AJMA Asian Journal of Management and Accounting 2963-4547 Formosa Publisher 10.55927/ajma.v4i3.15052 The Influence of Service Quality, Price, Promotion and Electronic Word of Mouth (E-WOM) on Purchasing Decisions on Shopee E-Commerce Akbar Mochammad Faculty of Economics and Business, Universitas Muhammadiyah Purwokerto, Indonesia Rachmawati Erny Faculty of Economics and Business, Universitas Muhammadiyah Purwokerto, Indonesia ernyrachmawati67@gmail.com Purwidianti Wida Faculty of Economics and Business, Universitas Muhammadiyah Purwokerto, Indonesia Miftahuddin Muchammad Agung Faculty of Economics and Business, Universitas Muhammadiyah Purwokerto, Indonesia 28 07 2025 08 06 2025 24 06 2025 26 07 2025 4 3 1257 1274

This study aims to analyze the influence of service quality, price, promotion, and electronic word of mouth (e-WOM) on purchase decisions on the Shopee e-commerce platform. A quantitative approach was used by collecting data through questionnaires to 130 students in Purwokerto who had shopped through Shopee in the January–May 2025 period. Data is analyzed using the SmartPLS application 3. The results showed that promotion and e-WOM had a significant positive effect on purchase decisions, while service quality and price did not show a significant influence. These findings confirm the importance of digital promotions and user-generated content in influencing online consumer behavior and providing strategic input for the development of e-commerce marketing.

 Quality of Service Price Promotion Electronic Word of Mouth Purchase Decision http://creativecommons.org/licenses/by/4.0/ This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International License. INTRODUCTION

One example of rapid technological progress in today's era of globalization is the emergence of the internet. The internet has revolutionized the way people communicate and do business, as more and more people and companies can connect through these networks, as well as increasingly accessible internet access. Many new innovations have emerged with the presence of the internet, including online marketplaces or e-commerce, which allows consumers to search and buy products without having to visit physical stores in Rome, (2023). E-commerce or online stores are becoming one of the increasingly popular shopping options in Indonesia, driven by factors such as the large number of internet users and high internet penetration rates. Shopee as one of the leading e-commerce in Indonesia, shows its popularity by becoming one of the favorite destinations for consumers to make online purchases.

 Figure 1. 10 E-Commerce with the Most Favorite Shopping Channels in Indonesia in 2024

With the increasing number of internet users in Indonesia, Shopee needs to continue to adapt to consumer trends and needs. One of the key steps that can be taken is to improve the quality of their website. As an e-commerce platform, website quality is an important aspect in strengthening the consumer shopping experience and maintaining Shopee's position as a major player in the Indonesian e-commerce industry. The increasing use of the internet in Indonesia shows that the internet has become a phenomenon that has changed people's overall lifestyles, especially in terms of consumption and shopping behavior. With this phenomenon and with its rapid development, Shopee offers a standard online shopping experience through a mobile and diversified online store. In information, communication, and media technology, online shopping has become easier for customers. It also allows for digital business opportunities to reach more customers, known as Vadila e-commerce, (2024).

Table 2. E-Commerce with the most visitors in 2023 E-Commerce Visitors

 <italic>Source : Similarweb 2024</italic>
E-Commerce Visitors
Shopee 2.35 billion
Tokopedia 1.25 billion
Lazada 762.4 million
Blibli 337.4 million
Squirting 168.2 million

According to Rani, (2022) Service quality is a form of strength in meeting consumer interests and expectations, and accuracy in providing various kinds of consumer ambitions. If the service that customers receive is in line with their expectations, then they will feel satisfied, and the company will be able to survive by providing better value than competitors. On the other hand, if the service received does not meet expectations, the customer will feel disappointed and have the potential to stop using Shopee's services. This is in accordance with previous research conducted by Alfarizi, (2021), Alimansyah et al., (2022), Indrasana, (2022) & Magdalene et al., (2022) which states that the quality of service has a significant positive effect on the purchase decision. Meanwhile, the research conducted by Fuadi et al., (2022), Widjaja, (2023), Kusumaningrum et al., (2022) stating that the quality of service does not have a significant positive effect on the purchase decision.

According to Pramuditha, (2021) Price is one of the factors that can

influence a person to make a purchase decision. This is in accordance with previous research conducted by Rahmadanni et al., (2021), Iman et al., (2022), Wicaksono, (2020) & Rasyiddin et al., (2022) which states that price has a significant positive effect on the purchase decision. Inversely proportional to research Squirrels (2021), Nuraini (2022), Ramadan (2023) which states that price variables do not have a significant positive effect on the purchase decision.

According to Yoeliastuti et al., (2021) Promotion is a corporate communication function that is responsible for providing information and persuading or inviting buyers, promotion is also a marketing program in persuasive actions to customers so that there is an exchange between the company and customers. Promotion according to Faith et al., (2022), Alfarizi, (2021), Rahmadanni et al., (2021) & Christiani, (2021) stating that promotions have a significant positive effect on purchasing decisions. Inversely proportional to the researcher Andriani, (2023), Scott, (2022), Beautiful et al., (2021) declare that the promotion has no significant positive effect on the purchase decision.

According to Rahman et al., (2022) The rapid development of technology,

especially social media, requires the right marketing strategy so as to form a strong relationship with consumers. One of the Company's strategies to form brand loyalty with consumers is to use electronic word of mouth (eWOM). Electronic Word of Mouth It is referred to as any form of information about a product, which is easily accessible and accessible to anyone through various platforms. Electronic Word Of Mouth According to Dewi et al., (2022), Arif, (2021), Scott, (2023) & Dewi, (2023) states that the variable Electronic Word Of Mouth has a significant positive effect on purchasing decisions. Inversely proportional to the researcher Sastri, (2023), Rahmawati et al., (2023), Ancient,

(2022) which states that the Electronic Word Of Mouth variable does not have a significant positive effect on the purchase decision.

This research is a development of a previous researcher conducted by Indrasena, (2022) who researched the Influence of Service Quality, Price and Promotion on Purchase Decisions. The main difference from this study is the addition of an independent variable, namely Electronic Word Of Mouth (E-WOM), which I took the variable from researchers Dewi et al., (2022) and the object of the study, namely Shopee. Based on the background that has been described, this study raises the topic of the Influence of Service Quality, Price, Promotion and Electronic Word Of Mouth on Purchase Decisions on Shopee E-Commerce for consumers in Indonesia. This analysis aims to examine the phenomenon of rapid development of e-commerce, especially Shopee, which dominates the Indonesian

digital market with the largest number of visitors throughout 2024-2025, showing a shift in consumer behavior in making online purchase decisions. Various studies related to the influence of service quality, price, promotion, and electronic word of mouth on purchase decisions show different results. Some studies show significant findings, while others do not. These inconsistent results are a study that needs further research. This research is very important to gain a better understanding of the factors that influence students' purchasing decisions on the Shopee platform. Another goal of this study is to update the previous model by adding the Electronic Word of Mouth (E-WOM) variable, it is hoped that the findings of this study will contribute both theoretically and practically to building a better e-commerce marketing strategy.

 LITERATURE REVIEW Purchase Decision

According to Arfah, (2022) Purchasing decisions are a form of satisfaction or dissatisfaction felt by individuals, which comes from a comparison between their experience with the actual performance of the product and the expected performance. This feeling of pleasure or disappointment arises from the comparison between the accepted reality and the expectations that consumers have. If the product purchased meets expectations, consumers will feel satisfied; otherwise, they will feel disappointed. Thus, it can be concluded that a purchase decision is a feeling of pleasure or disappointment experienced by consumers based on a comparison between the desired expectations and the reality obtained from a product.

 Consumer Behavior

Consumer behavior is an action taken by individuals that is influenced by their interest in consumptive goods. This action is seen in the way a person searches, buys, uses, assesses, and disposes of goods and services. The decision to buy goods and services for personal interests is one example of consumer behavior. This behavior arises from the constant interaction between influences, awareness, actions, and the environment in various aspects of Siringi's life, (2012).

 Cognitive Theory

According to Peter & Olson, (2018), cognitive theory discusses patterns and cycles in psychology related to events, thoughts, understanding, decomposition, and improvement. When we decide to buy something, we have to consider many things, including the cost, quality, affordability, or advantage of the item, and so on. This includes things like seeing things and understanding the circumstances, remembering past events, making evaluations, and making purchasing decisions.

 Service Quality

Based on Nugraheni et al., (2024), Service quality is an effort to meet customer needs along with customer interests or desires as well as precision in clear delivery to meet customer satisfaction. The quality of service can also attract customers to buy products. The results of the research found by Alfarizi, (2021) & Alimansyah et al., (2022), Indrasena, (2022) shows that service quality has a significant positive effect on purchase decisions. This shows that the quality of service has a high influence on the purchase decision.

HI: Service Quality has a significant positive effect on Purchase Decisions.

 Price

According to Alwan, (2021) Price is a number of values exchanged by consumers for the benefit of owning or using products whose value is set by buyers and sellers through bargaining or set by sellers for one equal price to all buyers. Price is the value of a product provided by a company. Price determines a company's revenue. If the selling price for a product with the best quality is high, the profit obtained is also high, on the other hand, if the selling price of a product with unsatisfactory quality then the profit obtained is also not maximum. The results of the research found by Rahmadanni et al., (2021) & Faith

et al., (2022), Wicaksono, (2020) shows that price has a significant positive effect

on purchase decisions. This shows that price has a high influence on purchase decisions.

H2: Price has a significant positive effect on the Purchase Decision.

 Promotion

According to Yoeliastuti et al., (2021) Promotion is a corporate communication function that is responsible for providing information and persuading or inviting buyers, promotion is also a marketing program in persuasive actions to customers so that there is an exchange between the company and customers. The results of research found by Iman et al., (2022) & Alfarizi, (2021), Rahmadanni et al., (2021) show that promotion has a significant positive effect on purchasing decisions. This shows that promotions have a high influence on purchasing decisions.

H3: Promotion has a significant positive effect on the Purchase Decision.

 Electronic Word of Mouth

According to Prihartini, (2022) Electronic Word of Mouth (E-WOM) is a form of communication media used to share information about products or services among consumers who have never met in person, but know each other through electronic communication media (Prihartini, 2022). This e-WOM involves the exchange of information about the experience of using products or services, either through positive or negative reviews, carried out by website users, consumers, or through social media. Thus, E-WOM has become one of the essential tools in modern marketing that allows consumers to share their views and experiences related to the products they are looking for. The results of research found by Dewi et al., (2022), Arif, (2021), Handayani, (2023) show that

electronic word of mouth has a significant positive effect on purchase decisions.

This shows that electronic word of mouth has a high influence on purchase decisions.

H4: Electronic Word of Mouth has a significant positive effect on Purchase

Decisions.

Figure 3. Frame of Mind

 METHODOLOGY

This research uses a quantitative method assisted by a questionnaire that aims to obtain the data and information needed. In this study, the population is 49,069 active students at the University of Purwokerto (UMP, UNSOED, Saifudin Zuhri State Islamic University Purwokerto) who have made transactions using Shopee. The sampling technique used is Purposive Sampling to determine the minimum number of samples in the study using the slovin formula with the results of 100 respondents. Data collection was carried out using a questionnaire containing statements related to independent variables (service quality, price, promotion, e-wom and dependent variables (purchase decisions) measured on a likert scale of 1-5. Data analysis is carried out using the Smart PLS 3 application to process statistical data efficiently and accurately. Here's the formula:

From the calculations that have been made, the minimum number of samples required is 100 people. However, to ensure better representation in each university, the total number of samples collected exceeded the minimum figure, bringing the total number of samples collected to 130 people.

Table 1. College Sample

 Source : Data Processed by the Author, 2025.
Yes College Name Number of Students Total Sample
1 University of Muhammadiyah Purwokerto 14.120 $ \frac{14.120}{49.069} \times 130 = 37 $
2 Jendral Soedirman University 23.658 $ \frac{23.658}{49.069} \times 130 = 63 $
3 Saifudin Zuhri State Islamic University Purwokerto 11.291 $ \frac{11.291}{49.069} \times 130 = 30 $

Table 2. Research indicators
Variable Indicators
Quality of ServiceSuyono et al., al (2022) 1. Reliability2. Responsiveness3. Jamminan (Insurance)4. Physical Evidence (Tangible)
PricePatria Negara et al., (2023) 1. Price affordability2. Price conformity with product quality3. Price competitiveness4. Price compatibility with product benefits
PromotionRina Budiartia & Tika Nirmala Sari, (2023) 1. Advertising2. Sales promotion3. Personal selling4. Public relations5. Direct marketing
Electronic Word Of Mouth 1. Intensity2. Positive valenc3. Negative valence4. Content
Purchase DecisionDian Agustiningrum, Anik Lestari Andjarwati, (2021) 1. Information Quality2. Benefit3. Value
RESULTS AND DISCUSSION

This table explains the characteristics of respondents based on gender and monthly allowance. This data aims to provide a more detailed picture of the profile of respondents in the study.

Table 3. Respondent Characteristics

 <italic>Source : Data Processed by the Author, 2025.</italic>
Gender Number (People) Percentage (%)
Male -Male 74 57%
Woman 56 43%
Total 130 100%
Allowance
500.000 - 1.000.000 49 37%
1.000.000 -1.500.000 38 30%
1.500.000 -2.000.000 28 21%
>2,000,000 15 12%
Total 130 100%

Based on Table 3, the majority of respondents in this study are male, totaling 74 individuals (57%), while female respondents account for 56 individuals (43%), indicating a male-dominated sample. In terms of monthly allowance, most respondents fall within the range of Rp500,000 – Rp1,000,000, totaling 49 individuals (37%), followed by those receiving Rp1,000,000 – Rp1,500,000 with 38 individuals (30%), Rp1,500,000 – Rp2,000,000 with 28 individuals (21%), and only 15 respondents (12%) have a monthly allowance of more than Rp2,000,000. These findings suggest that the majority of respondents have a lower to middle financial capacity, which may influence their consumption behavior and preferences in using e-commerce applications.

 Results of Outer Model Analysis of SEM-PLS

Before testing the relationships between variables in the inner model structural model, testing was carried out on the outer model measurement model. The purpose of the outer model test is to find out the extent to which the indicator is able to show the construct or latent variable being measured.

 Figure 4. Testing Outer Model 1

The results of this model can be analyzed using the "Outer Model and Inner Model. The outer model is used to test the reliability and validity of the construct used by eliminating X1.7, X2.1, X2.6, X4.1, X4.4, Y6 because it has an outer model value below 0.7. Namely, to ensure that the indicators used really represent the constructs that are researched accurately and consistently, the 2nd round is carried out.

 Figure 5. Outer Model 2 Testing

From the image above, it can be concluded that the results of the Outer Model test have a value of > 0.7, so the calculation has met the requirements (Ghazali & Latan, 2015). With an Outer Model value of > 0.7, it explains that in each indicator in this questionnaire or instrument there is a fairly strong relationship with latent variables. So it can be concluded that this research indicator has met the requirements, then further testing can be carried out.

Table 4. Construct Reliability and Validity

 <italic>Source : Smart PLS 3</italic>
Variable Cronbach's Alpha Rho_A Composite Reliability Average Variance Extracted (AVE)
(X1) Quality of Service 0.905 0.910 0.922 0.568
(X2) Price 0.869 0.873 0.901 0.603
(X3) Promotion 0.925 0.927 0.937 0.596
(X4) Electronic Word Of Mouth 0.891 0.896 0.917 0.647
(Y) Purchase Decision 0.859 0.867 0.895 0.568

Table 4 above shows the results of the convergent reliability and validity tests for each variable in the model. The Average Variance Extracted (AVE) value of all variables is above 0.5, which means that all indicators in each variable are able to explain more than 50% of the variance construct (Ghozali & Latan, 2015). Thus, the convergent validity is met. In addition, the Composite Reliability and Cronbach's Alpha values of all variables were also above 0.70, indicating that all constructs in this model have good and consistent internal reliability. Thus, it can be concluded that all constructs in this study are valid and reliable.

Table 5. Discriminant Validity (Fronell-Lercker)

 <italic>Source : Smart PLS 3</italic>
Variable Quality of Service (X1) Price (X2) Promotions (X3) E-WOM (X4) Purchase Decision (Y)
Quality of Service 0.754
Price 0.693 0.777
Promotion 0.669 0.766 0.772
Electronic Word Of Mouth 0.676 0.700 0.752 0.804
Purchase Decision 0.683 0.699 0.744 0.763 0.754

Table 5 above shows that the research model used is discriminatically valid, as shown by the Fornell-Lackers discriminant test test. The Fornell- Larckers value for the e-WOM variable showed a higher correlation with the other variable (Ghozali & Latan, 2015). Furthermore, for variables such as quality of service, price and promotion, Fornell-Larckers values show a higher correlation than correlation with other variables. Thus, the conclusion can be made that the measurement of the validity of discrimination has been met.

Table 6. R-Square Value

 <italic>Source : Smart PLS 3</italic>
R Square R Square Adjusted
Purchase Decision (Y) 0,676 0,666

According to table 6 above, the square adjusted value indicates the degree of influence of the independent variable on the dependent variable. The results of the R Square test, which showed an Adjusted R Square value of 0.676, indicated a relationship between independent and dependent variables. In conclusion, the variables studied in this study contributed 66.6 percent to the results, while 33.4 percent of the results were influenced by other variables that were not included in this study. (Ghozali & Latan, 2015).

Table 7. F-Square

 <italic>Source : Smart PLS 3</italic>
Variable Quality of Service (X1) Price (X2) Promotions (X3) E-WOM (X4) Purchase Decision (Y)
Quality of Service (X1) 0.044
Price (X2) 0.020
Promotions (X3) 0.064
Electronic Word Of Mouth (X4) 0.146
Purchase Decision (Y)

According to table 7 above by using F-Square, we can evaluate how much influence independent variables have on dependent variables after considering other independent variables in the model. Ghozali & Latan (2015) explained that k values of 0.02 indicate a small influence, k 0.15 indicates a moderate influence, and k 0.35 indicates a large influence. In this case, the effect of service quality on purchase decisions was recorded at 0.044. Meanwhile, price is considered to have a small influence on a purchase decision with a value of 0.020, and promotions have a value of 0.064. On the other hand, e-WOM is considered to have a moderate influence on purchase decisions with a value of 0.146.

Table 8. Hypothesis Test

 <italic>Source : Smart PLS 3</italic>
Hypothesis Original Sample (O) T-Statistics P values Information
(H1) Quality of Service > Purchase Decision (Y) 0.180 1.763 0.079 Rejected
(H2) Price > Purchase Decision (Y) 0.127 1.301 0.194 Rejected
(H3) Promotion > Purchase Decision (Y) 0.257 2.061 0.040 Accepted
(H4) Electronic Word Of Mouth > Purchase Decision (Y) 0.359 2.886 0.004 Accepted

From the results of table 8 above, it can be explained as follows:

First Hypothesis (H1)

The original value of the sample at (H1) of 0.180 indicates a positive direction and the p-value at (H1) above 0.05, namely (0.079 > 0.05) means that Ha

is rejected. So it can be concluded that the quality of service does not affect the purchase decision.

Second Hypothesis (H2)

The original value of the sample at (H2) of 0.127 indicates a positive direction and the p-value at (H2) above 0.05, namely (0.194 > 0.05) means that Ha is rejected. So it can be concluded that price has no effect on the purchase decision.

Third Hypothesis (H3)

The original value of the sample at (H3) of 0.257 indicates a positive direction and the p-value at (H3) is below 0.05, namely (0.040 < 0.05), which means that Ha is accepted. So it can be concluded that promotions affect the purchase decision.

Fourth Hypothesis (H4)

The original value of the sample at (H4) of 0.359 indicates a positive direction and the p-value at (H4) is below 0.05, which is (0.004 < 0.05) which means that Ha is accepted. So it can be concluded that electronic word of mouth affects purchase decisions.

 DISCUSSION

The findings show that the quality of service has no effect on the purchase decision. Respondents agreed that the statement that the appearance of the Shopee application is easy to understand and visually appealing because the display on Shopee is easy for everyone to use. They did not agree with the product statement I received according to the description of the picture because some respondents did not receive the goods according to their wishes. With the above statement, shopee must further improve the quality of service so that the company gets good reviews from consumers who use the shopee application. According to the cognitive theory of Peter & Olson (2018), purchasing decisions involve complex mental processes, and if the quality of service does not provide a different experience, then this aspect is less likely to be a major consideration. These results are in line with the findings of Rosdiana, (2023), Widjaja, (2023), and Kusumaningrum et al., (2022) who stated that service quality does not have a significant effect on purchase decisions, but contradicts the research of Alfarizi, (2021), Alimansyah et al., (2022), and Indrasena, (2022) which found a significant influence.

The findings show that price has no effect on the purchase decision. Respondents agree with the statement that Shopee offers cheaper prices than offline stores because some prices on Shopee have prices that vary from expensive to cheap, but disagree with the statement that Shopee prices are affordable for students because the prices of products on Shopee vary and not all of them are cheap. With the above statement, Shopee must adjust prices and create a special discount program so that consumers can get the best price. Based on the cognitive theory of Peter & Olson (2018), when consumers already have a strong judgment of the product, price becomes a secondary consideration. These results are in line with the research of Mulyana, (2021), Nuraini, (2022), and

Ramadhan, (2023), but contradict the findings of Rahmadanni et al., (2021), Iman

et al., (2022), and Wicaksono, (2020) who found a significant influence.

Findings show that promotions have proven to have a significant positive effect on purchasing decisions. Respondents agree with the statement that Shopee's marketing messages are in accordance with their interests and needs because Shopee displays ads according to the last search history on consumers, but disagrees with the statement that Shopee's advertising is less attractive and informative because the ads are too focused on promotions and not to educate about product information. With the statement above, Shopee is good at promotion and knows what consumers need, but it needs to be improved again for advertising that focuses on products. According to the theory of Peter & Olson (2018), promotion acts as an information stimulus that shapes consumer

perception and interest. These findings are in line with Iman et al., (2022), Alfarizi, (2021), and Rahmadanni et al., (2021), but not in line with Andriani, (2023), Sipakoly, (2022), and Indah et al., (2021) who found no significant effect.

The findings show that e-WOM has been proven to have a significant positive effect on purchase decisions. The respondent agrees with the statement that negative reviews on Shopee affect the purchase decision because consumers before buying goods will definitely look at reviews to find out the quality of the product, but disagree with the statement that I often access information from social networks because not all consumers are active in using social networks to buy products online. This reflects the marketing strategy used by Shopee to successfully utilize e-WOM. According to Peter & Olson (2018), consumers actively seek and evaluate information before buying. These findings are in line with Dewi et al., (2022), Arif, (2021), and Handayani, (2023), but contradict Sastri,

(2023), Rahmawati et al., (2023), and Purba, (2022) who found no significant

influence.

 CONCLUSION

The results show that the quality of service has a positive but not significant effect on the purchase decision, although the quality of service tends to be good, it is not strong enough to influence the purchase decision. Price has a positive but insignificant influence on purchasing decisions, this shows that price is not a major consideration for consumers in making purchase decisions. Promotions have a significant positive effect on purchasing decisions, the strategy carried out by Shopee is very good and relevant to consumer interests. Electronic word of mouth has a significant positive effect on purchasing decisions, user reviews, and information from social media plays an important role in convincing consumers before making a purchase decision. Overall, it has been proven that the promotional and e-WOM factors are the most important in influencing customers' purchase decisions on the Shopee platform. Therefore, companies should improve their promotional strategies and encourage customers to actively participate in providing positive reviews to maintain an edge in the e-commerce market.

 ADVANCED RESEARCH

This study has several limitations, including the relatively small number of respondents (130 people) so that the results cannot be generalized widely, the absence of variations in respondents' income that are taken into account, and the limited variables used, namely only Service Quality, Price, Promotion, and Electronic Word of Mouth. Therefore, it is recommended that further research involve a larger sample count and include respondents from different regions to expand the scope of the data, as well as develop research instruments to be more accurate and credible, while also considering other factors that may influence purchasing decisions.

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