A Preliminary Study of Consumer Behavior From the Online Marketplace in Indonesia

A Preliminary Study of Consumer Behavior From the Online Marketplace in Indonesia

Sevenpri Candra, Conny Elmanuella Tulangow, Filda Trya Winalda
Copyright: © 2022 |Pages: 17
DOI: 10.4018/IJABIM.297846
Article PDF Download
Open access articles are freely available for download

Abstract

The growth of online marketplace in Indonesia is increasing. By understanding consumer behavior, online marketplaces can enhance their service quality. Consumer behaviors refer to the study of customers and how they behave while decided to do the transaction. Consumer behavior can be evaluating from activity of repurchase intention, word of mouth and site revisit. The purpose of this study is to understand the impact of e-service quality, customer satisfaction and customer trust on consumer behavior of online marketplace. This study using snow-ball sampling technique and fill-in through online questionnaires to online customers in Indonesia. There are 431 respondents and analyzed by Structural Equation Modelling using Warppls 7.0 software. Customer satisfaction and customer trust affect repurchase intention and word of mouth. While site revisits are influenced by customer satisfaction. Based on this finding, online marketplace to give more attention and improving the e-service quality to increasing the customer satisfaction and customer trust.
Article Preview
Top

Introduction

Technological developments and business competition make business models experience developments in transactions that can be carried out by consumers. Today's consumers can find it easier to search for products or services so that it can be enjoyed directly by consumers only from the home or location that has been determined by the consumer. This can be seen from the data submitted by WeAreSocial and Hootsuite, that internet usage around the world until 2020 has reached 4.5 billion users. In Indonesia, there are 175.4 million people who have used the internet, this number has increased by 17% or around 25 million people from 2019 (Kemp, 2020; Ramadhan, 2020). This figure shows that currently the penetration of internet use in Indonesia is growing rapidly, thus opening many business opportunities and having a major influence on changes in people's behavior in general. Increased use of the internet and technological developments in the world, especially in Indonesia, have made changes, especially in the trade sector. Through the internet, all people can access information widely. Trading activities using technology and the internet have developed so that an online marketplace is formed. This is because people can easily search for and find the goods and services they want.

An online marketplace can be defined as a website or online application that facilitates the buying and selling process from various stores. The online marketplace has a concept that is the same as a traditional market. Basically, online marketplace owners are not responsible for the goods sold because their job is to provide a place for sellers who want to sell and help them meet consumers and make transactions more practically and easily. The transactions themselves are regulated by the online marketplace. Then after receiving payment, the seller will send the goods to the buyer. One of the reasons why the online marketplace is famous is because of the ease and convenience of using it. The online marketplace industry can be said to be one of the big industries in Indonesia. Everyone realizes that in recent years online shopping can be done more easily. The owner of the website or application does not own any product and their business only presents other people's products to users and then facilitates it. An online marketplace is a business model where the use of a website not only helps to promote products but also bridges online transactions between sellers and buyers. In recent years, online marketplaces have become booming in Indonesia because online marketplaces make it easy for consumers to shop online. The online marketplace provides a variety of product choices so that consumers will be able to choose the goods according to their wishes. Of course, this is very beneficial for businesspeople because they do not have to bother bringing visitors to their website, this is because the online marketplace already has many visitors (Artaya & Purworusmiardi, 2019).

The development of online marketplaces in Indonesia began when internet service providers were present in 1994. At the beginning, online marketplace-based services such as bhinneka.com emerged; tokobagus.com and Doku which were present as electronic money services in 2007 (Adhi, 2016). And until 2020, several online marketplaces have become the top leaders for online marketplaces such as Tokopedia, Bukalapak, Shopee and Blibli. Based on data from the Merchant Machine Research Institute in 2018, Indonesia leads the world's fastest growing online marketplace (Widowati, 2019). Based on a Bank Indonesia report in 2020, Indonesia has an online marketplace transaction value of 25.51 trillion Rupiah as of July 2020. The development of online marketplaces in Indonesia cannot be separated from the factor of consumer satisfaction in the experience of buying products. This customer satisfaction is the result of the quality in the services offered by every online marketplace. Seeing that there is not only one online marketplace in Indonesia, but it also makes consumers have many choices in determining which online marketplace to use as a place to buy their needs. Therefore, the online marketplace seeks to reduce this risk and uncertainty by providing quality e-service for all consumers such as an attractive and easily accessible website appearance, online-based feedback and reviews and insurance coverage options (Liu & Tang, 2018).

Complete Article List

Search this Journal:
Reset
Volume 15: 1 Issue (2024)
Volume 14: 1 Issue (2023)
Volume 13: 2 Issues (2022)
Volume 12: 4 Issues (2021)
Volume 11: 4 Issues (2020)
Volume 10: 4 Issues (2019)
Volume 9: 4 Issues (2018)
Volume 8: 4 Issues (2017)
Volume 7: 4 Issues (2016)
Volume 6: 4 Issues (2015)
Volume 5: 4 Issues (2014)
Volume 4: 4 Issues (2013)
Volume 3: 4 Issues (2012)
Volume 2: 4 Issues (2011)
Volume 1: 4 Issues (2010)
View Complete Journal Contents Listing