THE ROLE OF SHOPPING FREQUENCY: PERCEPTION OF VALUE TO ONLINE SHOPPING CONSUMPTION

Abstract

INTRODUCTION:The e-commerce market of Indonesia in 2014 reached USD 8 billion and will continue to increase to USD 24 billion in 2016 (Indonesian E-Commerce Association, 2016). But of the 88 million internet users only 27 percent shopping through e-commerce while the rest is using internet only for social activities (Statista, 2017). Why is that? The researchers stated that the Internet explosion made people euphoria so only used to exist, and interact with socialites in addition, too complicated sites and excessive advertising at the expense of content and lack of understanding of the target audience makes consumers, sometimes reluctant to try it (Burke, 1997; Crockett, 2000; Mitchell, 2000; Overby & Lee, 2006). Cowless et al. (2002) states that the motivation or desired value becomes the consideration for consumers. Consumers make a purchase again because of superior value with an attractive website design (Woodruff, 1997; Overby & Lee, 2006; Yoo et al. 2010). Many offline research states that the perception of value has been shown to influence choice, satisfaction, and loyalty (Cronin et al. 2000), while for online, it began to appear in some marketing research. However, there are still many questions as to whether the perception of customer value is different in the context of online shopping and, if any, to what extent the perception of values is affecting the preference and intent of online shopping. On the other hand, the relationship of value perception to the choice and intention of buying via online also depends on the frequency of consumers shopping through e-commerce (Evans et al. 2001; Liang & Huang, 1998).The main purpose of this study is to analyze the influence of interactive factors and flexibility on the perception of value, as well as the level of satisfaction for e-customer. This study contributes to the literature for previous research by examining the effects of utilitarian value perceptions, hedonic values on preference and purchase intentions and shopper frequency moderation in the context of e-commerce (Overby & Lee, 2006; Chitturi et al. 2008; Childers et al. 2001; Yoo et al. 2010).THEORETICAL BACKGROUND AND HYPOTHESIS DEVELOPMENT:In order to examine the relationship between the perception of value via online we must understand the concept of value and its dimension. Previous research addresses values as merely a trade-off between quality and price or benefits and sacrifices (Cottet & Lichetle, 2006; Bolton & Drew, 1991). Other dimensions of value that scientists and managers must consider are hedonic and utilitarian values (Bolton & Drew, 1991; Grewal et al. 2003; Holbrook, 1994). These two dimensions of value seem to be the most universal (Babin et al. 1994; Babin & Darden 1995; Sheth, 1983).Utilitarian value:The utilitarian value comes from a conscious effort to achieve the desired result (Babin & Darden 1995; Babin et al. 1994). This value is instrumental, functional, and cognitive and represents customer value as a way of achieving goals (Chandon et al. 2000). The utilitarian value is relevant to the use of online shopping such as consideration of buying from the aspects of products, service, and price before actually purchasing (Hoffman & Novak, 1996). The utilitarian value is something distinctive and different from the hedonic value (Overby & Lee 2006; Mathwick et al. 2001). Utilitarian values include more cognitive aspects of attitudes, such as economic value for money (Zeithaml, 1988) and value judgment for convenience and time -saving (Jarvenpaa & Todd, 1997; Teo, 2001). For example, consumers can shop online because of the ease of the website in finding and comparing seller, evaluating the ratio of price/quality, and saving time sources, power and psychology (Yoo, et al. 2010; Overby & Lee, 2006; Grewal et al. 2003; Mathwick et al. 2001).Hedonic Value:Hedonistic values, such as entertainment, exploration, and self-expression (Ailawadi et al. …