THE ANALYSIS OF FACTORS INFLUENCING CUSTOMER PURCHASE INTENTION IN AN ONLINE RETAILER (THE CASE OF LAZADA INDONESIA)

Abstract

The development of the internet in Indonesia had led to the development of digital business companies in the country, and Lazada was considered as one of the big players in the market. Despite the various achievements by the company, it still struggled to compete in a very competitive industry. Hence, the aim of this study was to investigate the factors influencing the customer’s Purchase Intention in Lazada Indonesia. In this study, Purchase Intention served as the endogenous variable, Trust, Perceived Value, and Perceived Price were utilized as the mediating variables, while perceived technology, perceived reputation, perceived risk, and e-commerce knowledge are the exogenous variables. This research used electronic questionnaire in order to collect a total of 300 respondents that met the predetermined criteria set. Partial Least Square - Structural Equation Model 3 (SEM-PLS 3) being tools to analyze the data. The result of this research indicated that Perceived Technology, Perceived Reputation, Ecommerce Knowledge and Brand Image were found to be significantly influencing Purchase Intention through Trust as the mediating variable. Brand Image also had a significant influence toward Purchase Intention through Perceived Value as the mediating variable. Meanwhile, Perceived Risk was not found to be significantly influencing Purchase Intention through Trust. Brand Image had no significant influence toward Perceived Price as the mediating variable. Finally, this research set the path for future researchers to use other variables such as attitude, integrity, and benevolence that could predict customer’s Purchase Intention of an online retail company.