THE EFFECT OF PERCEIVED PERSONALIZATION OF PRODUCT RECOMMENDATION ON PURCHASE INTENTION THROUGH PERCEIVED VALUE ON MARKETPLACE USERS
Abstract
This study examines the effect of Perceived Personalization of Product Recommendation on Purchase Intention through Perceived Value among marketplace users. Drawing on the Stimulus-Organism-Response (S-O-R) framework, the study proposes that perceived personalization of product recommendations influences purchase intention both directly and indirectly through perceived value. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS. The results show that Perceived Personalization of Product Recommendation has a positive and significant effect on Perceived Value (β = 0.815; p < 0.001) and Purchase Intention (β = 0.430; p < 0.001). Perceived Value also has a positive and significant effect on Purchase Intention (β = 0.455; p < 0.001). Furthermore, Perceived Value significantly mediates the relationship between Perceived Personalization of Product Recommendation and Purchase Intention (β = 0.371; p < 0.001), with a VAF of 46.3%, indicating partial mediation. These findings suggest that personalized product recommendations can strengthen purchase intention not only directly but also by increasing the value consumers perceive in the recommended products.
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