Indonesian Journal of Business and Entrepreneurship (IJBE)

Competitive Advantage Strategy To Increase Sales of PT ABC'S Layer Feed

Uray Irzandi, Siti Jahroh, Setiadi Djohar — Mon, 15 Jan 2024 13:24:21 +0700

In Indonesia, the potential demand for eggs was still high from time to time reaching 5.2 million tons in 2021, triggering every animal feed company to compete in providing the national demand for eggs. PT ABC was one of the animal feed mills that experienced a decline in market share of 1.92% in 2021. This paper aims to identify the factors influence product competitive advantage, analyze internal and external factors, and formulate strategies to increase market share. Data was analyzed using IFE, EFE, IE, and SWOT matrix and ended with QSPM to get priority strategies from December 2022 until January 2023. The highest competitive advantage factor at PT ABC was in the after-sales service to customers with the highest priority strategy for the development of products to increase market share was increasing feed production while maintaining quality and the market penetration strategy was strengthening cooperation with third parties to facilitate business. Two priority strategies could be implemented for PT ABC. First on the product development strategy to increase feed production while maintaining quality and strategy regarding market penetration was sales segmentation to retail traders and direct breeders.

Keywords: after sales, eggs, feed production, qspm, swot

The Important Role of Financial Architecture Regulation Toward Fintech P2P Lending Ecosystem

Chandra Wijaya, Bernardus Yuliarto Nugroho, Mohammad Fahmi Arkanuddin — Mon, 15 Jan 2024 13:27:59 +0700

The purpose of this research is to analyze the significant impact role of financial architecture regulation in the fintech peer-to-peer (P2P) lending ecosystem, using a quantitative approach and the SEM-Amos analysis tools. The research period was carried out around 2022, using research instruments in the form of distributing questionnaires, and the respondents were users of the P2P lending fintech mobile application spread, both as borrowers - lenders and interviews with stakeholders in the P2P lending fintech industry. The results indicated a significant impact of financial architecture regulation on the fintech P2P lending ecosystem, with an estimated value of 0.922. This finding demonstrates that financial architecture regulation plays a crucial role in establishing a strong and stable fintech P2P lending ecosystem. The provision of regulations, is one of the core functions of regulatory bodies and serves to guide and direct the future development of this industry. It is essential that regulations address key aspects such as big data analytics, automation and robotics, which serves as the basis for the development of information technology (IT),) to strengthen the fintech P2P lending ecosystem.

Keywords: financial architecture regulation, Fintech P2P Lending Ecosystem, fintech industry, SEM

Sustainable Business Model Development of Salam Rancage Bogor Using Triple Layered Business Model Canvas

Rinda Fadila, Yudha Heryawan Asnawi, Asep Taryana — Mon, 15 Jan 2024 13:32:16 +0700

The Business Model Canvas (BMC) is a tool commonly used by companies to create business models. However, the weakness of BMC is still focused on increasing profits and ignoring other sustainability concepts. The research focuses on the use of the Triple Layered Business Model Canvas (TLBMC) to create business models focused on sustainability issues on SME scale. This research was conducted at a social enterprise in Bogor named Salam Rancage from December 2022-February 2023. The primary data was collected by field observations and in-depth interviews with management, artisans, and an old customer. Secondary data include internal documents, previous research, scientific journals, and data from the internet. The data is analyzed using descriptive analysis techniques and by mapping the 27 elements of TLBMC. The results of the study show that the application of the TLBMC framework in Salam Rancage can be implemented in significantly covering three aspects of economic, environmental, and social issues that have not been covered in the BMC framework. The TLBMC framework is one of the tools that can be considered to achieve more sustainable business.

Keywords: model business, salam rancage, social enterprise, sustainability, TLBMC

Financial Decisions in Family Business: The Application of Financial Growth Cycle and The Theory of Planned Behavior

Nurchayati Nurchayati, Rr. Suprantiningrum, Muchayatin , Janti Soegiastuti — Mon, 15 Jan 2024 13:39:24 +0700

Family businesses are influenced by economic and non-economic factors when it comes to making decisions, including financing decisions for business growth. In particular, individual financial attitudes could greatly affect financial behavior in family firms. This study explored the relationship between access to information, external sources, family norms, and experience in influencing financing decisions for family business growth. The study collected data through questionnaires from 153 managers/owners in micro, small, and medium enterprises in Semarang. It used a quantitative method with regression analysis techniques with the Structural Equation Modeling (SEM) using AMOS software. The study found that information access (S.E.=0.078; p-value=0.001), external sources (S.E.= 0.055; p-value=0.000), family norms (S.E.= 0.069; p-value=0.000) had significant effects on experience. Moreover, financing decisions were influenced by family norms (S.E.= 0.072; p-value=0.000), and experience (S.E.= 0.089; p-value=0.001). The results also show that experience could mediate the relationship between access to information and external sources with financing decisions. Based on these findings, family businesses need to consider these factors when making financing decisions to succeed carefully. This study provides important insights for family businesses looking to make informed and effective decisions regarding financing their growth.

Keywords: financing decisions, family business, financial growth cycle, theory of planned behavior

The Effect of Enterprise Risk Management and Compliance Practices on The Firm Performance of Indonesian Banking Companies

Mon, 15 Jan 2024 00:00:00 +0700

Enterprise Risk Management (ERM) practices are particularly crucial in this industry to ensure stability and compliance with regulatory requirements. This study examines the effect of ERM on a firm’s operational and financial performances by using two mediating variables of compliance practices and IT strategy. By using a quantitative approach, data was collected through purposive random sampling from 250 bank managers in Jabodetabek, Indonesia. The study found that ERM was found to influence financial and operational performance positively and significantly. Moreover, compliance practices positively and significantly affect both financial and operational performance. IT strategy also has a positive and significant impact on firm performance. In testing the mediating effect, IT strategy partially mediates the relationship between ERM and performance, as do compliance practices. These findings highlight the importance of ERM, IT strategy, and compliance practices in enhancing the performance of banking companies in Indonesia. The findings validate the increasing importance of risk management in the financial landscape in Indonesia. The recognition of the banking sector's complexity and vulnerability to diverse risk types, including credit, market, operational, and regulatory risks, underscores the critical role of risk management practices.

Keywords: enterprise risk management, compliance practices, it strategy, financial performance, operational performance

Decision Analysis To Rent of Co-Working Space and Virtual Office in Jabodetabek Areas

Hartika Lisdiawati, Ujang Sumarwan, Lilik Noor Yuliati — Mon, 15 Jan 2024 13:48:24 +0700

Technology and the new normal make the working model more flexible. Co-working space is also present in line with these changes. Customer awareness is in good results but the fact is not in line with existing business practices. Several co-working spaces experienced decreased visits, unstable sales, and received losses. The purpose of this study is to analyze the factors that influence the decision to rent from the variables mediating perceived benefits and costs with the influencing variables being customer motivation, reliability, reputation, and convenience. The sample collected was 259 respondents who were consumers who had rented a co-working space located in Jabodetabek which was the scope of the study as well. In a multivariate analysis with SEM-PLS, the research results of the decision to rent were significantly more influenced by perceived benefits than costs. The biggest benefit is influenced by customer motivation and the cost is influenced by reliability. The new results of this study show that the reputation variable is consistently not significant in rent decisions.

Keywords: coworking space, decision to rent, perceived benefit, perceived cost, SEM-PLS

The Effectiveness Pertamina Pinky Movement Program: Implementation of The Concept of Creation Shared Value (CSV)

Meidina Arimbi Rushartami, Joyo Winoto, Suprehatin — Mon, 15 Jan 2024 13:53:09 +0700

Creating Shared Value (CSV) is the company's operational policy by increasing the company's competitive value and simultaneously advancing social and economic conditions for both the company and target recipients of the program. This program aims to shift the use of subsidized LPG to non-subsidized LPG and help MSEs develop their businesses. This study examines the effectiveness of the Pinky Movement Program regarding social and economic values for both companies and program participants. This study uses a survey method by collecting primary and secondary data. Primary data was obtained through questionnaires distributed to 392 program participants who were selected using purposive sampling. In total, 269 respondents completed the questionnaire. Secondary data was obtained from Pertamina, including sales, profits, brand reputation, the number of employees who contributed to the program and its implementation of the training program. Data analysis was performed using a paired sample t-test to compare the conditions before and when the The Pinky Movement Program was implemented. The study results show that the Pinky Movement program effectively created social and economic value from the perspective of program participants. However, from the Company's perspective, this program has not proven effective because there have been no positive changes in economic and social values before and during the program's implementation. The managerial implications that companies can carry out are continuing to run the Pinky Movement program as a social investment capable of providing positive results for the company, target recipients, and affected stakeholders, respectively.

Keywords: creating shared value, economic value, micro small enterprises, non-subsidized LPG, social value

The Successful Implementation of The Electronic System of Initial Public Offering ("E-IPO") in The Indonesian Capital Market

Mohamad Ridwan Rahmanto, Arif Imam Suroso, Bayu Bandono — Mon, 15 Jan 2024 00:00:00 +0700

With a very significant increase in the number of capital market investors, an information system is needed that supports investors to invest more easily and transparently. To facilitate this, the Financial Services Authority ("OJK") in 2020 issued Financial Services Authority Regulation number 41/POJK.04/2020 ("POJK 41"). The pricing, ordering and allotment of securities are carried out through an information system called Electronic Indonesia Public Offering ("E-IPO System"). The E-IPO system aims to provide access to all investors in the Public Offering and booking pricing process so as to increase the participation of all investors. In addition, the use of the E-IPO System is expected to increase transparency and efficiency in the IPO process in order to increase investor confidence in the pre-determined price. As a result of this research, the E-IPO System can be categorized as a good system and has a good net benefit for its users, this is reflected in the condition of information quality, system quality and service quality that affect the use and the satisfaction of E-IPO System users. This will directly or indirectly affect the net profit that will be received by users.

Keywords: delone and mclean information system success model, e-ipo, system implementation success, initial public offering, public offering system

The Effect of Halal Certification and Veterinary Control Number (NKV) on The Purchase Intention of Beef Products in Depok City For Non-Muslim Consumers

Abdul Azis, Lukman M. Baga, Yudha Heryawan Asnawi — Mon, 15 Jan 2024 14:01:14 +0700

Starting in 2019 and 2020, the government began to make it mandatory to implement halal and NKV certification. The guarantee of food safety for beef products is not only halal certificates but also a Veterinary Control Number (NKV). Responds from non-Muslim consumers on the purchase intention of meat products with halal and NKV certificates are supporting factors in convincing sellers or producers to carry out the certification process. Therefore, this study aims to identify and analyze the influence of several factors, such as awareness, the role of certification, health reasons, and the parts of the halal marketing mix (product, price, promotion, and place). This research was conducted on 124 non-Muslim respondents selected by purposive sampling. Data were collected online and analyzed using PLS (Partial Least Square). The results show that awareness, the role of certification, health reasons, and the halal marketing mix (product, price, promotion, and place) affect the purchase intention of non-Muslims towards beef. There needs to be a role from various parties regarding information about halal and hygienic products. For example, sellers can inform consumers that the products they sell have been confirmed halal and the cleanliness of their products if an outbreak infects livestock at a certain time. Each group of respondents has differences in terms of factors influencing purchasing interest due to beliefs and habits.

Keywords: beef, halal certification, food safety, purchase intention

Effect of Omnichannel Implementation on Service Quality, Customer Satisfaction, and Perceived Value in Indonesian Restaurant

Yudhistira Qasthari Putra, Nurdin Sobari — Mon, 15 Jan 2024 14:08:26 +0700

Omnichannel in restaurants provides ordering methods through various integrated channels. Customers can place orders using an online platform without waiting for a waiter from a restaurant to help them. Through this method, customers can order food and choose a payment method that affects the customer experience. The research aims to see the effect of omnichannel implementation on consumer behavior in restaurants. The research will examine the relationship between omnichannel implementation and three variables, namely service quality, perceived value, and customer satisfaction. The research method used is quantitative with SEM used to see the relationship between the variables of the study. With this research, it is hoped that knowledge about omnichannel can be better understood academically and practically and that omnichannel can be applied optimally so that it can provide benefits for both business and customers. From the research conducted, it was found that omnichannel influences service quality, perceived value, and customer satisfaction both directly and indirectly. Good omnichannel implementation in restaurants is needed to support the improvement of services that can be offered by restaurants to customers. This research concludes that the application of omnichannel can improve service quality, perceived value, and customer satisfaction in restaurants in Indonesia.

Keywords: omnichannel, restaurant, service quality, customer satisfaction, perceived value

Development of Online Store Marketing Strategy for Obsolete Fashion Shukufukuu.Id

Halimah Zatalini, Noer Azam Achsani, Retnaningsih — Mon, 15 Jan 2024 14:11:47 +0700

Obsolete fashion is a potential market in Indonesia. The increasing trend of public consumption is utilized by Shukufukuu.Id to sell used fashion clothes. However, Shukufukuu.Id's revenue has stagnated. This research is designed to create alternative marketing strategies as a solution to the problem. The method of determining respondents in this study uses non-probability sampling with a convenience sampling technique. Research respondents were taken from potential consumer respondents totaling 33 people and Shukufukuu.Id respondents totaling 30 people. The analytical tool used in this research is the product elements (product), price, promotion, distribution channels (place), personalization, privacy, customer service, community, security, site, and sales promotion (4P+P2C2S3) marketing mix. The data in this study were analyzed using descriptive analysis and importance-performance analysis (IPA). The results showed that there are five variables with high expectations but have not met customer satisfaction, namely the diversity of clothing types, unique clothing models, clothing designs, free shipping promos on first purchases, and promos at the end of the month. Based on IPA calculations and the owner's view of the problems faced and solutions, alternative marketing strategies are designed in the form of increasing the variety of clothes sold, sales promotions that can increase customer satisfaction and brand awareness, and sales promotions that can change consumer behavior.

Keywords: marketing mix 4P+P2C2S3, importance performance analysis, obsolete fashion, alternative marketing strategies, fashion trend

The Determinants of Behavioral Intention and Use Behavior of QRIS as Digital Payment Method Using Extended UTAUT Model

Elvina Dian Paramita, Eko Ruddy Cahyadi — Mon, 15 Jan 2024 14:19:08 +0700

The development of QR code payment services by various fintech companies in Indonesia prompted Bank Indonesia to issue a Quick Response Indonesian Standard (QRIS) to support transactions that were safer, easier, faster, and more efficient. This study aimed to analyze the consumer preferences and factors that influenced their intention and use behavior when using QRIS in the Jabodetabek area. The extended Unified Theory of Acceptance and Use of Technology (UTAUT) model was employed to analyze these aspects. This research was conducted from March 2023 until May 2023. Online questionnaires were distributed to 198 respondents who were users of e-wallets or mobile banking and knew about the QRIS feature. Then, the collected data were analyzed using Structural Equation Modelling – Partial Least Square (SEM-PLS). The findings revealed that perceived risk, performance expectancy, social influence, and effort expectancy had a significant positive effect on the behavioral intention to use QRIS. Meanwhile, QRIS usage behavior was positively influenced by both behavioral intentions and facilitating conditions. The priority strategy that could be implemented to enhance the adoption of QRIS was by educating the role of QRIS in reducing payment risks.

Keywords: extended UTAUT, fintech adoption, QR code payment, QRIS, SEM-PLS

The Impact of Knowledge About Business Model Canvas (BMC) on Entrepreneurial Interest of Young Generation in Jabodetabek

Mon, 15 Jan 2024 14:38:56 +0700

This research aims to investigate the influence of Business Model Canvas (BMC) knowledge on entrepreneurial knowledge among young generations in the Jabodetabek region. There is a growing need to understand the role of BMC in stimulating entrepreneurial interest among the youth. This study seeks to provide insight to the younger generation on the importance of entrepreneurship and to encourage the development of an entrepreneurial interest through the application of the Business Model Canvas (BMC) learning method. The research employs purposive sampling techniques for data collection and utilizes a quantitative approach with simple regression analysis.The data reveals a correlation coefficient (R) of 0.65 or 65%, with a coefficient of determination (R Square) of 0.423. Data processing using SPSS 29 indicates an F value of 60.878 with a significance level of 0.001 < 0.05. Partial significance test (t-test) shows that the Entrepreneurial Knowledge BMC variable attains a t value of 7.802, exceeding the critical t-table value of 1.992, with a significance value of 0.0005, smaller than 0.05. These findings indicate a positive and significant relationship between BMC knowledge and entrepreneurial aspirations among young individuals in Jabodetabek. Entrepreneurial knowledge through BMC has a positive and significant impact on entrepreneurial interest. Therefore, enhancing entrepreneurial knowledge acquired through BMC has the potential to increase entrepreneurial interest among the younger generation.

Keywords: BMC knowledge, business model canvas, young generation, entrepreneurial interest

The Moderating Role of Generation Differences Determinant Factors of Sustainable Apparel Behavior Intention

Adinda Diandri Putri, Alversia Yeshika — Mon, 15 Jan 2024 14:41:50 +0700

Consumer awareness of the negative impacts of fast fashion has driven a shift towards sustainable apparel. This study aims to understand the determinants of consumer intention to engage in sustainable buying behavior. A conceptual model is developed to examine the relationship between internal factors (consumer characteristics such as shopping value, sustainability consciousness, perceived consumer effectiveness, and environmental knowledge) and external factors (advertising perspective focusing on sustainable clothing product criteria) that influence clothing consumption intention across different generations. An online survey was conducted with 150 X Generation, 150 Y Generation, and 150 Z Generation consumers in Indonesia. Data analysis using Partial Least Square-Structural Equation Modeling (PLS-SEM) revealed that various consumer characteristics and marketing perspectives positively impact sustainable clothing consumption intention. Notably, significant disparities were found in consumer characteristics and marketing perspectives across generational cohorts. These findings offer valuable recommendations for fashion industry practitioners to develop targeted marketing strategies considering sustainability issues, aiming to increase consumer trust and address current and future crises related to the environment and social aspects.

Keywords: generation cohorts, moderating variable, consumers sustainability, behavioral intention, sustainable apparel products

Investigating Social Media Influencers’ Credibility and Religiosity, and The Moderating Role of Hedonic Value on Purchase Intention of Modest Fashion Brands

Farahdiba Arianti, Triana Rahajeng Hadiprawoto — Mon, 15 Jan 2024 14:44:55 +0700

In recent years, modest fashion has grown significantly in Indonesia. Since the pandemic happened in 2020, some well-known modest fashion brands in Indonesia have started to change their focus from offline to online sales, using Instagram as one of the strategies. As a result, the role of social media influencers (SMI) in marketing strategies is expanding. This study's objective is to investigate experimentally how SMI can help brands in creating brand attitude and thus improve purchase intention. Building upon naïve theory, consumer socialization theory, and market signalling theory, this study wants to analyze the mediating role of perceived credibility and religiosity of SMI on modest fashion brands in Indonesia, as well as the moderating effects of hedonic value on the product. This research utilized 246 respondents who are active female Instagram users and used a single cross-sectional quantitative methodology. The data was processed using AMOS 24 with the SEM method. This research offers empirical evidence on the mediating effect of expertise, goodwill, trustworthiness, and religiosity between SMI power and brand attitude. Furthermore, the result of this study also shows that the influence of brand attitude on purchase intention is moderated by the hedonic value of the products.

Keywords: social media influencer, modest fashion, perceived credibility, brand attitude, purchase intention

The Effect of Tiktok Social Media Influencer, Brand Image, and Lifestyle on Purchase Intention of Local Skincare Products

Komala Sari, Ujang Sumarwan, Jono M. Munandar — Mon, 15 Jan 2024 14:47:36 +0700

This study aims to answer three main objectives. The first is to find out the effectiveness of Tiktok social media influencer endorsements in advertising local skincare products on Tiktok, the influence of Tiktok social media influencers, brand image, and lifestyle on the purchase intention of local skincare products, and managerial implications that can be applied to the local skincare industry. This research was conducted in September and October 2022. The data used in this study came from a questionnaire survey with a Likert scale submitted via a Google form and conducted in Indonesian. Purposive sampling is the selection technique (respondents) used. SEM-PLS is used to process and evaluate data. The survey consisted of 250 respondents, and the findings indicated that each element had a large impact on respondents' intention to purchase local skincare. This research shares an overview and insight that skincare manufacturers can leverage influencer endorsement by using influencers who match the product category they advertise, namely skincare, have good knowledge, an attractive personality, and a positive image.

Keywords: brand image, influencer, lifestyle, purchase intention, tiktok social media

The Creation of Community-Based Enterprise in Indonesian Return Migrant Workers: The Role of Internal and External Factors

Annida Mardhotillah, Tubagus Furqon Sofhani — Mon, 15 Jan 2024 14:50:13 +0700

Entrepreneurship is one of the strategies in economic reintegration programs for Indonesian Return Migrant Workers when their employment contracts end and return to their homes. This study aimed to find out how successful the creation process of community-based enterprise is in the Indonesian return migrant workers community and to analyze the role of internal and external factors that influence its success. This study uses a qualitative method and took a case study on the Sahabat Bersama Cooperative as a community-based enterprise created by the Migrant Workers Family Community or Komunitas Keluarga Buruh Migran in Karawang Regency. Data was collected by using observation, semi-structured interviews, literature study, and documentation. This study uses the qualitative data analysis technique that consists of data condensation, data display, and conclusion drawing/verification. Results show that in the dynamics of the community-based enterprise creation process, internal factors, namely social capital and leadership played an important role in encouraging community participation in community-based entrepreneurial activities. In addition, external factors, namely institutional support systems from the public and private sectors played an important role in the cooperative's business development. The results of this study have implications for the importance of collaboration among several stakeholders involved in the economic empowerment programs for Indonesian Return Migrant Workers. Collaboration is needed between several related government agencies and the importance of the private sector's involvement in the success of community entrepreneurship activities to survive in the long term.

Keywords: community-based enterprise, return migrant workers, social capital, leadership, institutional support system

The The Effect of E-Service Quality Through Customer Satisfaction and Customer Trust on Customer Loyalty of Klikindomaret Users

Dayinta Fitriani Agritika, Hartoyo, Budi Suharjo — Mon, 15 Jan 2024 14:53:40 +0700

A change in consumer behavior that increasingly uses digital systems in shopping encourages companies to implement an omnichannel sales system, as well as Indomaret. Meanwhile, the increasing number of retailers adopting the online system will lead to the emergence of competition between sellers, so customer loyalty has an important role. In running a business online, service quality is known to influence customer satisfaction and customer shopping behavior. This study aims to analyze the effect of e-service quality on customer loyalty in using Klik Indomaret. This research was conducted on 350 respondents who had used Klik Indomaret for the last six months and were domiciled in Jabodetabek. Data was collected using a snowball sampling technique with a questionnaire distributed online. The method used in this research is structural equation modeling (SEM). The results of the study show that e-service quality has a significant direct effect on customer satisfaction and trust. Furthermore, customer satisfaction also has a significant direct effect on customer trust. Increasing customer satisfaction and trust will also increase customer loyalty in shopping through Klik Indomaret. Managerial implications that can be applied by companies to increase customer loyalty include improving KlikIndomaret's e-service quality so that customer satisfaction and trust in e-commerce increase. In addition, the majority of KlikIndomaret's customers are Generation Z and millennials, so information and promotions will be delivered more effectively through message services and social media by using digital marketing.

Keywords: customer loyalty, customer satisfaction, customer trust, e-service quality, SEM

The Impact of Customer Satisfaction on Loyalty of GoTo: The Application of Technology Adoption Model (TAM)

Marsha Rachmanda Putri, Atik Aprianingsih — Mon, 15 Jan 2024 14:58:00 +0700

The rise of digitalization has shifted consumers to do activities online including purchasing or ordering transportation online. The habit of relying on the internet and using applications to do transactions gives massive benefits to e-commerce and ride-hailing companies to the extent they become unicorn business level for startups. Taken from Indonesia's case, Gojek and Tokopedia is a product of e-commerce in the field of multi-service technology and digital payment. Within the merged, this study is to investigate the Technology adoption model (TAM) with the two fundamental variables of perceived ease of use (EOU) and perceived usefulness (PU). Enhancing the examination, perceived privacy security (PPS) is tested along with TAM to examine customer satisfaction. This research was empirically analyzed with SEM-PLS as its statistical analysis. This research was conducted in Indonesia, in the mid of the year of 2022. Questionnaires are distributed as the survey, by having GoTo users as the population. Our findings show that perceived ease of use and perceived usefulness are positively significant on consumer satisfaction. Contrary to the findings in previous research, in the Indonesian context, perceived privacy security has less impact on consumer satisfaction. This research objective is to generate more sustainable e-commerce users through the use of digital loyalty programs. Insights for the managerial in e-commerce marketing are discussed.

Keywords: consumer satisfaction, loyalty program, technology acceptance model, e-commerce

Sustainable Apparel Product Purchase Decisions on Indonesian Gen Z and Millennial Women Consumers Using Theory of Planned Behaviour

Aulia Anggriani, Arief Daryanto, Zenal Asikin — Mon, 15 Jan 2024 15:01:19 +0700

Sustainable and fast fashion brands compete to provide diverse choices for consumers. This study aims to identify characteristics of Indonesian Gen Z and millennial women consumers of sustainable apparel, analyze the influence of product attributes and marketing factors on their purchasing decisions, and examine the impact of individual and social factors using the theory of planned behavior. The target population is Instagram followers of the sustainable clothing official store who meet the criteria. The questionnaire was created using Google Forms and distributed through Instagram Direct Message. Seventy-seven willing respondents were obtained. Data analysis was carried out using the SEM-PLS method and descriptive analysis. Social norms, subjective norms, and individual behavior control factors significantly influence purchase intention and purchase decisions. However, sustainable clothing product attributes and marketing factors have a positive but insignificant impact on purchase intention and purchase decisions. Individual attitude factors weakly and insignificantly influence purchase intention and purchase decisions. Purchase intention, on the other hand, significantly influences purchase decisions. Five managerial implications are suggested: consumer segmentation, consumer-involved marketing strategies, collaboration with offline stores, enhancing sustainable product attributes, and improving the marketing of sustainable clothing products.

Keywords: product attributes and marketing, purchase decision, SEM-PLS, sustainable apparel product, theory of planned behavior