Online Reviews and Ratings Shape Purchasing Decisions in Indonesian E-Commerce

Abstract

This study aims to investigate the effect of risk perception, online customer reviews, and ratings on consumer purchasing decisions in Sidoarjo, Indonesia, using the Tokopedia application. The study employs an associative quantitative approach, and data is collected from 96 purposively sampled respondents through questionnaires. The results show that risk perception, online customer reviews, and ratings have a significant influence on consumer purchasing decisions through the Tokopedia marketplace. The findings suggest the importance of online customer reviews and ratings in shaping consumer perceptions of purchase risk and influencing their purchasing decisions. The study has implications for e-commerce platforms and fintech companies to focus on improving the quality of customer reviews and ratings to increase consumer trust and confidence in making online purchases.