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ANALYSIS OF PRIVACY PERCEPTIONS THROUGH SHOPPING BEHAVIOR IN INDONESIAN E-COMMERCE
Corresponding Author(s) : Lim Sanny
Humanities & Social Sciences Reviews,
Vol. 8 No. 2 (2020): March
Abstract
Purpose of the study: The purpose of this study is to determine whether privacy perceptions have an effect on shopping decisions through shopping behaviour in Indonesian e-commerce.
Methodology: This is a quantitative research using the SEM-PLS method and its purpose is for exploratory research with Millennials (aged 22-37) and Baby Boomers (53- 72) as respondents. Out of 178 questionnaires, 155 of them can proceed.
Main Findings: Privacy perceptions affect millennials and baby boomers in their online shopping decision. Privacy Risk Company shall provide more information about how the companies secure consumers’ data.
Applications of this study: In Indonesian e-commerce, the company needs to reduce transaction risk by giving money compensation or money-back guarantee to the customers if something happens throughout the transaction process. Besides that, Indonesian e-commerce needs to improve their website design and more information to the customer.
Novelty/Originality of this study: Comparison between Millenials and baby boomers’ privacy perceptions through shopping behaviour in Indonesia e-commerce website.
Keywords
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- Alfred, O. (2013). Influences of Price and Quality on Consumer Purchase of Mobile Phone in The Kumasi Metropolis in Ghana a Comparative Study. European Journal of Business and Management, 179-199.
- Belanger, F., Hiller, J., & Smith, W. (2002). Trustworthiness in Electronic Commerce: The Role of Privacy, Security, and Site Attributes. The Journal of Strategic Information Systems, 11(3), 245-270. https://doi.org/10.1016/S0963-8687(02)00018-5 DOI: https://doi.org/10.1016/S0963-8687(02)00018-5
- Bruseke, L. (2016). The influence of privacy perceptions on online. 7th IBA Bachelor Thesis Conference.
- Büttner, O., & Göritz, A. (2008). Perceived trustworthiness of online shops. Journal of Consumer Behaviour, 7(1), 35-50. https://doi.org/10.1002/cb.235 DOI: https://doi.org/10.1002/cb.235
- Gefen, D., Karahanna, E., & Straub, D. (2003). Trust and TAM in online shopping: an integrated model. MIS Quarterly, 27(1), 51-90. https://doi.org/10.2307/30036519 DOI: https://doi.org/10.2307/30036519
- Grant, G. B. (2017). Exploring the Possibility of Peak Individualism, Humanity's Existential Crisis, and an Emerging Age of Purpose. Frontiers in Psychology. https://doi.org/10.3389/fpsyg.2017.01478 DOI: https://doi.org/10.3389/fpsyg.2017.01478
- GTAI. (2015). The ECommerce Market in Germany. https://www.gtai.de/GTAI/Content/EN/Invest/_Share dDocs/Downloads/GTAI/Fact-sheets/Businessservices-ict/fact-sheet-e-commerce-en.pdf?v=5.
- Harris, K., Stiles, J., & Durocher, J. (2011). A preliminary evaluation of the millennial shopping experience: Preferences and plateaus. Hospitality Review, 29(1), 2.
- Hersona, S. M. (2013). Analisis Pengaruh Bauran Promosi Terhadap Keputusan Pembelian di Lembaka Pendidikan Speaking Karawang. Jurnal Manajemen, 10(3), 1149-1159.
- Hsiao, K. L., Chuan-Chuan Lin, J., Wang, X. Y, Lu, H. P., & Yu, H. . (2010). Antecedents and consequences of trust in online product recommendations: An empirical study in social shopping. Online Information Review, 34(6), 935-953. https://doi.org/10.1108/14684521011099414 DOI: https://doi.org/10.1108/14684521011099414
- Hughes, A. (2008). Y and how: Strategies for reaching the elusive Generation Y consumer. Honors College Theses, 74.
- Jusoh, Z., & Ling, G. (2012). Factors influencing consumers’ attitude towards e-commerce purchases through online shopping. International Journal of Humanities and Social Science, 2(4), 223-230.
- Kim, D., Ferrin, D., & Rao, H. (2008). A trust-based consumer decision-making model in electronic commerce: The role of trust, perceived risk, and their antecedents. Decision support systems, 44(2), 544-564. https://doi.org/10.1016/j.dss.2007.07.001 DOI: https://doi.org/10.1016/j.dss.2007.07.001
- KOMINFO. (2018, February). Jumlah Pengguna Internet 2017 Meningkat, Kominfo Terus Lakukan Percepatan Pembangunan Broadband.
- Koyuncu, C., & Bhattacharya, G. (2004). The impacts of quickness, price, payment risk, and delivery issues on on-line shopping. The Journal of SocioEconomics, 33(2), 241-251. https://doi.org/10.1016/j.socec.2003.12.011 DOI: https://doi.org/10.1016/j.socec.2003.12.011
- KPMG. (2016, November 3). Over half of consumers have decided against an online purchase due to privacy concerns: KPMG International.
- KPMG. (2017). The truth about online consumers. Swiss: KPMG International.
- Lee, H., & Moon, H. (2015). Perceived Risk of Online Apparel Mass Customization Scale Development and Validation. Clothing and Textiles Research Journal., 33(2), 115-128. https://doi.org/10.1177/0887302X15569345 DOI: https://doi.org/10.1177/0887302X15569345
- Li, H., Jiang, J., & Wu, M. (2014). The effects of trust assurances on consumers' initial online trust: A two-stage decision-making process perspective. International Journal of Information Management, 34(3), 395-405. https://doi.org/10.1016/j.ijinfomgt.2014.02.004 DOI: https://doi.org/10.1016/j.ijinfomgt.2014.02.004
- Lim, N. (2003). Consumers’ perceived risk: sources versus consequences. Electronic Commerce Research and Application, 2(3), 216-228. https://doi.org/10.1016/S1567-4223(03)00025-5 DOI: https://doi.org/10.1016/S1567-4223(03)00025-5
- Ling, K., Chai, L., & Phiew, T. (2010). The effects of shopping orientations, online trust and prior online purchase experience toward customers' online purchase intention. International Business Research, 3(3), 63. https://doi.org/10.5539/ibr.v3n3p63 DOI: https://doi.org/10.5539/ibr.v3n3p63
- Lissitsa, S., & Kol, O. (2016). Generation X vs. Generation Y–A decade of online shopping. Journal of Retailing and Consumer Services, 31, 304-312. https://doi.org/10.1016/j.jretconser.2016.04.015 DOI: https://doi.org/10.1016/j.jretconser.2016.04.015
- Luo, X., Li, H., J, Z., & Shim, J. (2010). Examining multi-dimensional trust and multi-faceted risk in initial acceptance of emerging technologies: An empirical study of mobile banking services. Decision support systems, 49(2), 222-234. https://doi.org/10.1016/j.dss.2010.02.008 DOI: https://doi.org/10.1016/j.dss.2010.02.008
- Mangold, W., & Smith, K. (2012). Selling to Millennials with online reviews. Business Horizons, 55(2), 141-153. https://doi.org/10.1016/j.bushor.2011.11.001 DOI: https://doi.org/10.1016/j.bushor.2011.11.001
- McAllister, D. (1995). Affect- and Cognition-Based Trust as Foundations for Interpersonal Cooperation in Organizations. The Academy of Management Journal, 38(1), 24-59. https://doi.org/10.2307/256727 DOI: https://doi.org/10.2307/256727
- Miauw, K. H. (2016). Motivasi Konsumen Dan Sikap Konsumen Terhadap Keputusan Pembelian Di WILD. Jurnal Manajemen dan Start-Up Bisnis, 567-575.
- Moreno, F. M., Lafuente, J. G., Carreón, F. Ã., & Moreno, S. M. (2017). The Characterization of the Millennials and Their Buying Behavior. International Journal of Marketing Studies. https://doi.org/10.5539/ijms.v9n5p135 DOI: https://doi.org/10.5539/ijms.v9n5p135
- Nyshadham, E.A. (2000). Privacy policies of air travel web sites: a survey and analysis. Journal of Air Transport Management, 6(3), 143-152. https://doi.org/10.1016/S0969-6997(00)00007-7 DOI: https://doi.org/10.1016/S0969-6997(00)00007-7
- Ordun, G. (2015). Millennial (Gen Y) consumer behavior their shopping preferences and perceptual maps associated with brand loyalty. Canadian Social Science, 11(4), 40-55.
- Pologerogis, N. (2017, March 6). How Globalization Affects Developed Countries.
- Rose, G, Khoo, H, & D.W, S. (1999). Current technological impediments to business-to-consumer electronic commerce. Communications of the AIS, 1. https://doi.org/10.17705/1CAIS.00116 DOI: https://doi.org/10.17705/1CAIS.00116
- Schiffman, & Kanuk. (2007). Perilaku Konsumen, dialih bahasakan oleh Zulkifli Kasip, Edisi Ketujuh.
- Sullivan, P., & Hyun, S. (2016). Clothing Retail Channel Use and Digital Behavior: Generation and Gender Differences. Journal of Business Theory and Practice, 4(1), 125. https://doi.org/10.22158/jbtp.v4n1p125 DOI: https://doi.org/10.22158/jbtp.v4n1p125
- Widayanto, R. A. (2017). Pengaruh Kepercayaan Dan Risiko Terhadap Keputusan Pembelian Melalui Sikap Pengguna Pada Situs Belanja Online Lazada.com. Administrasi Bisnis.
References
Alfred, O. (2013). Influences of Price and Quality on Consumer Purchase of Mobile Phone in The Kumasi Metropolis in Ghana a Comparative Study. European Journal of Business and Management, 179-199.
Belanger, F., Hiller, J., & Smith, W. (2002). Trustworthiness in Electronic Commerce: The Role of Privacy, Security, and Site Attributes. The Journal of Strategic Information Systems, 11(3), 245-270. https://doi.org/10.1016/S0963-8687(02)00018-5 DOI: https://doi.org/10.1016/S0963-8687(02)00018-5
Bruseke, L. (2016). The influence of privacy perceptions on online. 7th IBA Bachelor Thesis Conference.
Büttner, O., & Göritz, A. (2008). Perceived trustworthiness of online shops. Journal of Consumer Behaviour, 7(1), 35-50. https://doi.org/10.1002/cb.235 DOI: https://doi.org/10.1002/cb.235
Gefen, D., Karahanna, E., & Straub, D. (2003). Trust and TAM in online shopping: an integrated model. MIS Quarterly, 27(1), 51-90. https://doi.org/10.2307/30036519 DOI: https://doi.org/10.2307/30036519
Grant, G. B. (2017). Exploring the Possibility of Peak Individualism, Humanity's Existential Crisis, and an Emerging Age of Purpose. Frontiers in Psychology. https://doi.org/10.3389/fpsyg.2017.01478 DOI: https://doi.org/10.3389/fpsyg.2017.01478
GTAI. (2015). The ECommerce Market in Germany. https://www.gtai.de/GTAI/Content/EN/Invest/_Share dDocs/Downloads/GTAI/Fact-sheets/Businessservices-ict/fact-sheet-e-commerce-en.pdf?v=5.
Harris, K., Stiles, J., & Durocher, J. (2011). A preliminary evaluation of the millennial shopping experience: Preferences and plateaus. Hospitality Review, 29(1), 2.
Hersona, S. M. (2013). Analisis Pengaruh Bauran Promosi Terhadap Keputusan Pembelian di Lembaka Pendidikan Speaking Karawang. Jurnal Manajemen, 10(3), 1149-1159.
Hsiao, K. L., Chuan-Chuan Lin, J., Wang, X. Y, Lu, H. P., & Yu, H. . (2010). Antecedents and consequences of trust in online product recommendations: An empirical study in social shopping. Online Information Review, 34(6), 935-953. https://doi.org/10.1108/14684521011099414 DOI: https://doi.org/10.1108/14684521011099414
Hughes, A. (2008). Y and how: Strategies for reaching the elusive Generation Y consumer. Honors College Theses, 74.
Jusoh, Z., & Ling, G. (2012). Factors influencing consumers’ attitude towards e-commerce purchases through online shopping. International Journal of Humanities and Social Science, 2(4), 223-230.
Kim, D., Ferrin, D., & Rao, H. (2008). A trust-based consumer decision-making model in electronic commerce: The role of trust, perceived risk, and their antecedents. Decision support systems, 44(2), 544-564. https://doi.org/10.1016/j.dss.2007.07.001 DOI: https://doi.org/10.1016/j.dss.2007.07.001
KOMINFO. (2018, February). Jumlah Pengguna Internet 2017 Meningkat, Kominfo Terus Lakukan Percepatan Pembangunan Broadband.
Koyuncu, C., & Bhattacharya, G. (2004). The impacts of quickness, price, payment risk, and delivery issues on on-line shopping. The Journal of SocioEconomics, 33(2), 241-251. https://doi.org/10.1016/j.socec.2003.12.011 DOI: https://doi.org/10.1016/j.socec.2003.12.011
KPMG. (2016, November 3). Over half of consumers have decided against an online purchase due to privacy concerns: KPMG International.
KPMG. (2017). The truth about online consumers. Swiss: KPMG International.
Lee, H., & Moon, H. (2015). Perceived Risk of Online Apparel Mass Customization Scale Development and Validation. Clothing and Textiles Research Journal., 33(2), 115-128. https://doi.org/10.1177/0887302X15569345 DOI: https://doi.org/10.1177/0887302X15569345
Li, H., Jiang, J., & Wu, M. (2014). The effects of trust assurances on consumers' initial online trust: A two-stage decision-making process perspective. International Journal of Information Management, 34(3), 395-405. https://doi.org/10.1016/j.ijinfomgt.2014.02.004 DOI: https://doi.org/10.1016/j.ijinfomgt.2014.02.004
Lim, N. (2003). Consumers’ perceived risk: sources versus consequences. Electronic Commerce Research and Application, 2(3), 216-228. https://doi.org/10.1016/S1567-4223(03)00025-5 DOI: https://doi.org/10.1016/S1567-4223(03)00025-5
Ling, K., Chai, L., & Phiew, T. (2010). The effects of shopping orientations, online trust and prior online purchase experience toward customers' online purchase intention. International Business Research, 3(3), 63. https://doi.org/10.5539/ibr.v3n3p63 DOI: https://doi.org/10.5539/ibr.v3n3p63
Lissitsa, S., & Kol, O. (2016). Generation X vs. Generation Y–A decade of online shopping. Journal of Retailing and Consumer Services, 31, 304-312. https://doi.org/10.1016/j.jretconser.2016.04.015 DOI: https://doi.org/10.1016/j.jretconser.2016.04.015
Luo, X., Li, H., J, Z., & Shim, J. (2010). Examining multi-dimensional trust and multi-faceted risk in initial acceptance of emerging technologies: An empirical study of mobile banking services. Decision support systems, 49(2), 222-234. https://doi.org/10.1016/j.dss.2010.02.008 DOI: https://doi.org/10.1016/j.dss.2010.02.008
Mangold, W., & Smith, K. (2012). Selling to Millennials with online reviews. Business Horizons, 55(2), 141-153. https://doi.org/10.1016/j.bushor.2011.11.001 DOI: https://doi.org/10.1016/j.bushor.2011.11.001
McAllister, D. (1995). Affect- and Cognition-Based Trust as Foundations for Interpersonal Cooperation in Organizations. The Academy of Management Journal, 38(1), 24-59. https://doi.org/10.2307/256727 DOI: https://doi.org/10.2307/256727
Miauw, K. H. (2016). Motivasi Konsumen Dan Sikap Konsumen Terhadap Keputusan Pembelian Di WILD. Jurnal Manajemen dan Start-Up Bisnis, 567-575.
Moreno, F. M., Lafuente, J. G., Carreón, F. Ã., & Moreno, S. M. (2017). The Characterization of the Millennials and Their Buying Behavior. International Journal of Marketing Studies. https://doi.org/10.5539/ijms.v9n5p135 DOI: https://doi.org/10.5539/ijms.v9n5p135
Nyshadham, E.A. (2000). Privacy policies of air travel web sites: a survey and analysis. Journal of Air Transport Management, 6(3), 143-152. https://doi.org/10.1016/S0969-6997(00)00007-7 DOI: https://doi.org/10.1016/S0969-6997(00)00007-7
Ordun, G. (2015). Millennial (Gen Y) consumer behavior their shopping preferences and perceptual maps associated with brand loyalty. Canadian Social Science, 11(4), 40-55.
Pologerogis, N. (2017, March 6). How Globalization Affects Developed Countries.
Rose, G, Khoo, H, & D.W, S. (1999). Current technological impediments to business-to-consumer electronic commerce. Communications of the AIS, 1. https://doi.org/10.17705/1CAIS.00116 DOI: https://doi.org/10.17705/1CAIS.00116
Schiffman, & Kanuk. (2007). Perilaku Konsumen, dialih bahasakan oleh Zulkifli Kasip, Edisi Ketujuh.
Sullivan, P., & Hyun, S. (2016). Clothing Retail Channel Use and Digital Behavior: Generation and Gender Differences. Journal of Business Theory and Practice, 4(1), 125. https://doi.org/10.22158/jbtp.v4n1p125 DOI: https://doi.org/10.22158/jbtp.v4n1p125
Widayanto, R. A. (2017). Pengaruh Kepercayaan Dan Risiko Terhadap Keputusan Pembelian Melalui Sikap Pengguna Pada Situs Belanja Online Lazada.com. Administrasi Bisnis.