EXAMINING FACTORS INFLUENCING INDIVIDUAL'S INTENTION TO PURCHASE ONLINE USING SOCIAL MEDIA IN INDONESIA

• Main Author: Caya, Nero
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/81867
• Institution: Institut Teknologi Bandung

Purpose – This study, which based on the theory of Stimulus-Organism-Response (SOR), aims to examine electronic word of mouth (E-WOM), trust, and perceived value as the factors influencing individual’s intention to purchase online in Indonesia Design/methodology/approach – A filtered question online questionnaire was distributed to the Indonesian and 152 responses were obtained. To test the hypothesis and analyse the data, the partial least squares structural equation modelling (PLS-SEM) was used. Findings – The results show E-WOM has a direct effect on Trust, Perceived value, and Purchase Intention. Trust and perceived value has a direct effect on purchase intention and has a mediating effect between E-WOM and Purchase intention. Practical implications – The finding will help businessmen to develop and improve their platform for customers or potential customers to drop or share the electronic word of mouth for their products, which will increase the chance to attract more sales. Originality/value – This study may be a complementary to the antecedent studies and will provide more data to other researchers for references.