Impulsive Purchasing via Online Shopee of the Millennials: A Study

in a Private University in Medan

Adelina Lubis¹, Eka Dewi Setia Tarigan¹, Sari Bulan Tambunan¹, Muslim Wijaya¹

and Chandra Situmeang²

Universitas Medan Area, Medan, Indonesia

Universitas Negeri Medan, Medan, Indonesia

Keywords: Impulsive Purchasing, Online, Shopping’s, Millennials.

Abstract: This study presents a concise understanding of the impulsive purchasing behavior via online Shopee of the

Millennials. Indonesia has entered the Industry 4.0 era that is marked by the evolving of a number of e-

commerce sites and online shopping’s. The evolved online shopping’s directly influences the Millennials’

perspective on market-shopping activities. The Millennials prefer to make online purchasing’s rather than

the conventional ones. In this study, the phenomenon of impulsive purchasing via online Shopee was

quantitatively analyzed using a correlational approach of Pearson Product Moment. The data was taken

from 97 Millennials from a private university in Medan. It was found that the impulsive purchasing of

Millennials was as consequences of lack of purchasing decision, Millennial’s mindset and hedonic shopping

motivation.

1 INTRODUCTION

Millennial Generation or called Generation Y is a

generation that is close to technology. This

generation according to (Hawkins, DI,

Mothersbauhg, DL, 2013) was born between 1977

and 1994. The characteristics of this generation are

daily activities that are inseparable from information

and communication technology, as well as the ease

of internet access that allows for a variety of

information. Millennial generation criteria are found

in students at Medan City Private University.

The average student is born in the generation Y

period. This is also supported by research conducted

by (“APJII (Asosiasi Penyelenggara Jasa Internet

Indonesia,” 2016) which shows the profile of internet

users in Indonesia dominated by users aged 18-25 by

49%. With the sophistication of the technology, one

can also conduct goods purchase transactions without

having to meet directly with the seller or through a

conventional store. The online application that is

often used by the millennial generation is now the

Shopee application. This online purchase is

increasingly enjoyed because it has several

conveniences, namely unlimited space and time,

convenience and the best available range of product

choices (Brynjolfsson & Smith, 2000). Often we meet

consumers who buy goods without being planned or

known as impulsive buying. Impulsive buying is an

unplanned and sudden purchase that is driven by

cognitive and affective (Rookh, 1987) An impulsive

person has a very strong urge to buy goods. But in

making a purchase, consumers do not always meet

their needs. (Holbrook, M.B, Hirschman, 1982)

consumers seek fantasy and pleasure. In line with

(Verplanken, B, Herabadi, A.G.Perry, J.A, Silvera,

2005) buyers who impulsively buy goods because of

the factors of pleasure and enjoyment are not merely

functional considerations.

Therefore, this study wants to analyze the

relationship of inclusive behavior to online

purchasing decisions at Shopee in the millennial

generation at the Medan City Private University.

2 THEORICAL FRAMEWORK

2.1 Impulsive Purchases

According to (Kacen, J, Jacqueline, Julie Anne,

2002), impulse buying is interpreted as an act of

purchase carried out without prior consideration.

922

Lubis, A., Tarigan, E., Tambunan, S., Wijaya, M. and Situmeang, C.

Impulsive Purchasing via Online Shopee of the Millennials: A Study in a Private University in Medan.

DOI: 10.5220/0009511409220925

In Proceedings of the 1st Unimed International Conference on Economics Education and Social Science (UNICEES 2018), pages 922-925

ISBN: 978-989-758-432-9

Impulsive buying is also defined as a planless

purchase characterized by (1) relatively fast decision

making (2) subjective prejudice in the desire to

immediately own an item (Rookh, 1987). Impulsive

buying is also excessive shopping behavior,

unplanned and unbearable compared to planned

shopping behavior. Consumers who are very

impotent tend not to think about something, are

easily attracted to something, and want immediate

satisfaction. Such consumers often do not pay too

much attention to the negative consequences that

might arise due to the actions they take.

2.1.1 Characteristics of Impulsive Purchases

(Kacen, J, Jacqueline, Julie Anne, 2002) also states

that impulse buying has a number of characteristics

as follows:

1. There is an excessive feeling of interest in the

product being sold

2. There is a feeling to immediately have the

product sold

3. Ignoring all the consequences of purchasing a

product

4. There is a feeling of satisfaction

5. The existence of a conflict that occurs between

control and passion in the person.

6. Customers who often make impulsive purchases

often have very low attention to the potential for

negative impacts as a result of their actions

2.3 Buying Decision

According to (Kotler, 2005) "Purchasing decisions

are a stage where consumers have a choice and are

ready to make a purchase or exchange between

money and promises to pay with ownership rights or

use of an item or service".

(Susanto, 2012) also explained that decision

making behavior by consumers to purchase products

or services begins with an awareness of fulfilling

needs or desires and realizes that there are further

problems, then consumers will take several stages

which eventually arrive at the post-purchase

evaluation stage.

According to (Dewi, Magdalena, & Dhiana,

2015) purchase decision is a process of making

purchasing decisions that includes determining what

will be purchased or not making a purchase and the

decision is obtained from previous activities. From

several definitions of decision making that have

been described above, it can be concluded that

purchasing decisions are a decision-making process

for purchases that will determine whether or not the

purchase is purchased which begins with an

awareness of fulfillment or desire.

Factors Affecting Purchasing Decisions :

(Kotler, 2005) states that consumer purchasing

behavior is influenced by the following factors:

a. Cultural Factor.

Cultural factors have the most extensive and deepest

influence. Culture, sub-culture, and social class are

very important for buying behavior. Culture is the

most basic determinant of desires and behavior. Sub-

cultures include nationality, religion, racial groups,

and geographical regions. Whereas social class is a

relatively homogeneous and permanent division of

society, which is arranged hierarchically and whose

members adhere to similar values, interests and

behaviors. Social classes not only reflect income, but

also other indicators such as employment, education,

and the area of residence.

b. Social Factors.

In addition to cultural factors, consumer behavior is

influenced by social factors such as reference

groups, families, and the role and social status of the

community.

c. Personal Factor.

Buyer decisions are also influenced by personal

characteristics. These characteristics include the age

and stages of the life cycle, work, economic

conditions, lifestyle, and personality and self-

concept of the buyer.

d. Psychological Factors.

The choice of one's purchase is influenced by four

main psychological factors. These factors consist of

motivation, perception, learning, and beliefs and

attitudes. The need will be a motive if he is

encouraged to reach the stage of adequate intensity.

Motive is an adequate need to encourage someone to

act. Perception is a process used by individuals to

choose, organize, and interpret information input to

create a picture of the world that has meaning.

Perception can vary greatly between individuals

with one another who experience the same reality.

3 METHODOLOGY

The type of research used in this study is

explanatory research with a quantitative approach.

The research location is at Private Universities in

Medan City, the reason for choosing research

locations in this study is because consumers who

make purchases at the Shoopee online application

Impulsive Purchasing via Online Shopee of the Millennials: A Study in a Private University in Medan

923

are consumers aged 18-25 years. Respondents in this

study were 97 respondents, determining the number

of respondents using Slovin formula. The sampling

technique uses a purposive sampling technique with

the criteria of respondents, namely consumers who

have made a purchase at least 3 times in the Shoopee

Application. by using a Likert scale. This study uses

descriptive analysis techniques, Pearson Product

Moment correlation analysis.

4 RESULT AND DISCUSSION

The research hypothesis is that there is a significant

relationship between inclusive behavior and online

purchasing decisions at shopee in the millennial

generation at the Medan city private university.

Hypothesis testing using SPSS 20.0, the results of

testing this hypothesis can be seen in the following

table.

Table 1: Results of Hypothesis Testing.

Correlation

Model

Correlation

Coefficient

(r)

R table

Determinatio

n Coefisien

(r²)

t count

Sig

0,482

0,1840

0,639

4,914

0,00

The results of the analysis show that inclusive

behavior is related to online purchasing decisions at

shopee in the millennial generation in the private

university city of Medan. this is indicated by the

value r = 0.482, p = 0.000, so the hypothesis is

accepted where there is a relationship between

inclusive behavior towards online purchasing

decisions at shopee in the millennial generation in

the private university city of Medan.

The results of the study can be described as

follows:

Figure 1: Research Result.

The purchase relationship is inclusive with the

online purchasing decision in shopee for millennials

in Medan city private university based on the results

of research that has been carried out using product

moment correlation analysis. It is known that the

correlation between inclusive purchases and shopee's

online purchase decisions in millennials in Medan

0.482 which indicates a moderate level of

correlation which is in the range of 0.40 - 0.599.

This value also shows that there is a positive

relationship between inclusive purchases and online

purchasing decisions at shopee in the millennial

generation in a private city field university because

the correlation is positive.

The determination coefficient is 0.639. This

means that the effect of inclusive purchases with

online purchasing decisions at shopee in the

millennial generation at the private university of

Medan city is 63.9% and 36.1% determined by other

factors.

This impulsive purchase can occur because

consumers experience a crisis in purchasing

planning, thinking processes and reflect when

shopping. In addition, the purchasing process

involves information seeking. Impulsive consumers

have less quality and quantity of information about

goods to be purchased (Verplanken, B, Herabadi,

A.G.Perry, J.A, Silvera, 2005). Thus in the time

needed by consumers to see products on Shopee's

online shopping site until the purchase process is

relatively short. Purchases made online are

encouraged by factors such as lifestyle shooping,

hedonic shopping motivation, and reference groups.

The appearance of goods or products presented

on the website encourages consumers to buy them

without taking into consideration the financial side

and other consequences that arise from the purchase

(Of, 2010). (Peck & Childers, 2006) describes if in a

short time consumers feel excitement, pleasure , also

satisfaction. When someone explores a website, at

that time he is exposed to various information.

Information obtained can be in the form of

advertisements that appear on the pages of sites that

are opened. Promotions and advertisements received

by someone can encourage impulsive purchases

(Mohammad Mahmoudi Maymand, 2012). In

general, promotions or advertisements in the form of

price discounts or bonuses. Likewise advertisements

on the internet. However, at the online purchase

discount prices are more attractive to consumers

(Xu, Zhang, & Xue, 2013). This price discount is

felt directly by consumers because he can easily

compare prices by exploring online shopping sites.

Therefore, when you get discounted information

from online shopping sites, cyber explorers will be

more motivated to directly make purchases.

5 CONCLUSIONS

Human nature tends to be consumptive, which

means that consumers always consume products or

services all the time. Consumptive behavior arises

besides being due to meeting diverse needs, but also

Implusive

Behavior

Rxy =

0,482

Purchasing

UNICEES 2018 - Unimed International Conference on Economics Education and Social Science

924

to follow the growing trend in the market. Therefore,

marketers must be able to understand the desires and

needs of these consumers, as well as the trends of

the millennial generation that are in effect in order to

create and develop their marketing strategies in the

era of Revolution 4.0. Every marketing strategy set

by marketers will influence consumer behavior.

The results of the analysis show that inclusive

behavior is related to online purchasing decisions at

shopee in the millennial generation in the private

university city of Medan. indicators of inclusive

behavior are lifestyle shooping, hedonic shopping

motivation, and reference groups. Shooping lifestyle

carried out by self-study university students in the

city of Medan students tend to choose to allocate

their income to get various online products and

services that are able to fulfill their desires to

improve social status in their daily lives. Motivation

of hedonic shopping that exists in students is an

impulse that gives the driving force in someone who

forces him to act to buy spontaneously the items that

are in the Shopee application. And consumers will

tend to behave exclusively with reference groups

where reference groups are two or more consumers

who shop together at the same time and the presence

of others can influence consumers' decisions to buy

more products than if consumers shop alone.

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