Abstract
The emergence of the Internet has influenced business methods in the world, which made online shopping has become popular due to its practical strengths. Students are one of the potential markets of online shopping in Indonesia. This research investigates the factors influencing university students’ online shopping behaviour in Surabaya as one of the fastest-growing cities in Indonesia, an important issue that has never been explored. The survey dataset is analyzed by using Structural Equation Modeling-Partial Least Squares (SEM-PLS) as well as PLS Predictive-Oriented Segmentation (PLS-OLS) to group the students based on their online behaviour. Both methods are applied due to the fact that the sample size is relatively small. The analysis shows that the students’ online shopping behaviour is significantly influenced by enjoyment, perceived risk, and social influence. Clustering with PLS-POS leads to three segments of students based on behaviour: those mostly influenced by social influence and perceived risk, those influenced by enjoyment and website quality, and those influenced by website quality and trust and security. These results can be a meaningful knowledge and input for the online business owners in Indonesia in designing their marketing strategy.
Highlights
The Internet has played an important role in daily lives, such as sending messages, other communication, acquiring information, playing games The Internet has introduced the simplicity of doing real-time online shopping with complete features such as looking at the details of the products, price evaluation and comparison, quality assessment, choosing the service type, and processing the payment (Katawetawaraks & Dan Wang, 2011)
Based on this analysis, we found that most of the online shoppers were female students who spent about 100,000–200,000 IDR for purchasing fashion products at Shopee, which was their favourite platform
Clustering the students using Partial Least Squares (PLS)-POS revealed that there were three different segments related to online shopping behaviour
Summary
The Internet has played an important role in daily lives, such as sending messages, other communication, acquiring information, playing games The Internet has introduced the simplicity of doing real-time online shopping with complete features such as looking at the details of the products, price evaluation and comparison, quality assessment, choosing the service type, and processing the payment (Katawetawaraks & Dan Wang, 2011). Online shopping provides more information and alternatives to customers about products and price comparisons, as well as providing convenience and simplicity in finding something online. It has been proven to give more satisfaction to modern consumers with regard to convenience and saving time (Butler & Dan Peppard, 1998; Li & Dan Zhang, 2002). Some consumers feel inconvenience with online shopping due to distrust, which leads to a negative influence on consumer online shopping behaviour (Katawetawaraks & Dan Wang, 2011). Consumer behaviour has become a focus in many research studies, in particular in the marketing field, because it can significantly support the company’s strategy (Veronika, 2013)
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