DETERMININGFACTORSONPURCHASINGDECISION THROUGHE-COMMERCE: A STRUCTURAL EQUATIONS MODELLING FRAMEWORK
By: Okky Kartavianus and Togar Alam Napitupulu
ABSTRACT: Purpose The purpose of this study is to study the factors influencing customer buyingdecisionthrough Internet
shopping. Several factors such as information quality, firms reputation, perceived ease of payment, sites design,
benefitof online shopping, trust that influence customer decision to purchase from e-commerce sites were analyzed.
Design/methodology/approach Factors such as those mentioned above, which are commonly considered
influencing purhasing decision through online shopping in other countries were hypothesized to be true in the case of
indonesia. Arandomsample comprised of 171Indonesianpeoplewho have been buying goods/services through ecommerce sites at least once,were collectedvia online questionnaires. To test the hypothesis, the data were examined
usingStructural EquationsModeling(SEM) which is basically a combination of Confirmatory Factor Analysis
(CFA), andlinear regression.
Findings The results suggest that information quality, perceived ease of payment, benefits of online shopping, and
trust affect online purchase decision significantly. Close attention need to be placed on these factors to increase
online sales. The most significant influence comes from trust. Indonesian people still lack of trust toward online
commerce, so it is very important to gain customer trust to increase sales.
Practical implications E-commerces business owners are encouraged to develop sites that can meet the
expectation of potential customer, provides ease of payment system, provide detailed and actual information and
responsible for customer personal information and transaction records.
Originality/value This paper outlined the key factors influencing online shopping intention in Indonesia and
pioneered the building of an integrated research framework to understand how consumers make purchase decision
toward online shopping, a relatively new way of shopping in the country