Journal of Business and Management Inaba (JBMI) E-ISSN 2829-5331. P-ISSN 2829-6559 VOLUME 01. NO. 02 December 2022 THE EFFECT OF PRICE DISCOUNT AND ELECTRONIC WORD OF MOUTH ON IMPULSE BUYING AT MARKETPLACE SHOPEE (Study on Students of Universitas Indonesia Membangun Bandun. Widyastuti Nurmalia Utami1. Trysna Aditiya Juanda2 Universitas Indonesia Membangun (INABA). Kota Bandung. Jawa Barat. Indonesia E-mail: 1widyastuti. nurmalia@inaba. id , 2trysnaj97@gmail. ABSTRACT The purpose of this study was to determine the effect of Price Discount and Electronic Word of Mouth on Impulse Buying in the Shopee Marketplace. The research method used is a quantitative research method with a descriptive and verification approach. The type of data used is primary data and secondary data with data collection using questionnaires and search data through library research and online research. Sampling technique using Non-Probability Sampling with Purposive Sampling method with the number of respondents as many as 80 respondents. Prerequisite testing includes validity test, reliability test, descriptive analysis, verification analysis and hypothesis testing. The results showed that Price Discounts were in the sufficient category with a score of 1290 and Electronic Word of Mouth was classified in the sufficient category with a score of 1693. Price Discounts had a positive and significant effect on Impulse Purchases, this statement was evidenced by the value of tcount > ttable . ,441 > 1,. and value Sig. 001 < 0. Electronic Word of Mouth has a positive and significant effect on Impulse Buying, this is evidenced by the value of tcount > ttable . 017 > 1. and the value of Sig. 020 < 0. Price Discount and Electronic Word of Mouth have a simultaneous effect on Impulse Buying, based on the results of simultaneous hypothesis testing (F tes. , obtained Fcount > Ftable . ,994 > 3. and the value of Sig. 003 < 0. Keywords: Price Discount. Electronic Word of Mouth. Impulse Buying Journal of Business and Management Inaba (JBMI) E-ISSN 2829-5331. P-ISSN 2829-6559 VOLUME 01. NO. 02 December 2022 Introduction Along with the era of globalization that is happening throughout the world, it is currently making various developments in all aspects, one of which is the development in terms of communication technology and of course Indonesia is experiencing the same thing. This can make it easier for people to search for information via the internet. This happens because the development of internet users is very rapid. Figure 2. Internet users by Province Source: Indonesian Internet Service Providers Association (APJII, 2. Based on Figure 2 the results of a Figure 1. Perspective of internet users in Indonesia Source: Hootsuite. survey conducted by the Indonesian Internet Service Providers Association Based on Figure 1, the results of a (APJII) for the 2020-quarter II/2020 survey conducted by Hootsuite. period, the number of internet users in . , based on a survey by the Indonesia reached 196, 7 million. This Association of Indonesian Internet Service number increased by 23. 5 million or 8. Providers, it shows the number of compared to 2018. The largest number of internets users in Indonesia in in 2021 internet users come from the province of amounted to 202. 6 million people . West Java, namely 35. 1 million people. of the population. This means that the That position is followed by Central Java penetration of internet users in Indonesia 5 million people. Then East Java, is always increasing every year from a total population of 274. 9 million people. Journal of Business and Management Inaba (JBMI) E-ISSN 2829-5331. P-ISSN 2829-6559 VOLUME 01. NO. 02 December 2022 One of the businesses that use the . internet is e-commerce. E-commerce is all electronically One type of e-commerce that is currently growing rapidly in Indonesia is the e-commerce type of Figure 3. Overview of internet users in Indonesia Source: Hootsuite. marketplace which is defined as a place where sellers can create accounts and sell various kinds of goods to be sold. Based on Figure 3, the results of a survey on internet user reviews in Indonesia conducted by Hootsuite. , shows that the percentage of internet users accessing the internet using smartphone devices is as high as 96. which means that almost all internet users Figure 4. E-commerce activities in Indonesia Source: Hootsuite. access the internet using smartphone Furthermore, the average time used to access the internet aged 16 to 64 Based on Figure 4, the results of a years is 8 hours 52 minutes, which means survey on e-commerce activities in that the time used by internet users to Indonesia conducted by Hootsuite. access the internet is very high. , it is known that the activity of The current development of the using e-commerce in Indonesia is very internet is not only as a medium of high, reaching 93% of total internet users information and communication, but the in Indonesia search for products and internet is able to fulfill people's desires in services via the internet and 87. 3% of them visit online retail stores and 78. shopping which is rife among modern buy products online, then 87. 1% buy society ranging from teenagers to old products online using any device and the Journal of Business and Management Inaba (JBMI) E-ISSN 2829-5331. P-ISSN 2829-6559 VOLUME 01. NO. 02 December 2022 1% buy online products using magnitude of 63. 6% and consumers who mobile devices. The data shows the high still shop offline with a magnitude of e-commerce influences the formation of people's Significant changes in consumer shopping behavior in Indonesia. behavior have made retail traders change The growth of the e-commerce their way of selling in order to enter industry is currently increasing rapidly markets that are increasingly modern and closer to consumers. Initially, retail Indonesia. Most people in Indonesia are traders entered the market by selling conventionally because consumers were compared to conventional stores. This more interested in buying products or provides an opportunity for interested goods directly, but over time, consumer retailers to market their products online behavior has begun to change, where through e-commerce. This is supported by consumers prefer to shop online rather a pre-survey conducted by the author, than conventionally. This is used by retail which is presented in full in Figure 5. traders who have changed their way of selling to online, now there are many retail e-commerce platforms in marketing their products, this is shown by the inclusion of various types of e-commerce in Indonesia such as Tokopedia. Figure 5. Comparison of online and offline shopping Source: Pre-survey . rocessed by Shopee. Blibli. Com. Bukalapak. Lazada. JD. ID. Bhinneka. Elevenia. Zalora, and so on. researchers, 2. Based on Figure 5, pre-survey results processed by researchers . It is known that the results of the survey show that most consumers prefer to shop online rather than shop offline, this is shown by Figure 6. Marketplace used for online Source: Pre-survey . rocessed by the size of the presentation where consumers prefer to shop online with a researchers, 2. Journal of Business and Management Inaba (JBMI) E-ISSN 2829-5331. P-ISSN 2829-6559 VOLUME 01. NO. 02 December 2022 Based on Figure 6, pre-survey results marketplace users, the full details are processed by researchers . It is presented in Figure 7. known that the survey results show 6 . marketplaces that are often used by consumers to shop online, the first position is occupied by the Shopee marketplace, namely 88. 7%, the second position is occupied by the Tokopedia Figure 7. Unplanned purchases on the Shopee marketplace Source: Pre-survey . rocessed by marketplace, namely 5. 7%, the third position is occupied by the Lazada researchers, 2. marketplace, namely 3 . 8%, the fourth Based on Figure 7, processed pre- position is occupied by the Blibli survey results by researchers . It is marketplace namely 0. 9%, the fifth known that the survey results show position is occupied by the Zalora consumer judgments about unplanned marketplace namely 0. 9% and the sixth purchases at the Shopee marketplace, 20% position is occupied by the Bukalapak marketplace namely 0%. Shopping disagree, 25% of respondents disagreed, 30% of respondents disagreed, 10% of important part of everyday life whose respondents agreed and the other 15% purchases are sometimes planned and strongly agreed. This indicates that there sometimes unplanned. Unplanned buying are still many consumers who make behavior or impulse buying is something purchases by planning beforehand. that is of interest to producers, because it is a very large market share in the modern Based on observations found problems with impulse buying, namely spontaneity where there is no desire for consumers to buy suddenly when opening Figure 8. Reasons for buying products on the Shopee marketplace Source: Pre-survey . rocessed by the Shopee marketplace. This is also supported by the results of the pre-survey researchers, 2. distribution to 30 respondents to Shopee Journal of Business and Management Inaba (JBMI) E-ISSN 2829-5331. P-ISSN 2829-6559 VOLUME 01. NO. 02 December 2022 Based on Figure 8, pre-survey results Electronic word of mouth is any positive processed by researchers . It is or negative statement made by a customer known that the survey results show the about a product or company that is reason consumers buy products on the available to many people and institutions Shopee marketplace because it suits their via the internet where electronic word of needs, namely 36%, because the price is mouth communication plays an important low, namely 27%, because there is an role in shaping and influencing the attractive discount, which is 14%, because attitudes of internet users. Electronic word they are interested in good reviews, of mouth which includes product ratings namely 14% and finally due to curiosity and good reviews can influence the about the product, namely 9%. Unplanned buying decisions (Impulse consumers without thinking twice. Buyin. can arise because customers are interested in the goods (Karamang, 2018. Method of Implementation 2. , they are going to buy plus attractive 1 Research Methods offers given such as promotions that are The research method used in this deemed suitable, such as price discounts. research is to use quantitative research Price discount is a price-based sales methods, the approach used by the author promotion strategy, when customers are is the descriptive method and the offered the same product at a reduced verification method, because this research price this will attract consumers to make seeks to describe and interpret the purchases due to price discounts applied influence between the variables to be by one of them by Shopee in monthly examined and their relationship to present promo programs such as Evic Sale 12. Flash Sale. Midnight Sale. Fashion Sale, description of the facts of the relationship Live Streaming Shopee and so on. between the variables studied. The information contained in product descriptions is very limited, therefore 2 Operational Variables additional information is needed, such as consumer reviews in the Operational variables are needed to determine the type, indicators, and scale of the variables involved in the study. So, in Journal of Business and Management Inaba (JBMI) E-ISSN 2829-5331. P-ISSN 2829-6559 VOLUME 01. NO. 02 December 2022 this study includes 3 . variables Primary data is data that is collected which will be explained as follows: Price Discount respondents using a questionnaire. Independent The primary data in this study were independent variable, a variable that obtained by distributing influences or becomes the cause of its change or the emergence of the Marketplace users at students of dependent . variable, denoted Universitas Indonesia Membangun X1. Bandung. Electronic Word of Mouth Independent Variable Shopee Secondary Data Secondary Data is data that is already independent variable, a variable that available and related to problems that influences or becomes the cause of its have been identified, as a support for change or the emergence of the primary data, this data can be obtained from data that is already . given the notation X2. available on the Shopee Marketplace Impulse Buying in the form of documents or reports The dependent variable is often called that are useful for supporting this the dependent variable, which is the result of the independent variable, denoted Y. 5 Data Collection Techniques The techniques used in collecting data 3 Types of Data that are relevant to the problems of this The type of data used in this research research are field research and library According Sugiyono . 7: . quantitative data is "Research data in the form of numbers and 6 Sampling Technique analysis using statistics. Ay The sampling technique used in this study was non-probability sampling with 4 Data Sources purposive sampling method. According to The data used in this study consists of: Sugiyono Primary Data . purposive sampling as follows "purposive Journal of Business and Management Inaba (JBMI) E-ISSN 2829-5331. P-ISSN 2829-6559 VOLUME 01. NO. 02 December 2022 sampling, which is a sampling technique analysis consists of analysis of the partial with certain considerations". The sample To test the hypothesis, it is carried out in two stages, namely the t test Undergraduate (S. Universitas Indonesia Membangun and F test. (INABA). Management and Accounting Study Program 2020/2021 Result and Discussion Academic Year. To determine the sample 1 Validity Test Table 1 Results of Validity Test Analysis size, the authors used the Slovin formula as follows: n = 1 380 . 2 n = 79,166 80 7 Research Instrument Data collection tool in the form of a questionnaire, before being used as research data must first go through a testing process and meet requirements of the research instrument, namely validity testing and reliability Source: Primary data is processed in 2022 8 Data Analysis Techniques and Based on the SPSS output results in Hypothesis Testing table 1, it can be seen that all of the Price The method used in this study is a Discount and Electronic Word of Mouth quantitative method, with a descriptive variable indicators to Impulse Buying has The a value of rcount > rtable . , so that verification method consists of a classic it can be said that all variable indicators assumption test which consists of tests for are valid to be used as instruments in research or statements submitted can be Multiple regression used to measure the variables studied. Journal of Business and Management Inaba (JBMI) E-ISSN 2829-5331. P-ISSN 2829-6559 VOLUME 01. NO. 02 December 2022 2 Reliability Test Table 2 Results of Reliability Test Analysis In this study, the verification analysis intends to determine the results of the test/analysis of the effect of Price Discounts and Electronic Word of Mouth on Impulse Buying. Source: Primary data is processed in 2022 Based on Table 2, it can be seen that 5 Classical Assumption Test the Cronbach's Alpha results for the Classical Impulse Buying variable are 0. 778, the Price Discount variable is 0. 752, the statistical requirement that must be met to Electronic Word of Mouth variable is provide certainty that the regression Cronbach's Alpha value of all variables is more than 0. 60, it can be estimation, is not biased and is consistent. concluded that the research instrument is 3 Descriptive Analysis This research was conducted by respondents with 21 questions to be analyzed descriptively to find out the description of the three research variables, namely impulse buying, price discounts Figure 9. Normal Graph PP Plot Source: Primary data is processed in 2022 and electronic word of mouth. The In figure 9. Graph Normal Probability descriptive analysis of the three variables Plot (P-Plo. , the model fulfills the assumption of normality, that is, if the points on the curve coincide following the 4 Verification Test diagonal line leading to the upper right Verification analysis is an analysis of corner, then the result of the curve models and evidence that is useful for normally distributed. Journal of Business and Management Inaba (JBMI) E-ISSN 2829-5331. P-ISSN 2829-6559 VOLUME 01. NO. 02 December 2022 Table 3 Output Results of Normality Test 7 Multicollinearity Test Calculations Table 4 Output Results of Multicollinearity Test Calculations Source: Primary data is processed in 2022 Source: Primary data is processed in 2022 Based on the "Coefficients" output Based on table 3, it is known that the table in the "Collinearity Statistics" Asymp. Sig . -taile. value of 0. 200 is section, it is known that the Tolerance greater than 0. This value indicates that value for Price Discount (X. and the data is normally distributed. Electronic Word of Mouth (X. Meanwhile, the VIF value for the 6 Heteroscedasticity Test Price Discount (X. and Electronic Word of Mouth (X. variables is 1. 014 <10. So, referring to the basis of decision making in the multicollinearity test it can be concluded that there are no symptoms of multicollinearity in the regression model. Figure 10. Scatterplot Graph Source: Primary data is processed in 2022 8 Multiple Linear Regression Analysis In fulfilling the assumptions or Table 5 Output Results of Multiple Linear requirements that heteroscedasticity does Regression Analysis not occur, plots . may not form a certain pattern which is actually grooved, such as wavy or widens and then narrows. Figure 10 shows that there is no specific pattern, such as the dots that form a regular Source: Primary data is processed in 2022 pattern . avy, widens then narrow. , so Based on Table 5, the multiple linear the model pattern does not indicate regression equation is: Y = 17. 081 (X. 022 (X. Journal of Business and Management Inaba (JBMI) E-ISSN 2829-5331. P-ISSN 2829-6559 VOLUME 01. NO. 02 December 2022 Table 6 Correlation Coefficient strong The regression equation above can be relationship between Price Discount and Impulse described as follows: Buying The constant value is positive at 704 indicating that there is no Price Discount (X. and Electronic Word of Mouth variable (X. , then Impulse Buying (Y) is a constant value of 17. 704 units. Price Discount coefficient (X. Source: Primary data is processed in 2022 is positive, indicating that the Price Based on the results of this test: Discount variable (X. has a positive There is a positive relationship influence on Impulse Buying (Y), between Price Discount and Impulse which means that for every one unit Price Buying, meaning that if the Price Discount Discount increases. Impulse Buying variable (X. , the Price Discount will will also increase, and vice versa. affect Impulse Buying by 0. The correlation between Electronic assuming that other variables are not Word of Mouth and Impulse Buying examined in this study. has a value of 0. 802, which means The coefficient value of Electronic there is a very strong correlation Word of Mouth (X. 022 is between Electronic Word of Mouth positive, indicating that the Electronic and Impulse Buying. Based on the Word of Mouth (X. variable has a results of this test, there is a positive positive influence on Impulse Buying relationship between Electronic Word (Y), which means that every increase of Mouth and Impulse Buying, of one unit of Electronic Word of meaning that if Electronic Word of Mouth (X. variable, then Electronic Mouth increases. Impulse Buying Word of Mouth will affect Impulse will also increase, and vice versa. Buying by 0. 022, assuming that other variables are not examined in this 9 Correlation Coefficient Analysis Journal of Business and Management Inaba (JBMI) E-ISSN 2829-5331. P-ISSN 2829-6559 VOLUME 01. NO. 02 December 2022 10 Multiple Correlation Analysis (R) Table 9 Analysis Results of the Determination Table 7 Results of Multiple Correlation Analysis Coefficient X2 to Y Source: Primary data is processed in 2022 Source: Primary data is processed in 2022 Based on table 7 above, the result of Based on Table 9, the coefficient of determination (R Squar. 780, which coefficient (R) is 0. This shows the means that Electronic Word Of Mouth has closeness of the relationship between the an influence on Impulse Buying of 78. variables Price Discount (X. Electronic While the remaining 22. 0% is influenced Word of Mouth (X. , and Impulse Buying by other factors outside this research (Y) including moderate criteria which are in the interval 0. 40 - 0. Table 10 Results of Analysis of the Coefficients of Determination X1 and X2 for Y 11 Analysis of the Coefficient of Determination Table 8 Results of the Analysis of the Coefficient of Determination X1 to Y Source: Primary data is processed in 2022 Based on Table 10, the coefficient of determination (R Squar. 653, which Source: Primary data is processed in 2022 means that changes in Impulse Buying are Based on Table 8, the coefficient of determination (R Squar. 625, which Price Discounts Electronic Word of Mouth by 65. This means that Price Discounts have an shows that there are still other factors that influence on Impulse Buying of 62. can increase Impulse Buying at Shopee While the remaining 37. 5% is influenced besides the Price Discount and Electronic by other factors outside this research Word of Mouth variables, namely 34. Journal of Business and Management Inaba (JBMI) E-ISSN 2829-5331. P-ISSN 2829-6559 VOLUME 01. NO. 02 December 2022 12 Partial Test . t table = 1. Table 11 Partial Hypothesis . 13 Simultaneous Testing (Test F) Table 12 Simultaneous Testing (Test F) Source: Primary data is processed in 2022 Source: Primary data is processed in 2022 The values in table 11 can be Based on table 12 above shows interpreted that: information that the value of yaEaycnycycycuyci The calculated t value of the Discount obtained is 7. This value will be Price variable is 2. Because the t compared with the value of yaycycaycayceyco in the count value is 2. 411 > t table is 1. F distribution table with = 0. 05, yccyce1 = 2 and the Sig. 001 yaycycaycayceyco . of Price Discount on Impulse Buying. accordance with the criteria for testing the The t value of the Electronic Word of hypothesis that Ho is rejected and H3 is Mouth variable is 3. Because the accepted, it means that Price Discount and t count value is 3. 017> t table is 1. Electronic Word of Mouth together and the value of Sig. have a significant effect probability of 0. 05, it can be on Impulse Buying. concluded that H2 is accepted, and Conclusion Ho is rejected. This means that there Based on the results of the research is a significant influence of Electronic and discussion regarding the effect of Word of Mouth on Impulse Buying. Price Discounts and Electronic Word of The formula for finding the value of t Mouth on Impulse Buying at Shopee, it can be concluded as follows: t table = (/2 . The Impulse Buying variable is t table = . 05/2 . 80-2-. considered sufficient t table = . by Shopee Journal of Business and Management Inaba (JBMI) E-ISSN 2829-5331. P-ISSN 2829-6559 VOLUME 01. NO. 02 December 2022 respondents, as measured through Word of Mouth which consists of two dimensions, namely cognitive reviews, comments, content, reviews and emotional. This indicates that the on the products offered by Shopee. respondent has not done a very large This shows that the Electronic Word Impulse Buying of the products of Mouth of the products offered by offered by Shopee. This shows that Shopee is quite in accordance with the Impulse Buying from the products wishes of the respondents. offered by Shopee is quite in The Price accordance with the wishes of the Discount (X. and Impulse Buying (Y) has a very strong and one-way The Price Discount variable was considered sufficient This can be seen from by Shopee the partial hypothesis testing which respondents, as measured by five states that Price Discount (X. has a dimensions, namely cash discounts, partial effect of 62. 5% on Impulse Buying (Y) at Shopee which is discounts, seasonal discounts and This statistically accepted. The relationship between Electronic respondents have not experienced a Word of Mouth (X. and Impulse very large Price Discount from the Buying (Y) has a very strong and one- products offered by Shopee. This way relationship. This can be seen shows that the Price Discount of the from the partial hypothesis testing products offered by Shopee is quite in which states that Electronic Word Of accordance with the wishes of the Mouth (X. has a partial effect of 0% on Impulse Buying (Y) at The Electronic Word of Mouth Shopee variable was considered adequate by Shopee The Price measured through three dimensions. Discount (X. Electronic Word of namely intensity, valance of opinion Mouth (X. and Impulse Buying (Y) and content. This indicates that where the two variables have a very respondents have not fully felt the strong and one-way relationship enormous influence of Electronic The Journal of Business and Management Inaba (JBMI) E-ISSN 2829-5331. P-ISSN 2829-6559 VOLUME 01. NO. 02 December 2022 bahasakan oleh Dwi Kartika Yahya. Jakarta : Erlangga. stated that Price Discount (X. and Riduwan. Belajar Mudah Penelitian: Untuk Guru-Karyawan dan Peneliti Pemula. Bandung: Alfabeta. Electronic Word of Mouth (X. simultaneously had a 65. 3% effect on Impulse Buying (Y) on Shopee products, statistically accepted. Sudaryono. Manajemen Pemasaran Teori dan Implementasi. Yogyakarta: Andi Offset. REFERENCES