An Analysis of Perceived Trust, Risk, Usefulness and Website Quality Affecting on Indonesian Consumer’s Online Buying Decision for Smartphone

Abstract

This research conducted to study and analyze the consumer’s behavior towards online buying decision of the smartphone in Indonesia. The researcher focused on the four variables tested including perceived trust, risk, usefulness and website quality. The quantitative methodology was implemented in this study to explain the phenomenon or indications that appeared by using numerical data. The statistical instrument was used for the data interpretation and analysis included the reliability of the test applied Cronbach's alpha coefficient, mean, standard deviation and multiple regression analysis. Likert’s scale of 1-5 applied to construct the research instrument for measuring the statements of each questions. This research was conducted in two major cities in Indonesia, Jakarta and Medan and collected 330 research samples targeting on Indonesian who had experience to purchase the smartphones via online channel by using convenience and purposive sampling. From the total of 330 respondents who participated in this study, the majority of respondents were women with 18-30 years of age. Most of them completed a bachelor's degree, worked as employees, and earned an average income below Rp.

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3,000,000 per month. In terms of the period of using online shopping, most of respondents have been using online shopping for 1-2 years. In addition, 153 respondents of this study stated not sure whether they do online shopping or not per month. Clothes and accessories were the most frequently product purchased by Indonesian, where Lazada was the most visited shop for online shopping. In term of payment method, most of them preferred the money transfer via ATM. According to the finding of the study, it revealed that perceived usefulness had the strongest weighs of relative contribution towards buying decision with the value of ß = .485, followed by perceived website quality (ß = .246) and perceived trust (ß = .161). These three variables had positive effect towards online buying decision of smartphone in Indonesia. In contrast, that perceived risk (X2) had negative effect toward buying decision of smartphone via online in Indonesia with the value of ß = -.116.