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24507 70881 2 PB - JURNAL DINAMIKA MANAGEMEN
manajemen (mnjm1k)
Universitas Swadaya Gunung Jati
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Jurnal Dinamika Manajemen, 11 (2) 2020, 198- h p:jdm.unnes.ac Nationally Accredited based on the Decree of the Minister of Research, Technology and Higher Education, Number 85/E/KPT/
Capturing Opportunities in the Industrial Revolution 4:
E-Commerce, Digital Marketing, Prestige, and Instant Online
Buying
Bambang Setia Wibowo, Diaz Haryokusumo
Management Department, STIE YKPN School of Business, Yogyakarta, Indonesia
Abstract is study aims to examined the effect of e-commerce, digital marketing, and consumer prestige on instant online buying decisions with perceived quality as an intervening variable on millennial generation. is research used survey design with purposive sampling. is research was conducted on 152 students in Yogyakarta who had already done online shopping in the marketplace. Data analysis was performed using Structural Equation Model (SEM) using Analysis Moment Structure (AMOS). is research proves that there is a positive in uence on the use of e-commerce, digital marketing, and prestige on instant online buying decisions of consumers with perceived quality as an intervening variable on millennial consumers. e direct factor that in uences instant online buy- ing decisions is perceived quality, while e-commerce, digital marketing and prestige have an indirect effect on instant online buying because they have to pass through perceived quality. eoretical and practical implications are discussed later.
Info Article History Article: Submi ed 20 May 2020 Revised 7 August 2020 Accepted 10 August 2020 Keywords: E-Commerce; Digital Marketing; Prestige; Instant Online Buying.
Peluang Revolusi Industri 4: E-Commerce, Digital Marketing,
Prestise dan Keputusan Instan Pembelian Daring
Abstrak Penelitian ini bertujuan menguji pengaruh e-commerce, pemasaran digital dan prestise kon- sumen pada keputusan pembelian online instan dengan kualitas yang dirasakan sebagai vari- abel intervening pada generasi milenial. Penelitian ini menggunakan desain survei dengan purposive sampling. Penelitian ini dilakukan terhadap 152 mahasiswa di Yogyakarta yang sudah pernah melakukan belanja online di marketplace. Analisis data dilakukan dengan menggunakan Structural Equation Model (SEM) menggunakan Analysis Moment Struc- ture (AMOS). Penelitian ini membuktikan bahwa ada pengaruh positif pada penggunaan e-commerce, pemasaran digital dan prestise pada keputusan pembelian online instan kon- sumen dengan kualitas yang dirasakan sebagai variabel intervening pada konsumen milenial. Faktor langsung yang memengaruhi keputusan pembelian online instan adalah kualitas yang dirasakan, sementara e-commerce, pemasaran digital, dan prestise memiliki efek tidak lang- sung pada pembelian online instan karena mereka harus melewati kualitas yang dirasakan. Implikasi teoretis dan praktis akan dibahas kemudian.
JEL Classi cation: M3, M
Correspondence Address Jl. Seturan Raya, Jl. Raya Kledokan, Kledokan, Caturtunggal, Kec. Depok, Kabupaten Sleman, Daerah Istimewa Yogyakarta 55281 Email: bambang@stieykpn.ac
ISSN 2086-0668 (print) 2337-5434 (online) DOI: 10.15294/jdm.
How to Cite: Wibowo, B. S., & Haryokusumo, D. (2020). Capturing Opportunities in the Industrial Revolution 4: E-Commerce, Digital Marketing, Prestige, and Instant Online Buying. Jurnal Dinamika Manajemen, 11(2), 198-206.
Bambang Setia Wibowo & Diaz Haryokusumo/ Capturing Opportunities in the Industrial Revolution 4....
INTRODUCTION
New technology utilizing the internet has become a strategic point in the current process of the industrial revolution. industrial revolution 4. is the integration of the use of the internet with production lines in the industrial world. Changes have also taken place in the industrial world to- day which is marked by changes in the business climate and an increasingly competitive industry due to the development of information technolo- gy. Industry 4 is an industry that combines au- tomation technology with cyber technology. is includes trends in automation and data exchange in business technology which includes several parts, namely the Internet of ings (IoT), cloud computing, and cognitive computing. e trend of online shopping and digital marketing is an opportunity for producers to welcome the industrial revolution 4 era. On- line shopping or online shopping activities be- come a new lifestyle for Internet users. Parallel, at, and wide open communication has opened unlimited possibilities for communication bet- ween Internet users, which in turn also opens up opportunities for buying or selling transactions. Platform or forum buying and selling channels that are most oen used especially for male In- ternet users to shop online. While female inter- net users are more likely to choose social net- working sites that is equal to 50%, and 24% for men (Hausman & Siekpe, 2009). e internet shows various facets of the marketing function, works as a mechanism to build demand, direct consumers to purchase actions, ll orders, pro- vide customer service, and also function as a multipurpose advertising medium. e internet is claimed to be a be er communication me- dium because of its versatility and superiority in targeting consumers (Maoyan et al., 2014). In addition to the above, Prestige consu- mers are considered to have an important role in making online shopping decisions. Baumeister (2005) states that self-concept is a value for in- dividuals so that behavior is intended to protect and enhance self-concept. Buying, using, and displaying the consumer goods or services is a
meaningful symbol for individuals and others. Individual consumptive behavior carried out to improve self-concept through the consumption of goods or services which are interpreted as a symbol. e symbol referred to here can be a symbol of self-esteem or social status (Lowrey et al., 2005). e right advertising program must be supported by good advertising effectiveness. e effectiveness of advertising is not limited to purchasing products but is extended to various psychological and cognitive aspects related to awareness and intention that play an important role in purchasing decisions (Ramalingam et al., 2006). erefore, the orientation of the ef- fectiveness of advertising is not only about the purchase intention of the product but about the long-term relationship between consumer needs and the product being advertised. Brand a itude and brand a achment with environmental consequences to testify the im- pact on the consumer purchase intentions (Saad et al., 2012). Does environmental consequences has some role while forma ing purchase intenti- on of the customer or people do not think about it. Either customers want to a ach themselves with brand only or they also keep into account the corporate social responsibility index as well. Results show that core brand image and brand a itude has positive impact whereas environ- mental consequences have negative effect on the purchasing intention of customers (smokers show that consumer purchasing behavior takes place by stimulating customers with internal and external factors (such as choosing a pro- duct, brand, retailer, time, and quantity), and consumers make purchasing decisions based on their individual quality, personality, characteris- tics, and decision-making process. is means that consumers' choices of products and brands have an impact on their buying behavior. e roadmap for systems and technology development to realize Industry 4 is still un- focused (Nigappa & Selvakumar, 2016). is happens because Industry 4 is still as a general idea. e actual form is still blurry so it can bring up various possible directions for development.
Bambang Setia Wibowo & Diaz Haryokusumo/ Capturing Opportunities in the Industrial Revolution 4....
connection with consumptive behavior, young women can control the behavior without having to think about the use of items that can increase their self-esteem. Conversely, young women who have low self-esteem will seek recognition from others and their groups. One way to do this is to use goods that can increase their self- esteem (Erdoǧmuş & Büdeyri-Turan, 2012) suc- cessful branding requires building strong bonds with the consumers, by creating favorable, st- rong and unique brand associations in consu- mer minds. is study aims to identify the role of functional perceived quality. Koo and Shavi (2010) state that self- esteem in uences buying behavior. Teens with low self-esteem will tend to be more easily in- uenced than people with high self-esteem. If the level of self-esteem of young women is high enough, then they will be able to make and make decisions for themselves without being in uen- ced by their social environment. is is reinfor- ced by the statement that the tendency to have a new product is usually seen in people who have self-con dence and low self-esteem (Ardelia & Supriono, 2017). Based on these explanations, the third hypothesis proposed is: H3: Prestige positively affect perceived quality
Perceived Quality and Instant Online Buying Consumer buying behavior is in uenced by many factors. Personal and psychological fac- tors of consumers have an important role in con- sumer purchasing decisions (Niazi et al., 2012). Based on this, high effectiveness of advertising is needed to a ract the a ention of consumers and cause purchase intentions of an advertised product. High effectiveness of advertising will have a positive effect on online shopping inten- tion (Zhu, 2012). In essence, perception will be related to one's behavior in making decisions about what is desired. One way to nd out consumer behavior is to analyze consumer perceptions of products. With consumer behavior, perception can show things that become strengths, weaknesses, oppor- tunities, or threats for a product. Based on these explanations, the fourth hypothesis proposed is.
H4: Perceived quality positively affect instant online buying
Researchers want to develop hypotheses by analyzing direct and indirect effects between variables. e perceived quality variable mediates the effect of e-commerce, digital marketing, and prestige on instant online buying. Based on this, the successive hypotheses proposed are: H5: Perceived quality mediates the positive relationship of e-commerce, digital marke- ting, and prestige to instant online buying.
METHOD
e ads used for this study sample are all online store site advertisements that are displayed in Indonesian digital media, namely: berniaga, olx.co, tokopedia, ele- vania, and bukalapak. Primary data sources needed in this study were obtained by giving questionnaires directly to respondents. We conducted survey design and data collected by self-administrated. e population in this study is millennials online shopping consumers born between 1980 and 2000. Sampling is done by purposive sampling, namely sampling with certain criteria so that the samples taken are fol- lowing the research objectives. Respondents in this study drawn from students of a private uni- versity in Yogyakarta. Considerations in choo- sing student subjects because they belong to the middle class, are critical and can understand advertising messages, also can understand pro- ducts that are related to the sample ad. All items measured on Likert-type scales from 1 (strongly disagree) to 5 (strongly agree). E-commerce was measured with six-items adapt- ed from Zeithaml et al. (2002) that explain four dimensions include (1) ability, (2) benevolence, (3) integrity, (4) trust. Sample item include “I believe that e-commerce provider vendors de- liver comfort in the transaction”. Digital market- ing was measured with seven-items adapted from Reinartz and Saffert (2013). Sample item include “Digital marketing makes it easy to nd products’. Prestige was measured with six-items adapted
Jurnal Dinamika Manajemen, 11 (2) 2020, 198-
from Koo and Shavi (2010). Sample item is “Having a prestigious product gives a sense of pleasure”. Perceived quality was measured with six-items scale from Niazi et al. (2012). Sample item is “ e comfort and safety of shopping in the marketplace is guaranteed”. Online buying was measured by scale from Zhu (2012). Sample item include “Online shopping is the main alter- native for buying products.” Data analysis was performed using the Structural Equation Model (SEM) in the mo- del and hypothesis testing. SEM or structural equation model is a set of statistical techniques that allow testing a series of relatively complex relationships, simultaneously. What is meant by complicated are simultaneous models formed through more than one dependent variable at the same time acting as independent variables for other tiered relationships. In this study, researchers will use SEM to test hypotheses 1-4 tested with path analysis, which is to determine the level of signi can- ce between variables, hypotheses 5a, b, and c using mediation testing. In the mediation test, if in model 1 there is a signi cant beta while in model 2 there is no signi cant beta value, then perfect mediation (full mediation). However, if the alternative model has a signi cant beta value while in the research model there is a signi cant beta value but the value is smaller than the alter- native model, then partial mediation.
RESULT AND DISCUSSION
A total of 152 respondents (response rate 95%) participated in this study. Participating respondents were students in Yogyakarta. Male
respondents numbered 66 people with a percen- tage of 43% and female respondents numbe- red 86 people with a percentage of 56%. is means that female respondents participated in this study more than male respondents. Validity test is used to measure the ability of the scale used to measure the concept in ques- tion, the aim is to test the component questions in the questionnaire and ensure that the measuring instrument used matches the object being measu- red. Factor analysis is valid if Factor Loading > 0. e item for using the e-commerce appli- cation is described in code EC1 to EC6. e lo- ading factor value is greater than 0 so that all are valid. e digital marketing question items are described in code DM1 to DM7. e loading fac- tor value > 0 so that all are valid. Prestige ques- tion items are described in P1 to P6. Perceived quality question items are described in code PQ to PQ6. Instant online buying question items are described in code OB1 to OB7. e loading fac- tor value > 0 so that all are valid. Cronbach’s α score is used to check the reliability of the measu- res (≥ 0). Table 1 (listed in the diagonal in pa- rentheses) shows that the Cronbach’s α score for each variable exceeds the cut-off value 0. us, the items can be used for further analysis. e means, standard deviations, and inter-correlation for the study variables are found in Table 1. e average score of e-commerce appli- cations of 3 shows that, on average, respon- dents rated e-commerce applications as widely known and used by students. e average sco- re of prestige of 4 indicates that on average respondents have a high self-concept. e ave- rage score of digital marketing of 3 shows that, on average, respondents rated valuing inte-
Table 1. Means, Standard Deviations, and Correlation among Variablesa
Variable Mean S 1 2 3 4 5
- e-commerce app 3 .223 (.71) .309** .442** .545** .630**
- Prestige 4 .341 - (.75) .331** .432** .411**
- Digital Marketing 3 .412 - - (.71) .337** .438**
- Perceived Quality 4 .311 - - (.79) .402**
- Instant online buying 3 .424 - - - - (.77) aCronbach alpha coecient is listed in the diagonal in parentheses; **p ≤ 0 (2-tailed)
Jurnal Dinamika Manajemen, 11 (2) 2020, 198-
on perceived quality (β = 0, P < 0). e results of this analysis support the second hypot- hesis. Prestige has a positive effect on perceived quality (β = 0, P < 0). is result supports the third hypothesis. Perceived quality has a po- sitive effect on instant online buying Millennial generation consumers (β = 0, P < 0). is result supports the fourth hypothesis. Hypothesis 5a was tested by comparing beta values between beta 1 (Figure 2) and beta 2 (Figure 3). In model 1, there is a signi cant beta, while in model 2 there is no signi cant beta va- lue, so mediation is perfect (full mediation).
e results of the analysis of mediation testing show that e-commerce applications af- fect instant online buying with a value of β = 0; P < 0. When perceived quality me- diates the effect of e-commerce applications on instant online buying, the effect of e-commerce
applications on instant online buying becomes β = 0,000; P > 0. is means that perceived quality mediates the effect of e-commerce appli- cations on instant online buying perfectly. Hypothesis 5b was tested by comparing beta values between beta 1 (Figure 4) and beta 2 (Figure 5). In model 3 there is a signi cant beta while in model 4 there is no signi cant beta va- lue so the mediation is perfect (full mediation). e results of the analysis of mediation testing show that digital marketing has an in- uence on instant online buying with a value of β = 0; P < 0. When perceived quality me-
diates the effect of digital marketing on instant online buying, the effect of digital marketing on instant online buying becomes β = -0; P > 0. is means that perceived quality me- diates the effect of digital marketing on instant online buying perfectly.
Figure 4. Model 3
Figure 5. Model 4
Figure 2. Model 1
Figure 3. Model 2
Bambang Setia Wibowo & Diaz Haryokusumo/ Capturing Opportunities in the Industrial Revolution 4....
Hypothesis 5c was tested by comparing beta values between beta 5 (Figure 6) and beta 6 (Figure 7). In model 5 there is a signi cant beta, while in model 6 there is no signi cant beta va- lue, so mediation is perfect (full mediation).
CONCLUSION AND RECOMMENDATION
is research proves that there is a po- sitive in uence on the use of e-commerce, di- gital marketing, and prestige on instant online buying decisions of consumers with perceived quality as an intervening variable on millennial generation consumers. e direct factor that in- uences instant online buying decisions is per- ceived quality, while e-commerce, digital mar- keting, and prestige have an indirect effect on instant online buying because they have to pass through perceived quality. In other words, per- ceived quality perfectly mediates e-commerce, digital marketing, and prestige on consumers' instant online buying decisions. e limitation of this study is the limited number of samples, so it affects the results of sta- tistical tests conducted. In addition, the limita- tions of the scope of the sample are still narrow. is study only took a sample from the backg- round of educational organizations. In future stu- dies, it is necessary to add samples from organiza- tions with more varied backgrounds so that data and results can be processed. Some suggestions for future research are increasing the number of variables that can see the model more fully, ad- ding variations in organizational background, and increasing the number of samples sucient
to meet the requirements for using SEM analysis. e results of this study along with various limi- tations in order to be used as a source of ideas and input for research development, especially related to the eld of consumer behavior and marketing.
In addition, it can be used as a reference material for the practical world of companies.
REFERENCES
Ardelia, A., & Supriono, S. (2017). Pengaruh Brand Credibility dan Brand Prestige terhadap Per- sepsi Kualitas dan Minat Beli (Survei pada konsumen kosmetik merek Chanel). Jurnal Administrasi Bisnis S1 Universitas Brawijaya, 50 (3), 9-18. Baumeister, R. F. (2005). Self-Concept, Self-Es- teem, and Identity. Personality: Contemporary eory and Research ( ird Edit, 246-280). San Francisco: Wadsworth. Baumgartner, H., & Homburg, C. (1996). Appli- cations of Structural Equation Modeling in Marketing and Consumer Research: a Re- view. International Journal of Research In Mar- keting, 13(2), 139-161. Chen, Z., & Dubinsky, A. J. (2003). A Conceptual Model of Perceived Customer Value in E- Commerce: a Preliminary Investigation. Psy- chology and Marketing, 20 (4), 323-347. Doll, W. J., Xia, W., & Torkzadeh, G. (1994). A Con- rmatory Factor Analysis of the End-User Computing Satisfaction Instrument. MIS Quarterly: Management Information Systems, 18 (4), 453-460. Erdoǧmuş, I., & Büdeyri-Turan, I. (2012). e Role of Personality Congruence, Perceived Quali-
Figure 6. Model 5
Figure 7. Model 6
24507 70881 2 PB - JURNAL DINAMIKA MANAGEMEN
Course: manajemen (mnjm1k)
University: Universitas Swadaya Gunung Jati
