The Determinant Factors of E-Commerce Purchase Decision in Jakarta and Tangerang

Authors

  • Arby Virto Gunawan Bina Nusantara University
  • Linawati Linawati Bina Nusantara University
  • Dimas Pranandito Bina Nusantara University
  • Rano Kartono Bina Nusantara University

DOI:

https://doi.org/10.21512/bbr.v10i1.5379

Keywords:

purchase decision, e-commerce, brand image, price, trust

Abstract

This research aimed to identify the factors that influenced the purchase decision in e-commerce. These used factors were brand image, price, and trust which were adopted from the previous research. The research was designed using a quantitative method with accidental sampling. From 200 questionnaires, there were 117 returned questionnaires from respondents who had made online purchases around Jakarta and Tangerang. The data was analyzed using SPSS. The result shows that brand image has positive influences on purchase decision. On the other hand, price and trust do not influence it. Price is the secondary commitment to make a purchase decision. Thus, a lower price does not guarantee the convenience of online shopping. Meanwhile, trust in making online decisions are built from brand image, shop, and strong products in the market place. Those rejected variables are affected by research fields and target samples.

Dimensions

Plum Analytics

Author Biographies

Arby Virto Gunawan, Bina Nusantara University

Binus Business School

Linawati Linawati, Bina Nusantara University

Binus Business School

Dimas Pranandito, Bina Nusantara University

Binus Business School

Rano Kartono, Bina Nusantara University

Binus Business School

References

Alamsyah, D. P., Trijumansyah, A., & Hariyanto, O. I. (2017). Mediating of store image on customer trust for organic vegetables. Mimbar: Jurnal Sosial dan Pembangunan, 33(1), 132-141. https://doi.org/10.29313/mimbar.v33i1.2121

Asosiasi Penyelenggara Jasa Internet Indonesia. (2017). Hasil survei penetrasi dan perilaku pengguna Internet Indonesia 2017. Retrieved from https://apjii. or.id/content/read/39/342/Hasil-Survei-Penetrasidan-Perilaku-Pengguna-Internet-Indonesia-2017

Bauman, A., & Bachmann, R. (2017). Online consumer trust: Trends in research. Journal of Technology Management & Innovation, 12(2), 68-79. https://doi.org/10.4067/S0718-27242017000200008

Bonn, M. A., Cronin Jr, J. J., & Cho, M. (2016). Do environmental sustainable practices of organic wine suppliers affect consumers’ behavioral intentions? The moderating role of trust. Cornell Hospitality Quarterly, 57(1), 21-37. https://doi.org/10.1177/1938965515576567

Campbell, J. M., & Fairhurst, A. E. (2016). Reducing the intention-to-behaviour gap for locally produced foods purchasing: The role of store, trust, and price. International Journal of Retail & Distribution Management, 44(5), 508-523. https://doi.org/10.1108/IJRDM-08-2015-0121

Chakraborty, U., & Bhat, S. (2018). Credibility of online reviews and its impact on brand image. Management Research Review, 41(1), 148-164. https://doi.org/10.1108/MRR-06-2017-0173

Das, K., Gryseels, M., Sudhir, P., & Tan, K. T. (2016). Unlocking Indonesia’s digital opportunity. McKinsey & Company Indonesia Office.

Foster, B. (2018). The Influence of service quality on aircraft’s brand image in Bandung, Indonesia. Journal of International Business Research and Marketing, 3(5), 19-24. https://doi.org/10.18775/jibrm.1849-8558.2015.35.3003

Ghozali, I. (2016). Aplikasi analisis multivariete SPSS 23. Semarang: Badan Penerbit Universitas Diponegoro.

Greblikaitė, J., & Pervazaitė, D. (2014). Ethical issues related to e-commerce: Case of discount e-shopping site in Lithuania. European Integration Studies, 8, 124-130. https://doi.org/10.5755/j01.eis.0.8.7060

Han, H., & Hyun, S. S. (2015). Customer retention in the medical tourism industry: Impact of quality, satisfaction, trust, and price reasonableness. Tourism Management, 46(February), 20-29. https://doi.org/10.1016/j.tourman.2014.06.003

Hanaysha, J. R. (2018). An examination of the factors affecting consumer’s purchase decision in the Malaysian retail market. PSU Research Review, 2(1), 7-23. https://doi.org/10.1108/PRR-08-2017-0034

Harsono, H. (2016). Indonesia will be Asia’s next biggest e-commerce market. Retrieved October 20th 2018, from https://techcrunch.com/2016/07/29/indonesiawill-be-asias-next-biggest-e-commerce-market/

Jeong, J. Y., & Crompton, J. L. (2018). Do subjects from high and low context cultures attribute different meanings to tourism services with 9-ending prices?. Tourism Management, 64(February), 110-118. https://doi.org/10.1016/j.tourman.2017.08.009

Karimi, S., Papamichail, K. N., & Holland, C. P. (2015). The effect of prior knowledge and decision-making style on the online purchase decision-making process: A typology of consumer shopping behaviour. Decision Support Systems, 77(September), 137-147. https://doi.org/10.1016/j.dss.2015.06.004

Kharouf, H., J. Lund, D., & Sekhon, H. (2014). Building trust by signaling trustworthiness in service retail. Journal of Services Marketing, 28(5), 361-373.https://doi.org/10.1108/JSM-01-2013-0005

Kim, D. J., Ferrin, D. L., & Rao, H. R. (2008). A trust-based consumer decision-making model in electronic commerce: The role of trust, perceived risk, and their antecedents. Decision Support Systems, 44(2), 544-564. https://doi.org/10.1016/j.dss.2007.07.001

Kim, H. W., Xu, Y., & Gupta, S. (2012). Which is more important in Internet shopping, perceived price or trust? Electronic Commerce Research and Applications, 11(3), 241-252. https://doi.org/10.1016/J.ELERAP.2011.06.003

Kotler, P., & Keller, K. L. (2016). Marketing management (15th Global ed). England: Pearson.

Kusumah, R. (2015). Analyze the effect of trust, price, quality and perceived risk toward consumer purchase behavior in online shops Instagram. Jurnal Berkala Ilmiah Efisiensi, 15(5), 355-366.

Lee, M., Yun, J., Pyka, A., Won, D., Kodama, F., Schiuma, G., ... & Yan, M. R. (2018). How to respond to the Fourth Industrial Revolution, or the Second Information Technology Revolution? Dynamic new combinations between technology, market, and society through open innovation. Journal of Open 4(3), 21. https://doi.org/10.3390/joitmc4030021

Lien, C. H., Wen, M. J., Huang, L. C., & Wu, K. L. (2015). Online hotel booking: The effects of brand image, price, trust and value on purchase intentions. Asia Pacific Management Review, 20(4), 210-218. https://doi.org/10.1016/j.apmrv.2015.03.005

Limpo, L., Rahim, A., & Hamzah, H. (2018). Effect of product quality, price, and promotion to purchase decision. International Journal on Advanced Science, Education, and Religion, 1(1), 9-22. https://doi.org/10.33648/ijoaser.v1i1.2

Lin, L. Y., & Chen, C. S. (2006). The influence of the countryof- origin image, product knowledge and product involvement on consumer purchase decisions: An empirical study of insurance and catering services in Taiwan. Journal of Consumer Marketing, 23(5), 248-265. https://doi.org/10.1108/07363760610681655

Marriott, H. R., & Williams, M. D. (2018). Exploring consumers perceived risk and trust for mobile shopping: A theoretical framework and empirical study. Journal of Retailing and Consumer Services, 42(May), 133-146. https://doi.org/10.1016/j.jretconser.2018.01.017

Mutsikiwa, M., & Marumbwa, J. (2013). The impact of aesthetics package design elements on consumer purchase decisions: A case of locally produced dairy products in Southern Zimbabwe. IOSR Journal of Business and Management (IOSR-JBM), 8(5), 64-71. https://doi.org/10.9790/487X-0856471

Najafi, I. (2014). Identify effective factors for improving e-trust of e-transactions in the context of e-commerce and e-government. International Journal of Computer Trends and Technology (IJCTT), 17(6), 281-299. https://doi.org/10.14445/22312803/IJCTTV17P152

Nofri, O., & Hafifah, A. (2018). Analisis perilaku konsumen dalam melakukan online shopping di kota Makassar. Jurnal Minds: Manajemen Ide dan Inspirasi, 5(1), 113-132. https://doi.org/10.24252/minds.v5i1.5054

Ozmen, E. S., Öner, M. A., Khosrowshahi, F., & Underwood, J. (2014). SMEs’ purchasing habits: A procurement maturity model for stakeholders. Sage Open, 4(2), 1-19. https://doi.org/10.1177/2158244014536405

Permana, R. M., & Ilham. (2018). Antecedents and consequences of brand image: A case of a packaged drinking water product. In The 2018 International Conference of Organizational Innovation (ICOI-2018).

Ponte, E. B., Carvajal-Trujillo, E., & Escobar-Rodríguez, T. (2015). Influence of trust and perceived value on the intention to purchase travel online: Integrating the effects of assurance on trust antecedents. Tourism Management, 47(April), 286-302. https://doi.org/10.1016/j.tourman.2014.10.009

Rares, A., & Jorie, R. J. (2015). The effect of the price, promotion, location, brand image and quality products towards the purchase decision of consumers at Bengkel Gaoel Store Manado Town Square. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 3(2), 592-604. https://doi.org/10.6023/cjoc201501040

Rastogi, V. (2018). Indonesia’s e-commerce sector – Market potential and challenges. Retrieved October 29th 2018 from https://www.aseanbriefing.com/news/2018/09/06/indonesias-e-commerce-sectormarket-potential-challenges.html

Rizan, M., Nauli, M. O., & Mukhtar, S. (2017). The influence of brand image, price, product quality and perceive risk on purchase decision transformer product PT. Schneider Indonesia. JRMSI-Jurnal Riset Manajemen Sains Indonesia, 8(1), 101-119. https://doi.org/10.21009/JRMSI.008.1.06

Rochmi, M. N. (2016). Daftar e-commerce yang tumbang. Retrieved from https://beritagar.id/artikel/berita/daftar-e-commerce-yang-tumbang

Salem, M. Z. (2018). Effects of perfume packaging on Basque female consumers purchase decision in Spain. Management Decision, 56(8), 1748-1768. https://doi.org/10.1108/MD-04-2017-0363

Setiawan, H., Herawati, Y., & Asmarani, S. (2015). Pengaruh harga dan kualitas produk terhadap keputusan pembelian suplemen kesehatan K-Omega Squa (Studi kasus pada stokis PT K-Link Nusantara Cabang Plaju Palembang). Orasi Bisnis, 13(1), 70-85.

Sfenrianto, Wijaya, T., & Wang, G. (2018). Assessing the buyer trust and satisfaction factors in the e-marketplace. Journal of Theoretical and Applied Electronic Commerce Research, 13(2), 43-57. https://doi.org/10.4067/S0718-18762018000200105

Statista. (2018). Internet usage in Indonesia - Statistics & facts. Retrieved from www.statista.com/topics/2431/internet-usage-in-indonesia/

Sudjatmika, F. V. (2017). Pengaruh harga, ulasan produk, kemudahan, dan keamanan terhadap keputusan pembelian secara online di Tokopedia.com. Agora, 5(1).

Sujarweni, V. W. (2015). Metode penelitian bisnis dan ekonomi. Yogyakarta: Pustaka Baru Press.

Sukri, & Arisandi, D. (2017). Analisa pembeli kuliner terhadap pembaharuan informasi melalui media sosial di Kota Pekanbaru. Jurnal RESTI (Rekayasa Sistem dan Teknologi Informasi), 1(2), 122-130. https://doi.org/10.29207/resti.v1i2.42

Syahreza, A. M. (2015). Pengaruh brand image terhadap keputusan penggunaan jasa penerbangan pada PT. Garuda Indonesia Cabang Makassar (Skripsi). Universitas Hasanuddin.

Thompson, F. M., Tuzovic, S., & Braun, C. (2018). Trustmarks: Strategies for exploiting their full potential in e-commerce. Business Horizons, 62(2), 237-247. https://doi.org/10.1016/j.bushor.2018.09.004

Vasić, N., Kilibarda, M., & Kaurin, T. (2019). The influence of online shopping determinants on customer satisfaction in the Serbian market. Journal of Theoretical and Applied Electronic Commerce Research, 14(2), 70-89.

Widyastuti, S., & Said, M. (2017). Consumer consideration in purchase decision of SPECS sports shoes product through brand image, product design and price perception. International Journal of Supply Chain Management, 6(4), 199-207.

Zhang, Y. (2015). The impact of brand image on consumer behavior: A literature review. Open Journal of business and management, 3(1), 58-62. https://doi.org/10.4236/ojbm.2015.31006

Downloads

Published

2019-03-31
Abstract 8379  .
PDF downloaded 5088  .