Volume 4, Number 3, March 2023

e-ISSN: 2797-6068 and p-ISSN: 2777-0915

 

 


ANALYSIS OF FACTORS AFFECTING CONSUMER INTEREST IN URBAN AREAS IN SHOPPING FOR DAILY NECESSITIES ONLINE DURING THE COVID-19 PANDEMIC

 

Calvin Prayandi, Imran Pradipta, Muhammad Rizki, Peri Akbar Manaf

Sekolas Bisnis Binus, Indonesia

Email: [email protected], [email protected], [email protected].

[email protected]

 

KEYWORDS

Covid-19; shopping; online

ABSTRACT

Online Shopping is the act of buying products and services through an online store or e-commerce.  The culture of online shopping in Indonesia began to develop around the 2000s with the introduction of the internet. One of the benefits obtained by online shopping is that it makes shopping easier and more practical.  Buyers do not need to spend time and spend on a trip to a physical store. It has also created a change in one's behavior in shopping. The purpose of this research is to find out daily needs during the Covid-19 pandemic. This research   is a quantitative study in which a systematic empirical investigation of phenomena that can be observed using statistical, mathematical, or computational techniques is carried out. Predefined and highly structured data collection techniques are a major factor in quantitative research design when associated with positivis. this study shows what factors influence buyers' interest in buying a product at Online Groceries during the pandemic. And from the results of our research shows that one of the accepted and most significant factors influencing buyers' interest in buying at Online Groceries is from their Effort Expectancy

 

INTRODUCTION

The development of technology certainly has an impact on people's behavior and life, especially on the lives of the current generation. People are now familiar with the internet through various devices such as smartphones, laptops, computers, and others. Human life today is also inseparable from internet technology, for example, the increasingly massive development of online shopping has brought changes to the way humans’ shop.  Online Shopping is the act of buying products and services through an online store or e-commerce (Koch, Frommeyer, & Schewe, 2020). The culture of online shopping in Indonesia began to develop around the 2000s with the introduction of the internet. One of the benefits obtained by online shopping is that it makes shopping easier and more practical. Buyers do not need to spend time and spend on a trip to a physical store. It has also created a change in one's behavior in shopping. Consumer shopping behavior is a collection of decision-making processes and subsequent behavior, planned and unplanned, and determined by internal and external factors (Sharma & Sonwalkar, 2013).

Since February 2020, the world, including Indonesia, has been shocked by the COVID-19 outbreak which has been declared a pandemic by the World Health Organization (WHO). As of September 21, 2020, statistics reveal the largest number of incidents and the highest number of deaths in the United States, namely 6,660,003 positive cases and 197,442 deaths (Organization, 2019). On the same date, Indonesia reached 248,852 positive cases and 9,677 deaths. Thus, the case fatality rate (CFR) has reached 4.20% which is relatively high compared to America which has the highest number of deaths. As a result, during the COVID-19 pandemic, the government made a policy of social restrictions and activities in public spaces known as PSBB/ PPKM. One of the sudden changes imposed by social restrictions and activities is the use of various higher technologies such as  internet-based  services to communicate , interacting, and working from home (Pandey & Pal, 2020). Consumers are more likely to change their preferences and  behavior patterns such as switching to online  shopping and  alternative pickup  and delivery options (Dey, Al-Karaghouli, & Muhammad, 2020).

With many people being restricted in their activities due to the COVID-19 protocol policy by staying at home, there is a fairly rapid increase in online shopping. The results of the PT.  Snapcart Digital Indonesia (2020) shows that online shopping for daily needs ranks first most used by consumers with a percentage of 76% during quarantine. Due to these changes, consumers face the need to adopt and use certain technologies practically in a short period of time to cope with the new reality. The adoption of a technology has become a broad field of research based on several theoretical foundations. One of the most widely used and commonly used theories in explaining the use and adoption of technology is the Unified Theory of Acceptance and Use of Technology (UTAUT).

However, the emergence of new conditions due to the COVID-19 pandemic has created unique conditions where users do not have time to go through the usual decision-making process of technology adoption, early use and post-adoption phase of use (Erjavec & Manfreda, 2022). The transition between different stages occurs more quickly affected by social restrictions, in which users do not have the same access to information resources when making decisions (Raza, Qazi, Khan, & Salam, 2020). Therefore, the question arises of how and to what extent the direct determinant effect of  (Venkatesh, Thong, & Xu, 2022) on the decision to  adopt online groceries technology.

The biggest challenge for online groceries businesses is getting more consumers to change their minds about buying groceries  online  (Singh, Williams, Siahpush, & Mulhollen, 2021). This is because there are risks and uncertainties that affect the decision-making process and consumer behavior (Pennings, Wansink, & Meulenberg, 2002). Local consumers in Malaysia are skeptical of online foodstuffs especially regarding perishable goods (Muhammad, Sujak, & Abd Rahman, 2016). This presents a challenge for egroceries service providers to continue to strive to provide the best quality of service for consumers. 

 Consumer behavior is an important factor that needs to be studied because it relates to purchasing decisions. The COVID-19 pandemic has created a new reality for consumers around the world. To overcome this, users of digital technologies have faced the need to adopt and use certain technologies practically (Erjavec & Manfreda, 2022). Developing an in-depth understanding of the factors underlying consumer intent in shopping for groceries online has the potential to lead to the creation of customized services. Of course, this is important to know, especially with the COVID-19 pandemic which has changed people's habits.

 However, the improving situation with the reduced number of positive cases of COVID-19 in Indonesia has made the government take a policy of loosening restrictions. This makes activities gradually return to what they were before the COVID-19 pandemic where shopping in physical stores can still be carried out optimally without restrictions. Therefore, the question arises whether the online groceries behavior that has been formed during the pandemic will be maintained in the midst of this endemic condition.  

    Therefore, this research is important to do in order to gain a thorough understanding of what factors influence consumers' desire to shop for daily necessities online amid conditions of easing restrictions due to the COVID-19 pandemic. The results of this study can also be used by investors / companies as information in developing technology for shopping applications for daily needs to increase sales.

 

RESEARCH METHOD

This research is a quantitative study in which a systematic empirical investigation of phenomena that can be observed using statistical, mathematical, or computational techniques is carried out. Predefined and highly structured data collection techniques are a major factor in quantitative research design when associated with positivism (Saunders, Lewis, & Thornhill, 2019). The initial step starts from establishing the problem as an indication of a phenomenon being studied, then determining the title of the study. Next establishes the hypothesis, as well as obtaining the concept of variables along with the measurement of the established variables.

In this study, online questionnaires were used to test research hypotheses that had been created.  The questionnaire consisted of several items that measured various UTAUT factors, behavioral intentions of online groceries shopping, fear of COVID-19 and other items that were irrelevant to the study. We build measurement items in our hypothesis model based on existing studies.

The respondents in this study were individuals domiciled in urban areas, especially Jakarta and its surroundings, who had used online groceries services during the Covid-19 pandemic. The questionnaire will be made in the form of google forms links which are then distributed through social media such as whatsapp, line, instagram, and email for one month. In this study, the questionnaire will be divided into eight parts, the first part containing data from respondents (gender, occupation, age, and demographics). Then behavioral questions are also asked such as the frequency of using online groceries services and applications used.

Then proceed with a set of questions related to the research topic which will then be answered or responded to by respondents based on their experience in using online groceries services. The questions from the questionnaire are based on the variable variables that the author has chosen including, Performance Expectancy (PE), Effort Expectancy (EE), Social Influence (SI), Facilitating Conditions (FC), Online Groceries Buying Intention (OGBI), Trustworthiness (TW), and Covid - 19 Fear (CF). Table 1. presents all selected variables, measurement items, descriptions and reference sources. To maintain the validity of measurements, we use measurement questions that have already been validated in the literature; However, we adapted several steps for our research area, which is online groceries shopping. All variables are measured on a 5-point Likert scale   ranging from 1 (strongly disagree) to 5 (strongly agree). This scale is used to determine how much respondents agree or disagree with the statements given in the questionnaire.

The sampling technique used is Non - Probability Sampling with convenience sampling where non-probability sampling is a data collection technique where not all samples in the population have the possibility of being selected. Based on the researcher's policy in determining the sample elements to be used, the selected sample is only individuals who are domiciled in Jabodetabek and have used online groceries services. While the convenience sampling technique is a sampling procedure that selects samples from people or units that are easiest to find/ access.

In determining the  sample size, one of  the  methods that can be used is the (Roscoe & Blome, 2019). This study will take a minimum of 10 times the number of variables studied, in this case 6 independent variables and 1 dependent variable. From the Roscoe formula, the minimum number of samples is 70  samples (7x10).

 

Table 1 Measurement Variables and their sources

Variable

Items

Statement

Source

Performance Expectancy (PE)

PE 1

I find the online groceries application  useful in my daily life

Venkatesh et al. (2012)

PE 2

Using  an online groceries  app makes me save me more time    on shopping

PE 3

Using  an online groceries\  app makes me more financially saver

PE 4

Using  an online groceries  app increased my productivity

Effort Expectancy (EE)

EE 1

Groceries online  app is easy to use

EE 2

Using the  online groceries  application makes it easier for me  to find the products I need

EE 3

Using the  groceries online  application makes it easier for  me to find out the availability of products

EE 4

Easy for me to skillfully use the groceries online app

Social Influence (SI)

SI 1

My family  advised me to use the groceries online application

SI 2

My closest friends  advised me to use the online groceries application

SI 3

The people I appreciate advise me to use an online groceries app

SI 4

People I follow on social media advise me to use the groceries online app

Facilitating Conditions (FC)

FC 1

I have equipment, such as a smartphone, laptop or PC to use the groceries online application

FC 2

I have the necessary abilities and knowledge to use the groceries online application

FC 3

Using  an online groceries  application is the same as using any other online  shopping application

FC 4

I can get help from others if I have difficulty in using the groceries online application

Online Groceries Buying Intention (OBGI)

OGBI 1

I intend to use the online groceries  application at a later date

OGBI 2

I will always use the online groceries app

OGBI 3

I plan to use the groceries online application often

OGBI 4

How likely is it  that in the  next 6 months, you will use the online groceries application

Trustworthiness (TW)

TW 1

I believe that using an online groceries  application can replace my habit from offline to online shopping

(Yousafzai et al.,2003)

TW 2

I would believe the  online groceries  application if it has good reviews  from  its consumers.

TW 3

I would believe  the  online application of groceries if the  goods sold are of good quality

TW 4

If  the  goods I receive do not have good  quality, it can reduce my trust in  online groceries services or applications

Covid-19 Fear (CF)

CF 1

The Covid-19  pandemic has made me worry about getting out of the house

(Erjavec and Manfreda, 2022)

CF 2

The Covid-19  pandemic has made me worry about contracting the covid virus

CF 3

The Covid-19  pandemic worries me  if there  is a large  crowd

CF 4

The Covid-19  pandemic has made me stay at home or indoors  more often

 

RESULT AND DISCUSSION

The sample in  this study was 40 respondents, with the  gender of  each respondent consisting of 55% male and 45% female. The age results of each respondent were dominated by the age of 20-30 years and 45% as private employees and the domicile of respondents was dominated by the domicile of 45% of DKI Jakarta and 50% of Tangerang. Most of  them have the experience of once shopping for daily necessities online. The frequency of  doing online shopping is dominated once a month and two to 5 times a month. Most  use the GoMart and Sayur Box applications.

 

Table 2 Validity & Reliability Test

Variables

Questions

Factor Loading

Average Variance Extracted (AVE)

Cronbach's Alpha

Composite Reliability

Performance Expectancy (PE)

I find the online groceries application  useful in my daily life

0.908

0.797

 

 

0.873

 

0.922

 

 

Using  an online groceries  app makes me save me more time    on shopping

0.885

 

 

 

Using  an online groceries  app increased my productivity

0.884

 

 

 

Effort Expectancy (EE)

 Groceries online  app is easy to use

0.865

0.691

 

 

0.850

0.899

 

 

Using the  online groceries  application makes it easier for me  to find the products I need

0.776

 

 

 

Using the  groceries online  application makes it easier for  me to find out the availability of products

0.826

 

 

 

Functional Value (FV)

Easy for me to use groceries online app

0.855

 

 

 

Social Influence (SI)

 My closest friends  advised me to use the online groceries application

0.865

0.764

 

 

0.691

0.866

 

 

Reward (RW)

People I follow on social media advise me to use the groceries online app

0.883

 

 

 

Facilitating Conditions (FC)

I have the necessary abilities and knowledge to use the groceries online application

0.915

0.756

0.685

0.860

Using  an online groceries  application is the same as using any other online  shopping application

0.821

 

 

 

Online Groceries Buying Intention (OBGI)

I will always use the online groceries app

0.886

0.838

0.903

0.939

I plan to use the groceries online application often

0.933

 

 

 

How likely is it  that in the  next 6 months, you will use the online groceries application

0.927

 

 

 

Trustworthiness (TW)

I would believe the  online groceries  application if it has good reviews  from  its consumers.

0.942

0.857

0.835

0.923

If  the  goods I receive do not have good  quality, it can reduce my trust in  online groceries services or applications

0.909

 

 

 

Covid-19 Fear (CF)

The Covid-19  pandemic has made me worry about getting out of the house

0.884

0.737

0.823

0.894

The Covid-19  pandemic worries me  if there  is a large  crowd

0.871

 

 

 

The Covid-19  pandemic has made me stay at home or indoors  more often

0.820

 

 

 

-     Convergent validity test requires that the loading factors number be greater than or equal to  0.5 (Bagozzi & Yi, 2018),

-     discriminant validity test requires that the  variance number  of the  average variance extracted (AVE)  of each latent variable must be greater than   the number in the correlation between that   latent  variable  and other latent  variables, as  well as for composite reliability,   requires  that Cronbach's alpha number be greater  than or equal to  0.7 (Fornell & Larcker, 2021).

 

Table 3 Hypothesis Testing Results

 

Hypothesis

Path Coefficients

t - statistics

p - values

Result

H1

Performance Expetancy → Online Groceries Buying Intention

0.194

0.505

0.613

Rejected

H2

Effort Expetancy → Online Groceries Buying Intention

0.816

3.187

0.002

Accepted

H3

Social Influence → Online Groceries Buying Intention

-0.506

0.698

0.090

Rejected

H4

Facilitating Condition → Online Groceries Buying Intention

0.390

1.350

0.178

Rejected

H5

Trustworthiness → Online Groceries Buying Intention

-0.062

0.299

0.765

Rejected

Covid-19 Fear → Online Groceries Buying Intention

0.298

1.638

0.102

Rejected

 

In this study, the level of significance used was 5%, using a confidence level of 95%. Therefore, the value of t must reach > 1.96 in order for the hypothesis to have a significant effect. If the t-value < 1.96 can be interpreted to mean that the hypothesis has an insignificant effect. Based on the analysis of the results of the table above,

Hypothesis 2 is acceptable because the t-stat value is greater than the number 1.96 and the p-value is smaller than the value of 0.5. While the hypothesis of 1,3,4, 5 gets rejection because the p-balue is greater than the value of 0.05 and the t-stat obtained is smaller than the value of 1.96.

 

CONCLUSION

Overall, this study shows what factors influence buyers' interest in buying a product at Online Groceries during the pandemic. And from the results of our research shows that one of the accepted and most significant factors influencing buyers' interest in buying at Online Groceries is from their Effort Expectancy. So that with the existenceof Effort Expectancy which can provide convenience in the use of the Online Groceries application to users from the elements of the user interface that is easy to understand in the application or Its uncomplicated payment system can greatly influence the users to buy at Online Groceries.

 

 

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Copyright Holders:

Calvin Prayandi, Imran Pradipta, Muhammad Rizki (2023)

 

First publication right:

Devotion - Journal of Research and Community Service

This article is licensed under a Creative Commons Attribution-ShareAlike 4.0 International