Ekonomi Bisnis
Vol. 31 No. 2 (2026)

PRICE DISCOUNT VERSUS FREE SHIPPING: COMPARING PROMOTIONAL EFFECTIVENESS AMONG GENERATION Z TIKTOK SHOP USERS

Ari Raharjo (Gunadarma University)
Tety Elida (Gunadarma University)
Keysha Fatiha Fausyam (Gunadarma University)
Zahra Orchidiella Hanum (Gunadarma University)



Article Info

Publish Date
25 Jul 2026

Abstract

This study examines the effects of price discounts and free shipping on the purchase intention of Generation Z consumers using TikTok Shop in Indonesia. It also compares the relative effectiveness of these two promotional strategies in stimulating purchase intention within a social commerce environment. A quantitative explanatory research design was employed. Data were collected through an online questionnaire administered to Generation Z TikTok Shop users selected using purposive sampling. The research model was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with RStudio. The measurement model was evaluated through validity and reliability tests, while the structural model was assessed using path coefficients, bootstrapping, effect sizes, and comparative analysis.The results reveal that both price discounts and free shipping have positive and significant effects on purchase intention. However, free shipping demonstrates a stronger influence than price discounts, indicating that eliminating shipping costs is more effective in reducing consumers’ psychological barriers during the purchasing process. The findings suggest that minimizing transaction friction is more influential than conventional price reductions in encouraging purchase intention among Generation Z consumers. This study extends the social commerce literature by directly comparing the effectiveness of price discounts and free shipping within a single analytical model.

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Journal Info

Abbrev

ekbis

Publisher

Subject

Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

Jurnal Ilmiah Ekonomi Bisnis is a journal through a peer-review process. Jurnal Ilmiah Ekonomi Bisnis is intended for academics and researchers to publish their articles which is an original text that has not been published in another journal. The focus and scope are in the fields of management, ...