The influence of e-wom and security on cryptocurrency purchase decisions in generation z through trust as mediation variables
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Published:
Nov 28, 2023
Keywords:
Crypto, E-WOM, Gen Z, Purchase Decisions, Security, Trust
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Economy
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Abstract
Generation Z is a demographic group that has grown up with digital technology and has an important role in the adoption of cryptocurrency as an increasingly popular form of investment and online transactions. The advantages and potential of cryptocurrencies are attractive. However, several challenges need to be overcome, such as security issues, concerns about fake news, unclear regulations, and price volatility that will affect cryptocurrency purchasing decisions. This research aims to test whether factors such as the influence of Electronic Word of Mouth (eWOM), Security, and Trust influence cryptocurrency purchasing decisions in Generation Z. This research uses Structural Equation Modeling (SEM) and AMOS statistical tools. Data collection techniques were distributed through online questionnaires on the 5 largest islands in Indonesia with a sample of 200 respondents. The population of this research is Generation Z in the age range of 18-25 years, who are buyers of cryptocurrency using purposive sampling techniques. The results of this research show that electronic Word of Mouth has a positive and significant influence on cryptocurrency purchasing decisions in Generation Z. Perceptions of cryptocurrency security also have a significant influence on purchasing decisions. Trust is also an important factor in shaping Generation Z's Purchasing Decisions
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Julhuda, J., Hendri, M. I. ., Pebrianti, W. ., Iman Kalis, M. C. . and Fahruna, Y. . (2023) “The influence of e-wom and security on cryptocurrency purchase decisions in generation z through trust as mediation variables”, Jurnal Mantik, 7(3), pp. 2490-2500. doi: 10.35335/mantik.v7i3.4406.
References
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Hong Hin, L. (2020). Critical review: Current research issues on crypto-currency and its application in financial sectors. International Journal of Business and Management, 15(3), 145. https://doi.org/10.5539/ijbm.v15n3p145
Inci, A. C., & Lagasse, R. (2019). Cryptocurrencies: applications and investment opportunities. Journal of Capital Markets Studies, 3(2), 98–112. https://doi.org/10.1108/jcms-05-2019-0032
Jadhav, S. D., Patil, C., Raghunath, S., Hamid, W., & Anil, V. (2023). A study on awareness of college students about cryptocurrency and tts relation to level of education. Indonesian Journal of Educational Research and Technology, 3(2), 155–160. https://doi.org/https://doi.org/10.17509/ijert.v3i2.50083
Khan, M., & Talayeh Aledavood, S. A. (2021). Predicting cryptocurrency value, based on sentimental analysis of social media post. www.aalto.fi
L?z?roiu, G., Neguri??, O., Grecu, I., Grecu, G., & Mitran, P. C. (2020). Consumers’ decision-making process on social commerce platforms: Online trust, perceived risk, and purchase intentions. In Frontiers in Psychology (Vol. 11). Frontiers Media S.A. https://doi.org/10.3389/fpsyg.2020.00890
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Nemes, L., & Kiss, A. (2021). Social media sentiment analysis based on COVID-19. Journal of Information and Telecommunication, 5(1), 1–15. https://doi.org/10.1080/24751839.2020.1790793
Nurhasanah, Mahliza, F., Nugroho, L., & Putra, Y. M. (2021). The effect of e-WOM, brand trust, and brand ambassador on purchase decisions at Tokopedia online shopping site. IOP Conference Series: Materials Science and Engineering, 1071(1), 012017. https://doi.org/10.1088/1757-899x/1071/1/012017
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Pebrianti, W., & Maghribi, R. (2021). E-Marketing teori, ilustrasi, dan best practice Gojek Indonesia.
Procházka, D. (2018). Accounting for bitcoin and other cryptocurrencies under IFRS: A comparison and assessment of competing models. International Journal of Digital Accounting Research, 18, 161–188. https://doi.org/10.4192/1577-8517-v18_7
Rahman, A., & Khan Dawood, A. (2019). Bitcoin and future of cryptocurrency. Ushus - Journal of Business Management, 18(1), 61–66. https://doi.org/10.12725/ujbm.46.5
Raslie, H., & Ting, S. H. (2021). Gen y and gen z communication style. Estudios de Economia Aplicada, 39(1), 1–18. https://doi.org/10.25115/eea.v39i1.4268
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Sangal, S., Nigam, A., & Bhutani, C. (2022). Purchase behavior of generation z for new-brand beauty products. Journal of Electronic Commerce in Organizations, 20(2), 1–21. https://doi.org/10.4018/JECO.300304
Su, C. H., Tsai, C. H., Chen, M. H., & Lv, W. Q. (2019). U.S. sustainable food market generation Z consumer segments. Sustainability (Switzerland), 11(13). https://doi.org/10.3390/su11133607
Sundjaja, A. M., & Tina, A. (2019). The factors of the intention to use P2P lending financial technology (Fintech) website at Jadetabek intervening by perceived value. International Journal of Recent Technology and Engineering, 8(3), 3102–3107. https://doi.org/10.35940/ijrte.C4975.098319
Tümer, M., Aghaei, I., Nasser Eddine, Y., & Öney, E. (2019). The impact of traditional and social media marketing on customers’ brand trust and purchase intentions in the Turkish airline market. Journal of Research in Emerging Markets, 1(4), 55–68. https://doi.org/10.30585/jrems.v1i4.344
Weber, M., Candia, B., Coibion, O., & Gorodnichenko, Y. (2023). Do you even crypto, bro? cryptocurrencies in household finance. https://www.socialscienceregistry.org/trials/11436
Widyastuti Maria, & Hermanto Budi. (2021). Cryptocurrency analysis of Indonesian market education facilities. Business and Accounting Research (IJEBAR) Peer Reviewed-International Journal, 5. https://jurnal.stie-aas.ac.id/index.php/IJEBAR
Wong, S. C., Teoh Teng Tenk, M., Yap Kiew Heong, A., & Saleh, Z. (2022). Determinants of cryptocurrency adoption behavior in Malaysia. Jurnal Pengurusan, 65, 3–14. https://doi.org/10.17576/pengurusan-2022-65-01
Yusof, H., Tunku, U., Rahman, A., Zolkaply, Z., Ashraf, M., Universiti, A., & Rahman, T. A. (2023). Are the young investors ready for cryptocurrency investments in Malaysia? Technology, Engineering & Mathematics (EPSTEM), 22. www.isres.org
Yusuf, A. (2021). The influence of product innovation and brand image on customer purchase decision on Oppo smartphone products in South Tangerang City. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 4(1), 472–481. https://doi.org/10.33258/birci.v4i1.1629.
Almajali, D. A., Masa’Deh, R., & Dahalin, Z. M. d. (2022). Factors influencing the adoption of cryptocurrency in Jordan: An application of the extended TRA model. Cogent Social Sciences, 8(1). https://doi.org/10.1080/23311886.2022.2103901
Amirzadeh, R., Nazari, A., & Thiruvady, D. (2022). Applying artificial intelligence in cryptocurrency markets. Algorithms, 15(11). https://doi.org/10.3390/a15110428
Anjani, S., & Irwansyah, I. (2020). The role of social media influencers in communicating messages using instagram. Polyglot: Jurnal Ilmiah, 16(2), 203. https://doi.org/10.19166/pji.v16i2.1929
Arias-Oliva, M., Pelegrín-Borondo, J., & Matías-Clavero, G. (2019). Variables influencing cryptocurrency use: A technology acceptance model in Spain. Frontiers in Psychology, 10(MAR). https://doi.org/10.3389/fpsyg.2019.00475
Ayu Desy Trisnadewi Darmawan, P., Ngurah Suyatna Yasa, P., Made Wahyuni, N., & Goldina Puteri Dewi, K. (2022). Pengaruh electronic word of mouth dan citra merek terhadap niat beli. Jurnal Ilmiah Manajemen Dan Bisnis, 7(1). https://journal.undiknas.ac.id/index.php/manajemen
Bains, P., Ismail, A., Melo, F., & Sugimoto, N. (2022). Regulating the crypto ecosystem: The case of unbacked crypto assets.
Bartolucci, S., & Kirilenko, A. (2020). A model of the optimal selection of crypto assets. Royal Society Open Science, 7(8). https://doi.org/10.1098/rsos.191863
Carolina, A., & De Faria, A. (2022). Could cryptocurrencies be an extension of our self?
Chen, C. C., Khan, A., Hongsuchon, T., Ruangkanjanases, A., Chen, Y. T., Sivarak, O., & Chen, S. C. (2021). The role of corporate social responsibility and corporate image in times of crisis: The mediating role of customer trust. International Journal of Environmental Research and Public Health, 18(16). https://doi.org/10.3390/ijerph18168275
Chittineni, J. (2022). A study on cryptocurrency investors’ purchase intentions: revisiting the brand personality theory. International Journal of Economics and Financial Issues, 12(4), 28–33. https://doi.org/10.32479/ijefi.13102
Dahham, A. Z. D., & Ibrahim, A. A. (2020). Effects of volatility and trend indicator for improving price prediction of cryptocurrency. IOP Conference Series: Materials Science and Engineering, 928(3). https://doi.org/10.1088/1757-899X/928/3/032043
Danisewicz, P., & Elard, I. (2023). The real effects of financial technology: Marketplace lending and personal bankruptcy. Journal of Banking and Finance, 155. https://doi.org/10.1016/j.jbankfin.2023.106986
Ekamevia, P. D., & Sebayang, A. F. (2022). Preferensi Masyarakat mengenai Cryptocurrency sebagai Alat Investasi di Masa Mendatang. Bandung Conference Series: Economics Studies, 2(2). https://doi.org/10.29313/bcses.v2i2.4636
Feyen, E., & Kawashima, Y. (2022). Crypto-assets activity around the world evolution and macro-financial drivers. http://www.worldbank.org/prwp.
Gary Mottola FINRA. (2023). Gen Z and investing: Social media, crypto, FOMO, and family.
Giray, L. (2022). Meet the centennials: Understanding the generation Z students. International Journal of Sociologies and Anthropologies Science Reviews (IJSASR), 2(4), 9–18. https://doi.org/10.14456/jsasr.2022.26
Hackethal, A., Hanspal, T., Lammer, D. M., & Rink, K. (2022). The characteristics and portfolio behavior of bitcoin investors: Evidence from indirect cryptocurrency investments. Review of Finance, 26(4), 855–898. https://doi.org/10.1093/rof/rfab034
Hardoko, H. (2022). The effect of trust, security, quality of service, perception of risk and price on online purchase decision. Strategic Management Business Journal, 2(01), 39–49. https://doi.org/10.55751/smbj.v2i01.25
Hong Hin, L. (2020). Critical review: Current research issues on crypto-currency and its application in financial sectors. International Journal of Business and Management, 15(3), 145. https://doi.org/10.5539/ijbm.v15n3p145
Inci, A. C., & Lagasse, R. (2019). Cryptocurrencies: applications and investment opportunities. Journal of Capital Markets Studies, 3(2), 98–112. https://doi.org/10.1108/jcms-05-2019-0032
Jadhav, S. D., Patil, C., Raghunath, S., Hamid, W., & Anil, V. (2023). A study on awareness of college students about cryptocurrency and tts relation to level of education. Indonesian Journal of Educational Research and Technology, 3(2), 155–160. https://doi.org/https://doi.org/10.17509/ijert.v3i2.50083
Khan, M., & Talayeh Aledavood, S. A. (2021). Predicting cryptocurrency value, based on sentimental analysis of social media post. www.aalto.fi
L?z?roiu, G., Neguri??, O., Grecu, I., Grecu, G., & Mitran, P. C. (2020). Consumers’ decision-making process on social commerce platforms: Online trust, perceived risk, and purchase intentions. In Frontiers in Psychology (Vol. 11). Frontiers Media S.A. https://doi.org/10.3389/fpsyg.2020.00890
Mashatan, A., Sangari, M. S., & Dehghani, M. (2022). How perceptions of information privacy and security impact consumer trust in crypto-payment: An empirical study. IEEE Access, 10, 69441–69454. https://doi.org/10.1109/ACCESS.2022.3186786
Mendoza-Tello, J. C., Mora, H., Pujol-López, F. A., & Lytras, M. D. (2018). Social commerce as a driver to enhance trust and intention to use cryptocurrencies for electronic payments. IEEE Access, 6, 50737–50751. https://doi.org/10.1109/ACCESS.2018.2869359
Mitchell Rice. (2019). Cryptocurrency: History, advantages, disadvantages, and the future.
Nemes, L., & Kiss, A. (2021). Social media sentiment analysis based on COVID-19. Journal of Information and Telecommunication, 5(1), 1–15. https://doi.org/10.1080/24751839.2020.1790793
Nurhasanah, Mahliza, F., Nugroho, L., & Putra, Y. M. (2021). The effect of e-WOM, brand trust, and brand ambassador on purchase decisions at Tokopedia online shopping site. IOP Conference Series: Materials Science and Engineering, 1071(1), 012017. https://doi.org/10.1088/1757-899x/1071/1/012017
Osagwu Anthony Obiajulu, & Okafor Ekwunife Gabriel. (2022). Understanding the nexus between advertising and purchase intention of cryptocurrency among young adults in Nigeria. European Journal of Business and Innovation Research, 10(6), 34–70. https://doi.org/10.37745/ejbir.2013/vo10.n6pp3470
Pebrianti, W., Arweni, A., & Awal, M. (2020). Digital marketing, e-WOM, brand awareness dan keputusan pembelian kopi milenial. Jurnal Ilmu Ekonomi & Sosial, 11(1), 48–56. https://doi.org/10.35724/jies.v11i1.2848
Pebrianti, W., & Maghribi, R. (2021). E-Marketing teori, ilustrasi, dan best practice Gojek Indonesia.
Procházka, D. (2018). Accounting for bitcoin and other cryptocurrencies under IFRS: A comparison and assessment of competing models. International Journal of Digital Accounting Research, 18, 161–188. https://doi.org/10.4192/1577-8517-v18_7
Rahman, A., & Khan Dawood, A. (2019). Bitcoin and future of cryptocurrency. Ushus - Journal of Business Management, 18(1), 61–66. https://doi.org/10.12725/ujbm.46.5
Raslie, H., & Ting, S. H. (2021). Gen y and gen z communication style. Estudios de Economia Aplicada, 39(1), 1–18. https://doi.org/10.25115/eea.v39i1.4268
Rejeb, A., Rejeb, K., & G. Keogh, J. (2021). Cryptocurrencies in modern finance: A literature review. ETIKONOMI, 20(1), 93–118. https://doi.org/10.15408/etk.v20i1.16911
Rizkan, M., Faiza, N., & Akbar, M. (2023). Determinants of purchase decisions among e-commerce users: The significance of trust, security, price, service quality, and risk perception. Jurnal Dinamika Manajemen Dan Bisnis, 6(1). http://journal.unj.ac.id/unj/index.php/jdmb
Sangal, S., Nigam, A., & Bhutani, C. (2022). Purchase behavior of generation z for new-brand beauty products. Journal of Electronic Commerce in Organizations, 20(2), 1–21. https://doi.org/10.4018/JECO.300304
Su, C. H., Tsai, C. H., Chen, M. H., & Lv, W. Q. (2019). U.S. sustainable food market generation Z consumer segments. Sustainability (Switzerland), 11(13). https://doi.org/10.3390/su11133607
Sundjaja, A. M., & Tina, A. (2019). The factors of the intention to use P2P lending financial technology (Fintech) website at Jadetabek intervening by perceived value. International Journal of Recent Technology and Engineering, 8(3), 3102–3107. https://doi.org/10.35940/ijrte.C4975.098319
Tümer, M., Aghaei, I., Nasser Eddine, Y., & Öney, E. (2019). The impact of traditional and social media marketing on customers’ brand trust and purchase intentions in the Turkish airline market. Journal of Research in Emerging Markets, 1(4), 55–68. https://doi.org/10.30585/jrems.v1i4.344
Weber, M., Candia, B., Coibion, O., & Gorodnichenko, Y. (2023). Do you even crypto, bro? cryptocurrencies in household finance. https://www.socialscienceregistry.org/trials/11436
Widyastuti Maria, & Hermanto Budi. (2021). Cryptocurrency analysis of Indonesian market education facilities. Business and Accounting Research (IJEBAR) Peer Reviewed-International Journal, 5. https://jurnal.stie-aas.ac.id/index.php/IJEBAR
Wong, S. C., Teoh Teng Tenk, M., Yap Kiew Heong, A., & Saleh, Z. (2022). Determinants of cryptocurrency adoption behavior in Malaysia. Jurnal Pengurusan, 65, 3–14. https://doi.org/10.17576/pengurusan-2022-65-01
Yusof, H., Tunku, U., Rahman, A., Zolkaply, Z., Ashraf, M., Universiti, A., & Rahman, T. A. (2023). Are the young investors ready for cryptocurrency investments in Malaysia? Technology, Engineering & Mathematics (EPSTEM), 22. www.isres.org
Yusuf, A. (2021). The influence of product innovation and brand image on customer purchase decision on Oppo smartphone products in South Tangerang City. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 4(1), 472–481. https://doi.org/10.33258/birci.v4i1.1629.
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