Hype VS Smart, Which One is Our Online Customers? Examining the

Role of Gamiﬁcation, Products Assortment, e-WOM and Lifestyle of

Indonesian E-Commerce Apps. Customers

Cooky Tri Adhikara

, Aini Farmania

, Anditya Perwiratama

, Lorensius Adinegoro

and Luthﬁ

Maulana

Management Department, BINUS Business School Undergraduate Program, Bina Nusantara University, Jakarta,

Keywords:

e-WOM, Gamiﬁcation, Lifestyle, Product Assortment, Purchase intention, Indonesia, hype, e-commerce

Abstract:

The interest of using e-Commerce in Indonesia especially among students activites has increases rapidly and

shifted, not only for online transactions but its already becomes a lifestyle. Several studies shows the important

role of Lifestyle as an intervening (moderation) variable. This study aims to determine various factors such as

gamiﬁcation, e-WOM, and product assortment affect purchase intention. The role of lifestyle as moderation

were put between gamiﬁcation and purchase intention. This study use quantitative method, the type of data

used is primary data obtained directly from the ﬁrst source and calculated using SmartPLS version 3.0 soft-

ware. The analysis Unit is active students in all strata using e-Commerce actively, with an average age between

18-35 years. The results show e-WOM has a positive and signiﬁcant inﬂuence to purchase intention. As for

gamiﬁcation and product assortment to purchase intention both have not signiﬁcant results; and lifestyle as a

moderation between gamiﬁcation and purchase intention, have negative result.

1 INTRODUCTION

It is undeniable that in this era the relationship be-

tween our lives and the use of internet has become

inseparable due to the facts that the Internet has be-

come a part of our daily life. The internet has brought

upon us many beneﬁts such as the ability to access

information freely and without being constrained by

time. As a result, society has become conditioned to

expect speed and mobility in everything. The com-

plete opposite of what Indonesian society was in the

90’s where the concept of togetherness and Gotong

royong was the main philosophy. That philosophy has

corroded with the arrival of the internet which gives

Indonesian people the capability of doing something

without someone else’s help but a smartphone, that

include buying without ever visiting a real store.

The consumer’s lifestyle is a way to reﬂect

their inner needs by engaging in certain behaviours.

Lifestyle is also part of the values that the person

has and can be seen from one’s everyday behaviour.

Consumers that have different lifestyles will surely

feel difference in value even if the product is same.

It can be said that everyone’s lifestyle is different

even if they use the same products by ﬁtting their

behaviour based on what they are doing. In inter-

net, there are six lifestyle elements effect to online

shopping behaviour attitudes, opinions, interests of

customers; E-offers, E-distrust, E-logistics, Eenjoy-

ment, E-self-efﬁcacy concern along with beliefs like

E-negative beliefs (Pandey and Chawla, 2014). In de-

veloping successful brand apps and reach the bene-

ﬁts from the customers, ﬁrstly companies should an-

alyze the smartphone user’s needs and lifestyles to

develop apps that consumers can use conveniently in

their daily lives (Lee, 2019).

Based on the research done by katadata.co.id, In-

donesian digital consumers predicted to reach 31.6

million buyers in 2018 and will increase to 43.9 mil-

lion by 2022. In Indonesai, E-Commerce sales in is

expected to reach US$8.59 billion or roughly 117.7

trillion Indonesian rupiah for year 2018. That number

was based on the data that was made by Statista and

it is expected to US$ 16.5 billion by 2022 which is

almost twofold of 2018. The total number of online

buyers in 2018 is expected to jump from 11.8% to

15.7% from the Indonesia population and its approxi-

mately from 31.6 milion online buyers in 2018 to 43,9

milion online buyer in 2022. The largest E-commerce

for retail sales in southeast Asia is based in Indonesia.

Adhikara, C., Farmania, A., Perwiratama, A., Adinegoro, L. and Maulana, L.

Hype VS Smart, Which One is Our Online Customers? Examining the Role of Gamiﬁcation, Products Assortment, e-WOM and Lifestyle of Indonesian E-Commerce Apps. Customers.

DOI: 10.5220/0009906601230129

In Proceedings of the International Conferences on Information System and Technology (CONRIST 2019), pages 123-129

ISBN: 978-989-758-453-4

123

Based on the projection by Statista digital retail sales

in Indonesia reached US$ 5.29 Billion. That num-

ber is the highest when compared to the E-commerce

sales of neighboring countries in the ASEAN region.

The closest of which is Singapore (US$ 2.13 Billion),

Malaysia (US$ 2.13 Billion), Thailand (US$ 2,89 bil-

lion) and Vietnam (US$ 1.71 Billion). All of which is

still below the numbers projected by Statista.

To ensure the accomplishments of online member-

ship communities can be a challenge. The companies

have to attract the participants to create a dynamic so-

ciety and even more challenging work is to create a

high-quality user experience that keeps your partici-

pants involve — and repeat buying (Clark, 2019). In

cyberspace, user experiences involve the senses, emo-

tions, cognition, behavior, and relationships as well as

entertainment and escape (Lee and Jin, 2019).

With the rapid development of the E-commerce

Industry, many new and unique ways of getting new

users and customers to use an application, one of them

is gamiﬁcation which is a sequence of processes that

makes an activity interesting just like what a game

does, that is with adapting several game concepts such

as points, rewards, missions, quests, etc. Gamiﬁca-

tion usually used in conjunction with other gaming

elements such as points, badges, leaderboards and

achievements, These Shopping experience elements

aimed at increasing the use of their apps; On con-

sumers’ side, in hope to receive various prizes by par-

ticipating in gamiﬁcation, they also ﬁnd it a joyable

experience.

Information technology used in products and

brands strategy in Indonesia are at signiﬁcant growth

and consumers also turn to the internet to ﬁnd recom-

mendations through comments posted on certain web,

discussion communities and social media. Comments

regarding a product bought by a consumer in the in-

ternet is one of the important points of e-Word-Of-

Mouth communication. With their intention to buy,

consumers ﬁnd comments about products they want.

Several studies on eWOM communication ﬁnd the

signiﬁcant effect on willingness of the online buyer

to spread positive impression and review in their vir-

tual community. Furthermore, the quality of the ser-

vices provided indeed affect the customer satisfaction

positively (Purnasari and Yuliando, 2015)(Yan et al.,

2016). Most consumers in the beginning feel skepti-

cal before buying a product and will not believe the in-

formation that is available in the internet. There is an

invisible circle that shows that there is a relationship

between one consumer to another consumer. With e-

WOM, it is easier for consumers to make decisions

when buying products online.

Cited from Wang, studies from Bettman, Hoyer

and Mehrabian, they conclude that before purchas-

ing the product, the consumers will do process the

information about the product from the information

processing model and stimulusorganism-reposnse (S-

O-R) model. (Wang and Chang, 2013). Purchase

intention is the attitude, forms as a response of pro-

cesses after through several action such as observa-

tion and studying towards a certain object. Both mar-

keters and academic researchers put convidence that

purchase intentions present valuable insights into the

effectiveness of marketing.

2 LITERATURE REVIEW

IT investments put focus on e-business market ori-

entation behaviors thus its enable to develop distinct

capabilities. E-commerce applications have potential

for using IT to develop the potential and contribute in

reaching the main business goals. This IT potential

occurs because e-commerce systems are more likely

to grasp and communicate the information. When the

company better deals with the market, the corporate

IS will more support activities that add value in the

customer perspectives (Borges et al., 2009).

The key propeller of “gamiﬁcation” is to incen-

tivise customers in the gamiﬁcation experience envi-

ronment to exhibit behaviours and feel emotions like

gameplay. Cited from Houtari, the term “gamiﬁca-

tion” initially used in a personal blog posted by Brett

Terrill (2008). He explains this word as “taking game

mechanics and applying them to other web proper-

ties to increase engagement”. In the next following

years in 2010, these term more common to use in the

business industry (by Deterding et al. in 2011) and in

the academic (by Hamari et al. in 2014) (Huotari and

Hamari, 2017).

Gamiﬁcation has been applied for many purpose

such as in education to create blended learning en-

vironment (Landers, 2014) (Can and Dursun, 2019),

new product creation (Leclercq et al., 2017), brand-

ing strategy (Lee, 2019) (Yang et al., 2017) and off

course loyalty program for customers (Hsu and Chen,

2018)(Hwang and Choi, 2020)(Lee and Jin, 2019)

though balancing the right level of gamiﬁcation and

usefulness is not a simple task, to identify the core

gamiﬁcation elements and signiﬁcant relationships is

of the upmost importance to investigate, implement,

and constantly reﬁne gamiﬁed systems, business and

services, that reinforce engagement, therefore achiev-

ing greater services, products, or evens user accep-

tance (Baptista and Oliveira, 2019).

In e-commerce, the customer experience is cen-

tered on ease-of-use and convenience. They can op-

CONRIST 2019 - International Conferences on Information System and Technology

124

timize conversion by adding image-based classiﬁca-

tions to extract information from pictures or make

product searches much easier. Retailers use various

assortment strategies to improve the attractiveness of

their assortments. In fact, the internet offers limitless

retail space and makes it possible for retailers to of-

fer all the product assortment to the user (customers)

in the web channel. This has been proven into a big

advantage to consumer welfare. The greater selec-

tion of products online, along with the ease to search

through products on a website, has been disclose to

push ahead the sales of niche and previously hardto-

ﬁnd products. Greater product selection is among the

top reasons for consumers to engage in ecommerce

(Ma, 2016). The key assortment factors include as-

sortment organization, option differentiation and as-

sortment of size (e.g., variety, option complemen-

tarity, option alignability, and price dispersion), the

nature of the decision task (e.g., accountability and

complexity); preference uncertainty (e.g., availabil-

ity of an ideal option), option attractiveness; whilst

the key consumer factors include expertise (e.g., at-

tribute levels and awareness of the relevant attributes),

consumer goals (e.g., purchase quantity and purchase

timing), (Chernev et al., 2012).

Information adoption is a process that is formed

because a person has a goal to use or process cer-

tain information. Information adoption is deﬁned as

a process where people purposefully engage in using

and exploring the information. In this paper, eWOM

adoption means consumers agree with the content

or information from E-WOM and consequently con-

sumers want to buy products based on information

from E-WOM they get. E-WOM is someone’s com-

ment on a product or service where the comment is

given by other consumers through the internet net-

work. E-WOM that is read or accepted by consumers

can inﬂuence consumer trust and purchasing behav-

ior. When consumers enter certain e-commerce web-

site pages, consumers know more or less about the au-

thor of EC-eWOM is. Therefore, not all EC-eWOM

has the same effect on consumer conﬁdence or pur-

chasing behavior.

Usually, consumers will decide for themselves

whether to just believe in the existing EC-eWOM or

judge by their own decision. When an online cus-

tomer decides not to trust or not depend on ECe-

WOM, they usually use alternative information op-

tions, such as social media e-WOM (Yan et al., 2016).

Previous studies conclude that a customer satisfaction

is a positive effect to customer trust and commitment

(Purnasari and Yuliando, 2015); in Spain, perceived

entertainment and subjective norms manifest them-

selves as helpful paths to gain satisﬁed m-shoppers

and deliver the positive e-WOM about m-shopping in

different age groups (San-Mart

ın et al., 2015); in Iran,

the study conﬁrms the effects of eWOM on purchase

intention (Zangeneh et al., 2014).

Explaining the idea of online brand experience,

Schmitt (2000) states that technology changes the

lifestyle. It means action and activity of each individ-

ual during brand contact conﬁrm “behavioral experi-

ence” with that particular brand (Khan et al., 2016).

The changes in consumer behavior today which im-

pacts on the internet of things and mobile communi-

cation meets the consumer needs. The need for in-

ternet and mobile communication technology exists

because of the desire of consumers to save time with

the ease and sophistication of technology. therefore,

many consumers today then use technology in every

dayto-day activities not only in the process of com-

municating or interacting long distance, but have used

it in various activities and lifestyles or commonly

known as e-lifestyle. The reasons why people need

for internet and mobile communication technology

exists is because the desire of consumers to save time

with the easy way and sophistication from technology.

Therefore, many consumers today use technology in

every day-to-day activities not only in the process of

communicating or interacting long distance, but also

to use in various activities and lifestyles or commonly

known as e-lifestyle. Chanaron (2013) argued e-

lifestyle as one of three types of lifestyle that emerged

due to innovation from technology. Therefore, e-

lifestyle is a new way of living in the modern era

with technology enlightened can be measured by us-

ing psychological and sociological variables (Pandey

and Chawla, 2014).

The popularity of online marketing on modern

customer as they has wider range of products to

choose from, further complicating the decisionmak-

ing process and changing consumer behavior (Vic-

tor et al., 2018). Establishing trust is a small part

of the ongoing management process of the relation-

ship building. Building relationships will be even

more important in an e-business world, where mul-

tiple channels and interaction points create a level of

complexity not experienced previously and ebusiness

is likely to play an important role in certain markets

and for certain types of ﬁrm (Coltman et al., 2001).

Hype factors Strategy implementation such as

lifestyle and gamiﬁcation are features consumers love

because they are fun and enjoyable; and ecommerce

ﬁnd it effective to increase application usage. On the

contrary, some says the hype factors associated with

such strategies does not withstand the test of data in

the long run.

Smart customer is a smart individual able to make

Hype VS Smart, Which One is Our Online Customers? Examining the Role of Gamiﬁcation, Products Assortment, e-WOM and Lifestyle of

Indonesian E-Commerce Apps. Customers

125

conscious decision-making processes of choices and

to play an active role in the e-commerce environment

and not a fragile individual regularly exposed to the

threat of exploitation, discrimination, control and de-

ception by tech companies (Colangelo and Maggi-

olino, 2019).

Purchase intention encourages business industry

to make a higher performance such as how customer

satisfy with the products or services. Hence, pur-

chase intention has been as deﬁned as one of the most

prominent part in the business ﬁeld. In general, cus-

tomer satisfaction is explained as how customers as-

sess the products or services once they ﬁnished uti-

lized it as much as how the customers perception the

services of products by comparing from each com-

pany in the same industry. Purchase intention is a key

element to determine whether the product meets cus-

tomers’ expectations and customer’s need.

When the products and services meet the cus-

tomers’ expectations customers will satisﬁed and will

be dissatisﬁed if the performance of production is

less than their expectations. Purchase intention also

important to promote a long-term business success

in order to help companies retaining customers and

enhance CLV (customer lifetime value) (Xiao et al.,

2019).

This study also wants to classify consumers as

Hype or Smart consumers, with gamiﬁcation and

lifestyle variables to represent Hype while e-WOM

and Product assortment represent Smart decision by

consumers.

3 RESEARCH METHOD

This research implemented in quantitative method

with descriptive associative analysis. Data collection

technique is an important part of a research to ﬁnd

results of the problems formulated. Data collection

technique used in this research is by questionnaire. In

this questionnaire there are research questions about

the inﬂuence of gamiﬁcation, e-WOM, product as-

sortment and purchase intention of e-commerce ap-

plications users.

The scale development in this study used a reﬂec-

tive approach in measurement as it is recommended

for applications of the reﬂectiveindictor model in-

clude constructs such as attitudes, perceptions and/or

purchase intentions (Anisimova, 2016). The indepen-

dent variables items were measured using a ﬁve-point

Likert type scale anchored on “1” strongly disagree

to “5” strongly agree. Likert type scales are com-

monly used in empirical studies on measurement of

e-commerce impact.

The population of this study is university students

in JABODETABEK area, or around Jakarta, Bogor,

Depok, Tangerang and Bekasi area – Indonesia. From

BPS or Indonesian Central Bureau of Statistics data,

number of university student in those area around 1,5

million. Sample gathered for this study is 400 per-

sons.

This research has 3 operational variables

1. Independet variables; The independent variables

in this research are Gamiﬁcation, E-WOM and

product assortment.

2. Dependent variables; Dependent variables are

variables that are assumed to measure or grade the

independent variables. The dependent variables in

this research is Purchase Intention.

3. Moderation variable; moderation variable are

variable that show interaction between modera-

tion variable itself and the independent variable

that inﬂuences the dependent variable. The mod-

eration variable in this research is Lifestyle.

The Theoretical Framework of this study shown in

Figure 1 below :

Figure 1: Research Model

Theoretical Framework of this research contains

several hypotheses:

H1 : Gamiﬁcation will be signiﬁcantly and

positively related to purchase intention

H2 : E-WOM will be signiﬁcantly and positively

related to purchase intention

H3 : Product assortment will be signiﬁcantly and

positively related to purchase intention

H4 : Lifestyle moderates the relationship between

gamiﬁcation and purchase intention.

Hypothesis trial formulation In partial least

square, the hypothesis test will be done by looking

at the t-value and T-statistics results where the testing

requirements in partial least square is as follows:

1. If T-Statistics < t-value, then Ho is accepted, Ha

is rejected

2. If T-Statistics > t-value, then Ho is rejected, Ha

accepted

CONRIST 2019 - International Conferences on Information System and Technology

126

Therefore, based on these requirements, these are

the hypothesis that were made:

Hypothesis 1

Ho: there is no signiﬁcant inﬂuence between Gamiﬁ-

cation towards Purchase Intention.

Ha: there is signiﬁcant inﬂuence between Gamiﬁca-

tion towards Purchase Intention.

Hypothesis 2

Ho: there is no signiﬁcant inﬂuence between eWOM

towards Purchase Intention.

Ha: there is signiﬁcant inﬂuence between eWOM

towards Purchase Intention Hypothesis 3

Ho: there is no signiﬁcant inﬂuence between product

assortment towards Purchase Intention.

Ha: there is signiﬁcant inﬂuence between product

assortment towards Purchase Intention.

Hypothesis 4

Ho: e-WOM does not moderate Lifestyle towards

Purchase Intention.

Ha: e-WOM moderates Lifestyle towards Purchase

Intention.

4 RESULTS

Signiﬁcance tests that were conducted to ﬁnd out the

inﬂuence between variables in the research is done by

resampling with bootstrapping. Bootstrapping is done

using the software SmartPLS 3.0.

Results of the signiﬁcance test of each variable to

test the hypothesis can be explained as:

1. Hypothesis1: inﬂuence of Gamiﬁcation towards

Purchase Intention.

(a) Hypothesis

Ho: there is no signiﬁcant inﬂuence between

Gamiﬁcation towards Purchase Intention.

Ha: there is signiﬁcant inﬂuence between Gam-

iﬁcation towards Purchase Intention.

(b) Basis for decision making

T-statistic test

if T-statistic > 2.58, then Ho is rejected and Ha

is accepted.

If T-statistic < 2.58, then Ho is accepted and

Ha is rejected.

Uji T-statistic

0.109 > 2.58, then Ho is rejected dan Ha is ac-

cepted.

(d) Summary

There is no positive and signiﬁcant inﬂuence

between Gamiﬁcation and Purchase Intention

in Ecommerce application users

2. Hypothesis2: the inﬂuence of e-WOM towards

Purchase Intention.

(a) Hypothesis

Ho: there is no signiﬁcant inﬂuence between

eWOM towards Purchase Intention.

Ha: there is signiﬁcant inﬂuence between

eWOM towards Purchase Intention

(b) Basis for Decision making

T-statistic test

If T-statistic > 2.58, then Ho is rejected and Ha

is accepted.

If T-statistic < 2.58, then Ho is accepted and

Ha is rejected.

Uji T-statistic

3.711 > 2.58, then Ho is rejected and Ha is ac-

cepted.

(d) summary There is positive and signiﬁcant inﬂu-

ence between e-WOM and Purchase Intention

in Ecommerce application users

3. Hypothesis3: Inﬂuence of product assortment to-

wards purchase intention.

(a) Hypothesis

Ho: there is no signiﬁcant inﬂuence between

product assortment towards Purchase Intention.

Ha: there is signiﬁcant inﬂuence between prod-

uct assortment towards Purchase Intention.

(b) Basis for Decision making

T-statistic test

If T-statistic > 2.58, then Ho is rejected and Ha

is accepted.

If T-statistic < 2.58, then Ho is accepted and

Ha is rejected.

T-statistic test

2.194 > 2.58, then Ho is rejected and Ha is ac-

cepted.

(d) Summary There is no positive and signiﬁ-

cant inﬂuence between product assortment and

Purchase Intention in E-commerce application

users

4. Hypothesis4: Lifestyle moderates the inﬂuence

between Gamiﬁcation towards Purchase Inten-

tion.

(a) Hypothesis

Ho: There is no signiﬁcant inﬂuence between

lifestyle that moderates the relationship of gam-

iﬁcation towards purchase intention.

Ha: There is signiﬁcant inﬂuence between

lifestyle that moderates the relationship of gam-

iﬁcation towards purchase intention.

Hype VS Smart, Which One is Our Online Customers? Examining the Role of Gamiﬁcation, Products Assortment, e-WOM and Lifestyle of

Indonesian E-Commerce Apps. Customers

127

(b) Basis for Decision making

T-statistic test

If T-statistic > 2.58, then Ho is rejected and Ha

is accepted.

If T-statistic < 2.58, then Ho is accepted and

Ha is rejected.

T-statistic test

1.084 > 2.58, then Ho is accepted and Ha is

rejected.

(d) Conclusion Lifestyle has no positive and sig-

niﬁcance in moderating Gamiﬁcation towards

Purchase Intention in E-commerce application

users.

The summary of the results of the hypothesis in

this research can be seen in Table 1 below:

Table 1: Indirect Effect Output results

Relations Summary

Gamiﬁcation

(X)→ Purchase

Intention (Y)

There is no positive and

signiﬁcant inﬂuence be-

tween Gamiﬁcation and

Purchase Intention in

E-commerce application

users

e-WOM (X)→

Purchase Inten-

tion(Z)

There is positive and

signiﬁcant inﬂuence

between e-WOM and

Purchase Intention in

E-commerce application

users

Product assort-

ment (Y)→

Purchase Decison

(Z)

There is no positive

and signiﬁcant inﬂu-

ence between product

assortment and Purchase

Intention in E-commerce

application users

Lifestyle *

Gamiﬁcation

(moderation)→

Purchase Inten-

tion(Y)

There is no positive

and signiﬁcant inﬂu-

ence between product

assortment and Purchase

Intention in E-commerce

application

5 CONCLUSIONS

Based on the results of the research that has been con-

ducted, it can be summarized that:

1. based on the analysis results, the ﬁrst hypothesis

shows that there is no positive inﬂuence and sig-

niﬁcance between gamiﬁcation and purchase in-

tention in E-commerce application users.

2. based on the analysis results, the second hypoth-

esis shows that there is a positive inﬂuence and

signiﬁcance between E-WOM and purchase in-

tention in E-commerce application users.

3. based on the analysis results, the third hypothe-

sis shows that there is no positive inﬂuence and

signiﬁcance between product assortment and pur-

chase intention in E-commerce application users.

4. based on the analysis results, the fourth hypoth-

esis shows that lifestyle has no positive inﬂuence

and signiﬁcance in the moderation of gamiﬁcation

towards purchase intention in eCommerce appli-

cation users.

Based on the results of the research, there are sev-

eral ideas for further research as follows; ﬁrst; it is

recommended to take a bigger sample in order to get

results that can represent each population that resides

in Indonesia especially those of productive age; sec-

ond; e-Commerce application developers are more fo-

cus on product reviews therefore user are easiser to

do online purchasing; third, e-Commerce develop-

ers more maximizing gamiﬁcation features therefore

users obtain optimal beneﬁts from the gamiﬁcation.

and users able to recognize the effect of availability

product.

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