Does the Novelty, Advertising Value, Relevance, and Privacy Concern

Effect on the Online Impulse Buying Tendency?

Anisha Rizka Femilia and Mega Mayasari

Managerial Accounting Study Program, Politeknik Negeri Batam, Jl.Ahmad Yani, Batam, Indonesia

Keywords: Online impulse buying; novelty; advertising value; relevance; privacy concern; social media advertising

Abstract: Online impulse buying is a factor that can generate profit for online retailers and advertisers. Currently, buying

and selling activities do not only occur face-to-face, but can be done through an e-commerce which offers

many conveniences. Marketing methods are also increasingly developing through social media. This research

is a quantitative study which aims to test the effect of novelty factors, advertising value, relevance, and privacy

concern on the tendency to make impulsive online purchases. Respondents used were students majoring in

Business Management at Batam State Polytechnic with a sample of 108 students with a sampling technique

using purposive sampling. This study uses multiple linear regression analysis techniques. The results of this

study indicate that the relevance and privacy concern have a significant effect on the tendency to make online

impulse. Meanwhile, the novelty and advertising value variables did not have a significant effect on the online

impulse buying tendency.

1 INTRODUCTION

Along with the increasingly rapid development of the

era, marked by the development of increasingly

advanced technology. One form of technological

development is the digital economy. The digital

economy can be interpreted as a market consisting of

digital technology that facilitates trade in goods and

services through electronic commerce (OECD,

2013). E-commerce is a form of digital economy. we

can carry out buying and selling activities using the

internet network or online without having to set up a

shop (Kristiadi, 2017).

Indonesia was the country with the fastest e-

commerce growth out of 10 other major countries

with a growth of 78% in 2018 (Widowati, 2019).

There are more than 50% of existing purchases

originating from impulse buying which indicates the

importance of impulse buying (Amos, Holmes, &

Keneson, 2014). Other studies say that impulse

buying accounts for about 40% of all online spending

(Verhagen & Van Dolen, 2011).

Online shopping platforms are not the only factor

that can influence impulsive online purchases.

Another factor that can cause the tendency to make

impulsive online purchases is a marketing strategy

with advertising (Pratomo & Ermawati, 2019).

Advertising can be done through print media,

television, browsers, etc. The latest phenomenon in

marketing is the use of social media by sellers,

especially their partnerships as influencers on social

media to attract consumers' interest in goods and

services to drive traffic to their online stores (Ryu &

Park, 2020). Influencer advertising is a growing area

that offers fast and targeted access to an engaged

audience that is less expensive than traditional

advertising (Siqueira Jr., Pena, Horst, & Molina,

2019). The value of advertising affects potential

customers' intentions to buy the advertised product

(Martins, Costa, Oliviera, Goncalves, & Branco,

2019). Social trust can be seen from the results of

using social media platforms for shopping by users

who do not have a personal relationship with each

other (Alalwan, et al., 2019). This study will examine

the effect of novelty, advertising value, relevance,

and privacy concern on the tendency of impulsive

online purchases.

The idea of this research from (Dodoo & Wu,

2019). This research is different from previous

research. Previous research was conducted in the

United States, while this study was conducted in

Indonesia. Seeing the many online shopping

platforms in Indonesia with all the new features that

are interesting and easy at this time, will affect

impulsive online purchases (Kristanto, Suharto, &

444

Rizka Femilia, A. and Mayasari, M.

Does the Novelty, Advertising Value, Relevance, and Privacy Concern Effect on the Online Impulse Buying Tendency?.

DOI: 10.5220/0010935700003255

In Proceedings of the 3rd International Conference on Applied Economics and Social Science (ICAESS 2021), pages 444-450

ISBN: 978-989-758-605-7

Aly, 2020). Therefore, researchers are interested in

raising this topic for research. This study uses

multiple linear regression as an analytical tool in this

study, because the researcher follows the opinion of

(Jogiyanto, 2012) that the Likert scale is grouped into

interval data, therefore this study can use multiple

linear regression. Previous research used a sample of

students from a university in the United States, while

this study used a sample of students majoring in

Business Management at the Batam State

Polytechnic. This study will use data collection

techniques with surveys using questionnaires to

students majoring in Business Management at the

Batam State Polytechnic through online media. Based

on the explanation of the background above, the

research to be studied has the title The Effect of

Novelty, Advertising Value, Relevance, and Privacy

Concern of the Online Impulse Buying Tendency.

2 LITERATURE STUDY

2.1 Theoretical Review

2.2.1 Social Influence Theory

Social influence theory distinguishes between

different types and levels of social commitment:

compliance, identification, and internalization.

Theory (Kelman, 1958) explains how various

commitment mechanisms change attitudes toward

target behavior. For example, obedience occurs when

a person accepts influence because he or she expects

to get a positive reaction from another person or

group with a normative commitment. Identification

occurs when system users adopt behaviors to create

satisfying and self-determining relationships with

other people or groups with affective commitment.

Internalization occurs when system users adopt

behaviors due to content, which they find conform to

their own values with internal motivation.

2.1.2 Theory of Economic Growth

Growth theory is generally associated with models,

mechanisms, interpretations, and predictive

frameworks that describe the economic drivers of a

country's growth. The basis of growth theory is that

there are external technologies that are sustainable

and advanced. Advances are linked in the form of

new elements, new Markets, and new operations. In

e-commerce itself there is a trade called Business to

Consumer (B2C). The growth of a country's B2C e-

commerce is driven by external factors from

developed or leading countries (Ho, Kauffman, &

Liang, 2007).

2.1.3 Online Impulse Buying Tendency

Impulsive online buying tendencies are the extent to

which individuals tend to make unwanted, immediate

and non-reflective purchases (Weun, Jones, & Beatty,

1998). According to the theory (Beatty & Ferrell,

1998) sudden and direct purchases without any

intention before shopping either to buy certain

products or to perform certain buying tasks.

2.1.4 Novelty Categorization Theory

Novelty Categorization Theory or NCT proposes the

independence of a bond. NCT shows that in general,

people are curious and will approach new events

based on the motivation to know (Kagan, 1972). New

events can be interesting and arouse curiosity

(Berlyne, 1960). Novelty can also be threatening with

the possibility of carrying some risks (Bornstein,

1989). According to (Zajonc, 1998), there is a close

relationship between repeated exposure and positive

influence so that one does not conclude that novelty

is inherently a bad thing.

2.1.5 Social Media Advertising

According to (Joseph, 2011) there are 3 activities that

can be done in social media, namely: 1) Media

Maintenance: Taking care of social media by posting

regularly on social media such as Twitter, Instagram,

Facebook, and others. 2) Social Media Endorsement:

Looking for public figures who have a lot of time to

support a company's social media in order to increase

interest in the products sold by the company. 3) Social

Media Activation: Create unique activities to enhance

Word of Mouth (WoM). WoM will significantly

increase interest in the company's products. (Ducoffe,

1995) also said that entertainment has a positive

effect on advertising value, pleasure for the

advertisements displayed also has an effect on

customer ratings.

2.2 Empirical Review

According to (Dodoo & Wu, 2019) research, the

perceived personalization of social media advertising

positively affects the perception of novelty, perceived

relevance and advertising value. According to

research of (Sofi & Nika, 2017), intrinsic factors

influence impulse buying decisions. Consumers who

have high cognitive dissonance will make higher

impulsive purchases. According to the research of

Does the Novelty, Advertising Value, Relevance, and Privacy Concern Effect on the Online Impulse Buying Tendency?

445

(Evans, Phua, Lim, & Jun, 2017), the language of

disclosure in paid advertising positively affects ad

recognition, which then interacts with the memory of

the audience who saw the ad.

According to research (Sohn & Kim, 2020); 1)

81% of respondents have used social commerce

services; 2) 52% of respondents access social

commerce services whenever they want; 3) 56.9% of

respondents are satisfied using social commerce

services, this shows that the potential for repurchase

and overall social commerce growth is quite high.

The research of (Hermanda, Sumarwan, & Tinaprilla,

2019) has shown that social media influencers have a

significant positive effect on the brand image of local

cosmetic products and consumer self-concepts.

Another conclusion is that brand image has a

significant positive effect on consumer buying

interest, in contrast to the effect of self-concept. In

addition, the results of the study state that influencers

do not have a significant effect on consumer buying

interest, but produce a significant positive influence

indirectly through the brand image variable.

The research of (Sreejesh, Justin, Crolyn, & Jose,

2020) says that the clarity of the message conveyed

redirects the user's attention to the ad, and develops

better advertising effectiveness. According to

research (Jonathan & Mulyadi, 2019), security is a

key variable that affects a customer's purchase

decision. Privacy, security and trust simultaneously

have an influence on customer decisions in making

purchases. How online stores can provide

convenience to users affects customer decisions in

making purchases.

2.3 Hypothesis Development

2.3.1 Perceived Novelty

Impulse buying is also a response to novelty (Larose,

2001). This statement is supported by empirical

evidence from research (Yu & Bastin, 2010) which

finds that novelty is the most critical factor

influencing consumer impulse buying. Research

(Hausman, A., 2000) also found that there is a

positive relationship between novelty as an indicator

of impulsive buying tendencies. The results of

previous studies are also in accordance with the

theory (Kagan, 1972) which says that humans have a

tendency to know new things. Based on the

description above, the hypothesis is proposed:

H1: Novelty perceived by customers has a

positive effect on the online impulse buying

tendency.

2.3.2 Advertising Value

There are two important engines in advertising value,

namely: Informativeness and Irritation.

Informativeness refers to the extent to which

advertising can provide information to viewers

(Ducoffe, 1995). Irritation occurs when the

advertising message conveyed can disturb the viewer

(Ducoffe, 1995). Customer perceptions of advertising

value can also influence the tendency of impulsive

online purchases. Impulse buying can be triggered by

heuristic processes such as whether a product gives

rise to the urge to buy or not (Verplanken & Sato,

2011). Based on the description above, the hypothesis

is proposed:

H2: Advertising value has a positive effect on

the online impulse buying tendency.

2.3.3 Perceived Relevance

Social media ads created by studying the online

activity of customers and tailoring the advertising

content to the needs and interests of the customers

based on their browsing history. This results in

customers feeling that the ads displayed are

personalized and relevant to what customers think.

This statement is also in accordance with the results

of previous research (Dodoo & Wu, 2019), namely,

perceived relevance explains the impact of

personalization on the online impulse buying

tendency. Perceived relevance affects attitude

changes and affects the tendency of irregular

customer behavior (Dodoo & Wu, 2019). Based on

the description above, the hypothesis is proposed:

H3: Relevance perceived by customers has a

positive effect on the online impulse buying

tendency.

2.3.4 Privacy Concern

There are two types of routine internet activity,

namely: Consumption of online information and

opening e-mails from unknown sources (Chen,

Beaudoin, & Hong, 2017). The consumption of

information referred to refers to viewing news, health

information, product descriptions, and reading e-mail

and financial account information (Coiro & Dobler,

2007). The vulnerability of the occurrence of privacy

problems causes many users to be reluctant to buy

products online. Research (Dodoo & Wu, 2019) says

that privacy problems tend to arise from the use of

individual information, whereas impulse buying

consists of spontaneous purchases without careful

consideration, this makes it difficult to establish a

relationship between privacy concerns and the

ICAESS 2021 - The International Conference on Applied Economics and Social Science

446

tendency to buy impulsively online. Security is also a

key variable that can influence customer decisions in

making purchases (Jonathan & Mulyadi, 2019).

Based on the statement and the results of previous

research, the researcher argues that privacy concern

has no influence on the tendency of impulsive online

purchases. Based on the description above, the

hypothesis is proposed:

H4: Privacy concern has a negative effect on

the online impulse buying tendency.

Based on the description of the theoretical study,

literature review, and hypothesis development that

have been described previously, the research model

can be seen in Figure 1:

Figure 1: Research Model.

3 RESEARCH METHOD

This research is a type of quantitative research. The

source of data used in this research is primary data.

The instrument used in this research is a

questionnaire. The questionnaire consists of 2 parts,

the first part is the content and the second part is the

respondent's data. The research questionnaire used a

5-point Likert scale. The sample used in this study

amounted to 108 respondents. The sampling

technique used is non-probability sampling, with the

type of purposive sampling. Samples were taken in

accordance with the criteria used in this study. This

research was conducted at the Batam State

Polytechnic. The object of this research is the active

students of Batam State Polytechnic with an age

range of 18-24 years.

The data analysis technique used multiple

regression analysis using SPSS 25 software.

Descriptive statistical analysis will be used in this

study. The classical assumption test that used in this

study are multicollinearity and heteroscedasticity test.

Test the hypothesis using a partial significant test (t

test). The regression equation in this study is as

follows:

Y = α + b

+ b

+ ε

)

4 RESULTS

The population data used in this study are the active

students of Politeknik Negeri Batam. The criteria is

students with an age range of 18-24 years as many as

108 students or respondents.

4.1 Theoretical Review

Below is a descriptive statistical analysis table:

Table 1: Descriptive statistical analysis novelty.

Table 2: Descriptive statistical analysis, advertising value.

Does the Novelty, Advertising Value, Relevance, and Privacy Concern Effect on the Online Impulse Buying Tendency?

447

Table 3: Descriptive statistical analysis, relevance.

Table 4: Descriptive statistical analysis, privacy concern.

4.2 Multiple Regression Analysis

Previously, this study had tested the classical

assumptions test. Normality test, heteroscedasticity

test, and multicollinearity test. The results of these

tests are normal or free from problems. Testing

research hypotheses using multiple regression

analysis that is processed through the application of

statistics SPSS 25. The author has done testing with

SPSS that are attached on the following table:

Table 5: Multiple Regression Analysis.

Based on the above table, the regression equation

for this study is:

Y = 1.333 + 0,298KB + 0,235AV +

0,754RE + 0,26PC

)

Adjusted R2 value shows a value of 0.581. It

means that the dependent variable of online impulse

buying tendency is influenced by the independent

variables (Novelty, Advertising Value, Relevance,

and Privacy Concern) by 58% (0.581) and the rest is

explained by other factors outside the research model.

4.3 Data

Analysis

The following is a summary table of test results from

this study:

Table 6: Data Analysis.

4.3.1 Novelty Perceived by Customer Has a

Positive Effect on the Online Impulse

Buying Tendency

Based on the results of the hypothesis in table 6 shows

that H1 is not supported, that is, novelty does not have

a significant effect on the tendency to make impulsive

online purchases. This is because novelty does not

encourage people to make impulse purchases online.

The results of this study are in accordance with

previous research (Dodoo & Wu, 2019) which states

that perceived novelty cannot predict the impulse to

make impulse purchases. Novelty is enough to be an

attitude or change, but not enough to encourage

purchase. This is also supported by the theory

(Kagan, 1972) which states that humans have a

curiosity about new things

4.3.2 Advertising Value Has a Positive

Effect on the Online Impulse Buying

Tendency

Based on the results of hypothesis testing which can

be seen in table 6, it shows that H2 is not supported.

ICAESS 2021 - The International Conference on Applied Economics and Social Science

448

These results can be interpreted that advertising value

has no significant effect on the online impulse buying

tendency. The results of this test are in line with

previous research (Dodoo & Wu, 2019) which states

that advertising value cannot be ascertained as a

determinant of the online impulse buying tendency.

Customers need to process the ads they see in order

to provide an assessment. The evaluation made of the

advertisement inhibits the urge to make an impulsive

decision.

4.3.3 Relevance Perceived by Customer Has

a Positive Effect on the Online Impulse

Buying Tendency

The results of the hypothesis test generated in this

study indicate that H3 is supported, which means the

relevance or suitability of the perceived customer for

advertisements, products, and perceptions have a

significant positive effect on the online impulse

buying tendency. The test results for the third

hypothesis are in line with previous research (Dodoo

& Wu, 2019) which states that perceived relevance

has a positive influence on the online impulse buying

tendency. This result is also reinforced by the theory

(Kelman, 1958) which says that internalization occurs

when system users adopt behavior due to content,

which they find appropriate or relevant to their own

values

4.3.4 Privacy Concern Has a Negative Effect

on the Online Impulse Buying

Tendency

Based on the results of the hypothesis testing that has

been carried out, it shows that H4 is supported.

According to (Coiro & Dobler, 2007) this privacy

security problem can occur when performing

activities such as viewing news, health information,

product descriptions, and reading e-mail and financial

account information from unknown sources. The

existence of these problems makes customers to make

purchases online. The results of this study are

strengthened by previous research (Jonathan &

Mulyadi, 2019) which says that security is also a key

variable that can influence customer decisions in

making purchases. Customers will consider before

making a purchase, so that impulsive purchases do

not occur.

5 CONCLUSIONS

Based on the test results that have been described

previously, conclusions can be drawn, namely: (1)

Novelty does not significantly affect on the online

impulse buying tendency; (2) Advertising value has a

positive effect on the online impulse buying

tendency; (3) Relevance perceived by customers has

a positive effect on the online impulse buying

tendency; (4) Privacy concern has a negative effect on

the online impulse buying tendency.

This research still has limitations that need to be

addressed for the development of similar research in

the future. First, the sample used in this study was

only students majoring in Business Management at

the Batam State Polytechnic. Second, this study only

focuses on impulse buying. Third, the collection of

questionnaires is quite time consuming due to the

long-time feedback from respondents.

Based on the limitations of this study that have

been described previously, the following suggestions

can be considered for further research. First, further

research is expected to use a wider and more general

sample. Second, further research is expected to add

independent variables that are assumed to affect the

tendency to make impulsive online purchases.

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