UNDERSTANDING IMPACTS OF NEW NORMAL POST COVID-19 PANDEMIC AND LESS-PROMOTION STIMULI ON CONSUMERS ONLINE PURCHASE DECISION MAKING IN INDONESIA

• Main Author: Anindita Dwiputri, Laurensia
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/70111
• Institution: Institut Teknologi Bandung

The Covid-19 pandemic has brought a positive impact and became the catalyst in driving the digital economy in Indonesia. People adapted to using their electronic devices even more as the substitution of various in-person activities; one of them was shopping. In the past few months, the technology and startup industries all across the globe are facing a tough period, called investor-winter, due to the bubble burst phenomenon and as they cannot sustain their tremendous growth in the past. Hence, a lot of online platforms need to cut their marketing budget by giving less promo and charging additional fees to their customers. As the online consumers have been indulged with the huge promo on the platforms in the past, this condition might impact people’s interest and spending power in online shopping. The objective of this study is to get a better view of the key drivers and factors that might drive the consumers decision making in online shopping especially during the new normal of post-lockdown period. And also to have a better perspective on how the marketing stimuli cut during the investor-winter situation might impact people’s perception and tendency to purchase online. Based on the understanding based on the better understanding of possibilities of new online consumers’ behavior during the new normal and investor-winter situations, this study will also give some recommendations on how the business owners should adapt in this condition. Methodology that is used in this study was a combination of primary and secondary data collection. Primary data was collected through online questionnaires with the total gathered samples (n) of 338 people who had experience in online shopping in Indonesia. The secondary data was collected through literature study of previous research related to online purchase behavior before and after pandemic, theory related to consumer decision making process, and articles or publications from reliable sources. The study showed that the new normal has no significant impact on consumers' tendency to shop online. But unlike during the lockdown period, in the new normal consumers have more options to purchase things in other channels as well. In terms of marketing stimuli, consumers realized that there has been a decrease in promotion given by the online platforms for the past months. Consumers will still purchase things online, but the frequency might be lower than before as promotions still become the big drivers for consumers. In response to this consumer decision making drivers in online shopping, business owners could focus on other factors that influence the consumers, such as improving the service level, ensure stock availability, good assortment planning, and might explore further on developing better engagement to the consumers and expanding the sales channels. As the consumer's behavior will keep on changing naturally along the time, business owners need to keep updated and stay relevant with the changes of behavior and other external factors that might affect consumers ' decision making process.