TRANSITION FROM BRICK AND MORTAR COMPANY TO CLICK AND MORTAR COMPANY: A CASE STUDY OF PASARAYA DEPARTMENT STORE

• Main Author: Satriawan - Nim: 29114320, Rama
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/30190
• Institution: Institut Teknologi Bandung

The business situation in Indonesia today is characterized by an exponential growth of online companies in Indonesia, declining growth of department store which caused some of their branches are closed. This changing business environment has encouraged some of traditional department stores in Indonesia to direct their focus to online shopping or e-commerce. Pasaraya Department Store which is one of the oldest department store in Indonesia also has experienced with a decrease in revenue, although no branch is closed. Therefore Pasaraya Department Store which is formerly a brick and mortar company also began to make transition to click and mortar company by establishing pasarayastore.com. This study tries to define what factors influence costumer to conduct online shopping transaction at pasarayastore.com, and what strategy need to be taken by pasarayastore.com based on result of analysis to the factors. <br /> <br /> Based on Theory of Planned Behavior (TPB), factor or variable online purchase intention is selected as a direct predictor of the customer to conduct online shopping transaction. TPB also shows that the antecedent of Intention is attitude, so next factor to be considered is attitude toward online shopping. Online activity is related to technology, therefore additional factors related to online purchase intention to be considered are online shopping convenience, sitequality and technology acceptance model (TAM). Using these 5 facctors or variables, a research model based on structural equation modeling (SEM) is built. This research model that is consists of 5 hypotheses with positive sign or influence. <br /> <br /> Research data are collected using online survey. 120 respondents, who are millennials generation, have accessed pasarayastore.com website and filled in and completed the questionnaires. Collected data then are processed using SPSS and LISREL 8.8. The results show that all the research hypotheses are supported. In addition, the results also reveal that there are lack respondents’awarness on pasarayastore.com. This study suggests customer acquisition strategy for pasarayastore.com, to increase customer awarness. The suggested strategy consists of 3 digital marketing tactics to be implemented, namely content marketing, social media marketing and e-mail marketing. <br /> <br /> This study concludes that both two research objectives are achieved, and several suggestions are given such as additional surveys using customers who have become a member pasarayastore.com, further development of research models by adding of new variables, etc. In closing of this study, a customer acquisition strategy implementation plan is outlined and described <br />