Research Proposal
Electronic Commerce Models and Technologies
Kusworo Anindito
(5929496 / Ph.D-IT)
VINCENT MARY SCHOOL OF SCIENCE AND TECHNOLOGY
2017
The Influence of Technology, Social Interaction and Internal Factors on Impulse
Buying Behavior in Social Commerce in Indonesia
(Kusworo Anindito – ID: 5929496)
1. Introduction
Social commerce is an evolution of e-commerce where the activities and transactions
of e-commerce are conducted by utilizing social media technology (Lu et al, 2016). The social
media is also used by communities to interact, rate products, review other opinions, and share
experiences and recommendations on products and services (Shanmugam et al, 2016). The
interactive and social experience are used by consumers in making purchase decisions so that
both are essential to developing successful social commerce (Wang & Yu, 2017). The social
interactions also encourage consumers on these platforms to purchase impulsively (Xiang et
al., 2016).
Impulse buying is increasingly common in Indonesia. Nielsen stated that in 2011,
consumers in Indonesia who never bought goods outside the shopping list were only five
percent (Ramaun, 2011). Moreover, 21 percent of the consumers never made a shopping list at
all and 39 percent said that they always buy additional items. It is very interesting for producers
and sellers to know how to take advantages of the behavior of Indonesian consumers who tend
to purchase impulsively.
Currently, research on online impulse buying in Indonesia is very rare, likewise
research that explores the effect of social interaction on impulse buying behavior in social
commerce in Indonesia. Therefore, this study aims at how technology, social interaction and
internal factors influence the behavior of impulse buying in social commerce in Indonesia.
2. Literature Review
Impulse buying is a purchase that is done without a deep consideration of the reasons
why the product or service was purchased. There are two main components of impulse buying:
the process is unplanned and emotion is more dominant in making purchases than logical
reasoning (Verhagen & Dolen, 2011). Xiang et al. (2016) defines impulse buying as an
unplanned purchase, the result of a stimulus exposure, and decides on the spot. Impulse buying
occurs when a customer has an urge to buy a specific product without deeply considering the
motives and effects of the purchase (Huang, 2016). In social commerce, members' decision to
buy products are influenced by the community through online interaction (Shim & Altmann,
2016).
Intensive study of impulse buying, an unplanned purchase, was first conducted by
DuPont Company that examined purchases by customers in supermarkets in 1948-1965.
Impulse buying is categorized by Stern (1962) into four different types, namely pure, reminder,
suggestion, and planned. Pure impulse buying is a totally unplanned and without consideration.
A reminder impulse buying occurs when a customer sees an item and remembers if he or she
needs it. Suggested impulse buying occurs when a customer sees a product for the first time
and imagine a need for it, even though he or she has no knowledge of the item being purchased.
Planned impulse buying occurs if the customer makes a purchase based on special prices,
discounts, coupons, and the like.
Social commerce is a subset of e-commerce that involves customers in generating
content using social media through online communities, forums, reviews, recommendations,
and ratings. (Hajli, 2015; Hajli & Sims, 2015). It integrates social media in an e-commerce
platform, where social factors play an important role (Hajli & Sims, 2015). There are three
major attributes of social commerce: social technologies, community interactions and
commercial activities (Lu et al., 2016; Hajli, 2014). There are two ways to adopt social
commerce in business. First, expand the existing e-commerce website by using social media in
interaction with customers. Second, using the specific features for commercially provided by
social media (Hajli, 2014). Social commerce provides benefits to consumers because they can
share a product or service, provide opinions and recommendations. Companies or sellers also
benefit because they can develop strong relationships with their customers, promote, and know
the needs of products and services from customers.
Xiang et al (2016) conducted a study on impulse buying in social commerce based on
the Stimuli-Organism-Response (SOR) framework previously conducted by Parboteeah et al
(2009). They also added an important factor in social commerce: social relations, in this case,
parasocial relationship. The study showed that visual information and attraction features will
affect perceived usefulness and affective (perceived enjoyment) of the consumer, which in turn
will affect urge to buy impulsively. The study also produced evidence showing that parasocial
interaction affects perceived enjoyment and impulse buying tendencies that ultimately affect
urge to buy impulsively. Figure 1 shows the model proposed by Xiang et al (2016).
Figure 1. The model proposed by Xiang et al (2016)
Choi and Qu do a study to determine the effect of scarcity message in social commerce.
They develop a model of customer value-customer satisfaction-customer loyalty framework by
adding scarcity messages as determinants and urge to buy impulsively between customer value
and customer satisfaction. The study shows that scarcity messages will affect the customer
value (utilitarian value and hedonic value) which will subsequently affect urge to buy
impulsively, customer satisfaction, and finally customer loyalty. Figure 1 shows the model
proposed by Choi and Qu (2016).
Figure 2. The model proposed by Choi and Qu (2016)
Huang (2016) stated that research on impulse buying in social commerce was still
small, and even then very rarely pay attention to social factors. He made a study of impulse
buying and its influencing factors, namely flow and social capital. The study showed that peer
communication influenced by social capital affected urge to buy, which in turn affected
impulse buying. The study also showed that browsing activities influenced by content
attractiveness also affected the urge to buy that in turn affected impulse buying. He found that
SOR paradigm is suitable to be used in impulse buying and that social capital is more important
than content attractiveness. Figure 3 depicts the research model proposed by Huang.
Figure 3. The model proposed by Huang (2016)
A study conducted by Shim and Altmann (2016) was based on Theory of Plan Behavior
(TPB). They believed that external factors (such as marketing) and internal factors (such as
characteristics, as well as affective and cognitive factors) influenced the desire to buy
impulsively. The study showed that external factors influenced attitude and urge to buy
impulsively. The study also showed that attitude, subjective norm and perceived behavioral
controls influenced urge to buy impulsively. They concluded that price discounts and product
differentiation had a greater impact on the desire to buy impulsively than promotion. But large
discounts for luxury goods might not attract consumers to buy because of perceived behavioral
control factors. Figure 4 shows the research model proposed by Shim and Altmann.
Figure 4. The model proposed by Shim and Altmann (2016)
3. Research Model and Hypotheses
Someone who sees an interesting item often has a desire to buy the item without further
consideration. Furthermore, actual purchase tends to be done to fulfill this desires. (Huang,
2016). Therefore, some previous studies measured urge to buy impulsively rather than impulse
buying behavior (Chung et al., 2017; Huang, 2016; Xiang et al, 2016; Parboteeah et al., 2009)
like the relationship between intention and behavior in the technology acceptance model.
Content quality, information that accurate and visual appeal, is very important for users.
Better information for customers and visual appeal can increase the level of user believe that
he or she can perform activities in social commerce well and make he or she more enjoy in
doing the activities (Xiang et al, 2016; Huang, 2016). Thus, the following hypotheses are
proposed:
H1 : information fit-to-task has a positive effect on utilitarian value in social
commerce.
H2 : information fit-to-task has a positive effect on hedonic value in social
commerce.
H3 : visual appeal has a positive effect on utilitarian value in social commerce.
H4 : visual appeal has a positive effect on hedonic value in social commerce.
Scarcity messages are often used for promotions by emphasizing the existence of
special prices in limited time or quantities. Scarcity messages can affect customer value
(utilitarian and hedonic) and intention to buy impulsively (Choi & Qu, 2017). Hence, the
following hypotheses are proposed:
H5 : scarcity messages have a positive effect on utilitarian value in social
commerce.
H6 : scarcity messages have a positive effect on hedonic value in social commerce.
H7 : scarcity messages have a positive effect on urge to buy impulsively in social
commerce.
Integration of social media into e-commerce activities puts social relationships into an
important factor in social commerce (Xiang et al, 2016; Huang, 2016). Social capital refers to
resources in a social relationship that can provide economic value. There are two categories of
social capital: social bridging and social bonding. Individuals in social bridging get the value
with little emotional support in a relationship. Otherwise, social bonding involves emotionally
close relationship (Huang, 2016). Individuals in both social bridging and social bonding can
gain broader information and opportunities from the community. The social capital influences
the individuals to involve in peer communication. Thus following hypothesis is proposed:
H8 : social bridging has a positive effect on peer communication in social
commerce.
H9 : social bonding has a positive effect on peer communication in social
commerce.
Technological developments enable customers to search, view, compare, buy, and
deliver product more easily. Customers believe that he or she is able to do commerce activities
will increase the possibility of such customers to make impulse buying (Xiang et al, 2016;
Cheng & Wang, 2016; Rezaei et al, 2016; Choi & Qu, 2017). Customer who enjoys in using
social commerce will tend to explore a specific product that may increase urge to buy
impulsively (Xiang et al, 2016; Cheng & Wang, 2016; Rezaei et al, 2016; Zhou, 2016; Chung
et al, 2016; Choi & Qu, 2017). Confidence to be able to do all commerce activities with a
comfortable and safe will also increase the enjoyment in using social commerce (Xiang et al,
2016). Hence, the following hypotheses are proposed:
H10 : Utilitarian value in using social commerce has a positive effect on hedonic
value.
H11 : Utilitarian value in using social commerce has a positive effect on urge to buy
impulsively.
H12 : Hedonic value in using social commerce has a positive effect on the urge to
buy impulsively.
During communication in the community, consumers learn and share new information,
opinion, knowledge, and purchase behavior. This learning process can influence consumers’
desire to purchase impulsively (Huang, 2016). Thus, the following hypothesis is proposed:
H13 : peer communication has a positive effect to urge to buy impulsively in social
commerce.
Social pressure in the form of opinions of people around the customer to his or her
actions affects his or her desire to make purchases impulsively (Shim & Altmann, 2016). Thus,
the following hypothesis is proposed:
H14 : subjective norm has a positive effect to urge to buy impulsively in social
commerce.
The limitations that a customer has, such as time or money, also can influence his desire
to buy impulsively (Shim & Altmann, 2016). Hence, the following hypothesis is proposed:
H15 : perceived behavioral control has a positive effect to urge to buy impulsively
in social commerce.
Figure 5 depicts the research model of this study. There are seven exogenous variables
that affect other variables but not influenced by any variable (information fit-to-task, visual
appeal, scarcity messages, social bridging, social bonding, subjective norm, and perceived
behavioral control); three intervening variables (utilitarian value, hedonic value, and peer
communication); and one independent variables (urge to buy impulsively). It shows that urge
to buy impulsively is determined by utilitarian value, hedonic value, peer communication,
subjective norm, and perceived behavioral control. Information fit-to-task, visual appeal, and
scarcity messages affect utilitarian value and hedonic value. Peer communication is influenced
by social bridging and social bonding.
Utilitarian Value
Hedonic Value
Visual Appeal
Information Fit-to-Task
Urge to buy impulsively
H1
H4
H2
H3
H10
H12
Peer Communication
Social Bridging
Social Bonding
H13H8
H9
Scarcity Messages
H5
H6
H11
Subjective Norm
Perceived Behavioral
Control
H14
H15
H7
Figure 5. Proposed Research Model.
4. Research Methodology
Research procedure and methods planned to use in this study are as follow:
1. Development of a proposed theoretical model
Based on prior studies about impulse buying and social commerce, a theoretical model
is developed. Variables and their definition, and causal relationship among the variables
are defined.
2. Development of a questionnaire
A structured questionnaire is developed to measure the variables of the theoretical
model and to determine a personal profile of respondents. The questionnaire is prepared
in both English and Bahasa Indonesia languages.
3. Sampling procedure
The target population exceeds 100,000, therefore, to meet the 95 percent confidence
level with a precision of 5 percent, then the minimum size of the sample is 400
(http://www.webcitation.org/66kKEIC0b). The respondents are Indonesians who are at
least 17 years old and have experience using social commerce. The distribution and
collection of questionnaires are done online and offline. Google Form is used as a tool
to conduct online surveys. While the offline survey is conducted by distributing the
questionnaire to several cities in Indonesia.
4. Data preparation and preliminary descriptive analyses
There are steps to prepare and analyze the data of questionnaire responses:
a. Data Entry, Missing Values, and Outliers.
b. Construct validity.
c. Internal consistency reliability.
d. Preliminary descriptive analysis.
5. Analysis and development of the final model
Analysis and development of the final model are conducted using Structural Equation
Modeling (SEM) technique using SPSS and Amos software.
6. Interpretation of the results and conclusions
Finally, the results of the analyses are interpreted regarding the relationship of findings
and prior studies, any new findings, theoretical and practical implications, and
suggestions for future research. Limitations of the study are discussed.
5. Expected Contribution
This study is expected to contribute to research by providing a valid model that can be
used to learn about impulse buying that involves technology, community, external stimuli, and
internal factors from consumers. This study is also expected to contribute to practice by
providing strategic suggestions to companies or the sellers on how to make more customers
who make purchases impulsively to increase their profits. Instead, this study also provides
suggestion to consumers on how to avoid impulsive purchases that might be disadvantageous
them.
6. Future Research
The study will focus on social commerce with members who have the same position (peer), no
famous figures who have a very strong influence on his fans (parasocial). Future studies can
be done by comparing the magnitude of the effect of comments from well-known figures versus
close friends or family so that sellers can make a better strategy for their business.
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