Analysis of Factors Influencing Purchase Decisions on Tokopedia in Bandung City

ABSTRACT


INTRODUCTION
In the digital era, the phenomenon of e-commerce has become an integral part of daily life and has become a very popular phenomenon in Indonesia in recent years.Many Indonesians use e-commerce to buy various kinds of goods and services, ranging from primary, secondary, and tertiary products (Raman & Viswanathan, 2011).E-commerce has also helped increase market exposure and facilitate buying and selling transactions.The rapid growth of e-commerce businesses in Indonesia has caused many e-commerce to emerge and offer various benefits and conveniences, thus of course causing increasingly fierce competition.This e-commerce phenomenon also makes it very easy for sellers because sellers can promote their merchandise to a wider market and can save operational costs such as store rental costs, store design costs, and promotional costs that are not really necessary (Raje & Vandana, 2012).However, the existence of this ecommerce is also not uncommon to experience challenges.One of the challenges faced from the use of e-commerce is the challenge of communication to customers that is not smooth, cases that often occur are experienced by business people who take care of all things themselves from product promotion to customer service, receiving order requests, to taking care of deliveries often experience problems to pay attention to the content of incoming messages from consumers who ask for more details about the products to be purchased so that it affects purchase decision (Alaeddin et al., 2018).

Figure 1 Countries with the fastest growth of e-commerce
Source: Merchant Machine 2023 Along with the development of the internet and internet users that are increasing from year to year, e-commerce in Indonesia is also growing.The United Kingdom research institute, Merchant Machine, released a list of the ten fastest-growing ecommerce countries in the world, and Indonesia leads the ranks of these countries with a growth of 78% in 2020 and is followed by Mexico in second place.According to databoxes regarding the number of internet usage in Indonesia that continues to increase, it will reach 185 million users in 2024 or currently it has reached 185 million users, or equivalent to 66.5% of the total national population of 278.7 million people.This is certainly also one of the forces that drive the growth of e-commerce in Indonesia (Chopdar et al., 2018).
According to the top brand index data from the Top Brand Award Indonesia regarding e-commerce or online buying and selling sites, there are 5 platforms that dominate in Indonesia, starting from Shopee in first place, Lazada in second place, Tokopedia in third place, Bukalapak in fourth place, and Blibli.com in fifth place (Bleier et al., 2020).

Figure 2 Top Brand Index of Indonesia Online Buying and Selling Sites 2024
Source: Top Brand Award Indonesia 2024 Indonesia has a very dynamic and rapidly growing e-commerce market, especially since the Covid-19 pandemic hit the world.In recent years, Shopee, Lazada, and Tokopedia have become the three most widely used platforms in Indonesia.Each has its own advantages and effective marketing strategies (Filieri et al., 2018).Shopee has increased its edge with various strategies, such as ads, TV shows, livestreams, videos, promos, and other collaborations, and has very popular interactive features such as Shopee Live.Tokopedia, on the other hand, has increased its edge by having features that support sellers, such as promotions, broadcast chat, store statistics, and finance.Lazada, while not as popular as Shopee and Tokopedia, still has significant users and popular programs such as Ramadan Festival (Hubert et al., 2017).
One of the three platforms has begun to emerge its own strategy that attracts the interest of the public and seeks to adapt to the development of the times or current trends (Nisar et al., 2018).Tokopedia is one of them to be Marketplace or platforms that are currently developing their strategy by collaborating with Tiktok.This is an interesting phenomenon for the people of Indonesia, because Tiktok, which is currently also a favorite social media platform in Indonesia, collaborates with Tokopedia which is also a Marketplace favorite of the people of Indonesia.Tiktok, which is a social media application and video music platform originating from China, had more than 1 billion downloads throughout 2020 and even continues to increase until 2024 (until now).

Figure 3 Comparison of Short Video Sharing Platform Brand Results
Source: Top Brand Award Indonesia 2024 This is done by Tokopedia and Tiktok to improve online marketing strategies.In today's digital era, marketing strategies can be carried out effectively and efficiently even though they are done online, by utilizing blogs and social media to using coupon sites.Tokopedia collaborates with Tiktok as a promotional medium to promote their products through interesting videos through influencers to attract consumer buying interest.As we know that currently Tiktok is widely used not only for entertainment but also as a platform that provides a lot of information about various things, one of which is for business promotion or to introduce products to be sold.This has been done a lot, for example from honest review videos or what we usually know as product review videos (Sharma et al., 2020).
With this collaboration, of course, it will make it easier for potential consumers to know in detail about the products they want or about the products they see on the Tiktok platform.Product reviews are carried out by showing the product in detail, influencers or models will use the product, while explaining the usefulness, benefits, prices, discounts, links for the product, as well as the availability of the product or the number of products that are currently available and poured in a creative video so that it will attract a lot of consumer buying interest.Promotions are also not only done directly or planned, another example is if someone makes an entertainment video such as singing or dancing, and uses a product that looks good, unique, and interesting will also get a lot of questions in their comment column about the product, and even the audience will ask for a link to buy the same product.
From this phenomenon, we can know that Tiktok has a very big role and influence for today's business world.This finally became one of Tokopedia's decisions to collaborate in terms of product sales.In simple terms, in the past, the Tiktok shop made it easier for us to shop because we didn't need to leave the Tiktok page or switch platforms but finally closed by the government can now be used again by the public to make product purchases because they have collaborated, even so consumers or potential consumers do not need to leave the Tiktok page or move to the Tokopedia application to checkout or make payments, So that it is still easy for consumers to make purchases.
The integration between Tiktok and Tokopedia has been completed since March 27, 2024, some details about how this integration works are starting from the development of the shop feature where the shop feature in the Tiktok application is fully controlled by Tokopedia, the user experience in the e-commerce application and Tiktok remains different, and there is a separation of data between Tiktok users and Tokopedia users (users have accounts on each platform), payment transactions have more options such as payment options through Gopay, OVO, Dana, Bank Transfer, Indomaret, Alfamart, and also on-site payment systems or cash on delivery.The look given on the Tiktok shop is the same as the look on Tokopedia which is iconic in green, and the Tokopedia and Tiktok logos are listed on the package receipt paper.Supporting features and affiliates are Tokopedia's domain, Merchant terms and conditions are managed by Tokopedia, and Tokopedia has two e-commerce ecosystems, namely independent Tokopedia and Shop Tokopedia on the TikTok application.Thus, the integration of TikTok Shop and Tokopedia has reached the final stage, with the development of Shop features, data separation, payment transactions, displays, supporting features, terms and conditions, data usage, transactions, and further development.
One of the benefits that is also felt from this collaboration is that more than 90% of the merchants involved in this business merger are MSME actors where MSME actors will get support through comprehensive programs, including product promotion, MSME upstreaming, marketing support, branding, international promotion, opening a digital talent development center, and ensuring a marketplace that supports fair competition.The local buy program launched on the TikTok and Tokopedia applications will promote various types of merchants with the main focus on products from Indonesia.Users can take advantage of more and better promos and discounts for products from Indonesia on the TikTok application.
With the development of Tokopedia, there are other important factors such as transaction security which is a crucial factor in e-commerce.According to a survey conducted by APJII (Association of Internet Service Providers Indonesia) in 2020, 51.5% of internet users in Indonesia are worried about the security of their data when transacting online.Tokopedia, as one of the largest marketplaces in Indonesia, needs to ensure that the security aspect of transactions is a priority to maintain consumer trust in the city of Bandung.
In addition to security, the design and appearance of the app also play a crucial role in creating a pleasant and efficient user experience.A study conducted by Google in 2019 showed that 50% of smartphone users in Indonesia tend to leave a website or app if the appearance and design are unattractive or difficult to navigate.In a big city like Bandung, where smartphone penetration is high, intuitive and attractive app design can be a decisive factor in consumer purchasing decisions through the Tokopedia platform.
Furthermore, the ease of use of the application greatly affects the online shopping experience of consumers.According to research conducted by iPrice Group and App Annie in 2021, e-commerce apps with a high level of ease of use tend to have better user retention rates.In the city of Bandung, which is known as one of the creative and technological cities in Indonesia, consumers tend to choose e-commerce platforms that offer a smooth and intuitive shopping experience.Therefore, Tokopedia needs to ensure that the app is not only secure, but also has an attractive and easy-to-use design to attract and retain customers in the city.The combination of these three factors -transaction security, application display design, and ease of use can be key in influencing the purchase decision of Tokopedia consumers in the city of Bandung.
From the phenomena and backgrounds that have been explained, this should be a significant opportunity for Tokopedia to increase its market share and sales value, especially in the city of Bandung.However, it should be acknowledged that there are still various other factors that can affect consumer purchase decisions on the Tokopedia platform.According to consumer behavior theory, some of the factors that generally influence purchase decisions include cultural factors, social or environmental factors, personal factors, psychological factors, and marketing stimuli (Philip et al., 2018).
In addition to these factors, this study also considers more specific aspects related to e-commerce, especially in the context of Tokopedia in the city of Bandung.These factors include transaction security, app design and appearance, and ease of use of the app.Transaction security is a major concern considering the high concern of Indonesia internet users about the security of their data when transacting online (APJII, 2020).Meanwhile, the app's attractive design and appearance as well as its ease of use have proven to have a significant influence on user retention and purchase decisions Other factors that are also relevant in this context include product quality, price, promotions, product variety, shipping speed, product reviews and ratings, customer service, payment methods, loyalty programs, and seller reputation.All of these factors have the potential to influence the purchase decision of Tokopedia consumers in the city of Bandung, which is known as one of the cities with a high rate of technology adoption in Indonesia.
Considering the complexity of factors influencing purchasing decisions in the context of e-commerce, this study aims to analyze and identify the most significant factors influencing Tokopedia consumers' purchasing decisions in the city of Bandung.Therefore, the researcher intends to conduct a study with the title "Analysis of Factors Influencing Purchase Decisions on Tokopedia in the City of Bandung" Based on the formulation of the problem above, the purpose of this study is to find out what factors affect the purchase decision on Tokopedia in the city of Bandung.This research can contribute to the development of science and insight in the field of marketing, especially related to factors that affect purchasing decisions on Tokopedia.Thus, this research can expand the understanding of sellers or business people about the factors that affect consumer behavior in online shopping.
In (Yudha et al., 2024), with the title Analysis of Factors Influencing Purchase Decisions on Shopee, the results of the study show that of the twenty-six variables that affect purchase decisions on Shopee, there are six new variables that represent important factors in making purchase decisions.These factors are named the influence of fast service, the influence of friend invitations, the influence of cashback voucher offers, the influence of ease of finding goods, the influence of low prices, and the influence of the seller's domicile.
In Research by (Kusuma, 2016) with the title Analysis of Factors Influencing Online Purchase Decisions on the Tokopedia Website, showing that the results of the variables of trust, security, service quality, and risk perception simultaneously have an influence on online purchase decisions on the Tokopedia website.

RESEARCH METHOD
According to (Sugiyono, 2019c), the definition of a research object is "an attribute or property or value of a person, object or activity that has a certain variation that is determined by the researcher to be studied and then drawn conclusions.So, in this study, the object of research is Tokopedia.
In this study, the research approach to be used is quantitative.The data analysis method that will be applied is factor analysis, a research method that aims to identify the relationship between several variables by grouping them into smaller groups.The data collection technique that will be used is a questionnaire, which will be distributed online using Google Forms to collect data.The assessment in this survey will use a Likert scale with a score range of 1-4.

RESULTS AND DISCUSSION Validity Test
According to (Sugiyono, 2019a), validity test is a method to measure the extent to which a test is reliable in measuring what is actually wanted to be measured.A test is considered valid if it is able to measure exactly what it wants to measure.This validity test will be carried out for respondents who have made purchases on Tokopedia.To conduct a validity test, the researcher will use SPSS software to calculate whether the questionnaire is valid or not, paying attention to the value of r (Pearson's correlation coefficient).If the results of the study show an r value greater than the table r value or have a significance ≤ 0.05, then the statement can be considered valid.The validity test is carried out by connecting the score of each question with the total score of the variable.
Hypothesis: H0: invalid question item H1: valid question item Level of Significance: α Test Statistics:

Reliability Test
According to (Sugiyono, 2019b), the reliability test is a measure of how consistent the measurement results are made using the same object, resulting in similar data.In this study, the method used to measure the consistency of each question item is Cronbach's Alpha, which describes the degree of interconnectedness between each statement.The criteria in the reliability test are as follows: 1.The questionnaire is said to be reliable if the value of Cronbach's Alpha coefficient is greater than 60% or 0. 2. The questionnaire is said to be unreliable if the value of the Cronbach's Alpha coefficient is less than 60% after the deletion of the item.: the number of questions ∑ 2b : number of t-item variants, t = 1.2, ... ,  2t : total variance If the value of α > r table , the measuring tool is said to be reliable.

Factor Analysis
Factor analysis is a study that studies the relationship between variables with the aim of finding a new group of variables that are less than the original variable and identifying which variables are common factors (Suryanto, 1988).In factor analysis, a large number of variables are grouped into factors that have similar properties and characteristics.This grouping process involves measuring the correlation between variables and then placing the highly correlated variable into one factor, while the lowercorrelated variable is placed in another.Some of the benefits of the factor analysis method include: 1. Facilitate data processing in research that uses many variables by grouping variables into interrelated factors.2. Facilitate the interpretation of analysis results to obtain more realistic and useful information.

Group objects based on the characteristics contained in these factors
The stages in conducting a factor analysis can include:

Variable Selection
Before analyzing the data, researchers need to select and select variables.If the researcher uses a questionnaire as a measurement tool, the first step before factor analysis is to test the validity and reliability of the variables used.This aims to ensure that the variables selected are the right variables.If irrelevant variables are found, researchers can eliminate these variables because it can affect the results of factor analysis that will later be interpreted.

Formation of Correlation Matrix
Variable selection in factor analysis is based on the correlation between these variables.Variables with strong correlations will be included in the factor analysis, while variables with weak correlations will be removed from the analysis.If there are variables that have a weak correlation with other variables, then there will be no grouping.The main focus of this analysis is to identify the relationship between the initial variables, so the measure of correlation between variables is important.To determine whether the variable is feasible for further analysis, the Measure of Sampling Adequacy (MSA), Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy, and the Bartlett test of sphericity are used.
The MSA is used to evaluate the correlation between variables and an MSA value of < 0.5 indicates that the variable is invalid and should be removed from the analysis.Invalid variables are removed one by one, starting with the variable with the smallest MSA value, and variables that meet the criteria are retested until they get an MSA value of ≥ 0.5.Furthermore, the KMO Measure of Sampling Adequacy is used to check the adequacy of samples for factor analysis.If the KMO value ≥ 0.5, then factor analysis can be used appropriately.The Bartlett test of sphericity aims to find out whether the correlation matrix formed has the form of an identity matrix or not.The relationship between variables is very important in factor analysis because the goal is to connect the set of variables into one cohesive factor.

Determining the Factor Analysis Method
Once the variables have been selected and the correlation is calculated as per the requirements for analysis, the next step is to form factors to uncover the basic structure of the relationships between those variables.One of the methods that is often used in exploratory factor analysis is the principal component method.This research will focus on the principal component method with orthogonal rotation.
The principal component factor analysis method aims to identify the underlying structure of the initial variables in the analysis, as well as simplify the structure by reducing the data.Orthogonal rotation is used to clarify the interpretation of factors and explain more clearly the relationships between existing variables.Thus, this method helps in compiling factors that allow for simpler and more focused representations of complex data.

Determining the Number of Factors
Factor analysis always seeks to produce fewer factors than the number of variables analyzed.In this study, the number of factors produced is determined using three approaches, namely eigen, percentage of variance, and scree plot.
First, the criteria for determining the number of factors are based on the eigenvalue.The eigenvalue reflects the amount of variation explained by a factor.Factors with an eigenvalue of ≥ 1 are retained, while factors with eigenvalues < 1 are not included in the model because they do not make a significant contribution.The last eigenvalue ≥ 1 is selected as the factor extraction endpoint.
Second, the criteria for determining the number of factors can also be based on the percentage of variance.The number of factors chosen must be able to account for most variances, i.e. more than half of the total variance of the initial variance.
Third, the determination of the number of factors can also use the Scree plot.A scree plot is a graph that depicts the eigenvalue of the number of factors extracted.The determination of the number of factors of the scree plot is based on the decrease (slope) of the eigenvalue plot.When the scree chart starts to flatten and the eigenvalues are above one and below one, the dots indicate the optimal number of factors to extract.

Rotating Factors
The rotation process aims to obtain simplicity in the structure of factors and improve interpretation capabilities.Two commonly used rotation methods in factor analysis are orthogonal rotation and oblique rotation.Orthogonal rotation is done by maintaining a perpendicular axis, whereas oblique rotation does not maintain a perpendicular axis and takes into account the correlation between factors.
Orthogonal rotation is suitable for use when the purpose of the analysis is to reduce the number of variables without considering how important the factors produced.In this study, the focus will be on the orthogonal rotation method.The orthogonal rotation method has several analytical measurements, including the quartimax, varimax, and equimax methods.
The quartimax method aims to simplify the rows of factor matrices, but it is rarely used because it is ineffective in achieving simple factor structures.The varimax method focuses on simplifying the column of the factor matrix, resulting in a large or small loading factor value with a maximum value of 0 and 1 in the column.This method is preferred because it can distinguish factors more clearly and results in a simpler structure than quartimax.
The equimax method is a combination of quartimax and varimax, but it is rarely used in practice.From this explanation, the varimax method was chosen as the rotation method to be used in this study because of its ability to simplify the structure of factors and distinguish factors more clearly.

Interpretation of Factor Analysis
Interpretation is a process that is necessary to provide meaning and significance to the results of the analysis that has been carried out.This includes explaining the descriptive patterns of the data, looking for relationships between existing data descriptions, and identifying relationships between variables.
In the context of reducing data through factor analysis, interpretation steps include naming the reduced factors and calculating factor scores.The name of this factor is usually based on the interpretation of the underlying meaning.Furthermore, it is necessary to evaluate the value of the loading factor of each variable in the factors formed.This is done by comparing the value of the loading factor of the variables included in one factor.A high loading factor value indicates a strong correlation between the variable and the factor, while a low value indicates a weak correlation.1. Criteria for determining the significance of the Loading Factor The criteria for determining the significance of the loading factor used are based on the guidelines presented by (Nazir, 2014) using a significance level (α) of 0.05.The rules set are to identify significant loading factors based on the size of the sample.

Factor Naming
Once the factors are formed and the members have been determined, the next step is to give each factor a name.The naming of factors is carried out based on the characteristics and properties of the initial variables that are incorporated into the factor.This is done by paying attention to the underlying and representing the essence of the variables collected in one factor.

Figure 1
Figure 1 Validity Test Formula with: RXY : Correlation between two variables x : Question item y : The variable obtained from the sum of the scores of all items

Figure
Figure 3.2 Reality Test With: Ri : Alpha Cronbach correlation coefficient k: the number of questions ∑ 2b : number of t-item variants, t = 1.2, ... ,  2t : total variance If the value of α > r table , the measuring tool is said to be reliable.Factor AnalysisFactor analysis is a study that studies the relationship between variables with the aim of finding a new group of variables that are less than the original variable and identifying which variables are common factors(Suryanto, 1988).In factor analysis, a large number of variables are grouped into factors that have similar properties and characteristics.This grouping process involves measuring the correlation between variables and then placing the highly correlated variable into one factor, while the lowercorrelated variable is placed in another.Some of the benefits of the factor analysis method include: 1. Facilitate data processing in research that uses many variables by grouping variables into interrelated factors.2. Facilitate the interpretation of analysis results to obtain more realistic and useful information.3.Group objects based on the characteristics contained in these factorsThe stages in conducting a factor analysis can include:Variable SelectionBefore analyzing the data, researchers need to select and select variables.If the researcher uses a questionnaire as a measurement tool, the first step before factor analysis is to test the validity and reliability of the variables used.This aims to ensure that the variables selected are the right variables.If irrelevant variables are found, researchers can