The Impact of Social Media on Online Shopping Behavior of Gen Z
Consumers In Time of Covid-19 Pandemic; The Moderating Role of
Celebrity Endorsements
GUSTI NOORLITARIA ACHMAD1,a, FITRIANSYAH FITRIANSYAH2,b,
DADANG LESMANA3,c, RIZKY YUDARUDDIN1,d
1Department of Management, Mulawarman University,
Samarinda,
INDONESIA
2Department of Management, Muhammadiyah University of East Kalimantan,
Samarinda,
INDONESIA
3BRIDA of East Kutai
East Kutai Regional Research and Innovation Agency,
East Kutai,
INDONESIA
aORCID iD: https://orcid.org/0000-0003-4772-907X
bORCID iD: https://orcid.org/0000-0002-5212-1424
cORCID iD: https://orcid.org/0000-0002-6489-0466
dORCID iD: https://orcid.org/0000-0002-0850-9747
Abstract: - The purpose of this study is to examine the impact of social media (live streaming, promotional
tools, and online reviews) and celebrity endorsements on online shopping behaviors. In addition, we investigate
the role of celebrity endorsements as a moderator between social media and online shopping behavior. This
study examines Generation Z in Indonesia with 543 respondents. This investigation employs the Structural
Equal Modeling (SEM) technique. According to the findings of this study, online reviews and celebrity
endorsements have a significant positive impact on online shopping behavior. When we interact with celebrity
endorsements through online reviews, they have a strikingly positive impact on our online shopping behavior.
This indicates that celebrities add a competitive advantage to a brand and that the brand has very good online
reviews that will encourage consumers to buy products online. This study has implications for marketers and e-
commerce, which can encourage consumers to make online purchases during a crisis.
Key-Words: - Online Shopping Behavior, Social Media, Live Streaming, Promotional Tools, Online Reviews,
Celebrity Endorsements, Covid-19.
Received: May 22, 2023. Revised: September 29, 2023. Accepted: November 3, 2023. Available online: December 8, 2023.
1 Introduction
Covid-19 has had a changing impact on people's
consumption behavior. One that has experienced
changes in consumption behavior due to lock-down
policies and social distancing so that people are
looking for alternatives to meet their needs, [1], [2],
[3], [4]. [5], and, [6], stated various factors that
influenced behavior change, but what was
highlighted was the presence of technology, which
had a significant impact during the COVID-19
period. Besides that, COVID-19 is also a condition
that gives system changes to the entire banking
sector, [7], [8], [9], [10], [11], non-financial
companies, [12]. In Indonesia, discussions about
COVID-19 have made economic conditions worse
apart from other crises, [13], [14], [15], [16], [17].
However, online shopping experienced a very sharp
increase during COVID-19; this is because online
shopping is a solution for people to shop without
leaving the house, [18]. In addition, [19] found that
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the information and technology sector (e.g., online
learning, remote health, teleconferencing, telework)
experienced a very sharp increase in usage during
the COVID period.
Several studies are interested in discussing online
shopping during the COVID-19 period, [19], [20],
[21], [22], [23], [24], [25], [26], [27], [28], [29].
According to, [20] found that ease of access,
perceived benefits, trust, positive emotions,
subjective norms, attitudes, and social influence are
important factors influencing online shopping
behavior. Then, [30], stated that COVID-19 had a
significant impact on changing from traditional
shopping behavior to online shopping behavior.
However, traditional shopping behavior will return
when the Covid-19 pandemic ends.
Recently, several studies have shown that social
media plays an important role in online shopping.
The study, [21], stated that the company's equity
value can increase when companies actively use
social media to interact with their customers. Live
streaming interactions make the communication
distance between companies and customers
disappear, making consumers more comfortable
shopping online, [31]. Likewise, promotional tools
also play an important role in online shopping, [32].
Then, [18] stated that the presence of prominent role
models associated with the brand thus increases
brand equity. Celebrities who use social media to
promote a product encourage consumers to buy the
product. Furthermore, celebrity endorsements also
have an important influence on online shopping
behavior, [18], [33], [34], [35], [36], [37].
According to, [18], celebrity endorsements
positively impact online shopping purchases.
Similarly, [33], stated that celebrities can influence
consumers' online shopping behavior when they
promote a product. Followers tend to make
celebrities follow their lifestyle, [38], [39].
This study aims to analyze the effect of social
media and celebrity endorsements on online
shopping behavior. The study focuses on examining
the relationship between various variables in the
context of Gen Z consumers in time of COVID-19
pandemic in Indonesia. This study found that online
reviews have a significant positive effect on online
shopping behavior. More and more positive reviews
from consumers encourage potential consumers to
try these products, [18], [31], [40]. Then, this study
also found that celebrity endorsements have a
significant positive effect on online shopping
behavior. Celebrities are used as role models
providing added value to brand equity more than
other brands, [18], [35], [38], [41]. Interestingly, we
also found that celebrity endorsement moderated
online reviews and significantly affected online
shopping behavior. The more positive reviews from
consumers that reflect the quality of the product, the
more it is strengthened by celebrity branding which
makes consumers more confident to buy the product
[21], [31], [35].
This research contributes to the literature in
several ways. First, taking Indonesia as a sample,
Indonesia is sensitive to macro shocks, [3], [42],
[43], [44], [45], [46], [47]. Moreover, generation Z
habitually uses technology more frequently,
especially in online shopping, than other
generations, [47]. Second, this study complements
previous studies, [18], [31], [34], which discuss
social media and celebrity endorsements on online
shopping behavior, but they have not explored the
role of celebrity endorsement in moderating social
media on online shopping behavior. Our important
findings represent how online reviews and
celebrities can improve brand quality to attract
potential customers. Third, this research has
important implications for online retailers to
maintain reviews from consumers through good
interactions and improve product quality. In
addition, using a celebrity will further strengthen the
brand formed through online reviews so potential
consumers will buy the product. This is important
for online retailers in facing pandemic challenges,
which is the possibility of shopping behavior
returning to normal, [30].
2 Literature Review
2.1 Online Shopping Behavior
The existence of COVID-19 pandemic has made
quite significant changes, especially the shift from
traditional business to online business. Online
marketing is a solution for entrepreneurs conducting
business with their partners during the Covid-19
pandemic, [47], [48], [49]. The study, [50], stated
that online shopping is increasingly popular for
retailers and customers. Several studies state that
communication tools such as Facebook, Twitter,
Instagram, and Snapchat influence customer ratings,
[51], [52], [53], [54]. Similarly, [18], [53],
documented customer ratings that stated online
satisfaction would influence other consumers to buy
the product. This is used by several business
organizations to promote their business by
increasing the number of their consumers, [55],
[56]. The study, [55], stated that companies target
consumers through online advertising based on the
categories consumers like. Furthermore, [56], stated
that businesspeople carry out online advertising
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promotions to provide information on the products
they sell to increase consumer purchase intentions.
The attractiveness of celebrity figures can influence
the product's image [18]. Recently, [57], stated that
fashion trends, shopping convenience, economic
orientation, and brand value significantly influence
online shopping purchases of fashion products in
Generation Y in Bangladesh. These results indicate
that online businesses need to pay attention to
communication with their potential customers by
adjusting their product and service offerings.
2.2 Live Streaming
The Covid-19 pandemic has not only changed in
terms of habits. Preferences and shopping behavior
of customers. One of them intensified on social
media is e-commerce, [18]. The study, [58], stated
that there was a development of live streaming used
by social traders to increase their company's sales
during the COVID-19 pandemic. Likewise, in
Indonesia, the development of live streaming is
massive and has even become a new tool for
product marketing. In line with, [59], stated that
along with the development of modern times, the
interaction between sellers and customers is very
important. By doing live streaming can confirm
customers to buy their products; consumers tend to
prefer live shows that can ask for details about
products in real-time compared to consumers who
review through pictures and videos. In addition,
sellers can provide direct feedback to influence
purchasing decisions. Furthermore, several studies
state that streaming shopping can provide answers
for consumers who are confused about products,
thereby increasing purchase opportunities, [60],
[61], [62]. The existence of consumer interaction
during product presentations will trigger consumers
to buy products, [59]. Live broadcasting provides
images and sound received in other locations,
thereby increasing its presence. Purchase
commitment influences online shopping, [63], [64],
[65]. The study, [66], also found that streaming
shopping can increase customer capacity by getting
new things and asking related questions. Online
retailers are innovating by providing information
about products via streaming to interact with
consumers in real-time, [31]. The study, [67], stated
that recently consumers have become accustomed to
making purchases online due to the COVID-19
pandemic. Consumers are starting to do product
reviews online frequently; live presentations
encourage motivation to buy. However, [18], found
that live streaming has no significant effect on
online purchasing decisions in Bangladesh. Based
on the description, we hypothesize as follows:
Hypothesis 1 (H1): Live streaming has a significant
positive effect on online shopping behavior.
2.3 Promotional Tools
The rapid development of technology encourages
rapid changes in habits and behavior. Several
studies have shown that online marketing is a form
of new business opportunity that can be
implemented by companies, [18]. Then, [68], stated
that online marketing is also considered more
effective than traditional marketing. Similarly, [51]
stated that advertisers use social media to popularize
their products. The study, [69], found that
promotional prices are used to stimulate consumers
to buy, this is because promotional prices are made
to make consumers not think about whether the
product is needed or not. Furthermore, [70], states
that the millennial generation prefers to shop online
rather than shop in person. Therefore, they use
social media to dig up product information they
want to buy. Online shopping must provide privacy,
protection, and trust to consumers to feel more
comfortable. Then, [32], stated that online
advertisements must contain contextual
advertisements in their marketing media such as
multimedia advertisements, social networks, etc. to
create a brand image. Based on the theory of, [71],
states that online advertising is an advertising
medium that encourages advertising efforts to
develop. Content is the most important thing in
online advertising. The adoption of online shopping
is increasingly pushing entrepreneurs to pay
attention to online advertising tools that influence
their shopping behavior. Then, [18], found that
promotional tools have a significant positive effect
on online shopping behavior in Bangladesh. Based
on the description, we hypothesize as follows:
Hypothesis 2 (H2): Promotional Tools have a
significant positive effect on online shopping
behavior.
2.4 Online Reviews
The development of modern times is growing,
especially the function of social media which is
increasingly being used as a forum for consumers to
determine their intention to buy a product. Usually,
when consumers have the intention to buy a
product, they look for reviews from several people
who have used the product through social media,
[72]. In line with, [73], which shows that social
media is a means for consumers to find in-depth
information about these products. Then, [31], stated
that online reviews are an important factor in
influencing consumer behavior. The increased
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availability of positive online reviews will
encourage consumers to purchase the product.
Social media users are also aware that many online
reviews reflect the behavior of other consumers who
use the product, [74]. Similarly, [75], found that the
availability of online reviews can describe the
quality that drives consumers' motivation to try for
the first time. Many studies have found positive
online reviews that increase sales of this product,
[31], [40], [76], [77], [78], [79]. The existence of
online availability, both in terms of quantity and
positive reviews from other consumers, stimulates
potential customers to try the product. In addition,
[31], stated that online reviews are used by
consumers to answer questions related to product
choices. Recently, [18], found a significant positive
effect on online shopping behavior in Bangladesh.
Based on the description, we hypothesize as
follows:
Hypothesis 3 (H3): Online reviews have a
significant positive effect on online shopping
behavior.
2.5 Celebrity Endorsements
The development of social media such as Facebook,
Snapchat, Twitter, and Instagram is increasingly
being used by various groups. Celebrities have also
started using the platform to promote products to
customers which can influence consumers' online
behavior, [33]. In addition, celebrities also provide
information to customers to use to select consumer
needs for both potential goods and services [34].
The study, [70], [76], stated that celebrities also
have good credibility in promoting products that
will have a positive impact on consumer behavior.
Some celebrities also create their brands to
differentiate them from other brands to make it
easier for consumers to choose the products they
like, [35]. In line with that, [40], stated that any
information provided to celebrities is considered by
their followers as a guarantee of product safety,
thereby influencing online purchases. Similarly,
[36], [80], found that celebrities who share
advertisements on social media will stimulate
potential consumers to buy the product.
Furthermore, [77], [78], stated that celebrities are
used as a competitive advantage in company
advertisements. Then, people make celebrity posts
as their role models, thereby following the celebrity
lifestyle, [37], [38]. Recently, [18], found that
celebrity endorsement had a significant positive
effect on online purchases. Based on the description,
we hypothesize as follows:
Hypothesis 4 (H4): Celebrity endorsements have a
significant positive effect on online shopping
behavior.
2.6 The Role of Celebrity Endorsement in
Mediating the Influence of Social Media
on Online Shopping Behavior
Recently, we noticed a potential relationship
between celebrity endorsements and social media in
influencing online purchases. The study, [21], [41],
stated that social media activity from various media
content will have a positive impact on the
company's equity value. Similarly, [31], stated that
companies that interact in real-time with potential
customers through live streaming or online reviews
will increase interest in the informed product brand.
Promotional tools such as advertisements and social
media will create a brand image, [32]. In addition,
[35], stated that celebrities are often used as lifestyle
models for their followers. The presence of role
models from celebrities associated with brands
thereby increases brand equity. Celebrities who use
social media to promote a product will stimulate
consumers to buy the product, [18]. Based on the
description, we hypothesize as follows:
Hypothesis 5 (H5): Celebrity endorsement
moderates live streaming of online shopping
behavior.
Hypothesis 6 (H6): Celebrity endorsement
moderates promotional tools on online shopping
behavior.
Hypothesis 7 (H7): Celebrity Endorsement
moderates online reviews of online shopping
behavior.
3 Method
The study focuses on examining the relationship
between various variables in the context of Gen Z
consumers in time of COVID-19 pandemic in
Indonesia. The research framework of this study is
presented in Figure 1. The key independent
variables being studied include social media
activities such as Live Streaming (LIV),
promotional tools (PRT), and online reviews (OLR),
while the dependent variable is online shopping
behavior (OSB). Additionally, the study
incorporates celebrity endorsements (CEN) as
moderator variables. These variables were evaluated
using scales developed by previous researchers
based on existing literature, with necessary
adjustments to fit the specific context of Gen Z
consumers in Indonesia.
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To assess the Online Shopping Behavior (OSB)
variable, the study adapted questionnaire items from
instruments created by various researchers,
including references from, [18], [79], [81], [82]. For
the Live Streaming (LIV), promotional tools (PRT),
and online reviews (OLR) variables, a four-item
scale designed by researchers, [18], [83], [84], was
employed. Each variable was measured using a 5-
point Likert scale, ranging from strongly disagree to
strongly agree, as illustrated in Table 1.
Fig. 1: Conceptual Framework
This study's participants were all Indonesian Gen
Z consumers. Purposive sampling is used in this
study, and participants should be familiar with
social media and online shopping. There were 543
people in the sample group. A survey was created
and distributed to Gen Z consumers in Indonesia
from July to December 2021 to collect data for the
study. Preliminary processing was carried out to
ensure that respondent entries were accurate and
sufficient. The survey was divided into two parts
and distributed via Google Forms. The first section
gathered profile data such as gender, age, education
level, employment status, online shopper since, and
frequency of online shopping. The values of all the
variables under investigation were included in the
second section.
The data were assessed utilizing a variance-based
analytical approach known as Structure Equation
Modeling (SEM), more especially employing Partial
Least Squares (PLS). The Partial Least Squares
(PLS) method is a robust analytical tool that
circumvents limitations by minimizing the need for
several assumptions in both the evaluation and
theoretical framework, [85]. The data were
subjected to analysis utilizing both the outer and
inner models. The initial external model assesses the
variables of reliability and validity. The evaluation
of this model encompasses many criteria, such as
convergent and discriminant validity, with
composite reliability. Subsequently, the inner or
structural approach is employed to examine the
interplay of the study's theoretical framework, its
significance, and the R-square coefficient.
Table 1. Measurement items
Variables
Item
Ref.
Online
Shopping
Behavior
(OSB)
I tend to buy products online rather
than in physical stores (OSB1)
[18], [79],
[81], [82]
I feel confident with the payment and
security system when making online
purchases (OSB2)
I feel comfortable shopping online and
will do it again in the future (OSB3)
I find it easy to find the products I am
looking for when shopping online
(OSB4)
I prefer to shop online because there
are more product options (OSB5)
Live
Streaming
(LIV)
Online purchases are encouraged by
social networking sites (LIV1)
[18], [79],
[81], [82]
Shopping has become more popular as
a result of hedonic consumption
(LIV2)
Cognitive absorption influences online
buying (LIV3)
Impulsive consumption has given way
to online purchasing (LIV4)
Promotional
Tools (PRT)
Discounted prices encourage more
internet sales (PRT1)
[18], [86],
[87]
Online buying intentions are generated
by sales marketing (PRT2)
The buyer can be readily persuaded to
purchase the product by employing the
buy, one receives one strategy (PRT3)
When I feel like purchasing anything,
I buy it online because of my social
environment (PRT4)
Online
Reviews
(OLR)
Online shoppers are positively
impacted by reviewers' reputations
(OLR1)
[18],
[78],
[79],
[88]
Online reviews are trustworthy and
boost online sales (OLR2)
Positive customer reviews affect
internet purchasing (OLR3)
Argument persuasiveness aids in
persuading the buyer to make an
online purchase (OLR4)
Celebrity
Endorsement
s (CEN)
The number of shared celebrity posts
that encourage online buying (CEN1)
[18],
[89],
[90]
Online purchases are increased by
genuine celebrity posts (CEN2)
Positive sentiments towards internet
purchasing are fostered by celebrity
sponsorship (CEN3)
Prominent celebrities who promote
products encourage me to buy them
(CEN4)
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4 Result
Table 2 provides an insightful overview of the
respondent characteristics, shedding light on the
diverse makeup of the study's participant group,
which exclusively consists of Indonesian Gen Z
consumers. The table offers a breakdown of various
key attributes, illustrating the distribution of
respondents across different categories. Gender
distribution reveals that 38.86% of the participants
identify as male, while a majority, constituting
61.14%, identify as female. Regarding age, the
respondents span a range of cohorts. The largest
group falls within the 20 to under 24 age range,
accounting for 59.85% of the total sample. Those
aged 16 to under 20 constitute 26.52%, and
individuals aged 24 to under 28 make up 13.63%. In
terms of education, the majority of respondents hold
bachelor’s degrees from universities or colleges,
making up 90.06% of the sample. A smaller
proportion, 3.68%, are pursuing or have attained
master’s degrees, while 6.26% have completed
senior high school.
Employment status diversifies the participant
pool. Students form the largest segment at 67.40%,
followed by self-employed individuals at 17.68%.
Those currently employed constitute 12.89%, while
a smaller percentage of 2.03% are unemployed.
When examining the duration of participants' online
shopping habits, the data shows a spread across
various timeframes. Respondents who have been
online shoppers for 1 to 2 years represent 23.20%.
Table 2. Characteristic Respondent
Group
Frequency
Percentage
Male
211
38.86
Female
332
61.14
16 - <20
144
26.52
20 - <24
325
59.85
24 - <28
74
13.63
University/College
(Master)
20
3.68
University/College
(Bachelor)
489
90.06
Senior high school
34
6.26
Working
70
12.89
Student
366
67.4
Self-Employed
96
17.68
Unemployed
11
2.03
1 – 2 Year
126
23.2
3 – 4 Year
133
24.49
More than 5 years
284
52.3
Frequent
176
32.41
Sometimes
226
41.62
Occasionally
141
25.97
<3
114
20.99
3 - <4
276
50.83
4 - <5
88
16.21
>5
65
11.97
Those with 3 to 4 years of online shopping
experience comprise 24.49%, and the most
substantial group, constituting 52.30%, have
engaged in online shopping for over 5 years. The
frequency of online shopping varies, with 32.41% of
participants identifying as frequent shoppers,
41.62% as occasional shoppers, and 25.97% as
sometimes shoppers. Turning to the financial aspect,
the monthly expenditure on online shopping
displays a range. 20.99% of respondents spend less
than 3 million rupiah, while 50.83% spend between
3 and under 4 million rupiah. The group spending
between 4 and under 5 million rupiah constitutes
16.21%, and 11.97% of participants spend over 5
million rupiah monthly.
Table 3. Validity and Reliability Result
Variables
Item
Item
Loadings
Cronbach’s
Alpha
Comp.
Reliability
AVE
Online
Shopping
Behavior
(OSB)
OSB1
0.966
0.967
0.974
0.884
OSB1
0.980
OSB1
0.899
OSB1
0.870
OSB1
0.980
Live
Streaming
(LIV)
LIV1
0.933
0.938
0.956
0.845
LIV2
0.938
LIV3
0.835
LIV4
0.967
Promotional
Tools (PRT)
PRT1
0.978
0.989
0.992
0.969
PRT2
0.988
PRT3
0.989
PRT4
0.983
Online
Reviews
(OLR)
OLR1
0.969
0.958
0.97
0.891
OLR2
0.980
OLR3
0.852
OLR4
0.969
Celebrity
Endorsements
(CEN)
CEN1
0.708
0.841
0.893
0.678
CEN2
0.947
CEN3
0.845
CEN4
0.774
Table 3 presents the data's authenticity and
reliability. The outer model analysis assesses the
relationship between latent variables and indicators,
thereby evaluating the constructs' validity and
reliability. Construct validity is determined through
convergent and discriminant values, while reliability
is gauged using composite reliability and Average
Variance Extracted (AVE). In the reflective
indicator measurement model, convergent validity
investigates the connection between item and
variable scores based on load factors. An indicator
is deemed credible if its loading factor surpasses
0.70. This demonstrates that all indicators of the
variables possess a strong level of convergent
validity, each with a loading value exceeding 0.70.
Construct reliability was evaluated using
Cronbach's alpha and composite reliability. The
findings of this study reveal that the Online
Shopping Behavior (OSB) construct possesses a
Cronbach's alpha of 0.967 (> 0.70), a composite
reliability of 0.974, and an AVE of 0.884. For the
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independent variables, the results are as follows:
Live Streaming (LIV), Promotional Tools (PRT),
and Online Reviews (OLR) exhibit Cronbach's
alpha values of 0.938, 0.989, and 0.958 (> 0.70),
respectively, accompanied by composite reliability
values of 0.956, 0.992, and 0.970.
Table 4. The Results of the R-square.
Dependent Variable
R Square
Online Shopping
Behavior (OSB)
0.553
Table 5. Results of hypotheses testing
Hypothesis
Path
coefficient
T
Statistic
P-
Value
Result
H1: LIV ⇨
OSB
0.124
1.306
0.192
Not
Supported
H2: PRT ⇨
OSB
0.160
1.832
0.068
Not
Supported
H3: OLR ⇨
OSB
0.428
5.813
0.000
Supported
H4: CEN ⇨
OSB
0.230
2.519
0.012
Supported
H5:
LIV*CEN ⇨
OSB
0.049
0.698
0.485
Not
Supported
H6:
PRT*CEN ⇨
OSB
-0.074
1.057
0.291
Not
Supported
H7:
OLR*CEN
⇨ OSB
0.182
2.766
0.006
Supported
Additionally, their respective AVE values stand
at 0.845, 0.969, and 0.891, all surpassing 0.50.
Moreover, the moderator variable Celebrity
Endorsements (CEN) displays a Cronbach's alpha of
0.841 (> 0.70), a composite reliability of 0.893, and
an AVE of 0.678 (> 0.50).
Table 4 presents the R-square results, which
examine the relationships between constructs and
their corresponding significance values. These
estimations reveal that Online Shopping Behavior
(OSB) exhibits an R-square value of 0.553 or
55.3%, while the remaining 44.7% is accounted for
by other variables beyond the scope of the study
model.
Moving to Table 5, we meticulously detail the
impact of social media, encompassing celebrity
endorsements, on online shopping behavior.
Hypothesis 1 (H1) posited that live streaming
positively impacts online shopping behavior.
However, the analysis reveals that the path
coefficient for H1 is 0.124, with a t-statistic of 1.306
and a p-value of 0.192 (> 0.05). As a result,
Hypothesis 1 is not supported. The study's findings
do not provide substantial evidence to affirm that
live streaming significantly and positively
influences online shopping behavior among Gen Z
consumers during the specified time frame.
Similarly, Hypothesis 2 (H2) suggested that
promotional tools have a positive influence on
online shopping behavior. Yet, the path coefficient
for H2 is 0.160, with a t statistic of 1.832 and a p-
value of 0.068 (> 0.05). Consequently, Hypothesis 2
is not supported. The study's results do not strongly
substantiate the claim that promotional tools
significantly and positively impact online shopping
behavior within the specified context.
On the other hand, Hypothesis 3 (H3) posited
that online reviews positively impact online
shopping behavior. The analysis demonstrates that
the path coefficient for H3 is 0.428, with a t-statistic
of 5.813 and a p-value of 0.000 (< 0.05). As a result,
Hypothesis 3 is supported. The study's findings
strongly suggest that online reviews indeed have a
significant and positive effect on online shopping
behavior among Gen Z consumers in the context of
the COVID-19 pandemic era in Indonesia.
Likewise, Hypothesis 4 (H4) asserted that celebrity
endorsements positively influence online shopping
behavior. The path coefficient for H4 is 0.230, with
a t statistic of 2.519 and a p-value of 0.012 (< 0.05).
Consequently, Hypothesis 4 is supported. The
study's results provide compelling evidence that
celebrity endorsements significantly and positively
impact online shopping behavior among Gen Z
consumers in the specified context.
Lastly, Hypotheses 5 (H5), 6 (H6), and 7 (H7)
addressed the moderating effects of celebrity
endorsements on various factors. Hypotheses 5 and
6 were not supported, indicating that celebrity
endorsements do not significantly moderate the
relationships between live streaming and
promotional tools with online shopping behavior. In
contrast, Hypothesis 7 is supported, demonstrating
that celebrity endorsements moderate the
relationship between online reviews and online
shopping behavior, suggesting a substantial
influence in altering the impact of online reviews
within the context of Gen Z consumers' online
shopping behavior.
Overall, this study examined the influence of
various factors on the online shopping behavior of
Gen Z consumers during the COVID-19 pandemic
era in Indonesia. The analysis revealed that live
streaming and promotional tools did not have a
significant and robust impact on online shopping
behavior, aligning with unsupported hypotheses 1
and 2. However, Hypothesis 3 indicated that online
reviews had a significant and positive influence on
online shopping behavior, while Hypothesis 4
strengthened the notion that celebrity endorsements
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exerted a strong positive impact on online shopping
behavior. Furthermore, the study found that
celebrity endorsements had a significant moderating
effect on the relationship between online reviews
and online shopping behavior. In the specific
context of Gen Z consumers during the pandemic in
Indonesia, celebrity endorsements appear to wield
substantial influence in altering how online reviews
affect their online shopping behavior.
5 Discussion and Implications
This study aims to analyze the impact of social
media and celebrity endorsements on online
shopping behavior in Indonesia. The findings
highlight the significant positive influence of online
reviews on online shopping behavior. These
outcomes under-score that prospective consumers
are inclined to perceive online reviews as a means
of assessing a product based on the firsthand
experiences of other consumers who have utilized it.
Consequently, when a product receives higher
reviews, potential customers tend to gain more
confidence in making the purchase decision. This
research aligns with previous studies by, [31], [39],
[72], [74], [75], [76], all of which concluded that an
accumulation of positive online reviews prompts
potential customers to engage in product purchases.
Furthermore, the study also reveals that both
promotional tools and live streaming yield positive
effects on online shopping behavior; however, these
effects are not statistically significant. This suggests
that within the context of this study, the Gen Z
demographic places a higher degree of trust in
online reviews compared to promotional tools and
live streaming. The tangible experiences shared by
fellow consumers hold a critical role in evaluating
products for online shopping.
Our study also establishes that celebrity
endorsements exert a substantial impact on online
shopping behavior. These findings underscore those
leveraging celebrities for advertising purposes
confers a sense of brand assurance upon a product,
elevating it above competitors. The endorsement by
a celebrity, who will actively utilize the product,
generates a compelling incentive for followers to
make a purchase. This research aligns with the
conclusions drawn by, [40], who posit that
celebrities serve as an influential source of
information for their followers, effectively
endorsing products. The presence of celebrities
endorsing products invariably prompts their
followers to adopt these products, a trend supported
by studies such as those conducted by, [36], [37],
[78], [80].
Moreover, a noteworthy discovery in our
investigation is the moderating effect of online
reviews on celebrity endorsements and online
shopping behavior. These findings reveal that the
utilization of products endorsed by celebrities
receives a reinforcing boost from positive reviews,
thereby motivating consumers to make purchases.
This study aligns with the insights of, [41], as well
as the research by, [18], [31], [35]. These studies
propose that companies actively engaged in social
media activities and employing celebrities as brand
ambassadors effectively cultivate brand equity,
which, in turn, attracts potential consumers to
embrace the promoted product.
Examining the implications of these findings,
particularly in the context of Generation Z in
Indonesia, yields insights for policy-making and
marketing strategies targeted at this demographic.
The results highlighted in Table 5 underscore the
need for tailored approaches that align with the
distinct characteristics and preferences of Gen Z.
Hypotheses 1 and 2 indicate that neither live
streaming nor promotional tools significantly impact
online shopping behavior among Gen Z consumers.
Policymakers and businesses aiming to engage this
demographic should carefully evaluate the
effectiveness of these strategies in the Indonesian
context. It may be beneficial to reassess the content,
timing, and platforms used for live streaming and
promotional activities to better resonate with Gen Z
preferences and behaviors.
Conversely, Hypotheses 3 and 4 emphasize the
substantial impact of online reviews and celebrity
endorsements on Gen Z's online shopping behavior.
These findings suggest that companies should
prioritize garnering positive online reviews and
leveraging celebrity endorsements as effective
marketing tools. Policymakers could promote
transparency in online reviews, ensuring the
authenticity of feedback, while offering guidance to
businesses on forming ethical and compelling
celebrity endorsement collaborations that align with
Gen Z values.
The moderating effect highlighted in Hypothesis
7 further underscores the significance of celebrity
endorsements in shaping Gen Z consumers'
decisions. This presents an opportunity for
businesses and policymakers to strategically
integrate celebrity endorsements with positive
online reviews, recognizing that this combination
can have a synergistic influence on Gen Z's online
shopping behavior.
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DOI: 10.37394/23207.2024.21.24
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6 Conclusion
This study aims to look at the influence of social
media (live streaming, promotional tools, and online
reviews) and celebrity endorsements on online
shopping behaviors. In addition, we also examine
the role of celebrity endorsements in mediating the
influence of social media on online shopping
behavior. This research focuses on Generation Z in
Indonesia as many as 543 respondents. This study
uses the Structural Equal Modeling (SEM) method.
The results of this study indicate that online reviews
and celebrity endorsements have a significant
positive effect on online shopping behavior.
Interestingly, when we interact with celebrity
endorsements with online reviews, they have a
significant positive effect on online shopping
behavior. This indicates that celebrities add a
competitive advantage to a brand and that the brand
has very good online reviews that will encourage
consumers to buy products online.
The findings presented in this study offer several
implications with significant relevance for
marketers, society, and academics alike. For
marketers, the insights underscore the pivotal role of
genuine online reviews in shaping Gen Z
consumers' purchasing decisions. Crafting strategies
that encourage positive user-generated content and
leveraging authentic feedback can foster a sense of
trust and transparency, ultimately driving online
shopping engagement. Additionally, recognizing the
potent impact of celebrity endorsements on Gen Z's
behavior, marketers can forge collaborations with
influencers that resonate with this demographic to
enhance brand credibility. These insights also
resonate at a societal level, emphasizing the
importance of fostering a culture of authenticity and
credible online interactions. Encouraging ethical
practices that prioritize honest reviews and
transparent endorsements can bolster consumer trust
and contribute to a healthier online commerce
ecosystem. Academically, this study contributes to
the body of knowledge by offering nuanced insights
into the intricate dynamics between social media,
celebrity endorsements, online reviews, and Gen Z's
online shopping behavior. These implications
prompt researchers to delve deeper into
understanding the underlying mechanisms and
exploring novel theoretical frameworks that capture
the evolving nature of consumer behavior in the
digital age.
Despite the valuable insights gained, this study
has certain limitations that should be acknowledged.
Firstly, the research focused solely on the Gen Z
demographic in Indonesia, limiting the
generalizability of the findings to other populations
or age groups. Moreover, the study concentrated on
a specific time frame Covid-19 pandemic,
potentially overlooking potential variations in
behavior over time. Secondly, the research focused
on a selected set of variables, excluding other
potential influencing factors on online shopping
behavior.
For future research, there are several areas to
explore. Firstly, extending the study to encompass
other demographics and regions would provide a
more comprehensive understanding of the
generalizability of these findings. Secondly,
employing mixed methods approaches, such as
incorporating qualitative interviews or observational
studies, could enhance the depth and accuracy of the
insights. Additionally, investigating the evolving
nature of online shopping behavior beyond the
specific pandemic timeframe could yield insights
into dynamic shifts in consumer behavior. Exploring
cultural nuances and their impacts on the
relationships observed could also enrich the
understanding of consumer behavior in various
contexts.
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WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2024.21.24
Gusti Noorlitaria Achmad, Fitriansyah Fitriansyah,
Dadang Lesmana, Rizky Yudaruddin
E-ISSN: 2224-2899
279
Volume 21, 2024