ANALYSIS OF FACTORS INFLUENCING THE PURCHASE INTENTION OF ONLINE AUCTION CUSTOMERS ON FACEBOOK FINAL PROJECT

• Main Author: Khaidar Achmad, Reza
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/49003
• Institution: Institut Teknologi Bandung

E-commerce is a common case in Indonesia, with the increasing fame of online marketplaces. Online auctions are a rare feature on said sites, but the practice is alive on social media such as Facebook and Instagram. According to DilelangAja - an online auction service provider currently operating on Facebook - online auction’s rate of sales fluctuates with few studies having researched the cause of this, particularly Indonesian online auctions. The purpose of this research is to discover the factors which influence online auction customer’s purchase intentions and determine the best solution to apply the newfound knowledge to DilelangAja and similar services. The framework of this research is about figuring how significant the influences of the specified variables - perceived product and service quality, perceived convenience, perceived product information - are to the perceived ease of use and the perceived usefulness, and in turn, how the two variables and another variable - trust - are to the customer purchase intention. The data collection method for this study was through an online survey, consisting of quantitative questions with Likert scaled-answers. The respondents of this survey were the members of various hobby communities on Facebook in the same market as DilelangAja with the sampling method using the non-probability judgmental method. The number of respondents participating in the survey was 150 people. Descriptive statistics along with partial least squares structural equation modeling (PLS-SEM) were used to analyze the data gathered from the online survey. It was found that the perceived product and service quality and perceived convenience are the most influencing independent variables to the purchase intention, through the perceived ease of use and usefulness. For DilelangAja, the recommendations from the findings are focusing on improvements on product quality, service quality, and the convenience of the auction. Keywords: e-commerce, online auction, DilelangAja, Facebook, purchase intention, PLS-SEM