A FRIEND IN NEED? UNDERSTANDING CUSTOMER’S INTENTION TO USE PERSONAL PEER-TO-PEER LENDING IN JAKARTA

Abstract

The development of the internet and the ubiquity of smartphones in Indonesia had led to the development of Peer to Peer Lending industry in this country. Meanwhile Jakarta as the economic central of Indonesia, it also becomes the gathering place of peer to peer lending companies and customers, which makes the researcher decided to limit the research in Jakarta. The reason why there were many people who still using personal P2P Lending even though they were aware of the industry’s bad reputation became a mystery to the researcher. So, the aim of this research was to investigate the factors that influenced customer’s intention to use personal peer to peer lending in Jakarta. The influencing factors that are researched in this research are perceived usefulness; perceived ease of use; attitude toward behaviour; marketing mix; e-WOM; conventional media; subjective norm, while the dependent variable is intention to use personal peer to peer lending. This research used electronic questionnaire to collect the data, resulting in 396 respondents and used AMOS-Structural Equation Model to analyse the data. The result of this research showed that customers’ intention to use personal peer to peer lending is mainly influenced by marketing elements instead of usefulness and ease of use, which can be explained by the booming of ads environment.