DETERMINANTS OF ONLINE SHOPPING IN MANADO

Abstract

Retailers utilize online media to reach more potential customers. Internet connects the retailer and customers without any geographic location boundaries. Internet growth has a positive impact for business world. There is a new shopping method in non-store shopping as people can buy products or services without having to travel to the outlets like traditional retail does. With the increase of online retailers on internet world, online shopping became popular. The objective of this research is to know the factors that drive people in Manado to purchase online. Theories supporting of research are online shopping and its factors. Population of this research is people in Manado who ever made online purchasing with sample as many as 100 respondents. Confirmatory factor analyze were used to analyze the twenty variables in this research. The results and conclusions are from twenty variables observed, sixteen variables form six factors that drive people to shop online. Those factors are service quality, perceived security, shopping intention, relative advantage, brick and click, and internet knowledge. There are four variables that do not significantly influence shoppers to shop online, namely: payment option, web design, research, and providing good information.

Keywords: online shopping