THE ANALYSIS OF EXTERNAL FACTORS EFFECT ON ONLINE CONSUMER BEHAVIOR TOWARDS ONLINE COSMETICS SHOPPING

• Main Author: Rahmatina (19015005), Nabila
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/29460
• Institution: Institut Teknologi Bandung

Online shopping nowadays is getting popular in Indonesia shown by the increase number of <br /> <br /> online shoppers in Indonesia. The population of online shoppers in Indonesia is dominated by <br /> <br /> female which might caused by the increasing of the purchasing power of female shoppers in <br /> <br /> Indonesia. With this phenomenon, bigger opportunities occurs for many women necessities <br /> <br /> industries to rise including online cosmetics industry. Despite the opportunities, the <br /> <br /> phenomenon also trigger bigger competition. Bigger competition happened when the sellers <br /> <br /> compete with each other in terms to understand the consumers and fulfill their needs. As <br /> <br /> nowadays consumers are getting smarter, their behavior towards online shopping also <br /> <br /> changing and getting sharper. Thus it will be a challenge for the online cosmetics businesses <br /> <br /> to understand their consumers behavior in order to give the best online shopping experience. <br /> <br /> When it comes to online consumer behavior, there are actually a lot of factors that could <br /> <br /> affect the behavior itself. One of those factors is the external factors. In this research, we will <br /> <br /> be focusing only on 5 external factors, those are perceived risks (financial risk, product <br /> <br /> performance risk, time risk, delivery risk) and also psychological factor (trust & security <br /> <br /> factor). <br /> <br /> Therefore, the aim of this research is to identify and analyze the effect of the external factors <br /> <br /> (perceived risks and trust & security factor) on online consumer behavior towards online <br /> <br /> cosmetics shopping. Through this research, the researcher also wanted to find out which <br /> <br /> factor is the most significant among the external factors. A quantitative approach is used by <br /> <br /> distributing the online questionnaire to 215 women aged 18-35 years old domiciled in Jakarta. <br /> <br /> The results will be asses using path analysis and will be analyze using AMOS. The research <br /> <br /> revealed that all the external factors have negative effect and significant influence on online <br /> <br /> consumer behavior towards online cosmetics shopping. Moreover, trust & security factor was <br /> <br /> found to be the most significant factor among the others. The finding also revealed that there <br /> <br /> are actually linkages between the independent variables. Hopefully, the result finding could <br /> <br /> be beneficial for the online cosmetics businesses.