The Long-Term Effectiveness of Live Streaming Marketing: Analysing Factors Affecting Purchase Intention and Customer Loyalty

Abstract

Marketing strategies have shifted significantly away from conventional advertising methods and toward a more modern approach, digital marketing. Subsequently, the emergence of live broadcast marketing was caused by the increasing popularity of social media. Every generation uses social media at least once a day, making it a habitual activity. As live broadcast marketing is a cost-effective strategy for businesses, marketers began to adopt the live streaming marketing strategy. TikTok is one of the examples of social media that has a live streaming feature and has the most downloads in Indonesia. However, most of the previous studies mainly investigated the factors determining the viewer’s purchase intention but did not explore the effectiveness of TikTok live streaming marketing from the perspective of customers’ loyalty in the future. This study aims to investigate the roles of streamers’ attractiveness, E-WOM, and perceived risk on purchase intention and customer loyalty. The research is conducted in Indonesia with their popularity of live streaming marketing strategy. The population of this research is Generation Y and Z. The research method was quantitative, utilizing questionnaires with the 5-scale Likert Scale to gather data. The result of the investigation depicts that streamer’s attractiveness, E-WOM, and perceived risk have a significant impact on elevating the customers’ loyalty by positively influencing purchase intention. The implications and recommendations are also included in this paper.