The Influence of Artificial Intelligence, Price Elasticity, And Perceived Value on Purchasing Decisions at Shopee by Generation Z

Abstract

Easy access to the internet and smartphones has fuelled the growth of marketplaces. Indonesia is one of the countries with the fastest growing marketplaces in the world. To understand the changing market dynamics and factors that influence purchase decision, research on marketplaces are important to do. The purpose of this study was to determine the effect of artificial intelligence, price elasticity, and perceived value on purchasing decisions at Shopee partially and simultaneously. The research method used is quantitative research with purposive sampling technique and distributing questionnaires to 84 respondents. The result of this study are that artificial intelligence has an effect on purchasing decisions at Shopee. This shows that the application of artificial intelligence in the marketplace, namely the ability to mechanically apply, analyse, intuitive, and have empathetic intelligence can drive purchasing decisions. Research also shows that perceived value has an effect on purchasing decisions. This shows that customers who get emotional, social, quality and price values that are appropriate can encourage purchasing decisions. However, research proves that there is no effect of price elasticity on purchasing decisions. This shows that the existence of substitute goods, the proportion of income, and the period of analysis do not affect purchasing decisions at Shopee. The conclusion of the study is that there is a significant effect of artificial intelligence and perceived value on purchasing decisions and price elasticity has no effect on purchasing decisions at Shopee partially but simultaneously affects purchasing decisions.