WHAT DRIVES ONLINE FOOD SHOPAHOLICS: FACTOR ANALYSIS OF IMPULSE BUYING BEHAVIOR IN GO-FOOD ONLINE DELIVERY PLATFORM

• Main Author: Firmansyah, Azmi
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/41678
• Institution: Institut Teknologi Bandung

Micro, Small and Medium Enterprises (MSMEs) have an important and strategic role in national economic development. Especially for the culinary industry, it is one of the important sectors for national finance. The food sector’s Gross Domestic Product (GDP) in 2016 reached IDR 586.5 trillion or 6.2% of the total national GDP reaching IDR 9.433 trillion (Badan Pusat Statistik, 2016). Globalization era followed by the rapid development of technology and knowledge becomes crucial. One of the technology developments is the internet which is the biggest phenomenon for the entire world. Technological progress in the sphere of information and communication is encouraging the use and development of new methods, leading to rapid growth in online purchasing as the individual can buy products/services without having to travel to the outlets (Sharma & Sheth, 2004). consumers prefer to search and buy online and then use the service offline, which is called online to offline (O2O) commerce (Rampell, 2010). Those platforms change the behavior of people in ways of doing transaction become online. The availability of 24-hour trade over the Internet has led to an increase in online retail and inevitably to an increase in impulse buying. By the Internet, consumer buying opportunities have expanded through better access to products and services and easier to access. This new way of shopping often eliminates the time and space constraints that shoppers experience in a traditional commerce environment (Eroglu, Machleit, & Davis, 2001). As a result, Internet buyers may be more impulsive than traditional buyers (Donthu & Garcia, 1999). The goals of this research is to understand the impulse buying behavior in online food ordering. Based on the results, the researcher will design the strategy of online marketing strategy to increase online transaction. This research conducted in Bandung with the total of 116 respondents with error rate 10 percent limited to people age 15 – 30 years old. Respondents are asked to complete a six-points Likert scale and a rank order scale questionnaire. In order to find out the most appropriate marketing strategy the researcher conducted interviews with 10 respondents who had filled out the questionnaire and had a level of online purchases every day or more than 2 times a week. Impulse buying is defined as the independent variable, and external and situational factors is defined as the dependent variable in this research. Simple linear regression and ranking analysis are used to see the influences between external - situational factors and impulse buying behavior. This research will be helpful for business owner and marketer when they want to make marketing strategies to increase online transaction for food and beverages SMEs