TOWARDS THE INTENTION TO PURCHASE ON E-COMMERCE IN JAKARTA.
Case study of Tokopedia.
By Prisca Ivana
11603062
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION -
HOTEL AND TOURISM MANAGEMENTCONCENTRATION FACULTY OF BUSINESS AND COMMUNICATION
SWISS GERMAN UNIVERSITY The Prominence Tower
Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia
July 2020
Revision after Thesis Defense on July 07
th2020
Prisca Ivana STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Prisca Ivana
_____________________________________________
Student Date
Approved by:
Robert La Are, S.ST, M. Par
_____________________________________________
Thesis Advisor
Date
Dr. Nila K. Hidayat,S.E., MM
_____________________________________________
Dean Date
Prisca Ivana ABSTRACT
The Impact of User Generated Content (online review) towards
The Intention to Purchase on E-Commerce in Jakarta. Case Study of Tokopedia.
By Prisca Ivana
Robert La Are, S.ST, M. Par, Advisor
SWISS GERMAN UNIVERSITY
The existence of internet has taken over most of the traditional way to do things.
Internet as well provides convenience towards all industries. For example, the emergence of e-commerce Tokopedia since 10 years ago makes purchase and selling goods easier and evenly. Goods are able to be sent all over the world in just one click.
However, due to online market, goods are not able to be touched and observed. User Generated Contents or can be called as online reviews play an important role in customers purchase decisions. Previous experienced shared on online helps potential customers to predict and have a view over the product. The model used in this study to measure the variable of UGC is Perceived Credibility and Perceived Usefulness as determinants of the Intention to Purchase on E-Commerce Tokopedia. The results found that Perceived Credibility had a significant influence towards the intention to purchase as well as the Perceived Usefullness. From this finding, it provides the recommendation for both management company and future research.
Keywords: User Generated Content, Online Reviews, Technology Acceptance Model,
Intention to Purchase, e-commerce.
Prisca Ivana
© Copyright 2020
by Prisca Ivana
All rights reserved
Prisca Ivana DEDICATION
This research study is dedicated to my beloved family who continuously provide love
and support. Moreover, I dedicated this work to support the economy growth in the
country I am proud of, Indonesia.
Prisca Ivana ACKNOWLEDGEMENTS
First of all, I sincerely thank everyone that has been helping me until this work submitted.
To Jesus that has been pouring bless on me every day until today.
For Swiss German University who provide the major of International Hotel and Tourism Management.
For my family who give me daily things needed and make sure I am not going through hard times. Thank you for the endless mental and physical support and encouragement towards me to achieve my dreams.
I would like to give my sincere gratitude towards my thesis advisor, Mr Robert La Are who guides me since the first year until my last year. Also, the time spent to teach me things to do for my thesis even though through online calls.
I would like to send gratefulness towards my lectures, Ms. Nila K.Hidayat ; Ms Munawaroh Zainal ; Mr. Esa Mbouw and much more. A big thank you for teaching us class of 2020 for 4 years, may your kindness be repaid by God.
To all my bestfriends that always able to help me during the 4 years, we went through ups and downs. This is my second acknowledgements for you guys! Thank you ladies and gentleman.
Thank you everyone!
Prisca Ivana TABLE OF CONTENTS
Page
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
TABLE OF CONTENTS ... 7
LIST OF FIGURES ... 10
LIST OF TABLES ... 11
CHAPTER 1 – INTRODUCTION ... 12
1.1 Background ... 12
1.2 Research Problem ... 16
1.3. Research Questions ... 17
1.4. Research Objectives ... 18
1.5. Scope and Limitation ... 18
1.6. Significant Study ... 19
1.7. Study Outline ... 19
CHAPTER 2 - LITERATURE REVIEW ... 20
2.1. Conceptual Framework ... 20
2.2. Introduction ... 21
2.3. E-commerce ... 23
2.3.1. Marketing ... 27
2.3.2. Online marketing (electronic marketing) ... 28
2.3.3. Social Media ... 29
2.4. User Generated Content (UGC) ... 30
2.5. Theory ... 32
2.5.1.Perceived Credibility ... 32
2.5.2. Perceived Usefulness ... 33
2.6. Consumer Behavior ... 34
2.6.1. Characteristics of Consumer Behaviour ... 35
2.7. Intention to Purchase ... 37
2.7.1. Culture ... 37
Prisca Ivana
2.7.2. Trust ... 37
2.7.3. Consumers Purchase Decisions Process ... 38
2.8. Previous Study ... 41
2.9. Study Differences ... 48
2.10. Research Model ... 49
2.11. Hypothesis ... 49
CHAPTER 3 – RESEARCH METHODS ... 50
3.1 Introduction ... 50
3.2. Unit Analysis/Unit Observation ... 51
3.3. Sampling Design ... 52
3.3.1. Population ... 52
3.3.2. Sampling Method... 53
3.3.3. Sampling Size ... 54
3.4. Type of Data and Collection Method ... 55
3.4.1. Type of Secondary Research Data ... 55
3.4.1.1 Secondary Research ... 55
3.4.1.2. Primary Research ... 56
3.4.2. Data Collection Method ... 57
3.5. Variable Operationalization ... 58
3.6. Data Processing Procedure ... 63
3.6.1. Pre-test ... 63
3.6.2. Post Test ... 63
3.6.3. Validity Test ... 63
3.6.4. Reliability Test ... 64
3.7. Data Analysis Technique ... 65
3.7.1. Classical Assumption Test ... 65
3.7.1.1. Normality Test ... 65
3.7.1.2. Heteroscedasticity test ... 65
3.7.1.3. Multicollinearity Test ... 66
3.7.1.4. Multiple Linear Regression Analysis ... 66
3.7.1.5. Hypothesis Test ... 67
3.7.2. Type of data analysis ... 68
3.7.2.1. Descriptive Data Analysis ... 68
CHAPTER 4 – RESULTS AND DISCUSSIONS ... 69
4.1 Brief Company Background ... 69
4.2. Pre - test Result ... 70
4.2.1. Validity Test ... 70
Prisca Ivana
4.2.2. Reliability Test ... 72
4.3. Post Test Results ... 73
4.3.2. Validity Test ... 79
4.3.3. Reliability Test ... 80
4.3.4. Descriptive Statistics Analysis ... 81
4.3.5. Classical Assumption Test ... 83
4.3.5.1. Normality Test ... 83
4.3.5.2. Heteroscedasticity Test ... 85
4.3.5.3. Multicollinearity Test ... 86
4.3.6. Regression Analysis ... 87
4.3.6.1. Hypothesis Test ... 87
4.3.6.2. Model Summary ... 90
4.3.6.3. Contribution per Variable towards the Dependent Variable ... 91
4.4. Discussion ... 91
CHAPTER 5 – CONCLUSIONS AND RECCOMENDATIONS ... 93
5.1. Conclusions ... 93
5.2. Recommendations ... 94
5.2.1. Recommendation for Managerial Implication ... 94
5.2.2. Recommendation for Future Research ... 95
GLOSSARY ... 97
ABBREVIATION ... 98
REFERENCES ... 99
APPENDICES ... 108
Appendix 1 - Questionnaire ... 108
Appendix 2 - Questionnaire’s Post Test Answers ... 115
Appendix 3 – Tokopedia User Interface ... 120
CURRICULUM VITAE ... 122
Prisca Ivana LIST OF FIGURES
Figures Page
1. DISTRIBUTION INTERNET USERS IN INDONESIA ... 12
2. NUMBERS OF INTERNET USERS IN INDONESIA (IN PERCENTAGE) ... 13
3. SAMPLE OF RATING ON TOKOPEDIA ... 15
4. SAMPLE OF REVIEWS ON TOKOPEDIA ... 16
5. FLOW CHART OF THE LITERATURE REVIEW ... 22
6. INDONESIA’S TOP E-COMMERCE WEBSITES ... 23
7. E-COMMERCE DETAIL ... 25
8. THE SCOPE OF MARKETING MIX ... 28
9. FRAMEWORK OF E-MARKETING ... 28
10. AREAS OF ONLINE MARKETING ... 29
11. MOST ACTIVE SOCIAL MEDIA PLATFORMS ON 2019 ... 30
12. CONSUMERS PURCHASE DECISIONS PROCESS ... 38
13. RESEARCH MODEL ... 49
14. STAGES IN THE DEVELOPMENT OF A QUESTIONNAIRE ... 51
15. TOKOPEDIA MASCOT AND LOGO ... 69
16. RESPONDENTS’GENDER ... 73
17. RESPONDENTS’AGE ... 74
18. RESPONDENTS’OCCUPATION ... 75
19. RESPONDENTS’DOMICILE ... 76
20. RESPONDENTS’MONTHLY INCOME ... 77
21. FREQUENCY RESPONDENTS OF USING TOKOPEDIA ... 78
22. NORMALITY TEST RESULT (HISTOGRAM) ... 84
23. NORMALITY TEST RESULT (P-PLOT) ... 84
Prisca Ivana LIST OF TABLES
Table Page
1. APPLICATIONS USED IN MOBILE PHONE ... 14
2. TOP WEBSITES IN INDONESIA ... 24
3. TABLE OF PREVIOUS STUDY ... 47
4. VARIABLE OPERATIONALIZATION ... 62
5. CRONBACH’S ALPHA ... 65
6. VALIDITY OF PRE-TEST RESULT (X AND Y) ... 71
7. RELIABILITY OF PRE-TEST RESULT (X AND Y) ... 72
8. VALIDITY OF POST TEST RESULT (X AND Y) ... 79
9. RELIABILITY OF POST TEST RESULT (X AND Y) ... 80
10. DESCRIPTIVE STATISTICS ANALYSIS FOR X1(PC) AND X2(PU) ... 81
11. DESCRIPTIVE STATISTICS ANALYSIS FOR Y(PI) ... 81
12. NORMALITY TEST RESULT (MONTE CARLO) ... 83
13. HETEROSCEDASTICITY TEST RESULTS X1 AND X2(SPEARMAN METHOD) ... 85
14. MULTICOLLINEARITY TEST RESULTS ... 86
15. MULTIPLE LINEAR REGRESSION TEST EQUATION ... 87
16. T-TEST RESULTS ... 88
17. T-TEST RESULTS ANALYSIS ... 89
18. F-TEST RESULT ... 89
19. HYPOTHESIS TEST SUMMARY ... 90
20. SUMMARY OF REGRESSION TEST ... 90
21. INDEPENDENT VARIABLES CONTRIBUTION PERCENTAGE ... 91
