Analysis on E-commerce Purchase Intention and Decision in Java and Sumatra

The rapid development of internet in Indonesia as a developing country has increased consumer's intention to use internet for shopping online using e-commerce websites. This study aims at better understanding the factors affecting e-commerce intention and decision of consumers in Java and Sumatera island as the most dominant e-commerce consumers in this country. This paper modified constructs in UTAUT2 model based on literature studies and interview results with e-commerce experts, companies and consumers which are suitable with Indonesian actual condition. A model of consumers purchase intention and decision in e-commerce was developed which incorporates factors such as convenience, perceived website quality, social influence, facilitating condition, hedonic motivation, economic reason/price, security, variety, and goods delivery. Surveys data from 340 ecommerce consumers in Java and Sumatera island used in this study and analysed using covariance based structural equational modelling (CB-SEM). The result from the survey shows that hedonic motivation, convenience, and economic reason are significant influence purchase intention while purchase intention and facilitating condition are significant influence the purchase decision for consumer in Java island. On the other hand, only social influence and facilitating condition which are significant influence purchase intention for consumer in Sumatera island. Overall, the results help to increase our understanding of purchase intention and decision using e-commerce websites based on consumers characteristic in Java and Sumatera as part of Indonesia. It also can be very useful to determine strategies to lead internet users to become online purchaser.