An Investigation of Millennial in Jakarta - SGU Repository

The Influence of Perceived Usefulness, Perceived Ease of Use and People on E-Wallet Utilization in the Food and Beverage Industry: An Investigation of Millennial

in Jakarta

Nicholas Nugrahatama and Nila Krisnawati Swiss German University

The 6th Gadjah Mada International Conference on Economics and Business September 12-13, 2018

1

E-Wallet Usage in Indonesia

§  Only 52 million out of 113 million people are active users (<50%) (Daily Social Indonesia, 2017).

§  E-Wallet consists of Tangible and Intangible E-Wallet a.  Tangible: E-Money, Flazz, Indomaretcard

b.  Intangible: OVO, TCash, Go-pay

Based on the previous research and Pre-survey;

•  There are two strong factors which are perceived ease of use and perceived usefulness that affect the utilization of digital payment system in café and restaurant industry (Cobanoglu et.al, 2015).

•  Behavior and habit of people affects how often they use E-Wallet

Government regulation that is embarking the use of electronic payment in the next decade (Indonesia National Strategy of Financial Inclusions, 2017)

INTRODUCTION ³

0% 10% 20% 30% 40% 50% 60% 70%

Habit issues Confusion in utilizing Top-Up is being charged Issues of spending more

PEOPLE’S REASONS FOR NOT USING E- WALLET REGULARLY

Table 1. E-Wallet in Indonesia

Source : Tirto (2018)

Source : Authors (2018)

RESEARCH PROBLEM

•  Although infrastructure in Indonesia, especially in Jakarta is

being enhanced to ease people in doing transaction using a

digitized payment system especially E-wallet, most

Indonesians especially Millennial, are still pleased with the

conventional transaction method using cash. Therefore, it is

suspected that perceived ease of use and perceived usefulness

of E-Wallet is still considered as poor, in the field of F&B

Industry in Jakarta. To support the variables above, the people

(behavior) also takes part due to cultural differences that

suspected become constraint to adopt E-wallet in F&B

Industry.

RESEARCH OBJECTIVE

•  To determine whether perceived ease of use affects the intention to utilize E-Wallet in the Food and Beverage Industry in Jakarta

•  To study the impact of perceived usefulness to the intention to utilize E-Wallet in the Food and Beverage Industry in Jakarta

•  To study the impact of the variable people (behavior) to the intention to utilize E-Wallet in the Food and Beverage Industry in Jakarta

5

RESEARCH METHODOLOGY

•  Type of Study

•  Quantitative and Qualitative

•  Population

•  Millennial (consumer of F&B Restaurant ) in Jakarta

•  Users of E-Wallet

•  Around 450,000 people (based on previous research)

•  Sampling

•  Size: Hair’s approach, 200 people

•  Method: Non-probability sampling, snowball sampling

•  Unit of Analysis/Unit Observation

•  Millennials

•  F&B Booths and Restaurants consumers

•  E-Wallet users

•  Lives in Jakarta

DATA ANALYSIS 7

•  Classical Assumption Test

•  Normality Test

•  Heterscedasticity Test

•  Multi-Collinearity Test

•  Regression Analysis

•  Regression Equation

•  Hypothesis Testing

•  Triangulation

Regression Equation (Cooper & Schindler, 2014)

PREVIOUS STUDY

PREVIOUS STUDY ⁹

LITERATURE REVIEW

•  Digital Payment : System actually has several types, the types that are going to be discussed in this research includes: (a) Mobile payment (e.g. mobile banking), (b) E-Wallet - Electronic cash or pre- paid cards (e.g. E-Money/T-Cash), (c) Credit and Debit cards.

•  E-Wallet is considered to be one of the most effective and most

utilized payment systems these past years in several industries such

as transportation and telecommunication industry (The Boston

Consulting Group, 2016). E-Wallet later in late 2016 defined as a

payment instrument that consists of electronic cash and pre-paid

cards by the Indonesian government (Indonesia National Strategy of

Financial Inclusion (SNKI), 2017). Both are available in a tangible

and intangible form (Oney, Guven, & Rizvi, 2017).

Technology Acceptance Model (TAM)

•  Predict individual’s intention to use a certain technology

•  Related with Perceived Ease of Use and Perceived Usefulness to the Intention to utilize E-Wallet

Consumer Behavior Theory

•  Subjective norms

•  3C: Creative, Connected, Confidence

•  Social influences

•  Relatives perceptions and opinions

•  Lifestyle

•  Compatibility of technology

LITERATURE REVIEW 11

Technology Acceptance Model (Davis, 1989)

RESEARCH MODEL

HYPOTHESES 13

•  H₀ #1: Perceived Usefulness has no impact to the utilization of E- Wallet

•  H₁ #1: Perceived Usefulness has a significant impact to the intention to utilize E-Wallet

•  H₀ #2: Perceived Ease of Use has no influence to the intention to utilize E-Wallet

•  H₁ #2: Perceived Ease of Use has a big influence to the intention to utilize E-Wallet

•  H₀ #3: People have no impact toward the intention to utilize E- Wallet

•  H₁ #3: People have a huge effect toward the intention to utilize E- Wallet

VALIDITY & REALIBILITY TEST

•  Validity

•  Pearson’s Correlation

•  R Score > R Table

•  N = 200, r = 0.138 with 0.05 significance level

•  All indicators in the questions are above the R table

•  Reliability

•  Cronbach’s Alpha

•  All variables are reliable with good to very good relation around 0.7 to 0.8 alpha score

No. Variables

Cronbach’s alpha values

Davis (1989) Current Test

1. Perceived Usefulness α = .942 α = .833 2. Perceived Ease of Use α = .952 α = .713

3. People α = (-) α = .818

4. Intention to Use α = .969 α = .885

Results and Discussions 15

Multiple Regression Test (Cooper & Schindler, 2014)

•  T-Test

•  F-Test

•  Coefficient Determination

Partial regression coefficient test is used to measure whether the independent variables individually affect the dependent variable.

The criteria of T-Test would be:

- If the significance value is above 0.05 then H0 is accepted.

- If the significance value is below 0.05 then H1 is accepted.

Results and Discussions

Multiple Regression Test (Cooper & Schindler, 2014)

•  T-Test

•  F-Test

•  Coefficient Determination

The F-Test / ANOVA is used to see the effect of independent variables simultaneously or jointly on the independent variable.

The criteria of F-Test would be:

- If the significance value is above 0.05 then H0 is accepted.

- If the significance value is below 0.05 then H1 is accepted.

Results and Discussions 17

Multiple Regression Test (Cooper & Schindler, 2014)

•  T-Test

•  F-Test

•  Coefficient Determination

The coefficient of determination shows how well a regression model fits the data. Its value represents the percentage of variation that can be explained by the regression equation.

Results and Discussions

Hypothesis Testing

•  H₀ #1: Perceived Usefulness has no impact to the utilization of E-Wallet

•  H₁ #1: Perceived Usefulness has a significant impact to the intention to utilize E-Wallet – is accepted.

•  Aligned with other previous studies done by (Chandra, 2010) (Batkovic, 2015) (Gefen, 2000) and (Davis, 1989)

•  H₀ #2: Perceived Ease of Use has no influence to the intention to utilize E-Wallet

•  H₁ #2: Perceived Ease of Use has a big influence to the intention to utilize E-Wallet – is accepted.

•  Aligned with other previous studies done by (Gefen, 2000) and (Hernandez et al., 2009)

•  H₀ #3: People have no impact toward the intention to utilize E-Wallet – is rejected.

•  H₁ #3: People have a huge effect toward the intention to utilize E-Wallet – is accepted.

•  Closely related to other previous studies by (Batkovic, 2015) (Mallat, 2015) and Cobanoglu et al, 2015)

Results and Discussions 19

Multiple Regression Test (Cooper & Schindler, 2014)

•  T-Test

•  F-Test

•  Coefficient Determination

•  Regression Equation

The regression model fits with the data.

Results and Discussions

Triangulation

•  H₀ #1: Perceived Usefulness has no impact to the utilization of E-Wallet – is rejected.

•  H₁ #1: Perceived Usefulness has a significant impact to the intention to utilize E- Wallet – is accepted.

•  “It definitely has an impact, but not that much, since people are still using debit and credit cards more often, however, E-Wallet trend is getting there too” – Mr. Liechar

•  “E-Wallet is so useful to attract people to use it due to the benefit that they may get out of buying things such as food” – Mr. Brian

•  “E-Wallet is in the mind of millennials since it gives a lot of benefit through promotion, discounts, and free gifts” – Mr. Brian

21

Triangulation

•  H₀ #2: Perceived Ease of Use has no influence to the intention to utilize E- Wallet – is rejected.

•  H₁ #2: Perceived Ease of Use has a big influence to the intention to utilize E- Wallet – is accepted.

•  “It is clearly easy to use E-Wallet in today’s era” – Mr. Liechar

•  “Using E-Wallet is a matter of habit that is derived from our own behavior” – Mr. Daniel

•  “Buying food and beverages are way easier by using E-Wallet” – Mr.

Brian

RESULT AND DISCUSSION

Results and Discussions

Triangulation

•  H₀ #3: People have no impact toward the intention to utilize E-Wallet – is rejected.

•  H₁ #3: People have a huge effect toward the intention to utilize E-Wallet – is accepted.

•  “Superb influence. The people around me are using it so I feel like I want to use it too” – Mr. Brian

•  “The surroundings around a certain people definitely has a big impact to their own personal habit of using E-Wallet” – Mr. Daniel

•  “Big time. It really has a huge impact since Indonesians are mostly following the trend from the West” – Mr. Liechar

CONCLUSION 23

•  Millennials are the one who are in the center of talks in every business

•  The habit of dining out by Millennials is unique and having a huge impact in the food and beverage industry aligning with the development of technology including the digitization of payment

•  Perceived Usefulness, Perceived Ease of Use, and People are the main predictors of the intention to utilize E-Wallet

•  All three predictors are having a huge impact to the intention to utilize E-Wallet with People having the biggest impact

RECOMMENDATION

•  Approach Millennials with a suitable approach;

•  Lifestyle

•  Subjective norms

•  Social influences

•  Attach promotions and discounts

•  Give brief details of how to use it and what benefits they may get out of them

•  Merging the E-Wallet products, to become one, enhancing each other’s market guided by the Government (Berita Satu, 5 Juli 2018)

•  Restaurants can make the guest with E-Wallet more special, making them feel like treated differently, increasing the possibility of a superb word of mouth

FURTHER STUDIES 25

•  Analyze other major age group who are not tech-savvy

•  Do research on the company’s point of view not only from customers’ point of view

•  Other predictors such as safety and complexity (that are not included in 58.1% in this research)

•  Enlarging the size of observation not only food and beverage industry but also other service industry