Analysis of Effects of Source Credibility, Electronic Word-Of-Mouth, Website Quality, and Perceived Quality towards Buying Decision

Yonatan Suganda, Wibawa Prasetya (Pembimbing)

ABSTRAK

Penelitian menjelaskan pengaruh electronic word-of-mouth, source credibility, website quality dan perceived quality terhadap buying decision. Metode penelitian yang telah dilakukan adalah metode kuantitatif. Analisis dilakukan dengan mengumpulkan data dari kuesioner dengan responden adalah konsumen Bhinneka.Com. Penelitian ini bersifat deskritif dan verikatif, sedangkan analisis berdasarkan pengolahan data menggunakan metode SEMdisertai implikasi teoritis dan implikasi manajerial.
Perkembangan internet di Indonesia telah mendorong berkembangnya e-commerce di Indonesia. Menurut data yang dirilis biro riset Frost & Sullivan, bersama China, Indonesia menjadi negara dengan pertumbuhan pasar e-commerce terbesar di dunia dengan rata-rata pertumbuhan 17 persen tiap tahun. Melalui penelitian ini disimpulkan, bahwa variable electronic word-of-mouth dan variable perceived quality tidak berpengaruh terhadap buying decision. Variabel website quality dan variable source credibility mengukur hal yang sama sehingga membentuk variable baru yaitu variable website credibility yang berpengaruh signifikan terhadap buying decision. Penelitian ini juga menemukan bahwa variable perceived quality memiliki pengaruh negative terhadap buying decision
Kata kunci: SEM, Confirmatory Factor Analysis, buying decision, skala likert.

ABSTRACT

The research explains the impact of electronic word-of-mouth, source credibility, website quality and perceived quality towards buying decision. Research method applied was quantitative method. Analysis was done by collecting data from questionnaire with Bhinneka.Com’s consumer as respondents. This research is also descriptive and verificative while the analysis based on data processing using SEM method with theoretical and managerial implication.
The growth of internet in Indonesia has nurtured the growth of e-commerce in this country. Based on data released by research beaurau Frost and Sullivam, with China, Indonesia has become the country with highest e-commerce growth in the world with average growth 17% per year. Through this research, it is concluded that variable electronic word-of-mouth and variable perceived quality does not affect buying decision. Variable website quality and variable source credibility measure the same thing, thus constructing a new variable named variable website credibility which affects buying decision significantly. This research also found that variable perceived quality has negative effect towards buying decision.
Keywords: SEM, Confirmatory Factor Analysis, buying decision, likert scale.

1. Foreword Electronic commerce or e-commerce covers a wide range of online business activities for products and services, both business-to-business and business-to-consumer, via the Internet. E-commerce is usually associated with buying and selling over the Internet, or conduct a transaction involving the transfer of ownership or rights to use goods or services over computer networks. It can also be said of e-commerce with regard to any form of business transaction in which the parties interact electronically rather than by physical exchanges or direct physical contact.
Along with the development of communication technology, e-commerce involves more than mediated electronic financial transactions between organizations and customers. E-commerce should be viewed as all transactions through electronic media between the organization and third parties associated with it. With this definition, non-financial transactions such as customer requests for more information will also be considered as part of e-commerce. (Chaffey, 2009).
Today, the internet has become a media of cheap and fast marketing and has a wide range to penetrate boundaries. Internet development in Indonesia has shown significant development. It is now common for companies in indonesia to utilise e-commerce. Consumers who are used to make conventional purchase are turning to e-commerce purchases.
In the dynamic of e-commerce, we see consumers are always looking for more references and trust the opinions within the community about a product or often referred to as word-of-mouth (WOM). There was no denying the power of word-of-mouth plays a major role in its influence on consumer purchasing decisions. With the progress of internet network which gives choices of information regarding a product allowing a form of word-of-mouth communication that not only become a person-to-person form of communication about a product or service, but also capable to turn into many forms of word-of-mouth communication that spread globally. This form of communication is frequently called Electronic Word of Mouth (Jalilvand, 2012).
In addition, this study also analyzed the influence of Perceived Quality and Environment Online Store, in which Environment Online Store talks about webstore's atmosphere. In webstore's context, the stimulus that is needed is the atmosphere of the website that includes all cues neede to design a web site (website) and its layout, with examples such as the background color and pattern, hyperlinks, icons, fonts and web limits.
The informations about products, services and customers which are maintained become the most valuable assets of the organization. Therefore, it is important for successful electronic business to have a high quality website. A website should do more than just looks good. Basic usability of the website must be intuitive and allows website visitors to find what they are looking for quickly and easily. This means careful consideration of the information structure and navigation design.
Often happens, the customer is lack of motivation to acquire and sort out information that may lead to the determination of the quality of a particular application. Or the information is not available. Or the customer may not have the ability or resources to obtain or process it. In any case, perceived quality becomes important because perceived quality associated with the purchase decision. If the perception of high quality, advertising and promotional work is more likely to be effective. In contrast, the perception of quality problems will be difficult to overcome.
A statistical technique that analyzes the indicator variables, latent variables, and measurement error is structural equation modeling (SEM). With SEM we can analyze the relationship between the indicator variable with the latent variables (also known as the measurement equation), the relationship between latent variables (which is otherwise known as structural equation) which together involve measurement error. Furthermore, structural equation model is able to analyze the two-way relationship that often occurs in the social sciences.
AMOS (Analysis of Moment Structures) is an add-on module for SPSS. AMOS is designed to Structural Equation Modeling, Path analysis, and Covariance Structure Modeling, but can also be used to perform linear regression analysis and ANOVA and ANCOVA. IBM SPSS AMOS builds more realistic models and reflects the complex relationships because any numeric variable can be used to predict any other numeric variable. In AMOS, the concept of latent variables measured by one or more indicators using Structural Equation Modeling (SEM).
Based on the survey results, Bhinneka.Com, Jakarta has never done research on the factors that influence purchasing decisions, and therefore, researchers are interested in doing research on the factors that influence purchasing decisions based on previous research.

2. Method of Research

2.1. Respondent The number of respondents was 230 people Bhinneka.Com consumers. Respondents were taken by using purposive sampling technique because the respondent must have a certain criteria. Respondents were drawn using accidental sampling technique, because the sampling technique based on spontaneity factor, meaning that anyone who accidentally met with investigators and in accordance with the characteristics, then that person can be used as a sample (respondents).

2.2. Questionnaire

The questionnaire consists of two (2) sections for each type of respondent. Part I contains the identity data of the respondents. Part II measures the response of consumers to the variable source credibility, eWOM, perceived quality, and buying decision. 23 question items were obtained from the journals of research that has been done before. The measurement also includes the 23 indicators using a 5-point Likert scale: strongly disagree, disagree, neutral, agree, and strongly agree.

2.3. Data Processing First, the validity and reliability test are made to ensure the data processed is valid and reliable. If there is invalid and / or unreliable data, then the data will not be used for further processing. After that the researched recapped the results of first and second data section (screening respondent and the respondent's identity. Both perform the processing of data on the factors that influence the buying deicison using SEM methods. The steps are as follows:

3. Results and Discussion

Here are the 23 indicators that assessed:

Table 1. Details of Indicator Rated

Mudah memverifikasi keakuratan informasi di dalam website Bhinneka.Com | Desain situs terlihat professional | Menghindari segala jenis kesalahan | Website Bhinneka.Com mudah dipahami dan dioperasikan | Interaksi saya dengan website jelas dan dapat dimengerti | Website ini memiliki tampilan yang menarik | Menyediakan informasi yang akurat | Menyediakan informasi yang dapat dipercaya | Memudahkan saya untuk berkomunikasi dengan Bhinneka.Com | Saya merasa yakin bahwa produk akan dikirim sesuai dengan perjanjian | Saya membicarakan Bhinneka.Com lebih sering dari perusahaan online lainnya | Saya membicarakan Bhinneka.Com lebih sering dari perusahaan lain dalam bentuk apapun | Saya membicarakan Bhinneka.Com kepada banyak orang | Saya dengan bangga menyatakan kepada orang lain kalau saya adalah pelanggan dari Bhinneka.Com | Saya telah berbicara positif tentang Bhinneka.Com kepada orang lain | Saya membicarakan user-friendliness dari Bhinneka.Com | Produk yang diterima sesuai dengan representasi Bhinneka.Com | Saya mendapatkan sesuai dengan yang saya pesan dari Bhinneka.Com | Saya merasa privasi saya dilindungi | Saya merasa aman bertransaksi dengan Bhinneka.Com | Bhinneka.Com menyediakan kebutuhan saya | Saya akan mencari informasi lebih lanjut mengenai Bhinneka.Com | Bhinneka.Com akan menjadi pilihan saya dalam berbelanja produk elektronik |

The data of each respondent's identity can be seen in the following table:

Tabel 2. Repondent’s Identity Karakteristik | Jumlah | Persentase | Jenis Kelamin | Pria | 199 | 74.81% | Wanita | 60 | 22.56% | Total | | 100.00% | Usia | | | < 20 tahun | 53 | 19.92% | 20 tahun - 30 tahun | 150 | 56.39% | 31 tahun - 40 tahun | 41 | 15.41% | 41 tahun - 55 tahun | 17 | 6.39% | Total | | 100.00% | Pendidikan | | | SMA | 104 | 39.10% | D1/D2/D3 | 17 | 6.39% | S1 | 124 | 46.62% | S2/S3 | 7 | 2.63% | Total | | 100.00% |

Validity test is done by using the method of dimension reduction. The process is to look at the factor loading generated by SPSS. Question items with factor loading value above 0.5 is expressed as a valid item questionnaire questions (Hair, 2010).
Reliability test is performed by calculating Cronbach's Alpha. Then the coefficient compared to r table. Based on calculations, the value of Cronbach's Alpha is greater than 0.6, which means reliable questionnaire. After having tested the validity and reliability test then the researcher tested the normality test. Normality of data is one of the requirements to the operation of SEM. Concluded that, the data has a normal distribution because skewness critical ratio value is under the absolute value of 2.58 at a significance level of 0.001 (Ghozali, 2008). Kurtosis values are at 9.755 which is smaller than 10 so that the data are multivariately normal (Kline, 2010). The second thing that should be noted with respect to multivariate normality is an outlier evaluation. The multivariate outlier detection is done by taking the value of Mahalanobis distance. The criteria used is based on Chi-squares on 23 degrees of freedom at a significance level of p <0.001. Mahalanobis Distance value is 49.73. Then the following is the initial full model prior to modification

Gambar 1. Full Model Awal

In this model the researcher was confronted with several problems which are Heywood case, non definite positive covariance matrix and multicolinearity problem. To solve Heywood case the researcher gave a small value to variance error that has a negative value. To solve multicolinearity problem, the researcher combined two (2) latent variables which have correlation value over 0,9 into one (1) latent variable (Byrne, 2010) Further modification was done based on modification indices, variances estimates and standardized residual covariance. And the the researcher did exogen and endogen test to omit indicator that has low factor loading (not bigger than 0,5)
The following is the final full model

Gambar 2. Final Full Model Tabel 3. Goodness-of-fit results Kriteria | Cut off value | Hasil Analisis | Evaluasi | Absolut Fit Indices | Chi-square | 112.3169 | 111.548 | Fit | CMIN/DF | < 2 | 1.594 | Fit | Probability | p > 0.01 | 0.001 | H0 diterima | GFI (Goodness of Fit Index) | > 0.9 | 0.932 | Good Fit | AGFI (Adjusted Goodness of Fit Index) | > 0.9 | 0.897 | Marginal Fit | RMR (Root Mean Residual) | Semakin kecil | 0.024 | Fit | Incremental Fit Indices | NFI (Normal Fit Index) | > 0.9 | 0.903 | Adequate Fit | CFI (Comparative Fit Index) | > 0.9 | 0.962 | Good Fit | TLI (Tucker Lewis Index) | > 0.9 | 0.950 | Good Fit | IFI (Incremental Fit Indices) | > 0.9 | 0.961 | Good Fit | Parsimony Fit Indices | PNFI (Pratio x NFI) | 0 – 1 | 0.695 | Fit | PCFI (Pratio x CFI) | 0 – 1 | 0.739 | Fit | RMSEA (Root Mean Square Error of Approximation) | < 0.08 | 0.051 | Fit | AIC (Aikake Information Criterion) | 210 | 181.548 | Fit | ECVI (Expected Cross-Validation Index) | 0.917 | 0.793 | Fit | Based on table 3 above, it can be seen that probability value has shown a good result.

Table 4. Regression Weight Pada Model Akhir | | | Estimate | S.E. | C.R. | P | Label | PQ | <--- | EW | 0.118 | 0.134 | 0.878 | 0.38 | par_12 | PQ | <--- | WC | 0.95 | 0.228 | 4.169 | *** | par_13 | BD | <--- | WC | 1.151 | 0.549 | 2.098 | 0.036 | par_10 | BD | <--- | EW | 0.218 | 0.15 | 1.454 | 0.146 | par_11 | BD | <--- | PQ | -0.462 | 0.395 | -1.17 | 0.242 | par_14 |

A significant relationship marked with C.R value which are bigger than 1,96 dan P-value lower than 0,05. Based on analysis on table 4 above,it is known that variable Website Credibility has a significant impact on Buying Decision.
The next step is to do analysis on direct effects, indirect effects and total effects. The resuts of effect analysis can be seen in table 5 below. Kemudian dilakukan analisa pengaruh langsung, pengaruh tidak langsung dan pengaruh total. Hasil rekapitulasi analisa pengaruh dapat dilihat pada tabel 5 di bawah ini.:

Exogen Variable | Endogen Variable | Direct Effect | Indirect Effect | Total | Website Credibility | Perceived Quality | 0.79 | 0.00 | 0.79 | Website Credibility | Buying Decision | 1.06 | -0.40 | 0.66 | eWOM | Perceived Quality | 0.14 | 0.00 | 0.14 | eWOM | Buying Decision | 0.30 | -0.07 | 0.22 | Perceived Quality | Buying Decision | -0.52 | 0.00 | -0.52 |

4. Conclusion
Based on data processing and data analyzing, it can be concluded that : 1. There is a positive and significant impact from variable Website Credibility to Buying Decision 2. eWOM has a positive impact to Buying Decision, though it is not significant 3. Perceived Quality has a negative impact to Buying Decision, though it is not significant 4. Based on questionnaire, Website Credibility and Perceived Quality have good scores.

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