CC BY
5
UDC 332; DOI 10.18551/rjoas.2023-11.05
EVALUATION OF DISAPPOINTMENT IN PURCHASING DAILY NEEDS PRODUCTS ONLINE ON THE INDONESIAN ONLINE MARKET: A SURVEY ON GENERATION Z
Suryono Ignatius Agus, Yacobus Aryono, Haryono S.T., Franscisca Brigitta Michelle Yoanna
Faculty of Economics, University of National Development "Veteran" Yogyakarta,
Yogyakarta, Indonesia E-mail: [email protected]
ABSTRACT
E-marketing exposure in the field of online marketing can promote the growth of new and experienced business owners who benefit from the ease of online marketing, as well as the expansion of small and large industries, merchants, and dropship. Due to the Covid-19 pandemic, online sales have increased by 480% very quickly, but the number of online shops in the Indonesian online market has decreased. 13 markets disappeared from the Indonesian online market, both the Indonesian market and foreign markets located in the Indonesian online market. Indonesian online market, this is a big question mark, why is that? In the face of fierce online competition and an abundance of online offerings for goods and services, it is relatively simple for online marketers to conduct online marketing in the hopes of increasing online sales. It is very easy for online marketers to carry out online marketing to maximize online sales with the hope that the market will always be the customer's first choice amidst intense online competition and excessive online product or service offerings. The media makes E-marketing exposure not in accordance with the expectations of online customers. The purpose of this study is to analyze the factors that influence online shopping regret by measuring the effect of online attitudes on prices, online impulsive behavior and product attitudes resulting from continuous online marketing. This study uses a structural equation model to test the hypothesized relationships. The non-probability sampling approach and the purposive sampling method were used to sample the population of this study, which included 182 respondents who had made online transactions in Indonesia. Quantitative multiple regression analysis was used as an analytical tool used to test hypotheses. Based on the results of this study, exposure to e-marketing convenience products has the greatest influence on attitudes towards online products, followed by Attitude toward prices Online, and has the smallest effect on online impulsive behavior. Meanwhile, exposure to e-marketing and online impulsive behavior had the greatest effect on online shopping regret, while Attitude toward price Online had a significant negative effect on online shopping regret. From a practical point of view, online stores must be able to maintain customer retention by reducing online shopping regrets. When planning online advertising and the suitability of advertising content, marketing must emphasize the suitability of advertised online sales products and services for purchasing efficiency advertised product marketing era 4.0 online market marketing environment in Indonesia.
KEY WORDS
Online shopping purchase, attitude, impulsive behavior online, e-marketing exposure.
Initial observation results obtained 235 generation Z who made purchases of daily necessities products online for the last 6 months with a frequency of purchases having purchased daily necessities products online 3 times and had experienced online purchase disappointment, but only 182 generations Z fulfilled the criteria for purchasing daily necessities online, observations were made at online stores in online markets in Indonesia. Generation Z 182 online purchase transactions are only concentrated in a few online stores. This makes the writer interested in researching.
Various conveniences from advances in information technology have really succeeded in pushing online marketing into competition business stricter than offline marketing for both
small industries such as MSMEs and large ones. The growth of online shop entrepreneurs, both carried out by new entrepreneurs in the 4.0 era and offline entrepreneurs then changed their business to online by taking advantage of the various facilities offered by online marketing, these conditions encouraged increasingly fierce competition from online shop entrepreneurs in the online market in Indonesia. The degree of online store rivalry is increasing for her startup in Indonesia, which is one of the nations with the greatest proportion of startups worldwide. According to Startup Ranking data as of June 14 2023, there are 2,482 startups in the country. This number places Indonesia in sixth place in the world, beating Germany and France (https://www.startupranking.com, 2023). This demonstrates the rapid expansion of online stores in Indonesia, which has increased competition both in terms of the number of online stores and between them, as well as the emergence of a number of applications for marketplaces, e-commerce, and marketing that can be used to promote goods or services via the internet.
The ease of making advertisements and online promotions and the tight competition of online shops is one of the reasons that many online advertisements and online promotions in conveying messages to customers are always exaggerated; this is referred to as E-marketing exposure. In addition, the pressure to achieve target sales online that has been determined by an online shop is also one of the causes of E-marketing exposure. Various kinds of complaints that arise as a result of online transactions can be caused by various reasons, it can be from the customer who is not careful in choosing a product, it can also come from the entrepreneur, such as excessive marketing communications. All of which result in regret due to online purchases, the main weakness of online purchases is not being able to see and feel the product directly only through videos or photos, then see online shop ratings and positive and negative reviews in the selected e-WOM online shop.
In order to develop a concept of business strategy, this study aims to quantify the impact of factors such as E-Marketing Exposure, Attitude Towards Product Online, Impulsive Behaviour Online, and Attitude Towards Price Online on customers' regret at online shopping purchases in the Indonesian online market.
LITERATURE REVIEW
Regret from several purchases, particularly post-purchase behaviour, is a factor that customers should not consider. Purchase regret can directly lead to consumer disloyalty, leading to fundamental changes in consumer buying decision behavior. Consumers frequently regret their online purchases, according to prior research (Bhakat and Muruganantham, 2013). Numerous factors, including trouble contacting online merchants and susceptibility to unexpected products, might cause changes in online shopping behaviour and regret (Sarwar et al., 2019). A negative emotional state related with feeling unhappy with a behaviour that was engaged in—in this case, the buying decision—regret is a word that is fairly broad. The concept of regret which is quite broad is a negative emotional state associated with feeling disappointed with a behavior that was carried out, in this case the purchase decision. These negative feelings stem from a person's choice to make a random purchase. Consumers make impulsive purchases since the online market is open 24 hours a day, 7 days a week. Given that there was no prior buying plan, this behaviour frequently creates regret. Several studies continue to empirically examine the relationship between regret and other negative emotions. Jayasimha and Srivastava (2017) explain the difference between regret and disappointment in post-purchase decisions. Jayasimha and Srivastava (2017) found that the two consumer defenses related to disappointment are negative regret but positive disappointment. In contrast, Mattila and Ro (2008) argue that frustration, disappointment and regret which are classified as one emotion can lead to the same response behavior. Parks and Mountains, 2018; Tseng, 2017 focuses on how to reduce the intensity of post-decision regret. In an experimental study of the e-satisfaction of regretful online travelers, Tseng (2017) argues that strong seller evaluations justify consumers' online decisions and, in addition, effectively reduce consumers' post-purchase cognitive dissonance.
The striking difference between offline and online marketing is the ease of delivering products or services to consumers or customers, which encourages business people to compete with each other to win the target market. According to Lubis et al., 2022, this was said. The goal of this action was to leverage internet media to make other marketing efforts and the distribution of products easier (Lubis et al., 2022). Jaman (2012) also made this statement. Electronic marketing, which can be done anywhere and at any time, leverages internet media as a platform to make it simpler for company people to adapt to the target market and lower transaction costs. E-marketing is essentially marketing that makes use of advances in information technology (Xie et al., 2017). The carelessness of e-commerce entrepreneurs stems from the basic fact that consumers and customers cannot choose products directly, but only through content in the form of images or videos that appear in online advertisements and campaigns. Differences in goods and services received by consumers and customers cause negative feelings which are called negative emotions according to Lubis et al., 2022. This is because someone chooses to make purchases that are made randomly or forced to buy. done because there is no other way. Online shopping regret is regret in many online stores, especially in the post-purchase behavior section (Lubis et al., 2022), which should not happen to consumers. Purchase regret can directly lead to consumer disloyalty, leading to fundamental changes in customer buying decision behavior. Previous studies have shown that consumers tend to regret online purchases (Bhakat and Muruganantham, 2013). A negative emotional state that expresses dissatisfaction with the behaviour engaged in, in this case the purchasing decision, regret is a notion that is extremely broad (Lubis et al., 2022).
The change in behavioral aspects through a variety of online marketing media channels, learning and affective processes from existing customer behaviour must continue to be developed in order for Internet marketing to advance (Hollebeek and Macky, 2019). Consumers' e-marketing information awareness and preferences develop before they have the confidence to make online purchasing decisions. The rapid growth of online marketing encourages the rise of strong cognitive or affective consumers who are susceptible to acting impulsively when under pressure from outside forces, such as time constraints or laws (Alloway et al., 2016; Rajagopal, 2020). Benefits These changes drive powerful changes in consumers' cognitive or affective learning processes, such as attitudes toward impulsive online behavior, attitudes toward online products, and attitudes toward prices.
Grigsby, J.L., Jewell, R. D. and Campbell, C. (2017) argue that impulsive purchases can reduce post-purchase regret, which increases customer satisfaction. When customers recall a time when they made a shortsighted choice, they are more satisfied with the customer's recent decision to make an impulse purchase. Market visibility communicates message and value to target market in addition to raising awareness of the product and its price. The goal is to increase consumer desire for the product using a variety of marketing initiatives. Marketers therefore focus on both planned and irrational behaviours, such as impulsive buying. Although previous research has concluded that impulsive buying behavior is influenced by many factors, product or store stimulation is considered as one of the important factors influencing impulsive buying (Miao et al., 2019). Marketers typically employ marketing tactics to gradually raise consumer awareness and buy intent (Mead et al., 2020). However, current technologies that place a focus on content in e-marketing can promote impulse buying even more (Naeem, 2020).
Consumer attitudes towards online products, to analyze the consumer decision making process for the selected product and its impact based on the characteristics of brands/online shops and the characteristics of online consumers. Central to this model is the belief that consumers go through a decision-making process, the complexity of which depends on the nature of the consumer's decision, and that this process is affected by a number of possible variables at various stages. Consumer perceptions of the usefulness of online products are different from traditional products. The enormous volume of e-marketing activity that introduces products to the target market through advertising or sales promotion has a significant impact on consumer cognitive learning and also encourages effective promotion of the qualities of the products that consumers choose to purchase. Product attributes are
anything that can be offered to a market to satisfy a want or need, tradable products include physical goods, services, locations, organizations and ideas (Kotler and Keller 2017). Product features are product features or characteristics that consumers like or hate about those features.
In this study framework, Lubisat al., 2022 is cited. This study examines how dissatisfied consumers are with their online purchases in the Indonesian market.
Figure 1 - Research Framework METHODS OF RESEARCH
Customers who offer convenience goods on Indonesia's online market make up the study's demographic and sample. Purposive sampling is the non-probability sampling methodology that was employed in this investigation, according to Sugiyono (2018). The sample size of Generation Z is 159 respondents. In this study, quantitative analysis is used to test the hypothesis, namely whether or not there is an influence measuring the influence of E-marketing exposure to attitude toward product, attitude toward price online and attitude impulsive behavior online customer online shop in Indonesia, and its influence on regret at online shopping purchase customer marketplace in Indonesia.
RESULTS OF STUDY
The results of the study were processed using SPSS (Ghozali, 2018). H1, H2 and H3 tests are accepted.
Table 1 Coefficients of E-Marketing Exposure towards Attitude Toward Product Online
Coefficients11
Model Unstandardized Coefficients Standardized Coefficients t Say.
B Std. Error Beta
1 (Constant) 2.687 .166 16.207 .000
EExpoX .375 .042 .558 9.022 .000
a. Dependent Variable: ATPZ1
The statistical test findings for Hypothesis 1 demonstrate that everyday online demands have the highest correlation with attitudes towards products. This demonstrates the strength of the impact of the E-Marketing Exposure variable on attitude towards products for online daily needs at 31% or 0.311. Table 1 shows the specific extent of each of these independent factors' influence. The E-Marketing Exposure variables above have a positive and significant effect on attitude toward products for online daily needs. The magnitude of the influence of E-Marketing Exposure on attitude toward products for online daily needs is very large; this shows that the high and easy online advertising or promotion causes many customers to be exposed / attracted by online advertisements and online promotions. These results are in line with research conducted by Lubis et al., 2022.
The statistical test results for hypothesis 2 show that the coefficient of determination for Impulsive Behavior Online is 115% or 0.115 which indicates the magnitude of the influence of the E-Marketing Exposure variable on Impulsive Behavior Online for daily necessities products is low. Table 2 shows the precise degree of influence of each of these independent variables. The E-Marketing Exposure variables above have a positive and significant effect on Impulsive Behavior Online. The magnitude of the effect of E-Marketing Exposure on Impulsive Behavior Online is relatively low; this shows that the relatively high and easy advertising or online promotion does not really change customer attitudes to make impulse buying even though there are lots of online advertisements and online promotions for daily necessities. It is possible that this is because daily necessities are daily necessities so it is difficult to change the attitude of customers to make unplanned purchases. The business strategy for online daily needs entrepreneurs to carry out E-Marketing Exposure of daily necessities products must demonstrate knowledge and impact of these products. These results are in line with research conducted by Lubis at al., 2022.
Table 2 - Coefficients of E-Marketing Exposure towards Impulsive Behavior Online
Coefficientsa
Model Unstandardized Coefficients Standardized Coefficients t Say.
B Std. Error Beta
1 (Constant) 3.152 .200 15.730 .000
EExpoX .242 .050 .339 4.833 .000
a. Dependent Variable: ImplBZ2
Statistical test results for hypothesis 3 show that the coefficient of determination for the attitude toward price of online daily necessities is 269% or 0.269 which indicates the magnitude of the influence of the E-Marketing Exposure variable on the attitude toward price of online daily needs for low daily necessities products. In detail, the magnitude of the influence of each of these independent variables can be seen in table 3. The E-Marketing Exposure variables above have a positive and significant effect on Attitude toward prices for online daily needs. The magnitude of the effect of E-Marketing Exposure on the Attitude toward price of online daily needs is relatively low; this shows that the high and easy advertising or online promotion relatively does not really change customer attitudes to make purchases even though there are many online promotions for daily necessities. Strategy business of daily needs online to carry out E-Marketing Exposure of daily necessities products must demonstrate knowledge and impact of these products. These results are in line with research conducted by Lubis at al., 2022.
Table 3 - Coefficients of E-Marketing Exposure towards Attitude toward price Online
Coefficients11
Model Unstandardized Coefficients Standardized Coefficients t Say.
B Std. Error Beta
1 (Constant) 2.928 .161 18.134 .000
EExpoX .329 .040 .519 8.139 .000
a. Dependent Variable: ATPcOZ3
Statistical test results for hypotheses 4, 5, 6 and 7 statistical test results fork hypotheses 4 to 7 show that the coefficient of determination of the 4 variables influences E-Marketing Exposure, Attitude Toward Product Online, Impulsive Behavior Online, and Attitude toward price Online on Regret At Online Shopping Purchase of 56% or 0.560 which shows the magnitude of the influence of the four variables to regret at online shopping purchase. In detail, the magnitude of the influence of each of these independent variables can be seen in table 4. These results for the E-Marketing Exposure and Impulsive Behavior Online variables have a large positive and significant influence. The effect of these two variables is E-Marketing Exposure and Impulsive Behavior Online in line with research conducted by Lubis at al., 2022.
Table 4 - Coefficients of E-Marketing Exposure, Attitude Toward Product Online, Impulsive Behavior Online, Attitude toward price Online, Regret At Online Shopping Purchase
Coefficientsa
Model Unstandardized Coefficients Standardized Coefficients t Say.
B Std. Error Beta
(Constant) .138 .423 .325 .746
EExpoX .527 .063 .586 8.404 .000
1 ImplBZ2 .582 .066 .463 8.778 .000
ATPZ1 -.169 .081 -.126 -2.096 .037
ATPcOZ3 -.168 .082 -.119 -2.044 .042
a. Dependent Variable: RgtOSPY
This shows that relatively high and easy online advertising or promotion is able to change the attitude of customers to do so through impulse buying, which results in regret buying daily necessities online. Strategy Business entrepreneurs daily needs online in doing E-Marketing Exposure and Impulsive Behavior Online Daily needs products to show knowledge, the real impact of these products and after-sales service online, so that there is no disappointment in purchasing daily needs products. Customer dissatisfaction with the purchase of daily needs products that are felt by customers as following:
Table 4 - Average Rating of Online Customer Disappointment Products for daily needs
Disappointment Description Rank
The item I received does not match the appearance of online advertisements / promotions 3.81
Delivery time 3.74
Goods received damaged 3.21
Hurry to buy because urgent needs 3.57
Item received not according to the specifications that I chose 3.34
Process Online payments difficult/impractical 3.23
How difficult do online purchase returns 2.82
Fraud online purchase the goods received are 100% 3.12
Online prices cheaper than offline 2.81
Forced to buy products online because it has high usability rate, no offline 3.73
Inappropriate with my expectations 3.47
There are not many alternative products 3.64
I was in a hurry to buy because discount deadline 3.79
Forced because have high benefits 3.69
No need lengthy decision-making process 3.46
Done spontaneously / in a hurry 3.34
However, for the attitude toward product online and attitude toward price online variables, the regret at online shopping purchase has a significant negative effect. The inverse effect is due to the limit on the number of products that customers can buy and the time limit for purchasing at discounted prices for daily necessities; this is not in line with research conducted by Lubis at al., 2022.
CONCLUSION
Strategic recommendations from this study for online shop entrepreneurs who sell daily necessities products in an effort to suppress online customer disappointment of daily necessities products in the online shop market in Indonesia must be in designing marketing exposures for the suitability of advertised products with advertised product performance, suitability the product that the customer chooses from the product sent to the customer should not be different considering that there are many types of daily necessities products with almost the same degree of similarity, the length of time for delivery of daily necessities must receive special attention, because the products purchased are products of daily necessities.
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