Online Reviews, Ratings and Trust: The Impact on Shopee Purchase Decisions for Millennial Consumers

Abstract

Objective: This study aims to analyze the influence of online customer reviews and ratings on the purchase decisions of millennial consumers in Palembang City on  the  Shopee platform with trust as a mediating variable.

Research Methodology: The quantitative research approach was conducted using Partial Least Square Structural Equation Modeling (PLS-SEM) with SmartPLS software. The sample consisted of 180 respondents who were selected by purposive sampling from millennial users of the Shopee platform in Palembang City.

Research Results: These findings reveal that online customer reviews and ratings positively and significantly influence trust and purchasing decisions. In addition, trust partially mediates the relationship between online reviews and ratings  and purchasing decisions.

Conclusion: These findings confirm the importance of digital reputation management in the online marketing ecosystem, where e-commerce platform providers and sellers  need to encourage the formation of credible customer reviews and ratings to build consumer trust.

Limitations: This study is limited by its cross-sectional design, focus on millennial Shoppe consumers, and reliance on self-reported data, which may involve bias despite mitigation through a clear and consistent instrument.

Contributions: This study enriches digital marketing literature by emphasizing the impact of online reviews, ratings, and trust on purchase decisions. It offers managerial insights for sellers and platforms to enhance review authenticity and consumer trust.