The Determinant Factors of E-Commerce Usage Behavior During Flash Sale Program

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CommIT (Communication & Information Technology) Journal 14(2), 65–72, 2020

The Determinant Factors of E-Commerce


Usage Behavior During Flash Sale Program
Arta Moro Sundjaja1∗ , Gladys Valentina Arisanto2 , and Sarah Fatimah3
1−3 Information System Department, School of Information Systems, Bina Nusantara University

Jakarta 11480, Indonesia


Email: 1 [email protected], 2 gladys [email protected], 3 sarah [email protected]

Abstract—The research objective is to analyze the transactions, the Indonesians’ online purchase behavior
determinant factors of the purchase intention during a also increases.
flash sale program. It is conducted from October 2018 Around 2014, electronic commerce began to develop
to January 2019. The researchers apply a quantitative
approach. The sampling technique is snowball sampling. rapidly in Indonesia. Some e-commerce names like
The survey data are collected from 210 respondents Bhinneka, Lazada, Tokopedia, Blibli, Bukalapak, and
who shop online in Indonesia using questionnaires. The others started to advertise a lot through advertising
data are examined using Structural Equation Modelling media on TV, the Internet, and others to get people
(SEM) with AMOS ver. 25. The research results indi- to buy online. The products sold on an e-commerce
cate that the effect of perceived usefulness, information
quality, and web quality on purchase intention are website are various, such as fashion products, elec-
mediated by attitude. The flash sale program has a tronic devices, beauty care, household appliances, and
moderating impact on purchase intention. The effect of transportation tickets.
perceived ease of use and trust in the purchase intention E-commerce is business, technology, society, and
mediated by attitude is not significant. The R-squared the ability to buy and sell goods and services via
value of attitude on e-commerce is 0.527, and purchase
intention is 0.369. These research results are important the Internet. It involves the process of ordering goods
for e-commerce management to understand the essential and services, as well as shipping to consumers. E-
factors of purchase intention during a flash sale program. commerce was introduced 40 years ago and until now
continues to grow with new technology, innovation,
Index Terms—Purchase Intention, Perceived Ease of and thousands of businesses entering the online market
Use, Information Quality, Web Quality, Flash Sale Pro- every year. The main goal is to provide comfort, safety,
gram and experience to consumers [3]. In the context of
electronics, e-commerce is the production, distribution,
I. I NTRODUCTION marketing, sale, or delivery of goods and services by
electronic means [4].

T ECHNOLOGICAL developments in the age of


globalization have brought rapid progress in sev-
eral areas, including the electronic commerce (e-
Based on previous research, the concept of flash sale
has been analyzed in different industries [5–7]. Flash
sale program is a new phenomenon where e-commerce
commerce) industry. The number of internet users in sells various types of products and brands online at a
2017 reached 143.26 million people out of Indonesia’s discount for a certain period [5, 7]. It has a positive
total population of 262 million people [1]. It shows that effect on the consumer’s purchase intention [8]. It is
more than 50% of Indonesia’s population is connected also made to increase sales of specific products or the
to the Internet. Meanwhile, the population of Indonesia sales on the e-commerce website. The main purpose
that conducts online commerce transactions is 32.19% of a flash sale is to sell products in large quantities at
of Internet users. There is a significant increase in a relatively cheap price [5].
Indonesian e-commerce transactions every year. In- Several studies on the determinant factors of pur-
donesia’s e-commerce transactions reached $3.5 billion chase intention on the marketplace have been con-
in 2015, a significant increase of around $0.9 billion ducted at Indonesia [6, 9], Malaysia [10], Dubai [11],
compared to 2014 [2]. The researchers conclude that Brazil [8, 12], India [5, 7, 13], Spain [14], Slove-
with the increasing use of the Internet and e-commerce nia [15], and USA [16]. Research on the factors that
influence purchase intention has been carried out in the
Received: July 21, 2020; received in revised form: Sep. 02,
2020; accepted: Sep. 02, 2020; available online: Sep. 22, 2020. e-commerce industry [7, 9, 10, 13], food retail [17],
*Corresponding Author and online hotel [16]. The previous study has in-
Cite this article as: A. M. Sundjaja, G. V. Arisanto, and S. Fatimah, “The Determinant Factors of
E-Commerce Usage Behavior During Flash Sale Program”, CommIT (Communication & Information
Technology) Journal 14(2), 65–72, 2020.
vestigated that trust, risk, and perceived usefulness Information quality is the quality of information
influence consumer interest in C2C e-commerce [9]. presented to help consumers. Information quality
The other study evaluates a new model that combines allows consumers to find a product and increase the
website quality aspects with other trust-building fac- satisfaction of the selected product [17]. Previous
tors [10]. Another study looks at the characteristics research has also shown that the information quality
of e-commerce websites (information quality, website is positive and significant on attitude in online
features, and product factors) that influence purchase shopping [23]. So, the fourth hypothesis is:
intentions of food products [17]. The latest research in
model building analyzes the impact of flash sale pro- H4: there is a positive effect between information
gram on purchase intentions and the moderate impact quality and attitude.
of attractiveness on the relationship between intention
to purchase discounted and impulsive products, hedo- Web quality is an essential factor in e-
nic perceptions, and financial risk [8]. commerce [16]. Website quality is determined
Then, perceived ease of use refers to the degree by system quality, service quality, and information
to which the user claims to believe that using a quality [24]. A good website has an interactive design
specific system will be simple and easy. It has a to accommodate consumers’ interaction and attractive
positive and significant relationship to attitude [18]. appearance to attract consumers to purchase the
Online shopping makes it easy to compare products product. The previous research has found a positive
among vendors. This condition positively affects and significant relationship between web quality and
the relationship between perceived ease of use and attitude toward the web [25, 26]. The fifth hypothesis
attitude on online shopping. The first hypothesis is as is:
follows.
H5: there is a positive effect between web quality
H1: there is a positive effect between perceived and attitude.
ease of use and attitude.
Purchase intention is defined as a measure of
Perceived usefulness is the extent to which consumer desire to make online purchases in e-
consumers believe that using certain technologies commerce [13]. In e-commerce, it is the relationship
will improve work performance in an organizational between intention and behavior [27]. Attitude results
context. Perceived usefulness has a positive and from consumers’ trust in the positive or negative
significant effect on attitude because the perceived online shopping experience [13]. In previous e-
benefits such as offering various products will bring commerce studies, attitude towards e-commerce has
a positive attitude to online shopping [18]. Thus, the been studied as one of the main factors of online
second hypothesis is: consumer behavior [28]. The attitude of consumers
to act will determine the decision. Thus, purchase
H2: there is a positive effect between perceived intention is a factor that predicts the consumer’s
usefulness and attitude. decision to make a transaction. Therefore, the sixth
hypothesis is as follows.
Trust is an essential factor in influencing online
purchases and increase consumers to buy a product H6: there is a positive effect between attitude and
in e-commerce. It is also a means to influence the purchase intention.
decisions of online consumers [10, 14, 19]. Previous
research shows a positive and significant effect of trust Based on previous research, a flash sale is a
on the attitude of buying airline tickets [20]. Another new phenomenon where e-commerce sells various
study also shows a positive and significant impact of products and brands online with discount in a specified
trust on attitude in the use of Instagram [21]. In the period [5, 6]. Flash sale program has a positive effect
context of B2C e-commerce, trust is a key antecedent on consumers’ purchase intentions [8]. So, the last
in determining online purchase intentions through hypothesis is:
behavioral attitude [22]. The third hypothesis is as
follows. H7: Flash sale program moderates the relationship
between attitude and purchase intention.
H3: there is a positive effect between trust and
attitude. The researchers conclude that previous researchers
have not examined the determinant factors of purchase

66
Cite this article as: A. M. Sundjaja, G. V. Arisanto, and S. Fatimah, “The Determinant Factors of
E-Commerce Usage Behavior During Flash Sale Program”, CommIT (Communication & Information
Technology) Journal 14(2), 65–72, 2020.

intention during a flash sale program. The research


also investigates the moderation effect of the flash sale
program. The flash sale is first researched in India dur-
ing the celebration of the Big Day [5]. Therefore, the
research purpose is to examine the effect of perceived
ease of use, perceived usefulness, trust, information
quality, and web quality on purchase intention medi-
ated by attitude and the moderating effect of flash sale
program on the purchase intention.

II. R ESEARCH M ETHOD


The research applies a quantitative approach based
on the philosophy of positivism to examine the re- Fig. 1. Conceptual research model.
lationship between variables. The method of analy-
sis uses Structural Equation Modelling (SEM) with
AMOS ver. 25 [13, 29]. The research uses descrip- 2019 through social media such as Instagram, Face-
tive and explanatory methods. Descriptive research book, WhatsApp, and Line. Researchers frequently
illustrates or describes each of the research variables. send invitations to prospective respondents online to
Meanwhile, explanatory research explains the causal fill out the questionnaire. Although the distribution
relationship (cause-effect) among research variables. through social media has a low response rate, re-
The research is conducted from October 2018 to Jan- searchers find respondents who fit the criteria through
uary 2019. online distribution.
In the research, sample determination is based on the Researchers compile all indicators in the research by
target population of consumers who have purchased adopting indicators that discuss the influencing factors
online at e-commerce in Indonesia. The components on purchase intention during the flash sale program
of population are limitless and are not known for sure. in e-commerce. Indicators in the research outside of
Besides, there are no members of the population. The Indonesia using English will be translated first to
complexity of population objects is also heterogeneous identify ambiguous questions. Thus, the respondents
that the elements of the population have relatively understand the question well. Indicators of perceived
different characteristics from one to another. ease of use and perceived usefulness are adapted from
The used sampling technique is snowball sampling. Ref. [9]. Indicators of purchase intention, trust, infor-
This technique is chosen to provide the best results mation quality, and web quality are from Ref. [10].
to represent the population. Researchers will randomly Then, the indicators of attitude are from Ref. [13].
select e-commerce and online shopping community Figure 1 shows the conceptual research model.
groups on social media to distribute questionnaires.
The subjects of the research are the followers of e-
III. R ESULTS AND D ISCUSSION
commerce social media in Indonesia. The researchers
believe that someone who decides to follow social Based on gender, 59% or 123 respondents are fe-
media of e-commerce has an interest or concern in male, and 41% or 87 respondents are male. For the age,
online shopping in Indonesia. There are several sam- most of the respondents are 21 to 30 years old (59% or
ple selection criteria. First, the respondents have ever 123 respondents). There are also 54 respondents aged
purchased online at e-commerce in Indonesia. Second, 13 to 20 years (26%), 20 respondents aged 31 to 40
the age of respondents is a minimum of 13 years old. years (9%), and 13 respondents aged over 40 years
Third, the respondents’ geographical location (domi- (6%). Then, 3% or 5 respondents have a junior high
cile or location of work) is in Indonesia. They are school education level. About 54% or 114 respondents
also asked to choose the top three e-commerce sites have a high school or vocational education level. There
used [30]. Hence, the number of samples in the study are 58 respondents with diploma/bachelor’s degrees
is 210 respondents. (27%), 24 respondents with master’s degrees (12%),
Data collection techniques are collective adminis- and 9 respondents with a doctoral degree (4%). By
tration, electronic questionnaires, and administration profession, most of the respondents are students (57%
in public spaces. The researchers make an electronic or 120 respondents). It is followed by employees
questionnaire using Google Forms, and the research (34% or 70 respondents), entrepreneurs (6% or 13
survey is conducted from December 2018 to January respondents), and housewives (3% or 7 respondents).

67
Cite this article as: A. M. Sundjaja, G. V. Arisanto, and S. Fatimah, “The Determinant Factors of
E-Commerce Usage Behavior During Flash Sale Program”, CommIT (Communication & Information
Technology) Journal 14(2), 65–72, 2020.

TABLE I
R ESPONDENT P ROFILE AND E- COMMERCE P URCHASE B EHAVIOUR .

Question N % Question N %
Gender E-Commerce Purchase Frequency
Male 87 41 ≥ 3 times/week 8 4
Female 123 59 < 3 times/week 51 24
Age < 3 times/month 71 34
13 – 20 54 26 ≥ 3 times/month 42 20
21 – 30 123 59 ≥ 3 times/year 19 9
31 – 40 20 9 < 3 times/year 19 9
> 40 13 6 E-Commerce Purchase Value
Education < Rp100,000.00 16 8
Junior High School 5 3 < Rp450,000.00 144 68
Senior High School 114 54 < Rp1,000,000.00 37 18
Diploma/Undergraduate 58 27 ≥ Rp1,000,000.00 13 6
Master Degree 24 12 E-Commerce Platform
Doctoral Degree 9 4 Tokopedia 180 85.7
Occupation Shopee 171 81.4
Student 120 57 Lazada 128 60.9
Housewife 7 3 Bukalapak 79 37.6
Entrepreneur 13 6 JD.id 36 17.1
Employee 70 34 Blibli.com 21 10
N= 210 respondents.

TABLE II
T HE R ESULTS OF M ISSING VALUE T EST, N ORMALITY T EST, VALIDITY, AND R ELIABILITY T ESTS .

Skewness Kurtosis Validity and Reliability


Variables Missing Value
Statistic Std. Error Statistic Std. Error r-calculate α
Purchase intention 0 -0.329 0.168 0.490 0.334 0.665
Perceived ease of use 0 -0.535 0.168 -0.079 0.334 0.742
Perceived usefulness 0 -0.685 0.168 0.226 0.334 0.659
Trust 0 0.075 0.168 -0.436 0.334 0.677 0.937
Information quality 0 -0.259 0.168 0.149 0.334 0.839
Web quality 0 0.064 0.168 -0.335 0.334 0.853
Attitude 0 -0.266 0.168 -0.452 0.334 0.811

Based on the frequency of shopping on e-commerce can choose three answers. Table I presents the profile
sites, most respondents shop less than 3 times per and behavior of respondents who shop through e-
month (34% or 71 respondents). The results are fol- commerce during the flash sale program.
lowed by more than or equal to 3 times per month
(20% or 42 respondents), less than 3 times per week The researchers conduct the missing value test. It
(24% or 51 respondents), less than 3 times per month examines the incomplete data from the data collection
(9% or 19 respondents), more than or equal to 3 times process. Based on the filled questionnaire results, the
per year (9% or 19 respondents), and more than or data are complete because the questionnaire designed
equal to 3 times per week (4% or 8 respondents). using Google Forms has added the function of the
For the spending on e-commerce sites, 16 respondents validation field that must not be empty. Next, the
have spent less than Rp100,000.00 on e-commerce researchers test the normality to determine whether the
sites (8%). Then, 144 respondents spend less than data are normally distributed or not. Research using
Rp450,000.00 (68%), and 37 respondents use less than questionnaires can be tested parametrically to analyze
Rp1,000,000.00 (18%) on e-commerce sites. About consumers’ opinions using a Likert scale. The sample
6% or 13 respondents have average spending of more used in the research is below 300 so that normality tests
than or equal to Rp1,000,000.00. According to the can be done by evaluating the distribution of skewness
most commonly used e-commerce, the top three e- and kurtosis [31]. Table II shows the skewness and
commerces are Tokopedia (85.7%), Shopee (81.4%), kurtosis value of all variables. If the z-score has a
and Lazada (60.9%). In this question, the respondents range outside of -3.29 and +3.29 with an alpha level
of 0.05, the data distribution is considered abnormal.

68
Cite this article as: A. M. Sundjaja, G. V. Arisanto, and S. Fatimah, “The Determinant Factors of
E-Commerce Usage Behavior During Flash Sale Program”, CommIT (Communication & Information
Technology) Journal 14(2), 65–72, 2020.

TABLE III
D ESCRIPTIVE A NALYSIS AND C ONFIRMATORY FACTORS A NALYSIS R ESULTS OF Q UESTIONNAIRE I NDICATORS .

Variables Mean Standardized Loadings AVEa CRa


Perceived ease of use: 4.18
Easy to use e-commerce website 4.22 0.881
Easy to learn e-commerce websites 4.21 0.871 0.742 0.896
Easy to find the required product or item 4.10 0.833
Perceived usefulness: 4.17
Improve performance in finding and buying products on e-commerce websites 4.18 0.854
Increase effectiveness in finding and buying products on e-commerce websites 4.19 0.942 0.734 0.891
Content on Indonesian e-commerce websites is useful. 4.14 0.766
Trust: 3.44
Convince consumers about the products on e-commerce websites during the flash 3.51 0.870
sale program 0.724 0.886
Trust in products on e-commerce websites during the flash sale program 3.40 0.934
Flash sale programs on e-commerce in Indonesia can be trusted 3.40 0.737
Information quality: 3.80
Provide accurate information 3.90 0.880
Provide the needed information 3.68 0.840 0.738 0.894
Present the latest information 3.83 0.858
Web quality: 3.77
Website features are good 3.82 0.848
The quality of the website meets the expectations 3.82 0.869 0.712 0.881
The website offers unique features 3.68 0.814
Attitude on e-commerce: 3.99
Shopping on e-commerce is a good idea 3.99 0.817
Shopping on e-commerce is fun 4.00 0.858 0.669 0.858
Think positive about e-commerce 3.99 0.777
Purchase intention on e-commerce: 3.55
Purchase intention of product that is recommended by the e-commerce 3.69 0.753
High purchase intention of product that is recommended by the e-commerce 3.44 0.867 0.592 0.811
Purchase intention of product that is recommended by e-commerce in the future 3.53 0.677
a
AVE: Average Variance Extracted/ CR: Composite Reliability

TABLE IV reliable.
M ODIFICATION I NDICES AND PAR C HANGE VALUE .
Then, Table III shows the mean, standardized load-
Covariance M.I Par Change ing, average variance extracted, and construct relia-
E1 (PEOU 1) – E2 4.067 0.022
bility of each indicator and variable. In the research,
(PEOU 2) the cut-off value is 0.6 for factor analysis and 0.5 for
E4 (PU 1) – E6 (PU 6.859 -0.042
3)
the average variance extracted. Therefore, the indica-
E16 (ATT 1) – E18 8.910 -0.058 tors already accurately measure the perceived ease of
(ATT 3)
use, perceived usefulness, trust, information quality,
M.I= modification indices
web quality, attitude, and purchase intention on e-
commerce. For testing the reliability, the cut-off value
for construct reliability is 0.8. All variables have CR
The researchers can conclude that the data are normally values above 0.8, so that the variables are reliable.
distributed. Next, the researchers investigate the measurement
For the pre-test, the questionnaires are distributed model using the goodness-of-fit indices. The results
to 30 respondents. The results of the questionnaire of goodness-of-fit indices show the model is fairly fit:
are examined using SPPS. Using Bivariate Correlation, χ2 = 229.346, χ2 /d.f = 1.365; GFI = 0.910; AGFI =
researchers test the validity of all indicators in each 0.876; NFI = 0.930; CFI = 0.980; RMSEA = 0.042;
variable. Moreover, the researchers calculate Cron- and TLI = 0.975. The researchers refine the model
bach’s alpha by using SPPS to test the reliability of using modification indices by adding three correlations
the research instrument. Reliability for each factor is between indicators of perceived ease of use (PEOU) 1
calculated using the coefficient of α, with a value of and 2, indicators of perceived usefulness (PU) 1 and
0.937 [13]. Based on Table II, the data are valid and 3, and indicators of attitude (ATT) 1 and 3. Table IV

69
Cite this article as: A. M. Sundjaja, G. V. Arisanto, and S. Fatimah, “The Determinant Factors of
E-Commerce Usage Behavior During Flash Sale Program”, CommIT (Communication & Information
Technology) Journal 14(2), 65–72, 2020.

The research model suggests that flash sale program


increases the purchase intention (H7). The finding also
shows that the moderating effect is strong. The path
coefficient of a flash sale program is 0.370. Flash sale
program provides a more substantial impact in improv-
ing attitudes in making decisions to buy products in
e-commerce. The research offers a new perspective
compared to previous research [5]. It highlights the
importance of considering the perceived usefulness,
information quality, and web quality in forming a
positive attitude toward e-commerce that will increase
purchase intention [25, 26]. The R-squared value of
attitude toward e-commerce is 0.527. It means 52.7%
Fig. 2. Path analysis results.
of the attitude toward e-commerce can be explained
by perceived ease of use, perceived usefulness, trust,
information quality, and web quality. Meanwhile, the
shows the modification indices and par change value
R-squared of purchase intention on e-commerce is
from three variables. After the modification of model,
0.369. It implies that 36.9% of the purchase intention
the goodness-of-fit indices increase and show good fit:
on e-commerce can be explained by attitude toward
χ2 = 184.145, χ2 /d.f = 1.116; GFI = 0.925; AGFI =
e-commerce and the flash sale program.
0.900; NFI = 0.944; CFI = 0.994; RMSEA = 0.024; and
The research implication is that the seller should
TLI = 0.992. The final model also demonstrates good
provide more accurate information, updated stock in-
understanding of the purchase intention on e-commerce
formation, and detailed product description to increase
during the flash sale program.
the information quality [17]. Furthermore, The e-
Figure 2 shows the path coefficients and p-value for commerce developer should improve the user expe-
all hypotheses. Five paths are significant, and two paths rience in searching and buying products to increase
are insignificant. The perceived usefulness affects the the perceived usefulness [34]. The e-commerce de-
attitude toward e-commerce (H2). This finding sup- veloper should also embed artificial intelligence and
ports the previous study that there is a positive influ- big data to enhance the product recommendation to
ence between perceived usefulness and attitude toward improve the user experience [35]. The contribution of
e-commerce [18, 32, 33]. Similarly, the information the findings to the Technology Acceptance Model is
quality has an effect on the attitude toward e-commerce that the perceived usefulness, information quality, and
(H4). This finding is in line with the previous study. web quality affect the purchase intention during the
There is a positive influence between information qual- flash sale program.
ity and attitude toward e-commerce [23, 25, 26].
Moreover, web quality influences the attitude to-
ward e-commerce (H5). The previous study also finds IV. C ONCLUSION
a significant and positive influence between website The results show that the perceived usefulness, in-
quality and attitude toward e-commerce [25, 26]. Then, formation quality, and web quality affect the purchase
the attitude toward e-commerce also affects purchase intention of e-commerce mediated by attitude toward
intention (H6). This result is in accordance with the e-commerce. The flash sale program increases the
previous study [13, 18, 28]. purchase intention of e-commerce. Another interesting
Meanwhile, the perceived ease of use does not affect finding is that the perceived ease of use and trust do not
the attitude toward e-commerce (H1). This finding does affect the attitude toward e-commerce. The R-squared
not support the previous finding. References [32, 33] of attitude toward e-commerce and purchase intention
suggest a significant and positive influence between on e-commerce is 52.7% and 36.9%.
perceived ease of use and the attitude toward e- Despite the interesting implication on the moderat-
commerce. Similarly, the trust does not influence the ing effect of the flash sale program on the purchase
attitude toward e-commerce (H3). This result is differ- intention, the research has several limitations. First,
ent from the previous study that finds a significant and the respondents’ age is in the range of 21–30 years.
positive influence between trust and the attitude toward They are already familiar with e-commerce technology.
e-commerce [20–22]. The researchers suspect that the These respondents likely differ from older consumers.
group of young respondents have no difficulty in using Therefore, future researchers should replicate the pro-
and trusting the e-commerce. posed model using different age range. Second, the

70
Cite this article as: A. M. Sundjaja, G. V. Arisanto, and S. Fatimah, “The Determinant Factors of
E-Commerce Usage Behavior During Flash Sale Program”, CommIT (Communication & Information
Technology) Journal 14(2), 65–72, 2020.

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