The Effect of Physical Experience and Integrated Information on Customer Purchase Behavior in Online-to-Offline Commerce
Keywords:
O2O, Physical Experience, IOOI, Perceived Risk, Perceived BenefitAbstract
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.
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