is deemed that the better the celebrity endorsers and electronic word of mouth of Tokopedia, the better the purchase decision of consumers.