The Influence of Goods and Price Variety on Students’ Interest in Purchasing Shopee Products Online

The Influence of Goods and Price Variety on Students’ Interest in Purchasing Shopee Products Online

Nino Nopriandi Saleh
Universitas Krisnadwipayana, Indonesia

DOI: https://dx.doi.org/10.47772/IJRISS.2023.7699

Received: 12 June 2023; Accepted: 22 June 2023; Published: 12 July 2023

ABSTRACT

Consumer interest illustrates their actions and social relations individually or in groups and organizations. They try to assess, obtain, and consume goods through an exchange or purchasing process that starts with a decision-making process to set these actions. The research on this consumer uses quantitative methods. The research data process uses the SPSS program with multiple regression and determination coefficient analyses. The findings show that two variables(goods and price variations) partially and simultaneously influence the students’ interest in purchasing something through Shopee online platform.

Keywords: goods variety, prices, consumer interest

INTRODUCTION

The Covid-19 pandemic has hit the world in the last two years. We have been aware that we must find the simplest ways to meet our daily needs while staying home. Online shopping has become the best solution to buy something without endangering other people to maintain our health protocol. Due to the rapid growth of technology, some companies are now struggling to compete with their “opponents” carefully and responsively in analyzing opportunities, threats, challenges, obstacles, and disruptions. To be a leader in the market, it is necessary to prepare many kinds of goods and competitive prices to consider together. Therefore, this intense competition can become a reference for companies or business players to improve and generate more innovation to bring out their specialty to attract consumer interest. Kotler (2012) explained that product variety means a product mix called choice. Product is the collection of all goods offered and sold by the sellers. Price means the amount of money charged for a product or service or the value consumers exchange to get the benefits of having or using a product or service (Kotler et al., 2007).

The high number of internet users in Indonesia is a great opportunity for many business entities in selling goods using online shopping methods. A survey by the Association of Indonesian Internet Service Providers (APJII) shows that the number of Internet users in Indonesia has increased by 10.12% every year. People mostly use the internet to search for information about services or products. Thus, it will be easier for business players to run online shopping. Using digital processing information and communication technology in conducting business transactions to create, change, and redefine the relationship between sellers and buyers is popularly known as e-commerce with the marketplace model. Marketplace has been the most significant player in Indonesia’s e-commerce business. In selling and buying activities, the marketplace acts as the third party for the transaction between a buyer and a seller.It will receive payment and must maintain the product sent by the seller and forward payment to the seller so that the product can come to the buyer safely.

Internet development runs along with the development of its electrical devices. There has been a 10.12% growth rate of internet users annually. Most internet users use Android and IoS as the most popular operating systems. This is a reason for the many application features created to facilitate community activities. Many online sites also create e-Commerce in the form of Market Place to propose practicality in purchasing activities. Internet users often use applications like Lazada, Olx, Toko Pedia, Shopee, Blibli.com, Matahari Mall, Zalora, blanja.com, and others to smoothen buying and selling activities. There were 171.17 million internet users in Indonesia in 2018. Internet network users are controlled by the millennial generation. The data are published by the Internet Service Providers Association (APJII). The users of Android and IoS devices are rapidly developing in the current era. This phenomenon generates a lot of the latest features.

Table 1 Top e-commerce based on prices I 2020

Source: i.price.co.id, 2021

Table 1describes the Map E-Commerce according to price.co.id. Shopee gets its first position as top E-commerce for consecutive quarters based on rankings in the Play Store and the App Store. Shopee has the most visits every month (93.4 million visitors). Meanwhile, Tokopedia has 86.1 million visitors. These figures show that Shoppe has the most rapid development in the history of Indonesian e-commerce. The Shopee marketplace originates from a neighboring country, Singapore. It has been developed since 2015 and started to expand its market in the Southeast Asian region, including Indonesia. After four years, it successfully occupied the third-largest marketplace in Indonesia. Shoppe’s monthly visits are approximately 74 million. It is because Shopee can smoothly attempt the Indonesian consumers with their creativity with their attractive goods and competitive prices (Alimansyah et al., 2022).

Compared to other e-commerce sites, Shopee is the youngest one and has minimal experience. Its persistence in managing the company makes it a great competitor with the previous ones. The main feature of the Shopee marketplace is the success of selling products in a short time. Its users are not much inferior to other competitors. The leading figure behind the Shoppe marketplace is Chris Feng. He is the founder, the CEO, and one of the best graduates of Singapore University. Product or good variety shows the marketplace completeness. Most consumers tend to choose markets that offer varied and quality products. Explained that the goods’ variety and prices are the most influential factors in attracting consumers(Engel, 2014)(Engel, 2014). It is because they can be crucial in deciding on buying interest for students of the Faculty of Economics of Krisnadwipayana University at Shopee. If the consumers receive and pay much attention to the variety of goods and prices, it can improve their satisfaction and increase their estimates. In short, there is an influence of variations in goods and prices on good consumer interest, and vice versa. That is true the price can push improving purchasing decisions as well as promotion and quality of goods can also encourage an improvement in a consumer’s decision

Therefore, companies must convince consumers to influence their interest in buying Shopee products online. The goods and prices variety influences the students’ interest in the Faculty of Economics, Krisnadwipayana University, in purchasing something. Therefore, the author is interested in examining this influence through the research entitled: “The Influence of Goods and Prices Variety on the Interests of the Students of the Faculty of Economics, University of Krisnadwipayana in Buying Shopee Products Online.”

THEORETICAL FRAMEWORK

Product Variety

Product variations are not something new in the marketing world. This kind of strategy has been used by practitioners in the marketing world in promoting their products. Abdullah and Tantri (2012) defined a product as anything offered to the market to get attention, be purchased, used, or consumed, and can satisfy the consumers’ needs. An item is a special unit within a brand or product line. It is different in size, price, appearance, or other attributes. It is also usually called stock-keeping or product variations, things, or various conditions (Tjiptono, 2008).

Product/Goods Variety Indicator

Some goods variety indicators, according to Kotler and Keller (2016), are:

• Size

Size means a product’s shape, model, and physical structure are seen clearly and are measurable.

• Price

It is a certain amount of money that has an exchange rate to obtain the benefits of owning or using a product or service.

• Appearance

It means something displayed by the product. The display shows the product’s attractiveness seen directly by the consumers. Appearance in product packaging may mean something visible and attractive to consumers to make purchasing decisions for the product. The appearance of the packaging has a design and color suitability to attract the consumers in making a purchasing decision.

Kotler (2012) explained that variety is a product mix orchoice. It shows a collection of all products and goods offered and sold by the sellers. The product mix consists of some product lines, i.e.:

1. Product mix width refers to the number of different product lines sold by the company.
2. Product mix length refers to the total product number in the mix.
3. Product mix depth describes the number of variants offered by each product in the line.
4. Product mix consistency illustrates a close relationship among various product lines in end-use.

According to Tjiptono and Chandra (2012), to increase customer satisfaction, an organization must offer quality products. The term quality meansdifferent interpretations because quality has some levels:

1. Universal (the quality is the same anywhere)
2. Cultural (the quality depends on the cultural value system)
3. Social (the quality formed by socio-economic class, ethnic group, family, and social friends)
4. Personal (the quality depends on the preferences or tastes of each individual)

Price

Price is the amount of money charged for a product or service or the amount of value that consumers exchange to benefit from having or using a product or service (Kotler et al., 2007). The price comes from an agreement between the seller and the buyer in the bargaining process. Price is the value of an item or service measured by a certain amount of money. Based on this agreement, a person or company will be willing to release the goods or services owned to another party (Kotler, 2005). Dharmmesta and Sumarwan (2011) defined price as the amount needed to get a combination of products or services. Loyal customers will also pay attention to the prices set for the products. Deliyanti O (2012) explained that it is an exchange rate equal to money or other goods for the benefits from an item or service for a person or group at a time and place. Price is the only element of the marketing mix that generates revenue, while otherstrigger costs (Kotler, 2005).

Price is one of the most flexible elements of the marketing mix. It can change rapidly, depending on product features and distribution agreements. At the same time, price determination and competition is also key problem for most companies. Some price indicators, according to Kotler(2005), are:

• Affordability

Consumers may have affordable prices set by the companies. Usually, a brand has some types, and its price will be different(from the cheapest to the most expensive).The set prices should attract many consumers to buy the product.

• Price conformity with product quality

Price often acts as a consumer’s quality indicator. They often choose the higher price between two goods because they see a difference in quality. If the price is high, they tend to assume that the quality is also better.

• Price conformity with benefits

Consumers will buy a product if the perceived benefits are greater or equal to what they have spent to get them.

• Price competitiveness

The price offered by a producer or seller must be different and competitive for the same type of product.

            Pricing decisions depend on the company’s policy. They do not only set a single price. They must also create a pricing structure that includes different items in each product line (Kotler et al., 2007). The companies adjust product prices to reflect changes in cost, demand, and changes in buyers and current situations. As the competitive environment changes, they must think deeply to initiate changes and respond to price changes in the market. In general, producers have set goals and objectives to achieve from each policy they take, especially in setting the product price. Clear pricing objectives and targets in each pricing policy will make them easier to conduct decision analysis and evaluation. Based on the analysis and evaluation results, management will immediately establish new regulations to correct errors or weaknesses in their old policies.

To survive in today’s competitive market, companies must have specific achievable and measurable pricing goals. Before the price is set, the manager must determine the purpose of the price setting. According to Gitosudarmo (2014), there are some specific purposes for setting prices, namely:

1. Achieving the target return on investment or the level of net sales
2. Maximizing profits
3. A medium of competition for similar competitors
4. Balancing the price
5. As a determinant of market share, setting prices can estimate the increase or decrease in sales

            According to Tjiptono (2008), the pricing method has four categories, namely:

1. Demand-based determination method; this method emphasizes some influential factors for the customers’ tastes and references rather than other aspectslike costs, profits, and competition. Customers’ demands have different considerations, including:
2. Customers’ ability to purchase (purchasing power)
3. Customers’ willingness to purchase
4. Product’s position in the customer’s lifestyle
5. Is the product a status symbol or just a product?
6. Benefits that the product provides to customers
7. Cost-based method; the aspect is the supply or cost aspect, not the demand. The prices are set based on production and marketing costs plus a certain amount, so they can cover direct costs, overhead costs, and profits.
8. Profit-based method; this method aims to balance income and costs in pricing. This method is based on specific profit volume targets expressed in percentage of sales or investment.
9. Competition-based method; besides cost, demand, or profit considerations, prices can also be set according to what other competitors do. There are four types of competition-based methods:
10. Customary pricing
11. Above, at, or below market pricing
12. Loss leader pricing
13. Sealed bid pricing

Some policies regarding price setting, according to Kotler (2005), are:

1. Discount pricing; the companies usually adjust their base prices to reward customers for reactions like paying bills earlier and volume purchases.
2. Segmented pricing; the companies sell products and services at two or more price levels, even if the price differences are not based on costs.
3. Promotional pricing; the companies can sometimes set their product price lower than the written price and cost.
4. Seller psychological pricing; this method considers the psychological effect of the price, not just economic conditions.
5. Geographical pricing; the seller must consider the transportation costs from the company to the buyers. This policy concerns some vital aspects, namely whether the buyer bears the entire transportation cost, the seller pays the whole, and whether both parties cover the costs collectively.

Consumers’ interest

Consumers’ buying interest is an effective response or process of feeling or liking a product but has not decided to buy (Kotler, 2005). Consumers’ purchasing interest also means actions and social relations carried out by individual consumers, groups, or organizations to assess, obtain, and use goods through an exchange or purchasing process that starts with a decision-making step that set these actions. It also means how likely consumers are attached to the purchase intention. Schiffman and Kanuk (2008) explained that interest is a psychological aspect that considerably influences attitudes and behavior. Consumers’ evaluation of products depends on their knowledge or information about the actual function of the products. Then, the consumers interested in purchasing a product may get influenced by the information they have received. In today’s business world, we often hear many strategies from large and small-scale sellers in attracting prospective consumers to buy their products.

Prospective buyer often uses their instincts or interests before purchasing a product. However, their interest is often contrary to their financial condition. Consumers’ purchasing interest always goes hand in hand with every individual, where no one knows what a consumer wants and expects. Consumer behavior is an understanding that is closely related to purchasing interest. Purchase intention is a stage made by the subject before deciding to buy, and it is a stimulus model. The response (stimulus-response model) heard by the ears, seen by the eyes, and smelled by the nose is the manifestation of the stimulus. It is where marketing stimuli and market environment come together with consumers’ consciousness.

Influential Factors of Consumers’ Purchase Interest

Dharmmesta and Sumarwan (2011) suggested some influential factors for the buying interest related to feelings and emotions. If someone feels happy and satisfied in buying goods or services, it will strengthen his buying interest, but dissatisfaction usually eliminates interest. Lidyawatie (1998) explained some factors that affect interest, namely:

1. Differences in work, meaning that differences in one’s work can resume his interest in the work level he wants to achieve, activities, leisure time, and so on.
2. Socio-economic differences, which means that someone who has a high socioeconomic level can achieve what he wants than those who have a lower socioeconomic level
3. Gender differences, which means that women’s interests are different from men’s in terms of shopping patterns
4. Differences in hobbies, which explain how someone spends his spare time
5. Differences in age, which describe that teenagers, adults, and parents will have different interests in an item

Purchasing Interest Indicators

The purchasing interest indicators, according to Schiffman and Kanuk (2008), are:

1. Interest in finding more information about the product

The consumers will be interested in finding information about products and encouraged to seek more information about them.

2. Considerations for Buying

Consumers should consider deeply before purchasing gathering information, and learning about competing brands and their features.

3. Interest in trying the product

After consumers try to meet their needs and learn about competing brands and their features, they will explore certain benefits from product solutions and evaluate these products. This evaluation is a cognitive-oriented process, which means that the consumers will evaluate a product consciously and rationally so that they are interested in trying it.

4. Desire to buy the product

After growing interest in trying a product, consumers will be curious to know more about the product. Consumers will view attributes as different benefits to satisfy their needs.

Consumers’ Purchasing Interest in Adopting a Product

The consumers’ purchasing interest in adopting a product, according to Rogers quoted by (Kotler, 2005), passes through five stages, namely:

1. Awareness; consumers are aware of the innovation but still lack information about it
2. Interest; consumers are encouraged to seek information about product innovations
3. Evaluation; consumers consider trying the innovation.
4. Trial; consumers try the product innovation to improve their minds on the product value
5. Adoption; consumers decide to use the innovation entirely and regularly

The consumers will try to find information and grow their encouragement to decideif they want to buy the product or not. Purchase intention means the consumers’ tendency to buy a brand or take actions related to purchases measured by their possibility of making purchases (Assael, 2001).

RESEARCH METHODS

This is quantitative research by testing the hypothesis. This research also uses primary and secondary data. The population is the consumers that actively use the Shopee application, namely active students of the Faculty of Economics regular class from 2019 to 2021 at Krisnadwipayana University, Jatiwaringin, East Jakarta. 1536 students are participating in this research. The sampling technique uses a non-probability method. It does not provide equal opportunities for each element or member (Sugiyono, 2021). The accidental sampling method is a sampling technique by taking respondents who are available somewhere according to the research context.

RESULTS AND DISCUSSIONS

Validity and Reliability Tests

The validity-reliability tests aim to examine the research instruments and ensure that the respondents can easily understand the questionnaire and have measurement consistency (Ghozali, 2016). The next analysis uses Reliability Analysis with SPSS Version 22 software. The research findings are valid because the calculated r values are all higher than 0.30. The results are also reliable because the Cronbach alpha coefficient value from the calculation is higher than 0.60

Normality Test

The normality test examines if the data are normally distributed in the regression model. The normality test can go throughsome ways, one of which is using Kolmogorov Smirnov. The normality test results presented in Table 2 show that the significance value or exact Sig (2-tailed) is higher than 0.5(0.082). Thus, it can be concluded that the research data are normally distributed.

Table 2 Normality Test Results

Source: Primary data, 2022

Multicollinearity test

The multicollinearity test aims to check a multicollinearity symptom in the regression equation. If there is a multicollinearity symptom, there will be a correlation among the independent variables. The calculation results show that the tolerance variable for the goods and prices variety is 0.90, and the tolerance value is higher than 0.10.Meanwhile, the VIF value for the variable of goods and price variety is 11.117.It is higher than 0.10, meaning there is no multicollinearity in the research data.

Heteroscedasticity test

The heteroscedasticity test examines whether or not there is a similarity in the variance of the residuals in the regression model. The method is to correlate the absolute residual value with each independent variable. If the probability value results have a significant value > α = 0.05, then the model does not have any heteroscedasticity (Wibowo, 2013). The heteroscedasticity detection uses a scatterplot. If the scatterplot produces points that do not form a pattern and spread above and below zero on the Y axis, then there is no heteroscedasticity. Based on the results, the angles produce points that do not form a pattern and spread above and below zero on the Y-axis, which means there is no heteroscedasticity.

Linearity test

Rxplained that the linearity test functions to find out if there is a linear relationship or not a significant research variable(Priyono, 2016). A linearity test is a requirement in correlation or linear regression analysis. If the significant linearity is lower than 0.05, there is a linear relationship between the independent and the dependent variable (Sugiyono, 2021). The results of the linearity test show that if the significance of the linearity is lower than 0.05, then there is a linear relationship between the independent and dependent variables. It can also mean a linear relationship between the variety of goods and prices. Any changes that occur in one variable will be followed by other variables with parallel values.

Multiple linear regression analysis tests

This method examines the dependent variable with more than one independent variable. In this research, multiple linear regression analysis determines the influence of variations in goods/products and prices on consumer interest. Therefore, there are technical tools used to include the independent and dependent variables in the regression equation model:

1. The constant value (a) has a positive value of 0.0325. This positive sign means that the value is in the same direction between the independent and the dependent variable. It also shows that all the independent variables (goods (x1) and price (x2) variety) are zero percent or do not change. The aggregate value of consumer interest is 0.325.
2. The regression coefficient value for the goods variety (x1) has a positive value of 0.0475. It means this variable increases by 1%, and the aggressiveness of consumer interest value will also increase by 0.0475, assuming the other independent variables are held constant. The positive sign means that it has a unidirectional influence between the independent and dependent variables.
3. The variable regression coefficient value for the price (x2) has a negative value of -0.0831. This indicates that this variable (price) has decreased by 1%. Therefore, the aggressiveness value of the dependent variable (consumers’ interest) will increase by 0.0831, assuming the other independent variables are held constant. The negative sign means that it has a unidirectional effect between the independent and dependent variables.

Table 3 Multiple Linear Regression Analysis Test Results

Source: Primary data, 2022
Hypothesis testing

The t-test aims to check the extent to which the effect is partial (per variable) between the independent and dependent groups. The test rules are (Siregar, 2017):

• Ho: 𝛽1=no influence
• Hi: 𝛽1 =There is an influence
• If: Sig ≤ 𝖺= 5%, then Ho is rejected, which means there is no significant influence between the independent and dependent variable
• If: Sig>𝖺=5%,then Hi is accepted, which means that there is a significant influence between the independent and dependent variable

The results of the t-test show a sig value of 0.014. The results of the hypothesis test of the variable x1 (goods variety) have a significance value lower than 0.05. Therefore, the goods variety positively affects the consumers’ interest (Y). The results of the hypothesis test showed that work motivation (X2) has a significance value of 0.000, or it is lower than 0.05. Therefore, the work motivation variable positively influences consumers’ interest (Y).

X1 and X2 significantly affect Y through a partial test or T-test. This test compares the p-significance of 0.05 as alpha. In this research, the p-sig is lower than 0.05, thus declared significant. Therefore, the hypothesis which states that there is a partial effect between the independent and dependent variables is accepted.

The F-test aims to determine the extent of simultaneous influence (together) between the independent and dependent groups. The test rules are (Siregar, 2017):

• Determining rate 𝖺=5%
• Jikanilai signifikansi ≤ 5%, makavariabeldependent secarabersama -samaberpengaruhpadaindependent.Jika, nilaisignifikasi> 5%, maka variabel dependent secaraber sama-samatidakberpengaruhpadain dependent. If the significance value is ≤ 5%, then the dependent variable jointly affects the independent one. If the significance value is higher than 5%, the dependent variable simultaneously has no effect on the independent one (Wibowo, 2013).
• If the f-count is higher than the f-table, Ho is accepted, and Hi is rejected. It means that together the independent variable does not affect the dependent one.
• If F-count is higher than 𝐹-𝑡𝑎𝑏le, then Ho is rejected, and Hi is accepted. It means that together the independent variable influences the dependent one.

Table 4 F Test Results

Source: Primary data, 2022

Table 4 above presents the results of the F-test explained using a significant level of 5% (0.05). The calculated F-value is 623.559 with a significant value of 0.000. The simultaneous testing of the independent variables (goods variety and prices) on consumers’ interest generates a sig value of 0.000. Therefore, the research hypothesis is accepted, and goods and prices variety simultaneously influences consumers’ interest.

Determination Coefficient Test

The results of data management show that the coefficient of determination (R square) is 0.931. It means that goods variety (X1) and price (X2) contribute 93.1% to consumers’ interest (Y). There is a fairly strong unidirectional relationship between goods variety (X1) and price (X2) with consumers’ interest (Y). Meanwhile, the remaining 6.9% is influenced by other variables beyond this research.

Table 5 Model Summary

Source: Primary data, 2022

CONCLUSIONS AND SUGGESTIONS

The research findings have concluded some following points:

1. The goods variety partially influences the dependent variable (consumers’ interest). This finding is reinforced by the acquisition of a significant value of 0.012 on the t-test. The capital equation regression of the independent variable (goods variety) plays a partial role in the dependent variable (consumers’ interest).
2. The price variable partially influences the dependent one(consumers’ interest). This finding is strengthened by the computational results of the SPSS application. The calculation shows that the significant value of the independent variable (price)is 0.000. It is partially significant in the SPSS application. Therefore, the price can contribute partially to the consumers’ interest.
3. The goods and prices variety has a simultaneous effect on the consumers’ interest. This finding is supported by the results of the SPSS computation. The calculation of the F-test shows that the F-count is 623.559 with a significant value of 0.000 (lower than 0.05).It proves that the research hypothesis is accepted simultaneously.

The findings of this research recommend that companies consider all decisions regarding the variety of goods and prices that can affect consumers’ interests. Increasing the consumers’ trust can be through sorting the goods variety registered in the Shopee online platform. This action can strengthen a more role of the consumers in instilling their interest in shopping or buying products online. There should be also more attention to the price of a product based on the sold goods. The displayed prices displayed must be the same as the ones because another indicator (price affordability) can influence their intention to buy something. The producers should increase the prices through Shopee programs like discounts to attract more consumers. Future researchers are also suggested to develop the research model using different regression equations and data sampling that can influence the consumers’ interest.

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