The Effect of Trust and Ease of Use on Online Purchase Decisions on Lazada (A Study on Lazada Consumers in Surabaya)

Ferdy Irwansyah¹, Hery Pudjoprastyono²

^1,2 Faculty of economics and Business, Universitas Pembangunan Nasional “Veteran” East Java, Indonesia

ABSTRACT: The increasing use of the internet and supported by the existence of covid-19 has formed a new phenomenon of consumer behavior, one of which is that consumers are becoming accustomed to using applications or websites to shop digitally. the purpose of this research is to investigate the influence of trust and ease of use on online purchasing decisions among Lazada consumers in Surabaya. This study uses a quantitative methodology and has a sample size of 72 participants. The population of interest in this study consists of Lazada consumers in Surabaya. The sample is selected using a non-probability sampling method, specifically purposive sampling, through the distribution of questionnaires. The sample consists of respondents who have previously used Lazada as an online shopping platform. Both primary and secondary data are utilized in this research. The data analysis is conducted using Structural Equation Modeling (SEM) based on the component-based approach, employing Partial Least Square (PLS) as the analytical tool. According to the study’s conclusions that Trust and ease of use both significantly among Lazada consumers in Surabaya.

KEYWORDS: Trust, Ease of use, Purchasing decision.

INTRODUCTION

In the current era of globalization, technical development is growing more complex and evolving quickly. Out of Indonesia’s 272 million people, 210 million used the internet in the years 2021–2022, according to a poll by the Indonesian Internet Service Providers Association (APJII).The increase in internet usage, coupled with the presence of COVID-19, has formed a new phenomenon in consumer behavior. One of these phenomena is that consumers have become accustomed to using applications or websites for digital shopping. Indonesia has several popular e-commerce services, one of which is Lazada. An online store called Lazada sells a variety of goods, including as electronics, clothing, toys, home goods, sporting goods, outdoor equipment, and automobiles. It also sells fashion items for both adults and children. The Southeast Asian Lazada Group, of which Lazada Indonesia is a member, was established in 2012. Over the past 5 years, Lazada has experienced a decline. Shopping on online platforms where sellers and buyers don’t meet face-to-face introduces factors that influence an individual’s purchasing decisions. Additionally, when shopping online, consumers generally prefer platforms that are easy to use to save time and energy effectively and efficiently. According to Davis (1989) as cited in Amijaya (2010: 14), ease of use is defined as the level at which someone believes that technology can be easily understood and used. With ease of access and operation, consumers are more inclined to make purchases.

However, both those who have and haven’t conducted online transactions share doubts about whether the targeted online stores can be trusted. Furthermore, those who haven’t made transactions yet may also feel uncertain about the initial steps in using online shopping applications.

Based on the information provided above, the researcher is interested in performing a study titled “The Effect of Trust and Ease of Use on Online Shopping Purchase Decisions on Lazada (A Case Study of Lazada Consumers in Surabaya)”.

LITERATURE REVIEW

Trust

Trust In business transactions involving two or more parties, trust is essential for successful outcomes. According to Ilmiyah and Krishernawan (2020), trust involves the buyer’s belief or consumer’s experience in the reliability of a product and the benefits or attributes it offers. Trust is the feeling that there is no danger from others in a relationship. Trust is related to predictions, meaning that when we can predict that someone won’t betray us and will cooperate well, trust is stronger (Suranto, 2011, as cited in Yazid Bustomin Pautina, 2022). Wiedyani & Prabowo (2019) Customer trust can be defined as the consumer’s response to a perceived gap between expected performance and actual performance when using a product. Kresnamurti Rivai et al. (2020) describe trust as the willingness of a party to be vulnerable to the actions of others based on the expectation that others will take certain important actions that need to be trusted, irrespective of the ability to monitor or control the other party. Sangadji and Sopiah (2013) state that trust is the knowledge consumers possess and the conclusions they draw about the object, attributes, and benefits. In summary, trust is an individual’s belief in the reliability and integrity of others in the online shopping process. According to Hidayatullah et al. (2022), there are three trust indicators: 1. Integrity, 2. Benevolence, and 3. Competence.

Ease of Use

Ease of use is a crucial consideration in online purchases. It refers to the absence of difficulty, the freedom from hardship, or the lack of need for substantial effort in using a system (Agtovia Frimayasa, 2022). Ease of use means the degree to which someone believes or trusts that a system can be operated without much effort because of its simplicity (Rodiah & Inaya Sari Melati, 2020). Jogiyanto (2019) explains that ease of use reflects an individual’s confidence that using a technology is clear and straightforward, requiring little effort, and should be easy to operate. Ease of use implies that a person believes that using an information system, in this case, an online shopping site, is easy and does not demand substantial effort from the user to operate it (Hasdani et al., 2021, as cited in Yazid Bustomin Pautina, 2022). Ease of purchase online means that consumers make minimal effort, avoiding excessive procedures for transactions, thus facilitating decision-making (Yuliawan et al., 2018). The ease of use indicators include: 1) Easy to use, 2) Easy to Learn, 3) Clear and understandable, and 4) Easy to become skillful (Davis et al., 2019, as cited in Setyoadi & Rusyda, 2023).

Purchase Decision

Consumer behavior includes purchase decisions as a key component. It includes decisions made prior to and following activities taken in connection with directly obtaining, selecting, and using goods and services. (Pratiwi et al., 2014, as cited in Arfah, 2022). Buchari Alma (2016) explains that Economic, financial, technological, political, cultural, product, pricing, location, promotion, physical evidence, people, and process aspects all impact purchasing decisions.. Many factors affect purchase decisions. Based on expert opinions. It is possible to conclude that a purchase choice is an activity taken in an effort to buy products or services in which consumers are presented with a variety of available alternatives. Some purchase decision indicators are: 1) Product reliability, 2) Habit of purchasing, 3) Recommending to others, and 4) Repeat purchases (Kotler, 2004, as cited in Sholihat & Rumyeni, 2018).

Trust and Purchase Decision

In the buying process, consumers exhibit varying levels of trust. Trust in online shopping sites is realized when the quality of information provided by the site is clear enough, and previous purchase reviews also influence consumer trust (Listia Puji Rahayu, Ari Susanti, 2022). Good trust instills comfort in consumers, leading them to continue making online purchases (Sukawati, 2018). Agustinus Mulyadi et al.’s (2018) research titled “The Influence of Trust, Ease, and Information Quality on Purchase Decisions in the Online Store Lazada” shows that the trust variable significantly affects purchase decisions. It can be inferred from this and previous research that the trust variable influences purchase decisions.

(H1): Trust is believed to positively affect online purchase decisions on Lazada.

Ease Of Use and Purchase Decision

In the present era, people seek convenient and practical ways to fulfill their needs and desires. Davis (1989) defines ease of use as the degree to which a person believes that utilizing a certain system involves little effort. This means that ease of use is how much person believes that using technology requires no effort. Yazid Bustomin Pautina et al.’s (2022) research “The Influence of Trust and Ease on Purchase Decisions in the Online Shopping Application Shopee” demonstrates that ease of use has a significantly positive influence on purchase decisions. Considering the explanations and previous research, Conclusion Purchase decisions are influenced by ease of use.

(H2): Ease of use is believed to positively affect online purchase decisions on Lazada.

RESEARCH METODE

This study employs an analytical method using a population of  Lazada users residing in Surabaya. The sample consists of 77 respondents. Nonprobability sampling using purposive sampling method is utilized for data analysis. According to Ghozali (2015), the ideal and representative respondent size depends on the total number of indicators per variable multiplied by 5 – 10. With 11 indicators in this study, the respondent number is 11 x 7 = 77. Data collection entails sending a survey using Google Form to respondents who have made online purchases through Lazada in Surabaya. Structural equation modeling (SEM) and the partial least squares (PLS) analytic tool are used for data analysis.

1. RESULT AND DISCUSSION

This study, total respondents was 77. The majority of respondents were between the ages of 22 to 27, and the predominant occupation was students.

Validity and Reability test

The Average Variance Extracted (AVE), which represents the amount of variance in indicators encapsulated by the latent variables. An AVE value greater than 0.5 signifies satisfactory validity for latent variables. In the case of reflective indicator variables, the Average Variance Extracted (AVE) value for each construct (variable) is considered. For a robust model, the AVE values for each construct should exceed 0.5.

Through the use of the composite reliability value, construct reliability is evaluated. A construct is thought to be dependable if its composite reliability value is greater than 0.70. When the composite reliability value is above this threshold, it indicates that the indicators consistently measure the latent variable

Table 1. Average Extracted ( AVE ) and Composite Reability

Source; Data Processeed 2023

The results of the AVE testing for the variables Trust (X1), Ease of Use (X2), and Purchase Decision (Y) are 0.604, 0.662, and 0.641 respectively. The values of all three variables are more than 0.5. Overall, it can be said that the study’s variables have good validity. The value of the trust (X1) variable is 0.820, Ease of Use (X2) 0.887, and the vvalue of the Purchase Decision (Y) 0.877, based on the outcomes of the tests for Composite Reliability. The Composite Reliability scores for all three variables in this study are over 0.70, indicating their dependability.

Inner Model (Structural Model testing)

R-Square value, a model test for goodness-of-fit, is used to evaluate the structural model. R-square value in the equation between latent variables indicates inner model testing. The R2 number reflects how well the model’s exogenous (independent / free) variables explain the endogenous (dependent / dependent) variables..

Table 2. R-Square

Source: Data Processed 2023

R-Square has a value of 0.568. This can be understood as the model’s capacity to account for the phenomenon of Subscription Decisions affected by the independent variables, such as Trust (X1) and Ease of Use (X2). 56.8% of the variation is accounted for by the model. The remaining 43.2% is explained by factors outside the scope of this study, with the exception of Trust (X1) and Ease of Use (X2).

Hypotesis testing

Using the inner model’s T-statistic values and coefficient results for hypothesis testing

Table 3. Path Coefficients ( Mean, STDEV, T-Values, P-Values)

Source: Data Processed 2023

DISCUSSION

The Effect of Trust (X1) on Online Purchase Decisions (Y)

On Lazada.

According to the findings of the study, trust has a substantial impact on online purchase decisions among Lazada customers in Surabaya. This finding underscores that Lazada is perceived positively in instilling trust in consumers, encompassing its ability, benevolence, and integrity. Consequently, enhancing trust in Lazada can further bolster online purchase decisions.

An analysis of the Outer Loading reveals that the most influential indicator for the Trust variable is Ability. In this context, Lazada’s ability to provide appropriate products and deliveries is pivotal. Given that online transactions lack face-to-face interactions, trust becomes crucial. When Lazada demonstrates its capability in supplying products and accurate deliveries, consumer trust grows, leading to increased online purchase decisions on Lazada. The research discussion implies that the presented ability significantly impacts consumers’ high online purchase decisions.

These research findings align with previous studies conducted by Lailiya, N. (2020), Napitupulu, M. H., & Supriyono, S. (2023), Sulaeman, N. A. P., & Sudrajat, A. (2023), where trust was found to impact purchase decisions

The Effect of Ease of Use (X2) on Online Purchase Decisions (Y) On Lazada

Results of the study indicate that Ease of Use contributes to online Purchase Decisions among Lazada consumers in Surabaya. This suggests that as the ease of using the Lazada website or app increases, online purchase decisions will also rise. Lazada’s user-friendly website and app, featuring ease of learning, navigability, clear interface, and understandable features, facilitate consumers’ online shopping experiences.

An analysis of the Outer Loading reveals that the most influential indicator for variable ease of use is “Easy to Use.” In this context, a user-friendly Lazada website or app, accessible from anywhere, enhances efficiency and effectiveness in saving consumers’ time and effort, encouraging them to make online purchase decisions. The research discussion indicates that the provided ease of use significantly influences high consumer online purchase decisions.

These research findings are in line with previous studies by Agustina, M., Tholok, F. W., & Handry, H. (2019), Salsabila, H. Z., Susanto, S., & Hutami, L. T. H. (2021), Solihin, S., & Zuhdi, S. (2021), where ease of use was found to impact online purchase decisions.

CONCLUSION

The purpose of this research was to discover and test the influence of Trust and Ease of Use on online Purchase Decisions among Lazada consumers in Surabaya. Based on the data analysis and discussions, conclusions can be made:

1. Trust has a contribution to online Purchase Decisions among Lazada consumers in Surabaya. Improving trust in Lazada’s ability, benevolence, and integrity can enhance online purchase decisions on the platform.
2. Ease of Use has a contribution to purchase decisions. Enhancing the ease of using Lazada’s website and app, making them user-friendly, clear, and efficient, can drive increased purchase decisions.

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20. Top Brand Award marketplace di Indonesia (https://www.topbrand-award.com) diakses pada desember 2022
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