The Effect of Price and Service Quality on Purchase Decisions on Social Commerce Tiktok Shop (Study on the People of Lhokseumawe City)

Abstract

The phenomenon that occurs shows that most residents of Lhokseumawe City prefer online shopping through TikTok Shop social commerce compared to other online shopping platforms. This statement is reinforced by the results of the pre-survey, the results of which are that many of them decided to buy from the TikTok Shop social commerce, and for many people, the price offered and the quality of service provided are the reasons they buy at the TikTok Shop social commerce. This study aims to see how the effect of price and service quality on purchasing decisions on social commerce TikTok shop Community in Lhokseumawe. This study uses descriptive quantitative research methods using non probability sampling and obtained 100 respondents as a research sample obtained from the lameshow formula. The data analysis method used in this research is multiple linear regression analysis, instrument test, classical assumption test and hypothesis testing and the coefficient of determination with the help of the SPSS 26.0 software program. The results showed that partially the price and service quality variables had a positive and significant effect on purchasing decisions. With a sig.value for the price variable of (0.000 <0.05) and the service quality variable of (0.010 <0.05). Meanwhile, simultaneously price and service quality have a significant effect on purchasing decisions with a significance value of (0.000 <0.05).