Research on World Agricultural Economy

Determinants of Purchasing Intention of Agricultural Products via E-commerce Platforms in Jakarta, Indonesia

Rahman Rifqy Aulia

Faculty of Plantation and Agrotechnology, Universiti Teknologi MARA, Malacca Branch Jasin Campus, 77300 Merlimau, Malacca, Malaysia

Abdul Rahman Saili

Faculty of Plantation and Agrotechnology, Universiti Teknologi MARA, Sarawak Branch Kota Samarahan Campus, 94300 Kota Samarahan, Sarawak, Malaysia

Fazleen Abdul Fatah

Faculty of Plantation and Agrotechnology, Universiti Teknologi MARA, Malacca Branch Jasin Campus, 77300 Merlimau, Malacca, Malaysia

Wan Noranida Wan Mohd Noor

Faculty of Plantation and Agrotechnology, Universiti Teknologi MARA, Malacca Branch Jasin Campus, 77300 Merlimau, Malacca, Malaysia

Nur Badriyah Kamarulzaman

Faculty of Plantation and Agrotechnology, Universiti Teknologi MARA, Malacca Branch Jasin Campus, 77300 Merlimau, Malacca, Malaysia

Ahmad Fadlur Rahman Bayuny

Faculty of Economics and Business, Universitas Airlangga, Surabaya, East Java 60286, Indonesia

Dwi Budi Santoso

Faculty of Economics and Business, Brawijaya University, Malang, East Java 65145, Indonesia

Farah Wulandari Pangestuty

Faculty of Economics and Business, Brawijaya University, Malang, East Java 65145, Indonesia

Ferry Prasetyia

Faculty of Economics and Business, Brawijaya University, Malang, East Java 65145, Indonesia

Abdul Ghofar

Faculty of Economics and Business, Brawijaya University, Malang, East Java 65145, Indonesia

DOI: https://doi.org/10.36956/rwae.v5i2.1037

Received: 31 January 2024; Received in revised form: 3 May 2024; Accepted: 6 May 2024; Published: 24 May 2024

---

Abstract

The emergence of the internet as a global phenomenon is swiftly reshaping consumers' shopping habits and the process of purchasing goods and services. Consumers now have access to a wide array of products and services, especially with the aid of e-commerce. Additionally, companies can analyse consumer behaviour and gain a deeper understanding of their habits with the assistance of e-commerce or social media. The objective of this research is to ascertain the factors that impact consumers' intention to buy agricultural products. In April 2022, we performed an online consumer survey among 200 internet shoppers in Jakarta, Indonesia. The data was then analyzed using the WarpPLS software and Structural Equation Modeling (SEM). Our research showed that among the respondents, women, with an average age of 20–25 accounted for nearly 60% of respondents who purchased agricultural produce online in Jakarta. Moreover, SEM-PLS method revealed that the following factors had highly significant effects on consumers' purchasing intention to buy agricultural products in Indonesia: consumer behavior, subjective norms, demographic variables, time savings, and convenience. In light of these findings, it offers valuable technical and practical implications for agribusiness management and policymakers.

Keywords: Purchasing intention; Covid-19; Agricultural products; Online shopping; Indonesia

---

References

[1] Yakup, D., Ibrahim, H.E., 2016. Travel from traditional marketing to digital marketing. Global Journal of Management and Business Research: E-Marketing. 6(E2), 35–40. DOI: https://doi.org/10.34257/GJMBREVOL22IS2PG35

[2] Teresa, Pineiro-O., Xabier, Martinez-R., 2016. Understanding digital marketing—basic and actions. Management and Industrial Engineering. 37–74. DOI: https://doi.org/10.1007/978-3-319-28281-7_2

[3] Wang, X., Zhang, J., 2020. Factors influencing chinese online shopping distributions of fresh agricultural products. Journal of Distribution Science. 18(10), 53–63. DOI: https://doi.org/10.15722/jds.18.10.202010.53

[4] AgTech innovation unlocks economic identities for smallholders farmers in Indonesia, GSMA [Internet] [cited 2021 Jun 25]. Available from: https://www.gsma.com/solutions-and-impact/connectivity-for-good/mobile-for-development/wp-content/uploads/2019/03/GSMA_mAgri_AgTech-Innovation-Unlocks-Economic-Identities-for-Smallholder-Farmers-in-Indonesia-1.pdf

[5] Rahmawati, N.A., Suroso, A.I., Ramadhan, A., 2018. Factors influencing the purchase intention in online organic fruit and vegetable stores. Journal Manajemen and Agribisnis. 15(3). DOI: https://doi.org/10.17358/jma.15.3.209

[6] Gu, S., Beata, Ś., Sevda, H., et al., 2021. Impact of the COVID-19 pandemic on online consumer purchasing behavior. Journal of Theoretical and Applied Electronic Commerce Research. 16(6), 2263–2281. DOI: https://doi.org/10.3390/jtaer16060125

[7] Shaw, N., Eschenbrenner, B., Baier, D., 2022. Online shopping continuance after COVID-19: a comparison of Canada, Germany and the United States. Journal of Retailing and Consumer Services. 69, 103100. DOI: https://doi.org/10.1016/j.jretconser.2022.103100

[8] Poon, W.C., Tung, S.E.H., 2022. The rise of online food delivery culture during the COVID-19 pandemic: An analysis of intention and its associated risk. European Journal of Management and Business Economics. 33(1), 54–73. DOI: https://doi.org/10.1108/EJMBE-04-2021-0128

[9] Alwan, S.Y., Hu, Y., Al Asbahi, A.A.M.H., et al., 2023. Sustainable and resilient e-commerce under COVID-19 pandemic: A hybrid grey decision-making approach. Environmental Science and Pollution Research. 30, 47328–47348. DOI: https://doi.org/10.1007/s11356-023-25456-0

[10] Pham, V.Ki., Thi T.HD.,Ha Le., T.H., et al., 2020. A study on the covid-19 awareness affecting the consumer perceived benefits of online shopping in Vietnam. Cogent Business and Management. 7(1). DOI: https://doi.org/10.1080/23311975.2020.1846882

[11] Miah, M.R., Hossain, A., Shikder, R., et al., 2022. Evaluating the impact of social media on online shopping behavior during COVID-19 pandemic: A Bangladeshi consumers’ perspectives. Heliyon. 8(9), E10600. DOI: https://doi.org/10.1016/j.heliyon.2022.e10600

[12] Kshetri, N., 2007. Barriers to e-commerce and competitive business models in developing countries: A case study. Electronic Commerce Research and Applications. 6 (4), 443-452.

[13] Bain & Company [Internet]. Can Southeast Asia Live Up To its e-Commerce Potential? [cited 2022 Aug 25]. Available from: https://media.bain.com/Images/BAIN_BRIEF_Can_Southeast_Asia_Live_Up_to_Ecommerce_potential.pdf

[14] Hanaysha, J.R., 2018. An examination of the factors affecting consumer’s purchase decision in the Malaysian retail market. PSU Research Review. 2(1), 7–23. DOI: https://doi.org/10.1108/PRR-08-2017-0034

[15] Cranfield, J.A.L., 2020. Framing consumer food demand responses in a viral pandemic. Canadian Journal of Agricultural Economics. 68(2), 151–156. DOI: https://doi.org/10.1111/cjag.12234

[16] Anton, S.D., Miller P.M., 2005. Do negative emotions predict alcohol consumption, saturated fat intake, and physical activity in older adults. Behavior Modification. 29(4), 677–688. DOI: https://doi.org/10.1177/0145445503261164

[17] Theodoridou, G., Tsakiridou, E., Kalogeras, N., et al., 2019. The impact of the economic crisis on Greek consumer behaviour towards food consumption. Journal of Food System Dynamics. 10(3), 298–314. DOI: https://doi.org/10.18461/ijfsd.v10i3.20

[18] Borsellino, V., Kaliji, S.A., Schimmenti, E., 2020. COVID-19 drives consumer behaviour and agro-food markets towards healthier and more sustainable patterns. Sustainability. 12(20), 8366. DOI: https://doi.org/10.3390/su12208366

[19] Pibulcharoensit, S., Inthawadee, S., Wu, Y., et al., 2021. Factors affecting purchase intention toward almond milk: A case study of Thai experienced and inexperienced consumers. AU-GSB e-Journal. 13(2), 110–119.

[20] Tarigan, Ruth, S., Jacqueline, 2018. Millenials’ purchase intention towards online travel agent in Indonesia. International Journal of Business Studies. 1(1), 23–24. DOI: https://doi.org/10.9744/ijbs.1.1.23–34

[21] Chan, S.W., Ahmad, M. F., Zaman, I., 2018. Privacy perceptions of online shopping behaviour amongst malaysian lazada online shoppers. AIP Conference Proceedings; 2018 April 10–12; Penang, Malaysia: AIP Publishing. p. 020036–1–020036–7. DOI: https://doi.org/10.1063/1.5055438

[22] Lim, Y.J., Osman, A., Salahuddin, S.N., et al., 2016. Factors influencing online shopping behavior: The mediating role of purchase intention. Procedia Economics and Finance. 35, 401–410. DOI: https://doi.org/10.1016/S2212-5671(16)00050-2

[23] Shaily, S.A., 2021. Data-privacy concerns and its influence on consumer purchasing intention in Bangladesh and India. International Journal of Marketing Studies. 13(1), 26–41. DOI: https://doi.org/10.5539/ijms.v13n1p26

[24] Roy, P., Datta, D., 2023. Consumer buying behaviour towards online and offline shopping: pre, during and post Covid-19 pandemic. International Journal of Professional Business Review. 8(5), e01843. DOI: https://doi.org/10.26668/businessreview/2023.v8i5.1843

[25] Lee, J., Lee, J., 2015. How purchase intention consummates purchase behaviour: the stochastic nature of product valuation in electronic commerce. Behaviour and Information Technology. 34, 1, 57–68. DOI: https://doi.org/10.1080/0144929X.2013.853837

[26] Khan, A., Khan, S. 2020. Purchasing grocery online in a nonmetro city: investigating the role of convenience, security and variety. Journal of Public Affairs. 22(2), e2497. DOI: https://doi.org/10.1002/pa.2497

[27] Bi, Y., Kim, I., 2020. Older travelers’ e-loyalty: the roles of service convenience and social presence in travel websites. Sustainability. 12(1), 410. DOI: https://doi.org/10.3390/su12010410

[28] Ramya, A.S., Rani, S.V.F., 2020. A Study on customer behaviour towards digital marketing. International Journal of Advanced Science and Technology. 2(8s), 2150–2153.

[29] Rashaduzzaman, Md., 2020. Influence of convenience, time-savings, price, and product variety on amazon prime members and non-prime shoppers’ online apparel purchase intention [PhD Thesis]. Nebraska: University of Nebraska. Available from: https://digitalcommons.unl.edu/textilesdiss/16

[30] Jati, K., Agnes, K., Mohd Khairol, et al., 2020. Factors influencing customers intention for online shopping. International Journal of Modern Trends in Business Research. 3(11), 31–41.

[31] Park, D. H., Lee, J., Han, I. 2007. The effect of on-line consumer reviews on consumer purchasing intention: The moderating role of involvement. International Journal of Electronic Commerce. 11(4), 125-148.

[32] Zhao, H. Yao, X. Liu, Z., Yang, Q., 2021. Impact of pricing and product information on consumer buying behavior with customer satisfaction in a mediating role. Frontiers in Psychology. 12, 720151. DOI: https://doi.org/10.3389/fpsyg.2021.720151

[33] Xu, D., 2022. The influence of product information display on purchase intention. Proceedings of the 2021 5th International Conference on E-Business and Internet (ICEBI’21). 2022 Jan 24; New York, NY: ICEBI. p. 29–32. DOI: https://doi.org/10.1145/3497701.3497707

[34] Ali, S., Noreen, M.I., Ahmad, S.F., 2015. Impact of product packaging on consumer perception and purchase intention. Journal of Marketing and Consumer Research. 10, 1–9.

[35] Lee, Wan-I., Cheng, S.Y., Shih, Y.T., 2017. Effects among product attributes, involvement, word-of-mouth, and purchase intention in online shopping. Asia Pacific Management Review. 22(4), 223–229. DOI: https://doi.org/10.1016/j.apmrv.2017.07.007

[36] Naz, T., 2019. Online shopping behaviour technology advancement: A great change in consumer behaviour. In Proceedings of 10th International Conference on Digital Strategies for Organizational Success.

[37] Park, C., Kim, Y., 2003. Identifying key factors affecting consumer purchase behavior in an online shopping context. International Journal of Retail and Distribution Management. 31(1), 16–29. DOI: https://doi.org/10.1108/09590550310457818

[38] Moshrefjavadi, M.H., Dolatabadi, H.R., Nourbakhsh, M., et al., 2012. An analysis of factors affecting on online shopping behavior of consumers. International Journal of Marketing Studies. 4(5), 81–98. DOI: http://dx.doi.org/10.5539/ijms.v4n5p81

[39] Doherty, N.F., Ellis-Chadwick, F., 2010. Internet retailing: the past, the present and the future. International Journal of Retail and Distribution Management. 38(11/12), 943–965. DOI: https://doi.org/10.1108/09590551011086000

[40] Dazmin, D., Ho, M.Y., 2019. The relationship between consumers’ price-saving orientation and time-saving orientation towards food delivery intermediaries (FDI) services: An Exploratory Study. GSJ, 7(2), 175–190.

[41] Azman, N.I. binti, Mashuri, N. A. binti A., Ibrahim, S.O.A.E. bin W., 2021. The online food delivery service and their impact on customer satisfaction among university students in Malaysia. International Journal of Academic Research in Business and Social Sciences. 11(6), 1665–1674. DOI: https://doi.org/10.6007/IJARBSS/v11-i6/10014

[42] Wu, S., 2003. The relationship between consumer characteristics and attitude toward online shopping. Marketing Intelligence and Planning. 21(1), 37–44. DOI: https://doi.org/10.1108/02634500310458135

[43] Ajzen, I., 1991. The theory of planned behavior. Organizational Behavior and Human Decision Processes. 1991, 50(2), 179–211. DOI: https://doi.org/10.1016/0749-5978(91)90020-T

[44] Dharmesti, M., Dharmesti, T.R.S., Kuhne, S., et al., 2019. Understanding online shopping behaviours and purchase intentions amongst millennials. Young Consumers. 22(1), 152–167. DOI: https://doi.org/10.1108/YC-12-2018-0922

[45] Gu, S., Wu, Y., 2019. Using the theory of planned behaviour to explain customers’ online purchase intention. World Scientific Research Journal. 5(9), 226–249. DOI: https://doi.org/10.6911/WSRJ.201909_5(9).0026

[46] Mao, Z., Lyu, J., 2017. Why travelers use Airbnb again? An integrative approach to understanding travelers’ repurchase intention. International Journal of Contemporary Hospitality Management. 29(9), 2464-2482.

[47] Laohapensang, O., 2009. Factors influencing internet shopping behaviour: a survey of consumers in Thailand. Journal of Fashion Marketing and Management. 13(4), 501–513. DOI: https://doi.org/10.1108/13612020910991367

[48] Koch, J., Frommeyer, B., Schewe, G., 2020. Online shopping motives during the covid-19 pandemic-lessons from the crisis. Sustainability. 12(24), 10247. DOI: https://doi.org/10.3390/su122410247

[49] Dwilaksono, Y., Handayani, S. D., Fauziyah, F., 2018. Effect of usefulness, ease of use, risk, product involvement, and subjective norms to a person’s attitudes and intentions of using online shopping among students in Yogyakarta. International Journal of Business Quantitative Economics and Applied Management Research. 4(8), 1-9.

[50] Zhao, X., Deng, S., Zhou, Y., 2017. The impact of reference effects on online purchase intention of agricultural products: The moderating role of consumers’ food safety consciousness. Internet Research. 27(2), 233–255. DOI: https://doi.org/10.1108/IntR-03-2016-0082

[51] Daroch, B., Nagrath, G., Gupta, A., 2020. A study on factors limiting online shopping behaviour of consumers. Rajagiri Management Journal. 15(1), 39–52. DOI: https://doi.org/10.1108/RAMJ-07-2020-0038

[52] Makkonen, M., Frank, L., Kemppainen, T., 2021. The effects of consumer demographics and payment method preference on product return frequency and reasons in online shopping. 34th Bled E-Conference: Digital Support from Crisis to Progressive Change. 567–580. DOI: https://doi.org/10.18690/978-961-286-385-9.2

[53] Wang, O., Somogyi, S., 2018. Consumer adoption of online food shopping in China. British Food Journal. 120(12), 2868–2884. DOI: https://doi.org/10.1108/BFJ-03-2018-0139

[54] Sekaran, U., Bougie, R., 2016. Research methods for business: a skill building approach. John Wiley & Sons: Hoboken, New Jersey, USA.

[55] Statista, 2020 [Internet]. Distribution of E-Commerce Users in Indonesia in 2019, by City. Available at: https://www.statista.com/statistics/1115215/indonesia-ecommerce-users-by-city/ (accessed on 24th June 2021).

[56] Efthymiou, D., Antoniou, C., 2012. Use of social media for transport data collection. Procedia Social and Behavioral Sciences. 48, 775–785. DOI: https://doi.org/10.1016/j.sbspro.2012.06.1055

[57] Sarstedt, M., Mooi, E., 2014. A concise guide to market research: The process, data, and methods using ibm spss statistics, second edition. Springer: Berlin. DOI: https://doi.org/10.1007/978-3-642-12541-6

[58] Neuman, W.L., 2014. Social research methods: Qualitative and quantitative approaches. Seventh Edition. Allyn and Bacon: London, UK. DOI: https://doi.org/10.2307/3211488

[59] Brislin, R.W., 1970. Back translation for cross cultural research. Journal of Cross-Cultural Psychology. 1(3), 185–216. DOI: https://doi.org/10.1177/135910457000100301

[60] Kock, N., 2010. Using warppls in e-collaboration studies: an overview of five main analysis steps. International Journal of e-Collaboration. 6(4), 1–11. DOI: https://doi.org/10.4018/jec.2010100101

[61] Chai, L.T., Yat, D.N., 2020. Online food delivery services: Making food delivery the new normal. Journal of Marketing Advances and Practices. 1(1), 62–77.

[62] Ganapathi, R., 2015. A Study on factors affecting online shopping behavior of consumers in Chennai. Journal of Management Research and Analysis. 2(2), 123–126.

[63] M Kim, S.S. 2020. Purchase Intention in the Online Open Market: Do Concerns for E-Commerce Really Matter? Sustainability. 12(3), 773.

[64] Hajli, M.N., 2014. A study of the impact of social media on consumers. International Journal of Market Research. 56(3), 387–404. DOI: https://doi.org/10.2501/IJMR-2014-025

[65] Wardhani, N.W.S., Nugroho, W.H., Fernandes, A.A.R., et al., 2020. Structural Equation Modeling (SEM) analysis with warppls approach based on Theory of Planned Behavior (TPB). Mathematics and Statistics. 8(3), 311–322. DOI: https://doi.org/10.13189/ms.2020.080310

[66] Ghozali, I., Latan, H., 2014. Partial least square concepts, methods and applications using the WarpPLS 5.0 program. Universitas Diponegoro, Semarang.

[67] Fernandes, A. A. R., 2017. Metode statistika multivariat pemodelan persamaan struktural (sem) pendekatan warppls. Universitas Brawijaya Press.

[68] Xie, C, Jin, J., Guo X., 2022. Impact of the critical factors of customer experience on well-being: Joy and customer satisfaction as mediators. Frontiers in Psychology. 13, 955130. DOI: https://doi.org/10.3389/fpsyg.2022.955130

[69] Vasic, N., Kilibarda, M., Kaurin, T., 2019. The influence of online shopping determinants on customer satisfaction in the Serbian market. Journal of Theoretical and Applied Electronic Commerce Research. 14(2), 70–89. DOI: https://doi.org/10.4067/S0718-18762019000200107

[70] Fishbein, M., Ajzen, I., 1975. Beliej Attitude, Intention, and Behavior: An Introduction to Theory and Research. Reading. MA: Addison-Wesley.

[71] Wu, I-L, Chiu, M-L, Chen, K-W., 2020. Defining the determinants of online impulse buying through a shopping process of integrating perceived risk, expectation-confirmation model, and flow theory issues. International Journal of Information Management. 52(2), 102099. DOI: https://doi.org/10.1016/j.ijinfomgt.2020.102099

[72] Ćirić, M. R., Ilić, D. S., Ignjatijević, S. D., & Brkanlić, S. D. (2020). Consumer behaviour in online shopping organic food during the Covid-19 pandemic in Serbia. Food and Feed Research. 47(2), 149-158.

[73] Hoa, P.T.T., Ngan, N.L.K., Nga, N.L.P., et al., 2022. The impact of belief, attitude and subjective norm on OCOP products purchase intention of Vietnamese consumers. International Journal of Multidisciplinary Research and Analysis. 5(2), 556–563. DOI: https://doi.org/10.47191/ijmra/v5-i2-44

[74] Wang, O., Na, H., 2020. Panic buying? Food hoarding during the pandemic period with city lockdown. Journal of Integrative Agriculture. 19(12), 2916–2925. DOI: https://doi.org/10.1016/S2095-3119(20)63448-7