Impact of utilitarian value and hedonic value on purchase in online store in Indonesia

Nowadays, Indonesia shopping patterns have significantly changed. E-commerce continues to grow rapidly as online shopping has become increasingly attractive. Online shopping saves time and offers convenience. This study was conducted in order to assess the impact of utilitarian and hedonic values on purchasing from online stores in Indonesia. The focus of the assessment was on five dimensions of hedonism and utilitarianism, which are: usefulness, enjoyment, ease of use, trustworthiness, and distribution channel (settlement). A total of 484 respondents were randomly asked to be participants. A questionnaire was the research instrument used to survey the participants for data gathering. The data was then analyzed using Structural Equation Modeling (SEM). Among the indicators tested, it was found that usefulness, enjoyment, ease of use, and distribution channel impacted hedonic values and utilitarian values significantly. Trustworthiness was the dimension that was not significant. For this study, the hypothesis was made that usefulness and enjoyment positively impacted Research, Society and Development, v. 9, n.10, e1159108305, 2020 (CC BY 4.0) | ISSN 2525-3409 | DOI: http://dx.doi.org/10.33448/rsd-v9i10.8305 2 impulsiveness. It can be concluded that whether due to utilitarian, hedonic, or impulsive motives, it will not be a problem. Indonesian shoppers will make purchases thru online shopping even if they have different motivations and purposes.


Introduction
Nowadays, Indonesia shopping pattern has significantly changed. In recent years, Ecommerce continues to grow rapidly. This is cause by the development of information technology and high number of Indonesian population. The increase of e-commerce transaction can cause by the increase of Smartphone user. Compared to another country, about 50% of Indonesian has either Smartphone or tablet. By an affordable price around $72-$150 people can easily buy new Smartphone with good specification. The large amount of Smartphone owner is related to the amount of online penetration in Indonesia. Online store in Indonesia have rapidly changed due to heavy market structure and consumer shopping pattern.
Main reason why people tend to choose online shopping is because they do not need to go outside or direct shopping. The increase of online shopping becomes more attractive by penetration in modern times. It saves more time and offers convenience (Alba et al., 1997) reduces the costs which otherwise would have been occurred on searching the stuff offers a cheaper price than brick-and-mortar store and constantly being perceived as secured for online transactions, apart from reduced cost of online due to mass diffusion.
Previous study describes consumers as either "problem solvers" or in terms of consumers seeking "fun, fantasy, arousal, sensory stimulation, and enjoyment (Hirschman & Holbrook, 1982). This dichotomy has been represented in retail context by the themes of shopping as work versus the festive more enjoyable perspective on shopping as fun. Clearly many motivations exist as shopping goals (Westbrook & Black, 1985). In Contrast, utilitarian is concerned with purchasing products in an efficient and manner to achieve their goals with minimum of irritation. In contrast, a consumer noted, "I enjoy looking around and imagining Development, v. 9, n.10, e1159108305, 2020 (CC BY 4.0) | ISSN 2525-3409 | DOI: http://dx.doi.org/10.33448/rsd-v9i10.8305 4 what one day, I would actually have money to buy, shopping is an adventure. This "adventure" reflects shopping's potential entertainment and the enjoyment resulting from the fun and play arising from the experience versus the achievement of any perspectives end goal (Hirschman & Holbrook, 1982).
Naturally, people are motivated to enjoy themselves. However, having fun also raises such issues as guilt and need for justification. Therefore, people more likely consume hedonic stuffs when the decision context flexibly allows them to justify the consumption (Okada, 2005). This study examines how hedonic versus utilitarian can be consisted of various type purchase situations, depending on the decision context. Hedonism and utilitarianism are not necessarily two points of a dimensional scale (Voss, Spangenberg, & Grohmann, 2003). Different products can be high or low by hedonic and utilitarian attributes (Crowley, Spangenberg, & Hughes, 1992). This research takes a more holistic approach and conceptualizes hedonism and utilitarianism as summary constructs.
Based on the background above, this study aim to examine various factors that affect consumer purchase in online store and how the factors affect both of utilitarian and hedonic dimensions, especially from the image of online store. By gaining online and offline survey in Indonesia with various background of citizen, this study tried to find out which attributes consider as the most important for utilitarian and hedonic value of online shopping process.

1) Usefulness
Usefulness determines individual behavioral intention to use an information system (IS), which has been linked to subsequent behavior (F. D. Davis, Bagozzi, & Warshaw, 1989;Sheppard, Hartwick, & Warshaw, 1988) suggests that individuals accept information technology if they believe in positive performance. Moreover, Davis, Wang, & Lindridge (2008) asserted that "whether consumers prefer to use or not an application to the extent they believe it will help them to perform their job better". This indicates a positive relationship between usefulness and online store purchase in technology adoption settings. Specifically, usefulness in this setting describes how well an online store provides useful information to an online shopper and how this facilitates online transactions.

2) Enjoyment
Many hedonic consumption activities, such as shopping at mall, taking vacation, eating at restaurant, etc., are usually shared with others. This leads to the question of how is the feeling of sharing a hedonic activity (versus experiencing it alone) influences enjoyment from it. Enjoyment means that an online shopper perceives fun, pleasure and attractiveness in online shopping (M. Y. Chen & Teng, 2013).
This satisfaction can be expressed in terms of "feeling of joy, elation, pleasure" and that associated with individual's act in purchasing through online shopping. In South East Asia, it is found that enjoyment have a positive impact on online shopping users in Singapore.
Hence, this study further expects that: H3: There is a positive influence of enjoyment on hedonic value H4: There is a positive influence of enjoyment on impulsiveness

3) Ease of use
Ease-of-use defined as the extent which an online shopper perceives the website as easy to use, and need minimum amount of effort (i.e., time and energy) is necessary to learn the website (M. Y. Chen & Teng, 2013). In other words, these barriers reduces the perception on ease of use of online shopping, therein, allowing online shopper to develop negative attitude. In turn, this leads to online shopper's unwillingness to engage by online shopping.
H5: There is a positive influence of ease of use on utilitarian value H6: There is a positive influence of ease of use on hedonic value

4) Trustworthy
Trustworthy is the extent to which buyers believe that the selling organization is honest (Doney, Cannon, & Mullen, 1998). Trustworthy is a valued asset and sellers usually tried to avoid getting a bad trust issue. It is very important for customer to assure their personal data are safe.

5) Distribution Channel (settlement)
The image of settlement performance has been defined as a choice in distributing channel options, accuracy of distribution, and speed of distribution for the products and services offered through online store. Outstanding settlement performance indicates the ability of an online store to meet its obligations for individual transactions (Culnan & Armstrong, 1999).
H9: There is a positive influence of Distribution Channel (settlement) on utilitarian value H10: There is a positive influence of Distribution Channel (settlement) on hedonic value

6) Utilitarian and Hedonic Value
When consumer consider the perceived value consumers in the online shopping, according to Chang & Tseng, consumers will perceive two types of value in online shopping.
First is utilitarian value, which is an overall assessment of functional benefits and sacrifices (Overby & Lee, 2006). Utilitarian value is related to a consumer's perception about whether a purchase task is deliberant and efficient or whether a purchase fulfills the customer's needs (Z. Chen & Dubinsky, 2003).
Second is hedonic value, which is an overall assessment of experiential benefits and sacrifices (Overby & Lee, 2006) and focuses on the entertaining or emotional benefits the online shop brings (Forsythe, Liu, Shannon, & Gardner, 2006). H11: Utilitarian value positively gives impact to online purchase H12: Hedonic value positively gives impact to online purchase Both utilitarian and hedonic value influence behavioral intentions in form of customer share (Z. Chen & Dubinsky, 2003). (Overby & Lee, 2006) and (Childers, Carr, Peck, & Carson, 2001) are confirmed that both of utilitarian and hedonic values influence consumer preference.
H14: Impulsiveness positively gives impact to online purchase

Research Methodology
This study uses a descriptive research design selection which needs the description of respondents, research instruments, data collection procedure and statistical treatment used.
This study was conducted in order to asses' the impact of utilitarian value and hedonic value on purchasing by online store in Indonesia.
There is a questionnaire include a demographic questions, then asked "have the participants been doing online shopping?" if the participant never did online shopping, then the questionnaire will be closed and they cannot continue to the main question. By using Structural Equation Modeling (SEM) which is commonly accepted as a powerful technique for capturing and explaining multifaceted relationships in social science. SEM is considered as second-generation instrument for data analysis. It is a mixed methodology which consists of confirmatory factor analysis, regression, and path analysis.
For this study, the survey-questionnaire instruments used to achieve the main objective of study. Questionnaire was distributed among random Indonesian people life in Korean without any exceptions of age, income, etc.

Indonesian Buying Behavior
According to (Hanny, 2018) the number of online shopping purchase and sales has significantly increase in Indonesia; more people tend to do online shopping compared to previous year. Top three reasons they do online shopping are because cheap price, trusted seller, and free shipping (The Asianparent, 2017).
Due to the flexibility of online shopping in consumer, unlike direct shopping by market or shopping center (brick and mortar stores) that has open and close times, online shopping can be done anytime. Consumer can enjoy their extra time and save more time (detikInet, 2014 ). Another reason why people tend to do online shopping is because the crazy traffic jam in Indonesia, it obtained more time to go to department store (Aron, 2017). Based on the Table 1 World Bank data Indonesia, GDP has significantly increase in 2016 this also shown that income of Indonesian people has been rapidly increased. Due to high income, consumption will rise up. If the consumption increases, penetration rate of online shopping will getting higher. Governor of Bank Indonesia Agus Martowardojo explains, the potential of digital economy is very high. Currently, the numbers of online shoppers in Indonesia are around 143 million people and this increase number getting higher each year.

Indonesia Demographic
The demographic of online shopper have significantly increased since the number of population is large about 2.62 billion people. This population include as potential customer.
Based on Asosiasi Penyelenggara Jasa Online Indonesia (APJOI) more than 50% or around Indonesia are significantly increase. Development, v. 9, n.10, e1159108305, 2020 (CC BY 4.0) | ISSN 2525-3409 | DOI: http://dx.doi.org/10.33448/rsd-v9i10.8305 Penetration rate and aggressiveness of e-commerce user consider as proportional to the number of online users in Indonesia (Iskandar, 2018). Impact of online is not just use to looking for information but also developing business field. Nowadays, teenager in Indonesia or usually called as millennial generation and the other age generation that uses online shopping. Central Bureau of Statistics (BPS) counting on economic growth of Indonesia at first quartile of 2017 contains around 5,01%. Economic growth of this first quartile based on year by year of several sectors, one of the sector is communications and information which has increase by 9,01%. It is happen because the increase of online user and online transactions.
Indonesian citizen has been changed their shopping behavior especially on shopping patterns, a lot of Y generation prefer to do online shopping. And it has made e-commerce or online shopping sales increase. However, most of older generation (citizen over 50 years old) citizens still use offline store (Rachman, 2017).

Online Shopping Day HARBOLNAS
As the Online shopping in Indonesia has been increased, there is also the celebration of National Online Shopping Day or in Indonesia called HARBOLNAS (an abbreviation of the Indonesia phrase Hari Belanja Online Nasional), it is held annually, every 12 th December.

Questionnaire Distribution
In the Questionnaire Distribution, the result of the descriptive statistical analysis is below:  Hedonic values are significantly giving positive influence to impulsiveness.
Usefulness variable also give positive impact to impulsiveness. Between hedonic value and utilitarian value in this study, the result is utilitarian value positively give impact to Online Store Purchase.

Conclusion
Hypothesis of usefulness, enjoyment and ease of use give impact to hedonic value are significantly accepted. Due to, consumers motivated by hedonic values, the experience itself is important. Hedonic values can include a desire for entertainment and escapism (Babin, Darden, & Griffin, 1994;Childers et al., 2001) or the wish to find a good deal and enjoyment of hunt for a good bargain. This motivation positively influences consumers' attitudes toward online shopping and virtual shopping technology. Based on the research above, it can be concluded that most of Indonesian uses online shopping as they feel it useful, enjoy and feel easy to operate the online shopping and they will motivate to shopping especially in hedonic stuffs. From demographic part mostly user of online shopping are woman it is make sense that 3 of variables support hedonic value because normally woman likes to shop in uncontrolled way.
Hypothesis of usefulness give positive impact to utilitarian value are significantly accept. Among all of indicators which tested to utilitarian value just usefulness that prove, it give impact to utilitarian value. Useful information provides positive value to customers which increase customer intentions to purchase. There is a positive relationship between usefulness as one of utilitarian value indicator (M. Y. Chen & Teng, 2013). Also Indonesian which gets useful benefits from using online shop tends to buy more stuff especially utilitarian stuffs.
Hedonic values positively giving an impact to impulsiveness and those hypotheses are significantly accepted. Motivated by hedonism of Indonesian people impulsiveness, they tend to buy stuffs unplanned and sudden, that causes by their desire to shop.
Especially when Harbolnas (Indonesia National Online Shopping Day) held, people will buy luxurious stuffs without any plan before. They just interest with some promotions and small discount price or free shipping promotions. They will purchase a lot of thing without any further thinking. Utilitarian value, Hedonic value and Impulsiveness give impact to purchase.
Based on this study it can be concluded that by utilitarian, hedonic or impulsiveness motive it will not be a problem. Indonesian shoppers will doing purchase thru online shopping even they have different motivation and purpose. Among utilitarian, hedonic and impulsiveness are positively give impact to online shopping in Indonesia.