CC BY
13
UDC 332; DOI 10.18551/rjoas.2023-06.12
FACTORS AFFECTING ONLINE PURCHASE INTENTION AND PURCHASE DECISION OF ORGANIC VEGETABLES: A CASE STUDY OF AGRIOO SEMARANG PLATFORM
Fajri Fatikhah Nurul*, Ekowati Titik, Setiadi Agus
Study Program of Agribusiness, Faculty of Animal and Agricultural Sciences, Diponegoro University, Semarang, Central Java, Indonesia *E-mail: [email protected]
ABSTRACT
Organic vegetables are commonly found in shopping centers and supermarkets but are difficult to find in traditional markets, so it is difficult for people to reach them. Now a new method of selling organic vegetables through online platforms has been developed, making it easier for consumers to reach. The opportunity for marketing organic vegetables online is very large nowadays, especially since the use of the internet in Indonesia is always increasing from year to year. Purchasing in e-commerce will also make it easier for consumers to choose the organic vegetables they need. One of the online platforms for shopping for organic vegetables in Semarang is AGRIOO. Purchase intention in a webshopping environment will determine the power of consumers to make purchases online. This study aims to analyze the factors that influence the intention and purchase of organic vegetables at AGRIOO Semarang City. This study uses the SEM-PLS method. The results showed that the quality of information affects purchase intention with a p-value of 0.001 <0.5. The study also shows the results that attitude variable (0.000), e-WOM (0.012), and price perception (0.003) affect purchase intention and purchase intention (0.000) affects consumer purchase decisions. The system quality does not affect purchase intention.
KEY WORDS
Purchase intention, purchase decision, organic vegetables, SEM-PLS, e-commerce, online shopping.
Organic farming is needed to create sustainable farming systems that use organic materials from nature to avoid the negative impacts of conventional farming (Rahman et al., 2021). In line with the development of organic farming systems in Indonesia, the lifestyle of consuming organic vegetables is also increasing.. In addition, organic vegetables are one of the people's choices to achieve a healthy life, so that the level of consumption of organic vegetables increases. The main reason people consume organic vegetables is because they know the benefits of organic vegetables which are good for health (Anggiasari et al., 2016).
Organic vegetables can be found in shopping centers/supermarkets but are difficult to find in traditional markets, so it is difficult for people to reach them. However, now a means of selling organic vegetables through online platforms has developed, making it easier for consumers to reach. The opportunity for marketing organic vegetables online is very large nowadays, especially since internet use in Indonesia is always increasing from year to year. The results of the (Asosiasi Penyelenggara Jasa Internet Indonesia, 2022) survey, the number of internet users in Indonesia is 196.71 million people out of a total of 266.91 million Indonesians or 73.7%. In the agricultural sector, online retail has emerged as an intermediary for farmers to sell their crops. According to (Rerung, 2018) current technological developments encourage manufacturers to use the internet as a marketing tool or marketplace. Purchasing organic vegetables in an e-commerce system will also make it easier for consumers to choose the organic vegetables they need. Consumers do not need to spend a lot of energy when shopping online; just by looking at the website they can immediately make a purchase transaction. The online buying process has different steps like physical buying behavior. The peculiarity of the buying process via the internet is when potential consumers use the internet and search for information related to the goods or services they need. The internet with all its sophistication can capture consumers who are
interested in organic vegetables and display their needs. Thus, a mutually beneficial relationship between producers and consumers is established.
One of the online platforms for shopping for organic vegetables in Semarang is AGRIOO. AGRIOO prepares products and delivers products within 24 hours from partner farmers directly to customers' homes. AGRIOO wants people to get good quality products directly from the farmers who grow them. So AGRIOO brings the concept of agriculture to the table. AGRIOO's products are sourced directly from the Tranggulasi Farmers Group, Kopeng, Central Java. AGRIOO sells more than 50 kinds of organic vegetables and various other agricultural products such as fresh fruit, fresh fish, sea fish, chicken, beef, spices, and so on. AGRIOO sells organic vegetables and other agricultural products on platforms in the form of websites, WhatsApp, Tokopedia, Blibli.com, and social media as a means of promotion and dissemination of information. AGRIOO is an online organic vegetable shopping platform in the city of Semarang which still exists today. As it is well known that large platforms such as those that have dominated the market first experienced significant difficulties and had to stop their operations. The challenge of selling organic vegetables directly to end consumers was also faced by AGRIOO, especially after the COVID-19 pandemic, but with strong determination and consumer loyalty, AGRiOo has survived to this day.
This explanation shows that the opportunities for marketing organic vegetables online are very large, especially at AGRIOO. The existence of platforms and social media can help the process of marketing organic vegetable products. Before making a decision, consumers in making purchases are always based on purchase intention. Purchase intention in a webshopping environment will determine the power of consumers to make purchases online or not. Therefore it is important for the author to examine the factors that influence the intention and decision to buy organic vegetables online (a case study on the AGRIOO platform).
METHODS OF RESEARCH
The researchers used quantitative research with survey methods (Sugiyono, 2018) states that the quantitative method is a research method based on a certain population or sample, which is carried out by collecting data using several research instruments, and data analysis is quantitative or statistical, aiming to test the hypotheses that have been set. Data collection is carried out using questionnaire with closed questions. A list of closed questions was prepared using a Likert scale. There are four alternative answers provided on a Likert scale, namely Strongly Agree (4), Agree (3), Disagree (2), and Strongly Disagree (1).
Figure 1 - Hypotheses Model
This study uses 7 variables, namely system quality, information quality, product attitudes, electronic word of mouth (e-WOM), price precieve, purchase intention and consumer purchase decision, so 20 x 7 = 140, which means 140 respondents are needed. Respondents from this study are people who have accessed and shopped for organic vegetables on the AGRIOO platform. Respondents live in the city of Semarang. The
distribution of the questionnaire was carried out in two ways, the first was to visit the respondent directly at home and the second was to send the questionnaire online using the Google form. The data that has been collected is analyzed using SEM-PLS to see their effect on consumer purchase intentions and decisions. The hypotheses model can be seen in Figure 1.
Based on this model, the research hypotheses can be built as follows:
• H1: System quality affects the purchase intention to buy organic vegetables at AGRIOO;
• H2: Information quality affects the purchase intention to buy organic vegetables at AGRIOO;
• H3: Attitudes affect the purchase intention to buy organic vegetables at AGRIOO;
• H4: Electronic Word of Mouth (e-WOM) affect the purchase intention to buy organic vegetables at AGRIOO;
• H5: Perceived price affect the purchase intention to buy organic vegetables at AGRIOO;
• H6: Purchase intention affects the consumer purchase decision to buy organic vegetables at AGRIOO.
RESULTS AND DISCUSSION
Based on the summary in Table 1, there are 140 respondents, with 128 (91.42%) women being more dominant than 12 (8.58%). The majority of respondents are of productive age between 31-40 years (54.28%) followed by an age between 21-30 years (42.14%). Diploma and Bachelor degree is the education degree with the most respondents (70.00%) followed by high school degree (28.57%). Based on income level, respondents have monthly income IDR >3.000.000 (65.72%) followed by an income range of IDR >2.000.000 -2.500.000 (12.14%). The majority of respondents work as housewives (41.43%) followed by employee (27.86%).
Table 1 - Characteristics of research respondents
Characteristic Description Total Percentage (%)
Gender
Male 12 8.58
Female 128 91.42
Age (year)
21-30 59 42.14
31-40 76 54.28
41-50 4 2.87
51-60 1 0.71
Education
High School 40 28.57
Diploma / Bachelor 98 70.00
Master / Doctoral 2 1.43
Monthly Wage (IDR)
< 1.000.000 10 7.14
>1.000.000-2.000.000 14 10.00
>2.000.000-2.500.000 17 12.14
>2.500.000-3.000.000 7 5.00
>3.000.000 92 65.72
Profession
Student 7 5.00
Civil Servants 8 5.71
Employee 39 27.86
Housewife 58 41.43
Entrepreneur 28 20.00
In Table 2 the usability indicator system quality variable shows that more than half of the respondents strongly agree (55.0%) and agree (42.1%). Respondents agree that the AGRIOO platform system is easy to use. AGRIOO is considered easy to access and has fast access speed (fast loading) making it easier for users to use the AGRIOO platform. The content presented on the platform is of high quality and useful for users.
Based on Table 2 majority of respondents agree on the information quality indicators of AGRIOO is relevant (50.0%) followed with strongly agree (47.1%). Respondent mostly
strongly agree with statement that the information in the AGRIOO platform is accurate (48.6%). Indicator timely information and complete information has the same response. Its mean that respondents believe that the quality of information is important for someone to shop online and they can get it from the AGRIOO platform.
Table 2 - Assessment of respondents' answer to System Quality and Information Quality
Indicator Statement SA Score (%) A D SD
SQ 1 In my opinion, the AGRIOO platform is easy to use / operate 55.0 42.1 2.2 0.7
SQ 2 In my opinion, the AGRIOO platform is easy to access 53.6 42.1 4.3 0
SQ 3 For me, the AGRIOO platform is fast to access (fast loading) 40.0 53.6 6.4 0
SQ 4 I realize that the content on the AGRIOO platform is of high quality 38.6 57.1 4.3 0
IQ 1 The information in the AGRIOO platform is relevant 47.1 50.0 2.9 0
IQ 2 The information in the AGRIOO platform is accurate 48.6 47.8 3.6 0
IQ 3 I think the AGRIOO platform delivers information in a timely manner 42.2 50.0 7.8 0
IQ 4 In my opinion, the information on the AGRIOO platform is complete. 25.0 63.6 10.7 0.7
The attitude variable has 3 indicators where all three achieve results that strongly agree. Based on Table 3, respondents strongly agree that organic vegetables are numerous and they invest organic vegetables are good for health (65.7%). The majority of respondents are highly motivated to shop for organic vegetables (53.6%) and respondents are very interested in shopping for organic vegetables (48.6%). These results are in line with those presented by (Kroenke et al., 2018). They say that in everyday life, humans process information from existing data. An individual can receive and process information depending on the capabilities of each individual. However, quality data also helps individuals receive and process information. The characteristics of the data needed to produce quality information are relevant, accurate, timely, and complete.
Table 3 - Assessment of respondents' answer to Attitude, E-WOM and price perceive
Indicator Statement Score (%)
SA A D SD
A 1 The benefits of organic vegetables are numerous and I believe organic vegetables are good for health 65.7 31.4 2.9 0
A 2 I like and am motivated to consume organic vegetables 53.6 40.7 5.7 0
A 3 I am interested in buying organic vegetables 48.6 47.1 4.3 0
EW 1 I think, it is important to look at buyer reviews before shopping online 67.9 30.0 2.1 0
EW 2 I always read buyer reviews before shopping online 65.0 33.6 1.4 0
EW 3 Positive or negative comments from previous buyers will influence me. 51.4 42.9 5.7 0
PP 1 The price of organic vegetables on the AGRIOO platform is quite affordable 46.4 47.9 5.0 0.7
PP 2 I believe that the price and quality of organic vegetable products in AGRIOO are appropriate 42.1 54.3 3.6 0
PP 3 I think, the price of organic vegetables on the AGRIOO platform is competitive compared to other places 35.7 60.0 3.6 0.7
PP 4 In my opinion, the price of organic vegetables on the AGRIOO platform is in accordance with the benefits you get. 28.6 67.8 3.6 0
Attitude is one of the most important predictors of the intention to buy organic food and consumers in general have a positive attitude towards these foods due to two issues: increasing attention to quality and food safety, showing an increase in the demand for healthy, nutritious and safe foods and the development of social responsibility affecting their purchasing behavior (Savelli et al., 2017). Based on Table 3, the E-WOM variable, which has 3 indicators, also received responses from the majority of respondents who strongly agreed. Respondents thought it was very important to see previous customer reviews before making a purchase. Previous customer reviews will also have an impact on respondents. Respondents will buy or not an item influenced by previous customer comments. In line with this study, research of (Prasad et al., 2019) has indicated that EWOM messages are an important means by which consumers may get information about the quality of the service or product. The effect of online product reviews on two online bookshops was studied, and comparative sales analysis was carried out on publicly available data of these online bookstores. Results indicated that such online communications (EWOM) significantly influenced the purchase intention of consumers.
Table 4 - Assessment of respondents' answer to Purchase Intention and Consumer Purchase
Decision
Indicator Statement SA Score (%) A D SD
PI 1 I know and know the benefits of organic vegetable products 53.6 45.7 0.7 0
PI 2 I have an urgu to buy organic vegetables 37.9 57.1 5.0 0
PI 3 I like doing information searches and reading about organic vegetables 25.0 65.0 10.0 0
PI 4 I am interested in buying organic vegetables on the AGRIOO platform 39.3 52.8 7.9 0
CPD 1 I have confidence to buy organic vegetables on the AGRIOO platform 45.7 45.0 9.3 0
CPD 2 I am determined to buy organic vegetables on the AGRIOO platform 35.0 50.7 14.3 0
CPD 3 I will be buying organic vegetables on the AGRIOO platform in the near future 29.3 54.3 16.4 0
CPD 4 I will recommend friends to buy organic vegetables on the AGRIOO platform 33.6 62.1 4.3 0
This study has 2 endogenous variables; the indicators in the purchase intention variable get the majority of agreed responses from consumers. The prices perceive variable in Table 3 shows the results of all indicators getting an agreeable response. Respondents agree that the price of organic vegetables on the AGRIOO platform is quite affordable (47.9%). They also believe that the price of organic vegetables on the AGRIOO platform is in accordance with the benefits they get (67.8%). Research conducted by (Sari and Setiaboedhi, 2017) states that the characteristics of organic products are the lack of immediate benefits and relatively high prices which result in a lower bargaining position relative to substitute products. Price can show the brand quality of a product, where consumers have the notion that high prices usually have good quality so that pricing becomes important. At a certain price level, if the benefits felt by consumers increase, the value will also increase so that the consumer's decision to make purchases of the product will increase.
Figure 3 - Measurement Model Evaluation
Respondents are interested in buying organic vegetables on the AGRIOO platform (52.8%) and respondents are interested in finding out about organic vegetables (65.0%). The consumer purchase decision variable has 4 indicators that get an agree response from the respondents. Respondents will buy organic vegetables at AGRIOO in the near future (54.3%) and respondents will recommend AGRIOO to friends (62.1%). (Listyowati et al, 2020) stated that purchase intention as the first endogenous latent variable affects purchase decisions as
the second endogenous latent variable, meaning that increasing consumer intentions to buy organic vegetables online will have an impact on increasing consumer decisions to buy organic vegetables online. The interpretation of this outer model measurement is that an indicator is classified as valid if the loading factor value is > 0.7. The results presented in Figure 3 which shows that there are 3 indicators whose value is < 0.7. These indicators are IQ4, PI3, and PP 4 and these three indicators must be excluded. After removing all indicators that do not meet the requirements, the outer model that meets the standards is shown in figure 4.
The indicator test in SEM-PLS is also called the Outer Model Analysis (Measurement Model) used to see the level of validity and reliability of the indicators used in the research model. Validity can be seen from loading factor value and the Average Variance Extracted (AVE).. Reliability can be seen from Composite Reliability and Cronbach's Alpha. Figure 4 shows that this model meets the criteria and has good validity. Validity is also seen from the AVE value which should be > 0.5. Determining good reliability is if the composite reliability value is > 0.7 and the Cronbach alpha value is > 0.6. This model meets all the criteria and all values are presented in Table 5. It shows that this model has good validity and reliability.
Table 5 - Construct Validity and Reliability
Variable
Cronbach's Alpha
Composite Reliability
Average Variance Extract (AVE)
System Quality
Information Quality
Attitude
E-WOM
Price Perceived
Purchase Intention
Consumer Purchase Decision
0.821 0.904 0.789 0.776 0.791 0.708 0.806
0.883 0.940 0.877 0.871 0.878 0.837 0.873
0.655 0.839 0.703 0.692 0.706 0.631 0.633
Figure 4 - Final Outer Model Result
Evaluation of Assessment on the Structural Model Test (Inner Model). In assessing the structural model with SEM-PLS it can be seen from the R square value for each endogenous latent variable as the predictive power of the structural model. Changes in the R-Square value are used to explain the effect of certain exogenous latent variables on endogenous
variables, whether they have a substantive effect. The results of the SEM-PLS R square represent the total variance of the construct described by the model.
In addition to looking at the size of the R square, an evaluation of the PLS structural model can also be done with predictive relevance or Q square. The coefficient of determination on the purchase intention variable is 0.799 which indicates that 79.9% of purchase intention can be explained by system quality, information quality, attitude, e-WOM, and price perception variables. The coefficient of determination of the consumer purchase decision variable is 0.714 or 71.4% of the consumer purchase decision explained by purchase intention.
Table 6 - Bootstrapping Result
T-Statistic P-values Path Coefficients
System Quality ^ Purchase Intention 0.373 0.709 -0.035
Information Quality ^ Purchase Intention 3.110 0.002 0.286
Attitude ^ Purchase Intention 3.699 0.000 0.285
E-WOM ^ Purchase Intention 2.400 0.017 0.209
Price Perceived ^ Purchase Intention 3.050 0.002 0.258
Purchase Intention ^ Consumer Purchase Decision 32.348 0.000 0.845
System quality does not affect purchase intention
Bootstrapping analysis is used to answer the hypothesis shown in Table 6. The relationship between system quality and online purchase intention of organic vegetables at AGRIOO, produces a t-statistic of 0.373 < 1.96. These results can be said that the t-statistic value is smaller than alpha, while the p-value is 0.709 > 0.50 indicating that the quality of the system is not significant or does not have an influence on purchase intention organic vegetables at AGRIOO. The results of this study are in line with research conducted by (Napitupulu and Kartavianus, 2014) which states that system quality and website appearance have no effect on consumer purchase intentions and decisions. They claim that consumers who are not interested in technology will not pay attention to the quality of the system or site.
Information quality directly has a significant effect on purchase intention
The results of the hypothesis tests listed in Table 6 state that H2 is accepted. The information quality variable directly influences purchase intention because it has a p-value < 0.5 (0.002) and a T statistic > 1.96 (3.110). Respondents in making online purchases will be affected by the quality of information held by the platform. The higher the quality information held by AGRIOO, the higher the consumer's intention to buy organic vegetables.
The results showing that the information quality has an effect on the intention to buy organic vegetables at AGRIOO online is in accordance with research conducted by (Chen, 2013) that online purchase intentions are directly influenced by one of them is the information quality. Chen in the conclusion of his research also stated that "Information quality is an important antecedent for measuring the success of an online shopping system. The rationale for these results shows that sellers can benefit from the existence of the internet for online shopping to increase consumer purchase intentions. This study is supported by (Kumar and Smith, 2018) confirms that the higher accessibility of information provided by social media applications has a major impact on consumer purchase intentions.
Attitude directly has a significant effect on purchase intention
Attitudes have an impact on purchase intention, p-value < 0.5 (0.000) and the t-statistic > 1.96 (3.699). The higher the consumer's attitude towards the product, the higher the purchase intention so that H3 is accepted. The results of this study are in line with other studies which cite more positive consumer attitudes towards buying organic food online and resulting in the greatest increase in consumers' willingness to actually make those purchases (Rong and Liang, 2014) Also study by (Kitcharoen, 2018), showing consumer attitudes toward organic food as an important predictor of purchase intention during online and offline purchases of organic food.
E-WOM directly has a significant effect on purchase intention
Based on Table 6, the relationship between e-WOM and purchase intention has a p-value < 0.5 (0.017) and t-statistic > 1.96 (2.400), which means that the variable has a significant relationship and H4 is accepted. The results of this study are in line with the results of research by (Li and Jaharuddin, 2020) which state that e-WOM critically deepens the relationship between purchase intention and purchase decision. Research conducted by (Kudeshia and Kumar, 2017) shows that e-WOM has a significant effect on consumer purchase intentions. This research also shows that e-WOM messages are an important means by which consumers can obtain information about service or product quality. Another finding is (Prasad et al., 2019) which states that e-WOM has a direct impact on online purchase intention by Y generation.
Price Perceive directly has a significant effect on purchase intention
Price Perceive has a significant relationship with purchase intention as illustrated by the p-value < 0.5 (0.002) and t-statistic > 1.96 (3.050) and means that H5 is accepted. This research is in line with the research by (Sembiring, 2016), (Darmawan, 2017), and (Widyastuti, 2018) that price has a positive and significant effect on purchasing agricultural products. (Widyastuti, 2018) in her research on the effect of price on purchasing decisions for organic vegetables said that the added benefits of a product at a price that fits the market are a consideration for consumers to buy a product.
Low prices with high quality will make consumers distrust the original product, on the other hand, high prices with low product quality will cause consumers to have less trust in the online store which causes purchasing decisions to not occur. However, if the information regarding prices is comparable to the quality of the products offered, consumers may be interested in making purchases at the online store.
Purchase intention directly has a significant effect on consumer purchase decision.
Purchase intention has a direct and significant effect on consumer purchase decisions with a p-value < 0.5 (0.000) t-statistic > 1.96 (32.348). The results of this study state that H6 is accepted that the higher the purchase intention will increase the consumer purchase decision. In line with these results, research conducted by (Listyowati et al, 2020) states that purchase intention as the first endogenous latent variable affects purchasing decisions as the second endogenous latent variable, meaning that increasing consumer intentions to buy organic vegetables online will have an impact on increasing consumer decisions to purchase vegetables. organic online. (Rahmaningtyas et al, 2017) succeeded in proving that the intention to purchase regional specialties online has a positive effect on the decision to buy regional specialties online. Individuals who have purchase intentions are more likely to make a purchase transaction. This behavior is carried out because the individual has the intention or desire to do so (behavioral intention).
CONSLUSION
The conclusion of this study of the 6 hypotheses, 5 accepted and 1 rejected. The accepted hypothesis can be a reference for companies to maximize their online market. Information quality has a significant effect and the higher the information quality will increase the intention to purchase organic vegetables online at AGRIOO. Attitude has a significant effect and the higher the attitude will increase the purchase intention. E-WOM has a significant effect and here is one that has a strong influence to increase consumer good comments, it will increase purchase intention. Price perception has a significant and important influence on AGRiOo or sellers to always ensure that prices are in accordance with quality, and sell organic vegetables to consumers who have relatively high price perceptions. Purchase intention has a strong influence on purchasing decisions. Here, when there is an intention, there is already more than half the chance for people to actually buy organic vegetables at AGRIOO.
RECOMMENDATIONS
Improving information quality and updating information regularly will increase purchase intentions and decisions. Add price promo information and add an explanation for each vegetable product such as product details to be obtained and the packaging of the product. With these findings, organic food marketers must make marketing efforts to attract more potential consumers by encouraging organic food consumers to share comments, suggestions and input regarding organic food after purchase. It is noteworthy that merchants should manage reviews and overcome negative e-WOM reviews with a good attitude, thereby helping to strengthen the trust and purchasing confidence of consumers who intend to buy organic food. The next suggestion is that AGRIOO can maximize the platform pages that are still empty by adding recommendations for vegetables or other products that consumers might like so that consumers want to increase the number and variety of vegetables they want to buy. Adding a photo of a human model as a form of interface or display interface so that buyers feel a better experience. In addition, it is necessary to increase the activity of AGRIOO's social media so that the account algorithm increases. The activeness of posting content on social media, so that every consumer who needs organic vegetables will buy them directly at AGRIOO.
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