A Study of Factors Influencing the Adoption of Online Shopping in Indonesia

Abstract

With the rapid pace of adoption, e-commerce has become an integral part of people's life and seems to have a bright business future to be a dominant alternative shopping channel. Therefore, consumer's intention to adopt e-shopping has become an important issue for many e-tailers. This study examines factors that affect intention to e-shop by Indonesians, using the structural equation model and hierarchical multiple regression. The model is developed based on technology acceptance model (TAM) which includes perceived usefulness, perceived ease of use and intention to use, combined with e-shopping quality as a predictor and perceived risk and trust as moderators. The results shows that e-shopping quality tends to have positive impact on perceived usefulness and perceived ease of use. The study outcome supports TAM which means perceived ease of use strongly affects perceived usefulness, perceived ease of use and perceived usefulness have significant impact on intention to e-shop. Additionally, perceived risk tends to negatively moderate the relationship between perceived usefulness and intention to e-shop, as well as the relationship between perceived ease of use and intention to e-shop. However, it is found that trust has no moderating effect. A throughout understanding of the findings can assist business practitioners’ including e-tailing and supportive industry (e.g., web designer) to understand Indonesian consumer adoption to e-shop.