The Influence of Marketing Online Factors towards the Purchase Decision and its Impact to Customer Satisfactions

Nova Retnowati (nova.retnowati@gmail.com) Mahsina (mahsina_se@hotmail.com)

University of Bhayangkara Surabaya, East Java, Indonesia

ABSTRACT

This research evaluates the effect of online marketing toward buying purchasing decision making and online consumer satisfaction. Goal of this research: (1) to analyze the influence marketing online consist of product information, communication and service toward purchasing decision making; (2) to analyze the influence marketing online consist of product information, communication and service toward online consumer satisfaction; and (3) to analyze the influence purchasing decision making toward online consumer satisfaction. The respondents being analyzed are 125 online consumer, they are 25 consumer of OLX; 25 consumer of Tokopedia; 25 consumer of Zalora, 25 consumer of Lazada and 25 consumer of Buka Lapak. The research method that used is path analysis, obtained through the software SPSS version 22.0.

The result show that: (a) marketing online consist of product information, communication and service have positive and significance influence toward purchasing decision; (b) marketing online consist of product information and service have positive and significance influence toward online consumer satisfaction, whereas communication has negative and significance influence toward online consumer satisfaction; (c) purchasing decision making has positiive and significance influence toward online consumer satisfaction.

Keyword: marketing online, product information, communication, service, purchasing decision making, online consumer satisfaction

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1. INTRODUCTIONResearch Background

Nowadays, internet has become an essential for us. Internet is the most important ways to communicate and to connect with others. We can gather any informations we needs from the internet as well as we doing the online shopping, online banking, online marketing, online affiliations, online socialize, online tutorials, online course, online advertising and others.

Internet shopping and also known as online shopping or else as e-commerce has increased recently. Shoppers are also going to the web for the most of their purchases. An annual survey of analytics conducted by firm comScore (scor, -0.84%) and UPS (ups, +0.03%) found that consumers are now buying more things online than in stores. As released from fortune.com that the survey now in 2016 has its fifth year, and polled by almost 5.000 consumers who make at least in two online purchases in three- month periods, has results that in the 2016 51% shoppers are now make their transactions from online purchases, compared to 48% in 2015, and 47% in 2014. Marketing online has make the impact for producer abd consumer with some benefit, those are 35% of cost efficiency, consumer services increases 32%, sales income increases to 18%, wider market place 13% and others 2% (yuliana, 2000). And, Online shopping has been shown to provide more satisfaction to modern consumers seeking convenience and speed (Yu and Wu, 2007). But, on the contrary, some consumer may still feel uncomfortable to do the online transactions.

The company business strategy perspective in winning the competition is gathered by using an effective global coomunication which is faster, cheaper and easier. Therefore, an interactive communication chains is needed to fascilitate the customer and to show the customer that company is make the focus attentions on their needs and also the company trying to provide the better information services which is suitable with each consumer needs. In general terms, the electronic commece give the opportunity to open the market, product and new services of the companies to their customers. E-commerce may integrate the business process between the activities on the outside and inside the companies.

2. LITERATURE REVIEWOnline Consumer

Online consumer generally could be described as consumer who is actively doing the purchasing using the internet media. Many social networking has comes out and developed such as Friendster, Facebook, MyScape, Twitter, Nexopia, Orkut, dol2day, wahtsapp, bbm messanger, instragram etc.

Online MarketingOnline marketing has also generally applied to those marketing activities which

conducted by using the media of internet technologies. Also, Rajarajan and Vetriveran (2016) said that online marketing refers to a set of powerful tools and methodologies used for promoting products and services through the Internet. At the initial stage the use of internet is refer to those static formal of HTML (Hypertext Markup Languange) which accessible to all the internet user. Therefore, the functions of the internet at the first time is only refer to an ‘online broschure’.

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Currently, online marketing is conducted to an interactive connection between customers and sellers via internet. There will be 2 (two) types of online commercials (online marketing), those are:

a. Online Commercial services is a service which offer the information and online marketing to their customer by a monthl cost charges such as American onlie, compuserver and prodigy.

b. Internet is global web of a wide computer networking and growth fast and it does not have management and centralized ownerships.

Online marketing will have some factors to be managed which are Product informations, communications and services.

1. Product InformationInternet has cause the data and information accessing is easier (wang, et al, 2005).

Online customer rarely or totally do not have a chance to touch and feel product and service before they make a purchases online decision, hence, online sellers normally provide more product information that customers can use when making a purchase (Lim and Dubinsky, 2004). Customers put the weight of point of review on the information that meets their information needs (Keency’s, 1999). And by using an interactive product information review, consumers can also have benefit from products’ reviews by other customers. They can read those reviews before they make a decision.

2. CommunicationA range of different way of business to communicate with customers is the use of

internet. Marketers may use this essentially usefull medium of internet to build relationship with the new customers or either to enhance the interaction with the existing customers (rajarajan & vetriveeran, 2016). Chang et al. (2009) stated in their research that online retailer could provide customers with diversified ways of communication channels to increase the efficiency in communicating with the customers. According to Izza and Cheng (2014) research also said that the various communication channels would provide customers with the flexibility and convenience to reach or contact the online retailer and hence influence their satisfaction

3. ServiceOne of the ways to make the business more successful is by present a good

customer service and service quality (Wilson, Zeithaml, Bitner and Gremler, 2008). Consumers sometimes have a problem or concern about the product, or they might want to change or return the product that they have bought. Thus, return and exchange services become more important at this stage (Liang and Lai, 2002)

Purchases DecisionAccording to kottler & keller (2009) Purchase decision phases consist of problem

recognition, information search, evaluation of alternatives and purchase behaviour. According to Yee and Yazdanifard (2014) has discovered that overall factors of website quality, commitment factor, customer service and purchase decision are key factors which influence consumers’ perceptions, satisfaction and loyalty of online shopping. And also,

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Johnston E. (2013) has described the chart phases of purchase decision as we have seen on figure 1.

Figure. 1 Phase of Purchase Decision (Johston E., 2013)

Customer SatisfactionThe concept of customer satisfaction occupies a central position in marketing

theory and practice (Jenyo and Soyoye, 2015). Most of online customers prove that customer satisfaction in an online business is a key point of factors to profitability (Guo, Ling and Liu, 2012). Based on to Khristianto, Kertahadi and Suyadi (2012) customer satisfaction is commonly viewed as a result of comparison between the consumption expectation and experience, and customer satisfaction is achieved when the final deliverable (i.e experience) meets or exceeds a customer expectation. According to Guo et al. (2012) have found of eight determinants of customer satisfaction which are website design, security, information quality, payment method, e-service quality, product quality, products variety and delivery services.

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3. RESEARCH MODELPopulation and Sample of Research

Population of research is consumers who are actively using online purchasing. And the sample of research is 125 online consumers which consist of 25 consumers of OLX.com, 25 consumers of Tokopedia.com, 25 consumers of Lazada.co.id, and 25 consumers of BukaLapak.com. Sampling technique use is an accidental sampling, whereas the customers are taken by coincidentally. Accidental sampling is an technique whereas the consumers is requested by questionnaires thru the internet (email, chat conversation, google drives) and the customers is generally suitable as a data sources (sugiyono, 2011:125).

Research ModelBased on the research background and the theory above, the research model is reflected in figure 1

Figure. 1 shows that online marketing activities consist of providing product/ service information (X1, Communication (X2), and Service (X3) which influences toward Purchase Decision (Y1) and Customer Satisfactions (Y2)

Research HypothesisH1: Product Information Informasi has a significant influence toward the purchase decision H2: Communication has a siesgnificant influence toward the Purchase Decision H3: Service has a significant influence toward the Purchase Decision H4: Product Information has a significant influence toward Customer SatisfactionH5: Communication has a significant influence toward Customer SatisfactionH6: Service has a significant influence toward Customer SatisfactionH7: Purchase Decision has a significant influence toward Customer Satisfaction

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Product Information (X1)

Communication (X2)

Services (X3)

Purchase Decision (Y1)

Customer Satisfaction (Y2)

Gambar 1. Model Penelitian

H11

H41

H21

H31

H51

H71

H61

4. RESULTS AND DISCUSSIONDescriptive Analysis

Descriptive analysis is used to understand the respondents answers description for the variables of research which is on marketing online that consist of product information, communication, service and also purchase decision and customer satisfactions. And, the results of the descriptive analysis are as seen on table 1.

Table 1. Descriptive Analysis ResultsVariables Mean Conclusion

Product Information (X1) 3,593 GoodCommunication (X2) 3,633 GoodService (X3) 3,594 GoodPurchase Decision (Y1) 3,866 HighCustomer Satisfaction (Y2) 4,040 High

Table 1. shows that mean of the respondents answers towards the variable of

research of product information (X1), communication (X2) and Service (X3) can be conclude as ‘Good’. It means that respondents in this case online consumer asses that online marketing that has provided by the company’s provider of online products and services are better. And, the assessment of of the purchase decision (Y1) and customer satisfaction (Y2) results are ‘High’. It means that the consumer has ‘high’ purchase decision to buy the products and services online.

Validity and Reliability AnalysisValidity is often defined as the extent to which an instrument measures what it

purports to measure (Kimberlain & Winstertain, 2008). If the validity is high, then the related test are pointed with its object and shows what the validated results should be.

Tabel 2. Validity Test ResultsVariables Items Correlations Sig. ReferenceProduct

Information(X1)

X1.1

X1.2

X1.3

0,4850,4160,716

0,0000,0000,000

ValidValidValid

Communication(X2)

X2.1

X2.2

X2.3

0,3950,4860,598

0,0000,0000,000

ValidValidValid

Services(X3)

X3.1

X3.2

X3.3

X3.4

0,5390,5500,5500,561

0,0000,0000,0000,000

ValidValidValidValid

Purchase Decision

(Y1)

Y1.1

Y1.2

Y1.3

Y1.4

0,5170,5880,6380,492

0,0000,0000,0000,000

ValidValidValidValid

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Consumer Satisfactions

(Y2)

Y2.1

Y2.2

Y2.3

Y2.4

Y2.5

0,5230,5000,5270,4920,440

0,0000,0000,0000,0000,000

ValidValidValidValidValid

Tabel 2 shows that the variables of marketing online which consist Product Information (X1), Communication (X2) Services (X3) and Purchase Decision (Y1) and Customer Satisfaction (Y2) has a significant correlation smaller that 0.05, it means that all the variables are VALID.

Table 3. Test Result of ReliabilityVariable Alpha Value Note

Product Information (X1) 0,637 ReliableCommunication (X2) 0,665 ReliableServices (X3) 0,679 ReliablePurchase Decision (Y1) 0,686 ReliableCustomer Satisfaction (Y2) 0,653 Reliable

Table 3 also shows that the Alpha Cronbach coefficient to shows the variables research is more than 0.6 then it can be concluded that the variables of research is reliable to continue the research.

Path Analysis ResultsPath analysis is to understand the Marketing Online of the products which consist

of Product Information, Communicaion and Services towards the Decision of Purchase and Customer Satisfaction as seen on table 4.

Tabel 4. Path Analysis ResultsFirst EquationConstanta (a) = 0,051 R = 0,965 R2 = 0,932

Variable Regression Coeeficients t-test Sig.

Product Information (X1)Communication (X2)Services (X3)

0,6210,2790,159

9,2354,1052,835

0,0000,0000,005

Second EquationConstanta (a) = 0,644 R = 0,940 R2 = 0,883Product Information (X1)Communication (X2)Services (X3)Purchase Decision (Y1)

0,051-0,2920,0881,024

0,460-3,2231,2199,006

0,6450,0020,2250,000

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Base on the table 4 the equation of regression are as follows::

Y1 = 0,051 + 0,621 X1 + 0,279 X2 + 0,159 X3 …………… (I)Below are the description of above equations First Equation: :

a. Constanta intercepts 0,051 is the intersection between the line of regresion with in-tercepts Y1 shows that mean of Purchase Decision, when the independent variables of of Product Information, Communication and Services equal to zero.

b. Regression Coefficient of X1 is equal to 0,621 with the significant shows 0,000 which means that the variable of Product Informations has a significant influence toward the Purchase Decision of Online Consumers. Then, if the variables of Prod-uct information are increase 1 unit, then it will increase to 0.621 with the assump-tion that others variables are constant.

c. Regression Coefficient of X1 is equal to 0,279 with the significant shows 0,000 which means that the variable of Communication has a significant influence to-ward the Purchase Decision of Online Consumers. Then, if the variables of Com-munication are increase 1 unit, then it will increase to 0.279 with the assumption that others variables are constant.

d. Regression Coefficient of X1 is equal to 0,159 with the significant shows 0,000 which means that the variable of Services has a significant influence toward the Purchase Decision of Online Consumers. Then, if the variables of Services are in-crease 1 unit, then it will increase to 0.159 with the assumption that others vari-ables are constant.

e. The value of R as above equation is 0,965. It means that it has relationships be-tween the variable of Purchase Decision (Y1) with the other 3 of variables of Prod-uct Information (X1), Communication (X2) and Services (X3) is Strong (almost +1).

f. The value of Determination Coeeficients (R2/ RSquare ) from above equation are 0,932. It means that 93,2% variation of the Purchase Decision that has performed by On-line Consumer can be clearly defined by others variables included. Others 6,8% are influence by others variables which is not the scope of research.

Y2 = 0,644 – 0,292 X2 + 1,024 Y1 …………… (II)

Below are the descriptions of Second equation of table 4 of research:a. Constanta intercepts intercepts 0,644 is the intersection between the line of

regresion with intercepts Y2 shows that mean of CustomerSatisfaction, when the independent variables of of Product Information, Communication, Services and Purchase Decision are equal to zero.

b. Regression Coefficient of X1 is equal to 0,051 with the significant shows 0,645 which means that the variable of Product Informations has no significant influence toward the Consumer Satisfaction.

c. Regression Coefficient of X2 is equal to -0,292 with the significant shows 0,002 which means that the variable of Communication has a significant influence to-ward the Consumer Satisfaction.

d. Regression Coefficient of X3 is equal to 0,088 with the significant shows 0,225 which means that the variable of Services has no significant influence toward the Consumer Satisfaction.

e. The value of R as above equation is 0,940. It means that it has relationships be-tween the variable of Customer Satisfaction (Y2) with the other 3 of variables of

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Product Information (X1), Communication (X2), Services (X3) and Purchase Deci-sion (Y1) is Strong (almost +1).

f. The value of Determination Coeeficients (R2/ RSquare ) from above equation are 0,883. It means that 88,3% variation of the Customer Satisfacton that has performed by Online Consumer can be clearly defined by others variables included. Others 11,7% are influence by others variables which is not the scope of research.

Hypothesis Test Resultsa. Based on the Path Analysis (Table 4) for X1 has a beta value 0,621 with level of

significant 0,000. This Sig. value is smaller than 0.05, then it can be concluded that Product Information has significant influences toward the Purchase Decision. Therefore, the first hypothesis can be accepted.

b. Based on the Path Analysis (Table 4) for X2 has a beta value 0,279 with level of significant 0,000. This Sig. value is smaller than 0.05, then it can be concluded that Communication has significant influences toward the Purchase Decision. Therefore, the second hypothesis can be accepted.

c. Based on the Path Analysis (Table 4) for X3 has a beta value 0,159 with level of significant 0,005. This Sig. value is smaller than 0.05, then it can be concluded that Services has significant influences toward the Purchase Decision. Therefore, the third hypothesis can be accepted.

d. Based on the Path Analysis (Table 4) for X1 has a beta value 0,051 with level of significant 0,645. This Sig. value is higher than 0.05, then it can be concluded that Product Information has no significant influences toward the Customer Satisfaction. Therefore, the fourth hypothesis can not be accepted.

e. Based on the Path Analysis (Table 4) for X2 has a beta value -0,292 with level of significant 0,002. This Sig. value is smaller than 0.05, then it can be concluded that Communication has significant influences toward the Customer Satisfaction. Therefore, the fifth hypothesis can be accepted.

f. Based on the Path Analysis (Table 4) for X3 has a beta value 0,088 with level of significant 0,225. This Sig. value is higher than 0.05, then it can be concluded that Services has no significant influences toward the Customer Satisfaction. Therefore, the sixth hypothesis can not be accepted.

g. Based on the Path Analysis (Table 4) for Y1 has a beta value 1,024 with level of significant 0,000. This Sig. value is smaller than 0.05, then it can be concluded that Purchase Decision has significant influences toward the Customer Satisfaction. Therefore, the seventh hypothesis can be accepted.

Direct Influencesand Indirect InfluencesTo analyse how strong is the relationship of influences between variables, whether

direct influences or indirect influences can be used by the coefficient of all line conected thru the coefficient of regression path between variables of analysis. Indirect influences may cause the strong or weakness of value of the intervening variable as shown on Table 5.

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Table 5. Direct & Inderect Influences

Variable Direct Influences

Indirect Influences(Thru Y1)

Product Information (X1) Purchase Decision (Y1)

0,621 (S) -

Communication (X2) Purchase Decision (Y1)

0,279 (S) -

Services (X3) Purchase Decision (Y1) 0,159 (S) -Product Information (X1) Customer Satisfaction (Y2)

0,051 (TS) 0,636 (S)

Communication (X2) Customer Satisfaction (Y2)

-0,292 (S) 0,286 (S)

Services (X3) Customer Satisfaction (Y2) 0,088 (TS) 0,163 (S)Purchase Decision (Y1) Kepuasan konsumen (Y2)

1,024 (S) -

The objective of the direct and indirect influences calculation is to understand the

functions or role of the intervening variables on research which is Purchase Decision (Y1), whether it can strong, or weakening the influences or has no role between the variables of Product Information, Communication and Services toward the Online Customer Purchase Decision. Belows are the results related::a. Product Information (X1) has a direct influence and significant toward the Purchase

Decision (Y1) for about 0.621.b. Communication (X2) has a direct influence toward the Purchase Decision (Y1) for

about 0.279.c. Services (X3) has a direct influence toward the Purchase Decision (Y1) for about

0.159.d. Product Information (X1) has a direct positive influence but not significant toward the

Customer Satisfaction (Y2) for about 0.051. Product Information (X1) has an indirect influence toward the Customer Satisfaction (Y2) thru Purchase Decision (Y1) for about 0.621 x 1,024 = 0.636. It means that Purchase Decision (Y1) as an intervening variables has pointed role of to enlarge and strengthening the influences of product information towards its Online Customer Satisfaction, from its not significantly influence toward significant influences.

e. Communication (X2) has a negative influence and significant toward the Customer Satisfaction (Y2) for about -0.292. Communication (X1) has an indirect influence toward the Customer Satisfaction (Y2) thru Purchase Decision (Y1) for about 0.292 x 1,024 = 0.286. It means that Purchase Decision (Y1) as an intervening variables has pointed role of to enlarge and strengthening the influences of product information towards its Online Customer Satisfaction, from its negative influence toward the positive influences.

f. Services (X3) has a direct positive influence but not significant toward the Customer Satisfaction (Y2) for about 0.088. Services (X3) has a indirect influence toward the Customer Satisfaction (Y2) thru Purchase Decision (Y1) for about 0.159 x 1,024 = 0.163. It means that Purchase Decision (Y1) as an intervening variables has pointed role of to enlarge and strengthening the influences of Services towards its Online

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Customer Satisfaction, from its not significantly influence toward significant influences.

g. Purchase Decision (Y1) has a direct positive influence and significant toward the Customer Satisfaction (Y2) for about 1,024.

5. CONCLUSION

Marketing Online Influences towards the Purchase DecisionThe research shows that marketing Online which consist of Product Information,

Communication and Services has Significant Influences toward the Purchase Decision performed by Online Customers. Where the influences are Positive and Significant, which means that the higher the value of customer toward the marketing online has applied by the companies that offering the product and services by online, it may cause better Purchase Decision.

This research also supported by Wandayana (2012) which has describe that the advertising of online marketing used can improve and increase sales volume and influence Purchase Decision.

Marketing Online can help the consumer to determine the purchase decision of product or services offer by online. It means that it may improve the better information provide by the companies to its customers. And, also it can improve the services. By this metter, it is important for companies as producer t provide an accurate online marketing, reliable and could interesting the consumer, so then, it may influence the purchase decision of online consumer.

Marketing Online Influences toward the Customer Satisfaction

This research shows that marketing online which consist the product information, services has not significantly influences the customer satisfaction of online customer. It means that the better value of customer assessment toward the product information and services given by the companies which provide the product/ services online, it has no nfluences toward the increase or decrease of the customer satisfaction. An opposite results for communication variables it has significantly influences towards the customer satisfaction of online customer, even it has an opposite direction for which beta amount shows -0.292 which means that a few communication performed by customer then it may increase customer satisfaction.

The availability of the source of the information may vary and wider. The development of information technology may influences the customer increase towards e-commerce. The result of this research has empirically supporting Kim research (2007) that describe the successful of information technology in contribute the satisfactions to the users individually and in group (organizations). Therefore, it may give positive contributions to the users and may influence the intencities of information technology used. It means that Customer satisfaction is influence by the informations.

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Purchase Decision Influences towards the Customer Satisfactions

Purchase decision has positive and significant influences towards the Online Customer Satisfaction, which means that the higher the purchase decisionto perform the online purchase, it may increase the customer satisfactions. Customer satisfactions is very important for the company which selling the products or services by online system, because it may increase the sales volume and also the customer loyalty. By this matter, products or services sales should be appointed to the objective in satisfy the customers. It can be conclude also that customer satisfaction is the key to keep the customer loyalties.

This research is also supported by Almaulidta dkk (2015) which describe that Purchase decision has significant influences toward the customer satisfaction of those customers of Electrical product which merck is SONY.

Purchase decision is an important variable which has a role to enlarge or strengthening the product informations and services towards the customer satisfactions, fro its role which it is not significant become significant. By this matter, if the marketing online variables can not increase the purchase decision of customers, then it may not influence to customer satisfactions. In order to achieve higher customer satisfactions it will need on online marketing programs which can trigger or increase the purchase decision towards its products or services offered by online.

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