Millennials' Purchase Intention Towards Online Travel Agent in Indonesia
DOI:
https://doi.org/10.9744/ijbs.1.1.23–34Keywords:
Ease of payment, Trust, Benefits of online, Information quality, Purchase IntentionAbstract
This study investigates the factors that impact Indonesian millennials when purchasing airline tickets through the Online Travel Agent. Millennials’ purchase intention is the focus of this study because millennial is half of Indonesia’s financially strong population and is tech-savvy. Thus this generation is very likely to shop online. Four factors proposed in this study, namely ease of payment, trust, benefits of online shopping, and information quality, were hypothesized to affect millennial's purchasing decision. Data is gathered from millennials who have bought airline tickets online. The questionnaire is spread online, and data from 94 valid respondents is collected. To test the hypotheses, the data is analyzed with Multiple Linear Regression using SPSS. The adjusted r-square result is 0.483, which means that 48.3% of the variability of the dependent variable is explained by the four independent variables. While the t-test result suggests that, out of the four factors previously found to affect purchase intention in general, only three affect millennials’ purchase intention, namely ease of payment, trust, and benefits of online shopping. Information quality is found to have an insignificant effect towards millennials’ purchase intention.
References
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Kwon, K.-N., & Jain, D. (2009). Multichannel Shopping Through Nontraditional Retail Formats: Variety-Seeking Behavior With Hedo-nic and Utilitarian Motivations. Journal of Marketing Channels, 149-168.
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Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision processes, 179-211.
Al-maghrabi, T., Dennis, C., & Halliday, S. V. (2011). Antecedents of continuance intentions towards e-shopping: the case of Saudi Arabia. Journal of Enterprise Information Management, 24(1), 85-111.
Anderson, K. C., Knight, D. K., Pookulangara, S., & Josiam, B. (2014). Influence of hedonic and utilitarian motivations on retailer loyalty and purchase intention: a Facebook perspective. Journal of Retailing and Consumer Service, 773-779.
Audi, R. (2008). Some dimensions of trust in business practices: from financial to product represen¬tation to licensure and voting. Journal of Busi¬ness Ethics, 97-102.
Babin, B. J., Darden, W. R., Griffin, & Mitch. (1994). Work and/or Fun: Measuring Hedonic and Utilitarian Shopping Value. JOURNAL OF CONSUMER RESEARCH, 20, 644-656.
Bhattacherjee, A. (2002). Individual trust in online firms: scale development and initial test. Journal Management Information Systems, 21-37.
Bhimani, A. (1996). Securing the commercial inter¬net. Communication of the ACM, 29-35.
Bigné, E., Hernández, B., Ruiz, C., & Andreu, L. (2010). How motivation, opportunity and ability can drive online airline ticket purchases. Journal of Air Transport Management, 16, 346-349.
Bradach, J. L., & Eccles, R. G. (1989). Price, Autho-rity, and Trust: from Ideal types to Plural Forms. Annual Review of Sociology, 97-118.
Bump, P. (2014, March 25). Retrieved from The Atlantic: https://www.theatlantic.com/national/ archive/2014/03/here-is-when-each-generation-begins-and-ends-according-to-facts/359589/
Cassell, J., & Bickmore, T. (2000). External manifes-tation of trustworthiness of the interface. Com-munication of the ACM, 50-59.
Chang, T.-Z., & Wildt, A. R. (1994). Price, Product Information, and Purchase Intention: An Empirical Study. Journal of the Academy of Marketing Science, 22(1), 16-27.
Chen, S., & Chang, T. (2003). A descriptive model of online shopping process: some empirical result. International Journal of Service Management, 556-569.
Chigne, J.-P. (2017, November 2). Retrieved from GenFKD: http://www.genfkd.org/millennials-tech-savvy-boomers-less-savvy-cybersecurity-risks
Delafrooz, N., Paim, L. H., & Khatibi, A. (2010). Understanding consumer’ s internet purchase intention in Malaysia. African Journal of Busi¬ness Management, 5(3), 2837-2846.
Dodds, W. B., Monroe, K. B., & Grewal, D. (1991). Effects of Price, Brand, and Store Information on Buyers' Product Evaluations. Journal of Marketing Research, 28(3), 307-319.
Euromonitor. (2017). Travel in Indonesia. London: Euromonitor.
Fang, Y., Qureshi, I., McCole, P., & Ramsey, E. (2007). The moderating role of perceived effectiveness of third party control on trust and repurchase intentions. Americas conference on information system, (pp. 1-18).
Fang, Y., Qureshi, I., McCole, P., & Ramsey, E. (2008). Relationship quality and online customer retention: the contingent role of e-commerce institutional mechanism effectiveness. Pre-ICIS WeB 2008 the workshop on e-business: design-ing e-business systems: markets, services and networks. Paris.
Forsythe, S., Liu, C., Shannon, D., & Gardner, L. C. (2006). Development of a Scale to Measure the Perceived Benefits and Risks of Online Shop-ping. Journal of Interactive Marketing, 20(2), 55-75.
Freischlad, N. (2017, September 7). Indonesia's long road to cashless payments. Retrieved from Techinasia: https://www.techinasia.com/indo-nesias-long-road-to-cashless-payments-pt1
Ganesh, J., Reynold, K., Luckett, M., & Pomirleanu, N. (2010). Online shopper motivation and e-store attributes: an examination of online patro¬nage behavior and shopper topologies. Journal of Retailing, 106-115.
Ghasemaghaei, M., & Hassanein, K. (2015). Online information quality and consumer satisfaction: The moderating roles of contextual factors – A meta-analysis. Information & Management, 52(8), 965-981.
Green, S. B. (1991). How Many Subjects Does It Take To Do A Regression Analysis. Multi¬variate Behavioral Research, 26(3), 499-510.
Harnas. (2017, March 22). Harnas. Retrieved from http://www.harnas.co/2017/03/21/kepercayaan-belanja-online-minim
Harris, L. C., & Goode, M. M. (2010). Online servicescapes, trust, and purchase intentions. Journal of Services Marketing, 24(3), 230-243.
Hasanov, J., & Khalid, H. (2015). The Impact of Website Quality on Online Purchase Intention of Organic Food in Malaysia: A WebQual Model Approach. Procedia Computer Science, 72, 382-389.
He, F., & Mykytyn, P. P. (2008). Decision Factors for the Adoption of an Online Payment System by Customers. In W.-C. Hu, Selected Readings on Electronic Commerce Technologies: Contempo-rary Applications (p. 352). IGI Global.
Heijden, H. v., Verhagen, T., & Creemers, M. (2003). Understanding online purchase intention: contri-bution from technology and trust perspective. European Joube Concludedrnal of Information Systems, 41-48.
Jarvenpaa, S. L., & Tractinsky, N. (1999). Consumer trust in an internet store: A cross cultural vali-dation. Journal of Computer-Mediated Commu-ni¬ca¬tion, 2.
Jevons, C., & Gabbott, M. (2000). Trust, brand equity and brand reality in internet business relation¬ship: an interdisciplinary approach. Journal of Marketing Management, 619-634.
Kartavianus, O., & Napitupulu, T. A. (2014). Deter-mining factors on purchasing decision through e-commerce: A structural equations modeling framework. Procedia Engineering, 463-473.
Kim, E., & Hong, T. (2010). Segmentating customers in online stores from factors that affect custo¬mers' intention to purchase. Journal of Research in Interactive Marketing, 376-390.
Koufaris, M. (2002). Applying the Technology Acceptance Model and Flow Theory to Online Consumer Behavior. Information Systems Research, 13(2), 205-223.
KPMG. (2017). Retail Payments in Indonesia. Jakarta: KPMG.
Kwon, K.-N., & Jain, D. (2009). Multichannel Shopping Through Nontraditional Retail Formats: Variety-Seeking Behavior With Hedo-nic and Utilitarian Motivations. Journal of Marketing Channels, 149-168.
Law, R., & Hom, H. (2005). Customers' perceptions on the importance of hotel web site dimensions and attributes. International Journal of Contem-porary Hospitality Management, 6(7), 493-503.
Liang, C.-J., & Chen, H.-J. (2009). A study of the impacts of website quality on customer relation-ship performance. Total Quality Management & Business Excellence, 971988.
Lind, ., Marchal, W., & Wathen, S. (2015). Statistical Techniques in Business & Economics. Dubuque: McGraw-Hill Education.
Marketing Charts. (2016, June 23). Millennials Rely on W-O-M More Than Other Adults When Researching Consumer Goods. Retrieved from Marketing Charts: https://www.marketingcharts. com/industries/retail-and-e-commerce-68531
Mayer, R., Davis, J., & Schoorman, F. (1995). An integrative model of organizational trust. Academic Management Review , 739-734.
McKinney, V., Yoon, K., & Zahedi, F. M. (2002, September). The Measurement of Web-Custo-mer Satisfaction: An Expectation and Discon-firmation Approach. Information Systems Rese-arch, 13(3), 296–315.
McKnight, D., Choudhury, V., & Kacmar, C. (2002). Developing and Validating Trust Measures for e-Commerce: An Integrative Topology. Infor-mation Systems Research, 334-359.
Miller, H. (1996). The Multiple Dimensions of Infor-mation Quality. Information Systems Manage-ment, 13(2), 79-82.
Money and Finance. (2018, April 2). Retrieved from NOW! Jakarta: http://nowjakarta.co.id/mone¬yed-millennials
Monsour, K., Kooli, K., & Utama, R. (2014). Online trust antecedents and their consequence on purchase intention: an integrative approach. Journal of Consumer Behaviour, 25-42.
Montague, D. A. (2010). Essentials of Online pay¬ment Security and Fraud Prevention. New Jersey: Wiley.
Nusair, K.., & Kandampully, J. (2008). The antece-dents of customer satisfaction with online travel services: a conceptual model. European Busi¬ness Review, 20(1), 4-19.
Pavlou, P. A. (2003). Consumer Acceptance of Electronic Commerce: Integrating Trust and Risk with the Technology Acceptance Model. International Journal of Electronic Commerce, 101-134.
Pujani, V. (2011). Use of e-commerce websites in developing countries. World Academy of Science, Engineering, and Technology, 790-795.
Rahadiana, R. (2018, April 12). Indonesia's newest unicorn now wants to take on the big boys. Retrieved from Bloomberg Technology: https://www.bloomberg.com/news/articles/2018-04-11/indonesia-s-newest-unicorn-now-wants-to-take-on-the-big-boys
Rahman, A. F. (2017, November 16). Detik.com. Retrieved from Detik.com: https://inet.detik. com/business/d-3730237/generasi-millenial-paling-doyan-belanja-online
Rianto, Nugroho, L. E., & Santosa, P. I. (2015). Analysis of E-Commerce User Behavior of Indonesian Students: A Preliminary Study of Adaptive E-Commerce. Computational Intelli-gence and Efficiency in Engineering Systems, 595.
Russel, J. (2017, August 17). Alibaba leads $1.1B investment in Indonesia-based e-commerce firm Tokopedia. Retrieved from Techcrunch: https:// techcrunch.com/2017/08/17/alibaba-tokopedia/
Safenson, J. (2017). The Future of Hospitality Industry: How OTA Can Help Growing Your Business. Indonesian Hotel General Manager Association (IHGMA) Seminar. ihgma.org.
Sam, M. F., & Tahir, M. N. (2009). Website Quality and Consumer Online Purchase Intention of Air Ticket. International Journal of Basic & Applied Science, 20-25.
Sarkar, A. (2011). Impact of Utilitarian and Hedonic Shopping Values on Individual’s Perceived Benefits and Risks in Online Shopping. Inter-national Management Review, 7(1), 58-65.
Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill-Building Approach. Chi-chester: Wiley.
Smith, G. (2015, September 30). Retrieved from Inc: https://www.inc.com/geoff-smith/millennials-becoming-more-loyal-in-era-of-consumer-choice.html
Song, J., & Zinkhan, G. (2003). Features of website design, perceptions of website quality, and patronage behavior. ACME 2003 Proceedings, (pp. 106-114). University of Georgia.
Statista. (2018, April 12). The number of digital buyers in Indonesia from 2016 to 2022 (in millions). Retrieved from Statista: https://www. statista.com/statistics/251635/number-of-digital-buyers-in-indonesia/
Symanzki, D. M., & Hise, R. T. (2000). e-Satis¬faction: An initial examination. Journal of Retailing, 309-322.
Weathers, D., & Makienko, I. (2006). Assessing the relationship between e-tail success and product and web site factors. Journal of Interactive Marketing, 41-54.
Wells, J. D., Valacich, J. S., & Hess, T. J. (2011). What Signals are You Sending? How Website Quality Influences Perception of Product Quality and Purchase Intention. MIS Quarterly, 373-396.
World Travel and Tourism Council. (2017). Travel & Tourism Economic Impact 2017 - Indonesia. London: WTTC.
Yan, C. (2016, February 24). Making the South East Asia Travel Connection. Retrieved from Tech in Asia: https://techcrunch.com/2016/02/23/online-travel-in-southeast-asia/
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