FACTORS INFLUENCING PURCHASE DECISION OF ECOMMERCE CUSTOMERS MEDIATED BY PURCHASE INTENTION: A CASE IN GREATER JAKARTA

Abstract

Purpose – E-commerce is a fast-growing industry in Indonesia. But the ratio of purchase done offline is still too far greater than the purchase done online. Therefore, the purpose of this study is to identify the factors affecting the purchase decision of e-commerce customers in Greater Jakarta, mediated by the variable purchase intention. Design/methodology/Approach – A survey containing several questionnaires are spread as the instrument by employing the purposive snowball sampling method. The questionnaires are spread to 300 people in Greater Jakarta aged between 19 – 39 years old. The data collected were analyzed with structural equation model. Findings – This research finds that perceived risk doesn’t affect purchase inention while perceived benefit, trust, and brand image have a positive impact on purchase intention. Purchase intention has a positive impact on the purchase decision for ecommerce customers. Practical Implications – It is important to note that perceived benefit, trust, and brand image are strong drivers of purchase intention, which will affect the purchase decision. E-commerce companies may develop their strategy to increase customer purchase decision by managing those variables. Originality Value – The framework of this study is the first to be applied in the ecommerce industry in Greater Jakarta, targeting people aged 19 – 39 years old.