TikTok Shop Marketing Strategy Against Predatory Pricing on Social Media
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Abstract
TikTok, which was originally used as an entertainment medium, has now developed into a tool for business strategy
(Yuniarti, et al, 2020). TikTok Shop's market share is projected to increase to 13.2% in 2023 from currently only
controlling 4.4% of the total e-commerce market share in Southeast Asia (www.databoks.katadata.co.id, 2023).
TikTok shop's ability to gain market share in Indonesia has apparently been accused of carrying out "Predatory Pricing"
practices, namely a sales strategy by setting very low prices with the aim of eliminating competitors from the market
and attracting buyers with low prices (www.cnnindonesia.com, 2023). The prohibition on the concept of predatory
pricing is confirmed in Article 20 of Law no. 5 of 1999 and Article 7 of Law no. 1. On the 5th of 1999, a ban was
implemented on setting prices below production costs. The aim of this research is to determine the effect of low prices,
flash sales and the yellow basket feature on the TikTok Shop on predatory pricing on social media.This type of research
is quantitative. Sampling used the purposive sampling method. Data was collected by distributing questionnaires and
analyzed using multiple linear regression. The research results show that flash sales have a positive effect, while low
prices and the yellow basket feature do not have a positive effect on predatory pricing on social media.
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References
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