ACKNOWLEDGEMENT. hope this thesis will contribute to any parties that need information about shopping. online in Indonesia. Jakarta, March 2003

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1 ACKNOWLEDGEMENT First of all, I would like to devote my gratefulness to GOD for his blessing and guidance towards my life so that I am able to finish my thesis. This thesis is written to fulfill the requirements for Master of Management in Information System in Bina Nusantara University. Moreover, I also would like to use this opportunity to thank the following people who directly or indirectly contributed to the completion of this thesis. They are: 1. Dr. Edi Abdurahman as my thesis advisor for his guidance, supports, idea and feedback for this thesis. 2. Lecturers and academic staff of Graduate Program in Bina Nusantara University. 3. My class mates in Bina Nusantara University especially in class batch 17 and 18 for their participation filling the questionnaire and also Richard Komara. 4. For all respondents who are willing to share their time filling the questionnaire. 5. My family especially my mother, Jan, Ichwan, Yudi, Desy Noviana for supporting me through the process of making this thesis. The author realized that there is no such thing as a perfect thesis. However, I hope this thesis will contribute to any parties that need information about shopping online in Indonesia. Jakarta, March 2003 Handree Tanoto iv

2 ABSTRACT The rapid changes in the technology environment especially in the Internet commerce has changed people perceptions of the e-commerce application such as shopping online. People believe that shopping online have many weaknesses in many areas. On the other hand, people can not deny that technology becomes a major part of people life. Moreover, the data shows that number of transactions shopping online in Indonesia contributes a little amount of e-commerce application; therefore it is quite interesting to conduct research about user acceptance of shopping online. The objective of this study is mainly revealing customer perceptions when doing shopping online via internet and also on what people perceived about shopping online. There are four main factors that are assumed influencing user acceptance of shopping online, which are System Friendliness, System Reliability, Customer Satisfaction and System Security. In order, to find out the most significant factor that influence user acceptance the research of those factors perception is conducted. The data of this research is collected by using questionnaire and randomly distributed to more than 100 respondents. The result of this study shows that User Acceptance is influenced by system reliability, customer satisfaction and system security. On the other hand, system friendliness is not giving a lot contribution on user acceptance of shopping online. These findings indicates that the company should give more intention on those factors in order to be succeed in implementing store online. In conclusion, by revealing depth in each factor will give the company description of people perceived so the company can improve their performance in shopping online and in return giving the customer guidance of using correct shopping online Keywords: Shopping Online, System friendliness, System Reliability, System Security, Customer Satisfaction, and User Acceptance v

3 TABLE OF CONTENTS Front Page i Statement of Purpose.. ii Supervisor Approval iii ACKNOWLEDGEMENT iv ABSTRACT. v TABLE OF CONTENTS.. vi LIST OF TABLES... ix LIST OF FIGURES xi CHAPTER 1 INTRODUCTION Background Research Problems Objectives and Benefits Scope of the Research. 4 CHAPTER 2 LITERATURE REVIEW Internet E-commerce Classification of E-commerce Application Classification of E-commerce by the nature of the transactions Shopping Online User Acceptance Criteria Customer Satisfaction Criteria Security Concept in the Internet.. 15 CHAPTER 3 RESEARCH METHODOLOGY AND DESIGN Research Method Data Collection Place and Time of the Research.. 18 vi

4 3.1.3 Population and Sample Analysis Method Research Model Research Variables Hypotheses Validity and Reliability Statistical Analysis Multiple Regression Analysis Coefficient of Determination F test t test 28 CHAPTER 4 RESULT AND ANALYSIS Survey Result Descriptive Statistic for Independent Variable Descriptive Statistic for Dependent Variable Descriptive Analysis for Supporting Factors Validity and Reliability Test Validity and Reliability test for User Acceptance Validity and Reliability test for System Friendliness Validity and Reliability test for System Reliability Validity and Reliability test for Customer Satisfaction Validity and Reliability test for System Security Hypothesis test Hypothesis test for User Acceptance Hypothesis test for System Friendliness Hypothesis test for System Reliability Hypothesis test for Customer Satisfaction Hypothesis test for System Security Result and Discussion CHAPTER 5 CONCLUSION AND RECOMMENDATION vii

5 5.1 Conclusion Recommendation Open problem 68 REFERENCE 69 BIBLIOGRAPHY. 71 APPENDIX A: QUESTIONAIRE.. A-1 APPENDIX B: DATA TABULATION. B-1 APPENDIX C: OUTPUT OF SPSS... C-1 CURICULLUM VITAE viii

6 LIST OF TABLES Table 4-1 Summary of Survey Result. 31 Table 4-2 Descriptive Statistic of Independent Variable 31 Table 4-3 Descriptive Statistic for Dependent Variable.. 32 Table 4-4 Age of Respondents Table 4-5 Employment Status. 34 Table 4-6 Expenses of the respondent per month.. 35 Table 4-7 Places of using Internet. 36 Table 4-8 Experience of respondents on using shopping online.. 37 Table 4-9 Reasons of using shopping online. 38 Table 4-10 Reasons of not using shopping online. 39 Table 4-11 The result of Validity and Reliability test for User Acceptance Factor.. 42 Table 4-12 The result of Validity and Reliability test for System Friendliness. 45 Table 4-13 The result of Validity and Reliability test for System Reliability Table 4-14 The result of Validity and Reliability after X 2_4 is deleted.. 48 Table 4-15 The result of Validity and Reliability test for Customer Satisfaction.. 50 Table 4-16 The result of Validity and Reliability test for System Security.. 52 Table 4-17 ANOVA Hypothesis-1 54 Table 4-18 Correlation coefficient, coefficient of determination and R-adjusted Hypothesis Table 4-19 ANOVA Hypothesis-2 56 Table 4-20 ANOVA Hypothesis Table 4-21 ANOVA Hypothesis ix

7 Table 4-22 ANOVA Hypothesis Table 4-23 Summary table of Hypothesis Test. 60 x

8 LIST OF FIGURES Figure 2.1 The Dimension of Electronic Commerce 9 Figure 3.1 Research Model for User Acceptance in Shopping Online Figure 4.1 Percentage of Respondents according their ages. 33 Figure 4.2 Employment Status. 34 Figure 4.3 Expenses Pie Chart. 35 Figure 4.4 Bar Chart for place of using Internet.. 36 Figure 4.5 Experience of using shopping online. 38 Figure 4.6 Bar chart of positive aspect on using shopping online. 39 Figure 4.7 Bar chart of negative aspect on using shopping online 40 xi