Volume 4 Issue 5
International Journal of Trend in Scientific Research and Development (IJTSRD) Volume 5 Issue 4, May-June 2021 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470 @ IJTSRD | Unique Paper ID – IJTSRD43705 | Volume – 5 | Issue – 4 | May-June 2021 Page 1702 Factors Influencing the Intention to Buy Products Online Dominicus Wahyu Pradana, Lena Ellitan, Robertus Sigit Haribowo Lukito Lecturer, Widya Mandala Catholic University, Surabaya, Indonesia ABSTRACT The growth of information technology, including the internet, turns out to have a big impact on all aspects of life, this happens because the internet can be accessed anywhere and anytime. The rapidly growing number of internet users can become a potential market for business people to enter, therefore more people are using the internet as a marketing and business medium. This paper will discuss the factors that influence consumers to buy products online. For companies, they can find out what factors influence the interest of buyers of products online and for consumers to provide knowledge about their interest in purchasing products (various products).The quality of the product, the higher the customer satisfaction, so online shop customers choose online stores according to recommendations from other people who have experience buying their products so that it has an impact on customer satisfaction. Product innovation is also carried out so that consumers do not feel bored and bored with existing products. Based on previous research, product innovation does not have a significant effect on consumer buying interest A positive brand image has a positive influence on purchasing decisions, the higher the brand image created by the company, the level of decision making to buy also increases. Sales promotion is a form of direct persuasion through the use of various incentives that can be arranged to stimulate immediate product purchases and or increase the amount that customers will buy. KEYWORDS: Product Quality, Product Innovation, Brand Image, Promotion. Purchase Intention How to cite this paper: Dominicus Wahyu Pradana | Lena Ellitan | Robertus Sigit Haribowo Lukito "Factors Influencing the Intention to Buy Products Online" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456- 6470, Volume-5 | Issue-4, June 2021, pp.1702-1706, URL: www.ijtsrd.com/papers/ijtsrd43705.pdf Copyright © 2021 by author (s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http: //creativecommons.org/licenses/by/4.0) INTRODUCTION The growth of information technology, including the internet, turns out to have a big impact on all aspects of life, this happens because the internet can be accessed anywhere and anytime. The rapidly growing number of internet users can become a potential market for business people to enter, therefore more people are using the internet as a marketing and business medium. With the number of internet users reaching 196.7 million people or about 73.7% of the total population in Indonesia (kompas.com, 2020). On the other side, the practice of e- commerce and e-business has many advantages for both companies and consumers. The rapid growth of the e- commerce market in Indonesia cannot be doubted, the e- commerce market can be very attractive due to its future potential. This is also based on a pandemic era like this which increases internet users so that its development continues. By offering convenience, e-commerce will always be used by internet users to carry out various activities It can be seen from research showing that 12 million new e- commerce users during the COVID-19 pandemic (Sirclo, 2020). 40% of users will make online shopping a habit and it will continue to grow. New users tend to still choose to shop online using an e-commerce platform, not only temporarily during the pandemic. Due to this pandemic, e-commerce growth has increased by more than 90%, far from the previous forecast which was predicted to increase by 54%. 58 percent of e-commerce users are women, on the other hand, male consumers are 42%. The high number of users of social media and e-commerce networks is used by business people to offer a variety of products, with varying quality and prices. This is what initially became the consideration of consumers to make transactions through online media. However, another consideration for consumers in making online purchase transactions is the trust of each online business actor and consumer. There have been many cases where consumers have made transactions sending a sum of money to pay for products that have been purchased. They bought but the desired item did not arrive at the address. Or from business people and vice versa, at first the transactions with consumers went smoothly but several times they gave concessions to consumers to make payments after the goods were received (Prayogo, Ellitan and Muljani, 2021). What happens is that the goods have been sent but the payment is not received. This is a big consideration for consumers and online business people in instilling trust in the online business itself (Yuniarti, 2016). According to a survey conducted by the Indonesian Ecommerce Association (IdEA), it was found that the fashion category was the category most purchased with 78%, then mobile 46%, consumer electronics 43%, books and magazines 39% and groceries 24% (startupbisnis.com, 2014). This paper will discuss the factors that influence consumers to buy products online. For companies, they can find out what factors influence the interest of buyers of products online and for consumers to provide knowledge about their interest in purchasing products (various products). IJTSRD43705 International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD43705 | Volume – 5 | Issue – 4 | May-June 2021 Page 1703 LITERATURE REVIEW Product Quality According to Kotler and Armstrong (2014) "Product quality is the character possessed by a product that has the ability to meet customer needs". Product quality is the ability of a product to perform its functions, it includes overall, durability, reliability, accuracy, ease of operation and repair of the product as well as other attributes. If the company wants to maintain its competitive advantage in the market, the company must understand what dimensions are used by consumers to distinguish the products sold by the company from competitors' products. The totality of product features and characteristics of the product also influences in shaping product quality, if the quality of the product exceeds the expectations of consumer needs, customers will be happy and consider this product acceptable and even high quality, high satisfaction will also affect the possibility of repeat purchases. Saputra, et al. (2017) argues that product quality is an understanding that the products offered by sellers have more selling value that competing products do not have, therefore the company tries to focus on product quality and compares it with the products offered by the company. In maintaining product quality, there are elements of product quality that must be met. Gaspersz (2008) explains that the dimensions of product quality include 8 dimensions, which consist of: 1. Performance That is the basic operating characteristics of the core product and can be defined as the appearance of a real product. The performance of a product is a reflection of how a product is presented or displayed to consumers. Performance measurement level basically refers to the level of the basic characteristics of the product it operates. A product is said to have good performance if it can meet expectations. For each product/service, the dimensions of performance can be different, depending on the functional value promised by the company. For the food business, the dimension of performance is good taste. 2. Reliability That is the level of constraint of a product or the consistency of the reliability of a product in its operational process in the eyes of consumers. The reliability of a product is also a measure of the probability that a product will not be damaged or fail within a certain period of time. A product is said to have high reliability if it can attract the trust of consumers regarding the quality and reliability of a product. The dimensions of performance and reliability at first glance are almost the same but have clear differences. Reliability shows the probability of the product performing its function. 3. Additional privileges (features) Complementary characteristics can be defined as the level of completeness of the attributes that exist in a product. At some point, the performance of each brand is almost the same but the difference lies in the features. This also resulted in consumer expectations of relatively homogeneous performance dimensions and expectations of relatively heterogeneous features. 4. Conformance to specifications That is the extent to which the design and operating characteristics meet predetermined standards and can be defined as the degree to which all units produced are identical and meet the promised target specifications. The above definition can be explained that the level of conformance of a product is said to be accurate when the products marketed by the manufacturer are in accordance with the company's plans, which means they are products that the majority of consumers want. 5. Durability In terms of how long the product can continue to be used and can be defined as a measure of the expected operating life of the product under normal conditions. 6. Service ability Includes speed, competence, convenience, easy repair, and satisfactory complaint handling and can be defined as a measure of the ease with which a product is damaged or failed. Here it means that if a product is damaged or fails then readiness to repair the product can be relied upon, so that consumers do not feel disadvantaged. 7. Aesthetics Namely the beauty of the product to the five senses and can be defined as the attributes attached to a product, such as color, model or design, shape, taste, aroma and others. Basically Aesthetics is an element that complements the basic functions of a product so that the performance of a product will be better in front of consumers. 8. Perceived quality When applied to product quality measurements, perceived quality is the basic quality possessed by a product Product Innovation Currently, the products offered by each company are increasingly diverse with their respective advantages. This causes consumers to be more selective in choosing the right product. Therefore, companies are competing to innovate products in order to attract consumer interest and to maintain the interest of their customers, in order to maintain the survival of the company (Aleyya, et al., 2014). According to Hubeis (2012:17) this innovation is needed by companies to survive or be more competitive. Innovation is a product or service perceived by consumers as a new product or service. In simple terms, innovation can be interpreted as a breakthrough related to new products. Hubeis (2012) adds that innovation is not only limited to the development of new products or services. Innovation also includes new business thinking and new processes. Innovation is also seen as a company's mechanism to adapt in a dynamic environment. Therefore, the company is expected to create new ideas, new ideas that offer innovative products and provide satisfactory service to customers. Innovation increasingly has an important meaning not only as a tool to maintain the survival of the company but also to be excellence in the competition. Setiadi (2010) states that the characteristics of innovation consist of 5 things, namely: A. Relative advantage, the most important question to ask in evaluating the potential success of a new product is, “Will the product in question be perceived as offering a much greater advantage over the product it is replacing? B. Compatibility is an important determinant of new product acceptance. Conformity refers to the degree to which the product is consistent with the existing values and past experiences of the potential adopter. C. Complexity is the degree to which the innovation is found to be difficult to understand and use. The more International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD43705 | Volume – 5 | Issue – 4 | May-June 2021 Page 1704 complex the product, the more difficult it is to gain acceptance. D. Trialability is the level of whether an innovation can be tried first or must be bound to use it. An innovation can be tested in real conditions, innovations are generally adopted more quickly. To further accelerate the adoption process, an innovation must be able to demonstrate its advantages. New products are more likely to be successful if consumers can try or experiment with ideas on a limited basis. E. Observability The degree to which the results of using an innovation can be seen by others. The easier it is for someone to see the results of an innovation, the more likely the innovation is to be adopted by a person or group of people. Visibility and ease of communication reflect the degree to which the results of using a new product are visible to friends and neighbors. Brand Image Brand image is a set of beliefs, ideas, impressions that a person has of a brand. Tjiptono (2011) suggests that a better brand image will display better product quality in the eyes of consumers. A good brand image will make it easier for buyers to make purchases because not all potential consumers have information on quality and time to compare products with one another so that what will be used as a reference is a brand that has a good image (Tjahyono, Ellitan, &Handayani, 2021). Brand image is not immediately formed when the brand is born, but there are stages. Simamora (2004) state that there are 3 factors that build a Brand Image, namely: 1. Corporate Image: Corporate image is a set of associations perceived by consumers towards companies that make a product or service. 2. User Image: User image is a set of associations perceived by consumers against users who use an item or service. 3. Product Image: Product image is a set of associations perceived by consumers towards a product. Promotion Promotion is one of the other factors that influence purchasing decisions. Promotion is an important factor that must be done by a company. With promotion, a company can provide information to consumers about the products it creates. The advantages of these products can be known by consumers through promotions and can generate interest in consumers to buy these products. Promotion is a communication activity carried out by a company to explain to consumers about the products created by the company. Promotion is a variety of ways to inform, persuade, and remind consumers directly or indirectly about a product or brand being sold (Kotler and Keller, 2007). Promotion is the part of the marketing process that communicates the benefits of the product. In a competitive market, we cannot expect goods and services to sell on their own, no matter how high-quality the product is, unless the customer knows about it. Promotion has an important role in winning new customers, and maintaining existing strategies. According to Kotler and Keller (2007), there are five promotion mixes, namely: 1. Advertising, namely all paid forms of non-personal presentation and promotion of ideas, goods, or services with a particular sponsor. 2. Sales promotion, which is short-term intensive to encourage the purchase or sale of a product or service. 3. Public relations, namely building good relations with various groups to get the desired publicity, building a good corporate image, and handling or dealing with rumors, news, and unpleasant events. 4. Personal selling, namely personal presentations by company salespeople for the purpose of generating sales and building customer relationships. 5. Direct marketing, namely direct relationships with carefully targeted individual consumers to obtain an immediate response and build lasting customer relationships, the use of direct mail, telephone, television, direct response, e-mail, internet and other means to communicate directly with consumers Buying Interest One form of consumer behavior is interest or desire to buy a product or service. The consumer form of buying interest is potential consumers, namely consumers who have not made a purchase in the present and can be referred to as potential buyers. Kotler and Keller (2016) state that consumer buying interest is a consumer behavior where consumers have a desire to choose, use, and consume or even want a product offered. The definition of buying interest is buying interest is a behavior that appears in response to objects that show consumer's desire to make a purchase. The factors that shape consumer buying interest (Wibisaputra, 2011) are: a. The attitude of others, the extent to which the attitude of others reduces a person's preferred alternative will depend on two things, namely the intensity of the negative nature of the other person towards the consumer's preferred alternative and the consumer's motivation to comply with the wishes of others. b. Unanticipated situations, these factors will later be able to change the attitude of consumers in making purchases. It depends on the consumer's own thinking, whether the consumer is confident in deciding whether to buy an item or not. In carrying out the purchase intention, the consumer can make five sub-purchase decisions as follows: 1. Brand decision 2. Supplier decision 3. Quantity decision 4. Decision time 5. Payment method decision According to Kotler and Keller (2016) there are eight types of marketing communication mix, namely advertising, sales promotion, events and experiences, public relations and publicity, direct marketing, interactive marketing, word of mouth marketing, and personal selling. Kotler and Keller (2016) suggest that buying behavior is influenced by four factors, namely: 1. Culture (culture, sub culture, and social classes) 2. Social (reference group, family, and roles and status) 3. Personal (age and stage of life cycle, occupation and economic circumstances, personality and self-concept, and lifestyle and values) 4. Psychological (motivation, perception, learning, emotions, memory). International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD43705 | Volume – 5 | Issue – 4 | May-June 2021 Page 1705 DISCUSSION AND PROPOSITION DEVELOPMENT In this pandemic situation, humans are required to have technological capabilities and utilize information technology and computerization technology as well as very high digital technology. Along with this the need for information and communication technology is a very important thing. Technology as an intermediary in marketing communication media and trade transactions. During this pandemic, it is hoped that the internet can be accessed anywhere and anytime. However, from the aspect of marketing strategy, efforts need to be continued in relation to efforts to attract consumers and maintain customer loyalty. Long before the pandemic there was a tendency that more and more people were shopping and doing business on the internet. Visa eCommerce Consumer, Visa's research- monitoring agency, found the following four answers: first, about 80% of respondents said online shopping times were more flexible. Second, as many as 79% of respondents said they easily compare prices so they can save more. The online shopping trend is starting to be in demand because the shopping process is not as complicated as buying decisions through offline. Online shopping makes it easier and saves time, costs compared to direct shopping. The potential of the internet as a marketing and commerce medium has been widely discussed, especially by players in the marketing field. The discussion resulted in a view of electronic commerce, especially electronic commerce via the internet, thus causing a person to make online shopping preferences. Online shopping preference is a person's tendency to make purchases via the internet (Levin et.al, 2005: 284) Based on the literature and previous studies, it was found that product quality has a positive and significant effect on purchasing decisions, meaning that the higher the value of consumer perceptions of product quality, the stronger the consumer's urge to make purchasing decisions. Based on previous research, it was found that product quality had a significant effect on consumer buying interest. This is supported by the results of Samsiar's (2020) research on product quality, so it can be formulated the proposition that product quality has a positive and significant influence on purchasing decisions. Product innovation is also carried out so that consumers do not feel bored and bored with existing products. Based on previous research, product innovation does not have a significant effect on consumer buying interest according to Ernawati (2019) research. There is also research that proves that innovation has an effect on consumer buying interest which may be due to product differences so that it has different results as in Sinurat's research (2017). Based on this, the proposition can be developed that product innovation has a positive and significant influence on purchasing decisions A positive brand image has a positive influence on purchasing decisions, the higher the brand image created by the company, the level of decision making to buy also increases (Yuniarti, 2016). These results have been supported by several studies that could have had the same results as this study, brand image has a positive and significant influence on purchasing decisions in accordance with previous research on Starbucks brand image (Negara, et al. 2018). Brand Image has a positive and significant influence on purchasing decisions. Promotion is one of the other factors that influence purchasing decisions. Promotion is an important factor that must be done by a company. With promotion, a company can provide information to consumers about the products it creates. From this research, it can be proven whether promotion has a significant effect or not. Based on previous research, promotion has a significant influence on purchasing decisions. Promotion is part of the marketing process that communicates the benefits of the product, so it can be interpreted that promotion is an important element so that the business can run and have a high level of sales. Promotion has a positive and significant influence on purchasing decisions. CONCLUSION The quality of the product, the higher the customer satisfaction, so online shop customers choose online stores according to recommendations from other people who have experience buying their products so that it has an impact on customer satisfaction. With a deep understanding of consumers will allow marketers to influence consumer decisions, so that consumers want to buy what is offered by marketers. One of the keys to the success of a marketing strategy is to create product innovations that are in accordance with the needs and desires of the target market. Product innovation is closely related to the creation of new products. This is because product innovation is the application of new ideas or ideas into products so that new products are created. Thus, a successful product is a product that is acceptable to consumers with prices, attributes, and appearances that meet the needs and desires of consumers. Development of a product, manufacturers must consider quality aspects that will support the product's position in the market. Quality is one of the factors that consumers consider before buying a product, quality is a condition of an item based on an assessment of its conformity with predetermined measuring standards. Brand image is the result of consumer views or research on a good or bad brand. This is based on consideration by comparing the differences that exist in several brands, so that the brand whose offerings meet the needs will be selected. It can be concluded that brand image is a perception that arises in the minds of consumers of a product or service when consumers remember the brand of the product or service. Business people need to maintain and develop aspects that can lift brand images such as further improving product quality and always being oriented to consumers. Sales promotion is a form of direct persuasion through the use of various incentives that can be arranged to stimulate immediate product purchases and or increase the amount that customers will buy. The purpose of sales promotion is very diverse. 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