Analysis of Student Behavior on using Online Store in Medan,

Indonesia

Ihsan Effendi

, Miftahuddin

, Mitra Musika

and Gempur Pranata

Department of Management, Faculty of Economics and Business, Medan Area University

Department of Agribusiness, Faculty of Agriculture, Medan Area University

Post Graduate Student, Master of Psychology, Medan Area University

Keywords: Consumer behavior, Online Store, Students, Technological Acceptance Model

Abstract: The rationale of this research is to form consumer behavior model in purchasing in online shop or store

among student in Medan Indonesia. This research conducted is to understand consumers’ intention to using

online applications; it also explores the intervening effect of intention on Consumer behavior. The purpose

of this study is to build an online purchase model for university students in Medan. The subject of his study

is student of Faculty of Social Science and Politics (FISIP), Muhammadiyah University of North Sumatra

(UMSU) who uses online application to buy in online store. This study was conducted using a sample of

216 respondents that uses online applications to buy products. Students will change from conventional

stores to online stores if the online store application is useful and easy to use.

1 INTRODUCTION

In recent years retailing industry in Indonesia has

grow very rapidly and have pushed expansion into

new channels of shops base on internet in an effort

to to create new customers and more consumers

embrace the internet it seems a natural expectation

and assumption that this channel will be the next

market to come. Technological advancement for

information flows make communication technology

more widely used. Technology continues to grow so

rapidly that distance and time seem to no longer be

obstacles in communicating.

One of the things that are currently a trend is

internet and electronic based activities. This

electronic-based activity is certainly very helpful for

human activities. The dimensions of space and time

are no longer a problem. In addition, the data

processing process is faster and more efficient. The

availability of various electronic items ranging from

cell phones, pagers, tablets and laptops have

becoming cheap accusable to the public.

The facilities obtained by students, especially in

passing internet access, have shown remarkable

progress. Every campus has access to wifi and a

wired network and almost every student now has a

mobile device or other gadget. Besides that cellular

prices or other electronic goods are not as expensive

as they used to be. This encourages students to have

these tools, both for communication and buying

products online.

Based on data from the Ministry of

Communication and Information of the Republic of

Indonesia (https://kominfo.go.id/), internet growth in

Indonesia is increasingly experiencing rapid growth.

In 2017, it was noted that internet penetration in

Indonesia reached 112,000,000 million active users

out of the total population of 262,000,000.

(https://bps.go.id/).

With the continuous increase in the number of

people towards the internet, the increase in the

number of consumers who will shop online will

occur. This also means that online transaction

business activities will shift traditional markets. The

growth of the internet is driven by the better use of

its facilities, access costs are getting cheaper and the

most important thing is the increasing amount of

information and entertainment.

Effendi, I., Miftahuddin, ., Musika, M. and Pranata, G.

Analysis of Student Behavior on using Online Store in Medan, Indonesia.

DOI: 10.5220/0009493002890294

In Proceedings of the 1st Unimed International Conference on Economics Education and Social Science (UNICEES 2018), pages 289-294

ISBN: 978-989-758-432-9

289

2 THEORETICAL FRAMEWORK

According to Kotler and Keller (2012) purchasing

decisions are influenced by basic psychology which

plays an important role in understanding how

consumers make their purchasing decisions. Every

person who wants to make a purchase will usually

first choose what is good and according to their

wishes before deciding what they will buy. They

will choose according to the character and inner

satisfaction that will be obtained later. With the

increasing popularity of the internet and e-

commerce, the problem of buying internet users has

become one of the most popular studies in the field

of consumer behavior. (Wang, 2018).

In other words, consumer behavior involves the

thoughts and feelings they experience and the

actions they take. Consumers need careful thinking

in making purchasing decisions by comparing

products that suit the needs and desires of these

consumers. In addition, consumers take purchasing

decisions based on the nature that is in them, one of

them is a feeling of wanting to be appreciated,

respected, and to meet their needs and desires.

The Technology Acceptance Model (TAM) is

one of the models built to analyze and understand

the factors that influence the acceptance of the use of

computer technology which was first introduced by

Fred Davis in 1986 (Brown, Venkatesh dan Goyal,

2011). TAM is a derivative of the Theory of

Reasoned Action (TRA), which is more formerly

developed by Fishbein and Ajzen in 1980.

With the increasing popularity of the internet and

e-commerce, the problem of buying internet users

has become one of the most popular studies in the

field of consumer behavior (Bertrand, Manon dan

Bouchard Stéphane, 2008). With the understanding

of relevant mechanisms in contributing in view the

influencing factors to influence consumers. Research

based on the Technology Acceptance Model (TAM)

and Information Adoption Model (IAM) is

representative, valuable and practical.

Bashir's (2012) study shows that online shopping

is increasingly popular among young people because

they feel more comfortable, save time and are

comfortable, when consumers make the mind to buy

electronic goods online which are influenced by

several factors. The main important factors

identified are time savings, best prices and ease of

use. Yu, Liu, and Yao, (2003) modified the

technology acceptance model to include wireless

systems under study by adding trust in wireless

system.

In developing countries like Indonesia,

confidence in the information system network is still

very low. Users are still afraid to use the system

because they are often disconnected suddenly and

the wifi network is still s low. This event can harm

users of online purchases and discourage buyers

from shopping online. Amoroso and Hunsinger

(2009) provides extensions to the original TAM by

including constructs such as trust and privacy.

Now the price of gadgets is very cheap. This low

price encourages people to buy the product (Di

Muro, and Murray, 2012). At present almost every

student has a cell phone for their needs. With the

cheapness of these phones, students can do any

activities including buying products online. The easy

and inexpensive way to get a gadget makes a

number of Muhammadiyah University of North

Sumatra (UMSU) students use smart phones. With

the emergence of online stores in Indonesia, most

students are interested in making online transactions

to meet their needs.

Hypothesis

With a background of the problems that have been

described, the research conducted has some

formulation of the problem:

1. Price of smart phone affect perceived usefulness

among students.

2. Perceived usefulness affect the intention to buy

online among students of.

3. Intention to buy online affects the actual buy

online among students.

Figure 1: Research Model

3 METHODS

Population is an area that consists of subjects who

have certain qualities and characteristics set by

researchers to be studied and then drawn conclusions

(Sugiyono, 2010). The population in this study was

526 students of Faculty of Social Sciences UMSU in

Medan city as many as 526 people. Sampling in this

study with probability sampling technique is random

sampling using the Slovin sampling method with the

total number of respondents in this study were 216

students.

The scale of consumer behavior used in this

study uses a scale of changes in consumer behavior

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based on the scale of Schiffman and Kanuk (2010).

The things that were done in this study i,e : conduct

an initial interview with several students about

things or problems that need to be raised for

research, collect information including those in the

form of data and theories that explain the sundries in

the issues raised. The review of the information then

produced a number of descriptions of the problems

related to the development of the study and prepares

a variable measurement scale.

Data analysis is done using path analysis. Path

analysis or path analysis is used to analyze patterns

of relationships between variables (Sani &

Maharani, 2013). This model aims to determine the

direct and indirect effects of a set of (exogenous)

variables on variables (endogenous). This analysis is

assisted with the help of LISREL 8.5 software.

Model fit test is to test the degree of fit between

the data model, validity and reliability, the

measurement model and the significance of the

structural model. Match test and value limit that

shows a good fit level for each Goodness Of Fit

(GOF)) can be summarized as follows::

1. p-value : p-value ≥ 0.05 consider good fit

2. IFI : Incremental Fit Index . IFI ≥ 0.90 is good

fit,

3. AGFI : Adjusted Goodness of Fit Index, AGFI

≥ 0.90 is good fit,

4. Std.Root Mean Square Residual (Str. RMR):

Average residuals between matrices (correlation

and covariance) observed and estimation results.

Standarized RMR ≤ 0.05 is good fit.

5. Root Mean Square Error of Approximation

(RMSEA): the average difference in degrees of

freedom expected to occur in a population and

not in a sample. RMSEA ≤ 0.08 is good fit,

while RMSEA <0.05 is close fit.

6. Comparative Fit Index (CFI): values range from

0-1, with a higher value is better. CFI ≥ 0.90 is

good fit, while 0.80 <CFI

7. Goodness of Fit Index (GFI): values ranging

from 0-1, with a higher value is better. GFI>

0.90 is good fit, while 0.80 <CFI

Furthermore, to see the level of consistency or

stability of a measuring instrument or construct. The

concept of reliability is in line with construct or

qualitative validity. Valid constructs are certainly

reliable, whereas reliable constructs are not

necessarily valid. And measuring devices are called

reliable when the instrument in measuring a

symptom at different times always shows the same

results.

Validity is the main criterion for scientific

research. Validity indicates whether the research

results can be accepted with certain criteria.

Questionnaire item validity is used to measure

accuracy and accuracy in an item in measuring what

is measured. Valid items are indicated by the

correlation between items against total item scores.

To determine the feasibility of an item is to test the

significance of correlation coefficient at a

significance level of 0.05 which means that an item

is considered valid if it has a significant correlation

to the total item score.

4 RESULT AND DISCUSSION

This research was conducted on students of the

Faculty of Social Sciences and Politics (FISIP)

Muhammadiyah University of North Sumatra

(UMSU) class of 2017, located at Jalan Kapten

Mucthar Basri No.3, Medan, Indonesia. The number

of samples comprise of 216 respondents. The

samples consist of 55% women and 45% men.

Respondents aged varied from 20-30 years old and

almost all of them do not have jobs and have fixed

income.

Reliability Test

Measuring the reliability is through the test model

fit. This evaluation is carried out on each

measurement construct or model (the relationship

between a latent variable and several variables

observed separately through evaluation of validity.

Tabel 1: Standard Loading Faktor (SLF) of

Variables

Construct Value t Conclusion

X11

X12

X13

9.91

6.51

7.38

Accepted

X21 4.87 Accepted

X22 5.60 Accepted

X31 8.87 Accepted

X32 10.90 Accepted

X41 5.99 Accepted

X42 8.04 Accepted

The results of measurement and evaluation of

reliability of the variables showing variables have

accepted conclusions. Thus variables can be used in

research here.

Analysis of Student Behavior on using Online Store in Medan, Indonesia

291

Validity

Evaluation of the validity of the measurement model

shows a standard factor load (Standard Loading

Factor, SLF). The measurement model has Accepted

validity because the Standard Loading Factor is

SLF> 0.5 (Igbaria,, Guimaraes, and Davis, , 1995).

Tabel 2: Variance Extracted, Reliability Model

Stability Alienation

Variables

Variance

Extracted

Validity

Price of smart

phone (X1) 0.64 Accepted

Perceived

Usefulness

(X2) 0.57 Accepted

Intention to buy

online (X3) 0.53 Accepted

The actual buy

online (X4) 0.58

Accepted

Analisis Data

Structural Equation Modeling (SEM) is used as a

confirmation technique for a model, the model must

be determined correctly based on the type of

analysis that is examined in the end the researcher

attempts to confirm the model. To build the correct

model using two kinds of variables, namely

exogenous and endogenous variables. Exogenous

variables can be used in a graphical version of the

model as the sending variable of the arrow, which

indicates as a predicting variable a variable that is an

endogenous variable. Endogenous variables are

recipients of arrows in the model.

Figure 2: Standard Solution Data Analysis

After the standard solution measurement model, the

next step is to analyze the structural model of the

research model, this analysis relates to the testing of

research hypotheses. The research hypothesis is

accepted if the absolute number t value greater than

1.96 with the coefficient sign is in accordance with

the proposed research hypothesis.

Figure 3: t-Value

Table 3: Test Results for the Significance of

Structural Model Research

Hypothesis.

Influence

Between

Latent

Variables

Value

Conclusion

Significance

Test Results

Hypothesis

Influence

Price of

smart

phone

(X2)

toward

Perceived

usefulness

(X1)

5.15 H

Rejected

Hypothesis

Influence

Perceived

ease of

use (X2)

toward

Intention

to switch

(X3)

3.30 H

Rejected

Hypothesis

Influence

Intention

to switch

(X3)

terhadap

Actual

system

use (X4)

4.42 H

Rejected

The compatibility model is compiled by the models

and the alternative models, where these alignment

measurements compare the models made by

researchers to be matched with other models. For

this reason, we can see the Structural Model of

Goodness of Fit Index (GOFI) as follows:

Tabel 4: Goodness Of Fit Index (GOFI)

GOFI

t-Value

Standard

Value for Good

Fit

Conclusion

p-value 0.00123 p-value ≥ 0.05 Good Fit

RMSEA 0.072 RMSEA ≤ 0.08 Good Fit

AGFI

0.91

AGFI≥ 0.90 Good Fit

CFI

0.92

CFI ≥ 0.90 Good Fit

IFI

0.93

IFI ≥ 0.90 Good Fit

RFI

0.80

RFI ≥ 0.90 Bad fit

Std.

RMR

0.064

Std. RMR ≤ 0.05 Bad fit

GFI

0.95

GFI ≥ 0.90 Good Fit

From the Goodness Of Fit Index (GOFI) table

above, the structural model shows that the model is

considered good because there is only two indicator

of Goodness Of Fit Index (GOFI), namely RFI and

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Std. RMR which are not good fit while p-value,

RMSEA, AGFI, CFI, IFI, RFI, and GFI shows the

good conclusion of the Goodness Of Fit Index

(GOFI).

At present, online store such as tokopedia, grab,

gojek, bukalapak, traveloka etc. is indeed a trend

among young people. The increase the number of

online stores, make it easier for consumers to choose

the preferred product. But all that will not be

realized if the student does not have the required

equipment. The prices of affordable gadgets are

important in realizing online purchases. The students

in this study did not have permanent employment or

had not worked so that they still relied on

remittances from parents. Likewise the purchase of

gadgets is also still very dependent on parents as

well.

According to students in this study, it has been a

long time to have a smart phone, but the use of smart

phones is limited to communication needs and using

social media such as Instagram, Facebook and

Instagram. After many online shops appear, then

they try to buy products online. First time ordering

online, they order food using go jek, and then start to

go to other online stores like tokopedia, bukalapak,

lazada and others.

Consumer ability to buy smart phone is one of

factor going online shopping. The usefulness of

online store applications is a very important thing

that must be considered. As the usefulness

application of online store increases, and the

consumers making decisions to become users of

online store also increases as well. Variable buying

intention online is also important in making online

buying decisions. The decision to buy online must

be based on strong intentions before actually buying

online using an application. From the results of the

study, this research model can be concluded that

gadget price, perceived usefulness are the most

important variable in the formation of intention to

buy at online store.

By using a gadget, it has an impact on student

behavior in shopping because it is useful and fast.

This has an impact on shopping patterns. Although

the number of online purchases is still not dominant,

it is estimated that the use of online applications will

continue to increase along with the increasing

perceived benefits.

5 CONCLUSION

The conclusion in this study as follow:

1. There is a significant influence of price of smart

phone on perceived usefulness in the change

from a conventional store to an online store

among students.

2. There is a significant influence of usefulness on

Intention to switch in the change from a

storefront to an online store among students.

3. There is a significant influence of Intention to

switch to the Actual system use from the store

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