The Role of Social Media on Purchase Decisions in Indonesia: Perspective of Z Generation

The technological revolution had a significant impact on people's lifestyles. With the development of technology, more and more social media are being created. Social media that is now widely used, namely Instagram, Facebook, TikTok, Twitter, etc. is one indication of the increasing use of the internet and people's need for online shopping. Currently, almost all social media have implemented live streaming and even shop features, which can increase usage and consumption rates, especially for Generation Z. Generation Z has an open way of thinking and likes instant things, including shopping. Apart from the convenience provided by social media, various impacts help Generation Z in making purchasing decisions. Therefore, this research was conducted to find out whether the role of social media can help Generation Z in making purchasing decisions, with the risks that exist in social media. With a sample of 300 respondents including Generation Z, who make purchasing decisions online, this research was collected through a quantitative survey method. The results of the questionnaire data will be analyzed using IBM SPSS version 28, while the model and structural measurements are analyzed using SmartPLS 4. The results of data collection show that Generation Z, in making purchasing decisions, does not care about the risks involved. Perceived risks are considered insignificant, but the theory holds that it is significant to consumers. Therefore, future research should consider whether the role of social media use in Generation Z has a different risk perception.