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CHAPTER I
INTRODUCTION
A. Research Background
Since 90s the development pattern of marketing in Indonesia experienced significant changes, especially in the big city. The original marketing pattern is
characterized by a pattern of conventional face-to-face interaction and directly between buyer and seller, accompanied by bargaining activities, gradually turns
into a pattern of self-service marketing. This period was marked by the emergence of the market
– a grocery store and supermarket, on this pattern, the intensity of the interaction between buyers and seller diminishing compared to conventional
patterns, price and quantity of goods on a permanent basis and not significantly possible the existence of bargaining between the buyer and the seller.
In early 2000s, increasingly develop of marketing pattern, after the emergence of patterns of utilizing electronic media marketing in the execution of
transactions, such as online shopping. Typical of the pattern of marketing this is no physical meetings directly between the seller and the buyer, as well as the
pattern of provision of products, all made through electronics, both between companies with the company, company with distributors, as well as the company
with the consumer. The role of the service delivery, technology communications play an important role. Marketing pattern looks complicated but it has advantages
compared to other marketing pattern.
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S chijns 2003 describe that “online environments it is more complicated
to establish a social connection between firms and customers due to the lack of physical environment, social distance between companies and customers”
Another way of marketing as well as excess pattern described by Burke et al 2000 on cang and wang 2009 : 333
, “online exhibits different characteristics from traditional shopping, online shopping can offer greater product selection,
accessibility without restriction of time and space”. Nevertheless, the pattern of marketing also has disadvantages such as
being delivered by Srinivasanet 2002 that : consumer can compare competing products and services with minimal expenditure of personal time or effort, which
results in competitive business markets and lower brand loyalty. This is possible because consumers can easily switch to other product
options in a very short time without having to deal with the seller. Husin 2011 revealed that online shopping has actually been introduced
since 1979 in the United Kingdom, by Michael Aldrich of Redifon computers, long before there was the internet. Aldrich attributed the color TV with computer
and telephone so that it can conduct transactions via a telephone sale, in accordance with item displayed on the TV screen, but with the internet then
communication with the telephone starting replaceable. Online shopping itself as a form of communication that did not require
face-to-face between buyers and sellers, so buyers and sellers can reside in a place that is far apart, but can conduct transactions, and buyers can choose their own
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desired product through the company website accessed through seller social media or blogs.
In Indonesia, reports of buying and selling online its increasing trend. Source of information from the CEO of PT Indonesia Payment Solution said that,
total financial online transactions in 2010 and USD recorded 3.4 billion and year 2012 total financial online transactions are estimated reached USD 4.1 billion.
This number will continue to increase along with the use of internet in Indonesia still continuing.
As the largest category on types of products in online transactions is gadgets and stuff, such as electronics, tablet PCs, smartphones, and computer
spare parts. In second category are hobby goods or collectors, such as sports tools, games, and accessories as well as medicines and cosmetics.
On the pattern of this kind of marketing the trust level of the product, and manufacturers, it played an important role, in other words the Trust is
crucial in marketing like this. Hasan Afzal 2010 said that “Consumer trust is a
variable that generates consumers‟ commitment.” Particularly, high involvement situation in which effect is strong in assessment as a whole contentment.
Change of marketing patterns is currently developing in the direction of deeper relations between the growing companies with buyers through its products.
Rust et al. 2009: 2 describe that “yet never before have companies had such
powerful technologies for interacting directly with customers, collecting and mining information about them, and tailoring their offering accordingly”.
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Currently, internet users are increasing rapidly, not only in the world, but also in Indonesia. The population of Indonesia in 2012 was 248 million
inhabitants, of whom 110 million is estimated as middle-class class of internet users in Indonesia. In addition, there are a total of 23 of internet users or as
many as 50 million people. As a percentage of this amount least come within South-East Asia, where the highest Singapore, 67 of the total population.
Despite having the lowest number of percentage as internet users in Southeast Asia, but Indonesia is considered a potential market of internet users,
given the growth in GDP which reached 6.4 from 2011 to 2012, and credit card users who have reached the 30 of the total population in 2012. In addition to
Indonesias seventh-largest facebook users, Indonesia as 4th larger users in the world with 43 million, and also the 3rd twitter user in the world with a total of
11 active twitter user, 5 million inhabitants. From 55 million internet users in indonesia, 71 of the internet user
browsing internet via laptops or desktops, 24 through smartphones and the rest use other media. In addition to use PC, most Indonesian people access the internet
home, which amounted to 63, and the remaining 25 from office facilities, where the rest are using the internet at cafe, cybercafe or school. The results of the
survey found, that Indonesian spends for more than 30 minutes per week for online. By which time, Indonesia spending time for online is above average time
on line than Malaysia and the Philippines but far under the average of the citizens of Singapore and Vietnam. On line time, mostly used for searching via the search
engines, then almost the same portion spent on social network and e-mail, the rest
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utilize of internet is to search activity news, download music and games, on line transactions, education and careers, traveling, and only a few are utilizing the
internet for blogs and games on line. Based on survey results from AC Nielsen 2008 has more than 635
million people in the world ever make deals shopping online. The growth of shopping on line in whole over the world has increased 50 since the year 2001
to the 2008. In Indonesia, growth of transaction on line also increased 50 from year 2009 to 2010 AC Nielsen Indonesia, 2010. Based on the data, 40 of
internet users utilize the internet for online transactions, where 37 of them shopping for fashion goods, followed by booking on line for travel including
hotels and planes followed by electronic items and books. Most of the shoppers on line, shopping via facebook and kaskus, while the rest are shopping through
websites that offer goods for online like a nice store, amazon, e-bay, souvenirs, and pediabhineka, tokobagus, kaskus, etc.
Many payment methods are chosen by consumers in Indonesia by Bank transfer, followed by credit card and the rest option for Cash on Delivery. Where
the average consumer spent Rp.500,000 for once shopping online. Handy Irawan in Marketing Magazine March 2012 issued, reveal a
phenomenon in shopping online that consumers in Indonesia have uniqueness attitude, behavior and decision in making process in evaluating and purchasing
products. For example, in the field of culture, Indonesia has their own culture of people who are clearly much different compared to American culture. Indonesia
has a Community norm and non verbal communication. For example, to interpret
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the meaning of Indonesia Society of different colors, like green color more favorite. Our market has many products that are intended focus to the Muslims.
The influence of the other is unique in terms of the reference group. This is the part that really cant be compared to the American public. In this context, the
opinion as a great leader influencer and the most important is Indonesian society as a group that has a strong level of socializing.
The impact of this powerful community level is great for marketing strategy, especially in the context of market penetration. One strategy that
important is the communication strategy. The communication process that uses word of mouth and raises the level of trust to be effective that assist the market
penetration of a brand. Indrawan 2012 supported research results of Husni 2011 added, the
various external factors above also affects the internal factors such as the process of the formation of perception, memory, motivation, attitude, lifestyle and
behavioral processes eventually purchase. As an example, consumers of Indonesia are likely has short-term memory more dominant. This is a combination between
educational level and social class average is still low, the culture and norms, as well as the influence of the existing systems in the community. It gives very big
implications on strategy positioning of a product. Almost the same as the first character, then Indonesias consumer also tend to not only have a plan, it makes
the consumer spending patterns of Indonesia is relatively disorganized, the purchase process through impulse buying is relatively high.
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With such unique characteristics, then this research was conducted to find out whether media users on line shopping is committed both to the products or
services and to the providers of goods or commitment, as well as to find out what factors are associated with the level of consumer confidence on shopping on line.
In addition to the explanation that has been put forward on the basis of consideration of why this research needs to be done, in order to understand the
factors that affect consumer behavior is what the marketing patterns on line. Some of the variables is assumed as interrelated variables for causality is a
brand reputation, which is the starting point for the introduction of consumer product offerings, then consumers will be doing an assessment of the advantages
benefits earned and costs incurred, this variable was called with perceived value. Both of these variables on the variables that affect a assume the level of
commitment or loyalty of consumers against a product, where the causality between the independent variable i.e. reputation and perceived value to the
consumer is influenced by how big a commitment low levels consumer confidence consumer trust of the products on offer. This research will enrich the
efforts implies the dimensions of marketing that can be used as the object of an improvement in marketing on line.
B. Problem Formulation
