E-Commerce Shopping Intentions in the Industrial 4.0 Era: An Analysis of the Impact of Millennium Attitudes

 

Denta Sella Lokunuha

Master of Management, Faculty of Economics & Business, Airlangga University, Surabaya

Email: [email protected]

Keywords

 

ABSTRACT

industry 4.0, millennials, e-commerce,

 

·       The rise of the millennial generation defined the fourth industrial revolution. This generation is known as a generation that is innovative, creative and likes freedom. The contemporary generation, often known as the millennial generation or the generation that was born at the turn of the millennium, is currently exhibiting highly noticeable shifts in consumer lifestyles. Digital technology is simultaneously beginning to permeate many facets of life in this time period.This study uses quantitative data. The sample used in this study was 300 millennial generation respondents at a private university in Surabaya. The results: trust, price and service quality have a significant effect on the online buying attitude of the millennial generation, subjective norms have an effect on the online buying interest of the millennial generation and attitudes have a significant effect on the online buying interest.

 

 

 

 

 

 

INTRODUCTION

In the current era of globalization, business is becoming more and more cutthroat (Anwar & Adidarma, 2016). Businesses compete with one another to maintain a business in order to survive in the face of fierce competition. Nowadays, it's not difficult to acquire information technology because it affects every aspect of people's life. Information technology is constantly evolving, changing, and becoming more sophisticated (Mujiyana & Elissa, 2013). Because of this sophistication, it can bring a lot of comforts to people's life. In the economic sphere, particularly in trade, this convenience is also felt. Nowadays, commerce and information technology go hand in hand. The word "e-commerce" was coined as a result of the convergence of commerce and information technology. Due to the fact that people in the Industrial Revolution 4.0 age fight not only with one another but also with machines supported by digitalization technology systems, company competitiveness in this regard is today extremely fierce. In this era, humans are required to be able to prepare themselves to have reliable competence as creators of systems and experts in operating digitalization technology systems. Millennials are a generation that contributes a lot and encourages the Industrial 4.0 revolution. Millennials are the ones who make technology more advanced and the era changes digitally (Hartatin & Simanjuntak, 2016). The opportunity for the 4.0 industrial revolution is enormous if Indonesia is able to adapt and transform relevantly. The millennial generation has an important role in filling this opportunity. Because they are the group of people who are most able to adapt in the midst of industrial digitalization. Because technology advancement will always go hand in hand with human development and scientific advancement, the industrial revolution 4.0 demands that humans participate in technical breakthroughs (Lupiyoadi, 2013). Human thought, behavior, and interpersonal relationships have all been significantly altered by the Fourth Industrial Revolution. This time period will have an impact on a variety of human activities and social relationships (Akroush & Al-Debei, 2015). The company's objective is to increase sales volume through an internet marketing approach by attracting new consumers, keeping existing ones, and retaining existing ones. By introducing products with fresher concepts and steadily raising product quality, it is feasible to draw in new clients or keep hold of current ones. Data from an internet user survey conducted in Indonesia in 2015 indicated that there were 88.1 million internet users there, according to the Center for Communication Studies (PUSAKOM) UI and the Association of Indonesian Internet Service Users (APJII). The percentage of internet users in Indonesia is 34.9% when measured against the country's 252.4 million total inhabitants. Comparing this number to 2013, when there were 28.6% more new internet users, shows a sharp growth. With a combined 52 million users, the Java and Bali regions of Indonesia have the highest internet users. With 16.4 million users, West Java is the province with the largest online population. Indonesia has had relatively rapid growth in online retail (Haryono, 2014). There were 36% more active internet users in 2013 than there were in 2010 (Laudon & Traver, 2014). This amount is nearly twice as high as growth in Malaysia and Thailand and twice as high as the Philippines. even 3.5 times Singapore's rate of internet growth . There are many different sorts of e-commerce that are increasing around the world, but just a few of them are doing so quickly in Indonesia. The marketplace is the kind of e-commerce that is growing in Indonesia. The benefit of using a marketplace over setting up a personal website or online store is that vendors can offer their goods through electronic media. Tokopedia.com, bukalapak.com, blibli.com, zalora, lazada, olx, sale stock, elevenia, and other online markets are only a few of the Indonesian marketplaces. Sellers only need to provide photos of merchandise and upload images including prices and other descriptions of their merchandise. Network security is when a computer connected to an internet network has many risks of security threats compared to a computer that is not connected to any network (Ersada, 2021). Convenience is the next significant aspect that can have an impact on online purchases. Every facet of life has been made more convenient by the internet, including the ability to purchase and sell things online. Anyone who wishes to shop online can do so with ease from anywhere at any time as long as their device is linked to the internet (Efraim Turban & King Jae Kyu Lee, 2015). Marketplace usually offers steps in purchasing, namely select, buy, pay and receive goods. But in reality the steps are not as easy as they are offered. As a third party that mediates the transaction process, customers who want to buy products must go through a series of processes that are longer than customers buying directly from the seller. This is due to the fact that when a client chooses to buy something through one of the media marketplaces, buyers and sellers must communicate via a third party, the marketplace, rather than directly. Unlike other online stores, where buyers and sellers can communicate directly without having to go through a lengthy process via a third party [3]. The high number of smartphone users in Indonesia makes it easier for people to connect and make online shopping transactions anywhere and anytime. This inevitability is what makes the online shopping business in Indonesia increasingly widespread, and also the emergence of several online shopping applications that provide various conveniences. The degree of convenience is determined by how readily the user can use the system, how free of issues it is, and how simple it is for a novice to operate. Some of the conveniences presented in transactions in online shopping applications are time efficiency, without having to face to face customers can buy the desired items, as well as some of the features offered by the application that are simple to use and understand. Apart from being easy to use, several online shopping applications offer discounts and other facilities such as free shipping, easy payments, there are options that you can pay on the spot, bank transfers, transfers via ATMs, credit cards and can pay at minimarkets that have worked with the online shopping application. Today's students often discuss online shopping as a topic of conversation to establish communication, and students also feel spoiled by the convenience of online shopping and the many products offered that are sometimes not available in offline stores. The current spending habits of students are affected by lifestyles that frequently follow trends and indulge excessively, therefore this represents the biggest chance for producers to make money. Noticing this opportunity, sellers are trying to reach millennial generation buyers by making various offers such as super quality, low prices, to offering other conveniences such as offering attractive features and delivery service. Today's millennial consumers are critical and intelligent in choosing which products they need and how they benefit. In order for businesses that use the marketing concept to sell their products to be aware of how customers behave and what elements affect their purchasing decisions. Along with the development of technology and the internet in Indonesia, producers are trying to take advantage of opportunities to gain profits. Students, who belong to the millennial age, use a variety of methods to express themselves, from picking a method of study to selecting friends, how to dress, how to choose entertainment, and even how to purchase. One of the reasons is through social media, apart from being a means of socializing, consumers can get comfort in the ease of getting the product information they need or want (Hidvégi & Kelemen-Erdős, 2016). In the online marketplace Bukalapak.com, additional study on customer buying interest was undertaken. This research found that consumer buying interest is influenced by use, shopping pleasure, shopping experience, and consumer trust.

 

METHODS

A quantitative research method was selected for the study. The population of Sukabumi's modern community, which engages in online shopping, is the subject of this study. The Surabaya city is the site of the research. The Sukabumi generation's young adults who engage in online shopping in the marketplace serve as the study's subjects. sample approach determined utilizing the Slovin formula. 300 respondents made up the samples used in this investigation. The measurement method employs a structural equational model (SEM) with purchase intention and online shopping decisions as endogenous factors and service quality and trust characteristics as exogenous variables. WarpPLS 6.0 has been used as the measurement tool. WarpPLS 6.0 is a program for structural equation models that tests the simultaneous existence of a linear link between latent constructs, either in a reflective or formative manner (Haryanto & Priyo, 2020). The reliability indicator criterion for the measurement model is the significant weight parameter with a p value 0.05. Collinearity uses tolerance > 0.2 and VIF 5. The premise of VAF > 80% is used to examine indirect factors for full mediation, 20% VAF 80% for partial mediation, and VAF 20% for no effect mediation. The level at which the theoretical model and empirical facts are put to the test of applicability (Goodness-of-fit statistics). Online surveys were used as the primary means of data collection. A Likert scale is used for the changeable measurement scale. Primary data, or data gathered directly through questionnaires, and secondary data, or data obtained in the form of documents, are the two types of data sources employed.

 

RESULTS

A descriptive analysis of the respondents' characteristics and a descriptive analysis of their replies to the research variables are presented before discussing the analysis of the study's findings. Both analyses serve to summarize the respondents' responses to the variables under consideration. The two stages of the two-stage structural equation modeling (SEM) methodology used in this study's statistical analysis tool were measurement model analysis and structural equation model analysis. AMOS 22 software will be used to streamline and assess the presumptions prior to analysis, including: descriptive analysis, validity test, reliability test, normality, and outliers, to assure the accuracy of the calculation findings.

The use of e-commerce services by millennials is influenced in this study's analysis of consumer behavior. It indicates that as the usefulness of current technology increases, so will students' consumption habits. So that it is consistent with the current digital economy period that is well-liked by millennials since they are seen as practical and time-saving. In According to this report, students who are millennials are categorized as being busy with a variety of activities. Students must be independent and not rely on anyone when attending lectures. This is due to the numerous activities that take up a lot of time in the world of lectures, which can keep students quite busy. For instance, a demanding class schedule, numerous assignments, time-consuming organizational tasks, etc. Students don't have enough time to consume fashion products that can enhance their appearance due to this extremely time-consuming activity. This study establishes that the information media variable has a detrimental and significant impact on how students use e-commerce services for consuming. This indicates that despite the fact that Indonesia's information media actively promote e-commerce, students' consumption habits have not changed. Given that customer demand is a consequence of their purchasing power, price is an essential component of consumer purchasing behavior and one of the considerations that consumers make[24]. This is important because people value evidence and quality over mere information. Students must be proficient in technology and open-minded to many types of existing knowledge in the world of lectures. Rapid information dissemination occurs across all media. As a result, students will constantly be aware of the information that is currently the subject of widespread discussion. The knowledge of e-presence commerce's is today dispersed in a variety of media, including television, the internet, social media, seminars, and via friends. The general public can learn more about e-commerce through these numerous channels. Nevertheless, this information only gives a general overview of each e-commerce, not information regarding the goods that are sold there. Indeed, people seek for more specific information before making a purchase. This is done to learn more about a product's specifications. Moreover, using e-commerce services has an impact on student consumption habits. So, the trust that consumers have in online retailers will increase along with the level of student behavior consumption. Notwithstanding their lack of readiness for online purchases, research on generation Y customers in Malaysia reveals that the trust element is the most important component when they choose their online shopping sites (Akroush & Al-Debei, 2015). The trust element is a key determinant of customer attitudes toward online shopping, it was also revealed. Consequently, the confidence of the millennial generation The age of the digital economy has already started to take hold. Millennials' trust in online transactions may increase as a result of their positive experiences with e-commerce services. Customer attitudes are significantly impacted by the quality of the services offered by online retailers, which gives them a competitive edge.

When considering these factors, the physical form (tangible) is the most significant because Instagram already has a distinct location and a customer service contact, which can have a greater impact on millennial generation consumer attitudes about the social networking site Instagram. Instagram is a social media platform that has grown in popularity as a platform for online commerce. When provided in person, service quality is usually seen right away, but when it is done online, customers cannot see it for themselves, making it a weak factor in millennials' opinions on making purchases. Based on prior experience, consumers' feelings of security and comfort when using e-commerce services may develop. Students would feel at ease if they receive good service when purchasing items from e-commerce.commerce. This comfort will gradually foster trust. Apart from arising from a sense of comfort, students' trust ine-commerce services can also arise from experiences after the goods ordered through e-commercecommerce has been received and the item is in accordance with expectations. So students as consumers will have confidence that the goods offered by e-commerce completely true to the original item. Halbini demonstrates that the pace of the economy is still strong thanks to the increase in people's spending power. On the other hand, society does engage in some consumerism. Today, e-commerce plays a significant part in assisting people in meeting their basic necessities, including fulfilling their interests and other wants. E-commerce is used for everything. The government is already utilizing e-commerce to lessen social connection and physical contact. Hence, do not be shocked if e-commerce usage increases. Every generation will benefit from the advancement of technology, but only the generation that is able to adapt will be able to control it, including the millennial generation. The millennial generation was born in an age where everything was technological, and logically, they will quickly adapt so that technology will help them carry out their functions. However, over time, there has been a misperception of the use of technology, and an understanding of the problems has emerged. 4.0. The Science of Human Behavior Social Environment sees assessment as a tool in knowing the nature and condition of client problems, one of which looks at the Biopsychosocial aspect.

 

CONCLUSION

         It is clear from the description of the analysis and the findings above that e-commerce and the usage of technology are related. The high level of digital transactions shows that people have consumptive behavior so that e-commerce has a potential market in Indonesia. In addition to the increasing level of internet usage, the development of e-commerce business has also occurred due to the high public interest in the practicality of activities. During the pandemic the services and goods provided by website-based business sites fulfilled a very large number of clients and had a positive impact on the country's economy. External factors also play a role in purchasing decisions such as the environment and lifestyle. Yet, it is important to pay closer attention to whether the purchases are actually necessary or are simply wanted to keep up with fashion trends. As a result, we can restrain compulsive and hedonistic behavior. It is preferable to use creativity and self-control when making purchases in the age of 4.0 to period 5.0. There will be many changes and technical advancements in the future, which of course will be more sophisticated and make human life easier. To determine what to do and what not to do in this situation, we must be shrewd. This means that the millennial generation will be interested in making online purchases based on the level of trust and quality of service offered. If the millennial generation already has an interest in online purchases, it is very likely that they will make a purchasing decision because the influence of interest on purchasing decisions is quite large. This needs to be considered by providers of goods or sellers in online stores that they must increase the trust and quality of the services they provide. The emergence of information technology and automatically managed manufacturing processes is a result of the quick development of computer technology, which transforms one's domain of expertise into a technology-based application.

         The industrial revolution 4.0 has brought about the birth of digital technology, which has an impact on human life everywhere. Throughout the fourth industrial revolution, all activities were conducted through automated systems, and as internet technology advanced, it not only became a means of establishing global connections but also a foundation for the processes used in commercial transactions. Technological developments in Indonesia have affected people's lifestyles, especially the Millennial Generation. The behavior of the millennial generation has a high level of enthusiasm for technological developments. The millennial generation has a hedonic behavior pattern where they make purchases based on aspects of pleasure, sensory involvement, and out of necessity [27]. With the very rapid development of technology, supported by generations Millennials, who are now entering the world, are entering the 4.0 era generation, where everything is digital in this era, from parents to children, they have been trained in using technology such as mobile phones or gadgets. Shopping applications or mobile shopping are among the technical advancements that are currently popular with many individuals (MS). When there is activity related to purchases made by someone utilizing a smartphone or other device enabled by an internet network, mobile shopping has taken place. Mobile Shopping is very varied, because there are many shopping platforms with different features and systems in each application. The existence of many services that will be obtained by consumers makes it easier for consumers to buy goods and makes it easier for consumers to find the products they want and need without having to go to every store. Another convenience in Mobile Shopping is that consumers can interact directly with shop owners without meeting, because in the application a number will appear that consumers can contact so that consumers trust the application.

 

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