The Effect of Physical Experience and Integrated Information on Customer Purchase Behavior in Online-to-Offline Commerce

Authors

  • Christine Universitas Multimedia Nusantara
  • So Yohanes Jimmy Universitas Multimedia Nusantara
  • Prio Utomo Universitas Multimedia Nusantara

Keywords:

O2O, Physical Experience, IOOI, Perceived Risk, Perceived Benefit

Abstract

Online-to-Offline (O2O) is a business model increasingly being developed and widely implemented by companies in Indonesia. Therefore, this study aims to examine the factors influencing purchasing behavior in Indonesian O2O commerce through economic theories, namely Perceived Risk and Perceived Benefit. The study procedures were carried out using a quantitative approach, and the data obtained were analyzed with Partial Least Square Structural Equation Modeling. The sample data was selected using a purposive sampling method and collected through an online survey instrument from 248 millennial customers who had made O2O purchase. The results showed that all exogenous variables had significant effects, except for Physical Experience, which did not significantly affect Perceived Risk. Meanwhile, Integration Online-to-Offline (IOOI) had the most significant impact on enhancing customer purchase intention. The results also showed that Perceived Benefit had significant impact to customer purchase intention. This study offered a novel perspective by exploring how integrated customer behavior across digital and physical channels influenced purchasing decisions within the Indonesian context, where existing literature was limited. The results provided valuable insights for companies in formulating strategies to deliver effective physical experiences and IOOI. To maximize customer purchase intention, companies should ensure that the information available across online and offline channels is complementary and consistent.

Dimensions

Author Biographies

Christine, Universitas Multimedia Nusantara

Saat ini bekerja sebagai Senior System Analyst Finance Solution Technology pada salah satu kontraktor tambang di Indonesia dan sudah menyelesaikan study S2 MMT di Universitas Multimedia Nusantara. 

Sebelumnya juga mengajar sebagai asisten dosen di Trisakti School of Management pada tahun 2006 -2009. 

So Yohanes Jimmy, Universitas Multimedia Nusantara

Dr. So Yohanes Jimmy, S.T., M.M. menempuh pendidikan Sarjana Teknik di Universitas Kristen Satya Wacana, gelar Magister Manajemen dari Universitas Prasetiya Mulya  dan  gelar Doktor Manajemen Strategis dari Universitas Indonesia. Keahlian yang dimilikinya adalah bidang kompetensi Strategic Management dan Corporate and International Finance. Sebagai seorang wirausaha, Dr. Jimmy juga memiliki bisnis terkait penyediaan sarana transportasi bagi perusahaan minyak dan kelapa sawit di daerah Kalimantan.

Saat ini Dr. Jimmy mengajar mata kuliah Business Model Innovation dan New Venture Creation di Magister Manajemen Teknologi (MMT) Universitas Multimedia Nusantara.

Prio Utomo, Universitas Multimedia Nusantara

Dr. Prio Utomo, S.T., MPC mendapatkan gelar doktornya di bidang Manajemen dari Binus University Doctor of Research in Management (DRM) dengan konsentrasi Sustainability and Growth Strategy di tahun 2018, dan Magister Professional Computing dari University of Southern Queendsland serta Sarjana Teknik Elektro Universitas Trisakti dengan penjurusan Teknik Komputer. Minat mengajar dan penelitiannya meliputi business technology strategy, technology adoption, entrepreneurship.

Sebelum berkiprah di dunia Pendidikan secara penuh, Prio berkarya sebagai pelaku industry selama 25 tahun dan menempati beberapa posisi strategis di baik perusahaan teknologi multinational maupun regional seperti Cisco System, Hewlett-Packard, Compaq Computer dan Siemens, dengan pengalaman dibidang Market dan Business Development serta New Technology Adoption dengan berbagai prestasi yang membanggakan.

Beberapa pencapaian dari segi kompetensi industry, beliau memiliki sertifikasi Cisco Certified Internetworking Expert (CCIE #17431), CISSP,  TOGAF 9 and COBIT.

References

Arnold, M. J., & Reynolds, K. E. (2003). Hedonic shopping motivations. Journal of Retailing, 79(2), 77–95. https://doi.org/10.1016/S0022-4359(03)00007-1

Arora, S., & Sahney, S. (2019). Examining consumers’ webrooming behavior: an integrated approach. Marketing Intelligence and Planning, 37(3), 339–354. https://doi.org/10.1108/MIP-05-2018-0152

C. Haridasan, A., Fernando, A. G., & Saju, B. (2021). A systematic review of consumer information search in online and offline environments. RAUSP Management Journal, 56(2), 234–253. https://doi.org/10.1108/RAUSP-08-2019-0174

Chang, Y.-W., Hsu, P.-Y., & Yang, Q.-M. (2018). Integration of online and offline channels : a view of O2O commerce. Internet Research, 28(4), 926–945.

Cho, J. (2004). Likelihood to abort an online transaction: Influences from cognitive evaluations, attitudes, and behavioral variables. Information and Management, 41(7), 827–838. https://doi.org/10.1016/j.im.2003.08.013

Chokkannan, P., Bhavani Shankar, S., & Pattusamy, M. (2023). The fashion retailer’s opportunity: effect of deal-seeking behavior on mobile shopping intention of showroomers. Asia Pacific Journal of Marketing and Logistics, 35(5), 1187–1205. https://doi.org/10.1108/APJML-12-2021-0914

Desmonda, D., Jimmy, S. Y., & Annas, M. (2024). Understanding the Influences of Hedonic Personality towards Advertising Avoidance on Social Media. The South East Asian Journal of Management, 18(1), 81–104. https://doi.org/10.21002/seam.v18i1.1516

Flavián, C., Gurrea, R., & Orús, C. (2020). Combining channels to make smart purchases: The role of webrooming and showrooming. Journal of Retailing and Consumer Services, 52(September 2019). https://doi.org/10.1016/j.jretconser.2019.101923

Forsythe, S. M., & Shi, B. (2003). Consumer patronage and risk perceptions in Internet shopping. Journal of Business Research, 56(11), 867–875. https://doi.org/10.1016/S0148-2963(01)00273-9

Gensler, S., Neslin, S. A., & Verhoef, P. C. (2017). The Showrooming Phenomenon: It’s More than Just About Price. Journal of Interactive Marketing, 38, 29–43. https://doi.org/10.1016/j.intmar.2017.01.003

Guo, Y., Zhang, M., & Lynette Wang, V. (2022). Webrooming or showrooming? The moderating effect of product attributes. Journal of Research in Interactive Marketing, 16(4), 534–550. https://doi.org/10.1108/JRIM-08-2020-0161

Hair, J., Hult, T., Ringle, C., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling. In SAGE Publications, Inc (Vol. 46, Issues 1–2). https://doi.org/10.1016/j.lrp.2013.01.002

Hussein, R. S., & Kais, A. (2020). Multichannel behaviour in the retail industry : evidence from an emerging market. International Journal of Logistics: Research and Applications, 0(0), 1–19. https://doi.org/10.1080/13675567.2020.1749248

Kahneman, D. (2013). Thinking Fast and Slow. Farrar, Straus and Giroux.

Kim, H. W., Chan, H. C., & Gupta, S. (2007). Value-based Adoption of Mobile Internet: An empirical investigation. Decision Support Systems, 43(1), 111–126. https://doi.org/10.1016/j.dss.2005.05.009

Li, Y., Liu, H., Lee, M., & Huang, Q. (2020). Information privacy concern and deception in online retailing: The moderating effect of online–offline information integration. Internet Research, 30(2), 511–537. https://doi.org/10.1108/INTR-02-2018-0066

Mukherjee, S., & Chatterjee, S. (2021). Webrooming and showrooming: a multi-stage consumer decision process. Marketing Intelligence and Planning, 39(5), 649–669. https://doi.org/10.1108/MIP-08-2020-0351

Nurdianti, T. (2022). Pimpin Pasar o2o, Mitra Bukalapak Beri Komitmen Perluas Dampak Positif untuk UMKM di Indonesia. Https://Wartaekonomi.Co.Id/. https://wartaekonomi.co.id/read455414/pimpin-pasar-o2o-mitra-bukalapak-beri-komitmen-perluas-dampak-positif-untuk-umkm-di-indonesia

Ram, J., Manoharan, A., & Sun, S. (2020). O2O Adoption Benefits: A Managerial Perspective of Customer Benefits. Electronic Journal of Information Systems Evaluation, 23(1), 65–78. https://doi.org/10.34190/ejise.20.23.1.005

Ratchford, B., Soysal, G., Zentner, A., & Gauri, D. K. (2022). Online and offline retailing: What we know and directions for future research. Journal of Retailing, 98(1), 152–177. https://doi.org/10.1016/j.jretai.2022.02.007

Schiessl, D., Korelo, J., & Dias, H. B. A. (2023). How online shopping experiences shape consumer webrooming behavior. Marketing Intelligence and Planning, 41(1), 16–30. https://doi.org/10.1108/MIP-08-2021-0254

Shakir, M. A., Zhu, J., Shakaib, M., Akhter, M., Malik, A., & Ahmed, Z. (2022). Journal of Retailing and Consumer Services The impact of channel integration on consumers ’ channel preferences : Do showrooming and webrooming behaviors matter ? Journal of Retailing and Consumer Services, March 2022, 102130. https://doi.org/10.1016/j.jretconser.2020.102130

Shankar, A., & Jain, S. (2023). Investigating webrooming behavior: a case of Indian luxury consumers. Journal of Fashion Marketing and Management, 27(2), 241–261. https://doi.org/10.1108/JFMM-09-2021-0227

Swoboda, B., & Winters, A. (2021). Effects of the most useful offline-online and online-offline channel integration services for consumers. Decision Support Systems, 145(August 2020). https://doi.org/10.1016/j.dss.2021.113522

Utomo, P., & Kurniasari, F. (2023). The Dynamic Capability and Ambidexterity in the Early-Stage Startups: A Hierarchical Component Model Approach. Eurasian Business and Economics Perspectives, In M. H. B(Springer Nature Switzerland), 49–61.

Wang, C., Wang, Y., Wang, J., Xiao, J., & Liu, J. (2021). Factors influencing consumers’ purchase decision-making in O2O business model: Evidence from consumers’ overall evaluation. Journal of Retailing and Consumer Services, 61(April). https://doi.org/10.1016/j.jretconser.2021.102565

Wang, O., Somogyi, S., & Charlebois, S. (2020). Food choice in the e-commerce era : A comparison between business-to-consumer (B2C), online-to-offline (O2O) and new retail. British Food Journal, 122(4), 1215–1237. https://doi.org/10.1108/BFJ-09-2019-0682

Xiao, L., Guo, Z., & D’Ambra, J. (2019). Benefit-based O2O commerce segmentation: a means-end chain approach. Electronic Commerce Research, 19(2), 409–449. https://doi.org/10.1007/s10660-017-9286-3

Yadav, N., Verma, S., & Chikhalkar, R. (2023). Online reviews towards reducing risk. Journal of Tourism Futures, 1–18. https://doi.org/10.1108/JTF-01-2022-0016

Yang, Y., Gong, Y., Land, L. P. W., & Chesney, T. (2020). Understanding the effects of physical experience and information integration on consumer use of online to offline commerce. International Journal of Information Management, 51(April 2019). https://doi.org/10.1016/j.ijinfomgt.2019.102046

Yao, P., Osman, S., Sabri, M. F., & Zainudin, N. (2022). Consumer Behavior in Online-to-Offline (O2O) Commerce: A Thematic Review. Sustainability (Switzerland), 14(13). https://doi.org/10.3390/su14137842

Yao, P., Sabri, M. F., Osman, S., Zainudin, N., & Li, Y. (2023). Consumers’ Continued Intention to Use Online-to-Offline (O2O) Services in Omnichannel Retail: Differences between To-Shop and To-Home Models. Sustainability (Switzerland), 15(2). https://doi.org/10.3390/su15020945

Zhang, J. Z., Chang, C. W., & Neslin, S. A. (2022). How Physical Stores Enhance Customer Value: The Importance of Product Inspection Depth. Journal of Marketing, 86(2), 166–185. https://doi.org/10.1177/00222429211012106

Downloads

Published

2025-02-26

How to Cite

Christine, christine, Jimmy, S. Y., & Utomo, P. (2025). The Effect of Physical Experience and Integrated Information on Customer Purchase Behavior in Online-to-Offline Commerce. Journal The Winners. Retrieved from https://journal.binus.ac.id/index.php/winners/article/view/12584

Issue

2025: Article in Press

Section

Digital Transformation from Marketing Perspective in Developing Countries

License

Copyright (c) 2025 Christine, So Yohanes Jimmy, Prio Utomo

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:
a. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License - Share Alike that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.

b. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.

c. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.

 

USER RIGHTS

 All articles published Open Access will be immediately and permanently free for everyone to read and download.  We are continuously working with our author communities to select the best choice of license options, currently being defined for this journal as follows: Creative Commons Attribution-Share Alike (CC BY-SA)

Abstract 92  .
PDF downloaded 45  .

Similar Articles

1 2 3 4 5 6 7 > >> 

You may also start an advanced similarity search for this article.