The Effects of the Students’ Hierarchy of Needs in an Indonesian Private Academy on the Intention to Buy in Social Commerce

Authors

  • Fatimah Muthmainnah Binus University
  • Fergyanto E. Gunawan Industrial Engineering Department, BINUS Graduate Program - Master of Industrial Engineering, Bina Nusantara University

DOI:

https://doi.org/10.21512/commit.v14i2.6641

Keywords:

Hierarchy of Needs, Intention to Buy, Social Commerce

Abstract

In line with Internet users’ growth in Indonesia, many people buy and sell goods and services through social networking sites. This activity is social commerce, and it primarily affects the millennials, such as private academy students. The research is conducted to determine the effects of the hierarchy of needs in a private academy in Indonesia on students’ intentions to buy in social commerce. Facebook, Instagram, and Whatsapp are the used social commerce in the research. The questionnaire is answered by 126 respondents consisting of indicators from Maslow’s hierarchical needs. The analysis technique is Partial Least Square (PLS) with the SmartPLS 3.0 program. Hypothesis test results show that transcendence, self-actualization, cognitive needs, and physiological needs have no significant effect on the intention to buy in social commerce. Meanwhile, esteem needs, safety needs, aesthetic needs, and belonging and love needs affect intention to buy.

Author Biography

Fatimah Muthmainnah, Binus University

Information Systems Management

References

M. Nabila. (2019) Survei APJII: Pengguna Internet di Indonesia capai 171,17 juta sepanjang 2018. [Online]. Available: https://dailysocial.id/post/pengguna-internet-indonesia-2018

R. Mahadevan. Beyond networking: Social commerce as driver of digital payments. [Online]. Available: https://www.paypalobjects.com/digitalassets/c/website/marketing/global/stories/images/paypal-asia-social-commerce-report.pdf

N. Hajli, “Social commerce constructs and consumer’s intention to buy,” International Journal of Information Management, vol. 35, no. 2, pp. 183–191, 2015.

E. Turban, L. Lai, and J. Strauss, Social commerce: Marketing, technology and management. London: Springer International Publishing, 2016.

M. Anderson, J. Sims, J. Price, and J. Brusa, “Turning “like” to “buy” social media emerges as a commerce channel,” Booz & Company Inc, vol. 2, no. 1, pp. 102–128, 2011.

N. Rahayu. (2019) Pertumbuhan e-commerce pesat di Indonesia. [Online]. Available: https://www.wartaekonomi.co.id/read216302/pertumbuhan-e-commerce-pesat-di-indonesia.html

H. Ali and L. Purwandi, Indonesia 2020: The urban middle-class millenials. Jakarta: Alvara Research Center, 2016.

Sub Direktorat Statistik Rumah Tangga - Badan Pusat Statistik. (2017) Indonesia – Survei sosial ekonomi nasional 2017 Maret (KOR). [Online]. Available: https://mikrodata.bps.go.id/mikrodata/index.php/catalog/814

H. Ali, L. Purwandi, H. Nugroho, A. Ekoputri, and T. Halim, The urban middle-class millenials Indonesia: Financial and online behavior. Jakarta: PT. Alvara Strategi Indonesia, 2017.

S. Jacobsen and N. G. Barnes, “On being social: How social identity impacts social commerce for the millennial shopper,” International Journal of Management Science and Business Administration, vol. 3, no. 4, pp. 38–45, 2017.

K. P. Lewis, P. G. Fernando Jr, M. L. C. Delos, and D. B. Gonzales, “Social commerce acceptance of students in a state university in the Philippines: A unified view,” Circulation in Computer Science, vol. 3, no. 3, pp. 1–5, 2018.

M. H. Abraham, “A theory of human motivation,” Psychological Review, vol. 50, no. 4, pp. 370–396, 1943.

A. H. Maslow, Motivation and personality. New York: Harper & Row, 1954.

——, Motivation and personality. New York: Harper & Row, 1970.

——, Religions, values, and peak-experiences. Viking Press, 1970.

S. McLeod. (2020) Maslow’s hierarchy of needs. [Online]. Available: https://www.simplypsychology.org/maslow.html

N. K. Malhotra, Marketing research: An applied orientation. Prentice-Hall International, 2004.

J. F. Hair Jr, G. T. M. Hult, C. Ringle, and M. Sarstedt, A primer on Partial Least Squares Structural Equation Modeling (PLSSEM). Thousand Oaks: SAGE publications, 2017.

W. W. Chin, “The Partial Least Squares approach to Structural Equation Modeling,” Modern Methods for Business Research, vol. 295, no. 2, pp. 295–336, 1998.

A. M. Hubley, Discriminant validity, ser. Encyclopedia of quality of life and well-being research. London: Springer Science+Business Media Dordrecht, 2014, pp. 1664–1667.

I. Ghozali, Structural Equation Modeling metode alternatif dengan Partial Least Squares (PLS). Semarang: Badan Penerbit Universitas Diponegoro, 2014.

P. M. Bentler and D. G. Bonett, “Significance tests and goodness of fit in the analysis of covariance structures.” Psychological Bulletin, vol. 88, no. 3, pp. 588– 606, 1980.

J. B. Lohm¨oller, Latent variable path modeling with Partial Least Squares. Physica-Verlag Heidelberg, 1989.

S. Yamin and H. Kurniawan, Generasi baru mengolah data penelitian dengan Partial Least Square path modeling. Jakarta: Salemba Infotek, 2011.

Downloads

Published

2020-11-09