Does Language Matter? Purchase Intention of Indonesian Students toward Online Shopping in Taiwan

Invention Journal of Research Technology in Engineering & Management (IJRTEM) ISSN: 2455-3689 www.Ijrtem. com Volume 3 Issue 4 ǁ May –June 2019 ǁ PP 30-35

Does Language Matter? Purchase Intention of Indonesian Students toward Online Shopping in Taiwan Fachri Yafelli1, Dwiyento Aryo Pangestu2 1 Department of Business Administration, Da-Yeh University, Taiwan (R.O.C) Department of Human Resource and Public Relationship, Da-Yeh University, Taiwan (R.O.C)

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ABSTRACT : The development of technology and information has a significant impact on the development of e-commerce. With all of given features providing perceived usefulness and ease to use, online shopping is in the first place of e-commerce chain. However, not all online shopping website provides language change feature which is very helpful for the foreigners in Taiwan. Hence, the objective of this study is to examine whether language matter on affecting the purchase intention of Indonesian student in Taiwan. Technology Acceptance Model (TAM) was chosen as the main conceptual framework of this study, focusing on perceived usefulness and ease to use. The data of this study was gained from Indonesian students in Taiwan through questionnaires.

Collected data were analyzed using Multiple Linear Regression Model to examine the model fits and hypothesis testing. The results of the research contribute in providing a guideline for Taiwan online shop website companies to attract more International students in Taiwan as customers, especially Indonesian students.

KEYWORDS: Online Shopping, Purchase Intention, Technology Acceptance Model I. INTRODUCTION In the current era of globalization, developments in the field of technology occur rapidly which give a big impact on people's lives. Many activities that were usually done offline have now migrated to online. This change has given rise to new economic activities, new business models and new value propositions [1]. E-commerce is one the form of information technology and communication revolution in the economic field. The powerful concept and process of e-commerce fundamentally change the flow of human life [2]. In this case, online shopping has become popular and also an integral part of the lives of consumers [3]. Laudon and Traver mention that "when we think of e-commerce today, it is related to the Internet". Since the introduction of the Internet, growth in ecommerce has been very fast [4].

However, the rapid development of e-commerce demands online shopping businesses to develop their technology and resources to facilitate customers with useful facilities in order to boost up their customers’ purchase intention. Unfortunately, many websites or online shopping applications in Taiwan still do not provide language change feature from Chinese to another language such as English. This will make it difficult for customers to understand the content and find information of products who are not using Chinese as their main language such as Indonesian students. Therefore, this study attempts to examine whether language is matter on affecting purchase intention among Indonesian students in Taiwan.

II. LITERATURE REVIEW Online Shopping as E-commerce Platform : Electronic Commerce or as we know it as e-commerce boomed during the twentieth century with the development of internet usage. According to Nanehkaran, e-commerce is the interaction between customers and sellers about exchange commercial information in a product or service which inside it is contained a system of communication, data management, and security [2]. Kim said that barriers affecting e-commerce in the market place. Such as limited skill in using technology, lack of awareness, high cost of investment, lack of assurance and confidence in using the e-commerce, cost of maintenance systems, lack of human skills resources and lack of change of e-commerce, the insufficient infrastructure of e-commerce and small space of e-commerce market are highest barriers factors that not able to popularize the e-commerce market [5]. The power of social network would enhance the development of e-commerce in the future [6].Online shopping is electronic commerce which allows customers to buy goods directly from seller over the internet.

Customers can find a product of interest by visiting the retailer website or search engine. Customers also can compare prices from different retailers. The digital environment has a growing effect on the customers’ mind and buying behavior. In an online shopping environment, interactive decision may have an influence on aid customer decision making [7].

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Does Language Matter? Purchase Intention of Indonesian‌ Purchase Intention and Language Matter : Purchase intention promotes more profitable businesses to the industry, particularly when customers are satisfied with the production. Hence, purchase intention has been regarded as one of the most significant sections in the business field [8]. Schiffman and Kanuk describe Purchase intentions as a customer response to purchase the offering. They said customers’ purchase intention can be determined through their responses, feedback, and involvement. Highly involved customers show a high rate of purchase [9]. Akbariyeh define purchase intention as a situation where customer tends to buy a certain product in certain condition [10]. Purchase intention is composed of customers feelings, thoughts, experience and external factors that they considered before making any purchase [11]. Language matter has a significant effect on purchase intention. As a tool for conveying information it was played a very important role in customers purchase intentions. Holmqvist and GrÜnroos argue that language plays a crucial role in service contexts, especially when customers interact with the representative [12]. Online shopping entrepreneurs should provide various language content that can be understood by prospective buyers so that the information they want to convey can be received and attract the attention of potential customers.

Technology Acceptance Model (TAM) : Technology Acceptance Model (TAM) is one of the most influential theory on the acceptance and use of an information system. Actually, this model was derived from Theory of Reasoned Action (TRA) which was developed by Fishbein and Ajzen [13]. TRA was developed to predict the relationship between attitudes and behavior in human actions. this theory postulates that someone will act based on certain behavioral attitudes and intentions to get what is expected from doing the behavior [14]. Then, Davis argues that the use of information technology is based on the existence of perceived usefulness and perceived ease of use [15]. Basically, TAM aims to explain one's acceptance of information technology and the factors that determine a person's attitude towards the use of technology. Davis chose not to maintain subjective norm variables in TAM because he assumes that it had negligible effects on behavioral intentions [15]. According to Sin et al. TAM has not only been used in information system research, but also had been used in other fields.

TAM also proven suitable for measuring to adoption of e-commerce [6].

The perceived usefulness has adapted into the research model because it is defined as a phase where one believes that using a particular information technology system can improve his or her own abilities [16]. Then, Thomas et. al. argues that the benefits of information technology are to be able to help carry out tasks and improve the work performance of these people as they expect. he also said that someone would use information technology if he or she understands the benefits and uses of the technology [17]. The next variable in the research model is perceived ease of use. According to Davis, that perceived ease of use is the degree of people who believes that using information technology can facilitate their work [16]. The frequency of use and interaction between users and that technology information is also able to show ease of use. They would be willing to learn and continue using that technology information if that technology easy to use. This is one of variables in determining the purchase intention [6].

Hypotheses Based on above literature review, the proposed conceptual framework was indicated in Figure 1 and the hypotheses were listed as fellow: H1: The perceived ease to use is positively related to the purchase intention H2: The perceived usefulness is positively related to the purchase intention H3: The perceived ease to use and usefulness is positively related to the purchase intention

Fig. 1 - Proposed conceptual framework

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Does Language Matter? Purchase Intention of Indonesian…

III. METHODOLOGY This study uses quantitative methods, with approaches to empirical studies to collect, analyze, and display data in numerical form. The method of collecting data in this study used questionnaire survey method with 5 Likert scales. The questionnaire divided into 4 sections. The first section is used for gaining demographical data (gender, residence, study degree, and major) from respondents. The second and third section each contain 5 questions related to perceived ease to use and perceived usefulness. Finally, in the last section there are 3 questions used to identify the customer’s likelihood of purchasing. Table 1 shows indicators or items used for the questionnaire.

Table 1 - Measurement Items Construct

Perceived ease to use

Perceived usefulness

Purchase intention

Measurement Items [in term of language] Taiwanese online shopping website is ease to use [in term of language] Learning to operate Taiwanese online shopping website is easy [in term of language] Provided information in Taiwanese online shopping website is clear and easy to understand [in term of language] It is simple to find what I want [in term of language] It simple to get the system to do what I need it to do [in term of language] Purchase online is easy on Taiwanese online shopping website [in term of language] Purchase on Taiwanese online shopping website is fast [in term of language] My performance in searching and purchasing products is not affected by language [in term of language] My effectiveness in searching and purchasing products is not affected by language [in term of language] The content on Taiwanese online shopping website is useful to me I am probably going to buy products on Taiwan online shopping website I am probably going to recommend purchasing through Taiwanese online shopping website to my companions It is likely that I will use Taiwanese online shopping website in the future

Adapted from [18]; [19]; [20]; [21] [18]; [21]; [19] [18]; [19]; [20]; [22]; [21] [22] [19]; [20] [18]; [19] [18]; [21]; [19] [18]; [21]; [20]

[18]; [21]; [20]

[19]; [22]; [20] [5]; [18]; [19]; [23] [5] [24]; [5]; [19]; [23]; [22]; [20]

A causality or relationship model was used in this study to test the hypotheses and regression model analysis was chosen as the analytical method. The gained data was subjected to validity and reliability test before the final analysis was conducted by multiple linear regression.

IV. DATA ANALYSIS AND DISCUSSION Demographic Profile : Total amount of data collected from the online questionnaire is 117 data. Based on the data, the total amount of female student respondents is bigger than male student respondents, respectively 56.4% and 43.6% Most of student respondents live in the middle of Taiwan – Miaoli, Taichung, Changhua, Nantou, Yunlin - with the percentage number of 48.7% The study degree of student respondents mostly in bachelor degree, including student exchange and Chinese overseas program, (56.4%), followed by master degree (32.5%) and doctoral degree (11.1%). The student respondents mainly majoring on Business/Management/Social (36.8%), followed by Science/Engineering (29.9%), Others (24.8%) and Design/Art (8.5%).

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Does Language Matter? Purchase Intention of Indonesian‌ Validity Test: The value of r-table used on validity test is 0.176, with the number of sample (N) = 117. Based on the output shown, all of the instrument items on perceived ease to use (EU), including EU1 (0.885), EU2 (0.853), EU3 (0.888), EU4 (0.831) and EU5 (0.879), produce Pearson correlation value bigger than r-table.

Then, perceived usefulness (U), including U1 (0.798), U2 (0.624), U3 (0.843), U4 (0.838) and U5 (0.841), also produce Pearson correlation value bigger than r-table. Furthermore, purchase intention (PI), including PI1 (0.871), PI2 (0.898), PI3 (0.800), produce Pearson correlation value bigger than r-table. As a result, it can be concluded that all of the instruments/items used in this study are valid.

Table 2 - Result of Validity Test Variable

Item EU1 EU2 EU3 EU4 EU5 U1 U2 U3 U4 U5 PI1 PI2 PI3

Perceived ease to use (EU)

Perceived usefulness (U)

Purchase Intention (PI)

Pearson Correlation .885 .853 .888 .831 .879 .798 .624 .843 .838 .841 .871 .898 .800

r-table

Sig.

Validity

0.176 0.176 0.176 0.176 0.176 0.176 0.176 0.176 0.176 0.176 0.176 0.176 0.176

.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000

Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid

Reliability Test: Based on the result of reliability test, all of the variables, including perceived ease to use (0.918), perceived usefulness (0.848) and purchase intention (0.815), shows Cronbach’s alpha value > 0.6. It can be interpreted that all of the variables on this study are reliable.

Table 3 - Result of Reliability Test Variable Perceived ease to use Perceived usefulness Purchase intention

Reliability .918 .848 .815

Hypotheses Test: Multiple regression was chosen as the technique to analyze the hypotheses (H1, H2, and H3) in this study. The value of t-table used in this study is 1.982. Based on results shown, the p-value of perceived ease to use (p=0.000) is less than the alpha value of 0.05 and t-value (3.755) bigger than t-table. Therefore, perceived ease to use is positively related to the purchase intention. The p-value of perceived usefulness (p=0.000) is also less than the alpha value of 0.05 and t-value (6.121) bigger than t-table. Therefore, perceived usefulness is positively related to the purchase intention. The results of multiple regression analysis show that perceived usefulness (U) has the strongest relationship with purchase intention (PI) with beta coefficient 0.504, followed by the relationship between perceived ease to use (PU) and purchase intention (PI) with beta coefficient 0.309. The result also shows that both independent variables (perceived ease to use and perceived usefulness) simultaneously affect the dependent variable (purchase intention). The change of purchase intention is explained 55.3% by perceived ease to use and perceived usefulness.

Table 4 - Result of Multiple Regression Variable Perceived ease to use Perceived usefulness

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Beta .309 .504

t-value 3.755 6.121

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Significant .000 .000

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Does Language Matter? Purchase Intention of Indonesian…

Variable Perceived ease to use + Perceived usefulness

Table 5 - ANOVA F-value Significant 70.408

.000

R Square .815

V. CONCLUSION In general, this study aims to examine whether language matter on effecting the purchase intention of Indonesian students in Taiwan using Technology Acceptance Model (TAM) framework. The findings confirm that in term of language, the two factors (perceived ease to use and perceived usefulness) are positively related to the purchase intention of Indonesian students in Taiwan. The result support the three hypotheses of this study.The positive influence of perceived usefulness in term of language on purchase intention through Taiwan online shopping among Indonesian students in Taiwan seems to suggest that the more the respondents feel language doesn’t matter on purchasing online, the more likely they will have the intention to purchase through the online shopping website. This might be due to customer’s interaction to the system when they want to buy products through online shopping website [12]. If online shopping website does not provide enough information in the language of that customers understand, customers will tend to choose purchase product directly to brick and mortar shop since they can use body language to ask what they want and bargain for the price. Online shopping website companies who wants to attract foreigner customers can give language change feature on their online shopping website which may lead to higher online purchase intention.

The results also revealed that perceived ease to use in term of language has a significant effect on the respondents’ online purchase intention. If online shopping website is hard to navigate around and complicate as well as it requires much time and effort because of language, it will give difficulties to the customers and make the customers inconvenient. Then they might not use the same online shopping anymore. Therefore, it is important for online shopping website companies to provide information and content in the international language which is English in order to ease foreigners in using the website. It can increase the purchase intention of customers by providing language change feature. In conclusion, this study identified that language matters in term of increasing purchase through online shopping. The findings and discussions on this study can be used as guidelines for online shopping website companies who wants to attract more customers especially foreigners.

Furthermore, there are several recommendations provided for the further studies in this topic. First, future researchers are suggested to be selective in choosing respondents considering that the chosen respondents should be not good at the language used on online shopping website in order to acquire more reliable information.

Second, since browser support language changing feature, it is worthwhile to future researchers to add more factors that affect purchase intention such as attitude.

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