THE EFFECT OF PERCEIVED DISTANCE ON PURCHASE INTENTION: A CASE STUDY OF E-COMMERCE IN INDONESIA

• Main Author: Khantsa, Luthfira
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/53037
• Institution: Institut Teknologi Bandung

During this Covid-19 pandemic, there is a surge in e-commerce and the increasing number of ecommerce deliveries in 10 years to 8 weeks. The number of e-commerce users in Indonesia is expected to 219.7 million people by 2024. Gross merchandise value (GMV) in Indonesia reached US $ 40 billion in 2020, the third highest in the world. There are many choices of e-commerce platforms available and every e-commerce platform is competes to attract customers. However, not all e-commerce platforms can compete equally. Lack of consumer trust is a major obstacle for e-commerce to thrive. The challenge of e-commerce in Indonesia is a large country with many islands, so the distance between buyers and sellers can be very far. Therefore, the researcher wants to see the extent to which the perception of distance affects buyer trust and will influence customers to buy the product through ecommerce. This study uses a quantitative method by distributing questionnaires to Indonesians who have purchased goods through e-commerce. Respondents who filled out the questionnaire were 336 respondents, but because of an error, the remaining 312 respondents. The research questionnaire contains 26 statements regarding the perception of distance consisting of spatial distance, temporal distance and social distance, then there are statements regarding the level of trust, purchase intention as well as express delivery service and shipping costs. Based on the results of calculations using SmartPLS software, the research questionnaire proved to be reliable and valid. After conducting a structural assessment of the model, the results show that buyer's trust in e-commerce greatly influences consumers to buy through e-commerce products, the second result of the three distances, spatial distance is the distance that most influences trust. Finally, shipping costs greatly affect e-commerce customer purchase intentions. The final result of this research is a marketing strategy in the form of a 4p marketing mix. The products sold must be diverse and their availability is guaranteed. Each product must have complete information and be demonstrated with audio or video. The price must compete with other e-commerce and there are variations in shipping prices. The promotions are a discount voucher, massive discount on certain products for limited time, free and discount shipping voucher. Buy products online but it is advisable to build a warehouse on each island.