Consumer’s Buying Decision-Making Process in E-Commerce

^1,2,3,4 Department of Industrial Engineering, Faculty of Engineering, Diponegoro University, Semarang - Indonesia

^* Corresponding author: niabudipuspitasari@gmail.com

Abstract

The e-commerce growth and development in Indonesia is very rapid as well as the internet grows, but it is not well-balanced with the number of online buying transaction which is still relatively low. Even the today’s biggest B2C e-commerce people in Indonesia, Lazada, has continually decreased online purchasing. This research is aimed to describe factors affecting online buying decision- making in the e-commerce Lazada. The type of this research is confirmatory research. The variable used is following conceptual model i.e. Electronic Word of Mouth (EWOM), social identity, risk perception, trust, and purchase intention. The data were obtained through the questionnaire with Likert scale 1-5. There are 104 people researching sample who meets the criteria as Lazada consumer that, at least do a transaction in recent six months. Data analyzing were done using Structural Equation Modelling (SEM) method by Analysis of Moment Structures (AMOS) software. The results showed that the purchase intention has positively related to the purchase decision. Variable EWOM toward trust has positive relation, variable social identity and risk perception have no any significant relation to trust. Variable risk perception toward purchase intention has no significant relation, while the variable trust has significant positive relation to purchase intention.