EMPIRICAL STUDY OF PURCHASE INTENTION AND BEHAVIOR OF E-COMMERCE CONSUMERS IN INDONESIA

Abstract

E-commerce in Indonesia is currently growing as consumers make an increasing number of online purchases, making the competition fiercer between e-commerce business players in the country. Despite this growth, e-commerce in Indonesia faces challenges remaining to their development such as a gap in internet penetration between rural and urban areas. To win the competition among all e-commerce businesses and face the existing challenges, it is necessary to determine the best strategy to retain current consumers along with getting more and more consumers. Thus, this study aims to better understand the behavior of e-commerce consumers in Indonesia by developing a structural model of purchase intention and behavior based on an adaptation of the unified theory of acceptance and use of technology 2 (UTAUT2) model, with input from other relevant theories and interviews conducted in the country. Data from questionnaires completed by 400 e-commerce consumers are analyzed using covariance-based structural equational modeling (CB-SEM). The CB-SEM analysis finds that purchase intention is significantly influenced by these six factors: facilitating conditions, perceived website quality, security, convenience, economic reasons, and social influence. Furthermore, purchase intention significantly influences the purchase behavior of consumers. Conversely, three factors considered in the study are found not to significantly influence purchase intention: hedonic motivation, variety, and delivery factors. These results help e-commerce businesses to consider important factors when determining key factors influencing consumer purchase intentions and behavior.