Digital Commerce Meets Consumer Psychology
Indonesia is one of the world’s most active social media markets, with millions of users spending hours each day scrolling, watching, and shopping online. TikTok Shop, which blends short-form video entertainment with direct purchasing features, has emerged as a powerful social commerce platform. Despite high user engagement, its transaction volume still trails behind established players like Shopee and Tokopedia.
This gap raises an important question for businesses and policymakers: why do high levels of online interaction not always translate into sales? The Universitas Udayana study addresses this issue by examining how online reviews influence consumer decisions and how trust acts as a psychological bridge between digital content and real-world spending.
How the Research Was Conducted
The researchers focused on TikTok Shop users in Denpasar City, the capital of Bali, an area known for high internet penetration and digital literacy. The study surveyed 101 residents who had made purchases on TikTok Shop within the previous six months.
Participants completed structured questionnaires measuring three key factors:
- Exposure to electronic word of mouth (e-WOM), including reviews and recommendations
- Level of trust in the TikTok Shop brand and its sellers
- Actual purchasing decisions
The data were analyzed using a statistical modeling approach that identifies both direct and indirect relationships between variables. In simple terms, the researchers looked at how online reviews influence buying decisions on their own, and how much stronger that influence becomes when consumers trust the brand.
Key Findings at a Glance
The results show a clear and consistent pattern:
- Online reviews directly influence purchases. Consumers are more likely to buy products on TikTok Shop when they encounter positive and credible reviews from other users.
- e-WOM builds brand trust. Reviews and testimonials do more than share information; they shape perceptions of honesty, reliability, and product quality.
- Brand trust strongly drives buying decisions. Trust reduces perceived risk and hesitation, making consumers more confident in completing transactions.
- Brand trust acts as a partial mediator. Online reviews influence purchases both directly and indirectly, with brand trust amplifying the overall effect.
In practical terms, reviews alone can encourage buying, but reviews supported by strong brand trust are far more effective.
Why Brand Trust Matters in Social Commerce
Unlike traditional e-commerce, TikTok Shop combines entertainment, influencers, and peer interaction in a single space. This environment creates excitement but also uncertainty. Consumers rely heavily on signals from other users to judge whether a product or seller is trustworthy.
Ni Luh Putri Surya Dewi explains that trust is not built automatically. It emerges from consistent product quality, transparent information, and positive shared experiences. When users repeatedly see credible reviews and honest feedback, they are more willing to act on recommendations.
“Electronic word of mouth works best when consumers already believe that the brand or platform will keep its promises,” Dewi notes, emphasizing that trust turns online opinions into real purchasing behavior.
Implications for Businesses and Platforms
The findings offer practical guidance for digital platforms, sellers, and marketers:
- Actively manage reviews. Encouraging authentic customer feedback and responding to complaints can strengthen credibility.
- Prioritize transparency. Accurate product descriptions and honest communication help build long-term trust.
- Invest in trust-building strategies. Secure payment systems, reliable customer service, and consistent quality are essential in social commerce.
- Leverage community influence. Trusted influencers and engaged user communities can amplify positive e-WOM while reinforcing brand trust.
For TikTok Shop, the study suggests that growth will depend not only on viral content but also on sustained trust in the platform and its sellers.
Broader Social and Economic Impact
As social commerce becomes a central part of Indonesia’s digital economy, understanding consumer trust has policy and educational relevance. Stronger trust mechanisms can protect consumers from misinformation and fraud, while helping small and medium-sized businesses compete fairly in online marketplaces.
The research also contributes to global discussions about how social media platforms influence economic behavior. By showing how psychological factors mediate digital interactions, the study provides insights relevant beyond Indonesia, especially for countries experiencing rapid growth in social commerce.
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